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A regional AT&T, offering both wireless and fixed-line internet services.

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• Wireless Telecommunications: Provides mobile voice, messaging, and data services to consumers and businesses via UScellular.
• Broadband Internet Services: Offers high-speed internet access, primarily through fiber optic and DSL, to residential and business customers via TDS Telecom.
• Wireline Voice Services: Delivers traditional landline telephone services, including local and long-distance calling, through TDS Telecom.
• Video Services: Provides television programming and on-demand content over its broadband network via TDS Telecom.
• Managed IT and Cloud Services: Offers outsourced IT infrastructure management, cloud computing solutions, and data center services through OneNeck IT Solutions.

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Telephone and Data Systems (TDS) primarily sells its services to individuals and households, although it also has significant business-to-business (B2B) operations through its TDS Telecom segment and OneNeck IT Solutions subsidiary.

Given its primary focus on individual customers, the major categories of customers TDS serves include:

• Mobile Consumers: These are individuals and families who subscribe to wireless voice, messaging, and data services. This customer base is predominantly served through TDS's majority-owned subsidiary, U.S. Cellular (NYSE: USM).

• Residential Broadband, Video, and Voice Subscribers: These are households and individuals in specific service areas (often rural and suburban communities) who subscribe to high-speed internet (broadband), television, and/or traditional landline phone services. These services are provided by TDS Telecom.

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Walter C. D. Carlson President and Chief Executive Officer

Walter C. D. Carlson was appointed President and CEO of Telephone and Data Systems (TDS) effective February 1, 2025. He has served on the TDS Board since 1981 and held the position of non-executive Chair from 2002 to 2025. Prior to his current role, Carlson had a 44-year career at Sidley Austin LLP, where he was a partner for 37 years and served on its Executive Committee from 2002 to 2018.

Vicki L. Villacrez Executive Vice President and Chief Financial Officer

Vicki L. Villacrez is the Executive Vice President and Chief Financial Officer for TDS, Inc., a role she has held since 2023. She possesses over thirty years of leadership experience within the telecommunications industry at the TDS enterprise, having joined the parent company in 1989 as an internal auditor. Villacrez has held various finance leadership positions with increasing responsibility, including Senior Vice President of Finance and CFO for TDS Telecom from 2017 to February 2022, and Vice President of Finance and CFO for TDS Telecom since 2012. Before joining TDS, she held finance positions with Verex Corporation, a subsidiary of The Greyhound Corporation.

James W. Butman President and Chief Executive Officer, TDS Telecom

James W. Butman joined TDS Telecom in 1985 and was appointed President and CEO in 2018. During his extensive tenure, he has held numerous leadership positions, including Chief Operating Officer and Group President of Marketing, Sales & Customer Operations for TDS Telecom. He also served as president of USLink, TDS Telecom's long-distance operation, and as president of TDS Metrocom, which grew into a $250 million business under his leadership.

Douglas W. Chambers Interim President and Chief Executive Officer, Array Digital Infrastructure

Douglas W. Chambers will serve as interim President and Chief Executive Officer of Array Digital Infrastructure, a TDS subsidiary, effective upon the closing of the sale of UScellular's wireless operations (expected August 1, 2025). Prior to this, he served as Executive Vice President, Chief Financial Officer, and Treasurer for UScellular for six years. Chambers has been with the TDS family of companies for over 17 years, having joined in 2007. Before his time at TDS, he held management positions at Midway Games and PricewaterhouseCoopers.

Anita J. Kroll Controller; Chief Accounting Officer; Vice President

Anita J. Kroll is the Controller, Chief Accounting Officer, and Vice President of TDS, positions she has held since 2019. She joined TDS in 2011, initially serving as Director of accounting and reporting. Before joining TDS, Kroll was the Vice President of Finance for Spring Windows Fashions and Senior Vice President of accounting for Clear Channel Outdoor.

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1. Intense Competition and Rapid Technological Advancements: TDS operates in a telecommunications market characterized by fierce competition and continuous technological evolution. Advances in technology can alter the demand for tower space by wireless companies and enable high-speed wireless networks, which, while an opportunity for TDS's wireless segment, pose a significant risk to its wireline and cable businesses as customers may switch to wireless broadband alternatives. Additionally, the emergence of fixed-mobile bundled services presents a competitive threat. TDS also faces the challenge of a lack of scale when compared to larger competitors, which could hinder its ability to achieve sustainable, profitable growth. The company must invest heavily in new technologies, such as fiber deployment, but these investments are capital-intensive and carry the risk that unproven technologies may not yield the anticipated benefits.
2. High Debt Load and Capital Intensity: TDS carries a significant debt load, with net debt reported at US$3.03 billion as of March 2022. Concerns have been raised regarding its low interest coverage ratio, which indicates that the cost of borrowing is negatively affecting shareholder returns. The company has also experienced substantial cash burn in recent years, making its reliance on debt riskier. This financial leverage could impact TDS's ability to fund essential capital expenditures for network construction, quality improvements, and the expansion of its fiber infrastructure, which are crucial for maintaining competitiveness and supporting increased demand for data services. The ability to manage indebtedness and comply with debt covenants is a continuous challenge.
3. Regulatory and Spectrum Challenges: A critical risk for TDS is its ability to secure and maintain access to adequate radio spectrum capacity. Sufficient spectrum is essential for meeting current and future demand for data services and for deploying next-generation technologies. Any failure to obtain necessary spectrum, whether through FCC auctions or other transactions, could adversely affect its wireless business. Furthermore, changes in the state and federal regulatory environment, including modifications to regulatory support or the ability to pass through certain regulatory fees to customers, can significantly impact TDS's operational costs and profitability.

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• Aggressive expansion of Fixed Wireless Access (FWA) services by national carriers (T-Mobile, Verizon) directly challenging both UScellular's wireless internet offerings and TDS Telecom's wireline internet services in its core rural and suburban markets.
• Growing adoption and improving capabilities of Low Earth Orbit (LEO) satellite internet services (e.g., Starlink) providing a viable high-speed internet alternative in rural and underserved areas, directly competing with TDS Telecom's fiber expansion efforts and UScellular's service footprint.

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Telephone and Data Systems (TDS) provides a range of telecommunications services through its subsidiaries, UScellular and TDS Telecom, as well as tower leasing through Array Digital Infrastructure. The addressable markets for their main products and services in the U.S. are as follows:

• Wireless Services (UScellular): The U.S. 5G Fixed Wireless Access (FWA) market, which leverages cellular networks to deliver high-speed internet, was valued at USD 12,052.98 million in 2024 and is projected to reach USD 135,361.56 million by 2032, growing at a CAGR of 35.23% from 2026 to 2032. Another estimate places the U.S. 5G FWA market size at USD 16.35 billion in 2025, projected to be approximately USD 343.18 billion by 2034, with a CAGR of 40.22% from 2025 to 2034.
• Broadband Services (TDS Telecom - Fiber, Cable, Fixed Wireless): The overall USA Internet Service Providers (ISP) Market was valued at approximately USD 139.8 billion in 2023. The U.S. broadband space generated $111.73 billion in total revenue in 2022. The global broadband services market size was valued at USD 497.47 billion in 2024 and is projected to grow to USD 1062.73 billion by 2033, with a CAGR of 8.8% during the forecast period (2025-2033).
  • Fiber Optics: The U.S. fiber-optic cable market was valued at USD 2.9 billion in 2024 and is expected to grow to USD 5.3 billion in 2032, at a CAGR of 8.3% during 2025–2032. Other data indicates the U.S. fiber optics market reached USD 3.1 billion in 2024 and is expected to reach USD 7.8 billion by 2033, exhibiting a CAGR of 10.8% from 2025-2033.
• TV and Voice Services (TDS Telecom):
  • Cable TV: The U.S. broadcasting and cable TV market generated a revenue of USD 125,327.9 million in 2024 and is expected to reach USD 142,630.4 million by 2030, with a CAGR of 2.2% from 2025 to 2030. Another source states the U.S. Broadcasting and Cable TV Market size was valued at over USD 127.53 billion in 2025 and is poised to surpass USD 155.46 billion by 2035, growing at a 2% CAGR during 2026-2035.
  • Pay TV: The United States pay TV market size was valued at USD 69,366.56 million in 2024 and is expected to decline to USD 57,834.21 million by 2033, growing at a CAGR of -2.0% during the forecast period (2025-2033).
  • Specific market size for "voice services" alone is often integrated into broader telecommunications or broadband market analyses and is not distinctly segmented in the provided data.
• Hosted and Managed Services (TDS Telecom): The U.S. managed services market size was valued at USD 69.9 billion in 2024. It is projected to reach USD 171.7 billion by 2033, exhibiting a CAGR of 10.5% from 2025-2033. Another report indicates the U.S. managed services market generated USD 88,129.3 million in 2024 and is expected to reach USD 183,465.0 million by 2030, with a CAGR of 13.3% from 2025 to 2030.
• Telecom Tower Leasing (Array Digital Infrastructure): The U.S. Telecom Towers Market was valued at USD 40 billion in 2024 and is projected to reach USD 54.43 billion by 2032, growing at a CAGR of 6% from 2026 to 2032. Another source values the United States Telecom Towers Market at approximately USD 40–44 billion, based on a five-year historical analysis. The Cell Site Operation and Leasing industry in the United States is forecast to have grown at a CAGR of 3.5% to $61.6 billion, boosted by a 4.1% surge in 2025.

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Here are 3-5 expected drivers of future revenue growth for Telephone and Data Systems (TDS) over the next 2-3 years:

1. Fiber Expansion and Penetration: TDS Telecom is aggressively expanding its fiber optic network. The company aims to increase its marketable fiber service addresses to 1.8 million, a 50% increase from its previous goal, and intends for 80% of its total addresses to be served by fiber, up from 52% at the end of 2024. In 2025, TDS Telecom plans to deliver approximately 150,000 new marketable fiber service addresses and focus on growing broadband net additions and revenues within these fiber footprints. By Q3 2025, TDS Telecom reached a milestone of 1 million fiber addresses.
2. Growth in Fixed Wireless Access (FWA): UScellular, a subsidiary of TDS, is experiencing significant growth in its Fixed Wireless Access offerings. The company saw its fixed wireless customers increase by 46% to 114,000 by year-end 2023 and further grew to 140,000 in Q3 2024. By February 2025, UScellular surpassed 150,000 Home and Business Internet customers and expects to cover over 3 million households with 5G mid-band in 2025, enabling faster and more reliable internet services. Management projects the total market opportunity for this business to be around 400,000 subscribers.
3. Increased Tower Leasing Revenue: TDS's tower leasing business, now operating as Array Digital Infrastructure, is positioned for growth. UScellular's tower rental revenues grew 8% to $100 million in 2023, and the company is actively seeking third-party colocations on its towers. The transition of Array Digital Infrastructure into a standalone tower company is aimed at capitalizing on infrastructure growth. Additionally, the sale of wireless operations to T-Mobile has already resulted in a 68% increase in site rental revenues. The anticipated closure of a spectrum transaction with AT&T in late 2025 or early 2026 could further enhance TDS's market position.
4. Average Revenue Per User (ARPU) and Price Increases: Both TDS Telecom and UScellular have shown an ability to increase Average Revenue Per User (ARPU) through price adjustments and customer uptake of higher-tier plans. TDS Telecom's average residential revenue per connection increased, primarily due to price increases. UScellular also reported a 2% growth in postpaid ARPU in 2023 and Q3 2024. This indicates a strategy to drive revenue growth by optimizing pricing and encouraging customers to adopt more premium services.
5. Launch and Expansion of TDS Mobile: TDS Telecom launched its MVNO product, TDS Mobile, in limited markets in 2024 and plans for a full rollout across its footprint in 2025. This new mobile service offers an additional revenue stream and can further integrate with existing broadband offerings, potentially enhancing customer loyalty and expanding the company's service portfolio.

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Share Repurchases

• Telephone and Data Systems (TDS) authorized a new $500 million share repurchase program, which is additive to existing authorizations.
• TDS repurchased 1,077,564 shares for $40.7 million during the third quarter of 2025.

Inbound Investments

• Array (formerly UScellular), a subsidiary of TDS, completed the sale of its wireless operations and select spectrum assets to T-Mobile for a total consideration of $4.3 billion in August 2025.
• This transaction resulted in a $1.6 billion special dividend received by TDS from Array in August 2025.
• Array anticipates additional gross proceeds of $2.0 billion from pending spectrum sales to AT&T and Verizon.

Capital Expenditures

• TDS Telecom's capital expenditures for 2025 are projected to be between $375 million and $425 million.
• Over 80% of the 2025 capital expenditures are focused on fiber expansion.
• TDS Telecom aims to deliver 150,000 fiber service addresses in 2025, increasing from 129,000 in 2024, with a long-term goal of 1.8 million marketable fiber service addresses.