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Sep. 13, 2009

U.S. Cellular said late Friday that it has applied for federal stimulus funds to help finance 3G mobile broadband in parts of northern California, Nebraska, Missouri and Kansas.

The federal funds would be used to close the digital loop in rural and underserved communities using the wireless carrier's 3G network.

Overall, U.S. Cellular is requesting $2.95 million for California, $5.58 million for Nebraska, $11.2 million for Missouri and $3.7 million for Kansas.

John Rooney, CEO of U.S. Cellular said "if provided with funding, we stand ready with shovels in-hand and are prepared to complete these mobile broadband projects within one year. It's an aggressive plan that will provide jobs, help stimulate economic growth and enhance public safety for rural and underserved Americans."

The American Recovery and Reinvestment Act of 2009 (ARRA) has set aside $7.2 billion to promote access to broadband Internet services in rural and underserved communities, areas where U.S. Cellular has historically focused its development of wireless networks.

U.S. Cellular, a vocal opponent of exclusive handset deals on the part of larger mobile carriers, has been struggling to better compete amid a weak economy and increased competition from lower-priced prepaid providers.

In Q2, U.S. Cellular reported a 31 percent growth in data revenues. However, its service revenues declined one percent from the year prior due to a reduction in inbound roaming revenues related mostly to the acquisition of Alltel by Verizon Wireless.

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Source: U.S. Cellular.