Telephone and Data Systems, Inc. (TDS): PESTLE Analysis [Nov-2025 Updated]

You're looking for a clear, actionable breakdown of the forces shaping Telephone and Data Systems, Inc. (TDS) right now, especially after the big UScellular divestiture. The core takeaway is this: TDS has traded wireless scale for a fiber-centric, financially flexible model, but its future hinges on executing a massive, capital-intensive fiber build while navigating an uncertain regulatory and economic landscape.

Here's the quick math on the pivot: TDS Telecom is projecting full-year 2025 capital expenditures between $375 million and $425 million, with over 80% of that going directly into fiber expansion. This is a focused, high-stakes bet on next-generation connectivity.

You're holding a company that just made a massive pivot, essentially trading the scale of UScellular for a focused, high-stakes bet on fiber. This isn't a small shift; it's a fundamental re-engineering of the business model. The question for you isn't just whether Telephone and Data Systems, Inc. (TDS) can execute their plan to deploy fiber to 150,000 new marketable addresses in 2025, but how the external forces-from federal regulatory shifts to the $425 million capital expenditure strain-will shape that outcome. We need to look past the balance sheet and map the Political, Economic, Sociological, Technological, Legal, and Environmental (PESTLE) factors to see the real path forward, because a $1.1 billion debt reduction doesn't solve every external threat.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Political factors

Regulatory approval risk for pending spectrum sales to AT&T and Verizon.

The political landscape for Telephone and Data Systems, Inc. (TDS) in 2025 is heavily influenced by the regulatory environment surrounding its major divestitures. The primary transaction-the sale of UScellular's wireless operations to T-Mobile US, Inc.-closed on August 1, 2025, after receiving Federal Communications Commission (FCC) approval on July 11, 2025. This move significantly alters TDS's business model, pivoting it toward its fiber-focused TDS Telecom and its tower infrastructure business, Array Digital Infrastructure, Inc. (formerly UScellular).

However, the political risk now centers on the subsequent, smaller, but still substantial, spectrum sales. TDS has separate agreements to sell portions of its retained spectrum licenses to both AT&T Inc. and Verizon Communications Inc. The AT&T deal is valued at $1.018 billion, covering 3.45 GHz and 700 MHz B/C block licenses. The Verizon agreement is for $1.000 billion, involving AWS, Cellular, and PCS wireless spectrum licenses. Both of these transactions are contingent upon receiving necessary regulatory approvals from the FCC and the Department of Justice (DOJ). Honestly, getting two major competitors like AT&T and Verizon to acquire spectrum from the same seller, so soon after a major T-Mobile deal, means the FCC and DOJ will be scrutinizing the competitive impact closely.

Here is the quick math on the pending spectrum sales:

Uncertainty over Universal Service Fund (USF) and E-ACAM program support levels.

A significant revenue stream for TDS Telecom, the company's wireline segment, is tied to federal support programs aimed at rural broadband deployment. Specifically, TDS Telecom is a participant in the Enhanced Alternative Connect America Cost Model (E-ACAM) program, which provides monthly support for building out 100/20 Mbps (megabits per second) or faster broadband service in rural areas. The company is set to receive approximately $90 million per year over a 15-year term from E-ACAM funding. This predictable, long-term revenue is a crucial component of TDS Telecom's fiber expansion strategy, which aims for a long-term target of 1.8 million marketable fiber passings.

The political risk here is fundamental: the entire Universal Service Fund (USF) that bankrolls E-ACAM is currently facing a legal challenge at the Supreme Court. A ruling against the USF's current funding mechanism could defintely destabilize this revenue, forcing a major revision to TDS Telecom's capital expenditure plans, which were projected to be between $375 million and $425 million for full-year 2025. The total E-ACAM program is distributing roughly $18.28 billion over 15 years to participating carriers, so the political and legal battle over its future is a high-stakes issue for the entire rural telecom sector.

Increased scrutiny on data privacy and network security from federal agencies.

The political environment in 2025 shows intense, fragmented scrutiny on data privacy and network security. While a comprehensive federal data privacy law remains unlikely, the regulatory burden is actually increasing due to a growing patchwork of state laws. By the end of 2024, nearly half of all U.S. states had enacted modern data privacy legislation, and more are expected in 2025. This forces a national carrier like TDS to comply with numerous, often conflicting, state-level requirements, which increases compliance costs and legal exposure.

Furthermore, federal agencies have tied network security directly to government funding. E-ACAM carriers, including TDS Telecom, are required to implement and certify operational cybersecurity and supply chain risk management plans with the Universal Service Administrative Company (USAC). Failure to comply with these security mandates can result in the USAC withholding 25% of monthly support payments. This is a clear, immediate financial risk tied to political and regulatory compliance, making network security a boardroom-level political concern.

Potential for shifting federal environmental policy under new administrations.

The political shift under the current administration has been toward regulatory streamlining to accelerate infrastructure deployment. For TDS, whose strategy is centered on fiber broadband expansion, this is a favorable political trend. The FCC's 'Build America Agenda' includes efforts to modernize its environmental regulations under the National Environmental Policy Act (NEPA).

In August 2025, the FCC unanimously approved a Notice of Proposed Rulemaking to narrow the scope of environmental reviews for certain wireless infrastructure projects. The stated goal is to expedite and simplify the permitting process, which historically could take up to 4.5 years for a full Environmental Impact Statement. This political push to cut red tape directly supports TDS Telecom's operational goals, allowing them to accelerate fiber deployment and meet their commitment to deliver 42,000 marketable fiber services addresses in Q3 2025 alone.

• FCC is actively working to cut permitting delays.
• New rules aim to streamline NEPA reviews for infrastructure.
• Faster permitting helps TDS meet its fiber build-out goals.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Economic factors

The economic picture for Telephone and Data Systems, Inc. (TDS) in 2025 is a story of strategic transformation driven by a massive capital event: the sale of UScellular. This move has fundamentally changed the company's financial structure, shifting the focus to a fiber-centric future, but it also introduces near-term stress from heavy investment. The immediate takeaway is that a significant debt reduction provides a strong financial cushion, but the aggressive fiber build demands flawless execution to stabilize revenue in a competitive and potentially softening consumer market.

Debt Reduction and Interest Savings: The UScellular Impact

The biggest economic factor for TDS this year is the cash infusion from the UScellular transaction. Following the sale of the wireless operations to T-Mobile and the subsequent special dividend from Array Digital Infrastructure (formerly UScellular) in August 2025, TDS received approximately $1.63 billion. The immediate and critical action was to deleverage the balance sheet.

The company is using a substantial portion of these proceeds to redeem approximately $1.1 billion in debt. Here's the quick math: this debt carried a weighted average cost of 7.5%, so paying it down is projected to save the company around $80 million in annual interest expense. That's a clean one-liner on the income statement that defintely improves future profitability.

This debt paydown lowers the overall average cost of debt for the entire TDS enterprise to just over 6%, including preferred stock. This financial restructuring is a major strategic advantage, freeing up capital for the core TDS Telecom fiber expansion.

High Capital Expenditure and Near-Term Cash Flow

The economic opportunity is fiber, but the cost is steep. The pivot to becoming a fiber-centric provider requires a significant upfront investment, which is the primary strain on near-term free cash flow (FCF). The full-year 2025 capital expenditure (CapEx) for TDS Telecom is projected to be in the range of $375 million to $425 million. Over 80% of this budget is dedicated to fiber deployment and network modernization, including the Enhanced Alternative Connect America Model (E-ACAM) program.

While consolidated FCF turned positive in the first quarter of 2025 ($47 million), the sheer magnitude of the fiber investment means the company is sacrificing immediate cash generation for long-term growth. The goal is to deliver approximately 150,000 new marketable fiber service addresses in 2025 alone, pushing the total fiber addresses past the 1 million milestone achieved in Q3 2025. This heavy spending is necessary to hit the long-term target of 1.8 million marketable fiber service addresses.

Revenue Trajectory and Macro-Risk

The economic environment introduces a clear risk: a macroeconomic slowdown could dampen consumer demand for high-tier broadband services. TDS Telecom's full-year 2025 total operating revenue guidance is set between $1,030 million and $1,050 million. This range reflects the ongoing trade-off: strong growth in higher-margin fiber connections is being offset by declines in legacy copper and cable markets, plus the impact of non-strategic asset divestitures.

If the US economy slows, consumers may opt for lower-speed, cheaper broadband packages or delay upgrading to gigabit speeds, directly impacting the average revenue per user (ARPU) growth that the fiber strategy depends on. The company's success hinges on its fiber net additions outpacing the revenue erosion from its legacy services. The Q3 2025 results showed total operating revenues for TDS were down 3% year-over-year, or 1% when excluding divestitures, demonstrating the ongoing pressure.

Here is a snapshot of the core 2025 financial guidance for TDS Telecom:

The economic strategy is clear: use the one-time cash from the UScellular sale to dramatically reduce debt and interest costs, which then allows the company to fund its aggressive fiber build program. The risk is that the fiber revenue ramp-up is too slow to absorb the high CapEx before a macro downturn hits consumer spending. Finance: closely monitor residential fiber net additions and ARPU growth against the CapEx burn rate quarterly.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Social factors

Sustained high demand for bandwidth due to remote work and streaming services

The post-pandemic social shift to hybrid and remote work models, coupled with the explosive growth in 4K streaming and online gaming, has turned high-speed bandwidth into a utility, not a luxury. This sustained demand is a tailwind for TDS Telecom's fiber strategy. In 2025, we've seen the percentage of U.S. households subscribing to high-tier broadband plans (500-900 Mbps) jump from 18% to a notable 24%, showing customers are willing to pay for speed.

TDS is leaning into this, focusing its capital expenditure (CapEx) heavily on fiber deployment. The company is on track to deliver 150,000 new fiber service addresses in 2025, a clear increase from 129,000 in 2024. This build-out is critical because it moves the company away from its legacy copper infrastructure. Currently, 75% of TDS's footprint offers speeds of one gigabit (gig) or higher, which is the baseline expectation for a work-from-home family. That's a good number, but the competition is fierce.

Aging U.S. population drives need for simplified, reliable connectivity solutions

The demographic reality of an aging U.S. population creates a specific market opportunity for reliable, easy-to-use connectivity. By 2040, an estimated 80.8 million Americans-or one in five-will be 65 or older. A vast majority, about 85% of those age 65 and older, want to age in place, which means they rely on their home internet for telehealth, security monitoring, and social connection.

However, this segment is underserved: only 61% of adults age 75 or older have a wired broadband connection. TDS, with its focus on rural and suburban markets, is well-positioned to serve this need, but the solution must be simple. This population prioritizes clarity, reliability, and traditional support channels like phone calls, which is a key difference from younger generations.

Here's the quick math on the market opportunity for reliable home connectivity:

Pressure to address the digital divide in rural and underserved markets

The social pressure to close the digital divide-the gap in internet access between urban and rural areas-is intense, but it also comes with significant federal funding. TDS operates heavily in these areas, making this a strategic opportunity. About 22% of rural Americans still lack access to minimum broadband speeds (25/3 Mbps), compared to only 1.5% in urban areas.

TDS is actively addressing this through government programs and its own investment:

• Securing funding: TDS is set to receive approximately $90 million per year for 15 years through the FCC's Enhanced Alternative Connect America Cost Model (E-ACAM) program.
• Targeted expansion: This funding will help add about 300,000 fiber passings in rural copper footprints.
• Long-term goal: The company's long-term target of 1.8 million marketable fiber service addresses is partly fueled by this commitment to underserved areas.

This is a defintely a high-cost, high-reward strategy, as it aligns public policy with private investment, but the execution risk on these large-scale builds is always present.

Millennial and Gen Z customers demand strong digital-first customer experience

The rising consumer power of Millennial and Gen Z customers dictates a fundamental shift in customer experience (CX). These generations, who will make up the bulk of future spending, demand speed, personalization, and self-service. For instance, 60% of Gen Z prefer to resolve issues using self-service tools like FAQs or video tutorials before talking to a person.

The expectation for immediate service is non-negotiable; 54% of Gen Z expect a customer service response within 10 minutes. TDS's launch of its Mobile MVNO product, TDS Mobile, company-wide in Q2 2025, is a direct move to capture this mobile-first audience. To succeed, this new offering must deliver a seamless digital experience, including proactive, personalized service-something 72% of Gen Z value for brand loyalty.

The key takeaway is that a clunky app or a slow chatbot will send them straight to a competitor. They expect the service to be as fast as the fiber connection itself.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Technological factors

You're looking at Telephone and Data Systems, Inc. (TDS) and seeing a company in the middle of a massive technological pivot, and you're right. The core takeaway for 2025 is that TDS is transforming from a diversified regional telecom to a focused, fiber-centric infrastructure player. This shift is a direct response to the market's demand for high-speed, future-proof connectivity, and it's backed by serious capital commitment.

The company's technological strategy is simple: build a fiber backbone, shed legacy copper, and re-enter the mobile market as a lean competitor. The strategic sale of the UScellular wireless operations to T-Mobile, which closed in August 2025, plus the retention of the tower business, Array Digital Infrastructure, Inc., means the entire focus is now on high-margin, high-capacity infrastructure. That's a defintely smart move.

Aggressive fiber build target of 150,000 new marketable addresses in 2025

The biggest technological driver for TDS is their accelerated fiber-to-the-premise (FTTP) deployment, which is the gold standard for broadband. For the 2025 fiscal year, TDS Telecom is targeting to deliver approximately 150,000 new marketable fiber service addresses, a significant push from the 129,000 addresses added in 2024. This aggressive build is part of a larger long-term goal to reach 1.8 million marketable fiber service addresses, a target they increased by 50% from their previous plan.

Here's the quick math on the investment: TDS Telecom's capital expenditures (CapEx) for 2025 are projected to be between $375 million and $425 million, with over 80% of that capital explicitly focused on fiber expansion. This commitment is essential for competing with cable overbuilders and other fiber providers by offering symmetrical speeds (identical upload and download speeds) up to 8 Gig for residential customers and 10 Gig dedicated connections for businesses.

Goal to reduce legacy copper footprint to just 5% of the service area

The flip side of the fiber build is the strategic retirement of old technology. TDS is actively working to reduce its reliance on its legacy copper network, which is expensive to maintain and cannot support modern broadband speeds. The company's long-term goal is to reduce the addresses served by copper in its footprint to just 5%. This is a critical technological de-risking move, as it cuts operational costs and eliminates the competitive vulnerability of slow, asymmetrical Digital Subscriber Line (DSL) service.

This copper retirement is being accelerated by federal funding programs, specifically the Enhanced Alternative Connect America Cost Model (E-ACAM), which provides monthly support to build fiber in rural areas. TDS is set to receive about $90 million per year for 15 years through E-ACAM, which will largely fund fiber expansions in the rural copper footprint.

Company-wide launch of the TDS Mobile (MVNO) product in Q2 2025

The company-wide launch of the TDS Mobile product, a Mobile Virtual Network Operator (MVNO), in Q2 2025 is a key technological move to re-bundle services and reduce churn. An MVNO means TDS does not own the wireless network but purchases bulk access from a national carrier, allowing them to offer a mobile service with nationwide 5G coverage without the massive CapEx of building and maintaining a wireless network.

This new product, which fully launched in November 2025, is available exclusively to TDS broadband customers and features plans starting at $13.95 per month for by-the-gig and $29.95 per month for unlimited service. It's a low-cost, low-risk way to offer a quad-play bundle (internet, TV, phone, mobile) and increase customer stickiness.

Need to integrate fiber infrastructure with evolving 5G network backhaul demands

The technological landscape demands that fixed fiber networks (TDS Telecom) and wireless infrastructure (Array Digital Infrastructure, Inc.) work together seamlessly. The divestiture of UScellular's wireless operations to T-Mobile, which closed in August 2025, was the catalyst for this new focus. TDS retained Array Digital Infrastructure, Inc., which owns approximately 4,400 towers. T-Mobile immediately signed a 15-year Master License Agreement (MLA) to be a long-term anchor tenant on a minimum of 2,015 incremental towers and extend leases on roughly 600 existing towers.

The fiber build is the critical enabler here. Every 5G small cell and tower requires high-capacity fiber backhaul-the wired connection that carries the massive data volume from the tower back to the core network. TDS Telecom's aggressive fiber expansion, which focuses on delivering multi-gigabit symmetrical speeds, directly addresses this need, positioning the combined TDS/Array structure to be a crucial wholesale partner for all major wireless carriers, not just T-Mobile. They are building the digital highway that 5G needs to run on.

• Retain 4,400 towers under Array Digital Infrastructure, Inc.
• Secure 15-year MLA with T-Mobile for tower tenancy.
• Fiber provides backhaul for 5G, supporting up to 10 Gig dedicated business connections.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Legal factors

The legal landscape for Telephone and Data Systems, Inc. (TDS) in 2025 is defined by high-stakes litigation, a fragmented and rapidly expanding state-level data privacy compliance burden, and critical Federal Communications Commission (FCC) oversight on network infrastructure strategy.

You need to focus on where regulatory risk directly impacts cash flow and strategic pivots. The successful navigation of the UScellular divestiture, for instance, created an opportunity for significant debt reduction, but the ongoing securities litigation is a major financial overhang.

Ongoing litigation risk related to network build-out and right-of-way disputes.

TDS faces persistent legal risk, notably from a major securities fraud class action lawsuit that survived a motion to dismiss in late 2024 and early 2025. This suit alleges that TDS and its former subsidiary, UScellular (now Array Digital Infrastructure, Inc.), made misleading statements regarding UScellular's promotional activities and their impact on subscriber churn and profitability.

While specific costs for right-of-way disputes related to TDS Telecom's fiber build-out are not publicly itemized, the sheer volume of new fiber addresses-with 27,000 marketable fiber services addresses delivered in the second quarter of 2025 alone-means the risk of local permitting and right-of-way conflicts remains high. The FCC's efforts to streamline deployment rules may mitigate this long-term, but near-term local disputes are a constant operational drag.

• Securities Litigation Status: Class action against TDS and former UScellular officers survived a motion to dismiss in late 2024.
• Financial Impact Indicator: TDS reported a Net income (loss) attributable to common shareholders of $(5) million for the second quarter of 2025, underscoring the pressure on profitability amid legal and operational challenges.

Compliance with evolving state and federal data security and privacy laws.

The patchwork of U.S. data protection laws is becoming substantially more complex in 2025. TDS, as a provider of wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide, must comply with a rapidly expanding set of state-level requirements.

A total of eight new comprehensive state privacy laws took effect in 2025, including those in Delaware, Iowa, Maryland, and New Jersey, bringing the total number of states with such laws to 16. This forces a significant, non-uniform compliance investment. For example, Maryland's law imposes stricter data minimization rules, and Colorado's law requires enhanced protections for biometric data starting July 1, 2025.

Here's the quick math: a national operator must now manage 16 distinct sets of consumer rights, consent rules, and data protection assessments (DPA), rather than a single federal standard. This is defintely a high-cost, high-risk area.

FCC oversight on network deployment standards and service quality.

FCC oversight is a major factor, particularly in strategic transactions and network build-out. The closure of the sale of UScellular's wireless operations to T-Mobile on August 1, 2025, was contingent on regulatory approvals, including the FCC's. This successful navigation allowed TDS to plan for debt redemption of approximately $1.1 billion, projected to yield around $80 million in annual interest savings.

In terms of deployment, the FCC is actively trying to help, not just regulate. In September 2025, the Commission initiated a Notice of Proposed Rulemaking (NPRM) to accelerate wireless infrastructure buildout, specifically targeting state and local regulations that impede 5G and future 6G deployment. This regulatory push is a tailwind for TDS Telecom's fiber strategy and Array Digital Infrastructure's tower business, which owns approximately 4,400 towers post-divestiture.

Corporate governance focus on insider trading and ethical compliance programs.

Strong corporate governance is a legal requirement and an investor expectation, especially given the high-value strategic transactions in 2025. TDS maintains a formal Code of Business Conduct and Ethics and a Policy Regarding Insider Trading and Confidentiality.

The company must diligently monitor and report all transactions, as evidenced by a Form 4 filing in November 2025 detailing an insider's gift of 502 common shares. More critically, the ongoing securities class action lawsuit directly implicates the ethical conduct and fiduciary duty of certain officers and directors, placing the company's governance framework under intense scrutiny from shareholders and the courts. The 2025 Annual Meeting included the standard advisory vote on executive compensation (Say-on-Pay) and the ratification of PricewaterhouseCoopers LLP as the independent registered public accountants for the fiscal year ending December 31, 2025.

Telephone and Data Systems, Inc. (TDS) - PESTLE Analysis: Environmental factors

The environmental factors for Telephone and Data Systems, Inc. (TDS) in 2025 are dominated by the massive network modernization effort, which creates both a short-term construction waste challenge and a long-term energy efficiency opportunity. The divestiture of UScellular and OneNeck IT Solutions will defintely shrink TDS's overall environmental footprint, but the core wireline business (TDS Telecom) still faces increasing investor pressure on climate disclosure and the material risk of extreme weather events.

Large-scale fiber construction requires managing material sourcing and waste disposal.

TDS Telecom's strategic pivot toward becoming a fiber-centric provider is the single largest environmental undertaking for the company in 2025. This year, the company is targeting the delivery of approximately 150,000 new marketable fiber service addresses, a significant capital expenditure that drives material sourcing and waste disposal concerns.

The core environmental challenge is managing the transition from legacy copper to fiber-optic cable. TDS Telecom aims to reduce the addresses served by copper in its footprint to just 5%, meaning a large volume of copper and associated infrastructure must be decommissioned, recovered, and recycled. While fiber construction crews are responsible for site cleanup, including filling holes and applying topsoil and seed, the sheer volume of retired copper presents a major waste stream that demands a robust, transparent recycling program to mitigate environmental impact and capture commodity value.

Increased ESG (Environmental, Social, Governance) reporting pressure from investors.

Investor scrutiny on Environmental, Social, and Governance (ESG) performance remains high in 2025, pushing TDS to maintain and expand its disclosure. The company adheres to major global frameworks, including the Sustainability Accounting Standards Board (SASB) and the Global Reporting Initiative (GRI).

The 2023 Materiality Assessment, which guides their ESG strategy, identified 'GHG Emissions/Energy Mgmt.' and 'Service Disruption' as key topics. The sale of UScellular and OneNeck IT Solutions in 2024/2025 means the 2025 financial and operational data will reflect a smaller, more streamlined company, which will inherently change the scale of the environmental reporting. However, the core expectation from shareholders remains: show a clear path to reduced emissions per customer connection. The company's reported 2023 emissions provide a baseline, though it includes the divested businesses:

The new 2025 baseline for the remaining TDS Telecom and Array Digital Infrastructure (formerly UScellular's tower business) will be substantially lower than the 2023 total of 293,030 metric tons of $\text{CO}_2$ equivalent ($\text{mtCO}_2\text{e}$), but the pressure to set new, aggressive reduction targets will not diminish.

Energy consumption of new fiber and tower infrastructure must be monitored for sustainability.

The shift to fiber-optic technology is a long-term win for energy efficiency. Fiber-to-the-Premises (FTTP) networks consume significantly less power per gigabit of data transmitted than legacy copper Digital Subscriber Line (DSL) networks. TDS Telecom's capital expenditures for 2025 are projected to be between $375 million and $425 million, largely dedicated to this fiber expansion.

While the new network is more efficient, the sheer scale of the operation still requires rigorous energy management. For example, a 2024 energy efficiency project at a former UScellular data center in Chicago saved nearly 8 million kilowatt hours (kWh) of energy annually. This demonstrates that even with new infrastructure, continuous optimization is a critical factor for managing the Scope 2 emissions (purchased electricity) across the remaining TDS and Array Digital Infrastructure assets, including the roughly 4,409 towers retained by Array Digital Infrastructure.

Risk of service disruption from extreme weather events impacting physical assets.

The escalating frequency and intensity of extreme weather events-hurricanes, floods, wildfires, and severe cold-represent a material financial and operational risk for TDS. Telecommunications infrastructure is highly vulnerable, and natural catastrophes ranked as the third top risk globally in the 2025 Allianz Risk Barometer.

TDS Telecom operates in 31 states, exposing its network assets to a diverse range of climate-related threats. The company mitigates this risk through resilience measures, which are essential for business continuity (BC). One simple one-liner: Extreme weather events are now a core business interruption risk. The mitigation strategies include:

• Building network redundancy in critical areas.
• Employing 24/7 network monitoring with advanced data analytics.
• Maintaining disaster response plans and deploying temporary solutions.
• Using alternative power sources (like generators) to maintain service during grid outages.

The cost of these resilience investments and the potential for service interruption fines are a constant headwind against the 2025 adjusted EBITDA forecast for TDS Telecom, which is projected to be between $320 million and $360 million.