Here are 1-3 brief analogies for Telephone and Data Systems:

• A regional wireless carrier, similar to a smaller Verizon or AT&T.
• A regional home internet and TV provider, similar to a smaller Comcast or Spectrum.

• Wireless Services: Provides wireless connectivity solutions to consumers, businesses, and government customers.
• IoT Solutions: Offers a suite of connected Internet of Things solutions for monitoring, automation, communication, and asset management.
• Wireless Devices & Accessories: Sells smartphones, tablets, IoT devices, and accessories like cases, chargers, and audio products.
• Device Support Services: Includes device repair, replacement, and a trade-in program for used equipment.
• Internet Services: Delivers internet connections and all-home Wi-Fi services.
• Video Services (TDS TV+): Provides an integrated cloud television platform offering video content.
• Telephone Services: Offers local, long-distance, and Voice over IP (VoIP) telephone services.
• Business Communication Services: Provides broadband, IP-based services, and hosted voice and video collaboration solutions for businesses.

Major Customers of Telephone and Data Systems (TDS)

Telephone and Data Systems (TDS) serves a diverse customer base, including individuals (consumers) and various organizations. Based on the provided company description, the major customer categories it serves are:

• Consumers: Individuals who subscribe to wireless solutions (e.g., smartphones, tablets, wearables, mobile hotspots), internet connections, all-home WI-FI services, TDS TV+, and local/long-distance telephone services.
• Business Customers: Companies that utilize wireless solutions, including IoT solutions, software applications for business automation, private cellular networks, broadband, IP-based services, and hosted voice and video collaboration services.
• Government Customers: Government entities that subscribe to wireless solutions and specialized services, including wireless priority services and quality priority/preemption options, similar to business customers.

Walter Carlson, President and Chief Executive Officer

Walter Carlson was appointed President and CEO of Telephone and Data Systems (TDS) effective February 1, 2025. He has been a member of the TDS board since 1981 and served as the non-executive chair from 2002 to 2025. Carlson also holds the position of executive chairman of Array Digital Infrastructure, a publicly traded subsidiary of TDS. Before his current role at TDS, Carlson had a distinguished legal career as an attorney at Sidley Austin LLP for over 44 years, with 37 years as a partner. During his tenure at Sidley Austin LLP, he held various leadership positions, including serving on its Executive Committee from 2002–2018 and heading its securities and shareholder litigation practice for many years. He is recognized as a nationally recognized securities litigator. Carlson earned his bachelor's degree from Yale University and his Juris Doctor from Harvard University Law School.

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., and also serves as the Executive Vice President and Chief Financial Officer of Array Digital Infrastructure, Inc., a TDS subsidiary. She previously served on the board of directors for UScellular. Villacrez has a long history with TDS, having joined the parent company in 1989 as an internal auditor, accumulating three decades of service. Throughout her career at TDS, she progressed through multiple finance leadership positions with increasing responsibility, including Vice President of Finance and CFO at TDS Telecom from 2012 to 2017, and Senior Vice President from 2017 to 2022. She holds a Bachelor of Science in accounting from Upper Iowa University and a Master of Business Administration from Edgewood University. Villacrez is a Certified Public Accountant (CPA) and was recognized as a finalist in the public company category of the Chicago CFO of the Year Awards in 2025.

LeRoy T. Carlson, Jr., Vice Chair

LeRoy T. Carlson, Jr. holds the position of Vice Chair of TDS, Inc. He is also a director at Array Digital Infrastructure, a TDS subsidiary, and serves as the chair and director of TDS Telecommunications LLC, TDS' wholly-owned wireline subsidiary. Carlson joined TDS in 1974 as a vice president, eventually being named president in 1981 and CEO in 1986, roles he held until January 2025 when he transitioned to Vice Chair. He is also the former board chair of UScellular. Carlson earned an MBA from Harvard Graduate School of Business and a BA from Harvard College. He is the son of TDS founder, LeRoy T. Carlson.

Ken S. Dixon, President and Chief Executive Officer, TDS Telecommunications LLC

Ken S. Dixon was appointed President and CEO of TDS Telecommunications LLC (TDS Telecom), a wholly-owned subsidiary of TDS, effective June 2025. He brings 34 years of telecommunications experience to this role. Dixon spent the majority of his career at Verizon Communications, Inc., where his final position was President of Consumer Markets, overseeing its $13 billion consumer business and executing its fiber network transformation strategy. More recently, Dixon served as CEO of Tillman FiberCo, LLC, a company involved in designing, building, and owning fiber optic broadband infrastructure. He also serves on the Board of Directors for Telephone and Data Systems, Inc., Array Digital Infrastructure, Inc., and the National Content & Technology Cooperative (NCTC). Dixon holds a Bachelor of Science from Syracuse University.

James W. Butman, Senior Advisor (formerly President and CEO, TDS Telecommunications LLC)

James W. Butman served as President and Chief Executive Officer of TDS Telecommunications LLC (TDS Telecom) until June 2025, and will continue as a Senior Advisor to TDS Telecom until July 1, 2025. He joined TDS Telecom in 1985 and held numerous leadership positions throughout his long tenure. His previous roles include Chief Operating Officer (2016–2018) and Group President of Marketing, Sales & Customer Operations (2006–2016). Butman also led TDS Metrocom, a competitive local exchange operation, which he helped grow into a $250 million business. He was elected to the TDS Board of Directors in 2018. Butman earned a Bachelor of Business Administration in Finance from the University of Wisconsin–Eau Claire and a Master of Business Administration in Finance from the University of Wisconsin–Madison.

1. Intense Competition and Capital Intensity in Broadband and Telecom Infrastructure

2. Financial Leverage and Access to Capital

3. Regulatory and Technological Changes

• The aggressive expansion and adoption of Fixed Wireless Access (FWA) services by major mobile carriers (e.g., T-Mobile, Verizon, AT&T) presents a clear emerging threat to TDS Telecom's traditional wireline and cable internet business. FWA offers a competitive alternative for broadband connectivity, potentially eroding TDS Telecom's market share in areas where it provides internet services.
• The continued proliferation and increasing market dominance of Over-The-Top (OTT) streaming services (e.g., Netflix, Disney+, Max, Hulu, YouTube TV) and the associated trend of cord-cutting pose a significant and ongoing threat to TDS Telecom's TDS TV+ platform and its ability to attract and retain video subscribers. Consumers are increasingly opting for internet-only subscriptions and curating their own streaming bundles, reducing reliance on traditional or cloud-based bundled television services.

Telephone and Data Systems (TDS) operates in various segments of the telecommunications market in the United States. The addressable market sizes for their main products and services are as follows:

• Overall U.S. Telecom Services Market: The U.S. telecom services market was estimated at USD 522.8 billion in 2025 and is projected to expand to USD 725.7 billion by 2030. Another report estimated the U.S. telecom services market size at USD 451.7 billion in 2025, with a forecast to reach USD 601.2 billion by 2030.
• U.S. Wireless Telecommunication Services: The USA wireless telecommunication services industry is projected to reach a market value of USD 450.2 billion in 2025, growing to USD 960.8 billion by 2035 at a CAGR of 7.9%. The U.S. wireless connectivity market reached USD 33.5 billion in 2024 and is expected to reach USD 118.0 billion by 2033.
• U.S. Internet of Things (IoT) Solutions Market: The U.S. internet of things market size was estimated at USD 413.22 billion in 2024 and is projected to grow at a CAGR of 7.6% from 2025 to 2030. Another source valued the U.S. IoT market at USD 169.0 billion in 2025.
• U.S. Smartphone Market: The U.S. smartphone market is poised to reach USD 137.5 billion by 2025, with a projected increase to USD 268.0 billion by 2034.
• U.S. Mobile Phone Accessories Market: The United States mobile phone accessories market was valued at approximately USD 31.20 billion in 2025 and is expected to reach USD 59.68 billion by 2035.
• U.S. Internet Services Providers (ISP) / Broadband Services Market: The market size of Internet Service Providers in the U.S. was USD 172.1 billion in 2025 and is projected to be USD 179.9 billion in 2026. The U.S. broadband services market is expected to grow from approximately USD 74 billion in 2024 to nearly USD 113.8 billion by 2030.
• U.S. Pay TV Market and Cloud TV Market: The U.S. Pay TV market was valued at USD 47.08 billion in 2025 and is expected to reach USD 49.62 billion by 2035. However, the U.S. pay TV market size is also expected to decline from USD 67.98 billion in 2025 to USD 57.83 billion by 2033. The global Cloud TV market was valued at USD 1.8 billion in 2025, with North America anticipated to grow rapidly at a CAGR of 9.8%.
• U.S. Voice over Internet Protocol (VoIP) Services Market: North America, a key region for VoIP services, is predicted to hold a share of approximately 47.4% of the global VoIP services market, which is valued at USD 160.8 billion in 2025. The U.S. VoIP industry is projected to grow to around USD 152 billion by 2034.

Telephone and Data Systems (TDS) is expected to drive future revenue growth over the next 2-3 years primarily through its accelerated fiber optic network expansion, the growth of its tower business, and the expansion of its broadband customer base with higher-speed service tiers.

1. Accelerated Fiber Optic Network Expansion and Penetration

TDS Telecom, a key segment of Telephone and Data Systems, is aggressively expanding its fiber optic network. The company is focused on building, scaling, and monetizing fiber infrastructure by deploying fiber in existing markets and expanding into new territories. This includes converting legacy copper networks to fiber and increasing the number of fiber service addresses. This fiber initiative is anticipated to drive revenue growth and expand the total wireline footprint. Furthermore, TDS Telecom is leveraging government subsidies, such as the FCC's Enhanced Alternative Connect America Cost Model (E-ACAM) program, to fund fiber builds in underserved rural areas, which accelerates the conversion of copper territories to fiber with limited competitive overlap.

2. Growth in the Tower Business (Array Digital Infrastructure)

Following the sale of UScellular's wireless operations and select spectrum assets to T-Mobile, TDS retains a significant interest in its tower business, now known as Array Digital Infrastructure. This segment is poised to be a substantial driver of recurring revenue and cash flow. The tower business is expected to grow through new colocations and amendment activity from other wireless carriers, leveraging its extensive portfolio of approximately 4,000 towers. These long-term master leases are anticipated to convert into inflation-linked, durable cash flows, enhancing capital efficiency and boosting revenue.

3. Expansion of Broadband Customer Base and Higher-Speed Tiers

A direct outcome of the fiber network expansion is the ability to attract new broadband customers and migrate existing ones to higher-speed, multi-gig plans. TDS Telecom aims to increase broadband penetration across its expanded fiber footprint. This strategy is expected to drive an increase in Average Revenue Per User (ARPU) as customers adopt faster and more robust internet services. The company has noted that its fiber initiative is "driving revenue growth" from broadband and video connections, and from the growth within the broadband product mix as customers take higher speeds.

Share Repurchases

• In November 2025, TDS's board authorized a new $500 million share repurchase program, additive to the existing authorization. As of the end of 2025, $524 million remained on this open authorization.
• In the fourth quarter of 2025, TDS invested $67 million to repurchase 1.8 million common shares, bringing the total 2025 repurchase volume to 2.8 million shares.
• During 2023, TDS repurchased 545,990 Common Shares for $6 million, and as of December 31, 2023, $132 million remained available under its share repurchase program.

Inbound Investments

• TDS Telecom is leveraging $1.3 billion in revenue over 15 years from the Federal Communications Commission's (FCC) Enhanced Alternative Connect America Cost Model (E-ACAM) to enhance rural broadband speeds.

Outbound Investments

• On August 1, 2025, TDS sold the wireless operations and select spectrum assets of its subsidiary Array Digital Infrastructure to T-Mobile for a total consideration of $4,293.8 million, including $2,628.8 million in cash and $1,665.0 million of debt assumed.
• Array closed a $1.018 billion wireless spectrum sale to AT&T in January 2026, resulting in a $726 million special dividend to TDS in February 2026.
• Array has additional signed spectrum sale agreements with Verizon, expected to generate $1 billion, and AT&T, with an expected aggregate proceeds of $178 million, both subject to regulatory approvals.

Capital Expenditures

• TDS's capital expenditures for the full year 2025 were $406 million.
• For 2026, capital expenditures are projected to be between $550 million and $600 million, with a primary focus on expanding fiber.
• TDS Telecom is heavily investing in fiber deployment, with a goal to deliver 200,000-250,000 new marketable fiber addresses in 2026, an increase from 140,000 in 2025, and has raised its long-term marketable fiber service address goal to 2.1 million.