Telephone and Data Systems, Inc. (TDS): Business Model Canvas [Dec-2025 Updated]

You're looking at Telephone and Data Systems, Inc. after its massive pivot, and honestly, the old playbook is gone. After cashing out wireless for $\mathbf{\$4.3 \text{ billion}}$, the company is now all-in on fiber, pouring over $\mathbf{80\%}$ of its $\mathbf{2025}$ capital expenditures into building out high-speed networks, aiming for that $\mathbf{\$1.03\text{B}-\$1.05\text{B}}$ wireline revenue target this year. This shift is also turbocharging their infrastructure side, with site rental income jumping $\mathbf{68\%}$ in Q3 $\mathbf{2025}$ thanks to that big T-Mobile Master License Agreement. To see exactly how Telephone and Data Systems, Inc. is monetizing $\mathbf{1 \text{ million}}$ marketable fiber addresses while managing the wind-down costs, check out the full Business Model Canvas breakdown below.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Key Partnerships

You're looking at a company in a major transition, so the Key Partnerships section of Telephone and Data Systems, Inc. (TDS) is dominated by the massive divestiture of its wireless assets and the strategic pivot to fiber infrastructure. These aren't just vendor relationships; they are fundamental to the company's near-term financial structure.

T-Mobile US, Inc. for Master License Agreement (MLA) on Array towers

The closing of the UScellular wireless operations sale to T-Mobile US, Inc. on August 1, 2025, is the defining partnership event. This deal brought in total consideration of $4.3 billion after adjustments. That consideration was a mix: $2.6 billion in cash proceeds, plus approximately $1.7 billion in debt assumed by T-Mobile US, Inc. through an exchange offer for debtholders, which was expected to settle around August 5, 2025.

A critical component of this is the 15-year Master License Agreement (MLA). This MLA secures T-Mobile US, Inc. as a long-term tenant on a minimum of 2,015 incremental towers retained by Array Digital Infrastructure (the new name for UScellular). Furthermore, the agreement extends the lease term for about 600 towers where T-Mobile US, Inc. was already a tenant. Array Digital Infrastructure retained approximately 4,400 owned towers in total, positioning this tower business as the fifth largest in the United States.

AT&T and Verizon for pending spectrum sales expected to close in 2025/2026

Following the T-Mobile US, Inc. transaction, Telephone and Data Systems, Inc. (TDS) has two more significant spectrum monetization events pending with major carriers. Management expects Array Digital Infrastructure to receive $2 billion in additional gross proceeds from these remaining sales.

Specifically, the sale of licenses to AT&T Inc. is expected to close within 2025. The deal with Verizon Communications Inc. is slated to close in 2026. The initial structure for these pending sales involved each carrier scooping up about $1 billion worth of spectrum holdings. These transactions are key to providing Telephone and Data Systems, Inc. (TDS) with enhanced financial agility.

Federal Communications Commission (FCC) for Enhanced Alternative Connect America Model (EACAM) funding

The partnership with the Federal Communications Commission (FCC) via the Enhanced Alternative Connect America Cost Model (EACAM) is the primary driver for Telephone and Data Systems, Inc. (TDS) Telecom's fiber buildout strategy. Telephone and Data Systems, Inc. (TDS) Telecom elected to receive this enhanced support across 24 states where it offers wireline services.

This support is substantial: Telephone and Data Systems, Inc. (TDS) is authorized to receive about $90 million per year for a period of 15 years through EACAM. This funding is targeted to deploy 100/20 Mbps or faster broadband service to approximately 300,000 incremental rural addresses. The program mandates that 50% of these addresses must be 100/20 Mbps capable by the end of 2026, with the entire construction requirement set to finish by the end of 2028.

Here's a quick look at the scale of the wireless asset monetization and the fiber funding commitment:

Equipment manufacturers (e.g., Nokia, Ericsson) for network technology

Telephone and Data Systems, Inc. (TDS) Telecom relies on partnerships with major equipment manufacturers to deploy its network upgrades, particularly the fiber buildout funded by EACAM. While specific contract values with Telephone and Data Systems, Inc. (TDS) are not public, these vendors are crucial for the technology underpinning the service delivery.

The broader industry context shows the scale of these relationships:

• Equipment vendors like Nokia and Ericsson secure massive multi-year deals with other major carriers.
• For example, one rival carrier signed a 5-year deal with Ericsson worth up to $14 billion for 5G network buildout.
• Another vendor, Nokia, secured a multi-year expansion deal with AT&T for voice and 5G network automation.

These market dynamics definitely influence the pricing and technology available to Telephone and Data Systems, Inc. (TDS) Telecom.

Regional telecommunications providers for network expansion and wholesale agreements

As part of its strategic shift, Telephone and Data Systems, Inc. (TDS) launched a new mobile virtual network operator (MVNO) service, TDS Mobile, which is available across its footprint. This indicates a wholesale relationship structure is in place to support this offering.

The company is also focused on fiber expansion, aiming to reduce copper-served addresses to less than 5% over time. This aggressive fiber strategy means local and regional agreements for rights-of-way and construction support are definitely necessary, though specific financial terms aren't detailed.

• TDS Telecom reported adding 27,000 new fiber service addresses in Q2 2025.
• The company remains on pace for 150,000 total fiber service addresses for the full year 2025.
• The long-term marketable fiber address target is 1.8 million locations.

Finance: draft the pro-forma balance sheet impact of the Verizon spectrum close by next Tuesday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Key Activities

You're looking at the core actions Telephone and Data Systems, Inc. (TDS) is taking to reshape its business, moving away from the legacy wireless model toward a fiber and infrastructure focus. It's a busy time for the company, marked by major transactions and heavy capital deployment in specific areas.

Aggressive fiber-optic network expansion and deployment in new markets

TDS Telecom is definitely prioritizing fiber buildout, which is absorbing a significant portion of the capital budget. The company is executing on its plan to become a fiber-centric broadband provider. For 2025, Telephone and Data Systems, Inc. (TDS) has budgeted capital expenditures for fiber expansion in the range of $375 million to $425 million. This investment is partly supported by the Enhanced Alternative Connect America Cost Model (E-ACAM) program, which is set to provide about $90 million per year for 15 years.

The deployment pace is aggressive, aiming to deliver approximately 150,000 marketable fiber service addresses in 2025, an increase from the 129,000 added in 2024. The third quarter of 2025 saw the deployment of 42,000 new marketable fiber addresses, pushing the total fiber service addresses past the 1 million mark. This is all part of a much larger, updated long-term goal to reach 1.8 million marketable fiber service addresses, a 50% increase over the previous long-term plan. At the end of 2024, Telephone and Data Systems, Inc. (TDS) had 928,000 total fiber service addresses.

The strategic shift is clear in the network footprint goals:

• Targeting Fiber to the Premises (FTTP) for 80% of the network, up from 52% at the end of 2024.
• Aiming for at least 95% of the footprint to support gigabit speeds, compared to 74% at the end of 2024.
• Reducing addresses served by copper technology to just 5%.

This fiber focus is already showing results; in 2024, the fiber expansion helped Telephone and Data Systems, Inc. (TDS) grow residential revenue by 6% year over year.

Leasing tower space and managing co-location services for wireless carriers

The tower business, now operating under Array Digital Infrastructure, Inc. (ArraySM) following the name change on August 1, 2025, is a key activity centered on infrastructure monetization. Array retained its 4,409 towers after the wireless sale. The commencement of the T-Mobile Master Lease Agreement (MLA) on August 1, 2025, immediately impacted tower revenue performance.

Here's how tower revenue is tracking:

The company is actively managing co-location to maximize asset utilization.

Executing on the sale of non-strategic assets and spectrum licenses

A critical activity has been the divestiture of the wireless business to streamline the portfolio. The sale of United States Cellular Corporation's wireless operations and select spectrum assets to T-Mobile US, Inc. closed on August 1, 2025, for total consideration of $4.3 billion, including cash and assumed debt. Following this, Array declared a special dividend of $23.00 per share to its shareholders on August 19, 2025. Telephone and Data Systems, Inc. (TDS) reported receiving a $1.6 billion special dividend from Array in the third quarter of 2025.

Further monetization of spectrum is underway:

• Additional spectrum sales are expected to yield aggregate proceeds of $178 million.
• The pending transaction with AT&T is expected to close in the second half of 2025 (2H 2025).
• The pending transaction with Verizon is expected to close in the third quarter of 2026 (Q3 2026).

These divestitures impact current period reporting; for instance, TDS Telecom revenues in Q3 2025 were negatively impacted by $6 million due to divestitures of non-strategic assets. The sale of the Hosted and Managed Services (HMS) operations occurred in September 2024.

Operating the new TDS Mobile Mobile Virtual Network Operator (MVNO) product

Telephone and Data Systems, Inc. (TDS) launched its TDS Mobile MVNO product to limited markets and planned to fully launch it throughout its footprint in 2025. The company is focusing on this new offering as part of its transformation. Specific subscriber or revenue figures for the TDS Mobile MVNO product in late 2025 were not detailed in the provided financial summaries, which focused more on the results of the divested UScellular operations and the remaining core businesses. Still, the full 2025 launch is a key operational focus.

Streamlining operations to improve cost structure and margins

Management is actively working on streamlining operations to enhance the customer experience and improve margins and cost structure. This focus is reflected in the expense management across the continuing businesses.

Cost and profitability metrics for Q3 2025:

For the full year 2025, Telephone and Data Systems, Inc. (TDS) forecasts TDS Telecom total operating revenues between $1.03 billion and $1.07 billion, with Adjusted EBITDA projected between $320 million and $360 million. The company reported a net income attributable to common shareholders of $40.2 million for Q3 2025, a significant swing from the $(100.4) million loss in Q3 2024.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Key Resources

You're looking at the core assets Telephone and Data Systems, Inc. (TDS) relies on as it pivots heavily into fiber and tower infrastructure post-wireless divestiture. These aren't just line items; they are the tangible and human capital driving the next phase of the business.

The fiber-optic network infrastructure is central now. TDS Telecom officially surpassed the 1 million fiber passings mark, a significant milestone cementing its position as a premier broadband provider. The company has an ambitious long-term target to reach 1.8 million marketable fiber addresses. For 2025 specifically, TDS Telecom is targeting the delivery of approximately 150,000 marketable fiber service addresses.

Here's a quick look at the scale of the fiber buildout as of late 2025:

The tower assets, now under Array Digital Infrastructure, Inc., form another critical resource. These are physical assets generating long-term contracted revenue, primarily from the T-Mobile master lease agreement.

The tower portfolio details look like this:

• Array Digital Infrastructure retained approximately 4,400 owned towers as of June 30, 2025.
• T-Mobile entered a 15-year Master License Agreement for a minimum of 2,015 incremental towers.
• T-Mobile extended lease terms for approximately 600 existing towers where it was already a tenant.
• The tower tenancy rate stood at 1.57 as of the second quarter of 2025.

The remaining wireless spectrum licenses represent a significant financial asset, even after the major sale. These are held for future monetization, supporting the balance sheet flexibility.

You should note the expected proceeds from the remaining spectrum sales:

• Management expects Array to receive $2.0 billion in additional gross proceeds from pending spectrum sales with AT&T and Verizon.
• The sale to T-Mobile US, Inc. was a $4.3 billion transaction in gross consideration, which closed on August 1, 2025.
• TDS received a special distribution from Array of approximately $1.63 billion following the initial closing.
• The company plans to use a portion of this to redeem approximately $1.1 billion in debt.

Finally, the human capital is vital for executing the fiber build and managing the tower portfolio. The workforce is adapting to this new focus.

As of March 31, 2025, Telephone and Data Systems, Inc. (TDS) employed approximately 7,800 associates nationwide. This number reflects the workforce after the wireless operations divestiture, with a core focus now on the fiber construction and network operations teams within TDS Telecom.

Finance: draft 13-week cash view by Friday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Value Propositions

You're looking at the core value Telephone and Data Systems, Inc. (TDS) delivers across its segments as of late 2025. It's a dual focus: building out next-generation fixed broadband and monetizing existing infrastructure assets.

High-speed, future-proof fiber broadband services (up to 8 Gig residential)

TDS Telecom is heavily invested in its fiber transformation. Residential customers can access services as fast as 8 Gbps over the fiber network. The long-term goal for marketable fiber service addresses is now set at 1.8 million locations, with an aim for 95% of that footprint to offer speeds of at least 1 Gig. In the third quarter of 2025 alone, TDS Telecom delivered 42,000 marketable fiber services addresses, contributing to 11,200 residential fiber net additions for the quarter. This brought the total fiber addresses crossed to just over 1 million in Q3 2025.

Essential, reliable digital infrastructure leasing for major wireless carriers

The value proposition here is centered on Array Digital, TDS's tower company, which became a standalone entity after the sale of wireless operations to T-Mobile on August 1, 2025. Commencing the T-Mobile Master Lease Agreement (MLA) immediately helped drive a 68% increase in Site rental revenues (excluding non-cash amortization) in Q3 2025. Furthermore, Array entered into additional spectrum sales expected to bring in aggregate proceeds of $178 million. The segment's financial strength is clear:

Connectivity in underserved rural and suburban US markets

TDS Telecom's fiber build-out is explicitly targeting areas needing connectivity. The company is active across 31 states, with ongoing expansion projects in nearly 100 communities nationwide. A significant portion of this build is funded by participation in the federal Enhanced Alternative Connect America Cost Model (E-ACAM) program, from which TDS is set to receive about $90 million per year for 15 years. This support helps fund fiber expansions in their rural copper footprint.

Simplified mobile service via the new TDS Mobile MVNO offering

TDS Mobile, operating as a mobile virtual network operator (MVNO) through NCTC, announced its widespread availability this week in November 2025, leveraging a reliable, nationwide 5G network. The pricing structure is designed for flexibility. Prices start at $13.95 per month by-the-gig and $29.95 per month for unlimited plans. The plan was to fully launch the MVNO throughout the footprint in 2025.

Superior customer experience, a core value of the TDS Way

The TDS companies share a strong commitment to customer satisfaction, aiming to satisfy customers by offering the highest-quality services and products and excellent customer support. Management has also focused on streamlining operations to enhance elements of the customer experience as part of its business transformation plan. The company is focused on improving CX elements, though specific 2025 Net Promoter Score or Customer Satisfaction Score data isn't publicly detailed in the latest reports.

• TDS Telecom's goal is for 95% of its fiber footprint to have speeds of at least 1 Gig.
• TDS Telecom is targeting a long-term footprint of 1.8 million marketable fiber service addresses.
• TDS Mobile unlimited plan starts at $29.95 per month.
• The T-Mobile MLA commencement drove a 68% increase in Array's site rental revenues (Q3 2025 vs. prior year).
• Array expects additional spectrum sales to yield proceeds of $178 million.

Finance: draft 13-week cash view by Friday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Customer Relationships

You're looking at Telephone and Data Systems, Inc. (TDS) post-wireless divestiture, so the customer relationships are now sharply focused on two distinct areas: the business-to-business (B2B) tower leasing with major carriers and the direct-to-consumer/business wireline services from TDS Telecom.

Dedicated account management for tower co-location tenants (Array)

For Array Digital Infrastructure, Inc., customer relationships are formalized through Master License Agreements (MLAs) with major mobile network operators (MNOs). This structure emphasizes ease of doing business and long-term contracted revenue streams. The focus here is on operational excellence and maximizing tenancy across the tower portfolio.

The relationship with T-Mobile US, Inc. is significant following the August 1, 2025, transaction. T-Mobile entered into a 15-year MLA to be a long-term tenant on a minimum of 2,015 incremental towers and extend the lease term for approximately 600 existing towers. This created a long-term contracted revenue stream from a strong anchor tenant. The success of this relationship focus is visible in the results: Array's colo applications in the first half of 2025 were up over 100% year-over-year. Furthermore, Array's Site rental revenues increased by a massive 68% in the third quarter of 2025, excluding non-cash amortization, directly attributable to the new MLA.

Here's a quick look at the scale of the tower relationships as of mid-2025:

The relationship management for these large carriers is streamlined, as Array maintains MLAs with all three major U.S. MNOs, which helps facilitate competitive pricing and process efficiency.

High-touch, local service model for wireline customers in smaller communities

TDS Telecom serves a mix of small to mid-sized urban, suburban, and rural communities, where a local, high-touch approach is essential for customer retention, especially as the company aggressively converts its footprint to fiber. The company employed 3,400 people as of August 2025, many of whom support these local service delivery and support functions. The focus on fiber expansion is a direct investment in the customer experience in these areas.

The scale of the wireline customer base receiving this service model is substantial, with TDS Telecom projecting full-year 2025 total operating revenues between $1.03 billion and $1.05 billion. The commitment to the local footprint is underscored by the fiber buildout goals:

• Targeting 95% of the footprint to offer speeds of at least 1 Gig or higher.
• Long-term goal to reach 1.8 million marketable fiber service addresses.
• Planning to reduce addresses served by copper to just 5%.
• Delivered 42,000 marketable fiber service addresses in Q3 2025 alone.

This transformation is intended to enhance the customer experience by providing superior network quality, which is a key driver for residential revenue growth; Total Wireline expansion residential revenues grew to $114 million in FY 2024, up from $75 million the prior year.

Self-service and digital support channels for residential and business customers

Telephone and Data Systems, Inc. is actively driving digital transformation across its operations to streamline service and enhance the customer experience. This involves moving more interactions to web and digital platforms as part of a broader business transformation program that includes consolidating IT systems. The core value is to maximize value to customers by exceeding expectations.

While specific digital adoption rates for TDS Telecom's customer portals aren't public, the strategic direction points to increased reliance on these channels. The company is focused on enhancing elements of the customer experience and driving more to the web. This aligns with broader industry trends where digital investment is exploding, though only 28% of employees in surveyed organizations know how to effectively use their AI tools, suggesting the need for Telephone and Data Systems, Inc. to ensure its digital tools are highly intuitive for its customers.

Community engagement and local sponsorship programs

Community involvement is a stated core belief, executed through programs like TDS Cares and the "Be Good Citizens" program, which provides associates with 16 hours of paid time off annually for volunteering. This commitment to society and community is a way Telephone and Data Systems, Inc. builds goodwill with its local wireline customer base.

The tangible results of this relationship-building effort are clear:

• The 2025 TDS Open golf event surpassed $1 million in total funds raised.
• The 2025 TDS Open awarded a record $90,000 to two impactful organizations.
• Since 2009, associates have collectively contributed over 22,000 hours of volunteer time.
• In 2024, associates supported 311 organizations with over 1,800 volunteer hours.

The company honors local leaders through its Hometown Hero and Most Valuable Educator programs, reinforcing local ties. Finance: draft 13-week cash view by Friday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Channels

You're looking at how Telephone and Data Systems, Inc. (TDS) gets its services-primarily through TDS Telecom-into the hands of customers as of late 2025. The channels are a mix of direct interaction, strategic partnerships, and digital self-service, all heavily weighted toward the fiber buildout strategy.

Direct sales force and local retail presence for TDS Telecom services

The direct sales channel is supported by the overall employee base of TDS Telecom, which employs 3,300 people as of September 2025. While the exact number of dedicated direct sales staff isn't public, we can see the cost structure; the average annual pay for a Tds Telecommunications Direct Sales Representative in the United States was $68,150 as of October 2025. For high-value business contracts, roles like Account Executive command an estimated annual salary of $87,261. The effectiveness of this channel, alongside marketing, is measured by the growth in fiber connections across the service footprint, which spans 31 states.

The focus for TDS Telecom is clearly on expanding its physical reach through fiber deployment, which acts as the ultimate channel for service delivery. The company is targeting to deliver approximately 150,000 marketable fiber service addresses in 2025.

Here are the key channel output metrics related to the fiber build, which is the core of TDS Telecom's current sales focus:

Long-term Master License Agreements (MLAs) with major wireless carriers

The channel strategy shifted significantly due to the divestiture of wireless operations. Array, formerly UScellular, closed the sale of its wireless operations and select spectrum assets to T-Mobile on August 1, 2025. This transaction immediately activated a long-term Master License Agreement (MLA) with T-Mobile. This MLA helped drive a 68% increase in Site rental revenues for Array (the tower business), excluding non-cash amortization, in the third quarter of 2025. Furthermore, Array is expecting additional spectrum sales that should yield aggregate proceeds of $178 million. This MLA represents a critical, high-value channel for the Array segment of TDS, leveraging its physical assets.

Online portals and customer service centers for billing and support

For existing TDS Telecom customers, digital channels are key for ongoing service interaction. You can manage billing and support through online portals, though specific adoption rates or call center volumes aren't detailed in the latest reports. However, the company is focused on streamlining operations to enhance the customer experience as part of its business transformation plan. The company's overall estimated full-year 2025 TDS Telecom revenues are projected to be in the range of $1,030-$1,050 million.

You can reach the wholesale team directly for service inquiries:

• Contact Phone Number: 608-664-6226
• Contact Email: tdscarriersales@tdstelecom.com

Wholesale network agreements with other regional providers

TDS Carrier Wholesale Services offers a suite of solutions, including Ethernet Services, Dark Fiber Services, Optical Wavelength Services, and Private Line Services, to local and long-distance service providers, Internet providers, wireless providers, and cable companies. While the specific revenue contribution from the wholesale segment is not broken out separately from the overall TDS Telecom revenue decline of 3% in Q3 2025 (impacted by divestitures), the focus remains on providing these network capabilities to other carriers.

The wholesale channel supports the broader network strategy, which aims to reduce the number of addresses served by copper to less than 5% over time, with 95% of the footprint targeted for speeds of at least 1 Gig.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Customer Segments

You're looking at Telephone and Data Systems, Inc. (TDS) after the major strategic shift with the T-Mobile transaction closing in mid-2025. The customer base is now clearly defined between the infrastructure/tower leasing business, Array Digital, and the focused fiber broadband provider, TDS Telecom. Here's the breakdown of the key customer groups as of the third quarter of 2025.

Residential Customers in Rural and Suburban Areas Needing High-Speed Internet (TDS Telecom)

This segment is the core focus for TDS Telecom's aggressive fiber buildout. The company is actively migrating customers from legacy copper and cable services to fiber-to-the-premises (FTTP). As of the third quarter of 2025, Telephone and Data Systems, Inc. (TDS) reported that total residential connections stood at 921,100. The push for fiber is evident in the net additions; in Q3 2025, the company added 11,200 residential broadband net additions overall, with 8,300 of those coming specifically from fiber markets. Residential revenues per connection for TDS Telecom reached $65.66 in Q3 2025. The long-term goal for marketable fiber service addresses is now set at 1.8 million, with a target for at least 95% of that footprint to offer gigabit speeds.

The scale of the fiber expansion effort is significant:

• Delivered 42,000 new marketable fiber service addresses in Q3 2025.
• Crossed the 1 million fiber addresses milestone during Q3 2025.
• Targeting to deliver approximately 150,000 more marketable fiber service addresses in the full year 2025.

Major US Wireless Carriers Leasing Tower Space (Array Digital)

Following the sale of wireless operations, the tower leasing segment, now operating under Array Digital Infrastructure, Inc., centers on infrastructure customers. A primary relationship is the Master Lease Agreement (MLA) with T-Mobile, which commenced on August 1, 2025, after the asset sale closed that same day. This relationship is a major revenue driver for the segment. The impact is clear in the reported growth figures:

This segment is focused on maximizing the value of its tower assets through new colocations and existing lease escalators. It's definitely a capital-light growth story now.

Small to Mid-Sized Businesses Requiring Dedicated Fiber Connections (TDS Telecom)

TDS Telecom serves the business segment with its high-speed fiber network, offering tailored solutions beyond standard residential tiers. For businesses, Telephone and Data Systems, Inc. (TDS) offers dedicated fiber connections with service speeds up to 10 Gbps, which includes a service level agreement. This targets organizations needing guaranteed performance for mission-critical operations.

Other Regional Telecommunications Carriers Utilizing Wholesale Network Services

While specific wholesale revenue or customer counts aren't detailed in the latest reports, the fiber expansion and network buildout inherently support wholesale opportunities. The strategy involves building out a network that can serve both retail residential/business customers and potentially other carriers needing access to the robust, newly deployed fiber infrastructure across the 31 states where TDS Telecom operates.

Finance: draft 13-week cash view by Friday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Cost Structure

You're looking at the major outlays for Telephone and Data Systems, Inc. (TDS) as they push hard into fiber, so let's break down the cost side of their current strategy. The capital allocation is heavily skewed toward network expansion right now. For the full year 2025, Telephone and Data Systems, Inc. (TDS) has a capital expenditures (CapEx) forecast in the range of $375 million to $425 million.

The commitment to fiber is clear in that spending. Management stated that over 80% of the 2025 capital expenditures will be focused on fiber buildout. This investment is directly tied to expanding their footprint, as seen by the 42,000 marketable fiber services addresses delivered in Q3 2025 alone. This fiber push also involves spending related to the eACAM program.

The major strategic shift-the sale of wireless operations to T-Mobile US, Inc. on August 1, 2025-has a direct cost implication, though it's reflected in revenue changes. TDS Telecom revenues in Q3 2025 were down 3%, impacted by $6 million due to divestitures of non-strategic assets. While specific network operations and maintenance (O&M) costs for fiber and tower assets aren't explicitly itemized in the public summaries, the ongoing fiber deployment and the commencement of the T-Mobile Master Lease Agreement (MLA) suggest variable operational costs tied to these assets.

General and administrative expenses are a focus area for efficiency. Management has emphasized executing a business transformation plan specifically to improve margins and cost structure. The regulatory compliance costs, such as those associated with the EACAM program, are factored into the increased CapEx guidance.

Here's a look at the key financial figures driving the cost structure for Telephone and Data Systems, Inc. (TDS) based on late 2025 reporting:

The company is actively managing its operating expenses, which is part of the broader business transformation effort. You can see the focus on efficiency when you look at the targeted outcomes:

• Executing on a business transformation plan to improve margins.
• Delivering 42,000 new marketable fiber service addresses in Q3 2025.
• Aiming for 1.8 million total marketable fiber service addresses long-term.
• Reducing addresses served by copper to just 5% of the footprint.

The costs associated with the wireless divestiture are largely one-time transition items, but the ongoing revenue impact from the asset sale is quantified. The $6 million revenue impact in Q3 2025 is a direct consequence of shedding non-strategic assets. Finance: draft 13-week cash view by Friday.

Telephone and Data Systems, Inc. (TDS) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for Telephone and Data Systems, Inc. (TDS) revenue streams as of late 2025, post-major portfolio transformation. Here's the breakdown of where the money is coming from now.

The most significant recent shift involves Array Digital Infrastructure, Inc. (formerly UScellular), which closed its sale of wireless operations to T-Mobile US, Inc. on August 1, 2025. This immediately impacted tower-related income.

• Site rental revenue from Array towers saw a 68% increase in Q3 2025, excluding non-cash amortization, directly due to commencing the T-Mobile Master License Agreement (MLA) on August 1, 2025.
• TDS Telecom is executing its fiber-centric strategy, targeting delivery of approximately 42,000 marketable fiber service addresses in Q3 2025.
• TDS Telecom revenues were down 3% in Q3 2025 compared to Q3 2024, impacted by $6 million from divestitures of non-strategic assets, such as the Hosted and Managed Services (HMS) operations sold in September 2024.
• The company launched the new TDS Mobile product, an MVNO service, to limited markets with plans for a full launch throughout its footprint in 2025.

The company is also monetizing its remaining assets, which provides non-recurring, but significant, cash flow.

You'll want to keep an eye on the timing of the remaining spectrum transactions, as those proceeds are earmarked for capital allocation priorities.

• The pending AT&T spectrum transaction is anticipated to close in either Q4 2025 or H1 2026.
• The company expects to use proceeds from additional spectrum sales to further expand its fiber program and support the new $500 million share repurchase program.