Exhibit 99.1   NEWS RELEASE

As previously announced, TDS will hold a teleconference May 7, 2021, at 9:00 a.m. CDT. Listen to the call live via the Events & Presentations page of investors.tdsinc.com. 

 FOR IMMEDIATE RELEASE

TDS reports first quarter 2021 results

UScellular raises 2021 guidance with strong first quarter performance;

TDS Telecom hits 500,000 broadband connections

CHICAGO (May 6, 2021) — Telephone and Data Systems, Inc. (NYSE:TDS) reported total operating revenues of $1,318 million for the first quarter of 2021, versus $1,261 million for the same period one year ago. Net income attributable to TDS common shareholders and related diluted earnings per share were $57 million and $0.48, respectively, for the first quarter of 2021 compared to $69 million and $0.59, respectively, in the same period one year ago.

“The TDS Family of Businesses made a strong start to 2021 and are well-positioned to achieve their strategic priorities," said LeRoy T. Carlson, Jr., TDS President and CEO. “UScellular and TDS Telecom produced impressive financial results and continued to provide essential communications, including high-quality data, video and voice services to our customers and communities. We are implementing our financing strategies to maintain a strong, yet flexible, financial foundation to fund our attractive investment opportunities, while also working to lower the cost of our balance sheet.

“UScellular increased service revenues, showing the positive effect of higher ARPU. Operational and cost discipline throughout the quarter also contributed to strong financial performance. Our attractive promotions are resonating with customers, and postpaid and prepaid handset additions strengthened compared to the same period a year ago. Investments in 5G and network modernization programs are on track reflecting UScellular’s commitment to continue to meet customers’ expectations for speed and reliability.

“TDS Telecom achieved excellent growth in residential customer connections and strong financial performance, driven by higher operating revenue in the first quarter. With the acceleration of its broadband strategy, 500,000 total customers are now taking broadband services, and more than half of all our customers now have 1Gig service available to them. This year, TDS Telecom has plans to double the number of service addresses that it built fiber to last year, building on the success of the program to-date.”

1

2021 Estimated Results

TDS’ current estimates of full-year 2021 results for UScellular and TDS Telecom are shown below. Such estimates represent management’s view as of May 6, 2021 and should not be assumed to be current as of any future date. TDS undertakes no duty to update such estimates, whether as a result of new information, future events, or otherwise. There can be no assurance that final results will not differ materially from estimated results.

2021 Estimated Results
UScellular			Previous			Current
(Dollars in millions)
Service revenues			$3,025-$3,125			$3,050-$3,150
Adjusted OIBDA1			$800-$950			$850-$950
Adjusted EBITDA1			$975-$1,125			$1,025-$1,125
Capital expenditures			$775-$875			Unchanged

TDS Telecom			Previous			Current
(Dollars in millions)
Total operating revenues			$975-$1,025			Unchanged
Adjusted OIBDA1			$290-$320			Unchanged
Adjusted EBITDA1			$290-$320			Unchanged
Capital expenditures			$425-$475			Unchanged

The following tables reconcile EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measures, Net income or Income before income taxes. In providing 2021 estimated results, TDS has not completed the below reconciliation to Net income because it does not provide guidance for income taxes. Although potentially significant, TDS believes that the impact of income taxes cannot be reasonably predicted; therefore, TDS is unable to provide such guidance.

			2021 Estimated Results
			UScellular						TDS Telecom
(Dollars in millions)
Net income (GAAP)			N/A						N/A
Add back:
Income tax expense			N/A						N/A
Income before income taxes (GAAP)			$175-$275						$80-$110
Add back:
Interest expense			150						—
Depreciation, amortization and accretion expense			680						210
EBITDA (Non-GAAP)1			$1,005-$1,105						$290-$320
Add back or deduct:
(Gain) loss on asset disposals, net			20						—
Adjusted EBITDA (Non-GAAP)1			$1,025-$1,125						$290-$320
Deduct:
Equity in earnings of unconsolidated entities			170						—
Interest and dividend income			5						—
Adjusted OIBDA (Non-GAAP)1			$850-$950						$290-$320

2

			Actual Results
			Three Months Ended March 31, 2021												Year Ended December 31, 2020
			UScellular						TDS Telecom												UScellular						TDS Telecom
(Dollars in millions)
Net income (GAAP)			$	62					$	24											$	233					$	100
Add back:
Income tax expense			27						8												17						18
Income before income taxes (GAAP)			$	89					$	33											$	250					$	117
Add back:
Interest expense			39						(1)												112						(4)
Depreciation, amortization and accretion expense			170						49												683						203
EBITDA (Non-GAAP)1			$	298					$	80											$	1,045					$	316
Add back or deduct:
(Gain) loss on asset disposals, net			5						—												25						1
(Gain) loss on sale of business and other exit costs, net			(1)						—												—						—
(Gain) loss on license sales and exchanges, net			—						—												(5)						—
(Gain) loss on investments			—						—												(2)						—
Adjusted EBITDA (Non-GAAP)1			$	302					$	81											$	1,063					$	317
Deduct:
Equity in earnings of unconsolidated entities			42						—												179						—
Interest and dividend income			2						—												8						5
Other, net			—						—												—						(1)
Adjusted OIBDA (Non-GAAP)1			$	258					$	81											$	876					$	314

Numbers may not foot due to rounding.

1EBITDA, Adjusted EBITDA and Adjusted OIBDA are defined as net income adjusted for the items set forth in the reconciliation above. EBITDA, Adjusted EBITDA and Adjusted OIBDA are not measures of financial performance under Generally Accepted Accounting Principles in the United States (GAAP) and should not be considered as alternatives to Net income or Cash flows from operating activities, as indicators of cash flows or as measures of liquidity. TDS does not intend to imply that any such items set forth in the reconciliation above are non-recurring, infrequent or unusual; such items may occur in the future. Management uses Adjusted EBITDA and Adjusted OIBDA as measurements of profitability, and therefore reconciliations to Net income are deemed appropriate. Management believes Adjusted EBITDA and Adjusted OIBDA are useful measures of TDS’ operating results before significant recurring non-cash charges, gains and losses, and other items as presented above as they provide additional relevant and useful information to investors and other users of TDS’ financial data in evaluating the effectiveness of its operations and underlying business trends in a manner that is consistent with management’s evaluation of business performance. Adjusted EBITDA shows adjusted earnings before interest, taxes, depreciation, amortization and accretion, and gains and losses, while Adjusted OIBDA reduces this measure further to exclude Equity in earnings of unconsolidated entities and Interest and dividend income in order to more effectively show the performance of operating activities excluding investment activities. The table above reconciles EBITDA, Adjusted EBITDA and Adjusted OIBDA to the corresponding GAAP measure, Net income or Income before income taxes. Additional information and reconciliations related to Non-GAAP financial measures for March 31, 2021, can be found on TDS' website at investors.tdsinc.com.

3

Stock Repurchase

During the first quarter of 2021, TDS repurchased 162,500 Common Shares for $3 million and UScellular repurchased 54,900 Common Shares for $2 million.

Conference Call Information

TDS will hold a conference call on May 7, 2021 at 9:00 a.m. Central Time.

▪Access the live call on the Events & Presentations page of investors.tdsinc.com or at

https://event.on24.com/wcc/r/3155155/0CD2FBCBA421B063439060A77D169D23

▪Access the call by phone at (833) 968-2187, conference ID: 2661419. 

Before the call, certain financial and statistical information to be discussed during the call will be posted to investors.tdsinc.com. The call will be archived on the Events & Presentations page of investors.tdsinc.com. 

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 1000® company, provides wireless; broadband, video and voice; and hosted and managed services to approximately 6 million connections nationwide through its businesses, UScellular, TDS Telecom, and OneNeck IT Solutions. Founded in 1969 and headquartered in Chicago, TDS employed approximately 9,100 associates as of March 31, 2021.

Visit investors.tdsinc.com for comprehensive financial information, including earnings releases, quarterly and annual filings, shareholder information and more.

Contacts

Jane W. McCahon, Senior Vice President - Corporate Relations and Corporate Secretary

jane.mccahon@tdsinc.com

Julie D. Mathews, IRC, Director - Investor Relations

julie.mathews@tdsinc.com

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company’s plans, beliefs, estimates, and expectations. These statements are based on current estimates, projections, and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: intense competition; the ability to obtain or maintain roaming arrangements with other carriers on acceptable terms; the ability to obtain access to adequate radio spectrum to meet current or anticipated future needs, including participation in FCC auctions; the ability to attract people of outstanding talent throughout all levels of the organization; TDS’ smaller scale relative to larger competitors; changes in demand, consumer preferences and perceptions, price competition, or churn rates; advances in technology; impacts of costs, integration problems or other factors associated with acquisitions, divestitures or exchanges of properties or wireless spectrum licenses and/or expansion of TDS’ businesses; the ability of the company to successfully construct and manage its networks; difficulties involving third parties; uncertainties in TDS’ future cash flows and liquidity and access to the capital markets; the ability to make payments on TDS and UScellular indebtedness or comply with the terms of debt covenants; conditions in the U.S. telecommunications industry; the value of assets and investments; the state and federal regulatory environment; pending and future litigation; cyber-attacks or other breaches of network or information technology security; disruption in credit or other financial markets; deterioration of U.S. or global economic conditions; the impact, duration and severity of public health emergencies, such as the COVID-19 pandemic. Investors are encouraged to consider these and other risks and uncertainties that are more fully described under “Risk Factors” in the most recent filing of TDS’ Form 10-K, as updated by any TDS Form 10-Q filed subsequent to such Form 10-K.    

For more information about TDS and its subsidiaries, visit:

TDS: www.tdsinc.com 

UScellular: www.uscellular.com 

TDS Telecom: www.tdstelecom.com 

OneNeck IT Solutions: www.oneneck.com

4

United States Cellular Corporation
Summary Operating Data (Unaudited)
As of or for the Quarter Ended			3/31/2021						12/31/2020						9/30/2020						6/30/2020						3/31/2020
Retail Connections
Postpaid
Total at end of period			4,406,000						4,412,000						4,401,000						4,372,000						4,359,000
Gross additions			143,000						171,000						168,000						129,000						132,000
Feature phones			3,000						2,000						4,000						3,000						2,000
Smartphones			101,000						117,000						98,000						82,000						88,000
Connected devices			39,000						52,000						66,000						44,000						42,000
Net additions (losses)			(6,000)						11,000						28,000						12,000						(26,000)
Feature phones			(9,000)						(9,000)						(8,000)						(8,000)						(10,000)
Smartphones			6,000						12,000						8,000						11,000						(10,000)
Connected devices			(3,000)						8,000						28,000						9,000						(6,000)
ARPU1			$	47.65					$	47.51					$	47.10					$	46.24					$	47.23
ARPA2			$	125.25					$	124.87					$	123.27					$	120.70					$	122.92
Churn rate3			1.12		%				1.21		%				1.06		%				0.89		%				1.21		%
Handsets			0.92		%				1.01		%				0.88		%				0.71		%				0.95		%
Connected devices			2.53		%				2.64		%				2.35		%				2.24		%				3.11		%
Prepaid
Total at end of period			496,000						499,000						506,000						496,000						494,000
Gross additions			62,000						56,000						65,000						62,000						57,000
Net additions (losses)			(3,000)						(8,000)						11,000						2,000						(12,000)
ARPU1			$	35.25					$	35.15					$	35.45					$	34.89					$	34.07
Churn rate3			4.37		%				4.24		%				3.59		%				4.05		%				4.67		%
Total connections at end of period4			4,961,000						4,968,000						4,962,000						4,919,000						4,903,000
Market penetration at end of period
Consolidated operating population			31,493,000						31,314,000						31,314,000						31,292,000						31,292,000
Consolidated operating penetration5			16		%				16		%				16		%				16		%				16		%
Capital expenditures (millions)			$	125					$	320					$	216					$	168					$	236
Total cell sites in service			6,802						6,797						6,758						6,673						6,629
Owned towers			4,270						4,271						4,246						4,208						4,184

1Average Revenue Per User (ARPU) - metric is calculated by dividing a revenue base by an average number of connections and by the number of months in the period. These revenue bases and connection populations are shown below:

•Postpaid ARPU consists of total postpaid service revenues and postpaid connections.

•Prepaid ARPU consists of total prepaid service revenues and prepaid connections.

2Average Revenue Per Account (ARPA) - metric is calculated by dividing total postpaid service revenues by the average number of postpaid accounts and by the number of months in the period.

3Churn rate represents the percentage of the connections that disconnect service each month. These rates represent the average monthly churn rate for each respective period.

4Includes reseller and other connections.

5Market penetration is calculated by dividing the number of wireless connections at the end of the period by the total estimated population of consolidated operating markets.

5

TDS Telecom
Summary Operating Data (Unaudited)
As of or for the Quarter Ended			3/31/2021						12/31/2020						9/30/2020						6/30/2020						3/31/2020
Residential connections
Broadband1
Wireline, Incumbent			243,700						242,500						243,400						240,400						230,400
Wireline, Expansion			24,100						20,400						17,300						14,700						12,300
Cable			199,500						196,400						193,300						191,000						184,100
Total Broadband			467,300						459,300						454,000						446,000						426,800
Video2
Wireline			63,000						63,000						62,300						61,400						59,000
Cable			79,600						81,400						82,300						83,200						84,600
Total Video			142,700						144,400						144,500						144,600						143,600
Voice3
Wireline			255,000						256,900						260,000						261,800						259,100
Cable			53,700						53,900						54,400						55,300						54,800
Total Voice			308,700						310,800						314,400						317,100						313,900
Total Residential connections			918,700						914,400						913,000						907,800						884,300
Commercial connections
Broadband1			34,400						34,000						33,700						33,400						33,200
Video2			19,400						19,700						19,700						20,300						20,600
Voice3			116,500						119,700						122,700						126,100						128,600
ManagedIP4			108,500						113,300						116,700						117,300						119,800
Total Commercial connections			278,800						286,700						292,900						297,200						302,200
Total connections			1,197,400						1,201,100						1,205,900						1,205,000						1,186,400
Residential revenue per connection5			$	56.97					$	55.66					$	55.66					$	53.82					$	54.30
Capital expenditures (millions)			$	70					$	147					$	92					$	75					$	54

Numbers may not foot due to rounding.

1The individual customers provided high-speed internet access through various transmission technologies, including fiber, DSL, dedicated internet circuit technologies or cable modem service.

2The individual customers provided video services.

3The individual circuits connecting a customer to TDS' central office facilities that provide voice services or the billable number of lines into a building for voice services.

4The number of telephone handsets, data lines and IP trunks providing communications using IP networking technology.

5Total residential revenue per connection is calculated by dividing total residential revenue by the average number of residential connections and by the number of months in the period.

6

Telephone and Data Systems, Inc.
Consolidated Statement of Operations Highlights
(Unaudited)
			Three Months Ended March 31,
			2021						2020						2021 vs. 2020
(Dollars and shares in millions, except per share amounts)
Operating revenues
UScellular			$	1,023					$	963					6		%
TDS Telecom			249						240						4		%
All Other1			46						58						(21)		%
			1,318						1,261						4		%
Operating expenses
UScellular
Expenses excluding depreciation, amortization and accretion			765						732						5		%
Depreciation, amortization and accretion			170						177						(4)		%
(Gain) loss on asset disposals, net			5						4						39		%
(Gain) loss on sale of business and other exit costs, net			(1)						—						N/M
			939						913						3		%
TDS Telecom
Expenses excluding depreciation, amortization and accretion			168						160						5		%
Depreciation, amortization and accretion			49						52						(5)		%
			217						212						2		%
All Other1
Expenses excluding depreciation and amortization			47						58						(19)		%
Depreciation and amortization			5						6						(17)		%
			52						64						(19)		%
Total operating expenses			1,208						1,189						2		%
Operating income (loss)
UScellular			84						50						67		%
TDS Telecom			32						28						12		%
All Other1			(6)						(6)						3		%
			110						72						52		%
Investment and other income (expense)
Equity in earnings of unconsolidated entities			42						45						(7)		%
Interest and dividend income			3						6						(44)		%
Interest expense			(53)						(37)						(45)		%
Total investment and other income			(8)						14						N/M
Income before income taxes			102						86						18		%
Income tax expense			31						3						N/M
Net income			71						83						(14)		%
Less: Net income attributable to noncontrolling interests, net of tax			12						14						(9)		%
Net income attributable to TDS shareholders			59						69						(15)		%
TDS Preferred dividend requirement			2						—						N/M
Net income attributable to TDS common shareholders			$	57					$	69					(18)		%
Basic weighted average shares outstanding			114						115						–
Basic earnings per share attributable to TDS common shareholders			$	0.49					$	0.60					(18)		%
Diluted weighted average shares outstanding			116						116						–
Diluted earnings per share attributable to TDS common shareholders			$	0.48					$	0.59					(18)		%

N/M - Percentage change not meaningful.

Numbers may not foot due to rounding.

1Consists of TDS corporate, intercompany eliminations and all other business operations not included in the UScellular and TDS Telecom segments.

7

Telephone and Data Systems, Inc.
Consolidated Statement of Cash Flows
(Unaudited)
			Three Months Ended March 31,
			2021						2020
(Dollars in millions)
Cash flows from operating activities
Net income			$	71					$	83
Add (deduct) adjustments to reconcile net income to net cash flows from operating activities
Depreciation, amortization and accretion			224						235
Bad debts expense			8						34
Stock-based compensation expense			10						11
Deferred income taxes, net			27						75
Equity in earnings of unconsolidated entities			(42)						(45)
Distributions from unconsolidated entities			23						25
(Gain) loss on asset disposals, net			5						4
(Gain) loss on sale of business and other exit costs, net			(1)						—
Other operating activities			(1)						—
Changes in assets and liabilities from operations
Accounts receivable			17						43
Equipment installment plans receivable			(18)						23
Inventory			8						(52)
Accounts payable			(115)						87
Customer deposits and deferred revenues			9						(9)
Accrued taxes			—						(74)
Accrued interest			9						9
Other assets and liabilities			(69)						(82)
Net cash provided by operating activities			165						367
Cash flows from investing activities
Cash paid for additions to property, plant and equipment			(220)						(377)
Cash paid for intangible assets			(1,261)						(26)
Cash paid for investments			—						(1)
Cash received from divestitures and exchanges			1						—
Net cash used in investing activities			(1,480)						(404)
Cash flows from financing activities
Issuance of long-term debt			567						50
Repayment of long-term debt			—						(2)
Issuance of TDS Preferred Shares			420						—
TDS Common Shares reissued for benefit plans, net of tax payments			(1)						(1)
UScellular Common Shares reissued for benefit plans, net of tax payments			(1)						—
Repurchase of TDS Common Shares			(3)						(6)
Repurchase of UScellular Common Shares			(2)						(21)
Dividends paid to TDS shareholders			(20)						(19)
Payment of debt and equity issuance costs			(14)						(3)
Distributions to noncontrolling interests			(1)						(1)
Other financing activities			(3)						—
Net cash provided by (used in) financing activities			942						(3)
Net decrease in cash, cash equivalents and restricted cash			(373)						(40)
Cash, cash equivalents and restricted cash
Beginning of period			1,452						474
End of period			$	1,079					$	434

8

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
ASSETS
			March 31, 2021						December 31, 2020
(Dollars in millions)
Current assets
Cash and cash equivalents			$	1,042					$	1,429
Short-term investments			3						3
Accounts receivable, net			1,097						1,112
Inventory, net			145						154
Prepaid expenses			114						105
Income taxes receivable			188						187
Other current assets			53						36
Total current assets			2,642						3,026
Assets held for sale			1						2
Licenses			3,924						2,638
Goodwill			547						547
Other intangible assets, net			213						213
Investments in unconsolidated entities			497						477
Property, plant and equipment, net			3,951						3,972
Operating lease right-of-use assets			1,005						998
Other assets and deferred charges			627						652
Total assets			$	13,407					$	12,525

9

Telephone and Data Systems, Inc.
Consolidated Balance Sheet Highlights
(Unaudited)
LIABILITIES AND EQUITY
			March 31, 2021						December 31, 2020
(Dollars in millions, except per share amounts)
Current liabilities
Current portion of long-term debt			$	6					$	5
Accounts payable			360						508
Customer deposits and deferred revenues			202						193
Accrued interest			25						16
Accrued taxes			67						69
Accrued compensation			73						132
Short-term operating lease liabilities			134						129
Other current liabilities			96						101
Total current liabilities			963						1,153
Liabilities held for sale			—						1
Deferred liabilities and credits
Deferred income tax liability, net			890						863
Long-term operating lease liabilities			941						940
Other deferred liabilities and credits			558						541
Long-term debt, net			3,991						3,424
Noncontrolling interests with redemption features			10						10
Equity
TDS shareholders' equity
Series A Common and Common Shares, par value $0.01 per share			1						1
Capital in excess of par value			2,488						2,482
Preferred Shares, par value $0.01 per share			408						—
Treasury shares, at cost			(472)						(477)
Accumulated other comprehensive loss			(3)						(4)
Retained earnings			2,830						2,802
Total TDS shareholders' equity			5,252						4,804
Noncontrolling interests			802						789
Total equity			6,054						5,593
Total liabilities and equity			$	13,407					$	12,525

10

Balance Sheet Highlights
(Unaudited)
			March 31, 2021
									TDS						TDS Corporate						Intercompany						TDS
			UScellular						Telecom						& Other						Eliminations						Consolidated
(Dollars in millions)
Cash and cash equivalents			$	479					$	177					$	564					$	(178)					$	1,042
Licenses, goodwill and other intangible assets			$	3,915					$	761					$	8					$	—					$	4,684
Investment in unconsolidated entities			455						4						45						(7)						497
			$	4,370					$	765					$	53					$	(7)					$	5,181
Property, plant and equipment, net			$	2,419					$	1,435					$	97					$	—					$	3,951
Long-term debt, net:
Current portion			$	2					$	—					$	4					$	—					$	6
Non-current portion			2,981						4						1,006						—						3,991
			$	2,983					$	4					$	1,010					$	—					$	3,997

11

TDS Telecom Highlights
(Unaudited)
			Three Months Ended March 31,
			2021						2020						2021 vs. 2020
(Dollars in millions)
Operating revenues
Residential
Wireline, Incumbent			$	85					$	81					6		%
Wireline, Expansion			7						4						80		%
Cable			65						60						9		%
Total residential			157						144						9		%
Commercial			47						49						(6)		%
Wholesale			45						47						(3)		%
Total service revenues			249						240						4		%
Equipment revenues			—						—						9		%
Total operating revenues			249						240						4		%
Cost of services			97						95						2		%
Cost of equipment and products			—						—						(1)		%
Selling, general and administrative expenses			70						65						9		%
Depreciation, amortization and accretion			49						52						(5)		%
(Gain) loss on asset disposals, net			—						—						N/M
Total operating expenses			217						212						2		%
Operating income			$	32					$	28					12		%

N/M - Percentage change not meaningful

Numbers may not foot due to rounding.

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Telephone and Data Systems, Inc.

Financial Measures and Reconciliations

(Unaudited)

Free Cash Flow

									Three Months Ended March 31,
															2021						2020
(Dollars in millions)
Cash flows from operating activities (GAAP)															$	165					$	367
Less: Cash paid for additions to property, plant and equipment															220						377
Free cash flow (Non-GAAP)1															$	(55)					$	(10)

1Free cash flow is a non-GAAP financial measure which TDS believes may be useful to investors and other users of its financial information in evaluating liquidity, specifically, the amount of net cash generated by business operations after deducting Cash paid for additions to property, plant and equipment.

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