U.S. Cellular exiting Chicago market

Note: Job cut numbers are updated to correct confusion over numbers supplied by U.S. Cellular.

Chicago-based wireless carrier U.S. Cellular said Wednesday that it is selling its Chicago, St. Louis and central Illinois markets, along with three others in the Midwest, to subsidiaries of Sprint Nextel Corp. for $480 million.

The deal, which requires regulatory approval and is expected to close in mid-2013, will transfer PCS spectrum and about 585,000 customers -- just under 10 percent of U.S. Cellular's subscribers -- to Sprint. The markets account for about 11 percent of U.S. Cellular's service revenues.

As part of the transition, about 640 local jobs -- 160 of them in Chicago proper -- will be eliminated over time. Overall losses in the affected markets will number about 980 positions, with approximately 850 of those related to retail stores. U.S. Cellular will be closing its stores in the geographies it's exiting; engineering and business support jobs in areas such as finance and marketing will also be eliminated.

U.S. Cellular, which employed about 8,400 at the end of September, will retain its Chicago headquarters along with 860 jobs there. In the greater Chicago area, the company will have about 1,400 employees after the transition.

The Sprint deal "positions us, I believe, very strongly for the future, and we're going to continue to be headquartered here in Chicago," President and Chief Mary Dillon told the Tribune. "We've been here since 1985."

On a morning conference call, Dillon described the move as getting "stronger by initially getting smaller" and said the decision was "not taken lightly," given the effect on the company's employees.

In the markets that U.S. Cellular is selling to Sprint, "we aren't reaching the rate of profitable customer growth and return on investment we need to operate effectively," Dillon said on a conference call.

In the affected markets, postpaid churn -- a wireless industry figure that measures defections among customers who are on contracts -- was roughly double that of the carrier's other geographies, Dillon said, indicating a "disproportionate share of subscriber losses." She added that because the company entered those markets later than its rivals, it had difficulty gaining share and incurred financial losses. Penetration in the affected markets was 3.9 percent versus a rate of 16.2 percent in other areas, Dillon said.

U.S. Cellular does not offer 4G service in Chicago, lagging rivals such as AT&T and Verizon Wireless. In an interview with the Tribune, Dillon acknowledged that launching 4G service requires a step-up in technology investment that did not make sense in markets where penetration is low.

While the company is now getting out of Chicago and other markets, "this move does allow us to get to the next generation of technology in our remaining markets faster," Dillon told the Tribune. The company expects 58 percent of its customers to be covered by 4G LTE by year-end, with the roll-out continuing into next year.

In Illinois, the carrier will continue to service markets including Joliet and Rockford after the Sprint deal closes. After it exits the affected markets, the company will have more than 5.2 million customers in 23 states.

Locally, U.S. Cellular will be transitioning a Bolingbrook customer call center to an existing vendor partner Jan. 1, with that company retaining most of the jobs and employees, Dillon said.

On a conference call with financial analysts, the company said the Sprint deal does not change naming rights on the home field for the White Sox, U.S. Cellular Field.

"We have a long-term relationship with the White Sox," said David Kimbell, chief marketing officer at U.S. Cellular. "Even after this transaction, we're going to have 1,400 associates in Chicago so that relationship (with the White Sox) is not part of that deal and will not be changing."

Dillon emphasized that the carrier will continue to provide the same level of customer service during the transition period and that its subscribers will experience "no immediate change." The company has created a website, www.uscellularinfo.com, that explains the transaction to consumers.

For now, neither U.S. Cellular nor Sprint are offering details on what the transition will look like for affected customers. Dillon said the company will be keeping an eye on its subscriber base to prevent defections and "making sure our customers are very aware there is no change or impact on them for many months."

Stores will remain open and consumers are encouraged to continue upgrading their devices and redeeming reward points through U.S. Cellular's loyalty program, Dillon said. In addition, she said the company will remain "very competitive and aggressive around the holiday period" when it comes to marketing, even in areas that are being sold to Sprint.

The deal with Sprint does not include U.S. Cellular's network equipment, such as the towers and other infrastructure it has in affected markets. The Chicago-based carrier will keep running its network during a transition period, after which Sprint will notify U.S. Cellular as to when it should shut down those operations.

Also on Wednesday, U.S. Cellular said its third-quarter net income dropped 43 percent, as the company subsidized sales of new smartphones.

U.S. Cellular earned $35.5 million, or 42 cents per share, down from $62.1 million, or 73 cents per share, in the same quarter last year. Revenue rose 3 percent to $1.14 billion.

Sprint shares were down 1.8 percent to $5.63 in morning trade. U.S. Cellular Corp. shares were dropping 7.4 percent, to $36.15.

wawong@tribune.com | Twitter @VelocityWong

-- The Associated Press contributed.

USM data by YCharts

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Candidates make last-minute push for votes

Residents of Dixville Notch, New Hampshire kicked off Election Day by voting at midnight. The result was a tie, reflecting the close race that polls are showing around the nation.

Campaign 2012 packed frantic suspense to the finish, with Vice President Joe Biden flying in unannounced next to Republican Mitt Romney's campaign plane in battleground Ohio on Tuesday even as voters across the country were deciding who would win the White House.

President Barack Obama stayed in hometown Chicago, reaching out to swing-state voters on the phones and via satellite while the other three men on the rival tickets had a high noon face-off near the shore of Lake Erie.

Romney and running mate Paul Ryan had scheduled the stop together just Monday, and Biden's plane arrived between the two to play defense in the state that's critical to the victory plan for both sides. The vice president rolled off the tarmac without comment to the surprised media traveling on his plane, just as Ryan's charter was pulling in for a landing.

Romney said the eleventh-hour campaigning was meant to leave him with no regrets.

"I can't imagine an election being won or lost by, let's say, a few hundred votes and you spent your day sitting around," Romney told Richmond radio station WRVA earlier in the day. "I mean, you'd say to yourself, 'Holy cow, why didn't I keep working?' And so I'm going to make sure I never have to look back with anything other than the greatest degree of satisfaction on this whole campaign."

Meanwhile, Americans headed into polling places in sleepy hollows, bustling cities and superstorm-ravaged beach towns deeply divided. All sides are awaiting, in particular, a verdict from the nine battleground states whose votes will determine which man can piece together the 270 electoral votes needed for victory.

Obama has more options for getting there. So Romney decided to make the late dash to Cleveland and Pittsburgh on Tuesday while running mate Ryan threw in another stop in Richmond, Va.

Obama visited a campaign office close to his home in Chicago and was met by applause and tears from volunteers before he picked up a phone to call voters in neighboring Wisconsin. He told reporters that the election comes down to which side can get the most supporters to turn out.

"I also want to say to Gov. Romney, 'Congratulations on a spirited campaign.' I know his supporters are just as engaged, just as enthusiastic and working just as hard today," the president said.

Romney was asked on WTAM radio in Cleveland whether he agreed that voters always get it right in the end. "I won't guarantee that they'll get it right, but I think they will," Romney replied.

Biden and his wife, Jill Biden, were among the first voters Tuesday in at a polling place in Greenville, Del., Biden's home state. Smiling broadly, Biden waited in line with other voters and greeted them with a handshake. Outside he sent a message to people across the country who may encounter crowded polling places. "I encourage you to stand in line as long as you have to," he told television cameras.

The Obamas had voted last month in an effort to encourage supporters to vote early. The men on the GOP ticket each voted with their wives at their side Tuesday morning in their hometowns — Romney in Belmont, Mass., and Ryan in Janesville, Wis. — then headed to meet in Cleveland for some retail politicking at restaurants and other unannounced stops. The last-minute nature of the swing made it too difficult to arrange a big public event, but their hope was their joint visit would get local news coverage that might translate to more support.

Both sides cast the Election Day choice as one with far-reaching repercussions for a nation still recovering from the biggest economic downturn since the Great Depression and at odds over how big a role government should play in solving the country's problems.

"We can make sure that we make even greater progress going forward in putting folks back to work and making sure that they've got decent take-home pay, making sure that they have the health insurance that they need, making sure we're protecting Medicare and Social Security," Obama said in an interview broadcast Tuesday on "The Steve Harvey Morning Show." ''All those issues are on the ballot, and so I'm hoping that everybody takes this seriously."

Romney argued that Obama had his chance to help Americans financially and blew it. "If it comes down to economics and jobs, this is an election I should win," Romney told Cleveland station WTAM.

With both sides keeping up the onslaught of political ads in battleground states right into Election Day, on one thing, at least, there was broad agreement: "I am ready for it to be over," said nurse Jennifer Walker in Columbus, Ohio.

It wasn't just the presidency at stake Tuesday: Every House seat, a third of the Senate and 11 governorships were on the line, along with state ballot proposals on topics ranging from gay marriage and casino gambling to repealing the death penalty and legalizing marijuana. Democrats were defending their majority in the Senate, and Republicans doing likewise in the House, raising the prospect of continued partisan wrangling in the years ahead no matter who might be president.

If past elections are any guide, a small but significant percentage of voters won't decide which presidential candidate they're voting for until Tuesday. Four percent of voters reported making up their minds on Election Day in 2008, and the figure was 5 percent four years earlier, according to exit polls. In Washington-Lee High School in Arlington, Va., hundreds of voters were in line shortly after the polls opened at 6 a.m. and had to wait more than an hour to cast their ballot.

The forecast for Election Day promised dry weather for much of the country, with rain expected in two battlegrounds, Florida and Wisconsin. But the closing days of the campaign played out against ongoing recovery efforts after Superstorm Sandy. Election officials in New York and New Jersey scrambled to marshal generators, move voting locations, shuttle storm victims to polling places and take other steps to ensure everyone who wanted to vote could do so.

In New York City, authorities planned to run shuttle buses every 15 minutes Tuesday in storm-slammed areas to bring voters to the polls. In Ocean County along the New Jersey coast, officials hired a converted camper to bring mail-in ballots to shelters in Toms River, Pemberton and Burlington Township.

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Exclusive: EU regulators to accept Apple, publishers e-book offer

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Ivorian reggae singers bury rivalry for “peace” tour

ABIDJAN (Reuters) – As darkness falls over Ivory Coast‘s lagoon-side commercial capital a steady thumping cuts through the tropical night.

But where once the thud of heavy weapons set the Abidjan‘s residents scrambling indoors for cover, tonight it is a reggae bass line that draws them out.

Here, little over a year ago, supporters of then-president Laurent Gbagbo and his rival Alassane Ouattara were fighting a brief post-election civil war, the final deadly showdown of a decade-long political crisis.

After years teetering precariously between war and peace, the flames of division, xenophopia and anger – fanned in no small degree by some of the country’s most famous musicians – exploded into a conflict in which more than 3,000 people died.

One of Ivory Coast’s leading reggae artists, Serge Kassy, even rose to become a leader and organizer of Gbagbo’s Young Patriots street militia – a group accused of numerous atrocities during the war. Kassy is now in exile.

“When I looked at the musical scene in Ivory Coast, I realized that we ourselves went too far,” said Asalfo Traore of the zouglou band Magic System, one of the few groups that refused to take sides during the crisis years.

“It was when everything was ruined that we wanted to glue the pieces back together. But it was too late.”

Now, long-divided musicians are once again coming together, hoping to use their influence, so destructive for so long, to help Ivory Coast heal its deep wounds, and the country’s leading rival reggae artists are showing the way.

REGGAE RIVALRY

The long feud between Alpha Blondy and Tiken Jah Fakoly is a thing of legend in the reggae world, though neither has been willing to say what was behind the bad blood.

Both men come from Ivory Coast’s arid north and share a musical genre. But the similarities stop there.

Alpha, considered the father of Ivorian reggae, takes the stage in Abidjan clad in a shimmering pink suit, golden tie and Panama hat of an urban dandy. Tiken wears the traditional flowing robes of his northern Malinke tribe.

During the crisis, Alpha remained in Ivory Coast, while Tiken, a vocal critic of President Gbagbo‘s regime, went into exile in neighboring Mali.

They had so successfully avoided each other during their long parallel careers that before he picked up the phone to approach Alpha with the idea of uniting for a series of peace concerts, Tiken claimed they’d met only twice.

“Before going to the Ivorians to ask them to move towards reconciliation, it was important for us to show a major sign. That’s what we did,” Tiken told Reuters.

Out of a meeting in Paris was born a simple idea: six concerts in six towns across a country once split between a rebel north and government-held south, bringing together musicians from across the political spectrum to push for peace.

“No one’s died over the problems between Tiken and me,” said Alpha. “There are things that are more serious than our little spats, our pride and our vanities.”

Uniting the Ivorian music scene proved relatively easy in the end. Uniting the country could prove a tougher task.

BUSINESS AS USUAL

Some 18 months since the war ended, reconciliation in Ivory Coast is going nowhere.

Though Ouattara is praised by international partners for quicky turning around the economy, critics complain he has done little to foster unity. He has so far refused to prosecute those among his supporters accused of atrocities during the war.

Meanwhile Gbagbo, who lost the run-off election but garnered 46 percent of votes, is in The Hague on war crimes charges.

The leaders of his FPI political party are either dead, in jail or living in exile, from where they are accused by United Nations investigators of organizing deadly armed raids on Ivorian police, military and infrastructure targets.

“People came here for Alpha, Tiken Jah and artists they only ever see on TV, not for reconciliation,” said high school teacher Michel Loua in Gagnoa, the second stop on the tour in Gbagbo’s home region.

“The politicians have made a business of it. They talk up reconciliation when it suits them, otherwise they could care less,” he said.

Unity was never a problem, Alpha said, until politicians began to play the ethnic identity card in the struggle for power that followed the death of independence President Felix Houphouet-Boigny in 1993. And even after the violence and massacres, it is still not the problem today.

“Ivorians are not divided. That’s what I discovered,” he said on the last night of the tour. “If there are people that need reconciliation, it’s not the artists or the people. It’s the politicians,” he said.

Minutes later he was on stage singing “Course au Pouvoir”, a 16-year-old song that has found new relevance today with its lyrics: “There’s blood on the road that leads to the tower of power. Innocent blood.”

Having wrapped up their tour, Tiken, Alpha and the rest of the musicians are due to meet with President Ouattara and plan to call for the release of all pro-Gbagbo prisoners not accused of involvement and killings as a sign of good will.

The move has been called for by human rights groups as well as the FPI, who list it as one of their pre-conditions for dialogue. And though Ouattara has given no indication he is open to the possibility, many feel it is an unavoidable step towards lasting peace.

(Editing by Richard Valdmanis, editing by Paul Casciato)

Music News Headlines – Yahoo! News

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Vital Signs: Limits to Resveratrol as a Metabolism Aid

Resveratrol, the red wine component shown to be helpful in improving metabolic function in obese or diabetic people, has no discernible effect on healthy women who are not obese, a new experiment has found.

In a small 12-week randomized, double-blinded trial, researchers gave 29 normal weight postmenopausal women either 75 milligrams a day of resveratrol or a placebo, testing their metabolic function at the start and end of the study.

Blood concentrations of resveratrol increased in the group given the supplements, but the scientists found no difference between them and those given the placebo in body composition, resting metabolic rate or glucose tolerance (a test for insulin resistance and diabetes).

The study, to be published in this week’s issue of the journal Cell Metabolism, found that blood pressure, heart rate, C-reactive protein levels (a measure of inflammation), LDL, HDL and total cholesterol were unaffected by resveratrol. In other words, resveratrol blood concentrations were associated with no quantifiable changes, beneficial or otherwise, in any measure of metabolic function.

Does this mean that resveratrol offers no benefits? Not necessarily, said the senior author, Dr. Samuel Klein, a professor of medicine at Washington University in St. Louis. “We only show that metabolically healthy people get no benefits to begin with,” he said. “We have no way of knowing whether it will prevent future metabolic complications.”

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Political futures traders pick Obama

WASHINGTON -- The votes of traders in political futures have been pouring in for months, and they say President Obama lands a second term in Tuesday's election.

The chances that Obama is reelected stood at about 71% on Tuesday morning on Intrade, near a one-month high and up about 3% for the day in early trading. The chances that Republican Mitt Romney wins the presidency were about 29%, close to a low for the past month and down about 4%.

Most people buying political futures on the site also apparently believe that Republicans will retain control of the House and Democrats will hold on to their majority in the Senate.

Intrade's futures have an excellent track record. They accurately predicted the result in every state in the 2004 presidential election, and all but two in the 2008 contest, according to CNNMoney.

This year, Intrade gives Obama a 73% chance of winning the crucial battleground state of Ohio, with Romney at about 27% as of Tuesday morning. And the site predicts that Obama will win 294 electoral votes to Romney's 235.

The market will remain open all day, "until a winner is clearly known," an Intrade spokesman said.

Intrade bettors correctly predicted in January that Romney would win the Republican nomination, but at no point in the 2012 presidential campaign did the political futures traders have Romney beating Obama.

That's somewhat surprising given that Obama's odds of winning plunged in the summer of 2011 to about even money after the contentious battle over raising the nation's debt ceiling and the Standard & Poor's credit downgrade that followed.

But Romney has closed a huge late-September gap on Intrade's presidential election market, when Obama's reelection odds neared 80%.

ALSO:

Romney top bet to win Iowa on political futures trading site

Obama's reelection odds sink on political futures trading site

Wall Street may rally regardless of presidential election winner

Follow Jim Puzzanghera on Twitter and Google+.

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