Welcome to our dedicated page for Telephone and Data Systems news (Ticker: TDS), a resource for investors and traders seeking the latest updates and insights on Telephone and Data Systems stock.
Telephone and Data Systems Inc. (TDS), listed on the NYSE under the symbol TDS, is a Fortune 1000® company that provides a broad range of telecommunications services. The company's segments include UScellular, TDS Telecom, and OneNeck IT Solutions. Headquartered in Chicago, IL, TDS was founded in 1969 and employs approximately 8,600 associates as of March 31, 2024.
TDS operates through several key businesses:
- UScellular: This segment offers comprehensive wireless services and products to around 5 million customers nationwide. With a strong emphasis on customer support, UScellular ensures a high-quality network experience.
- TDS Telecommunications Corp.: Based in Madison, WI, this subsidiary provides high-speed internet, TV entertainment, and phone services to residential and business customers in rural, suburban, and metropolitan communities. TDS Telecom has also been aggressively expanding its fiber network, aiming to deliver faster internet speeds up to 8 Gigabits.
- OneNeck IT Solutions: Specializing in hybrid IT solutions, OneNeck offers cloud hosting, managed services, and advanced IT services through data centers located across several states, including Arizona, Colorado, Iowa, Minnesota, Oregon, and Wisconsin.
TDS is committed to continuous improvement and innovation, as evidenced by its recent achievements. The company has reported strong growth in its fiber broadband connections, having surpassed 100,000 residential broadband connections in its expansion markets. TDS Telecom plans to extend its fiber service to 1.2 million marketable addresses and aims to offer 1 Gig or higher speeds to at least 80% of its footprint.
In 2024, TDS announced several significant developments. These include a decision to explore strategic alternatives for UScellular, resulting in an agreement to sell its wireless operations and a portion of its spectrum assets to T-Mobile for $4.4 billion. The transaction is expected to close by mid-2025, pending regulatory approval. Additionally, TDS has entered an agreement to sell its OneNeck IT Solutions business to US Signal Company, LLC, with the proceeds earmarked to support the company’s fiber expansion initiatives.
Financially, TDS has shown resilience and adaptability, reporting total operating revenues of $1,262 million for the first quarter of 2024. The company continues to strategically manage its capital, including a recent $375 million unsecured debt financing to further support its fiber build-out program.
Overall, TDS aims to maintain its trajectory of growth and innovation, ensuring excellent service and connectivity for its customers across the United States.
TDS reported Q2 2024 results with total operating revenues of $1,238 million, down from $1,267 million in Q2 2023. Net loss attributable to TDS common shareholders improved to $(14) million from $(19) million year-over-year. Key highlights include:
- UScellular announced sale of wireless operations and select spectrum assets to T-Mobile
- UScellular's postpaid ARPU grew 2% while service revenues decreased 2%
- TDS Telecom grew total service address footprint by 10% year-over-year
- TDS Telecom's operating revenues increased 4% with 7% residential revenue growth
- TDS updated 2024 guidance for TDS Telecom, raising Adjusted OIBDA and Adjusted EBITDA estimates to $330-$360 million
Telephone and Data Systems, Inc. (NYSE: TDS) and United States Cellular (NYSE: USM) have announced their upcoming second quarter operating results conference call, scheduled for August 2, 2024, at 9:00 a.m. Central Time. The companies will release their financial results before the market opens on the same day. Investors can access the webcast through the events & presentations pages on the respective company websites. TDS, founded in 1969 and headquartered in Chicago, provides wireless, broadband, video, voice, and IT services to approximately 6 million connections nationwide through its subsidiaries UScellular, TDS Telecom, and OneNeck IT Solutions. As of March 31, 2024, TDS employed about 8,600 associates.
TDS Telecom, based in Madison, Wisconsin, is set to launch a new mobile phone product, expanding into the Mobile Virtual Network Operator (MVNO) market through partnerships within the National Content & Technology Cooperative (NCTC). The product, branded as TDS Mobile, will initially be available exclusively to TDS internet customers before a broader rollout. TDS Mobile will leverage a nationwide 5G network, promising extensive coverage at competitive prices. Partnering with Reach, a software-as-a-service platform, TDS aims to simplify and expedite the product launch. The announcement aligns with TDS Telecom's strategy to diversify its service portfolio and enhance market presence. Detailed product information and customer notifications will be forthcoming.
US Signal Company has signed an agreement to acquire OneNeck IT Solutions and OneNeck Data Center Holdings from Telephone and Data Systems (NYSE: TDS). The acquisition will increase US Signal's data centers from nine to 15, extending their footprint to the West Coast and tripling their commercial power under management. The deal is expected to close in Q3 2024, with no terms disclosed. OneNeck provides hybrid IT and multi-cloud solutions through data centers in six states and serves over 1,000 customers in various sectors. US Signal operates a 9,500-route mile fiber network and nine data centers in the Midwest. The acquisition is anticipated to enhance customer service and innovation while supporting growth in the U.S. middle market.
On June 3, 2024, Telephone and Data Systems (NYSE: TDS) announced the sale of its subsidiaries OneNeck IT Solutions and OneNeck Data Center Holdings to US Signal Company. This agreement involves transferring all OneNeck operations, including data centers and cloud hosting solutions. The transaction, which is subject to customary closing conditions, is expected to complete in Q3 2024. While financial terms were not disclosed, TDS plans to use the sale proceeds to support its fiber program, aiming to enhance broadband connectivity across US communities. This strategic move aligns with TDS's goal to optimize asset allocation and improve competitiveness.
T-Mobile (NASDAQ: TMUS) announced its acquisition of UScellular’s wireless operations, including customers, stores, and certain spectrum assets. This move aims to enhance T-Mobile’s 5G network, especially in rural areas, offering improved connectivity and value-packed plans. The transaction, valued at approximately $4.4 billion, comprises cash and up to $2 billion of debt assumption. T-Mobile expects around $1 billion in annual cost synergies post-integration, with completion anticipated by mid-2025. The acquisition promises to spur competition, improve customer experiences, and expand T-Mobile's market reach.
Telephone and Data Systems (NYSE: TDS) announced its board approved the sale of UScellular's wireless operations and 30% of its spectrum assets to T-Mobile for $4.4 billion, including cash and assumed debt. This decision follows a strategic review started in August 2023 and aims to provide significant value to UScellular customers and shareholders. TDS will receive proceeds proportionate to its ownership and plans to invest in fiber infrastructure and reduce leverage. Additionally, TDS announced dividends for Q2 2024. The transaction requires regulatory approval and is expected to close in mid-2025.
UScellular will retain 70% of its spectrum assets and continue to generate revenue from its tower business with T-Mobile as a key tenant. TDS is adjusting its capital allocation strategy to support fiber expansion.
UScellular and TDS have agreed to sell UScellular's wireless operations and select spectrum assets to T-Mobile for $4.4 billion, consisting of cash and assumed debt. The transaction includes 30% of spectrum assets and a new Master License Agreement (MLA) for over 2,000 towers. UScellular retains its 4,400 towers and 70% of its spectrum assets. The deal aims to enhance service for UScellular customers with T-Mobile's resources, including better prices and network improvements. The transaction, approved by both companies' boards, is expected to close by mid-2025, pending regulatory approvals.
Telephone and Data Systems, Inc. (TDS) and United States Cellular (USM) will be webcasting their Annual Meetings of Shareholders in May 2024. UScellular's meeting is on May 21 at 8:30 a.m. Central time, and TDS' meeting is on May 22 at 9:00 a.m. Central time. Investors can access the webcasts on the Events & Presentations pages of investors.tdsinc.com or investors.uscellular.com. Registration is recommended at least 15 minutes before each meeting.
TDS Telecom reported strong financial results in its first quarter earnings report, with a 5% increase in total operating revenues and profitability. The company surpassed 100,000 residential broadband connections in its expansion markets and added 28,000 marketable fiber service addresses. TDS Telecom is on track to reach its goal of 125,000 addresses for the year, with total service addresses growing by 12% year over year. The company is making progress on its long-term fiber strategy, aiming for 1.2 million marketable fiber service addresses and speeds of 1 Gig or higher to at least 80% of its footprint. Demand for higher broadband speeds is increasing, with 78% of customers taking 100 Mbps or greater. TDS Telecom saw a 6% growth in residential broadband connections year-over-year and a 10% increase in total residential revenue.
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