Telephone and Data Systems, Inc.
U.S. Cellular
Driving Profitable Growth:
 
  By Strengthening Our Footprint
  With Popular Data Services Offering
Offering a wide array of data services, U.S. Cellular’s easyedge(SM) suite is popular and growing rapidly.

Data services are another driver of growth for U.S. Cellular. easyedge, the company’s suite of data services, launched late in 2003 with the introduction of easyedge Phone Download Service. It’s been growing exponentially since then. In addition to easyedge Phone Download Service, the data services line also offers Picture Messaging and, in select markets, Wireless Modem service.

easyedge Phone Download Service offers customers more than 250 downloadable applications, ranging from ringtones to games and real-time updates on news, weather, sports and traffic information. And with the launch of nWeb wireless Internet access in November 2004, easyedge customers can surf the Web from their handsets as well. nWeb also has a feature unique to U.S. Cellular — password protection, which allows parents to control web site access.

easyedge Picture Messaging, introduced early in 2004, is also proving popular. This mobile messaging service allows customers to send photos or images to other cell phones or e-mail addresses.

And easyedge is now available in all of U.S. Cellular’s markets, thanks to the completion of the CDMA 1X network upgrade that supports these popular data service offerings. Increased availability, enhanced features and services, and a growing trend for consumers to use and value these services in general all point to continued growth for U.S. Cellular in the data services arena.

The easyedge services complement Mobile Messaging, U.S. Cellular’s popular text messaging service. And the data services are growing rapidly. In 2004, revenues for U.S. Cellular's data services increased three-fold, with data services representing $1.19 of the average retail service revenue per customer per month, for a total of $67 million, or 2.5 percent of total service revenues.

U.S. Cellular continues to enhance its easyedge offerings. Initiatives for 2005 include plans to introduce AOL Instant Messaging, a feature expected to be in great demand by the important youth segment. In addition, the company is working to enable “data roaming” so easyedge customers can access the data services while traveling outside of U.S. Cellular’s service areas. U.S. Cellular is also working to enable video messaging through its Picture Messaging service. These enhancements work to make easyedge a tremendously robust suite of data services.

U.S. Cellular continues to enhance its other service offerings as well. The company plans to launch a “push-to-talk” service later in 2005. This service features the ability for customers to immediately connect with designated parties in a “walkie-talkie” fashion. Many of U.S. Cellular's business customers have indicated they would value this instant communication, and the company is pursuing the push-to-talk service for retail consumers as well.

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      Telephone and Data Systems, Inc. 30 N. LaSalle Street Suite 4000 Chicago, IL 60602 Tel: 312.630.1900 Fax: 312.630.1908 www.teldta.com