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TDS and U. S. Cellular Announce Preliminary Fourth Quarter and 2010 Results

CHICAGO Feb. 3, 2011

Oct. 1, 2010

Dec. 31, 2010 $3,925 – $3,975 million Nov. 4, 2010 $800 – $850 million $200 – $250 million

U.S. Cellular’s financial performance fell below expectations due to the impact of certain promotions offered during the quarter in response to intense competition. These promotions, which included switching credits, reduced activation fees and increased handset subsidies, were designed to attract and retain customers, as well as to drive growth in smartphone penetration and the number of customers using data services. For the quarter, smartphones represented 39 percent of all handsets sales, with Android-powered devices leading the way.  While near-term profitability was impacted, it is expected that ARPU will benefit from the inclusion of these devices in the subscriber base.    

Nov. 4, 2010 $785 – $800 million $265 – $280 million $90 – $105 million $175 million $155 million

Thurs., Feb. 24, 2011 9:30 a.m. CST

(1) Adjusted OIBDA is defined as operating income excluding the effects of: depreciation, amortization, and accretion (OIBDA); the net gain or loss on asset disposals (if any); and the loss on impairment of assets (if any). This measure also may be commonly referred to by management as operating cash flow. This measure should not be confused with cash flows from operating activities, which is a component of the consolidated statement of cash flows. Adjusted OIBDA excludes the net gain or loss on asset disposals and loss on impairment of assets, if any, in order to show operating results on a more comparable basis from period to period. U.S. Cellular does not intend to imply that any of such amounts that are excluded are non-recurring, infrequent or unusual, and accordingly, they may be incurred in the future.

About TDS

Chicago Dec. 31, 2010

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

For more information about TDS and its subsidiaries, visit the web sites at:


TDS Telecom:


SOURCE Telephone and Data Systems, Inc.; U.S. Cellular

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