Morningstar Rating

Stock Research and Analysis

by Imari Love

Bulls Say

U.S. Cellular sold its Midwest markets to Sprint, which should allow the firm to focus on the regions where it can be most competitive.
The firm's triple-play package, which bundles phone, Internet access, and satellite video service, is popular with consumers. Subscriber counts have grown steadily since inception and customer loyalty improves incrementally with each added service.
A relatively strong balance sheet gives TDS financial flexibility to compete, and the firm has also steadily returned cash to shareholders, increasing its dividend payout 38 consecutive years. Read more 

Bears Say

The three-year, $1.2 billion commitment to Apple is sizable, and the heavy subsidies attached to the device forced management to lower its full-year earnings guidance.
Consumers have a variety of alternatives to traditional phone line services, including wireless, voice over Internet protocol technology, and bundle packages offered by cable television companies, all of which are capable substitutes for what TDS offers.
TDS' wireless and wireline businesses operate in consolidating industries and would best be served in the hands of a larger player. Read more 

Management

The Carlson family controls the firm through a dual-class voting structure. It elected 8 of 12 board members, including 4 Carlson family members. LeRoy T. Carlson Jr. has been president and CEO of TDS for the past 24 years. He is also the chairman of   Read more 

Profile

Telephone and Data Systems is a diversified telecommunications operator that provides mobile, telephone, and broadband services to more than 7 million customers. The firm's   Read more 

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