Contains U.S. Cellular® confidential information. Not for external use or disclosure without proper authorization.

Kellogg Innovation

Challenge April 2013

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Welcome!

• 1st U.S. Cellular®, Kellogg Innovation

Challenge

• Kellogg is the perfect place for an innovation

challenge

• University partnerships are essential for

corporate America to stay fresh

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U.S. Cellular® Overview

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U.S. Cellular® Overview

• 6th largest wireless carrier in the U.S.

• 5.8 million customers

• 26 states

• $4 billion in annual revenue

• Award-winning customer service and network

coverage

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Opportunities at U.S. Cellular® in Chicago

U.S. Cellular

Marketing

Finance

Accounting

Channel Strategy

Channel Operations

Supply Chain

Shared Analytical &

Data Services

Human Resources

Innovation

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Join our Talent Community

To join:

–Visit http://jobs.uscellular.jobs

–Enter your email address

–Create your profile and submit your job communication preferences

Benefits:

–Job seekers can apply immediately using their mobile device

–Real time updates on employment opportunities

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Driving Growth Through Innovation (GTI)

Why now?

• USCC has traditionally competed and outperformed competitors on customer

intimacy. Despite this, we have not been able to outgrow the market, and in the

absence of market growth, we need to innovate.

• As the industry moves to a mature stage, growth through innovation has become

one of our Strategic Imperatives. Whilst having the happiest customers in wireless,

we must find new future sources of growth.

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Innovations are novel creations that produce value.

Disruptive Core

• Developing “new to world”

business opportunities and

inventing things for

markets that don’t yet exist

• Create new offers, if not

whole new businesses to

serve new markets and

customer needs

• Requires that company call

on unfamiliar assets

We will maintain a well balanced portfolio by category of innovation while

leveraging different capabilities needed to drive each category.

Adjacent

• Expanding from existing

business into “new to

company” business

• Typically leads to order-of-

magnitude improvement in

sales, profit and customer

acceptance

• Leverages something the

company does well into a

new space

• Optimizing existing

products (e.g. better,

easier, cheaper) for

existing customers or

making inroads into new

markets

• More incremental in nature

• Draws on assets the

company already has in

place

0 to 24 months 12 to 36 months 36 months and beyond

LOW RISK HIGH

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The overall objective of GTI is to enable innovation and

identify new growth opportunities.

1. Create the organizational engine to drive innovation

• Develop a compelling new

experience for our target

customers that we can

uniquely deliver through new

capabilities and services

• Outline the resources and

capabilities needed to lead

sustained innovation

• Define the process, metrics

and tools by which these

resources will continue to

drive innovative thinking into

the whole organization

• Leverage and further

develop our partner network

These opportunities should align with and support our brand and enrich our customers’ lives

while strengthening our relationship by meaningfully differentiating USCC.

2. Build and Deliver a Pipeline of Innovation

• Develop offers, products or

services that will keep USCC

competitive by leveraging

existing or readily available

capabilities

• Conceptualize and launch

first wave of opportunities

New opportunity development

Core Adjacent Disruptive

Two broad efforts to enable Growth Through Innovation

Closer-In Further-Out

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Innovation Infrastructure

Diffused Focused Org. Ownership

Resource Authority

Dedicated

Ad Hoc

Innovation Model & Org Design

Capabilities, Training & Tools

Metrics (KPIs) & Processes

Innovation Partners

OEM Partners

Innovation

Partners

Venture

Capitalists

University

Partners

Currently implementing an expanded innovation team

that will produce core, adjacent and disruptive idea

generation, prioritization, and test and learn pilots

Partnered with ?What If! Innovation to build our idea

reservoir and our innovation mindset and capabilities

Partnering with Kellogg (Northwestern) and Ross

(University of Michigan) MBA programs on specific

innovation challenges

Forging international partnerships to develop satellite

innovation labs that will be in tune with the global telecom

start-up community

Exploring other partnerships with OEMs, chip makers.

and venture capitalists in Silicon Valley to stay abreast

of innovative start-ups and developments

Building internal capabilities by training 12 to 15 key

individuals in ideation techniques and innovation process

Setting the course, releasing the rally cry and developing

the supporting ecosystem needed for innovation to thrive

Developing pipeline management and portfolio processes

Instituting innovation measurement, KPIs and

dashboards

The Enabler The company provides funding and senior exec attention to prospective

projects

The Producer The company creates &

supports a full-service group with mandate for innovation

The Opportunist The company has no

deliberate approach to innovation. Corp networks

The Advocate The company strongly

evangelizes for innovation, but business units fund

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Innovation Challenge

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Challenge Overview

U.S. Cellular® is challenging teams of three full-time Kellogg students to

come up with innovative ideas for a chance to win a portion of the $6,300

prize money.

• 1st Place - $3,000

• 2nd Place - $2,100

• 3rd Place - $1,200

There are two rounds:

• Round 1: 2-page response to the challenge (one written page and one

depiction)

• Round 2: Top 5 teams from Round 1 will be selected as finalists and

invited to participate in Round 2 where they will present their idea.

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The Challenge

Family, friends and neighbors more and more use their cellphone's

camera to capture and share life’s moments. These exciting, fun and

special moments are often shared in real time in the form of pictures

and videos. U.S. Cellular® has identified insights that make this

growing and dynamic space a potential target for brand extension

opportunities or even offer to a broader national or international

customer base under a different brand.

As U.S. Cellular® looks to enter this space, we would like to

challenge you to come up with creative, high-potential, new

business ideas or new business models in this area, along with

the plan on how U.S. Cellular® could take your idea or model to

market.

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Round 1 Entry

Each team should provide the following via email to ideas@uscellular.com

1.A one-page submission that includes an overview of the idea,

recommended marketing strategy, target market size and penetration,

competitive landscape overview and a clear description of benefits to U.S.

Cellular® (financial or otherwise).

2.A one-page depiction of the idea with sketches, computer graphics,

pictures, etc.

3.Official entry form completed by all three team members

You are encouraged to be creative with your ideas and depictions!

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Round 1 Judging Criteria

1. Idea presented is innovative, creative, and unique

2. Idea can benefit U.S. Cellular® by either: a. increasing revenue b. decreasing costs c. improving the customer experience

3. Idea is applicable to U.S. Cellular® and its business

4. Idea is presented in a polished, professional, and concise matter.

Round 1 Judges: U.S. Cellular® Innovation Team

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Round 2

The top 5 teams from Round 1 will be invited to Round 2:

• Round 2 is a 15 minute presentation and 5 min Q&A

• Judges will include the U.S. Cellular® Innovation team,

leaders and Executives

You are encouraged to BE CREATIVE with your

presentations and can use PowerPoint, whiteboards,

flipcharts, props, etc.

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Round 2 Judging Criteria

1. Soundness of the business case

2. Uniqueness of the idea or business model

3. Business case is presented in a polished, professional, effective

and concise matter

Round 2 Judges: U.S. Cellular® CMO, Sr. Director of Innovation, Sr.

Director of The Product Group, Director of Innovation, Innovation

Manager(s), Kellogg Innovation Professors

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Rules Overview & Key Dates

Rules:

• 1Y or 2Y full-time students

• 3 students per team

• Each team can submit only one entry

• Each student can be on only one team

More detailed rules available at http://www.uscellularmedia.com/kellogg/

Key Dates:

• Kickoff (Today)

• Round 1 entry due by May 5th at 11:59:59 p.m. CT

• Finalist will be notified by May 15th

• Round 2 will be held on May 29th

• Winners announced immediately following Round 2 presentation

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Questions

Round 1 entry due by May 5th at 11:59:59 p.m. CT

Please email your first round submission to

ideas@uscellular.com

The entry form, official rules, challenge statement and Kickoff deck

can be downloaded from

http://www.uscellularmedia.com/kellogg/