Telephone And Data Systems, Inc. · NYSE:TDS
Telephone And Data Systems — J.P. Morgan SMid Cap Conference 2011
22 slides from Telephone And Data Systems's conference presentation, Dec 1, 2011
Slide 1: J.P. Morgan SMid Cap Conference
December 1, 2011 J.P. Morgan SMid Cap Conference
Slide 2: Kenneth R. Meyers, Executive Vice President and CFO
Kenneth R. Meyers Executive Vice President and CFO 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: Important Information
IMPORTANT INFORMATION: This presentation is not a solicitation of a proxy from any TDS shareholder. This is being done only pursuant to a definitive proxy statement, as supplemented. Additional information relating to the foregoing is included in TDS' proxy materials filed with the Securities and Ex
Slide 5: U.S. Cellular's Top Priorities
U.S. Cellular’s Top Priorities 1. Customer growth 2. Drive smartphone and data penetration 3. Improve margins 5
Slide 6: 1. Stimulating Growth
1. Stimulating Growth Postpaid Churn • Customer satisfaction • Maintain low churn rate • Targeting new customers • Device selection 6
Slide 7: Strong Phone Line-up
Strong Phone Line-up BlackBerry® Motorola HTC 7 ProTM TorchTM 9850 ELECTRIFYTM 7
Slide 8: 2. Smartphone Penetration
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 2. Smartphone Penetration eee Smartphones Sold (% of total devices) Q3 Q4 Q1 Q2 Q3 ‘10 ‘10 ‘11 ‘11 ‘11 Smartphone Customers (% of postpaid base) Q3 Q4 Ql Q2 Q3 ‘10 ‘10 ‘11 ‘11 ‘11 K US. Cellular Postpaid Average Monthly Revenue Per Customer $52.50 $52.25 $52.00
Slide 9: Accelerating 4G/LTE to Manage Data Growth
Accelerating 4G/LTE to Manage Data Growth • First roll out planned for 24 markets • 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 9
Slide 10: 3. Improve Margins
3. Improve Margins • New customers • Increasing ARPU • Growth in inbound roaming revenues • Managing loss on equipment • Spending on Enablement Initiatives • Cost reduction programs 10
Slide 11: TDS Telecom
Me TDS Telecom
Slide 12: Strategy to be preferred provider of broadband, video and voice services
Strategy to be preferred provider of broadband, video and voice services 1. Increase broadband speeds 2. Drive penetration of Double/Triple Play bundles • IPTV 3. Build portfolio of Hosted and Managed Services offerings 12
Slide 13: Growing Broadband
Growing Broadband ILEC HSD customers 44.7% < 4 Mbps 38.6% 5-7 Mbps 16.7% > 10 Mbps Some markets with 25 – 50 Mbps In Millions 13
Slide 14: Bundling to Improve Loyalty
Bundling to Improve Loyalty Customers with more than one service from TDS Telecom are less likely to churn 14
Slide 15: Hosted and Managed Services
Hosted and Managed Services • Growth potential • Logical adjacency to core business • Fragmented supply chain • Strong financial parameters 15
Slide 16: Telephone and Data Systems
Fad TELEPHONE AND TDS. pata SYSTEMS”
Slide 17: TDS Corporate
TDS Corporate 1. Regulatory developments 2. Share consolidation 3. Delivering value to shareholders 17
Slide 18: Regulatory Developments
Regulatory Developments Universal Service Fund and Inter-Carrier Comp Reform • U.S. Cellular and TDS Telecom are active participants • Risks to certain revenue streams, but also opportunities to recover, reduce costs and participate in new programs Other areas of participation: • Spectrum access and
Slide 19: Share Consolidation Update
Share Consolidation Update 1. Share Consolidation Amendment ̶ Reclassification Ratio now: Each Common Share would be reclassified as 1.087 Common Shares Each Series A Common Share would be reclassified as 1.087 Series A Common Shares Each Special Common Share would be reclassified as one Commo
Slide 20: Delivering Value to Shareholders
Delivering Value to Shareholders 37 years of consecutive dividend increases Quarterly Dividends Shares Repurchased Per Share (Common & Special Common) $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 * Retroactively adjusted for the effect of a 2005 stock dividend. 15% of shares out
Slide 21: 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 21
Slide 22: Questions?
December 1, 2011 Questions? facebook.com/telephoneanddatasystems twitter.com/tdscorporate
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