US Cellular Relies on Home Phone Markets?

Jeremiah is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.

US Cellular (NYSE: USM) seems to be angling for a successful service portfolio in the domestic market, with a series of innovative products and services in the recent past. In less than a month, the Board of Directors of United States Cellular Corporation made a remarkable dividend declaration. This would leave its shareholders with a $5.75 per common share for all shareholders registered as per June 11, 2013. This might have come off as a bonus for shareholders after the company disposed of some of its market assets including those in Central Illinois, Chicago, St. Louis, and three others to Sprint Nextel (NYSE: S) for over $480 million.

Special dividend effect

The sale must have been the company’s board resolve to render more power to its shareholders. According to US Cellular President and CEO, Mary Dillon, the dividend declaration was a clear indication of the current balance sheet strength and liquidity in the wake of the divestiture deal. The company has further promised to adjust a number of tactical initiatives that will see its performance stabilize in the long-term. In the wake of these projections, the company has been undertaking a noble exercise that is targeting the domestic market with several product and services. This will be a benchmark for success, as the board plans to stifle competition in the mobile phone sector of the US.

Recent products and services

Among the projects that the company is using to mark out its presence in the market is the launch of the ambitious Home Phone Solution. This is a service program that will be offering a $19.99 monthly package for unlimited calls in all states across the country. The US Cellular Home Phone service went on offer in outlets, although it will be rolling online starting June 20. The future for US Cellular clients is set to benefit from a number of offers on the package, which will be using ordinary corded or cordless handsets. The offer includes Call Forwarding, Caller ID, Voicemail, Call Waiting, and Three-way Calling through the home phone, which comes with a two-year contract.

Affordable and hassle free service

This is being seen as one way the company is consolidating its future prospects in a sector faced with stiff competition from other players. It will be possible for US Cellular Home Phone subscribers to retain their existing home phones and numbers and still get to enjoy first rate services for voice call services, which are on offer at an affordable rate. This will be linked up to the wireless bill. The firm is making the foray into home based products as a way of giving clients reliable and affordable home phone package. At the same time, US Cellular is hoping to capture a wider customer base to consolidate their product and performance portfolio. The set-up package has been positively reviewed and endorsed, given its quality on cost compared to other players such as CenturyLink, Verizon (NYSE: VZ) and AT&T (NYSE: T).

Other innovative home products

This is not the only offer that has aligned US Cellular to the domestic market. The firm has also rolled out a mobile application, set to help families control phone usage by children. The Family Protector Mobile App is being billed as a pioneering product that will push the company as a first mover in phone use monitoring. The recent survey carried out by the company indicated that most parents are always looking for a reliable product that will help them monitor the type of content that kids are able to access through cell phones. This was one of the findings that made the board venture out to find a lasting solution for content access for young ones.

Will it be enough?

According to statistics from consumer research findings, US Cellular is not alone in this docket. There has been a high demand for home telecom packages that come in a “triple play” deal. This is the basic blend of TV, Internet, and phone services all rolled into one. The discount offers made on such triple-set services, which are already on Verizon, and AT&T service portfolios as a one-off service pack a monthly fee of $20. The stage now seems set for a supremacy tussle over Verizon Wireless Home Phone Connect package, Sprint Nextel’s Sprint Phone Connect 2, and the latest entry from US Cellular.

A brighter future

The future of US Cellular in providing such tools and applications is set to widen its horizons, as more parents resort to the Family Protector app's Time Restrictions function to manage device usage, along with other products and services that provide alternatives to what have been considered existing stale and expensive choices. This domestic venture will help United States Cellular Corporation secure a strong financial future, as more clients benefit from its portfolio policy to provide client satisfaction through provision of top notch products and services supported by its premium network. 

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Jeremiah Feliciano has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!

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