Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Shareholder Meeting (May 2012)
19 slides from Telephone And Data Systems's shareholder meeting presentation, May 17, 2012
Slide 1: Annual Meeting of Shareholders
May 17, 2012 Annual Meeting of Shareholders
Slide 2: Annual Meeting of Shareholders - LeRoy T. Carlson, Jr., President and CEO
May 17, 2012 Annual Meeting of Shareholders LeRoy T. Carlson, Jr., President and CEO
Slide 3: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995 All information set forth in this presentation, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates and expectatio
Slide 4: TDS Mission
TDS Mission To provide outstanding communications services to our customers and meet the needs of our shareholders, our people and our communities.
Slide 5: TDS Overview
TDS Overview • Diversified telecommunications provider • Two principal businesses: • U.S. Cellular—wireless • TDS Telecom—wireline • Approximately seven million customers in 36 states • Fortune 500® member • Long-term focus
Slide 6: TDS Long-term Financial Objectives
TDS Long-term Financial Objectives • Financial strength and flexibility to support business unit strategies • Achieve return on capital greater than weighted average cost of capital in each business • U.S. Cellular—8.7% • TDS Telecom—8.5% • Maintain investment-grade debt ratings
Slide 7: Advocating for Our Businesses
Advocating for Our Businesses • New FCC rules on intercarrier compensation and universal service funding • Many areas still under review and discussion • TDS advocating on issues that impact our ability to serve customers effectively
Slide 8: TDS 2011 Overview
TDS 2011 Overview • Increased revenues, improved profitability in 2011 • U.S. Cellular: Growth in smartphone sales and data services, average revenue per unit • TDS Telecom: Increase in broadband customers and data revenues
Slide 9: U.S. Cellular Overview
U.S. Cellular Overview • Seventh-largest wireless carrier in the U.S. • High-speed nationwide network • Competitive device portfolio— including Android®, BlackBerry®, Windows® smartphones • Innovative and outstanding customer experiences
Slide 10: Differentiating through the Customer Experience
Differentiating through the Customer Experience • Raising the standards for outstanding customer experiences • Providing compelling reasons to switch to U.S. Cellular • Expanding distribution with prepaid service at Walmart • Targeting customer segments more effectively • 3.3 million Belief Plan cus
Slide 11: Increasing Smartphone Sales and Data Use
Increasing Smartphone Sales and Data Use • Smartphone customers were 34% of customer base in the first quarter • Smartphone penetration and data use driving ARPU growth • Tiered data plans introduced in May • Effectively managed subsidies by offering diverse portfolio of devices
Slide 12: Ensuring Outstanding Communications Experiences
Ensuring Outstanding Communications Experiences • Increasing network quality and capacity as data traffic increases • Thirteen consecutive quality awards from J.D. Power and Associates • Bringing 4G LTE access to 50 percent of customers in 2012
Slide 13: Improving Agility and Efficiency
Improving Agility and Efficiency • Enablement initiatives to develop and deliver services faster and more effectively • Web: Online sales and account management, customer ratings and feedback • Enterprise Data Warehouse/Customer Relationship Management: More targeted marketing, deeper customer under
Slide 14: TDS Telecom Overview
TDS Telecom Overview • Seventh-largest local exchange company in U.S. • Residential voice, video and broadband service provider • Broadband, VoIP and Hosted and Managed Services for business customers • Increased revenues in 2011, reduced costs and improved efficiency
Slide 15: Driving Broadband Growth
Driving Broadband Growth • Increasing broadband speeds and penetration • 57 percent of ILEC customers had 5Mbps or higher speeds in 2011 • Nearly 95 percent of ILEC lines equipped for broadband in the first quarter
Slide 16: Increasing Residential Customer Loyalty
Increasing Residential Customer Loyalty • Successful bundling strategy: broadband + voice + video • Nearly 68 percent of ILEC residential customers have 2 or more services • Monthly churn rate for triple-play customers is 0.5 percent • TDS TV® expanding to more markets
Slide 17: Building A Strong Commercial Base
Building A Strong Commercial Base • Increased managedIP connections 88 percent in the first quarter • Building hosted and managed services (HMS) team/operations • Looking for additional HMS acquisition opportunities
Slide 18: Thank You
Thank You • To the 12,300 dedicated associates and employees of TDS, U.S. Cellular, TDS Telecom and Suttle-Straus • To the shareholders and debt holders of TDS and U.S. Cellular
Slide 19: Annual Meeting of Shareholders
May 17, 2012 Annual Meeting of Shareholders
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