TDS Telecom
TDS Telecom performed well in 2010, increasing revenues through growth in data services, and improving operating margins by reducing operational costs and increasing efficiency. The company kept physical access line losses moderate.
Following a tremendous effort, TDS Telecom was approved through the American Recovery and Reinvestment Act of 2009 for 44 projects to bring access to high-speed broadband to rural communities. TDS Telecom will receive $105.1 million in federal grants, and will provide $30.9 million of its own funds to complete the projects.
Driving Broadband Growth
TDS Telecom increased its ILEC data revenues in 2010 with acquisitions and strong broadband penetration, fueled by an aggressive strategy to increase broadband speeds. At year end, more than three-quarters of the company's ILEC customers had 3 Mbps or higher speeds, and more than half of ILEC access lines were capable of providing at least 10 Mbps.
Increasing Residential Customer Loyalty
Broadband service is key to TDS Telecom's residential bundling strategy. The company's most loyal
customers are those who buy a combination of services. In fact, the monthly churn rate is a very
low 0.5 percent for customers who purchase triple-play bundles of voice, broadband and video from
TDS Telecom. More than
62 percent of TDS Telecom's residential ILEC customers had double- or triple-play
bundles at the end of 2010.
Building a Strong Commercial Base
Meeting the data services needs of commercial customers is a significant growth focus for TDS Telecom.
In 2010, the company expanded availability of its flagship commercial
data service, managedIP—now in
13 states—and nearly doubled the number
of managedIP customer stations.
To capitalize on the growing demand for data centers and hosted and managed services, TDS acquired two companies in 2010—VISI, Inc. and TEAM Technologies—which are operated by TDS Telecom. We believe there is substantial growth potential for these services, and we are actively seeking additional opportunities to build on the hosted and managed services offerings.
Suttle-Straus
Suttle-Straus, TDS' majority-owned marketing and graphic communications solutions provider, improved its margins in 2010, despite reduced demand for printed materials.
As commercial customers remain cautious about the economy, Suttle-Straus is increasing efficiency and maintaining a lean cost structure through continuous improvement initiatives.