Does TDS’s Expanded Buyback Highlight a New Chapter in Fiber and Tower Strategy?

In recent days, Telephone and Data Systems, Inc. announced an additional US$500 million increase to its share repurchase authorization, bringing the total buyback potential to US$750 million, and provided key updates on ongoing transformation initiatives including advancements in fiber and tower operations following the sale of its wireless business to T-Mobile. This move reflects management's increased confidence in long-term value creation as the company sharpens its focus on fiber broadband growth and monetization of tower assets through Array Digital Infrastructure. We'll examine how the sizable boost to the share repurchase program influences the evolving investment narrative for Telephone and Data Systems.

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Telephone and Data Systems Investment Narrative Recap

To invest in Telephone and Data Systems today means having confidence in its transformation into a focused fiber broadband and tower company after the exit from wireless. The newly increased US$500 million share buyback signals management’s commitment to shareholder value, but it does not materially change the near-term catalyst: accelerating fiber adoption and revenue from the ongoing expansion efforts. The main risk remains execution, specifically, whether new fiber service additions and pricing can offset losses from legacy businesses and keep pace with rising capital requirements.

One relevant recent announcement is TDS Telecom’s delivery of 42,000 new marketable fiber service addresses in just the third quarter of 2025. This ties directly to the company’s strategy of capturing a larger share of the growing demand for high-speed broadband, which is essential for meeting growth targets and mitigating revenue headwinds from legacy segments.

By contrast, investors should be aware that high ongoing capital expenditures and the pressure to meet fiber penetration targets mean that if growth slows or...

Read the full narrative on Telephone and Data Systems (it's free!)

Telephone and Data Systems' narrative projects $4.6 billion revenue and $577.2 million earnings by 2028. This requires a 1.7% yearly revenue decline and a $687.2 million earnings increase from -$110.0 million today.

Uncover how Telephone and Data Systems' forecasts yield a $52.00 fair value, a 34% upside to its current price.

Exploring Other PerspectivesTDS Earnings & Revenue Growth as at Nov 2025

Simply Wall St Community fair value estimates for TDS range from US$6.24 to US$52, with two active viewpoints. Fiber expansion success remains crucial to bridging wide opinion gaps and shaping future expectations.

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Explore 2 other fair value estimates on Telephone and Data Systems - why the stock might be worth less than half the current price!

Build Your Own Telephone and Data Systems Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Telephone and Data Systems research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision. Our free Telephone and Data Systems research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Telephone and Data Systems' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TDS.

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