Telephone and Data Systems (TDS) Raymond James TMT and Consumer Conference summary

Industry trends and convergence

• Convergence between wireless and cable is seen as real and accelerating, driven by consumer demand for bundled services and competitive moves by cable companies into wireless markets.

• Cable companies are gaining significant wireless market share, with expectations for their penetration to double over the next five years.

• Early convergence is more about bundled pricing and discounting, but technological integration and Wi-Fi offload are increasing real convergence.

• Partnerships and coalitions, such as NCTC, are key for smaller players to achieve scale and competitive pricing.

• Direct-to-device satellite connectivity is viewed as complementary, especially for rural coverage, but not a replacement for terrestrial wireless.

Strategic transactions and asset monetization

• Wireless operations and spectrum are being sold to T-Mobile, Verizon, and AT&T, with remaining C-band and millimeter wave spectrum to be monetized in the future.

• Minority partnerships generate strong cash flow and are not actively being sold, but offers would be considered.

• Post-transaction, the focus will be on running and growing the tower business and partnerships, with potential to evolve reporting and consider REIT structure.

• Tower business is expected to achieve 50%+ margins over the next three to five years, with growth driven by increasing tenancy ratios.

• Leverage will be low post-transaction, providing flexibility for future strategic decisions.

Fixed wireless and fiber strategies

• Fixed wireless is experiencing strong growth, especially in rural and suburban areas, and is expected to surpass $100 million in revenue in 2025.

• Fiber expansion is a priority, with targets to reach 1.2 million service addresses by 2026 and fiber penetration climbing toward 80% by 2028-2029.

• E-ACAM funding will accelerate fiber deployment and help transition away from legacy DSL.

• Operational improvements, such as faster service delivery and enhanced sales productivity, are being implemented to meet demand.

• Margins are targeted to rise into the mid-40% range as the business becomes more fiber-centric and streamlined.