Telephone And Data Systems — Financial Results
TDS Sold Its Wireless Business to T-Mobile, Fundamentally Changing What the Company Is
| Metric | Value |
|---|---|
| Total consideration received | $4,293.8 million |
| Cash proceeds | $2,628.8 million |
| Debt assumed by T-Mobile | $1,665.0 million |
| Close date | August 1, 2025 |
On August 1, 2025, TDS's subsidiary Array (formerly US Cellular) sold its entire wireless operations and select spectrum assets to T-Mobile. This was a company-defining event — wireless had been a core TDS business for decades. What remains is a broadband and fiber provider (TDS Telecom) and a cell tower leasing company (Array), with large amounts of additional spectrum still being sold off in stages.
Additional Spectrum Sales Worth Over $2 Billion Are Still in Progress
| Buyer | Assets | Price | Status |
|---|---|---|---|
| AT&T | 3.45 GHz and 700 MHz licenses | $1,018.0 million | Closed Jan 13, 2026 |
| Verizon | AWS, Cellular and PCS licenses | $1,000.0 million | Expected Q2/Q3 2026 |
| T-Mobile | 700 MHz licenses | $85.0 million | Pending regulatory approval |
| T-Mobile | 600 MHz licenses | $86.4 million | Pending regulatory approval |
The wireless exit is not a single transaction — it is a multi-year unwinding. Array is sitting on roughly $1.6 billion in spectrum licenses (radio frequency rights used for wireless communication) on its books that are not yet sold, mostly C-Band spectrum it is trying to monetize opportunistically. The AT&T deal already closed and funded a $10.25-per-share special dividend in February 2026, with TDS receiving its 82% pro-rata share of $725.6 million.
Array's Tower Business Is Growing, Driven by the T-Mobile Master Lease Agreement
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Site rental revenues | $154.7 million | $102.6 million | +51% |
| Owned towers | 4,450 | — | — |
| Total colocations (tenants on towers) | 14,572 | — | — |
| Array Adjusted EBITDA | $194.3 million | $121.9 million | +59% |
As part of the wireless sale, T-Mobile agreed to lease space on an additional 2,015 Array towers for a minimum of 15 years — this Master License Agreement (MLA) is the primary driver behind the 51% jump in site rental revenues. There is a catch: T-Mobile also has temporary leases on roughly 1,800 more towers that it can cancel anytime within 30 months, and Array itself expects these to be cancelled. That means some of the current revenue boost is temporary.
TDS Telecom's Fiber Push Is Growing But Squeezing Profits
| Metric | 2025 | 2024 | Change |
|---|---|---|---|
| Total operating revenues | $1,038.4 million | $1,060.9 million | -2% |
| Adjusted EBITDA | $330.3 million | $349.8 million | -6% |
| Capital expenditures | $406.4 million | $323.8 million | +26% |
| Expansion fiber connections | 160,600 | 126,100 | +27% |
| Incumbent fiber connections | 127,300 | 118,500 | +7% |
TDS Telecom is in the middle of an expensive fiber buildout. Revenue slipped 2% as legacy voice and video customers continue to leave, and divestitures removed $18.5 million of revenue. Meanwhile, capital spending jumped 26% and depreciation (the annual accounting cost of assets wearing out) rose 11% as fiber assets come online — compressing operating income from $105 million to $20 million. Capital spending is expected to rise further to $550–$600 million in 2026.
TDS Significantly Cut Its Debt Load After the Wireless Sale
Before the T-Mobile transaction closed, TDS and Array were carrying substantial debt. Using proceeds from the sale, TDS repaid $781.3 million in term loans, $300 million in secured debt, and Array repaid $713.3 million in term loans. Long-term debt (net) fell by $1,592.3 million during 2025. The company ended the year with total remaining long-term debt obligations of approximately $843.6 million at a weighted average interest rate of 5.9%, a much cleaner balance sheet than it entered the year with.
TDS Common Shareholders Have Not Seen Much Return — and Dividends Remain Uncertain
TDS cut its common dividend from $0.185 per quarter in 2023 to just $0.04 per quarter in 2025, an 78% reduction. The company also spent $108.1 million repurchasing its own common shares at an average of $38.03. Importantly, the filing explicitly states it is "uncertain" how the ongoing strategic review will affect future dividend decisions. Preferred shareholders (a different class of investor with priority claims) continued receiving their fixed payments uninterrupted.