2007 Annual Report

2007 Overview

The strong results from the past year demonstrated our steady growth approach in several ways. TDS grew its revenues from operating activities to $4.8 billion, an 11 percent increase from $4.4 billion in 2006, which itself reflected a 10 percent increase over 2005. Retail postpay customers at U.S. Cellular, our 81-percent owned wireless subsidiary, continued to increase and to drive strong growth in data revenues and average revenue per unit (ARPU). In turn, the retail postpay churn rate decreased, indicating increasing satisfaction with U.S. Cellular’s services and products. At TDS Telecom, our wholly-owned wireline subsidiary, digital subscriber line (DSL) customers and DSL revenue increased strongly, with operating income and margins rising despite a decline in total operating revenues.

Telephone and Data Systems, Inc. 30 N. LaSalle Street Suite 4000 Chicago, IL 60602 Tel: 312.630.1900 Fax: 312.630.1908 www.teldta.com