TDS Telecom reports growth strategy is working
MADISON, Wisconsin -- TDS Telecommunications LLC (TDS®) is pleased with its third quarter results as it continues to grow business by providing quality high-speed broadband. In its third quarter earnings report, TDS increased its footprint by 7% from a year ago and now serves 1.5 million service addresses. TDS recently began offering services in Billings, Montana, and Green Bay, Wisconsin, and announced continued fiber expansion into 18 additional Wisconsin communities. In total, there are nearly 100 communities in TDS’ fiber expansion program at various stages of development.
“Our strategy is working,” said Senior Vice President of Finance and Chief Financial Officer Michelle Brukwicki. “We are directing our investments to expand our fiber footprint in new and existing markets and to enhance our product offerings. These investments are driving revenue and broadband connection growth.”
Total revenues increased 2% from the prior year, as broadband growth offset legacy declines. The company’s focus on fast, reliable service generated a 4% increase in residential broadband connections and a 10% increase in residential broadband revenue.
The Madison, Wisconsin-based company completed construction of 72,000 marketable fiber service addresses this year, 33,000 in the third quarter. TDS has expanded fiber to 36% of its footprint and provides 1Gig availability to 64% of service addresses, up from 57% a year ago.
TDS continues to see demand for greater broadband speeds. The company reports 69% of its customers are taking 100 Mbps or greater speeds, up from 65% a year ago.
“Our 1Gig product, along with our 2Gig product in certain markets, are important tools to defend and win new customers,” said Brukwicki. “We are working on a path to additional multi-gig products and expect to offer even higher speeds in 2023 and beyond.”
The company continues to drive faster speeds in rural markets by building to meet federal A-CAM broadband obligations and utilizing state broadband grants. In fact, TDS Telecom just successfully won a grant in Tennessee. In addition, TDS is supporting the proposed extension of the A-CAM program, providing six additional years of revenue support.
“Extending the current federal A-CAM program first, and then pursuing Broadband Equity, Access and Development program funding, would provide the fastest path for TDS Telecom to take fiber deeper into our communities,” said Brukwicki.
TDS is actively managing and mitigating the impacts of inflationary increases, labor shortages and supply chain lead times. With the actions the company is taking, TDS is well positioned to achieve its longer-term strategic plans.
