U.S. Cellular: iPhone Isn't On The 'Cutting Edge' Right Now, Technologically

It was only a month ago that mobile carrier U.S. Cellular made headlines by calling Apple's terms for selling the iPhone "unacceptable from a risk and profitability standpoint."

Now U.S. Cellular is back in the news with a different, more pointed explanation for why they don't carry the iPhone: It's not technologically advanced enough.

Here's Ted Carlson, CEO of U.S. Wireless' parent company TDS, speaking at the UBS Global Media and Communications Conference, about why his company does not sell Apple's iPhone (as reported by Phil Goldstein at Fierce Wireless):

We’re never going to say never about the iPhone. The iPhone for us would need to be at the cutting edge of where we’re going, and then there might be an opportunity to consider it.

Carlson and U.S. Cellular feel that the iPhone 4S is not "cutting edge" because it lacks capability for 4G LTE, a faster network that U.S. Cellular is investing heavily in for the future. Many expected the next-gen iPhone to add 4G in the run-up to Apple's announcement, though obviously that never happened. In February 2011 then-Apple COO Tim Cook explained that "LTE would force design compromises we're not willing to make"; that commitment to design apparently held true and cost Apple a customer in U.S. Cellular, the sixth-largest mobile carrier in the United States, serving a hair under 6 million people.

The story of carriers negotiating for the iPhone has come with strange twists, billion dollar gambles and noted disappointment. Sprint supposedly "bet the company" on the Apple device, per a Wall Street Journal story, spending a reported $20 billion for the rights to sell iPhones; eyebrows were raised in late October when tiny regional carrier C-Spire announced that it would become the fourth firm to offer the iPhone. T-Mobile, which is the fourth-largest carrier in the U.S., meanwhile, has had fruitless negotiations with Apple about obtaining the iPhone for themselves; during a conference call this November, a T-Mobile exec warned investors to expect losses due to the company's non-acquisition of the iPhone. T-Mobile is also apparently awaiting an iPhone more compatible with its network.

Like T-Mo, U.S. Cellular has not ruled out carrying future iPhones, either, as long as they have 4G; for what it's worth, the next iPhone is already rumored to be a 4G LTE device. Never say never, indeed.

Comments

[hyperlexis]

12:04 AM on 12/09/2011

OMG I have US Cellular and this claim is insane! US Cellular doesn't even offer LTE or even HSPA 4G except in three test sites in rural areas!!!!!!! I am still using my same stupid ancient Windows Mobile phone because I have refused to waste an upgrade on another 3G phone from US Cellular. They are supposed to eventually launch LTE in 2012 and I can wait, but its preposterous to claim that the iPhone is not good enough when all phones US Cellular currently sells are 3G phones! US Cellular has very good reception but their handsets have always been behind the curve, and their plans are no longer a good value since they raised up all their package prices. They really do need the iPhone and this failure was a real boneheaded move. Apparently the only CYA they can come up with is that the iPhone simply isnt good enough ...for their 3G network....

[Steve Davlantis]

07:51 PM on 12/10/2011

From my other post a couple lines down..

"Why would they want to invest BILLIONS into a device that will only work on the network that they're replacing? They're turning up their first LTE markets in the next 2 months with the rest following thereafter­."

So no.. The iPhone isn't good enough.

[TYRANNASAURUS]

10:42 AM on 12/08/2011

Wireless Network Slams iPhone....

That photo shows one huge drawback to the iphone..... the glass back breaks easily and is very expensive to replace.....several of my friends found that out the hard over $200 way.

[AEX7]

02:36 PM on 12/07/2011

go to their site and look at their current offerings. apparently flip phones are still considered cutting edge to this third rate company.

[Steve Davlantis]

11:33 AM on 12/08/2011

Which brand new flip phone did US Cellular just pay over $1 billion to get?
Or rather.. What you REALLY meant to say was.. US Cellular still has a supply of older, lower priced phones along with other phones to sell to customers (the 9 in 10) who don't want the iPhone.

[Rick Lyon]

12:33 PM on 12/07/2011

Genius. The CEO just guaranteed that they will NEVER carry the iPhone now, even after it gets 4G.

[newcastlebill]

11:55 AM on 12/07/2011

I had US Cellular when I lived in Maine, had to chose between Verizon and ATT (& others) when I moved to Colorado.
Wish I could have kept US Cellular! Better plans, better service.

[Steve Davlantis]

11:29 AM on 12/07/2011

All the doom and gloom predictions. All the hate.
You do realize that US Cellular, that failure and nothing of a company, has just captured it's second Consumers report best of award beating all of the large carriers right? You do know they've got 12 consecutive JD Power awards for network and customer service right? You do know that US Cellular dominates pretty much any survey or testing that they're included in right?

granted. They're regional. But if you check their financials not only are they consistently profitable but they're increasing that margin of profit every year. They have some of the lowest rates of Churn/Turnover in the industry. And they're sitting on about a billion in cash and carry very little debt.

Why would they want to invest BILLIONS into a device that will only work on the network that they're replacing? They're turning up their first LTE markets in the next 2 months with the rest following thereafter.

And you do realize there are other phones besides the iPhone out there right? You do realize that the iPhone only has 15% of the market, down from 16% the year before, down from 17% the year before that. Apple is gaining carriers and losing market share. So again.. why invest Billions into a phone that you'll only sell to 1 in 10 customers on a good day? And one that isn't compatible with the new network you've just spend billions more building out?

[Proletarian101]

10:40 AM on 12/07/2011

Apple may be waiting to invest in the LTE Advance or a true 4G network. In the US, that is not likely for a couple of years.

[menschmaschine5]

11:45 AM on 12/07/2011

No, Apple is more likely waiting for more energy efficient LTE radios and for LTE to become more ubiquitous. Apple does not like adopting new technologies too soon (see the lack of a 3G radio in the original iPhone, even though 3G technology certainly existed). I really doubt they're holding out for LTE Advanced, as that technology doesn't actually exist yet, and will take more than a few years to see use (carriers, especially in America, probably want to milk LTE, which still has limited availability, all they can first - Verizon still has a small LTE market, AT&T's is just starting, and Sprint is still waffling about switching from WiMax to LTE).

Also, while LTE doesn't meet the original 4G standard, the standard was lowered so that carriers could advertise LTE, WiMax, and HSPA+ as 4G.

[Jimmy Boy]

09:23 AM on 12/07/2011

I will say Apple needs to come out with a 4G LTE iPhone. Its really insane that other carriers have hada 4G LTE Smartphone for 9 months. I finally gave up waiting on an iPhone and went with a HTC 4G model. The data speeds on 4G vs 3G are sooooo much better.

I love Apple. But I think they are becoming slow as a snail. Other competitors are jumping all over their technology and taking market share away.

[Brian Hudson]

07:11 AM on 12/07/2011

This coming from US Cellular, a top company on the cutting edge of communications technology. Oh, wait ... I mean, a minor carrier in the US who' hasn't actually gotten around to rolling out their LTE network.

"We don't want a phone that won't work with LTE ... the LTE network that our customers don't have yet."

Lulz. Maybe by the time they actually, you know, HAVE LTE, the iPhone will, too.

[phillyguerrilla]

05:56 AM on 12/07/2011

And the fanboy pandemonium begins LMAO!!!

[robco]

02:24 AM on 12/07/2011

The lack of LTE is about the only thing the iPhone 4S is missing. It's got a great display, dual-core processor, captures 1080P video, has videoconferencing, cloud services, great graphics. The only LTE chipsets readily available were designed for MiFis, not smartphones. They're larger, suck more power and aren't integrated with other technologies. That's why the current LTE handsets are huge and get lackluster battery life. Newer, low-power chipsets are on the horizon and that is when Apple will implement LTE. If you're on AT&T, you can get what they've been marketing as 4G (HSPA+) with the new iPhone. Sprint and VZW customers (myself included) are SOL. Still, I find 3G adequate for my needs. The smaller, lighter device with all the other features mentioned are more important to me than just fast data speeds.

Oh, and there aren't any BlackBerry or Windows Phone handsets that support LTE either...

[Jovanvaldeze]

12:27 AM on 12/07/2011

I suggest you better go purchase a samsung galaxy s2 than iPhone 4s .

http://www.socialcubix.com

[JohnTheMac]

11:43 PM on 12/06/2011

I live in New Jersey.
They don't even offer service in "my area".
Check out your area!
http://www.uscellular.com/uscellular/zipCode.jsp?type=plans&plan-selector-type=family

This is sort of a joke of a company?

[ttopaster]

04:40 AM on 12/07/2011

yes, yes it is a joke company.

[dukeofurl01]

11:07 PM on 12/06/2011

>Now U.S. Cellular is back in the news with a different, more pointed explanation for why they don't carry the iPhone: It's not technologically advanced enough.

Dear USCC, do you have something better that we don't know about?

[pammiethekid]

09:48 PM on 12/06/2011

Dang. I drop my iPhone every couple days and still don't manage to damage it. Maybe I should drop it from greater heights.