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]

Financial Data and Key Metrics Changes - The company completed the sale of its 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] - Following the transaction, approximately $364 million remains on Array's balance sheet, with $1.7 billion in debt assumed by T-Mobile [12] - A special dividend of $23 per share was declared, with TDS receiving approximately $1.63 billion [13] - The company expects to achieve annual interest savings of about $80 million, reducing the average cost of debt to just over 6% [13][15] - S&P raised TDS' 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 consists of approximately 4,400 towers, with a new master license agreement (MLA) with T-Mobile expected to significantly increase revenue and profitability [6][26] - Third-party tower revenues increased by 12%, and the number of third-party colocations rose by 6% year-over-year [26] - Distributions from noncontrolling investment interests increased from $58 million to $77 million [29] Market Data and Key Metrics Changes - The company anticipates receiving $2 billion from previously announced spectrum sales, with a portion expected later this year [15] - The AT&T and Verizon transactions are expected to close in 2025 and 2026, respectively, subject to regulatory approval [21][22] Company Strategy and Development Direction - The company aims to focus on its tower and fiber businesses, believing it is well-positioned for growth in these areas [6][10] - Key strategic priorities include closing pending spectrum transactions and optimizing ground lease agreements [24] - The company plans to develop a capital allocation strategy focusing on fiber investments, M&A opportunities, and shareholder returns [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of colocations and margins due to increasing demand for data and communication services [6] - The company is optimistic about its future as an independent tower company, with a strong management team in place [19][24] - Management acknowledged the challenges of transitioning from a wireless service provider to an independent tower company, expecting wind-down costs to impact profitability in the near term [30] Other Important Information - The company is developing a regular dividend policy once spectrum transactions are completed [16] - The transition to an independent tower company is expected to enhance focus and operational efficiency [19][24] Q&A Session Summary Question: Update on TDS Telecom's fiber expansion - Management indicated that there is significant opportunity to expand the fiber footprint and will provide updates in upcoming quarters [54][55] Question: Long-term leverage stabilization for TDS Telecom - Management expects to maintain leverage under 1.5 times while evaluating opportunities for growth [56] Question: Access to construction resources for fiber expansion - Management remains confident in achieving the target of 150,000 new fiber service addresses for the year, with ramping construction efforts [59] Question: Cohort analysis for fiber penetration - Management is working on providing cohort penetration reporting and expects high presales penetration in new markets [63][66] Question: Update on mobile launch and pricing strategy - The company launched TDS Mobile in select markets and is testing various pricing strategies to optimize customer acquisition [85][86] Question: M&A opportunities - Management is beginning to consider M&A opportunities focused on fiber assets that synergize with existing properties [88]

Array Transaction and Debt - Array exchanged $17 billion of debt into T-Mobile debt[8] - TDS is expected to receive $16 billion from Array's special dividend[8] - Array is expected to have $700 million in debt[8] - The gross purchase price for the T-Mobile transaction was $44 billion[9] - A special dividend of $2300 per share, totaling $20 billion, was approved by Array's board[9] Spectrum Monetization - Agreements were reached to monetize approximately 70% of Array's total spectrum holdings, based on MHz-Pops, including the T-Mobile transaction[14] - AT&T's gross purchase price for spectrum is $1018 billion[12] - Verizon's gross purchase price for spectrum is $10 billion[12] Tower Business - Third-party tower revenue distribution shows AT&T contributing 34%, Verizon 27%, T-Mobile 25%, and other sources 14% in Q2 2025[22] - Total tower revenues increased by 7%, from $58 million in Q2 2024 to $62 million in Q2 2025[23] - Adjusted EBITDA for the Towers segment increased by 9%, from $31 million in Q2 2024 to $34 million in Q2 2025[23] TDS Telecom Fiber Expansion - TDS Telecom deployed 27000 new marketable fiber addresses in Q2 2025[24, 25] - The goal is to reach 18 million marketable fiber service addresses[26] - Fiber now serves 53% of service addresses[26]