Telephone And Data Systems

TDS helps people stay connected at home and work. It provides internet, phone, and television across the country. These services help rural communities access the digital world.

Connecting Homes and Cell Towers

• TDS Telecom: Provides broadband, video, and phone services to residential and commercial customers; accounts for about 81% of total operating revenue.
• Array Digital Infrastructure: Leases space on 4,452 company-owned towers to wireless carriers and other businesses; represents roughly 17% of total operating revenue.
• Broadband Internet: Offers high-speed data connections to 561,900 residential customers using fiber, cable, and copper technologies.
• Video Services: Delivers television content through traditional cable and IPTV, which is a system that sends video over internet networks.
• Voice and Wireless: Supplies traditional telephone lines and mobile phone plans to over one million total connections.

Moving Toward a New Future

• Sold its wireless operations and select spectrum assets to T-Mobile on August 1, 2025, for total consideration of $4.3 billion.
• Closed the sale of certain wireless spectrum licenses to AT&T in January 2026 for $1 billion in total proceeds.
• Entered into agreements to sell additional wireless spectrum to Verizon and T-Mobile with expected closing dates in 2026.
• Proposed a non-binding offer on May 7, 2026, to acquire all outstanding shares of Array that the company does not already own.
• Expanded its fiber network to reach 1.9 million service addresses as of March 31, 2026, an increase of 5% from the previous year.

Fiber Networks and Leasing Strength

TDS focuses on rural and underserved markets where it can provide high-speed fiber internet and value-added bundles to residential customers. The company also generates steady income by leasing space on its owned tower infrastructure to major national wireless carriers.

Key Metrics and Gains

• Total operating revenue from continuing operations was $309.5 million in the first quarter of 2026, up 7% from $290.4 million in the same period of 2025.
• Net income attributable to common shareholders reached $127.3 million in the first quarter of 2026, improved from a loss of $9.8 million in the first quarter of 2025.
• Free cash flow for continuing operations was negative $81.1 million in the first quarter of 2026, an improvement from negative $107.7 million in the first quarter of 2025.
• The company held $1.37 billion in cash and cash equivalents as of March 31, 2026, following the sale of spectrum assets to AT&T.
• Operating income for the first quarter of 2026 hit $143.8 million, primarily driven by a $150.9 million gain recorded on the sale of spectrum licenses.

The Bottom Line

TDS is transforming its business by selling its wireless operations to focus on fiber-to-the-home expansion and tower infrastructure leasing. This strategic pivot aims to simplify its organization while prioritizing high-speed broadband growth in rural American communities.