What does Telephone and Data Systems do?

Telephone and Data Systems provides home and business internet, TV, and phone services across the United States, including fiber internet in underserved areas. It also leases space on its cell towers to wireless carriers and other tenants through its Array segment.

What is Telephone and Data Systems's fair value?

On an owner-earnings DCF, Telephone and Data Systems's most-likely fair value is about $41, versus a recent price near $34. A margin-of-safety estimate, not a price target. Analysis, not advice.

Communication Services · Telecom Services · TDS

What Telephone and Data Systems Does & How It Makes Money (TDS)

Updated October 2026 · reflects Telephone and Data Systems's latest reported financials

U.S. telecom provider of fiber internet, TV, phone, and tower leasing. TDS earns recurring subscription fees from residential and business customers for internet, TV, and voice services, plus wholesale fees for carrying other carriers' traffic.

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How Telephone and Data Systems makes money

TDS earns recurring subscription fees from residential and business customers for internet, TV, and voice services, plus wholesale fees for carrying other carriers' traffic. Its Array segment collects lease payments from tenants that rent space on its towers.

What Telephone and Data Systems does

Telephone and Data Systems (TDS) is a Chicago-based U.S. telecommunications company founded in 1968. It operates through two segments. TDS Telecom sells fiber and other internet service, all-home Wi-Fi, TV (including the TDS TV+ cloud platform with network DVR), and traditional and VoIP phone service to residential, commercial, and wholesale customers, with a focus that includes underserved areas. Its business services include broadband, IP-based services, and hosted voice and video collaboration for small and medium-sized businesses. The Array segment leases space on its towers to tenants and provides related ancillary services. TDS sells through third-party direct sales, retail stores, sales agents, and an online platform, so its revenue comes largely from recurring subscriptions and lease income.

Products & services

TDS fiber internet
TDS TV+ cloud TV platform
All-home Wi-Fi
Voice over IP and local/long-distance phone service
Hosted voice and video collaboration for SMBs
Array tower space leasing

What is Telephone and Data Systems worth?

On an owner-earnings DCF, Telephone and Data Systems's most-likely value is about $41 versus a recent price near $34 (24% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$26) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Fairly priced — no edge

Owner-earnings fair value · recent price ≈ $34

Fair value (most likely)

$41

Range

$34–$60

No-growth floor

$26

Price

~$34

Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Communication Services Industry Telecom Services HQ United States Ticker TDS Official site

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