<SEC-DOCUMENT>0001051512-15-000034.txt : 20150504
<SEC-HEADER>0001051512-15-000034.hdr.sgml : 20150504
<ACCEPTANCE-DATETIME>20150504165404
ACCESSION NUMBER:		0001051512-15-000034
CONFORMED SUBMISSION TYPE:	DEFA14A
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150504
DATE AS OF CHANGE:		20150504
EFFECTIVENESS DATE:		20150504

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			TELEPHONE & DATA SYSTEMS INC /DE/
		CENTRAL INDEX KEY:			0001051512
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813]
		IRS NUMBER:				362669023
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		DEFA14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14157
		FILM NUMBER:		15829170

	BUSINESS ADDRESS:	
		STREET 1:		30 NORTH LASALLE STREET
		STREET 2:		STE 4000
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60602
		BUSINESS PHONE:		3126301900

	MAIL ADDRESS:	
		STREET 1:		30 NORTH LASALLE STREET
		STREET 2:		STE 4000
		CITY:			CHICAGO
		STATE:			IL
		ZIP:			60602
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEFA14A
<SEQUENCE>1
<FILENAME>tdsdefa14a.htm
<DESCRIPTION>DEFA14A
<TEXT>

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  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">UNITED STATES</font></b></p>
  </td>
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  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
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  <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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 <td colspan=6 width=86% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">SECURITIES AND EXCHANGE COMMISSION</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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 <td colspan=6 width=86% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Washington, D.C. 20549</font></b></p>
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 <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:15.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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 <td valign=bottom width=19% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:15.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:18.75pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:18.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:18.75pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:14.0pt;">SCHEDULE 14A</font></b></p>
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 <td valign=bottom width=7% style="background:white;border:none;height:18.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:14.0pt;">&#160;&nbsp;</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
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 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Proxy Statement Pursuant to Section
  14(a) of</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">the Securities Exchange Act of 1934
  (Amendment
  No.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;)</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=7 width=93% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Filed by the
  Registrant </font><font color=black face=Wingdings style="font-size:9.0pt;">x&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=7 width=93% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Filed by a
  Party other than the Registrant </font><font color=black face=Wingdings style="font-size:10.0pt;">&#168;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=7 width=93% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Check the
  appropriate box:</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Preliminary
  Proxy Statement</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Confidential,
  for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))</font></b></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Definitive
  Proxy Statement</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">x</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Definitive
  Additional Materials</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Soliciting
  Material Pursuant to &#167;240.14a-12</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Telephone and Data Systems, Inc.</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(Name of Registrant as Specified In Its
  Charter)</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=6 width=86% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><b><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(Name of Person(s) Filing Proxy
  Statement, If other than the Registrant) </font></b></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=19% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=18% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td colspan=7 width=93% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Payment of
  Filing Fee (Check the appropriate box):</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">x</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">No fee
  required.</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Fee computed on
  table below per Exchange Act Rules 14a 6(i)(1) and 0-11.</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(1)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Title of each
  class of securities to which transaction applies:</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(2)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Aggregate
  number of securities to which transaction applies:</font></p>
  </td>
 </tr>
<tr style="height:30.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:30.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:30.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:30.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(3)</font></p>
  </td>
 <td colspan=4 valign=top width=75% style="background:white;border:none;height:30.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Per unit price
  or other underlying value of transaction computed pursuant to Exchange Act
  Rule 0 11 (set forth the amount on which the filing fee is calculated and
  state how it was determined):</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:30.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(4)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Proposed
  maximum aggregate value of transaction:</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(5)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Total fee paid:</font></p>
  </td>
 </tr>
<tr style="height:12.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=4% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=6 valign=top width=89% style="background:white;border:none;height:12.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Fee paid
  previously with preliminary materials.</font></p>
  </td>
 </tr>
<tr style="height:39.75pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:39.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=4% style="background:white;border:none;height:39.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Wingdings style="font-size:10.0pt;">&#168;</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:39.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Check box if
  any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and
  identify the filing for which the offsetting fee was paid previously.
  Identify the previous filing by registration statement number, or the Form or
  Schedule and the date of its filing.</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:39.75pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(1)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Amount
  Previously Paid:</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(2)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Form, Schedule
  or Registration Statement No.:</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(3)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Filing Party:</font></p>
  </td>
 </tr>
<tr style="height:24.0pt;">
  <td valign=bottom width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face=Calibri,sans-serif style="font-size:11.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td width=4% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">&#160;&nbsp;</font></p>
  </td>
 <td valign=top width=7% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">(4)</font></p>
  </td>
 <td colspan=5 valign=top width=82% style="background:white;border:none;height:24.0pt;padding:0in 0in 0in 0in;">
  <p style="margin:0in;margin-bottom:.0001pt;"><font color=black face="Times New Roman,serif" style="font-size:10.0pt;">Date Filed:</font></p>
  </td>
 </tr>
</table></div>






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<p align=center style="margin:0in;margin-bottom:.0001pt;text-align:center;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">EXPLANATORY
NOTE</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">The
purpose of this Schedule 14A is to file the transcript of the Telephone and
Data Systems, Inc. (&#8220;TDS&#8221;) first quarter 2015 earnings conference call on May 1,
2015, for use on and after May 4, 2015.&#160; </font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">IMPORTANT INFORMATION:&nbsp; TDS and its directors,
executive officers and other members of its management and employees may be
deemed to be participants in the solicitation of proxies from the shareholders
of TDS in connection with the TDS 2015 annual meeting of shareholders.&nbsp;
Information regarding TDS directors and executive officers and other
participants that may be soliciting proxies on behalf of the TDS board of
directors and their respective interests in TDS by security holdings or
otherwise is set forth in TDS&#8217;s definitive proxy statement relating to its 2015
annual meeting, as filed with the Securities and Exchange Commission (&#8220;SEC&#8221;) on
April 17, 2015.&nbsp; The 2015 proxy statement, other solicitation material and
other reports that TDS files with the SEC, when available, can be obtained free
of charge at the SEC&#8217;s web site at </font></b><b><u><font color=blue face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">www.sec.gov&nbsp;</font></u></b><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">
or from TDS as provided on its website at </font></b><b><u><font color=blue face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">www.tdsinc.com</font></u></b><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">.&nbsp;
TDS SHAREHOLDERS ARE ADVISED TO READ CAREFULLY THE PROXY STATEMENT AND OTHER
SOLICITATION MATERIAL FILED BY TDS IN CONNECTION WITH THE TDS 2015 ANNUAL
MEETING OF SHAREHOLDERS BEFORE MAKING ANY VOTING DECISION BECAUSE THEY CONTAIN
OR WILL CONTAIN IMPORTANT INFORMATION RELATING TO THE ELECTION OF DIRECTORS OF
TDS.</font></b></p>





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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin:0in;margin-bottom:10.0pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:115%;">The
registrant is filing the below written material for us on and after May 4,
2015:</font></p>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:2.65pt;text-align:justify;text-indent:-1.0pt;"><font face="Times New Roman,serif" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></h1>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:2.65pt;text-align:justify;text-indent:-1.0pt;"><font face="Times New Roman,serif" style="font-size:10.0pt;font-weight:normal;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><font face="Times New Roman,serif" style="font-size:10.0pt;">May 1, 2015 / 9:30 AM, TDS &#8211; Q1 2015 Telephone Data
Earnings Conference Call</font></b></h1>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:2.65pt;text-align:justify;text-indent:-1.0pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<h1 align=right style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:2.65pt;text-align:right;text-indent:152.7pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">FINAL TRANSCRIPT</font></b></h1>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:14.3pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Company
Participants</font></b></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:6.75pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Jane W.
McCahon</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Douglas D.
Shuma</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Kenneth R.
Meyers</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Steven T.
Campbell</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Vicki L.
Villacrez</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:.35pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:0in;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Other Participants</font></b></h1>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:6.75pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Sergey
Dluzhevskiy</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Ric H.
Prentiss</font></p>

<p style="margin-bottom:.0001pt;margin-left:19.5pt;margin-right:0in;margin-top:.5pt;text-indent:-9.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&#8226;</font><font face="Times New Roman" lang=EN-US style="font-size:7.0pt;">&nbsp;&nbsp;&nbsp;
</font><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Barry Michael
Sine</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:.35pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:0in;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">MANAGEMENT DISCUSSION SECTION</font></b></h1>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:13.0pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Greetings and welcome to the TDS and U.S.
Cellular First Quarter 2015 Conference Call. At this time, all participants are
in a listen-only mode. A brief question-and-answer session will follow the
formal presentation. [Operator Instructions] As a reminder, this conference is
being recorded.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">I would now like
to turn the conference over to your host Jane McCahon, Vice President of
Corporate Relations. Thank you. Ms. McCahon, you may begin.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:7.75pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Jane W. McCahon</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Thank you, Kevin. Good morning,
everyone, and thank you for joining us. I want to make you all aware of the
presentation we've prepared to accompany our comments this morning which you
will find on the Investor Relations sections of the TDS and U.S. Cellular
websites.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">With
me today and offering prepared comments are from TDS, Doug Shuma, Senior Vice
President, Finance; from</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">U.S. Cellular, Ken Meyers, President and
Chief Executive Officer; Steve Campbell, Executive Vice President, Finance and
CFO; and from TDS Telecom, Vicki Villacrez, Vice President, Finance and CFO.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">This call is
being simultaneously webcast on the TDS and U.S. Cellular Investor Relations
websites. Please see the websites for slides referred to on this call,
including other non-GAAP and operating cash flow and adjusted EBITDA
reconciliations.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The information
set forth in the presentation and discussed during this call contains
statements about expected future results and financial results that are
forward-looking and subject to risks and uncertainties.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Please review
the Safe Harbor paragraphs in our press releases and the extended version in
our SEC filings. Shortly after we released our earnings and before the call,
TDS and U.S. Cellular filed SEC Forms 8-K, including today's press releases and
their SEC Forms 10-Q.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Additionally,
U.S. Cellular will be filing a Form S-3 amendment today which basically
refreshes our self-registration back to $500 million. </font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We invite you to
join us or listen to the webcast of our Annual Meetings, U.S. Cellular's Annual
Meeting is on May 19 in Milwaukee and TDS's is on May 21 in Madison. We also
ask our shareholders to support our extremely qualified slate of Director
nominees at both TDS and U.S. Cellular. We'll be on the road and reaching out
to our shareholders to discuss our progress over the coming weeks. </font></p>


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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Please
keep in mind that TDS has an open door policy, so if you are in the Chicago
area and would like to meet with members of management, the IR team will try to
accommodate you calendars permitting.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">I'd
like to now turn the call over to Doug Shuma for a couple of brief comments.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Douglas D. Shuma</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Thanks, Jane. All of our businesses made
good progress executing on their strategic priorities during the first quarter
as you'll hear from Ken, Steve and Vicki. We remain committed to our capital
allocation strategy and return value to our shareholders during the quarter in
the form of $15 million in TDS dividends. We did not, however, repurchase any
shares in the quarter.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">As we have
always said, our capital allocation strategy reflects a long-term objective and
there can or will be short-term swings for a myriad of reasons. With that said,
we believe we are tracking very closely to our stated 75:25 ratio of
investments in the business to value being returned to shareholders.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Now,
I'll turn the call over to Ken.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Kenneth R. Meyers</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Good morning. I'm happy to report that
2015 is off to a good start with continued customer growth, albeit at levels
below what I would like, lower churn rates across both post and prepaid product
lines, growth in revenues following the turnaround in customer growth last year
and a big jump in operating cash flow. While there are some one-time gains that
flow through the income statement and muddy up some comparisons, the company
generated positive operating income from its operations during the quarter. Our
results this quarter reflect a balance and our desire to grow, with our need to
improve profitability.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Let me be clear,
continuing to drive subscriber growth remains a top priority. However, as
you've seen throughout the industry switching activity has declined and the
American consumer is still being very cautious. So, while we continue to
position U.S. Cellular in the marketplace with the best value in wireless, we
were not overly aggressive in promotions when it became clear to us that fish
just weren't biting this quarter.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Let's review a
few highlights from the quarter. While gross additions did not see the level of
growth we would like, we are pleased with the continued improvement in postpaid
churn, which declined to 1.48% in the quarter, a four-year low. We view this as
evidence of customer satisfaction with our overall value proposition.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">With 78% of our
postpaid customers now under contract, we are optimistic about our ability to
maintain and even improve on this churn result. Also, during the quarter, we
saw improvements in prepaid churn, too.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Late in the
quarter, we repeated a very successful tablet promotion we ran over the
holidays which resulted in connected devices representing 34% of postpaid gross
additions in the quarter and 40,000 net adds. Tablet promotions increased our
traffic and connected devices. They also generated an incremental connection
fee and an opportunity to upsize data buckets and thus, data revenue.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We have also had
success increasing other high merchant revenue streams such as device protection
plans and through accessory sales. Equipment installment plans remain popular.
39% of postpaid devices sold to customers in the first quarter were on
equipment installment plans. That rate was muted to some degree again this
quarter by the tablet promotion.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:.4pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.55pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our
shared data plans, which we called Shared Connect, now account for 56% of our
postpaid customers, up from 47% at year-end and with the strong tablet sales
this quarter, average postpaid devices per account rose sequentially from 2.1
devises per account to 2.48 devices.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We continue to
see strong migrations to these plans reflecting the underlying trends of
smartphone adoption, the addition of connected devices, combined with the
strong growth in data consumption. All of these activities, smartphone
adoption, increased connected devices, Shared Connect adoption with larger data
buckets and EIP uptake, offset by &#8211; to some degree, by competitive pricing, led
to revenue growth of over 4% from last year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.8pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">On the network
front, 94% of our postpaid customers and 87% of our cell sites now have 4G LTE
coverage and this 4G network is now carrying 81% of our data traffic. We've
been very successful migrating customers to 4G LTE. Currently, 64% of our total
postpaid customers have 4G capable devices and over 90% of the smartphones in
service are now 4G capable. Along that same front, we continue to make slow
progress on 4G roaming agreements and are getting closer to finalizing a couple
of them.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">During the
quarter, we announced that we are terminating our rewards program. This is an
excellent example of the work the team is doing to continue to bring to our
customers products and services that provide unique value to them.</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our
recent research showed that this program was not as effective in attracting new
customers in today's price-sensitive environment and that our current customers
do not rate it highly as a benefit. In fact, many customers have never used
their points.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Therefore, we
decided to discontinue the program eliminating the cost to operate it and
enabling us to redirect resources to other products and services our customer
value more; more to come on this over the next few quarters.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Year-over-year
growth in customers, managing our promotional activity, increases in EIP
adoption, the elimination of expenses related to the billing system conversion
last year and tight spending controls in all other areas combined to generate
$167 million of operating cash flow for the quarter. This performance has led
us to increase our guidance for 2015 by $50 million. It's a great start to the
year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Looking forward,
we do expect switching activity to pick up and we have plans to aggressively
migrate our remaining feature phone customers to smartphones in order to
generate the subscriber growth we want. We expect acquisition costs to be
higher over the remainder of the year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">To summarize, we
had a very good start to the year and I'd like it take this opportunity to
thank all of our associates for their commitment and dedication they bring to
serving our customers every day. We've shown that U.S. Cellular is competitive
and relevant in the marketplace and now we are focused on driving growth to
achieve our 2015 goals.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">So
with that, let me turn the phone &#8211; call over to Steve Campbell.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Steven T. Campbell</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Good morning. I'll begin with a few
comments on customer results shown on slide six. Postpaid gross additions for
the first quarter of 2015 were 200,000, an increase of 2% from 197,000 a
year-ago. Postpaid churn for the quarter was 1.48%, down from about 2.3% last
year. I'll say more about postpaid churn in a minute.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Due to both
higher gross additions and improved churn, we achieved postpaid net additions
of 9,000 for the quarter, a significant improvement from the net loss of 93,000
postpaid customers a year-ago. The mix of our postpaid gross and net additions
in the first quarter is shown at the bottom of the chart. Gross additions
comprised 66% handsets and 34% connected devices. Net additions were driven by
smartphones and to a greater extent, by connected devices.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Prepaid
subscriber results, 12,000 net additions were relatively flat year over year,
while churn improved to 5.8%.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The next slide has a chart showing the
trend in the postpaid churn rate over the period beginning in January of 2013
and continuing through March of 2015. As we've been reporting over the past
couple of quarters, churn peaked at 2.4% in February of 2014 and has continued
on a steady downward trend since that time, decreasing to 1.48% for the first
quarter of 2015.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Slide eight
shows the positive trends in smartphone sales and penetration. During the first
quarter, we sold 403,000 smartphones which represented 86% of total handsets
sold, driving smartphone penetration to 67% of our base of postpaid handset
customers, up from 56% a year-ago.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.25pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">So at the end of
the first quarter, we still had about one-third of our postpaid customers with
basic phones, and as Ken said, we intend to work aggressively to upgrade these
customers to smartphones and drive additional data usage revenues. During the
first quarter, we also sold 72,000 connected devices.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.25pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">As Ken already
mentioned, we continue to have good progress in the adoption of 4G technology.
On the network front, we completed wave four of the deployment early in the
first quarter of 2015 and are now covering 94% of our customers. In addition,
at the end of the quarter, 64% of our postpaid customers have 4G capable
devices. This means that 64% of our customers have devices that are capable of
providing them with a high speed 4G data experience on a best-in-class network.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We believe that
the higher penetration that we're seeing for smartphones and connected devices,
when combined with increased adoption of our Shared Connect data plans, is
allowing us to capitalize on the continuing growth in data consumption.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:21.85pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The
penetration on our Shared Connect plans is now 56%, up from 47% last quarter.
That increased penetration for smartphones and connected devices and Shared
Connect plans is having a positive impact on our revenue trends as shown on the
next slide.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Postpaid ARPU,
as reported, was $54.87 for the first quarter. That's down about 4.7% year over
year. Although, increased smartphone penetration and data usage clearly have
had a positive impact on revenue, we've also seen downward pressure associated
with both industry-wide price competition over the last few quarters and
discounts on normal service plan pricing for customers who activate their own
device or purchase one under an equipment installment plan.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:30.7pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">These
equipment related discounts, which are shown in the table at the bottom of the
slide, effectively shift some revenue from service revenue to equipment sales
revenue. If normalized for that shift, ARPU for the first quarter increased by
3% year over year and was essentially flat sequentially.</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.25pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Postpaid
average revenue per account, or ARPA, as reported, was $134.94, up 2.2% year
over year. When normalized for the equipment related discounts, ARPA grew at
the more robust rate of 11%. Also, remember that the ARPU and ARPU metrics
shown here are calculated using service plan revenues and therefore, do not
reflect the monthly equipment billings to customers who have equipment
installment plans.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">In the first
quarter, these equipment billings totaled about $47 million, which is
equivalent to $3.66 per average postpaid customer or $9 per average postpaid
account.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.25pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The next slide
in the deck provides some summary statistics related to equipment installment
plans. I'll highlight a couple of the line items. For the first quarter, EIP
sales were 39% of total postpaid devices sold and resulted in $68 million of
recognized revenue. Both devices sold and the related revenue were negligible
amounts in the previous year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:23.0pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">EIP
related bad debts expense for the quarter which we determined using our
historical accounting method was $5 million. And acknowledging that it's still
early, we haven't observed any unusual default activity among equipment
installment plan customers.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Moving on, total
operating revenues for the first quarter were $965 million, up $39 million or
4% from $926 million a year ago. The increase was driven primarily by higher
equipment sales revenues, reflecting the growth in equipment installment plan
sales.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:.4pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:11.9pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Total
service revenues were $828 million, down $26 million or 3% from last year. The
principal factor in the decrease was lower retail service revenues. There was
an increase in the number of customers year over year, but the impact of that
growth was offset by the decrease in reported ARPU discussed earlier.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Inbound roaming
revenues of $40 million decreased $10 million or 20% due to both lower volumes
and rates. Tower rentals for the quarter, largely representing our remaining
tower portfolio following the sale completed in January, were</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">$14 million, up
9% year over year. And ETC revenues included in other were flat year over year
at $23 million, as the FCC's phase-down of Universal Service Fund support
remain suspended.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our overall
financial performance for the quarter was quite strong as shown on the next
slide. Operating cash flow for the quarter was $167 million, up significantly
from $79 million a year-ago. Note that this measure excludes the gains
associated with the tower sale and license exchange that were mentioned
earlier.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Several factors
contributed to the overall improvement. First, as I just discussed in more
detail, total operating revenues grew by $39 million or 4% year over year. In
total, cash expenses of $798 million decreased by $49 million or 6% year over
year. System operations expense increased by $10 million, primarily due to
outbound roaming expense. However, more than offsetting that increase, cost of
equipment sold fell by 12% driven by lower gross additions [ph] and a lower
(19:29) that is improved upgrade rate, and SG&amp;A expenses fell by 7% due to
lower sales commissions on reduced volume and lower consulting and outsourcing
costs related to the billing system conversion last year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">I also want to
use this chart to highlight our true operating performance for the quarter. As
you can see at the bottom of the slide, our operating income, excluding the
non-recurring gains in both periods, dramatically improved from a loss of $89
million last year to income of $20 million this year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:24.95pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Adjusted
EBITDA shown next incorporates the earnings from our equity method partnerships
and imputed interest income from EIP transactions. Adjusted EBITDA for the
quarter was $209 million, up 79% from $117 million last year, driven largely by
the increase in operating cash flow.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.75pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our estimates
for full year 2015 are shown on slide 14 of the presentation. For total
operating revenues, the range remains at $4.0 billion to $4.2 billion. For
operating cash flow, we're increasing the range by $50 million at both ends to
$400 million to $500 million.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">This increase
balances the positive performance in the first quarter with the fact that we
still have an intensely competitive market with a lot of pricing uncertainty,
as well as the fact that we believe we will need to be aggressive to achieve
our overall subscriber growth goals. In order to generate the growth we want, we
expect the acquisition costs to be higher over the remainder of the year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The increase for
operating cash flow ripples through the guidance for adjusted EBITDA, which
incorporates the earnings from our equity method partnerships and interest
income. The updated guidance for adjusted EBITDA is $580 million to $680
million. And finally, capital expenditures are still expected to be about $600
million.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:18.85pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Before
I conclude, I want to make just a couple of comments about U.S. Cellular's
balance sheet. Overall, I'd say the balance sheet is in good shape. We saw
continued improvement in both customer accounts receivable and inventory
balances over the course of the first quarter.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">As of March
31st, cash and equivalents totaled $337 million, up $125 million from the year-end
level. In addition to the existing cash and equivalents, we have about $280
million of unused borrowing capacity under our revolving credit agreement and
in January, we entered into a new term loan agreement that provides additional
borrowing capacity of</font></p>

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<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">$225
million.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We believe that these resources,
together with expected cash flows from operating activity, provide sufficient
liquidity and financial flexibility to meet our day to day operating needs for
the foreseeable future.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">And
now, I'll turn the call over to Vicki Villacrez to discuss TDS Telecom. Vicki.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:.15pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:3.2pt;text-indent:10.0pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Vicki
L. Villacrez</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Okay. Thank you, Steve, and good
morning, everyone. TDS Telecom is also off to a good start as we continue to
execute on our strategic priorities and our first quarter performance
demonstrates that. For the wireline and cable segments, this means we continue
to focus on owning the best [ph] slice (23:18) of the market and using that
advantage to grow high margin broadband services bundled with video and voice
products.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:20.25pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">For the
HMS segment, we continue to execute the vision we have for profitably serving
the IT outsourcing needs of mid-market customers. In our wireline business, we
have continued our focus on providing high-speed data services and related
products which has led to growth in both broadband and IPTV connections.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our IPTV product
called TDS TV is an important offering that leverages our high-speed network.
TDS TV has been launched in 18 markets enabling 142,000 service addresses, or
roughly 20% of our total footprint. We're very pleased with the success of our
IPTV deployments and will continue to make fiber investments this year to
achieve our goal of approximately 25%.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The integration
of our cable businesses has been very productive. BendBroadband's performance has
been strong and is exceeding our expectations. We are also pleased with Baja's
progress. And we continue to increase broadband connections and identify
synergy opportunities giving us confidence in our overall cable strategy, which
is based on our belief that it is a natural extension of what we do.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Providing
broadband, video and voice services to both residential and commercial
customers allows us to leverage significant expertise and infrastructure within
our organization.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">In HMS, we
continue to focus on driving recurring service revenue growth by improving our
ability to sell across our entire portfolio of offerings.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Moving to the
first quarter results shown on slides 17, TDS Telecom had another good quarter.
First, we had solid results with our wireline segment, which contributed a 2%
increase in operating cash flow. Second, cable operations nearly doubled in
size with the integration of BendBroadband and grew revenues 2%, excluding that
impact. And third, HMS total revenues decreased 3% due to lower equipment
sales.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">However, our
recurring hosting revenues grew 3%. While the results are less than we planned,
we are encouraged by our pipeline and expect these revenue growth rates to
improve over the year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:10.65pt;margin-top:0in;text-align:justify;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">On a
consolidated basis, TDS Telecom's revenues increased 7% driven primarily from
the BendBroadband acquisition on September 1, 2014. Adjusting for the impacts
of acquisitions, revenues declined $3 million or 1%, due primarily to lower HMS
equipment sales and lower wireline wholesale revenues.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Adjusted
EBITDA, which is essentially operating cash flow for TDS Telecom, grew 10% year
over</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.5pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">year primarily driven by contributions
from cable acquisitions. Without the effects of acquisitions, adjusted EBITDA
was flat.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.55pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Looking at
wireline results on slide 18, retail revenue, which is residential and
commercial combined, was flat year over year. Residential revenues grew 3% as
growth in broadband and IPTV more than offset the decline in legacy voice
services.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Commercial
revenues, however, decreased 4% as our managed IP sales did not keep pace with
decreases in legacy voice and broadband connections. Wholesale revenues
decreased this quarter as a result of continuing decreases and regulatory
recovery and lower inter-carrier compensation rates, and is in line with our
expectations.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:2.4pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">On a combined
basis, total wireline revenues declined less than 1% to $176 million in the
quarter. However, due to cost control initiatives, cash expenses declined 2%
from the same period last year. As a result, adjusted EBITDA increased 2%.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></b></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Turning to slide
19, our strategic focus on broadband and our IPTV products is reflected in our
residential customer metrics. Residential broadband customers are increasingly
choosing higher speeds in our ILEC markets, with 42% choosing speeds of 10 </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">megabits or greater and 12% choosing speeds of 25 megabits
or greater. We continue to be very pleased with the overall IPTV uptake and we
are seeing average penetration rates exceeding our expectations.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">IPTV connections
grew 61%, adding 9,700 subscribers compared to the prior year. We are offering
up to 300-megabit data speeds and have launched [ph] 1-gig (28:37) services in
all 18 IPTV markets. These actions are driving 97% of our customers to take all
three services which results in a very low churn rate of roughly one half of a
percent.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Our investments
in these markets, along with the completion of the broadband stimulus projects,
has contributed to broadband connection growth over the last four quarters. As
you can see in the table on the bottom of the slide, average revenue per
residential connection increased 4% to $42 driven by price increases for
broadband and video services, customers opting for faster broadband speeds and
also customers selecting our higher tiered IPTV packages.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Looking at the
cable segment on slide 20, you can see the effects of acquisitions on the 2015
results, which include the combined results of Baja and BendBroadband. The 2014
results reflect only Baja.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Total cable
connections grew 271,000, primarily due to BendBroadband. On a same-store
basis, total residential connections grew 7% as growth in broadband and voice
were partially offset by a decline in our video connections.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Commercial
connections grew 1% on a same-store basis. Excluding BendBroadband, revenues
grew 2% driven by an increase in average residential connections. Cash expenses
increased due to higher plant maintenance and programming content costs. It is
our general intent to cover our higher content costs through price increases.
The increase in cable adjusted EBITDA was due to our BendBroadband acquisition.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Turning to the
HMS segment, on slide 21, we continue to focus on organic growth and [ph] our
recurring (30:47) hosting service revenues, which was 3% for the quarter.
Equipment sales were down $3 million due to the lower spending by existing
customers. Cash expenses were down 4% compared to the same period in the prior
year which mainly reflects lower cost of goods sold.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Other operating
expenses were up slightly, however, that increase does include a $1 million
commission related to our recent multi-service contract with the city of
Minneapolis. This commission expense is recognized [ph] in advance of (31:24)
revenues. This resulted in adjusted EBITDA of $1 million being relatively flat
year over year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">We have provided
our 2015 guidance on slide 22 which is unchanged from the guidance we shared in
February. Overall, we're pleased with the results of our first quarter and
we'll continue to update you on our successful execution of our strategic priorities
throughout the year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Now,
I'll turn the call back over to Jane.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Jane W. McCahon</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Thanks, Vicki. Operator, we would like
to open up the call for questions now. In addition to our speakers this morning
Jay Ellison, EVP of Operations; and Mike Irizarry, CTO at US Cellular have
joined us in the room for questions.</font></p>

<h1 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:7.55pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Q&amp;A</font></b></h1>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:13.0pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Thank you. We'll now be conducting a
question-and-answer session. [Operator Instructions] Our first question today
is coming from Sergey Dluzhevskiy from Gabelli &amp; Company. Please proceed
with your question.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Sergey
Dluzhevskiy&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Good morning, guys. A couple of questions, if I could. The first one is for
Doug. TDS didn't repurchase any stock in the first quarter. Could you comment
whether there were any timing reasons maybe related to blackout or when you
reported earnings in the quarter or was it there were any other legal reasons that
[indiscernible] (33:11) you from buying stock back in the quarter and also, how
should [ph] we (33:14) think about your appetite for buybacks for the balance
of the year?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Douglas
D. Shuma&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Yes. Sergey, as I mentioned in my comments, there's always a myriad of reasons,
we may be in or out of some market. I'm not really going to speak to what those
exact reasons might be. As far as the balance of the rest of the year, I think
we're sticking to the 75:25 allocation that we've stated over the years and
you'll see that play out over time.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Sergey
Dluzhevskiy&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Okay. And a couple of questions for Ken. So, on the auction side, I guess,
related to upcoming broadcasting spectrum auction, given the lessons learned by
the wireless industry from the [indiscernible] (33:58) spectrum auction, what
are your thoughts on the timing and potential format of the broadcasting
spectrum auction and given what you know now, what are your expectations as far
as company participation in that auction?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:6.35pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Well, my crystal ball is probably no better than yours at this point, Sergey.
There's a lot of noise, a lot of discussion going on, everything that I'm
hearing says it's still going to happen in 2016, probably second half, but I
have no inside track on that whatsoever. We historically have participated one
way or another in almost every auction out there. We do it through a </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:6.35pt;margin-top:0in;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">very disciplined process looking at both what we see as
the value of the spectrum, as well as other options to meet future capacity
needs.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">I would expect
that all the other things being equal, we'd participate in a future auction
following the same strategy as we have in the past, but my guess is we're at
least a year away from any decisions on that front.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Sergey
Dluzhevskiy&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
All right. And also another wireless question. It seems like your two main
wireless competitors, AT&amp;T and Verizon are increasingly moving towards
converged services. Do you see a need to partner with wireline or cable
providers in some of your markets, maybe, in your larger markets that
potentially could help you reduce churn and maybe help counter some of the
current moves and maybe, future moves by your two larger competitors?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Yes. Great question. A lot of action on the competitive front, whether it be
pricing or product, we can &#8211; we, too, are looking at all the different options,
whether it be a video play or something different that we do with our owned
services. As I mentioned, yes, I think we will see a couple of changes in the
next couple of quarters that I really &#8211; I am not ready to talk about yet.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:5.35pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">The role of
video is an open question. I mean, you put a lot of video on our wireless
networks and that's go to get either very expensive or very clogged very soon.
So, I'm not sure just where video plays long term, but we will continue to test
and continue to evaluate different products and services for our customers on a
continual basis.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.45pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Sergey
Dluzhevskiy&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Okay. And last question for Vicki or maybe for Doug on the wireline side. So,
obviously we saw a cancellation of a large deal in the cable industry, Comcast,
Time Warner Cable and the regulator's position on that particular deal. So what
are your thoughts on cable M&amp;A over the next few years in general and how
do you think this particular transaction cancellation might impact the pipeline
that you may have for cable deals in the next 12 to 18 months?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:11.6pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Vicki L.
Villacrez&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Okay. So I'll go first and then, Doug, you can comment on if you would like. I
think the Comcast, Time Warner deal, we don't believe it impacts us per se
right now. I mean, we continue to see good activity, cable activity in our
pipeline. We're actively pursuing additional cable acquisitions that meet our
criteria as well as bolt-ons. If the cancellation of this transaction follows
and we see other activity, we're hoping that will generate more opportunities
for us.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.0pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q
- Sergey Dluzhevskiy&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">:
Okay. Thank you.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Thank
you. Our next question is coming from Ric Prentiss from Raymond James. Please
proceed with your question.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-top:3.7pt;text-indent:10.0pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q - Ric H. Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">: Hi. Good morning.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;A&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">: Hi, Ric.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;A&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">: Good morning, Ric.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:14.35pt;margin-top:7.5pt;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Ric H.
Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
First question is on operating cash flow if I could. Obviously, nice to see
guidance go up [ph] as we're a little light (38:07) and you talked to that Ken.
But can we talk a little bit about what would it take to hit the high-end of
that guidance or above and what would happen to cause you to go to the low end
of that guidance?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.75pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Boy, lots of things can go either way. But in terms of how we're' thinking
about it right now, as I said, good quarter, but I would have liked to have
seen more adds and kind of, it's the model that you know all too well, growth
costs money on the front end whether it be commissions, subsidies whatever.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.75pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">So if we get the
growth that we are targeting, I expect to be right in the range on cash flow.
To the extent that growth turns out to be lighter, growth [ph] in term (39:01)
driven by fewer gross adds, then we could be at the top end. We get more
growth, we can push that down. It's all [indiscernible] (39:13) the growth is
the single biggest variance of what I'm looking at right now.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:6.95pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">And just &#8211; it's
a market where the consumer really is extraordinarily cautious right now. And
so, we're just going to continue to kind of monitor the market and when we see
opportunities, I want to be able to move and still be within my guidance and if
things change dramatically, we'll be talking to you a couple more times yet
this year and change it as we go.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Ric H.
Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Sure, makes sense. And the EIP program, I think I saw 39% take rate. Just
finished on one of your peers Intelius, they were seeing 60%, 65%, even 75%
take rate, 75% when they were incenting it, but thinking 60% to 65%, what are
your thoughts about where EIP heads and what's baked into the guidance?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
I'll let Steve talk about how we're thinking about it longer-term for the rest
of the year, but I think you touched upon something there, which was, you can't
be higher if you incent it. Our approach to the marketplace is what we call
relationship-based sales and our sales force is instructed and taught and
trained to make sure they explore and understand the </font><!-- Do not modify beyond this point! !--><a name=bcl_connect_next></a></p>
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<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><a name=bcl_connect_prev></a><!-- Do not modify before this point! !--><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">customers'
needs and then get them in the right product or service. We don't push one
product, one rate plan, one service over another, but make sure that we do a
good job of understanding what those customer needs are.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Steven
T. Campbell&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Yes. So, Ric, as far as the guidance is concerned, as we disclosed in our
prepared comments, we were at about 39% for the quarter. Ken had also mentioned
that that percentage was affected to some degree by that special tablet
promotion we were running. So, depending on whether similar promotions are
running the balance of the year, there would be some impact on that number, but
we built guidance around an assumption of about 45% to 50% for the balance the
year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.15pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Ric H.
Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Okay. Makes sense. And as you think about the turnaround that you've been
executing with getting the network in place, the billing system with EIP and
shared data and the iPhone now in place for almost a year-and-a-half, I guess,
subs have improved, revenue has grown, operating cash flow has grown. When we
look at the turnaround, kind of the last part of the turnaround is also free
cash flow. What are your thoughts about getting back to</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">free cash flow
positive and where that could head and probably, obviously links back to where
margins [ph] could head (41:53)</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Boy, you got the subs, you got the revenue, you got the cash flow, and now you
want more yet. And so do I.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.0pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q
- Ric H. Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">:
I always want more.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: So do I.
That's my message to the organization. I'd say the big question on operating on
free cash flow that I want to be careful, we're early into it, is really going
to be driven by what changes we have to or don't have to make in the network as
we move from LTE to voice-over-LTE. We are doing a three market commercial test
this year. It will be later this year by the time we turn that on and we need
to make sure that we have a network in a VoLTE world that is the same quality
that we have in a CDMA voice world, at least. And CDMA has been a wonderful, wonderful
technology.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:6.5pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">To the extent
that the difference between those technologies impacts capital spending for a
year or two, it's just uncertain right now. And so more &#8211; I would say, later
this year when we start seeing those test results which will help us kind of
set the path for our capital going forward. But between now and then, the focus
on growing both top line and operating cash flow is what we are really centered
in on.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.0pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q
- Ric H. Prentiss&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">:
Great. Thanks.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;A
- Kenneth R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">:
Thank you.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Thank
you. Our next question today is coming from Philip Cusick from JP Morgan.
Please proceed with your question.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: Hi this is
[ph] Eric Gill (43:34) Thanks for taking the questions. Churn has come down
quite nicely this quarter. Do you think there's more room for improvement or is
this the optimal structure level that we can expect going forward?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:7.3pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Well, I've never seen a metric that I said was optimal, I always want more. And
one of the big changes we've done over the last year, you go back, [ph] I guess
was it (43:57) 15 months now, 18 months ago, and we had less than 40% of our
customers under contracts and between changes to our offerings, changes to
EIPs, we're up to cash 75-plus-percent of our customers and now, either on EIP
plans, and we're seeing really good results in terms of customer satisfaction,
all of the drivers. We're seeing customers that had left us in the past coming
back to us because of the network quality. So I'm optimistic that we can
continue to improve on that metric.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: Great. And
then, CapEx was a lot lower than the $600 million run rate this year. What
caused the slowdown there and do you expect it to ramp back up later this year
and for what reason?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.75pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Well, I'd say that that's pretty typical in our geographies between the
northeast up in Maine, New Hampshire and the northwest out in Washington and
Oregon. There's not a lot of construction projects going on in January,
February and March. So, first quarter is typically a little bit lighter and we
are not moving off guidance. We still expect to complete all the projects we've
laid out for the year.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:9.65pt;margin-top:0in;text-align:justify;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: Got it. And
then, on the spectrum front, you guys spent a little less than $300 million in
the most recent auction. Considering that level of competition and looking
forward to the auction next year, do you expect to spend more to get the
low-band spectrum that you think you will need, and how much spectrum would you
ideally like to get?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:8.2pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
[ph] Eric (45:49), those are unanswerable at this time. Our partner actually
invested, I think about &#8211; a little bit over [ph] $300 million on a net base of
$300 million &#8211; almost $340 million (46:00) just to kind of get the facts out
there. And we constantly are evaluating our spectrum positions. We are working
with that partner right now to look at where we sit today and that's more of a
market-by-market analysis than it is a general kind of across the Board and our
strategy is to make sure that we have access to both high and low-band
spectrum, so we can be prepared for carrier aggregation, which Mike would tell
you we're going to be testing later this year.</font></p>


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<p style="margin:0in;margin-bottom:.0001pt;tab-stops:center 3.25in right 6.5in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:12.0pt;">&nbsp;</font></p>


</DIV>
<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">So,
once we get through that cycle later this year, I think we'll be better
positioned to understand where we need it, but as a starting point, I'd say in
most of our markets, we start with a low band 850 MHz, we have 700 MHz in many
of our markets. So, right now, I'm feeling pretty good about our low band
position.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.85pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: Got it. Okay.
And then last question maybe for Vicki. Considering the performance of the
cable assets that you acquired, are you pleased so far? And would you be
actively looking to do more deals?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&nbsp;</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Vicki L.
Villacrez&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Yes, I think I was pretty clear in my comments and the progress that we've seen.
We're very pleased with our performance so far. Cable overall in the first
quarter with the organic growth and our connections of 7% is meeting our
expectations.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">I'm very pleased
with our BendBroadband acquisition as well. That's exceeding our expectations.
And yes, we're actively pursuing to grow that part of our business and are
pleased with the activity in our pipeline.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">: Great. Thank you very much.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Thank
you. Our next question is coming from Barry Sine Drexel Hamilton. Please
proceed with your question.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:7.5pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;Q - Barry Michael Sine&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">: Good morning,
folks. I wanted to ask &#8211; as you pointed out, there's always a balance between
growth and profitability in your business and it seems as if you are kind of
signaling you're going to spend a bit more on customer acquisitions and then I
guess, the low hanging fruit converting feature phone customers over to
smartphone customers.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">I wonder if you
can talk about kind of why you decided to get a bit more aggressive. And what
I'm wondering about is, if I look across the industry and the big four players,
churn seems to be coming down across the industry, so I would think there would
be fewer opportunities to poach away customers. I can understand converting to
feature phone, but if you could kind of comment on that balance and where you
are in that continual?</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">&lt;A - Kenneth
R. Meyers&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">:
Yes. Barry, this is Ken. You're touching upon the uncertainty that's out there
for the next nine months. From a strategic standpoint, I would like to get
bigger. While we are doing a great job attracting back customers that left us
over the last couple of years, mathematically, we don't have them all back yet;
all right? And those are people that know our network, they know our service,
it's met their needs. We either didn't have the right products or services or
disappointed them in the past. So, I would like to get them back. I would like
to improve my market share position in some of my markets, but only at a level
of spend that is still economical.</font></p>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:0in;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Now to the
extent that the US consumer continues to stay extraordinarily cautious and the
switching pool shrinks, we won't have that opportunity. We, therefore, won't
spend those marketing dollars and you are going to see a little bit more cash
flow. But if I think about long-term, I'd still like to see the company grow
from where it's at today and have built that into our strategies for the year
and built that into our guidance. How the year plays out over the next few
months, stay tuned, we'll both know.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:7.0pt;"><b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&lt;Q
- Barry Michael Sine&gt;</font></b><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">:
All right. Thank you very much.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:4.2pt;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;line-height:104%;">Thank you. We've reached the end of our
question-and-answer session. I'd like to turn the floor back over to management
for any further closing comments.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:7.75pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Jane W. McCahon</font></b></h2>

<p style="margin-bottom:6.0pt;margin-left:0in;margin-right:0in;margin-top:7.6pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Just
like to thank you all for joining us. If you have any follow-up questions,
please reach out. Thanks.</font></p>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">&nbsp;</font></p>

<h2 style="margin-bottom:0in;margin-left:10.0pt;margin-right:0in;margin-top:8.25pt;"><b><font face="Times New Roman,serif" style="font-size:10.0pt;">Operator</font></b></h2>

<p style="margin:0in;margin-bottom:.0001pt;"><font face="Times New Roman,serif" lang=EN-US style="font-size:10.0pt;">Thank you.
That does conclude today's teleconference. You may disconnect your lines at
this time and have a wonderful day. We thank you for your participation today.</font></p>

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