Core Viewpoint - TDS has reached a definitive agreement to sell UScellular's wireless operations and approximately 30% of its spectrum assets to T-Mobile for $4.4 billion, which includes cash and assumed debt, aiming to enhance service and shareholder value while positioning UScellular for future growth [1][2]. Transaction Details - The sale includes UScellular's wireless operations and select spectrum assets for a total of $4.4 billion, with T-Mobile expected to become a long-term tenant on at least 2,015 additional towers owned by UScellular [2][4]. - UScellular retains approximately 70% of its total spectrum assets, which provides opportunities for future monetization [2]. - The transaction is anticipated to close in mid-2025, pending regulatory approvals and customary closing conditions [4]. Financial Implications - TDS will receive proceeds from the sale in proportion to its ownership of UScellular, which may be used for fiber expansion, reducing leverage, and potentially returning capital to shareholders [3]. - TDS has declared dividends for the second quarter of 2024 at approximately 20% of the previous level for its Common Shares and Series A shares, allowing for additional capital allocation towards growth initiatives [8]. Strategic Focus - TDS remains committed to expanding its fiber footprint and improving profitability, particularly in small and mid-sized suburban and rural communities across the United States [4]. - The transaction is seen as a strategic move to integrate UScellular's operations with T-Mobile to achieve necessary scale and investment for continued customer service delivery [2].

Telephone and Data Systems, Inc. (NYSE:TDS) Q1 2024 Earnings Conference Call May 3, 2024 10:00 AM ET Company Participants Colleen Thompson - Vice President, Corporate Relations Vicki Villacrez - Executive Vice President & Chief Financial Officer LT Therivel - President & Chief Executive Officer, UScellular Doug Chambers - Executive Vice President, Chief Financial Officer & Treasurer Michelle Brukwicki - Senior Vice President of Finance & Chief Financial Officer, TDS Telecom Conference Call Participants Ric ...

Safe Harbor Statement Under the Private Securities Litigation Corporate Update • Improved profitability 3 • Fixed wireless connections grew 42% • Continued mid-band deployment Gross Additions (in thousands) 87 96 106 114 124 1Q'23 2Q'23 3Q'23 4Q'23 1Q'24 Churn 1.06% 1.01% 1.11% 1.22% 1.03% 1.27%1.21% 1.30% 1.44% 1.22% Handsets Total Postpaid Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Net Additions (in thousands) scellula *uscellular. All information set forth in this presentation about Telephone and Data Systems, Inc., ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14157 TELEPHONE AND DATA SYSTEMS, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of in ...

Financial Performance - TDS reported total operating revenues of $1,262 million for Q1 2024, a decrease of 3.2% from $1,303 million in Q1 2023[3] - Net income attributable to TDS common shareholders was $12 million, compared to a net loss of $(9) million in the same period last year, resulting in diluted earnings per share of $0.10[3] - Net income attributable to TDS shareholders increased to $29 million in Q1 2024, compared to $8 million in Q1 2023[29] - Net income for the three months ended March 31, 2024, increased to $38 million, compared to $12 million in the same period of 2023, representing a 216.67% increase[32] - Total operating revenues for the three months ended March 31, 2024, were $266 million, up 5% from $253 million in the same period of 2023[40] - Free cash flow for TDS consolidated was $(20) million for the three months ended March 31, 2024, an improvement from $(293) million in the same period of 2023[42] - Cash flows from operating activities for TDS consolidated increased to $224 million in Q1 2024, compared to $46 million in Q1 2023[42] - The overall financial performance indicates strong growth and improved profitability metrics year-over-year[45] Revenue and Growth Metrics - UScellular's service revenues decreased by 2%, while postpaid ARPU grew by 3%[8] - Operating revenues for TDS Telecom grew by 5%, with residential revenues increasing by 10% year-over-year[8] - Total operating revenues for UScellular decreased by 4% to $950 million in Q1 2024 compared to $986 million in Q1 2023[29] - TDS Telecom's operating revenues increased by 5% to $266 million in Q1 2024, compared to $253 million in Q1 2023[29] - The company reported a 71% increase in expansion residential revenues, rising to $26 million in Q1 2024 from $15 million in Q1 2023[40] Customer Metrics - UScellular reported a total of 4,051,000 postpaid connections at the end of Q1 2024, a decrease of 1.3% from 4,106,000 in Q4 2023[22] - The average revenue per user (ARPU) for postpaid increased to $51.96 in Q1 2024, up from $51.61 in Q4 2023, reflecting a growth of 0.68%[22] - Total residential broadband connections increased by 8,100 during Q1 2024, reaching 547,900[26] - The churn rate for postpaid connections improved to 1.22% in Q1 2024, down from 1.44% in Q4 2023[22] - UScellular's postpaid churn rate was reduced by 4%, and fixed wireless customers increased by 42% to 124,000[8] Capital Expenditures and Investments - Adjusted EBITDA for UScellular is estimated to be between $920 million and $1,020 million for 2024, with capital expenditures projected at $550 million to $650 million[11] - TDS Telecom deployed an additional 28,000 marketable fiber service addresses in Q1 2024 and is on track to deliver 125,000 new addresses by the end of 2024[8] - Long-term debt, net, increased to $4,164 million as of March 31, 2024, compared to $4,080 million as of December 31, 2023[36] - Capital expenditures for UScellular were $131 million in Q1 2024, a decrease from $148 million in Q4 2023[22] Operational Improvements - Operating income for TDS Telecom for the three months ended March 31, 2024, was $27 million, compared to $8 million in the same period of 2023, indicating significant operational improvement[40] - Adjusted EBITDA (Non-GAAP) rose to $95 million in Q1 2024, up from $69 million in Q1 2023, reflecting a 37.68% increase[45] - Operating income (GAAP) improved to $27 million in Q1 2024 compared to $8 million in Q1 2023, marking a 237.5% increase[45] - The company reported an adjusted OIBDA (Non-GAAP) of $93 million in Q1 2024, up from $68 million in Q1 2023, a growth of 36.76%[45] Strategic Initiatives - TDS is actively exploring strategic alternatives for UScellular, with the review process ongoing[8]

*uscellular. 2This presentation contains certain non-GAAP financial measures. Information about these non-GAAP financial measures and reconciliations between each non-GAAP financial measure and the most directly comparable GAAP measure are contained in the appendix to this presentation. Supporting our business units as they make key investments *uscellular. Cost optimization program remains strong; Adjusted EBITDA grew 3% Network modernization completed; focusing on multi-year mid-band deployment going forw ...

Telephone and Data Systems, Inc. (NYSE:TDS) Q4 2023 Earnings Conference Call February 16, 2024 10:00 AM ET Company Participants Colleen Thompson - VP, Corporate Relations Vicki Villacrez - EVP & CFO Laurent Therivel - President, CEO & Director Douglas Chambers - EVP, CFO and Treasurer Michelle Brukwicki - CFO, TDS Telecommunications LLC Conference Call Participants Richard Prentiss - Raymond James Simon Flannery - Morgan Stanley Michael Rollins - Citigroup Sergey Dluzhevskiy - GAMCO Investors Operator Good ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-14157 TELEPHONE AND DATA SYSTEMS, INC. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - Total operating revenues for the third quarter decreased by 11% due to lower equipment sales and service revenue, which declined by 2% [31][3][19] - Adjusted operating income increased by 35%, while adjusted EBITDA rose by 28% [7][19] - Free cash flow was reported at $237 million for the nine months ended September 30, 2023, with expectations for positive free cash flow for the full year [8][19] Business Line Data and Key Metrics Changes - Postpaid ARPU increased by 2%, with 46% of postpaid handset customers now on higher-tier plans, up from 38% a year ago [1][17] - Fixed wireless revenues grew by 35%, with a customer base of 106,000, primarily utilizing low-band spectrum [24] - Tower business revenue grew by 8%, with a tenancy ratio of 1.54, up from 1.46 two years ago [2][23] Market Data and Key Metrics Changes - Inbound roaming revenue declined by 53%, largely offset by a corresponding decrease in outbound roaming expenses [31][32] - The competitive landscape has intensified, with cable companies now competing in 60% of the company's footprint, impacting ARPU and margins [20][21][81] Company Strategy and Development Direction - The company aims to balance subscriber growth with financial discipline, focusing on cost efficiencies and targeted promotional spending [58][19] - A multi-year strategy is in place for fiber expansion, with a goal of reaching 1.2 million marketable fiber service addresses by 2026 [138] - The company plans to slow capital expenditures in 2024 while prioritizing spending to enhance broadband penetration and revenues [15][102] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term growth potential in the tower business, despite near-term slowdowns due to reduced capital expenditures in the wireless industry [23][111] - The competitive environment is described as fiercely competitive, with significant pressure from cable companies affecting pricing and promotional strategies [20][21] - Management remains focused on improving customer trajectory and addressing churn dynamics as a key opportunity for growth [58][86] Other Important Information - The company expects to realize annual run-rate savings of approximately $30 million related to the shutdown of the CDMA network starting in 2025 [4][27] - The E-ACAM program is anticipated to provide $1.3 billion in revenue support over the next 15 years, aiding in the delivery of higher-speed broadband [137] Q&A Session Summary Question: What is the impact of T-Mobile and Sprint churn on tower leasing revenue? - Management believes they are through most of the churn related to the T-Mobile and Sprint merger, with minimal additional terminations expected [46] Question: Can you provide insights on the fixed wireless addressable market? - Management indicated that the addressable market for fixed wireless is significant, with ongoing efforts to expand coverage and improve service offerings [69] Question: What is the strategy for the tower business moving forward? - The company plans to support increased demand through a denser grid, which is expected to benefit the tower business in the long run [110] Question: How is the company addressing competitive pressures in the ILEC markets? - The company is focusing on fiber builds and leveraging the E-ACAM program to defend against competition in ILEC markets [144] Question: What are the expectations for capital expenditures in the coming year? - Management expects capital expenditures to be lower in 2024 compared to 2022 and 2023, prioritizing spending based on market dynamics [102][124]

UScellular Key Highlights - UScellular is deploying 5G mid-band spectrum[4] - Postpaid ARPU grew 2%[6] - UScellular announced a strategic alternatives review on August 4, 2023[14] - UScellular's Q3 2023 service revenues were $762 million, a decrease of 2% year-over-year compared to $781 million in Q3 2022[48] - UScellular's equipment sales for Q3 2023 were $201 million, a decrease of 33% year-over-year compared to $302 million in Q3 2022[48] - UScellular's total operating revenues for Q3 2023 were $963 million, an 11% decrease year-over-year compared to $1083 million in Q3 2022[48] - UScellular's adjusted OIBDA for Q3 2023 was $220 million, a 35% increase compared to $163 million in Q3 2022[48] - UScellular's adjusted EBITDA for Q3 2023 was $263 million, a 28% increase compared to $205 million in Q3 2022[48] TDS Telecom Key Highlights - TDS Telecom is growing its fiber footprint[93] - TDS Telecom's total operating revenues remained flat at $256 million in Q3 2023 compared to Q3 2022[77] - TDS Telecom's adjusted EBITDA increased by 3% to $68 million in Q3 2023 from $66 million in Q3 2022[77]