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TDS Telecom
TDS Telecom
TDS Telecom
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TDS Telecom is an American telecommunications company with headquarters in Madison, Wisconsin. It is a wholly owned subsidiary of Telephone and Data Systems Inc, and is the seventh-largest local exchange carrier in the U.S.[1] TDS Telecom offers telephone, broadband Internet and television services to customers in 30 states and more than 900 rural and suburban communities, though it also serves some urban metropolitan communities.[1] It also sells businesses communications services, including VoIP (managed IP hosted) phone service, dedicated broadband Internet and hosted-managed services. With headquarters in Madison, TDS Telecom operates TDS Broadband LLC, and BendBroadband, and TDS Metrocom, LLC. Combined, the company employs nearly 3,300 people.[1] In 2019, TDS Telecom and parent company TDS Inc. celebrated 50 years in business.

Key Information

TDS Telecom is a participant in the FCC's Connect America Fund, also known as A-CAM. With this funding TDS is on a ten-year push to bring high speed internet to the furthest reaches of its rural serving areas. Depending on location, the vast majority of TDS customers in eligible rural areas are expected to receive broadband speeds of 25 Mbit/s download and 3 Mbit/s upload (25/3). The remaining customers are expected to receive broadband speeds at 10/1 and 4/1 Mbit/s. In less rural areas, TDS provides much higher broadband speeds, from 100 Mbps to 8 Gbps.

More recently, TDS has been launching new fiber to the home services across Wisconsin and Idaho. The new markets in Wisconsin include: Deforest, Windsor, McFarland, Monona Grove, Cottage Grove, Oregon, and Merrimac municipalities, all within Dane County. In Idaho the cities cities Coeur d'Alene, Rathdrum, Hayden, and Post Falls, all within Kootenai County. These services are offered by TDS through CLEC TDS Metrocom, LLC which is operated by TDS Telecom. Fiber to the home markets are 1 Gigabit speed markets with multiple speed offerings available to customers.

TDS Metrocom

[edit]

TDS Metrocom is TDS Telecom's local phone business, providing customers with phone, data, and Internet services in a five-state area in the midwestern United States. Its central office is located at 3416 University Ave in Madison, Wisconsin. Unlike Telecom, Metrocom used a deal brokered by Tommy Thompson to allow for local phone service competition on AT&T's lines in exchange for long distance plan selling rights over landline. They are no longer offering this service to new residential subscribers, but continue to maintain existing contracts, new features, or new locations on existing accounts. TDS Metrocom is currently in maintenance mode, where they are allowed to maintain existing telephone and Internet installations but not add any new telephone or Internet accounts. Business accounts are still available.

Subsidiaries

[edit]

Subsidiaries include:[2][3]

See also

[edit]

References

[edit]
[edit]
Revisions and contributorsEdit on WikipediaRead on Wikipedia

TDS Telecom

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from Grokipedia
TDS Telecom is an American wireline telecommunications company headquartered in , that provides high-speed , TV entertainment, phone services, and related offerings to residential, small business, and enterprise customers in small- to mid-sized urban, suburban, and rural communities across the . As a wholly owned of , Inc. (NYSE: TDS), it focuses on delivering reliable connectivity using fiber-optic networks and advanced technologies, serving over 1.1 million total connections and 186,100 cable subscribers (as of September 2025). Founded in 1969 by LeRoy T. Carlson, the founder of its parent company TDS, TDS Telecom originated through strategic acquisitions of independent local telephone companies, building a foundation in traditional wireline services. Over the decades, the company expanded its portfolio to include , , and VoIP telephony, with significant growth in fiber infrastructure; as of September 2025, it had reached over 1 million fiber service addresses as part of an ongoing multi-year expansion plan. TDS Telecom now operates in 31 states, serving nearly 1,000 communities with services like speeds up to 8 Gbps, dedicated business networking, and managed IT solutions. With approximately 3,400 employees, TDS Telecom emphasizes local service and customer support, maintaining a presence in diverse regions from to while adapting to technological advancements in . The company has pursued growth through acquisitions, completing eight since 2016, including key deals in 2017 to bolster its footprint in competitive markets.

History

Founding and Early Development

TDS Telecom was established in 1969 as a of , Inc. (TDS Inc.), which was founded by LeRoy T. Carlson through the acquisition of 10 small, independent telephone companies serving rural communities in . Initially focused on delivering basic local telephone services via analog networks, the company targeted underserved rural areas where larger carriers had limited presence. This foundational approach aligned with the broader mission of TDS Inc. to consolidate and operate independent telcos, ensuring reliable voice connectivity for small towns and farms. Under LeRoy T. Carlson's leadership as the founding chairman, TDS Telecom integrated seamlessly into TDS Inc.'s portfolio of rural telephone operations, emphasizing operational efficiency and community-focused service. By the mid-1970s, the company had expanded to support 39 affiliated companies across 17 states, serving over 100,000 telephone lines, which necessitated significant employee growth to 503 staff members dedicated to network maintenance and customer support. These early efforts included compliance with (FCC) mandates for universal telephone service in rural areas, which required carriers to extend basic voice access to high-cost, low-density regions under principles established by the Communications Act of 1934. Entering the late , TDS Telecom achieved key operational milestones, reaching 47 local offices and more than 170,000 telephones in service by 1979, solidifying its role in sustaining analog infrastructure for basic in small communities. This growth reflected Carlson's vision for a decentralized model of rural , distinct from urban-focused giants like . Meanwhile, the parent TDS Inc. briefly referenced its emerging interest in data services through a 1970 name change, though wireline voice remained the core focus for TDS Telecom during this era.

Expansion Through Acquisitions

TDS Telecom pursued an aggressive acquisition strategy in the , focusing on rural companies primarily in the Midwest to consolidate its in underserved areas. Starting with 52 companies, the firm expanded to 88 by 1992 through targeted purchases of independent local exchange carriers, enhancing operational efficiencies via centralized purchasing and engineering support. This period also marked entry into markets, as several acquired properties included cable franchises, leading to the operation of 16 cable systems serving over 30,000 homes by 1985. In the , TDS Telecom continued its growth by acquiring additional independent telephone companies, adding five in 1992 and two more in 1993, bringing the total to 92 operating companies across 28 states. These acquisitions increased access lines to over 350,600 by 1993 and scaled the workforce to approximately 3,800 employees by 1994, reflecting the challenges of integrating diverse rural operations into a cohesive structure. Integration efforts involved creating specialized subsidiaries, such as TDS Cable Communications in , to manage the complexities of scaling while maintaining local service quality, though staffing shortages in areas like cable operations necessitated new hires and management restructuring. By the early , this acquisition-driven approach had expanded TDS Telecom's presence to 30 states, with over 1 million access line equivalents and service to more than 900 rural and suburban communities. Regulatory support played a key role, as TDS Telecom, classified as a rural telephone company, participated in early programs established under the 1996 Telecommunications Act, which provided subsidies to fund infrastructure expansions in high-cost rural areas and ensure affordable access.

Transition to Broadband Services

In the late , TDS Telecom began transitioning from traditional to services, primarily through the introduction of (DSL) technology. This shift was propelled by increasing customer demand for higher-speed connections to support emerging online applications and . In 2000, the company launched DSL services in several of its (ILEC) markets, enabling always-on connectivity and download speeds significantly faster than dial-up. During the 2000s, TDS Telecom further evolved its offerings by integrating voice over (VoIP) services and expanding into bundled video packages. In 2008, the company introduced managedIP, a hosted VoIP solution designed for customers, which converged voice and data over IP networks for enhanced features and cost efficiency. To complement broadband growth, TDS pursued cable acquisitions, such as the 2013 purchase of Baja Broadband, allowing it to bundle high-speed with television services and create triple-play packages in select markets. By 2010, TDS Telecom had achieved notable penetration in its service areas, with approximately 38 percent of ILEC residential customers subscribing to speeds of 5 Mbps or higher, reflecting an aggressive expansion strategy that boosted data revenues. The company also initiated early fiber-optic pilots in suburban markets, such as a 2013 project in , to test gigabit-capable infrastructure and prepare for future upgrades beyond DSL limitations. This transition was not without challenges, as TDS Telecom faced intensifying competition from national providers like cable operators and wireless carriers entering rural and suburban markets with alternative options. To address rural deployment hurdles, the company adapted to the Federal Communications Commission's 2011 Connect America Fund Phase I, which reformed subsidies to prioritize broadband expansion in high-cost areas, enabling TDS to secure funding for infrastructure improvements.

Corporate Structure

Relationship with Parent Company

TDS Telecommunications LLC (TDS Telecom) has operated as a wholly owned of , Inc. (TDS Inc.) since 1969, with its headquarters in , falling under the direct oversight of the parent company. TDS Telecom shares key resources with TDS Inc., including consolidated financial reporting and governance structures that ensure alignment on strategic priorities. For instance, in the third quarter of 2025, TDS Telecom's operations contributed to the parent's total operating revenues from continuing operations of $308.5 million. Executive leadership at TDS Telecom, such as the appointment of Ken Dixon as president and CEO in June 2025, reflects the parent's involvement in high-level decisions. Within TDS Inc.'s portfolio, TDS Telecom holds a distinct strategic role focused on wireline , voice, and video services, separate from the wireless operations previously managed through United States Cellular Corporation, which was sold in 2025. The parent company has historically provided capital allocations to support TDS Telecom's development, particularly in rural areas, enabling investments in fiber network expansions and enhancements. These allocations align with TDS Inc.'s enterprise-wide priorities, such as maintaining leverage targets around 1.5x to fund growth initiatives.

Key Subsidiaries and Affiliates

TDS Broadband LLC, a wholly-owned of , Inc., operates as a key component of TDS Telecom, primarily handling the delivery of , video, and voice services to residential and customers in core markets. It focuses on services via DSL and initial deployments, supporting TDS Telecom's strategy to expand high-speed connectivity in territories across multiple states. BendBroadband, acquired by TDS Telecom in 2014 for $261 million, serves as a regional affiliate providing triple-play services including , , and to residential and commercial customers in and the broader . Headquartered in , it integrates connectivity and related operations, such as services through The Vault, to enhance TDS Telecom's cable and capabilities in the region since the early . TDS Metrocom LLC, established in 2002 as a (CLEC) subsidiary, concentrates on services in the Midwest, offering phone, data, and solutions primarily to customers across five states. It provides high-speed plans, TV programming, phone packages, and security services, contributing to TDS Telecom's diversified portfolio while maintaining operations from its central office in . TDS Telecom also maintains an affiliate structure comprising numerous regional incumbent local exchange carriers (ILECs), such as Cobbosseecontee Telephone Company and Hampden Telephone Company, which operate as small telephone subsidiaries in rural and suburban areas to deliver local voice and broadband services. These ILEC affiliates, totaling over 100 entities historically, support TDS Telecom's overall operations and contribute to its workforce of approximately 3,400 employees.

Services and Products

Residential Offerings

TDS Telecom provides a range of residential services tailored to homes in rural and suburban areas, including local and long-distance , high-speed , and IPTV bundles through TDS TV+. These offerings emphasize affordability and reliability in low-density markets, with bundled packages combining , phone, and TV to reduce costs for households. As part of its commitments under the FCC's Connect America Fund programs, TDS maintains entry-level DSL service at speeds of up to 100 Mbps and 20 Mbps in remote areas, starting at $49.99 per month, ensuring access for underserved locations. Broadband internet forms the core of TDS's residential portfolio, with -optic options available up to 1 Gbps symmetrical speeds in select communities, and higher tiers reaching 2 Gbps or more where infrastructure supports it. Pricing under the 2025 All-In model starts at $49.99 per month for up to 1 Gbps when bundled, including all taxes and fees, with standalone 1 Gbps at $69.99 per month for life in qualifying areas; DSL remains an option for non- locations at entry speeds of 100/20 Mbps to meet FCC rural deployment obligations. Customers benefit from no caps, 24/7 support, and whole-home Wi-Fi management via included systems for seamless coverage in larger rural homes. Security add-ons, such as TDS Secure Home, provide antivirus and integrated with the network for enhanced protection. Home phone services include basic plans at $19.99 per month for unlimited local calling with long-distance at $0.05 per minute, or unlimited plans at $24.99 per month covering both local and domestic long-distance calls, complete with features like , , and . TDS TV+ offers streaming-focused IPTV packages starting with local channels and on-demand content, with bundles providing a $30 per month discount for 12 months when paired with and phone; higher tiers include cloud DVR and access to over 5,000 apps like for integrated home entertainment. These bundles are designed for affordability, often totaling under $100 per month in rural markets. Serving over 1.1 million total connections—including approximately 921,000 residential—across more than 900 communities in 31 states, TDS focuses on value-driven plans that support streaming, , and connectivity in low-density areas, with ongoing fiber expansions enhancing options beyond legacy DSL.

Business and Enterprise Solutions

TDS Telecom provides a range of business and enterprise solutions tailored for small and medium-sized businesses (SMBs), emphasizing reliable, scalable connectivity and integrated communication tools to support operational efficiency. Key offerings include dedicated high-speed fiber internet with speeds starting at 500 Mbps and scaling up to 8 Gbps in select areas, ensuring 99.9% network reliability without data caps or contracts. These services are complemented by managedIP Hosted VoIP systems, which integrate phone, internet, and mobile applications into a unified communications platform, enabling features like call forwarding, voicemail-to-email, and remote access for enhanced collaboration. Additionally, cloud-based cybersecurity products protect against threats, providing endpoint security and malware defense for business networks. For more specialized needs, TDS Telecom offers Ethernet private lines through its MetroEthernet service, delivering dedicated, secure (LAN) connections with scalable bandwidth up to 10 Gbps, ideal for interconnectivity and multi-location operations. In sectors like healthcare and finance, these solutions support compliance requirements, such as HIPAA standards for secure data handling in medical facilities, helping providers reduce non-compliance risks while maintaining patient care continuity. Special Access Private Line services further ensure guaranteed bandwidth and performance for secure data transport, addressing the demands of regulated industries. In 2025, TDS Telecom enhanced its portfolio, building on network expansions to offer improved and support, including 24/7 U.S.-based technical assistance for business continuity. This includes post-disaster reliability features demonstrated in rural areas, where dedicated 1 Gig and VoIP systems enabled a financial firm in , to maintain operations across multiple offices during wildfires, using apps for seamless client interactions. Similarly, a local hardware retailer in , adopted TDS internet up to 8 Gbps and managedIP phones, halving costs compared to prior providers while eliminating outages for point-of-sale systems and improving efficiency. TDS Telecom positions its enterprise solutions to serve SMBs across 29 states, with a strong emphasis on rural and suburban markets where traditional connectivity challenges persist. By prioritizing fiber-based , the company targets industries requiring high reliability, such as retail and , fostering economic growth through improved access in underserved communities.

Operations and Infrastructure

Service Footprint and Coverage

TDS Telecom operates in 31 states across the , with a primary focus on the Midwest, Northeast, and Western regions, serving nearly 1,000 communities that are often underserved by larger national carriers. The company's footprint emphasizes rural and suburban areas, where it provides essential wireline services to support approximately 1.17 million high-speed internet, TV entertainment, and phone connections as of Q3 2025. This geographic strategy aligns with TDS Telecom's historical commitment to markets overlooked by major providers, fostering connectivity in small to mid-sized towns and outlying regions. These wireline connections deliver reliable communications infrastructure tailored to community needs in these diverse settings. Under (FCC) regulatory obligations through the Connect America Fund (CAF) Phases II and III, including the Enhanced Alternative Connect America Cost Model (E-ACAM), TDS Telecom has committed to deploying services of at least 100/20 Mbps in eligible rural areas through ongoing upgrades. This participation secures annual funding of $90 million over 15 years to deploy and maintain service in approximately 270,000 locations across 24 states, prioritizing rural deployment to bridge digital divides. TDS Telecom's services cater to the needs of its rural and suburban through affordable plans addressing in these communities. Subsidiaries play a supporting role in regional service delivery, ensuring localized across the footprint.

Technology and Network Investments

TDS Telecom operates a hybrid network infrastructure that integrates legacy and modern technologies to deliver voice, , and video services across its service areas. Copper-based facilities support traditional voice services and (DSL) internet in many legacy regions, enabling speeds up to 100 Mbps through techniques such as vectoring and pair bonding. Coaxial cable networks, deployed in cable television markets, utilize 3.1 technology to provide speeds up to 1 Gbps alongside video delivery. A growing fiber optic backbone serves as the primary aggregation layer, facilitating high-capacity and supporting the transition to IP-based services through owned and leased routes. As of September 2025, the company had passed 1 million fiber service addresses, targeting 1.8 million overall. The company allocates significant capital expenditures to maintain and upgrade this infrastructure, with pre-2025 annual investments averaging around $300 million focused on network reliability and capacity enhancements, and 2025 investments projected at $375-425 million, over 80% focused on fiber expansions. These funds support routine maintenance of copper and coaxial assets, fiber overbuilds in select markets, and deployment of 5G fixed wireless access (FWA) in low-density rural zones to extend broadband where fiber deployment is uneconomical, serving over 145,000 FWA subscribers as of late 2024. For instance, mid-band 5G spectrum deployments support fixed wireless capabilities, complementing the core wired network. Reliability remains a core priority, with fiber services targeting 99.9% network uptime to minimize disruptions in service delivery. In rural areas prone to , TDS Telecom implements disaster recovery protocols, including redundant pathways and rapid restoration efforts, as demonstrated in post-event rebuilding projects funded by state grants. On the innovation front, TDS Telecom adopted gigabit passive optical network (GPON) technology early for its fiber deployments, enabling symmetrical speeds up to 1 Gbps in initial residential markets and marking one of the first such implementations for the company. More recently, it has transitioned toward XGS-PON for higher capacities while retaining GPON in established areas. Cybersecurity efforts benefit from integration with parent company Telephone and Data Systems, Inc. (TDS Inc.), including shared risk management practices and partnerships for advanced protections like scam detection tools. This collaboration supports ongoing enhancements to network security amid increasing cyber threats.

Recent Developments

Fiber Network Expansions

In 2025, TDS Telecom achieved significant milestones in its -to-the-home (FTTH) expansions, passing approximately 150,000 new marketable service addresses as part of a broader push to enhance access across its footprint. This progress contributed to the company surpassing 1 million total passings nationwide, operating in 31 states with active construction in nearly 100 communities. Key launches included projects in Wisconsin's Dane County, encompassing areas like DeForest and Windsor, where groundbreaking occurred in 2025 for a multi-million-dollar initiative to connect over 5,500 rural addresses with minimum speeds of 100 Mbps and up to 1 Gbps symmetric in select zones. Similarly, in , expansions advanced in the Coeur d'Alene and Rathdrum regions, adding nearly 1,000 new connections in the greater Spokane area by mid-2025, delivering symmetric speeds starting at 1 Gbps to support high-demand applications. TDS Telecom's strategic objectives for the decade emphasize scaling coverage to 80% of its marketable addresses by , up from 52% in early 2025, with a long-term target of 1.8 million passings overall. These goals are supported by a combination of internal capital expenditures and federal funding through the Enhanced Alternative Connect America Cost Model (E-ACAM) program, which allocates $1.35 billion to TDS for building to 230,000 remote locations, primarily in rural areas. The company prioritizes 95% of its footprint offering at least 1 Gbps speeds, reducing reliance on legacy networks to just 5% of addresses. Funding from E-ACAM enables phased deployments, with completion milestones extending through to ensure sustainable growth. Technically, TDS deploys XGS-PON (10 Gigabit Symmetric ) technology across its expansions, enabling scalability from current 1 Gbps offerings to up to 8 Gbps symmetric speeds for residential and business customers in mature markets. This infrastructure supports future upgrades without extensive re-laying of , while efforts, including public meetings and right-of-way negotiations with local governments, facilitate smooth permitting and minimize disruptions during construction. For instance, in Wisconsin's southeast region, a October 2025 announcement outlined delivery to 26,000 homes and businesses, highlighting collaborative planning with municipalities to accelerate rollout. These fiber initiatives have notably improved broadband equity in underserved rural communities, where prior connectivity gaps hindered economic opportunities. By enabling reliable high-speed access, TDS's expansions have boosted metrics such as adoption and utilization, with penetration rates reaching 40% in communities five years post-deployment. In Idaho's northern regions, for example, the enhanced network has empowered local businesses and residents with "future-proof" connectivity, fostering digital inclusion and supporting post-pandemic economic recovery in areas previously limited by slower DSL or cable alternatives.

Asset Sales and Strategic Shifts

In 2025, TDS Telecom divested several non-core assets to refine its portfolio, including the sale of its operations to Hilliary Communications in July, which added nearly 35,000 locations to the buyer's rural footprint and was expected to close in the second half of the year. The company also completed transfers of small (ILEC) properties in , such as the Strasburg Telephone Company to Eastern Slope Rural Association in April and another operation to Elevate (affiliated with Delta-Montrose Electric Association) in February, both closing in the second quarter. These transactions involved legacy cable and ILEC assets in select states, generating proceeds earmarked for reinvestment in core . The strategic rationale behind these divestitures centered on streamlining operations by shedding low-margin legacy assets that did not align with TDS Telecom's fiber-focused objectives, particularly amid intensifying in traditional wireline and cable markets. By exiting non-strategic, high-maintenance properties, the company aimed to concentrate resources on high-growth opportunities, enhancing and long-term profitability. This shift supports TDS Inc.'s broader diversification efforts across and related sectors. Financially, the 2025 divestitures contributed to TDS Inc.'s third-quarter results, where TDS Telecom's operating revenues declined 3% year-over-year to $255.1 million, with $6 million of the drop directly attributable to the asset sales. Adjusted EBITDA for TDS Telecom also fell 3% in the quarter, pressured by the divestitures and legacy revenue erosion, though full-year guidance remained unchanged at $320–$350 million. Post-sales, the moves positioned the company for improved EBITDA margins by eliminating costs associated with underperforming assets, bolstering financial flexibility for fiber investments. Looking ahead, TDS Telecom emphasized retention of its Midwest strongholds as core markets for fiber deployment, targeting additions of several hundred thousand addresses through ongoing programs. The company also pursued partnerships for backhaul via spectrum monetization agreements with carriers like , , and Verizon, expected to yield over $2 billion in proceeds to further support network enhancements.

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  72. https://www.ainvest.com/news/tds-q2-earnings-discrepancy-future-outlook-navigating-revenue-declines-strategic-rebalancing-2508/
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