Array Digital Infrastructure (AD) Citi’s 2025 Global Technology, Media and Telecommunications Conference summary

Strategic updates and business transformation

• Array Digital Infrastructure is now a standalone tower company, owning 4,400 towers and focusing on operational growth, spectrum monetization, and ground lease optimization.

• TDS Telecom is accelerating its transformation into a fiber-centric company, aiming to double its fiber footprint to 1.8 million addresses within five years and recently surpassed one million fiber addresses.

• Both companies are leveraging proceeds from recent asset sales to fund growth, with Array returning capital via special dividends and TDS focusing on fiber expansion and potential M&A.

• No major strategic shifts post-divestiture, but both organizations are doubling down on their core strategies and operational improvements.

Financial outlook and capital allocation

• Array expects to close $1 billion spectrum sales to AT&T by year-end and to Verizon in Q3 next year, with special dividends planned after each transaction.

• Remaining C-band spectrum will be monetized opportunistically, with proceeds likely returned to shareholders.

• Array targets a leverage ratio of 3x, providing flexibility for future opportunities, and plans to institute a recurring dividend by late 2026 or early 2027.

• TDS has delevered to 1.5x at the consolidated level, maintaining balance sheet flexibility for expansion and disciplined M&A.

Operational performance and growth drivers

• Array reported 12% revenue growth in Q2 from co-location, with over 100% year-over-year growth in colo applications for early 2025.

• Bringing sales in-house and establishing MLAs with major carriers have driven operational improvements and customer relationships.

• TDS is accelerating fiber builds in both expansion and rural markets, with E-ACAM supporting regulatory revenue and high penetration rates in rural areas.

• TDS Mobile, an MVNO, has launched across all markets, aiming to boost customer retention and penetration through bundled offerings.