U.S. Cellular’s Core Mobile Phone Business Is Too Small to Effectively Compete with Huge Competitors

U.S. Cellular faces challenges that are a byproduct of its small regional scale in an industry that has come to be dominated by gigantic national wireless carriers. We think its core wireless business will continue to be challenged as a result. However, we’re optimistic about some of the other levers the firm is looking to pull in its operations, and U.S. Cellular holds assets that we think have significant value, including its portfolio of over 4,000 towers and a 5.5% stake in Verizon’s Los Angeles wireless business.