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## U.S. Cellular 

U.S. Cellular has been a proud member of the TDS family since 1983. From the time we gained our first cellular customer in Knoxville, Tennessee, in June 1985, right up to today, we have enjoyed tremendous support from our parent company. For our part, we have turned the TDS vision of wireless telecommunications from a dream into the reality of a nearly two-billion-dollar business. As an integral part of TDS, U.S. Cellular will continue to be a leader in the growing wireless industry, as the following achievements indicate. 

Our continued focus on the customer led to a new vision which defines customer satisfaction as the product for which we will be known in the wireless marketplace. 

## Serving Our Customers Over the Decades 

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Our Mission: To provide the highest level of customer satisfaction, which will generate profitable growth for our shareholders and superior rewards for our associates. We will achieve this through a Dynamic Organization based on standards of excellence. 

U.S. Cellular will achieve its vision and mission through continued profitable growth, attained by focusing on four strategic priorities. 

Our Strategy: Increase customer satisfaction, grow revenues profitability, drive standards of excellence and drive the Dynamic Organization. 

The Dynamic Organization continues to be a catalyst for change. A 2001 culture survey of U.S. Cellular associates showed an important shift in associate perceptions— a statistically significant increase in the number of associates who believe that “serving customers is my first priority.” It is these associates who make the difference at U.S. Cellular and I would like to thank each of them. Within this report I recognize three individuals who have always put the customer first. Thank you, Lorrie Klawonn, Dana Dorcas and Veronica Ornes. We appreciate your dedication and thank you for delivering what our customers expect. You are part of a winning team and by recognizing you I recognize the entire team of associates at U.S. Cellular. 

## 2001 in Review 

U.S. Cellular’s accomplishments in 2001 were many and varied. By executing our new vision, mission and business strategy to refocus on our customers, we achieved outstanding results during the year. Some of the highlights include: 

• We continued our dedication to outstanding customer service, and received recognition in a number of publications both nationally and throughout our service areas as the “best wireless provider.” 

• With the principles of the Dynamic Organization management philosophy as a basis, our top leaders attended training sessions to develop the new leadership style required to execute our strategy and achieve our mission. 

• We continued to lead the industry in low churn, achieving a 1.7% churn rate on our postpay customer base. 

• We invested nearly $490 million on improvements to our wireless network. 

• Minutes of use on our wireless systems increased 45% in 2001, indicating a strong demand for wireless services in our markets. 

• We reorganized all of our distribution channels, and introduced a new “high-tech, high-touch” look to our retail stores. 

## Dynamic Organization – A New Mission, Vision and Strategy 

In keeping with U.S. Cellular’s renewed customer focus, we developed a new vision, mission statement and business strategy during 2001. Our new vision defines customer satisfaction as the product for which U.S. Cellular will be known in the wireless marketplace. 

Our Vision: We will proudly provide the best customer satisfaction. Customers “Expect it!” We deliver. 

The new mission reflects our commitment to three equally important stakeholders—customers, shareholders and associates. 

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Lorrie’s greatest accomplishment, in her 12 years with U.S. Cellular, is reprogramming 90% of her customers’ phones in just three days following U.S. Cellular’s change from B band license to A band. Lorrie currently is the manager of a U.S. Cellular retail store in Ottumwa, Iowa. 

Lorrie’s dedication to customer service and inspirational leadership make her an invaluable associate. She heads a great team of associates who are excited to work at U.S. Cellular. “It’s fun working with new associates and telling them how the cellular industry has evolved from the days when we had to drive uphill three miles to get a signal on our bag phones.” 

