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Telephone and Data Systems Announces It Is No Longer Pursuing the Acquisition of Public Shares of Array Digital Infrastructure PR Newswire

CHICAGO, Sept. 1, 2026

TDS Expects to Recommence Repurchase Program

, /PRNewswire/ -- Telephone and Data Systems, Inc. (NYSE: TDS) (the "Company" or "TDS") today announced that it is no longer pursuing the acquisition of the Common Shares of Array Digital Infrastructure, Inc. (NYSE: AD) ("Array") that it does not already own and has withdrawn its previously announced proposal. Under the terms of the proposal, each Array Common Share not owned by TDS would have been exchanged for 0.86 of a TDS Common Share, subject to the assumptions set forth in the proposal. TDS will continue to hold its approximately 82% ownership interest in Array.

"While we remain confident that the combination presents substantial benefits, we no longer believe that now is the right time to complete such a transaction. Despite extensive review on both sides, we were not able to reach agreement on the form of consideration and value," said Walter Carlson, President and Chief Executive Officer of TDS. "We appreciate the time and effort that the Special Committee of the Board of Directors of Array devoted to this process. We remain confident in Array's business and long-term prospects and are committed to supporting Array's continued success as a leading owner and operator of wireless communications infrastructure. Similarly, we remain confident in the long-term prospects of TDS Telecom as we execute our strategy to expand our marketable fiber service footprint and deliver value for customers and our shareholders."

TDS continues to support Array's previously disclosed intention to opportunistically monetize its remaining wireless spectrum assets. TDS and Array intend in the near term to increase their efforts to pursue opportunities to monetize such assets.

With the withdrawal of the proposal to Array, TDS expects to recommence repurchases of TDS Common Shares under its previously announced share repurchase programs, including the additional $500 million share repurchase authorization announced in November 2025. As of June 30, 2026, approximately $523.9 million remained available under TDS's share repurchase programs. The timing, manner and amount of any repurchases will be determined by TDS in its discretion and will depend on market conditions, applicable legal requirements and other factors.

About TDS

Founded in 1969, Telephone and Data Systems provides broadband services and wireless infrastructure through its businesses, TDS Telecom and Array Digital Infrastructure, Inc.

About Array

Array is a leading owner and operator of shared wireless communications infrastructure in the United States. With over 4,400 cell towers in locations from coast to coast, Array enables the deployment of 5G and other wireless technologies throughout the country. Headquartered in Chicago, Array is approximately 82% owned by TDS.

For more information about TDS and its subsidiaries, visit:

TDS: tdsinc.com
Array: arrayinc.com
TDS Telecom: tdstelecom.com

FORWARD LOOKING STATEMENTS

This communication contains forward-looking statements, within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, which reflect TDS' current estimates, expectations and projections about TDS' and Array's future results, performance, prospects and opportunities. Such forward-looking statements may include, among other things, statements regarding TDS' and Array's efforts to monetize Array's remaining spectrum assets, the timing and results of such efforts, TDS' plans to repurchase TDS Common Shares and the timing and amount of any such repurchases, and any other statements regarding TDS' or Array's future operations, anticipated business levels, future earnings, planned activities, anticipated growth, market opportunities, strategies, competition and other expectations and estimates for future periods.

Forward-looking statements include statements that are not historical facts and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "plan," "may," "should," "will," "would," "project," "forecast" and similar expressions. These forward-looking statements are based upon information currently available to TDS and are subject to a number of risks, uncertainties and other factors that could cause TDS' and Array's actual results, performance, prospects, or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. The TDS business is subject to the risks and uncertainties described in TDS' Annual Report on Form 10-K on file with the Securities and Exchange Commission and from time to time in other filed reports, including TDS' Quarterly Reports on Form 10-Q. Shareholders, potential investors and other readers are urged to consider these factors in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements.

The forward-looking statements included in this communication are made only as of the date of this communication, and TDS undertakes no obligation to update any forward-looking information contained in this communication, or with respect to the announcement described herein, to reflect subsequent events or circumstances.

View original content:https://www.prnewswire.com/news-releases/telephone-and-data-systems-announces-it-is-no-longer-pursuing-the-acquisition-of-public-shares-of-array-digital-infrastructure-302866945.html

SOURCE Telephone and Data Systems, Inc.

2 Mid-Cap Telecom Stocks Offering Superior Returns Telephone and Data Systems NYSE: TDS reported second-quarter progress in its fiber expansion and tower operations, while lowering revenue expectations for its telecom business amid continued pressure from legacy copper and cable services. The company also said Array Digital Infrastructure completed major spectrum transactions during the quarter and raised several elements of its full-year outlook.

TDS Chief Executive Officer Walter Carlson said the company would not provide an update on its previously announced all-stock proposal to acquire the Array shares it does not already own. Array’s board has formed an independent special committee to evaluate the proposal.

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Telecom raises fiber build targets The Market Is So Over Overstock...But Is It Now Oversold?TDS Telecom delivered approximately 66,000 marketable fiber service addresses during the second quarter, bringing first-half delivery to about 106,000 addresses. Ken Dixon, president and CEO of TDS Telecom, said the first-half performance was the strongest in company history and exceeded the company’s address delivery in the second half of 2025, traditionally its busiest construction period.

The company increased its 2026 fiber address delivery guidance by 50,000 addresses and now expects to add between 250,000 and 300,000 new marketable fiber service addresses this year. TDS Telecom also raised its capital-expenditure outlook to a range of $625 million to $675 million to support the accelerated construction activity.

These 11 stocks will be Dividend Kings in 5 years or less.TDS Telecom ended the quarter with nearly 1.2 million fiber service addresses, representing 60% of its total footprint, with 80% capable of gigabit speeds. The company said it is using federal Enhanced Alternative Connect America Cost Model, or E-ACAM, support to expand fiber to more than 300,000 addresses in 22 states within its incumbent footprint over the next two years.

Dixon said TDS Telecom has already met its 2026 E-ACAM obligations in three states and has its highest crew counts ever in its remaining E-ACAM markets. He added that the company is seeing strong demand when it brings fiber to markets previously served by copper infrastructure.

Residential fiber net additions totaled approximately 15,100 in the second quarter, up 47% from a year earlier. TDS said it has expanded door-to-door sales capacity, added outside sales vendors, and improved performance through its online channel. The company is also adding sales resources in cable and multi-dwelling-unit markets.

Legacy revenue pressures lead to revised guidance Despite fiber growth, TDS Telecom reported total operating revenue declined 6% year over year in the second quarter, or 4% excluding divestitures. Kristina Bothfeld, vice president of financial analysis and strategic planning, said approximately half of the year-over-year decline reflected discrete wholesale revenue adjustments that benefited 2025 results. The rest was tied to legacy revenue pressure, partly offset by fiber connection growth and higher revenue per connection.

Residential fiber revenue rose 13%, or $11 million, from a year earlier, while cable revenue declined roughly 10%. Total residential revenue decreased by $6 million, including approximately $2 million related to divestitures of primarily copper-based markets.

Cash expenses were flat as cost-management savings were offset by expenses tied to expansion markets and inflation. Capital expenditures totaled $179 million during the quarter.

TDS Telecom reduced its full-year revenue guidance to $1 billion to $1.025 billion, citing pressure in its copper and cable markets. The company narrowed its adjusted EBITDA outlook to $310 million to $330 million.

2026 telecom revenue guidance: $1.0 billion to $1.025 billion. 2026 adjusted EBITDA guidance: $310 million to $330 million. 2026 fiber address delivery guidance: 250,000 to 300,000. 2026 capital-expenditure guidance: $625 million to $675 million. Chief Financial Officer Vicki Villacrez said the company’s balance sheet has been strengthened by transactions completed during the past year, including Array’s June spectrum sale to Verizon. TDS expects its acquisition of Granite State Communications to close in the third quarter, adding 11,000 fully fibered service addresses for $25 million.

Villacrez said TDS continues to evaluate small- and medium-sized fiber acquisition opportunities that fit its clustering strategy and have either existing fiber infrastructure or an economically viable path to full fiber deployment.

Array completes spectrum sales and lifts outlook Array Digital Infrastructure said cash site rental revenue increased 55% year over year from all customers, or 65% when normalized for the impact of DISH. The company stopped recognizing revenue from DISH during the first quarter after DISH generally stopped making payments under its contracts in December and certain DISH entities entered bankruptcy proceedings.

Array reported a tenancy ratio of 0.96 at quarter-end, compared with 0.98 at the end of the prior quarter. The company said that, excluding the removal of DISH co-locations from the metric, it continues to see steady tenancy growth.

Anthony Carlson, Array’s president and CEO, said T-Mobile interim site revenue drove the year-over-year increase in site rental revenue. That revenue began to decline during the quarter as T-Mobile progresses through its network integration. T-Mobile has until January 2028 to finalize 2,015 committed sites under its master lease agreement with Array.

Array narrowed its forecast for tenantless towers following the T-Mobile integration to between 1,000 and 1,700. The company said it is evaluating lease-up opportunities, ground-lease costs, long-term demand and potential decommissioning for sites without a path to economic viability.

During the quarter, Array closed a $168 million sale of 600 MHz, 700 MHz and AWS spectrum licenses to T-Mobile and a $1 billion spectrum transaction with Verizon. Array said it has agreements to monetize roughly 70% of its spectrum holdings, with remaining T-Mobile transactions expected to close by the end of 2026, subject to regulatory approval and other closing conditions.

The company continues to seek opportunities to monetize its remaining spectrum, primarily C-Band holdings. Carlson said Array is not a forced seller and believes the spectrum has substantial value given its availability for deployment and proximity to Upper C-Band spectrum.

Array raised its 2026 total operating revenue outlook to $205 million to $210 million from a prior range beginning at $200 million. It increased adjusted OIBDA guidance to $60 million to $75 million and adjusted EBITDA guidance to $220 million to $235 million. Capital-expenditure guidance was unchanged.

About Telephone and Data Systems (NYSE:TDS)Telephone and Data Systems, Inc NYSE: TDS is a diversified telecommunications company headquartered in Chicago, Illinois. Through its subsidiaries, the company provides a broad array of communications services, including wireless voice and data, wireline broadband and voice, cable television, and managed IT and cloud solutions. Its two primary operating units—TDS Telecom and U.S. Cellular—serve residential, business and wholesale customers across the United States.

TDS Telecom focuses on delivering broadband internet, digital voice, video and data communications services in primarily rural and suburban markets.

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