TELEPHONE & DATA SYSTEMS Business Summary

Telephone & Data Systems Inc. (TDS) operates as a diversified telecommunications holding company, generating revenue primarily through monthly recurring subscriptions for high-speed fiber broadband, video, and voice services, alongside long-term, inflation-linked lease agreements for its wireless tower infrastructure. Following the 2025 divestiture of its UScellular wireless operations to T-Mobile, the company has pivoted into a focused infrastructure play through two primary segments: TDS Telecom, which targets underserved Tier-2 and Tier-3 markets with multi-gigabit fiber-to-the-home (FTTH) deployments, and Array Digital Infrastructure, a standalone tower platform managing over 4,000 sites. TDS competes directly with cable giants like Comcast (Xfinity) and Charter Communications (Spectrum) in the broadband space, and with SBA Communications and Crown Castle in the digital infrastructure sector, positioning itself as a high-growth regional fiber specialist with a robust, de-leveraged balance sheet. Founded in 1969 by LeRoy T. Carlson, the company remains under the strategic guidance of the Carlson family. The leadership team is currently led by Walter C. D. Carlson, who assumed the role of President and CEO in February 2025 after serving as Board Chair since 2002; he brings extensive legal and corporate governance expertise from his 44-year tenure at Sidley Austin LLP. He is supported by Vice Chair LeRoy T. Carlson, Jr., the former long-standing CEO, and Executive Vice President and CFO Vicki L. Villacrez, who also serves as CFO of Array Digital Infrastructure. Technical operations are overseen by Ken Paker, SVP and CTO of TDS Telecom, while Ken Dixon, a former Verizon executive, serves as President and CEO of the TDS Telecom subsidiary. The company maintains a strong institutional investor base, including major positions held by BlackRock, Vanguard, and activist firm Third Point LLC.