US Cellular To Restructure Customer Service Dept

WASHINGTON -(Dow Jones)- Telephone & Data Systems Inc. (TDS) disclosed Friday that its U.S. Cellular Corp. (USM) unit will restructure its customer service department as a result of the recently announced exchange of cellular properties with Alltel Corp. (AT).

As part of the realignment, U.S. Cellular will close its customer-care center in Medford, Ore., which will affect roughly 170 workers, according to a document filed with the Securities and Exchange Commission.

According to U.S. Cellular's Web site, the company has about 7,400 employees. Based on that figure, nearly 2.3% of its work force will be affected by the closing.

U.S. Cellular will incur certain costs, primarily for employee severance, benefits continuation, asset impairment and lease obligations.

U.S. Cellular said it expects the impact of the costs on pretax income to be around $2 million to $4 million, a portion of which will be incurred in the third quarter, the filing said.

The company also said it expects roughly $2.5 million to $3.5 million of such costs to result in future cash expenditures.

-By Chad Clinton, Dow Jones Newswires; 202-862-1349; chad.clinton@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 23rd September 2005