Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Shareholder Meeting (May 2011)
21 slides from Telephone And Data Systems's shareholder meeting presentation, May 19, 2011
Slide 1: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 19, 2011
Slide 2: LeRoy T. Carlson Jr., President and CEO
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. 4
Slide 5: TDS Overview
TDS Overview • Diversified telecommunications provider • Two principal businesses: • U.S. Cellular—wireless • TDS Telecom—wireline • More than 7 million customers in 36 states • Fortune 500® member • Long-term focus • Strong balance sheet 5
Slide 6: TDS Long-term Financial Objectives
TDS Long-term Financial Objectives • Financial 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 6
Slide 7: Delivering Value to Shareholders
Delivering Value to Shareholders TDS Annual Dividend Rate * Dividends for 2005 and prior years have been retroactively adjusted for the effect of the 2005 stock dividend. 7
Slide 8: TDS 2010 Overview
TDS 2010 Overview • New U.S. Cellular President and CEO Mary N. Dillon in June • Profitability impacted by cost to acquire wireless customers; declines in wireless revenues and customers • Increased smartphone sales and use of data services • Improved wireline revenues and operating margins 8
Slide 9: U.S. Cellular Overview
U.S. Cellular Overview • Sixth-largest wireless carrier in the U.S. • High-speed nationwide network • Competitive device portfolio— including Android®, BlackBerry®, Windows® smartphones • Innovative and outstanding customer experiences 9
Slide 10: Differentiating through the Customer Experience
Differentiating through the Customer Experience • Highest call quality and network satisfaction of any nationwide carrier • The Belief ProjectSM—innovative customer experiences • 1.8 million customers on Belief Plans as of March 2011 10
Slide 11: Increasing Smartphone Sales and Data Use
Increasing Smartphone Sales and Data Use • Doubled smartphone sales in 2010 vs. 2009 • Data use driving increase in average revenue per customer • Adding 13 smartphones in 2011 • Smartphones now available for prepaid customers 11
Slide 12: Ensuring Outstanding Communications Experiences
Ensuring Outstanding Communications Experiences • Eleven consecutive awards for call quality from J.D. Power and Associates • Continuing to strengthen capacity • Accelerating 4G/LTE rollout • Spectrum sufficient for initial LTE rollout 12
Slide 13: Improving Agility and Efficiency
Improving Agility and Efficiency • Enablement initiatives to develop and deliver services faster and more effectively • Billing and Operational Support System: Vendor selected for implementation • Enterprise Data Warehouse/Customer Relationship Management: More targeted marketing, deeper customer un
Slide 14: Strong Future for Wireless
Strong Future for Wireless • Smartphones becoming “essentials” for nearly all consumer and business segments • Explosive growth in mobile traffic projected • Evolution of tablets and development of other mobile devices will provide mobile capabilities beyond our imagination • Increase in data use wi
Slide 15: TDS Telecom Overview
TDS Telecom Overview • Eighth-largest local exchange company in U.S. • Strategy to be preferred broadband provider to residential and commercial customers • Increased revenues and operating margins in 2010 • Approved in 2010 for 44 broadband stimulus projects 15
Slide 16: Driving Broadband Growth
Driving Broadband Growth ILEC Residential Broadband Penetration • Increasing broadband penetration through faster speeds, bundling • 75+ percent of residential customers had 3Mbps or higher speeds in 2010 • More than 50 percent of ILEC lines capable of 10Mbps 16
Slide 17: Increasing Residential Customer Loyalty
Increasing Residential Customer Loyalty • Successful bundling strategy: broadband + voice + video • 62 percent of ILEC residential customers have 2 or more services • Monthly churn rate for triple-play customers is .05 percent 17
Slide 18: Building A Strong Commercial Base
Building A Strong Commercial Base • Nearly doubled managedIP stations in 2010 vs. 2009; available in 13 states • Added hosted and managed services (HMS) offerings • Looking for additional HMS acquisition opportunities 18
Slide 19: Looking Forward
Looking Forward • U.S. Cellular • Attract new customers through improved advertising, marketing and sales strategies • Offer at least 13 new smartphones and devices • Accelerate 4G/LTE rollout and add 3G capacity • TDS Telecom • Increase residential market share by increasing broadband speeds, bundl
Slide 20: Thank You
Thank You • To the 12,100 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 20
Slide 21: Annual Meeting of Shareholders
Annual Meeting of Shareholders May 19, 2011
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