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, with market share expected to double in five years.

• Early convergence is more about bundled pricing and discounting, but true integration and economic value are expected as Wi-Fi offload and dual SSID technologies advance.

Strategic transactions and asset monetization

• Wireless operations and significant spectrum assets are being sold to T-Mobile, Verizon, and AT&T, with remaining C-band and millimeter wave spectrum to be monetized over time.

• Minority partnerships generate $150 million in annual cash and are held for liquidity, but could be sold if the right offer arises.

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

Fixed wireless and fiber strategies

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

• Fiber expansion is a priority, aiming for 1.2 million service addresses by 2026, with E-ACAM funding expected to push fiber penetration to 80% and gig speeds to over 90% by 2028-2029.

• Efforts are underway to streamline operations, reduce costs, and increase margins into the mid-40% range by consolidating platforms and focusing on fiber.