Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Kaufman Bros. 11th Annual Investor Conference (September 2008)
15 slides from Telephone And Data Systems's conference presentation, Sep 4, 2008
Slide 1: Kaufman Bros. 11th Annual Investor Conference
Kaufman Bros. 11th Annual Investor Conference Kenneth R. Meyers Executive Vice President and Chief Financial Officer The W Hotel, New York September 4, 2008 1
Slide 2: Safe Harbor
Safe Harbor 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,
Slide 3: TDS - 6/30/08
TDS - 6/30/08 • Diversified telecommunications company with 7.4 million customers – U.S. Cellular (81% owned) – wireless … principally postpaid – TDS Telecom (100% owned) – wireline…focused on broadband • 2007 revenues $4.8 billion • Strong balance sheet…investment grade… $1.1 billion cash • Paid 12
Slide 4: U.S. Cellular and TDS Telecom business units
FRusCellular gw” us. cellular GE TDs Telecom - ILEC MO tps Telecom - CLEC
Slide 5: U.S. Cellular
U.S. Cellular as of 6/30/08 • 6th largest wireless provider differentiating with high customer satisfaction model • 45.5 M operating pops; 82.9 M total pops; 6.2 M customers in 26 states • Focused on exceptional customer experience • Low churn rate • Broad distribution… ~1,600 points of presence • E
Slide 6: U.S. Cellular Growth Strategies
U.S. Cellular Growth Strategies • Focus on the postpay customer while pursuing profitable prepaid customers • Differentiate with high customer satisfaction: – Quality network – Broad distribution – Excellent customer service – Competitive data and product offerings • National, wide-area and family p
Slide 7: Strong Data Revenue Growth
Strong Data Revenue Growth $368 % of Service 13% Revenue 12% $217 10% $131 7% $116 $124 $68 5% 3% 2004 2005 2006 2007 Q1 ' 08 Q2 ' 08 Dollars in millions 7
Slide 8: Average Monthly Revenue Per Customer
Average Monthly Revenue Per Customer $54.00 $53.27 $53.00 $52.24 $52.00 $51.13 $51.00 $50.00 $49.00 $48.00 $47.23 $47.00 $46.00 $45.24 $45.00 $44.00 8 2005 2006 2007 1 Q '08 2 Q '08
Slide 9: EVDO Trials
EVDO Trials • 2005: Rev. 0 technical trials • 2006 and 2007: Rev. 0 market launch in Milwaukee • 2008: Rev. A roll-out in selected markets in H2, 2008 • By year end approximately 30% of covered pops will have Rev. A 9
Slide 10: TDS Telecom
TDS Telecom® June 30, 2008 • One of the 10 largest local exchange companies • 81% rural and small town • Modern network • ~1.2 million access line equivalents in 28 states • 206,600 DSL lines (ILEC and CLEC) • 346,100 long-distance ILEC lines ..60% penetration • CLEC – natural extension of ILEC busi
Slide 11: TDS Telecom
TDS Telecom® 11 12
Slide 12: TDS Telecom Strategy
TDS Telecom® Strategy A Broadband Communications Company • Provide outstanding customer satisfaction • Be the preferred broadband provider in its markets • Bundle aggressively – bigger the bundle the less the churn – One service - voice churn 1.5% – Two services churn – voice + DSL 1.3% – Two servic
Slide 13: Growth in DSL
Growth in DSL 250,000 200,000 150,000 CLEC 100,000 ILEC 50,000 0 2002 2003 2004 2005 2006 2007 1Q 2Q '08 '08 13
Slide 14: Stock Repurchase
Stock Repurchase • U.S. Cellular • Repurchased 150,000 shares in Q2’08 for $8.3 million • Repurchased 150,000 shares in Q1’08 for $10.8 million • Repurchased 1,006,000 shares in 2007 for $83.3 million • TDS - $250 million of special common shares authorized ($38.7 million remains) • Repurchased 1,01
Slide 15: TDS: Excellent Prospects
TDS: Excellent Prospects • Successful wireless and wireline operations delivering customer satisfaction • Profitable revenue growth and cash flow growth • Strong business units – Well positioned in existing markets – Proven business strategies focused on network quality, customer service and competi
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