US Cellular (USM), the wireless subsidiary of Telephone and Data Systems (TDS), is poised to market Research In Motion’s (RIMM) latest CDMA smartphone BlackBerry Tour 9630. The company has already revealed detailed specification of the device on its product page and has also released the new operating system verision (BlackBerry Tour 9630 OS 4.7.1.57) on its website.

Although an official confirmation is yet to come from US Cellular, a potential launch of BlackBerry Tour will enable it to join the league of Tier-1 US carriers in offering top-notch smartphones. BlackBerry Tour is currently available in the US on Verizon (VZ) and Sprint Nextel’s (S) networks. Leading US carriers are currently selling high-end smartphones through long-term distribution arrangements with manufacturers, which has boosted wireless subscriber growth and revenue per user.

However, smaller regional operators (such as US Cellular) lags behind their superior counterparts given the inability to sell these high-end devices, which is negatively affecting their bottom-line and margins. US Cellular has been hit by a weak economy and intense competition as it lost 88,000 customers during the last quarter.

The company is facing downward pressure on ARPU (average revenue per user) which is expected to sustain at least through the second half of 2009. US Cellular is being challenged by the increasingly competitive domestic wireless market, reflected by increasing post-paid churn (customer switch).

Competition has increased due to the roll out of exclusive premium wireless handsets by top-tier operators such as iPhone 3GS by AT&T (T). Based on uncertain economic conditions, US Cellular has withdrawn its net subscriber addition target for 2009. High-end premium smartphones have greater contribution to ARPU than entry-level smartphones and other regular handsets.

Driven by strong demand of smartphones and associated data services, US Cellular is expanding the nationwide deployment of its 3G EV-DO networking. If eventually launched, BlackBerry Tour will considerably strenghen the company’s smartphone offerings while providing an opportunity to boost ARPU. However, the high customer return rate (as experienced by Sprint) associated with the device due to a technical defect remain an issue for consideration.

Zacks Investment Research
View original at: Zacks.com News Feed

1. (VZ) Verizon Wireless and Google Complete Android PactVerizon (VZ) reportedly partnered with search engine giant Google Inc. (GOOG) to develop and market...
2. (MOT) Motorola Moves Into High-End Mobile Device MarketStruggling mobile phone developer Motorola Inc (MOT) unveiled yesterday its first high-end 3G smart-phone named...
3. (VZ) Verizon Slashes BlackBerry PriceVerizon (VZ) further lowered the price of BlackBerry Storm 9530 touchscreen smartphone to just $49.99...
4. (RIMM) RIMM to Launch Blackberry Storm2 into Smartphone MarketResearch In Motion (RIMM) is likely to introduce its BlackBerry Storm2 in September. Yesterday, Verizon...
5. (T) Federal Communications Commission To Probe Wireless PracticesThe Federal Communications Commission (FCC) will hold a meeting on Aug 27 to assess business...
6. (USM) US Cellular Expands 3G CoverageU.S. Cellular (USM), the wireless subsidiary of Telephone and Data Systems (TDS), has reportedly expanded...

Search Posts by Tag: AT&T Inc. | Research In Motion Limited | RIMM | S | Sprint Nextel Corporation | T | TDS | Telephone & Data Systems Inc. | United States Cellular Corporation | USM | Verizon Communications Inc. | VZ | Technology | Wireless Communications

RSS Feeds by Tag: AT&T Inc. | Research In Motion Limited | RIMM | S | Sprint Nextel Corporation | T | TDS | Telephone & Data Systems Inc. | United States Cellular Corporation | USM | Verizon Communications Inc. | VZ | Technology | Wireless Communications |

Other Posts by: vitalstocks | RSS Feed for this author