Barclays Capital Global Communications, Media and Technology Conference

May 24, 2011

2

Mary N. DillonPresident and CEO

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995:

All information set forth in this presentation, 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: the ability of U.S. Cellular to successfully grow  its markets; the overall economy; competition; the access to and pricing of unbundled network elements; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; risks and uncertainties relating to possible future restatements; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in documents furnished to the SEC.

3

U.S. Cellular Operations

• High‐quality nationwide network• 47M operating pops • 91M total pops• 6M customers in 26 states

4

Recognized for Service and Quality

5

Highest Call Quality Performance Among Wireless Cell Phone Users in North Central Region, Eleven Times in a Row

J.D. Power and Associates

U.S. Cellular named among Top 200 Most Trustworthy companies

PC Magazine Readers' Choice Award (2010 Cellular Service Providers: Contract Providers)

September 7, 2010, PC MagazineDisclaimer: U.S. Cellular received the highest numerical score among wireless cell phone providers in the North Central region of the proprietary J.D. Power and Associates 2006‐2011 Wireless Call Quality Performance StudiesSM – Vol. 1 (tied in 2008 Vol. 2). 2011 Vol. 1 based on 25,019 total responses measuring 5 providers in the North Central region (IL, IN, MI, OH, WI) and measures opinions of wireless users about the call quality of their service. Proprietary study results are based on experiences and perceptions of consumers surveyed in July‐December 2010. Your experiences may vary. Visit jdpower.com

Strategy to Differentiate

• Understand our target customers• Leverage our understanding to create a 

differentiated strategy• Unique value proposition:

• Leverage our core strengths • Focus on building loyal advocates

6

The Belief Project

• No contract after the first• Reward Points• Phone replacement• Billing discounts on online payment• Overage cap/forgiveness

7

Belief Project Expected Results

• More customers in stores → incremental gross postpaid additions of at least 10%

• Customers spending more → incremental growth in ARPU• Customers staying longer → improvement in already low 

postpaid churn

8

Happiest Customers in Wireless

• New campaign designed to increase awareness and consideration of U.S. Cellular

• Encourages switching to U.S. Cellular for network quality, competitive devices

• Highlights unique benefits of   U.S. Cellular from customer’s point of view

9

Postpaid Churn Rate

10

Postpaid ARPU

11

Growing Smartphone Penetration

12

LTE Deployment Plan for 2011

13

• First roll out planned for 24 markets by November 2011• Covers 25‐30% of total subs

• Approximately 1,250 cell sites• All using 700 MHz spectrum • Target a full suite of devices at roll‐out 

Innovating the Customer Experience

• 6 million customers• The Belief Project• Valuable spectrum• 4,400 owned towers• Los Angeles minority position• Growth and profitability

14

Jane W. McCahonVice President, Corporate Relations

15

TDS Telecom

TDS Telecom Operations1.1 million access line equivalents

ILEC ‐‐ primarily residential            CLEC ‐‐ primarily small / medium commercial  

17

Strategies

• Compete aggressively for broadband services to consumers and businesses to win market share

• Prepare for IPTV launch• Selective M&A

• Tuck‐in RLECs• Hosted and managed services

• Federal Broadband Stimulus Projects

18

Penetration of Bundled Plans

19

Bundling Reduces Churn

Single Play 1.73 %Double Play DSL 1.17 %Double Play DISH .90 %Triple Play .42 %

20

ILEC Data GrowthMillions

$

Commercial Services

• Lead with flagship offering, managedIP• Broaden offering with new products and services and bundle them effectively

• Build and integrate hosted and managed services offerings

21

22

TDS Overview

• Diversified telecommunications company with two principal business unitsU.S. Cellular (83%‐owned)—wireless; 95% retail postpaid 

(NYSE:USM)TDS Telecom (wholly‐owned)—wireline; broadband focus

• 7.1 million customers in 36 states• Fortune 500® member• Controlled company with focus on long‐term value creation• Strong balance sheet; investment‐grade debt ratings

23

Delivering Value to Shareholders

Dividends Per Share

0

1

2

3

4

5

6

7

2007 2008 2009 2010

Shares Repurchased(Common/Special Common)

(in millions)

* Retroactively adjusted for the effect of the 2005 stock dividend.

24

Liquidity – March 31, 2011

• ~4,400 owned towers 

– Tower rental revenue of $35M in 2010

• Los Angeles minority position, carried at book

– $65M of investment income in 2010

In millions

25

Long-Term Debt Repayment

In millions

26

Investment Highlights

• Strategies focused on providing exceptional customer experiences

• Well-positioned in existing markets • Experienced management teams• Strong balance sheet; exceptional flexibility• Fortune 500® company

27

Questions?

May 24, 2011

facebook.com/telephoneanddatasystems twitter.com/tdscorporate