Telephone & Data Systems Inc /De/ (NYSE: TDS-PU)

Telephone and Data Systems, Inc. provides high quality communications services through its wholly owned subsidiary TDS Telecom which had 1,100,000 broadband video voice and wireless connections as of December 31, 2025. The company also leases tower space and offers ancillary services holds noncontrolling interests in wireless operating companies and holds certain wireless spectrum licenses through its majority owned subsidiary Array Digital Infrastructure, Inc. As of the same date Telephone and Data Systems, Inc. owned 82.0% of Array’s total outstanding shares and controlled 95.9% of its voting power. TDS common shares trade on the NYSE under the ticker TDS while Array trades under the ticker AD. The company is classified as a controlled company under NYSE rules because over half of the voting power for director elections is held by the trustees of the TDS Voting Trust. All of Telephone and Data Systems, Inc.'s segments operate entirely within the United States.

Telephone and Data Systems, Inc. generates revenue primarily from the sale of broadband video voice and wireless services provided by TDS Telecom to residential commercial and wholesale customers. The company also earns revenue from leasing tower space and providing ancillary services through its Array segment. Additional revenue comes from the sale of wireless spectrum licenses and from noncontrolling interests in wireless operating companies. Wholesale operations of TDS Telecom contribute revenue by carrying data and voice traffic for other carriers and by receiving federal Connect America Fund and state Universal Service Fund payments. Array’s direct tower operations produce income from ground rent tower maintenance utilities property tax and property insurance while its selling general and administrative expenses include employee costs bad debts consulting fees and other general overhead.

The company operates through the following segments: TDS Telecom and Array.

• TDS Telecom: This segment delivers high speed internet video voice and wireless services to about 1,100,000 connections across 30 states using fiber coaxial and copper networks. It offers fiber internet with speeds up to 8 gigabits per second for residential and up to 10 gigabits per second for select business connections. In non fiber areas it uses fiber to the node and copper based vectoring or pair bonding to reach speeds up to 100 megabits per second and employs DOCSIS 3.1 technology for up to 1 gigabit per second. The segment provides whole home WiFi security and support services video offerings through an integrated cloud TV platform known as TDS TV+ and voice plans that include local and long distance calling Voice over Internet Protocol and enhanced services such as Find Me Follow Me. Wholesale operations carry data and voice traffic for other carriers and receive Connect America Fund and Universal Service Fund support. The segment continually invests in fiber to the home projects to expand its footprint and improve broadband availability in rural and suburban markets.

• Array: This segment owns 4,450 towers in 19 states and leases space on those structures to tenants such as T-Mobile AT&T and Verizon while also providing ancillary services. It holds noncontrolling interests in wireless operating companies and retains certain wireless spectrum licenses. The average tower height is 260 feet with a range from 60 feet to 600 feet and the portfolio includes monopole self support and guyed tower structures. Over 65% of towers located on leased land have lease expiration dates ten years or more in the future. Array’s strategy focuses on increasing colocation revenue through long term Master License Agreements with major carriers optimizing ground lease agreements and evaluating towers without tenants for potential leasing or divestiture. The segment expects to have between 800 and 1,800 towers without tenants after the T-Mobile integration and seeks to unlock value through increased leasing ground rent rationalization or, if necessary, decommissioning. Array also pursues ground lease optimization to increase ownership of the land under its towers and to monetize its spectrum assets through negotiated sales or leases.

In the communications services market TDS Telecom competes with wireline providers cable companies fiber overbuilders VoIP providers satellite companies and wireless carriers. It differentiates itself by emphasizing network reliability high speed broadband a diverse product portfolio and high quality customer service backed by a strong community focus. The company also highlights its investments in fiber to the home infrastructure as a way to future proof its network and meet growing bandwidth demand. In the tower infrastructure sector Array ranks as the fifth largest tower owner and operator in the United States and faces competition from American Tower Corporation Crown Castle Inc SBA Communications Corporation regional tower operators build to suit providers rooftop owners and wireless companies that own their own infrastructure. Array’s competitive advantages stem from its strategic tower locations long term agreements with major tenants such as T-Mobile AT&T and Verizon low tenant churn high lease renewal rates and substantial available vertical space on its towers for additional colocation. The company benefits from its deep expertise in the end to end leasing process developed over more than forty years of tower ownership and operation.

TDS Telecom serves residential households small and medium sized businesses and wholesale carrier customers while also receiving support from federal and state universal service programs for underserved areas. Its wholesale customers include interexchange carriers that purchase data and voice transport capacity on the TDS Telecom network. Array’s primary customers are major wireless carriers including T-Mobile AT&T and Verizon that lease tower space on its sites as well as other tenants such as regional carriers and private operators that require tower infrastructure for their equipment. The company also holds noncontrolling interests in various wireless operating companies which provide additional revenue streams through dividend distributions.