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<SEC-DOCUMENT>0000821130-09-000005.txt : 20091102
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ACCESSION NUMBER:		0000821130-09-000005
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090623

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			UNITED STATES CELLULAR CORP
		CENTRAL INDEX KEY:			0000821130
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO TELEPHONE COMMUNICATIONS [4812]
		IRS NUMBER:				621147325
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		8410 W BRYN MAWR AVE
		STREET 2:		STE 700
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60631
		BUSINESS PHONE:		7733998900

	MAIL ADDRESS:	
		STREET 1:		8410 W BRYN MAWR AVE
		STREET 2:		STE 700
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60631
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<TYPE>CORRESP
<SEQUENCE>1
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<P align=center><B><FONT face="Times New Roman"><FONT style="FONT-SIZE: 12pt">United States Cellular Corporation </FONT><BR>
<FONT style="FONT-SIZE: 12pt">8410 West Bryn Mawr Avenue </FONT><BR>
<FONT style="FONT-SIZE: 12pt">Chicago, IL 60631 </FONT><BR>
<FONT style="FONT-SIZE: 12pt">773-399-8900 </FONT><BR>
<FONT style="FONT-SIZE: 12pt">Fax: 773-399-8936</FONT></FONT></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">VIA EDGAR</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">June 23, 2009</FONT></P>
<P align=left><FONT face="Times New Roman" size=2><FONT style="FONT-SIZE: 12pt">Mr. Larry Spirgel </FONT><BR>
<FONT style="FONT-SIZE: 12pt">Assistant Director</FONT><BR>
</FONT><FONT face="Times New Roman" size=2><FONT style="FONT-SIZE: 12pt">Securities and Exchange Commission </FONT><BR>
<FONT style="FONT-SIZE: 12pt">100 F. Street, N.E.</FONT><BR>
</FONT><FONT face="Times New Roman" size=2><FONT style="FONT-SIZE: 12pt">Mail Stop 3720 </FONT><BR>
<FONT style="FONT-SIZE: 12pt">Washington, D.C. 20549</FONT></FONT></P>
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<P style="MARGIN-LEFT: 20px"><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">United States Cellular Corporation<BR>
</FONT></B><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Form 10-K for the Fiscal Year ended December 31, 2008<BR>
</FONT></B><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Filed February 26, 2009<BR>
</FONT></B><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">File No. 1-09712</FONT></B></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Dear Mr. Spirgel:</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">This letter responds to your letter dated May 27, 2009 to Steven T. Campbell, Executive Vice President-Finance and Chief Financial Officer, of United States Cellular Corporation (&#147;U.S. Cellular&#148; or &#147;Company&#148;), regarding the Securities and Exchange Commission (&#147;SEC&#148; or &#147;Commission&#148;) Staff&#146;s comments on the above-referenced filing. The Staff&#146;s comments are repeated below and are marked by number to correspond to the comment letter. References to page numbers below are those in the above-referenced document as filed.</FONT></P>
<P align=left><U><FONT face="Times New Roman" size=2><FONT style="FONT-SIZE: 12pt">Form 10-K for the Fiscal Year Ended December 31, 2008</FONT><BR>
<FONT style="FONT-SIZE: 12pt">Exhibit 13</FONT></FONT></U></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</FONT></U></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 1:</FONT></U></B></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Overview</FONT></U></P>
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     <TD vAlign=top align=left width="2%" rowSpan=10><FONT style="FONT-SIZE: 12pt" face="Times New Roman">1.</FONT></TD>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We note that, due to the reasons described in the overview section of the MD&amp;A on page 1, </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">you took a significant FCC licenses impairment charge in the fourth quarter of fiscal year </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2008. You should expand your MD&amp;A to discuss your expectations regarding your future </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">operating results and liquidity as a result of taking an impairment charge. You should clearly </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">explain to your investors, if true, that you expect that historical operating results will not be </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">indicative of future operating results. You should also discuss the primary drivers in your </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">assumptions that resul
ted in the FCC licenses impairment charge. For instance, why did </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">you reduce projected future revenues or net cash flows and increase the discount rates? In </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">addition, discuss whether and when you considered a recovery of the economy in your cash </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">flow projections.</FONT></P>
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<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">1</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 1:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We will expand our MD&amp;A disclosure in future filings, including the Overview to the extent appropriate, regarding the licenses impairment charge recorded in the fourth quarter of 2008. Specifically, we will explain that the 2008 impairment charge is not expected to have an impact on future operating results and liquidity. In addition, we will indicate that historical operating results, including the 2008 impairment charge, are not necessarily indicative of future operating results.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Please note that on page 9 of Exhibit 13 to our December 31, 2008 Form 10-K, where we discuss the &#147;Loss on impairment of intangible assets&#148; in more detail, we make the following statement as to the primary drivers of changes in our assumptions: &#147;The loss in 2008 is attributable to further deterioration in the credit and financial markets and the accelerated decline in the overall economy in the fourth quarter of 2008, which has led to the use of a higher discount rate when projecting future cash flows and lower than previously projected earnings in the wireless industry.&#148; We will further expand on these primary drivers in our future filings. Specifically, we will disclose that the use of a higher discount rate was driven by the greater uncertainty caused by the deterioration in the credit and financial markets. This uncertainty caused us to add a risk premium of 100 basis points to the cost of equity component of the weigh
ted average cost of capital, and also resulted in a significant increase to the after-tax cost of debt component of the weighted average cost of capital. Overall, these changes resulted in an increase of 100 basis points to the discount rate used for the December 2008 valuation when compared to the discount rate used for the April 2008 valuation. We also will disclose that our assumptions for projected earnings in the wireless industry were reduced based on current industry and company-specific projections which we believe decreased because of the economic environment in the fourth quarter of 2008 compared to the second quarter of 2008. Finally, we did not explicitly incorporate a recovery of the economy in our cash flow projections. However, a terminal value growth rate of 2.0% was used in both our April 2008 and December 2008 impairment assessments. Therefore, our projections contemplate a sustained level of growth on a long-term basis and, accordingly, such projections implicitly contemplate that the curr
ent economic downturn will not be permanent. We will so state in our future disclosures.</FONT></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 2:</FONT></U></B></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Liquidity and Capital Resources, page 15</FONT></U></P>
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     <TD vAlign=top align=left width="2%" rowSpan=10><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.</FONT></TD>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Please disclose here or elsewhere in the filing the specific terms of any material debt </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">covenants in your debt agreements. The requirements that the company complies with </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">certain negative and affirmative covenants and maintains certain financial ratios appear to </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">be in addition to other financial covenants. For any material debt covenants, please </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">disclose the required financial ratios as well as the actual ratios as of each reporting date. </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">This will allow readers to understand how much cushion there is between the required ratios </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">and the actual ratios. Please show the specifi
c computations used to arrive at the actual </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">ratios with corresponding reconciliations to US GAAP amounts, if necessary. See Sections </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">I.D 9 and IV.C of the SEC Interpretive Release No. 33-8350 and Question 10 of our FAQ </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Regarding the Use of Non-GAAP Financial Measures dated June 13, 2003.</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 2:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We understand the Staff&#146;s concerns. However, we believe that, in our particular circumstances, our disclosures in the Liquidity and Capital Resources section of our December 31, 2008 Form 10-K were sufficient to satisfy the requirements of Regulation S-K Item 303, Sections I.D and IV.C of SEC Interpretive Release No. 33-8350 (&#147;FR-72&#148;) and Question 10 of the SEC FAQ</FONT></P>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2</FONT></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Regarding the Use of Non-GAAP Financial Measures. We have included additional information below to support our position.</FONT></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Debt covenants</FONT></U></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">U.S. Cellular is subject to debt covenants in its $700 million revolving credit facility and its long-term debt indenture. The revolving credit facility contains two financial covenants that require the maintenance of certain financial ratios; the long-term debt indenture does not contain any such financial covenants.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The revolving credit facility had $0 outstanding borrowings at December 31, 2008, excluding $0.3 million of letters of credit outstanding, as disclosed in our December 31, 2008 Form 10-K. In addition, based on forecasted cash flows, U.S. Cellular did not expect to draw on this facility prior to its expiration in December 2009. The following are the measurements of the financial debt covenants contained in the revolving credit facility at December 31, 2008:</FONT></P>
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     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Debt to capitalization ratio (1)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Interest coverage ratio (2)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Must not exceed 65%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Must not be less than 3:1</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">At December 31, 2008 = 21%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">At December 31, 2008 =</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">15.9:1</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE></DIV><BR>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Generally debt divided by capitalization (debt + other liabilities + equity + minority</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">interest + deferred tax liability)</FONT></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Generally adjusted EBITDA (income before interest, income taxes, depreciation,</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">amortization and certain other adjustments) divided by interest expense, as defined</FONT></P>
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<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Evaluation of FR-72</FONT></U></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">FR-72 requires companies to consider whether the MD&amp;A should include enhanced disclosures regarding debt instruments, guarantees and related covenants. FR-72 cites two scenarios that should be considered for disclosure:</FONT></P>
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     <TD align=left width="96%"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Companies that are, or are reasonably likely to be, in breach of debt covenants</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Debt covenants that impact companies&#146; ability to undertake additional debt or equity</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">financing</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">With regard to the first scenario, U.S. Cellular was not in breach of debt covenants contained in its revolving credit facility or its long-term debt indenture at December 31, 2008, nor was U.S. Cellular reasonably likely to be in breach of such covenants in the foreseeable future. This conclusion is supported by the significant clearance between the required coverage ratios and the actual ratios, as shown in the table above, as well as by the fact that U.S. Cellular&#146;s cash flow projections at December 31, 2008 indicated that no significant borrowings would be needed in the foreseeable future.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">With regard to the second scenario, we do not believe that we have debt covenants that significantly restrict our ability to undertake additional debt or equity financing. U.S. Cellular&#146;s revolving credit facility and its long-term debt indenture contain restrictions on the amount of liens that may be incurred and the amount of sale-leaseback transactions that may be executed. Further, U.S. Cellular&#146;s revolving credit facility contains provisions that restrict the amount of indebtedness U.S. Cellular may incur with an initial maturity of less than one year. U.S. Cellular does not consider these restrictions to be material since historically its significant debt issuances have been long-term unsecured notes, and U.S. Cellular does not plan to issue any secured debt, incur liens in excess of amounts permitted or enter into any sale-leaseback</FONT></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">transactions in the foreseeable future. With respect to the potential issuance of additional unsecured long-term debt, as shown in the table above, there was significant clearance between the actual debt coverage and interest coverage ratios and the related required ratios at December 31, 2008.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Based on these various factors, we do not believe disclosure was required under FR-72 in our December 31, 2008 Form 10-K. We will continue to carefully consider the disclosure requirements of FR-72 related to material debt covenants in future periods, including consideration of any different covenants when the revolving credit facility is replaced in 2009, and we will include such disclosures in our filings when appropriate.</FONT></P>
<P align=left><U><FONT face="Times New Roman" size=2><FONT style="FONT-SIZE: 12pt">Application of Critical Accounting Policies and Estimates</FONT><BR>
<FONT style="FONT-SIZE: 12pt">Licenses and Goodwill, page 21</FONT></FONT></U></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 3:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We note that FCC licenses accounted for 26% of total assets as of December 31, 2008. We </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">note that you performed your annual impairment test in the second quarter of 2008 and </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">concluded that FCC licenses were not impaired. We also note that you performed an </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">interim impairment test during the fourth quarter ending December 31, 2008 resulting in a </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$386.7 million non-cash charge.</FONT></P>
<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">In light of the significance of your FCC licenses balance, we expect robust and </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">comprehensive disclosure in your critical accounting policies regarding your impairment </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">testing policy. This disclosure should provide investors with sufficient information about </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">management&#146;s insights and assumptions with regard to the recoverability of FCC licenses. </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Specifically, we believe you should provide the following information:</FONT></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Disclose the carrying value of the intangible asset for each unit of accounting.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Describe the nature of the valuation techniques you employed in performing the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">impairment tests. As it appears you used a discounted cash flow methodology, </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">addressing EITF D-108, describe the method you used to isolate the cash flows </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">associated with the intangible asset.</FONT></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Quantitatively and qualitatively describe in detail the changes in the estimates used in </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">your assumptions to determine the fair value of your units of accounting since your last </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">impairment test. In addition, tell us and disclose how the assumptions in your most </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">recent test were impacted by the current economic environment.</FONT></P>
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<P align=left><FONT face="Times New Roman" size=2><B><U><FONT style="FONT-SIZE: 12pt">Response 3:</FONT></U></B></FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We will include the additional information requested above in future filings. Exhibit A attached to this letter provides an example of the expanded disclosures using information as of December 31, 2008.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">In addition, you requested that we tell you how the assumptions in our most recent test were impacted by the current economic environment. As we indicated in our response to Comment 1 above, further deterioration in the credit and financial markets and the accelerated decline in the overall economy in the fourth quarter of 2008 led to the use of a higher discount rate when projecting future cash flows. The discount rate was increased by 100 basis points; absent this change to the discount rate, the impairment charge would have been $233.7 million less, as disclosed on page 23 in Exhibit 13 of our December 31, 2008 Form 10-K.</FONT></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">With respect to projected earnings in the wireless industry, we use published industry wide and company specific projections of future earnings to help develop our future cash flow assumptions. The projections used in the fourth quarter of 2008 had declined compared to those used in the second quarter of 2008. We believe that the decline in these forecasted future earnings that occurred in the fourth quarter of 2008 was impacted by the current economic conditions. However, it is difficult to distinguish how much of the overall decline was due to the economic conditions versus being related to other industry dynamics.</FONT></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 4:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Refer to the methodologies and assumptions to estimate the fair value of the licenses that </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">are not being utilized as disclosed on page 23. Tell us what you mean by &#147;the fair value </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">estimates of these licenses that were prepared in the second quarter of 2008 were assumed </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">to have declined at the same rate as the fair value of the licenses operating markets.&#148;</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 4:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We perform separate valuations of unbuilt licenses. We follow this approach because these licenses are in market areas that are not currently developed and there are no current plans to develop any of these licenses or market areas. Historically, we prepared estimates of fair value for these unbuilt licenses by reference to fair market values indicated by recent auctions and market transactions for similar licenses. When we performed our impairment testing in the fourth quarter of 2008, we determined that there were minimal comparable market transactions occurring since the second quarter of 2008 from which to estimate the fair value of most of our unbuilt licenses; in addition, the market transaction data that we had used for our impairment testing in the second quarter of 2008 had aged further. Had we used this aged data for the impairment testing of unbuilt licenses in the fourth quarter of 2008, no impairment would have resulted. However,
 given the significant decline in the estimated fair value of the licenses in our operating markets that had occurred between the second and fourth quarters of 2008, we did not believe that this was a reasonable conclusion. Accordingly, we determined that a more reasonable method for estimating the fair value of the unbuilt licenses in the fourth quarter of 2008 was to assume that their fair values had declined since the second quarter of 2008 at the same proportional rate as our licenses in our operating markets. This was considered a reasonable assumption since the value inherent in an unbuilt license is the ability to deploy such license to operate a wireless business. As a result, the amount of the impairment charge related to unbuilt licenses was determined to be $57 million.</FONT></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 5:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We note that for purposes of impairment testing of your licenses, you use the excess </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">earnings methodology to estimate the fair value of the units of accounting that represent </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">developed operating markets. Tell us why you believe the excess earnings methodology is </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">an acceptable methodology to value the licenses under EITF D108. In your response </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">please include details about the application of this methodology to the FCC licenses, an </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">indefinite live intangible, including the assumptions used.</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 5:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">U.S. Cellular uses the multiple period excess cash flow method (&#147;MPECF&#148;) to estimate the fair value of its licenses in operating markets. This is a standard valuation methodology that is employed to value intangible assets and is a specific application of the discounted cash flow (&#147;DCF&#148;) method under the income approach. The principle behind the MPECF method is that the value of the intangible asset is equal to the present value of incremental after-tax cash flows attributable to the subject intangible asset. The incremental after-tax cash flows are calculated</FONT></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">by subtracting contributory asset charges (or economic rents) for assets that contribute to the cash flows such that the remaining cash flows are attributable to the subject intangible asset. The incremental after-tax cash flows attributable to the subject intangible asset are then discounted to the present to derive an indication of fair value.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We believe the MPECF method is an acceptable methodology to value licenses under EITF D108 as this methodology is a direct approach to valuing a subject intangible asset. Contributory asset charges are subtracted for assets that contribute to the generation of cash flows including: working capital, fixed assets, trademarks, subscriber relationships, assembled workforce, and going concern (a component of goodwill) to derive the cash flow stream attributable to the licenses. The cash flow stream attributed to the licenses is then discounted to the present to derive an indication of fair value.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">To corroborate the fair values estimated using the MPECF, a weighted average return analysis (&#147;WARA&#148;) was performed. The premise of the WARA is that each asset (both tangible and intangible) of a reporting unit has its own individual value and required rate of return. The weighted average return on all of these assets represents the overall required rate of return for the reporting unit, with the corresponding fair values equaling the total fair value of the reporting unit. This analysis effectively calculates the return on the residual goodwill. Given all of these factors, the implied return on the residual goodwill must be reasonable and consistent with the qualitative and quantitative factors regarding the reporting unit. Based on the analysis, the WARA confirmed both the reasonableness of the fair values of the identifiable assets as well as the implied return on the residual goodwill.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Additionally, we note that this specific matter (i.e., the use of the excess earnings methodology) was the topic of previous SEC staff comment letters dated September 30, 2003 (comment #15), December 23, 2003 (comment #6), and March 3, 2004 (comment #2). Our responses to such comments were contained in our letters dated November 3, 2003, February 17, 2004, and March 10, 2004. A further response to fulfill an SEC staff information request was provided by our legal counsel, Sidley, Austin, Brown &amp; Wood, in a letter to Ms. Stephanie Hunsaker dated March 16, 2004. In addition, U.S. Cellular and certain U.S. Cellular advisors participated in conference calls with the SEC staff on this topic and related matters in March 2004. As a result of the aforementioned correspondence and conference calls, the SEC staff did not object to U.S. Cellular&#146;s application of the excess earnings methodology to value its licenses. We note that this 2003-2004 
comment letter process was prior to the effective date of EITF D108. However, the concepts and conclusions ultimately reached in EITF D108 were discussed as part of that comment letter process. Accordingly, we believe that U.S. Cellular&#146;s excess earnings method is a direct value method that is in accordance with the requirements of EITF D108, and is a method which the SEC staff previously considered and did not object to.</FONT></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 6:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We note that goodwill accounted for 9% of total assets as of December 31, 2008. We note </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">that revenues, operating income and segment income had declined in fourth quarter due to </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the negative impact of the current economic environment. As a result of your yearly and </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">interim impairment tests of your reporting units as of December 31, 2008, you determined </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">that your goodwill balance was not impaired. In light of the significance of your goodwill </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">balance, we expect robust and comprehensive disclosure in your critical accounting policies </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">regarding your impairment testing policy. Th
is disclosure should provide investors with </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">sufficient information about management&#146;s insights and assumptions with regard to the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">recoverability of goodwill. Specifically, we believe you should provide the following </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">information:</FONT></P>
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<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">6</FONT></P>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Provide a more detailed description of the steps you perform to review goodwill for</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">recoverability.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Disclose a breakdown of your goodwill balance as of December 31, 2008 by reporting</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">unit.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Disclose any changes to your reporting units or allocations of goodwill by reporting unit</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">and the reasons for such changes.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD vAlign=top align=left rowSpan=7><FONT style="FONT-SIZE: 12pt" face=Symbol>&#183;</FONT></TD>
     <TD vAlign=top align=left colSpan=2 rowSpan=7><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Describe the nature of the valuation techniques and the significant estimates and </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">assumptions you employed to determine the fair value of your reporting units in your </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">impairment analysis. For example, if you utilize the discounted cash flow approach, you </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">should disclose the discount rates for each reporting unit and how those discount rates </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">were determined, including your consideration of any market risk premiums. In addition, </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">we believe your disclosure should address your estimates of future cash flows, as </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">follows:</FONT></TD></TR>
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     <TD vAlign=top align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD vAlign=top align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Provide a discussion of your historical cash flow growth rates and explain</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">how your historical growth rates were considered when determining the</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">growth rate to be utilized in your cash flow projections.</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Disclose the growth rate you need to achieve in your cash flow projections in</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">order to avoid having a goodwill impairment charge.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD vAlign=top align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">In view of the current economic environment, discuss how you considered the</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">uncertainties inherent in your estimated future growth rates. For example,</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">you should explain if and when you anticipated a recovery of the economy in</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">your growth rates used in your cash flows analysis.</FONT></TD></TR>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Describe changes to the assumptions and methodologies, if any, since your last annual</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">impairment test.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left colSpan=3 rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For further guidance, refer to Release No. 33-8350 &#147;Interpretation: Commission Guidance </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Regarding Management&#146;s Discussion and Analysis of Financial Condition and Results of </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Operations.&#148;</FONT></TD></TR>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 6:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We will include the additional information requested above in future filings. Exhibit A attached to this letter provides an example of the expanded disclosures using information as of December 31, 2008.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Additionally, we advise that:</FONT></P>
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     <TD align=left width="96%" rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">There have been no changes to our methodology for calculating the fair value of </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">goodwill since the adoption of FAS 142 on January 1, 2002.</FONT></TD></TR>
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     <TD align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">There were no changes to our reporting units for goodwill testing performed in the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">second quarter of 2007, the second quarter of 2008 and the fourth quarter of 2008.</FONT></TD></TR>
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     <TD vAlign=top align=left rowSpan=5><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Consistent with the valuation of our licenses, in determining the fair value of goodwill in </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the fourth quarter of 2008, we added a risk premium of 100 basis points in determining </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the cost of equity used to calculate our weighted average cost of capital, which is used </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">to determine the discount rate. No risk premium was included in the second quarter </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2008 calculation.</FONT></TD></TR>
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<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">7</FONT></P>
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     <TD vAlign=top align=left width="96%" rowSpan=5><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We did not explicitly incorporate a recovery of the economy in our cash flow projections. </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">However, a terminal value growth rate of 2.0% was used in both our April 2008 and </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">December 2008 impairment assessments. Therefore, our projections contemplate a </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">sustained level of growth on a long-term basis and, accordingly, such projections </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">implicitly contemplate that the current economic downturn will not be permanent.</FONT></TD></TR>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 7:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Tell us how you allocate the licenses that are not in use to your reporting units for purpose</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">of your goodwill impairment test.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 7:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For purposes of goodwill impairment testing, licenses that are not in use are included in reporting units based on their geographical groupings (areas).</FONT></P>
<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Comment 8:</FONT></U></B></P>
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<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Tell us why the primary drivers in your assumptions that resulted in the FCC licenses</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">impairment charge did not affect the recoverability of your goodwill.</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
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<P align=left><B><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Response 8:</FONT></U></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For purposes of our impairment tests in the fourth quarter of 2008, we used the same key drivers and assumptions for evaluating both licenses and goodwill. In fact, the estimated fair value of the reporting units in December 2008 was lower than the estimated fair value in April 2008 for all of the reporting units. In aggregate, the estimated fair value of the reporting units declined by 31% during this period. However, the estimated fair values for each reporting unit exceeded the respective carrying values at both valuation dates since there has historically been a substantial excess of the estimated fair value of goodwill over its book value. Even after the 31% decline in the estimated fair value of the reporting units, such reporting units&#146; fair values exceeded their respective carrying values by amounts ranging from 66% to 136%. It is not unreasonable to expect an impairment of licenses, but not goodwill, given that many licenses wer
e acquired in transactions that were not business combinations.</FONT></P>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">In connection with responding to the Staff&#146;s comments, the Company acknowledges that</FONT></P>
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     <TD align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the Company is responsible for the adequacy and accuracy of the disclosure in the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">filings;</FONT></TD></TR>
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     <TD align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Staff comments or changes to disclosure in response to Staff comments do not foreclose </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the Commission from taking any action with respect to the filings; and</FONT></TD></TR>
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     <TD align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the Company may not assert Staff comments as a defense in any proceeding initiated by </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the Commission or any person under the federal securities laws of the United States.</FONT></TD></TR>
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<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The Company&#146;s management has reviewed the above responses to the Staff&#146;s comments with the Audit Committee of its Board of Directors and with its independent public accounting firm, PricewaterhouseCoopers, LLP. If you have any questions, please contact me at (773) 399-4850.</FONT></P>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Yours truly,</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD style="TEXT-INDENT: 0px" colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD align=left colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">United States Cellular Corporation</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD style="TEXT-INDENT: 0px" colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">By:</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">/s/ Steven T. Campbell</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Steven T. Campbell</FONT><BR>
<FONT style="FONT-SIZE: 12pt" face="Times New Roman">Executive Vice President-Finance</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">&nbsp;</FONT><BR>
<FONT style="FONT-SIZE: 12pt" face="Times New Roman">and Chief Financial Officer</FONT></TD></TR></TABLE></DIV><BR>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">9</FONT></P>
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<P align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Exhibit A</FONT></B></P>
<P align=left><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Note: This is an excerpt from U.S. Cellular&#146;s December 31, 2008 Form 10-K, Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations &#150; Application of Critical Accounting Policies and Estimates &#150; Licenses and Goodwill. Such excerpt has been revised to incorporate changes that would be made in future filings in response to comments #3 and #6 contained in the SEC comment letter dated May 27, 2009.</FONT></B></P>
<P align=left><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Licenses and Goodwill</FONT></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">As of December 31, 2008, U.S. Cellular reported $1,433.4 million of licenses and $494.3 million of goodwill, as a result of acquisitions of interests in wireless licenses and businesses. As discussed in Note 4&#151;Variable Interest Entities in the Notes to Consolidated Financial Statements, licenses include those won or provisionally won by Carroll Wireless, Barat Wireless, King Street Wireless and Aquinas Wireless in FCC auctions. Licenses also include rights to the remaining licenses that will be received when the 2003 AT&amp;T Wireless exchange transaction is fully completed.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">See Note 7&#151;Licenses and Goodwill in the Notes to Consolidated Financial Statements for a schedule of licenses and goodwill activity in 2008 and 2007.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Licenses and goodwill must be reviewed for impairment annually or more frequently if events or changes in circumstances indicate that any of such assets might be impaired. U.S. Cellular performs the required annual impairment review on licenses and goodwill during the second quarter of its fiscal year. Accordingly, U.S. Cellular performed its annual impairment test for 2008 as of April 1, 2008. As a result of the further deterioration in the credit and financial markets and the accelerated decline in the overall economy in the fourth quarter of 2008, U.S. Cellular performed another impairment assessment of licenses and goodwill as of December 31, 2008. There can be no assurance that upon review at a later date material impairment charges will not be required.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The impairment test for intangible assets other than goodwill consists of comparing the fair value of the intangible asset to its carrying amount. If the carrying amount exceeds the fair value, an impairment loss is recognized for the difference. The goodwill impairment test is a two-step process. The first step compares the fair value of the reporting unit as identified in accordance with SFAS No. 142, </FONT><I><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Goodwill and Other Intangible Assets </FONT></I><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(&#147;SFAS 142&#148;) to its carrying value. If the carrying amount exceeds the fair value, the second step of the test is performed to measure the amount of impairment loss, if any. The second step compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. To calculate the implied fair value of goodwill in this second step, an enterprise 
allocates the fair value of the reporting unit to all of the assets and liabilities of that reporting unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value was the price paid to acquire the reporting unit. The excess of the fair value of the reporting unit over the amount assigned to the assets and liabilities of the reporting unit represents the implied fair value of goodwill. If the carrying amount of goodwill exceeds the implied fair value of goodwill, an impairment loss is recognized for that difference.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Quoted market prices in active markets are the best evidence of fair value of an asset or reporting unit and are used when available. If quoted market prices are not available, the estimate of fair value is based on the best information available, including prices for similar assets and the use of other valuation techniques. Other valuation techniques include present value analysis, multiples of earnings or revenues, or similar performance measures. The use of these techniques involves assumptions by management about factors that are highly uncertain including future cash flows, the appropriate discount rate and other inputs. Different assumptions for these inputs or different valuation methodologies could create materially different results.</FONT></P>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">10</FONT></P>
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<P align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Exhibit A</FONT></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">U.S. Cellular tests goodwill for impairment at the level of reporting referred to as a reporting unit. For purposes of impairment testing of goodwill in 2008, U.S. Cellular identified five reporting units pursuant to paragraph 30 of SFAS 142. The five reporting units represent five geographic groupings of FCC licenses, representing five geographic service areas. There were no changes to U.S. Cellular&#146;s reporting units, the allocation of goodwill to U.S. Cellular&#146;s reporting units, or to U.S. Cellular&#146;s overall goodwill impairment testing methodology during 2008 or 2007.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">U.S. Cellular tests licenses for impairment at the level of reporting referred to as a unit of accounting. For purposes of its annual impairment testing of licenses in the second quarter of 2008, U.S. Cellular combined its FCC licenses into nineteen units of accounting pursuant to FASB Emerging Issues Task Force (&#147;EITF&#148;) Issue 02-7, </FONT><I><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Units of Accounting for Testing Impairment of Indefinite-Lived Intangible Assets </FONT></I><FONT style="FONT-SIZE: 12pt" face="Times New Roman">(&#147;EITF 02-7&#148;) and SFAS 142. Of these, fourteen of such nineteen units of accounting represented geographic groupings of licenses which, because they were not being utilized and, therefore, were not expected to generate cash flows from operating activities in the foreseeable future, were considered separate units of accounting for purposes of impairment testing. Subsequent to the second quar
ter 2008 licenses impairment testing, previously unutilized licenses in one unit of accounting were deployed in one of the five units of accounting that represent developed operating markets. As a result, U.S. Cellular's impairment testing of licenses conducted in the fourth quarter of 2008 was applied to eighteen units of accounting, thirteen of which represented licenses that were not being utilized.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For purposes of impairment testing of goodwill, U.S. Cellular prepares valuations of each of the five reporting units. A discounted cash flow approach is used to value each of the reporting units, using value drivers and risks specific to the current industry and economic markets. The cash flow estimates incorporate assumptions that market participants would use in their estimates of fair value. Key assumptions made in this process are the discount rate, estimated future cash flows, projected capital expenditures and terminal growth rate.</FONT></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Impairment Assessment of U.S. Cellular Goodwill</FONT></U></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Estimated future cash flows were reduced from our April 2008 valuation to our December 2008 valuation as the accelerated decline in the overall economy in the fourth quarter of 2008 led to near-term earnings forecasts for the wireless industry that were lower than previous forecasts. Such lower earnings forecasts caused us to reduce our estimated future cash flows and our estimated future capital expenditures. We did not specifically consider a potential economic recovery in the development of these projections in December 2008, but the projections consider the impact of the economy, historical growth rates and other industry dynamics in total.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The economy also impacted the consideration of the discount rate used in the discounted cash flow model. The discount rate is determined by computing a weighted average cost of capital at each valuation date. The use of a higher discount rate at December 31, 2008 compared to April 1, 2008 was driven by both the decline in the overall economic environment and the greater uncertainty caused by the deterioration in the credit and financial markets that occurred between these two dates. Given these changes, for purposes of the December 2008 valuation, U.S. Cellular added a company specific risk premium of 100 basis points to the cost of equity component of the weighted average cost of capital, and also significantly increased the after-tax cost of the debt component of the weighted average cost of capital. Overall, these changes resulted in a discount rate in December 2008 that was 100 basis points higher than the discount rate used in April 2008
.</FONT></P>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">11</FONT></P>
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<P align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Exhibit A</FONT></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">We applied the following assumptions in our discounted cash flow analyses for each reporting unit:</FONT></P>
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     <TD width="2%"></TD>
     <TD width="12%"></TD>
     <TD width="5%"></TD>
     <TD width="1%"></TD>
     <TD width="2%"></TD>
     <TD width="12%"></TD>
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     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Key assumptions</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=center rowSpan=2></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=3 rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">December</FONT><BR>
<FONT style="FONT-SIZE: 12pt" face="Times New Roman">31, 2008</FONT></TD>
     <TD align=center rowSpan=2></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=3 rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">April 1, 2008</FONT></TD></TR>
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<TR vAlign=bottom>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Weighted average expected growth rate (2010 - 2013)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.7</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">4.6</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Weighted average long-term and terminal growth rate</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.0</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.0</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Discount rate</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">10.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">9.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Average annual capital expenditures (2009 - 2020) (millions)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">556</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">688</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">As of December 31, 2008, the fair values of the reporting units exceeded their respective carrying values by amounts ranging from 66% to 136%. As such, no impairment of goodwill existed.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The carrying values of each reporting unit at December 31, 2008 were as follows (dollars in millions):</FONT></P>
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     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Reporting unit</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Carrying value</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Central Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">1,330</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Mid-Atlantic Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">674</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">New England Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">211</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">New York Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">100</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Northwest Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">299</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
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     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left>
<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Total</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
</TD>
     <TD style="BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2,614</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">As noted above, a terminal growth rate of 2.0% was applied in the valuation of the U.S. Cellular reporting units at December 31, 2008. The fair values of the reporting units would not be less than their respective carrying values unless the terminal growth rate was between negative 5% and negative 100%.</FONT></P>
<P align=left><U><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Impairment Assessment of U.S. Cellular Licenses</FONT></U></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For purposes of impairment testing of licenses, U.S. Cellular prepares valuations of each of the units of accounting that represent developed operating markets using an excess earnings methodology. This excess earnings methodology estimates the fair value of the units of accounting by measuring the future cash flows of the license groups, reduced by charges for contributory assets such as working capital, trademarks, existing subscribers, fixed assets, assembled workforce and going concern. Specifically, this involved performing the following steps for each developed operating market:</FONT></P>
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     <TD width="2%"></TD>
     <TD width="2%"></TD>
     <TD width="96%"></TD></TR>
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     <TD align=left rowSpan=6></TD>
     <TD vAlign=top align=left rowSpan=6><FONT style="FONT-SIZE: 12pt" face=Symbol>&#183;</FONT></TD>
     <TD vAlign=top align=left rowSpan=6><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Calculation of the discounted cash flows for each developed operating market. U.S. </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Cellular&#146;s assumptions for projected earnings in the wireless industry were the same as </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">used for the valuation of goodwill and thus were reduced because of the decline in the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">overall economic environment in the fourth quarter of 2008 compared to the second </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">quarter of 2008. As previously noted, these projections did not specifically anticipate </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">and/or incorporate a recovery of the economy.</FONT></TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom></TR>
<TR>
     <TD></TD>
     <TD colSpan=2><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face=Symbol>&#183;</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Deducting the following contributory asset charges from such discounted cash flows:</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">12</FONT></P>
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<P align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Exhibit A</FONT></B></P>
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     <TD vAlign=top align=left width="2%" rowSpan=3></TD>
     <TD vAlign=top align=left width="2%" rowSpan=3></TD>
     <TD vAlign=top align=left width="2%" rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left width="94%" rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Working capital &#150; this requires estimates of working capital charges as a </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">percentage of U.S. Cellular revenues and an after-tax required rate of return on </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">such working capital</FONT></TD></TR>
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     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">U.S. Cellular trade name &#150; this requires an estimate of an after-tax royalty rate as </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">a percent of revenues billed to subscribers</FONT></TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=3></TD>
     <TD vAlign=top align=left rowSpan=3></TD>
     <TD vAlign=top align=left rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Existing subscribers &#150; this requires an estimate of the fair value per subscriber, </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">the required rate of return associated with subscribers, and the projected number </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">of subscribers over the forecast period for each developed operating market</FONT></TD></TR>
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<TR vAlign=bottom></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=3></TD>
     <TD vAlign=top align=left rowSpan=3></TD>
     <TD vAlign=top align=left rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left rowSpan=3><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Fixed assets &#150; this requires estimates of the projected levels of fixed assets, the </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">expected lives of fixed assets and after-tax required rate of return associated with </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">fixed assets</FONT></TD></TR>
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<TR vAlign=bottom></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Assembled workforce &#150; this requires estimates of the after-tax required rate of </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">return of the assembled workforce over the forecast period</FONT></TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">o</FONT></TD>
     <TD vAlign=top align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Going concern &#150; this requires an estimate of the economic margin attributable to </FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">going concern (a component of goodwill)</FONT></TD></TR>
<TR vAlign=bottom></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The changes in key assumptions applied in the impairment testing of licenses between our April 1, 2008 and December 31, 2008 testing dates were as follows:</FONT></P>
<TABLE cellSpacing=0 width=1100 border=0>
<TR>
     <TD width="74%"></TD>
     <TD width="2%"></TD>
     <TD width="10%"></TD>
     <TD width="1%"></TD>
     <TD width="2%"></TD>
     <TD width="10%"></TD>
     <TD width="1%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=left rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Key assumptions</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=center rowSpan=2></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=2 rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">December</FONT><BR>
<FONT style="FONT-SIZE: 12pt" face="Times New Roman">31, 2008</FONT></TD>
     <TD align=center rowSpan=2></TD>
     <TD style="BORDER-BOTTOM: #000000 1pt solid" align=center colSpan=2 rowSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">April 1, 2008</FONT></TD></TR>
<TR vAlign=bottom></TR>
<TR vAlign=bottom>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">One-year LIBOR rate</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.0</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Contributory asset charge</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>
<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Working capital premium</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
</TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">3.0</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">2.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Fixed assets</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left>
<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Fixed asset premium over LIBOR</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
</TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">6.0</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">5.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Discount rate</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">9.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD align=right></TD>
     <TD align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">8.5</FONT></TD>
     <TD align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">%</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">A higher premium over LIBOR (50 basis points) was applied in deriving the working capital and fixed asset returns in the December 2008 valuation given widening spreads between short-term and long-term yields and tightening in the credit markets. The use of a higher discount rate at December 31, 2008 compared to April 1, 2008 was driven by both the decline in the overall economic environment and greater uncertainty caused by the deterioration in the credit and financial markets, between these two dates. Given these changes, U.S. Cellular added a company specific risk premium of 100 basis points to the cost of equity component of the weighted average cost of capital, and also significantly increased the after-tax cost of debt component of the weighted average cost of capital. Overall, these changes resulted in a discount rate in December 2008 that was 100 basis points higher than the discount rate used in April 2008. Note that if the discount r
ate assumption increased by 1% to 10.5%, the total impairment would increase by $181.4 million and if the discount rate assumption decreased by 1% to 8.5%, the total impairment would decrease by $233.7 million.</FONT></P>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">13</FONT></P>
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<A name="page_14"></A>
<P align=center><B><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Exhibit A</FONT></B></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">The carrying value of licenses by unit of accounting (after recognition of the impairment loss) at December 31, 2008 was as follows (dollars in millions):</FONT></P>
<TABLE cellSpacing=0 border=0>
<TR>
     <TD width="60%"></TD>
     <TD width="30%"></TD>
     <TD width="10%"></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Unit of accounting</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right colSpan=2><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Carrying value</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Operating markets (five units of</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">accounting):</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Central Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">621</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Mid-Atlantic Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">197</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">New England Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">78</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">New York Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">0</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Northwest Region</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">71</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" colSpan=3><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Non-operating markets (thirteen</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">units of accounting):</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Central (3 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">99</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">South Central (3 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">5</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">North Central (3 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">28</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Southwest Central I (3 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">8</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Southwest Central II (4 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">16</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Northwest Central I (5 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">14</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Northwest Central II (3 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">148</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Central Mid-Atlantic (7 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">36</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Southeast Mid-Atlantic (3</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT><FONT style="FONT-SIZE: 12pt" face="Times New Roman">states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">35</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Mississippi Valley (14 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">44</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Northeast (4 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">24</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">North Northwest (2 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">3</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">South Northwest (2 states)</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">6</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR>
<TR vAlign=bottom>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=left>
<P style="MARGIN-LEFT: 20px"><FONT style="FONT-SIZE: 12pt" face="Times New Roman">Total</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></P>
</TD>
     <TD style="BORDER-TOP: #000000 1pt solid; BORDER-LEFT: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">$</FONT></TD>
     <TD style="BORDER-RIGHT: #000000 1pt solid; BORDER-TOP: #000000 1pt solid; BORDER-BOTTOM: #000000 1pt solid" align=right><FONT style="FONT-SIZE: 12pt" face="Times New Roman">1,433</FONT><FONT style="FONT-SIZE: 12pt">&nbsp;</FONT></TD></TR></TABLE><BR>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">For units of accounting which consist of licenses that are not being utilized, U.S. Cellular prepares estimates of fair value by reference to fair values indicated by recent auctions and market transactions where available. In the fourth quarter of 2008, there were minimal recent market transactions to provide a reasonable fair value estimate of most of the unbuilt licenses. In light of the decline in the economic environment, U.S. Cellular estimated their fair values declined at the same rate as the fair value of the licenses in developed operating markets between April and December of 2008.</FONT></P>
<P align=left><FONT style="FONT-SIZE: 12pt" face="Times New Roman">As of December 31, 2008 (after recognition of the impairment loss), the fair values of the licenses in each unit of accounting exceeded their respective carrying values by amounts ranging from 0% to 64%.</FONT></P>
<P align=center><FONT style="FONT-SIZE: 12pt" face="Times New Roman">14</FONT></P>
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