TDS Telecom reports fiber investments are driving broadband revenue and connection growth
TDS Telecommunications LLC (TDS®) is pleased with its results for the second quarter and through the first half of the year. In its second quarter earnings report, TDS saw a 2% increase in revenues from the prior year, driven by strong broadband growth, offsetting legacy revenue declines. The Madison, Wisconsin-based company deployed 17,000 marketable fiber service addresses in the second quarter, bringing the total to 39,000 for the year. Total broadband residential connections grew 5% for the quarter. TDS now serves 34% of its footprint with fiber.
“Our focus on fast, reliable service has generated an 11% increase in total residential broadband revenue,” said Senior Vice President of Finance and Chief Financial Officer Michelle Brukwicki. “We have achieved superior market share in our incumbent markets where we have invested in fiber and are seeing strong broadband penetrations in our launched expansion markets.”
TDS is on track with its network construction under the federal A-CAM broadband program and supports the proposed extension to provide additional years of revenue support in exchange for deploying higher broadband speeds in rural areas, currently under consideration by the Federal Communications Commission. TDS also plans to pursue Broadband Equity, Access, and Development (BEAD) program funding when it becomes available, which would provide additional opportunities for TDS to take fiber deeper into its communities.
In line with growth objectives, TDS grew total service addresses 7% year-over-year. In the second quarter, the company increased the availability of 1Gig speeds to 63% of total service addresses, up from 56% one year ago.
TDS also reported an increasing demand for faster broadband speeds. The company said 68% of its residential customers are taking 100 Mbps or greater, up from 63% a year ago. In areas with up to 1Gig service, 23% of new customers are taking the superior product.
As previously announced, TDS has a long-term strategy of tripling its fiber footprint by adding 1.2 million service addresses and serving approximately 60% of its total footprint with fiber by 2026.
“I want to thank all of our associates for their dedication to the success of TDS Telecom,” said Brukwicki. “Our positive quarterly results are a product of their hard work.”