Financial Data and Key Metrics Changes - Total operating revenues decreased by 3% year-over-year, with a 1% decline when excluding divestitures, driven by declines in legacy cable and copper markets, partially offset by fiber growth [31] - Adjusted EBITDA also fell by 3% year-over-year, impacted by divestitures and legacy revenue declines, but supported by disciplined cost control [31] - Capital expenditures increased compared to the previous year due to spending on the EACAM program and higher expansion address delivery, with over 80% of 2025 capital expenditures focused on fiber [31][32] Business Line Data and Key Metrics Changes - TDS Telecom achieved a milestone of 1 million fiber addresses, with 42,000 fiber addresses delivered in the quarter, contributing to a 19% growth in residential fiber connections year-over-year [15][23] - Residential fiber net additions were 11,200 in the quarter, reflecting an 8% year-over-year increase [30] - The company is behind schedule on its annual address delivery target but expects the fourth quarter to be the strongest [29] Market Data and Key Metrics Changes - The fiber business is expected to grow significantly, with a target of 1.8 million marketable fiber service addresses, up from approximately 900,000 [28][84] - The company anticipates achieving gig speeds for at least 95% of its footprint, with 76% currently at gig speeds [28] Company Strategy and Development Direction - The company is focused on capital allocation decisions, prioritizing investments in fiber, achieving inorganic growth through M&A, and returning capital to shareholders [17][20] - The EACAM program aims to replace legacy copper infrastructure, adding approximately 300,000 new fiber addresses and providing $1.2 billion in regulatory revenue support over 15 years [24][25] - The company plans to pursue edge-out opportunities in adjacent communities without fiber providers, with several hundred thousand potential service addresses identified [18][57] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fiber business's growth potential and the successful transition to an independent tower company [14][33] - The company is focused on optimizing tower operations and monetizing spectrum, with significant progress made in spectrum monetization [36][38] - Management acknowledged the challenges of transforming the business but emphasized the strong culture and commitment of associates [16] Other Important Information - A $500 million share repurchase program was announced, reflecting the board's confidence in the company's long-term strategy [20][60] - The company expects to declare a special dividend of approximately $10 per share following the closing of the AT&T transaction [18] Q&A Session Summary Question: Update on fiber plan and cohort analysis - Management acknowledged the request for cohort analysis and plans to provide updates in February regarding fiber opportunities and market performance [54][56] Question: Stock buyback program significance - The board's authorization of the buyback program reflects confidence in the company's strategy and is seen as a balanced approach alongside business investments [60] Question: SG&A expenses and wind down costs - Management indicated that SG&A costs are expected to remain high through the first half of next year, with ongoing efforts to rationalize expenses [64][65] Question: Naked tower strategy and land leases - The strategy involves leasing up towers and rationalizing ground rents, with minimal long-term commitments on land leases [75][78] Question: Leverage target and fiber passings impact - The leverage target is set to maximize flexibility, with current leverage at 1.4 times, and future updates on fiber goals will be provided in February [82][84] Question: M&A strategy and edge-out opportunities - Current focus is on operational execution rather than M&A, with potential future opportunities being evaluated [107]

Financial Data and Key Metrics Changes - The company completed the sale of U.S. Cellular wireless business and certain spectrum assets to T-Mobile for $4.3 billion, which strengthens the balance sheets of both Array and TDS [5][12] - TDS's debt was reduced to approximately $364 million post-transaction, with $1.7 billion in debt assumed by T-Mobile [12] - A special dividend of $23 per share was declared, with TDS expected to receive approximately $1.63 billion [13] - The average cost of debt for TDS is projected to decrease to just over 6% after redeeming $1.1 billion in debt [13] - S&P raised TDS's credit rating to BBB- from BB, reflecting a strong balance sheet and growth outlook [18] Business Line Data and Key Metrics Changes - Array's tower business has approximately 4,400 towers and is expected to grow colocations and margins due to increasing demand for data services [6][8] - Third-party tower revenues increased by 12%, and the number of third-party colocations rose by 6% year-over-year [26] - Fiber service addresses grew by 19% year-over-year, with 10,300 net additions in the quarter [35][41] - Total operating revenues decreased by 1% year-over-year, but excluding divestitures, revenue increased by 1% [43] Market Data and Key Metrics Changes - The company is focusing on expanding its fiber footprint, targeting 1.8 million marketable fiber service addresses, with 968,000 addresses at the end of the quarter [36] - The company aims for 80% of total addresses to be served by fiber, currently at 53% [37] - Demand for higher broadband speeds is increasing, with 83% of residential broadband customers taking 100 meg or higher [41] Company Strategy and Development Direction - The company is focusing on its tower and fiber businesses, with plans to optimize ground leases and drive revenue growth through new colocations [24][26] - A capital allocation strategy is being developed, focusing on fiber investments, M&A opportunities, and shareholder returns [16][17] - The company aims to maintain a conservative balance sheet while pursuing growth opportunities in fiber and tower businesses [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the target of 150,000 new fiber addresses for the year, with significant growth expected in the second half [34][59] - The company is optimistic about the competitive landscape in its expansion markets, which were selected for their favorable characteristics [77] - Management acknowledged the challenges of transitioning from a wireless service provider to an independent tower company, with expected wind-down costs impacting profitability in the near term [30] Other Important Information - The company is working to monetize remaining spectrum assets, with agreements to monetize approximately 70% of Array's total spectrum holdings [21] - The new master license agreement with T-Mobile is expected to significantly strengthen the tower business, with commitments for colocations [26] Q&A Session Summary Question: Update on TDS Telecom's fiber expansion - Management is excited about the opportunities for fiber expansion and expects to share more details in upcoming quarters [54] Question: Long-term leverage stabilization for TDS Telecom - TDS Telecom is expected to maintain leverage below 1.5 times while evaluating opportunities [56] Question: Access to construction resources for fiber expansion - Management is confident in meeting the 150,000 service address goal, with ramping construction efforts [59] Question: Cohort analysis for fiber penetration - Management plans to share cohort analysis soon, expecting 25-30% penetration by month 12 in new markets [63] Question: Update on mobile launch and pricing strategy - TDS Mobile was launched in select markets, with aggressive pricing strategies being tested [86][88] Question: M&A opportunities focus - The company is considering fiber opportunities that synergize with existing properties [89]