Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — Barclays Capital Global Communications, Media and Technology Conference 2011
28 slides from Telephone And Data Systems's conference presentation, May 24, 2011
Slide 1: Barclays Capital Global Communications, Media and Technology Conference
May 24, 2011 Barclays Capital Global Communications, Media and Technology Conference
Slide 2: Mary N. Dillon, President and CEO
Mary N. Dillon President and CEO 2
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 expectati
Slide 4: U.S. Cellular Operations
U.S. Cellular Operations • High‐quality nationwide network • 47M operating pops • 91M total pops • 6M customers in 26 states 4
Slide 5: Recognized for Service and Quality
Recognized for Service and Quality Highest Call Quality Performance Among Wireless Cell Phone Users in North Central Region, Eleven Times in a Row J.D. Power and Associates U.S. Cellular named among Top 200 Most Trustworthy companies PC Magazine Readers' Choice Award (2010 Cellular Service Providers
Slide 6: Strategy to Differentiate
Strategy to Differentiate • Understand our target customers • Leverage our understanding to create a differentiated strategy • Unique value proposition: • Leverage our core strengths • Focus on building loyal advocates 6
Slide 7: The Belief Project
The Belief Project • No contract after the first • Reward Points • Phone replacement • Billing discounts on online payment • Overage cap/forgiveness 7
Slide 8: Belief Project Expected Results
Belief Project Expected Results • More customers in stores → incremental gross postpaid additions of at least 10% • Customers spending more → incremental growth in ARPU • Customers staying longer → improvement in already low postpaid churn 8
Slide 9: Happiest Customers in Wireless
Happiest Customers in Wireless • New campaign designed to increase awareness and consideration of U.S. Cellular • Encourages switching to U.S. Cellular for network quality, competitive devices • Highlights unique benefits of U.S. Cellular from customer’s point of view 9
Slide 10: Postpaid Churn Rate
JK US. Cellular Postpaid Churn Rate 1.6% - 1.4% — 1.2% - 1.0% - 0.8% - 0.6% - 0.4% — 0.2% - 0.0% - Ql Q2 Q3 Q4 m 2009 m 2010 m 2011 10
Slide 11: Postpaid ARPU
K US. Cellular Postpaid ARPU LT $52.00 - $51.75 - $51.50 + $51.25 - $51.00 S50:75) 4 $50.50 $50.25 ; $50.00 1 T 1 Ql Q2 Q3 Q4 Ql Q2 Q3 Q4 ali ‘09 ~='09 ‘09 '09 ‘10 '10 ‘10 '10 ‘11 ! 11
Slide 12: Growing Smartphone Penetration
Growing Smartphone Penetration 12
Slide 13: LTE Deployment Plan for 2011
LTE Deployment Plan for 2011 • First roll out planned for 24 markets by November 2011 • Covers 25‐30% of total subs • Approximately 1,250 cell sites • All using 700 MHz spectrum • Target a full suite of devices at roll‐out 13
Slide 14: Innovating the Customer Experience
Innovating the Customer Experience • 6 million customers • The Belief Project • Valuable spectrum • 4,400 owned towers • Los Angeles minority position • Growth and profitability 14
Slide 15: Jane W. McCahon, Vice President, Corporate Relations
Jane W. McCahon Vice President, Corporate Relations 15
Slide 16: TDS Telecom
Me TDS Telecom
Slide 17: TDS Telecom Operations
TDS Telecom Operations 1.1 million access line equivalents ILEC ‐‐ primarily residential CLEC ‐‐ primarily small / medium commercial 17
Slide 18: Strategies
Strategies • Compete aggressively for broadband services to consumers and businesses to win market share • Prepare for IPTV launch • Selective M&A • Tuck‐in RLECs • Hosted and managed services • Federal Broadband Stimulus Projects 18
Slide 19: Penetration of Bundled Plans
Penetration of Bundled Plans Bundling Reduces Churn Single Play 1.73 % Double Play DSL 1.17 % Double Play DISH .90 % Triple Play .42 % 19
Slide 20: ILEC Data Growth
ILEC Data Growth $ Millions 20
Slide 21: Commercial Services
Commercial Services • Lead with flagship offering, managedIP • Broaden offering with new products and services and bundle them effectively • Build and integrate hosted and managed services offerings 21
Slide 22: Telephone and Data Systems
Fad) TELEPHONE AND TDS. pata systems”
Slide 23: TDS Overview
TDS Overview • Diversified telecommunications company with two principal business units U.S. Cellular (83%‐owned)—wireless; 95% retail postpaid (NYSE:USM) TDS Telecom (wholly‐owned)—wireline; broadband focus • 7.1 million customers in 36 states • Fortune 500® member • Controlled company with focus o
Slide 24: Delivering Value to Shareholders
Delivering Value to Shareholders Shares Repurchased Dividends Per Share (Common/Special Common) (in millions) 7 6 5 4 3 2 1 0 * Retroactively adjusted for the effect of the 2005 stock dividend. 2007 2008 2009 2010 24
Slide 25: Liquidity – March 31, 2011
In millions Liquidity – March 31, 2011 • ~4,400 owned towers – Tower rental revenue of $35M in 2010 • Los Angeles minority position, carried at book – $65M of investment income in 2010 25
Slide 26: Long-Term Debt Repayment
Long-Term Debt Repayment In millions 26
Slide 27: Investment Highlights
Investment Highlights • Strategies focused on providing exceptional customer experiences • Well-positioned in existing markets • Experienced management teams • Strong balance sheet; exceptional flexibility • Fortune 500® company 27
Slide 28: Questions?
May 24, 2011 Questions? facebook.com/telephoneanddatasystems twitter.com/tdscorporate