TDS Telecom bets on broadband, video drive up Q4 2011 revenue

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Buoyed by strong gains in consumer triple play and managed business services, TDS Telecom's operating revenues increased 4 percent to $206.8 million in the fourth quarter of 2011.

TDS Telecom's parent company Telephone and Data Systems (NYSE: TDS) reported $1.3 billion in operating revenues for Q4 2011, up from $1.2 billion in Q4 2010.

For the year 2011, TDS reported $5.1 billion in operating revenues, up from $4.9 billion in 2010, while net income was $200.5 million, or $1.83 in diluted earnings per share. 

"TDS increased revenues and improved profitability in 2011, despite very competitive industry environments for both U.S. Cellular and TDS Telecom," said LeRoy T. Carlson, Jr., TDS president and CEO. "Both companies are making significant investments in their networks and operational infrastructure to enhance customer experiences and improve operational efficiency."

Here's a quick breakdown of the ILEC's key metrics:

  • Landline Losses: During the quarter, TDS as expected lost 8,100 access lines, ending the quarter and year with 754,400 total lines.
  • Business Services: In the business segment, the growth engine is centered around its managedIP offerings, which it delivers via both its ILEC and CLEC divisions. ManagedIP stations during the quarter grew to 43,100 from 27,400.
  • Broadband and video: Although broadband service continues to be a hot seller, TDS Telecom only added 600 new customers during the quarter.

Looking into 2012, the key areas of growth will be around expanding broadband speeds and availability, business managed services and IPTV.

Leveraging emerging technologies including Fiber to the Home (FTTH) in select markets and hybrid copper/fiber VDSL2 technology, the service provider plans to increase broadband speeds in its existing markets and extend IPTV service to an additional 19 markets. What's more, the service provider said it's on track to complete a number of broadband stimulus projects to extend services in areas that were traditionally hard to serve.

It will be no less aggressive on the business side with plans to expand the hosted managed services footprint and service portfolio.

From a revenue standpoint, the service provider forecast $810-$840 million for its ILEC and CLEC operations.  

For more:
- see the earnings release

Special report: Wireline in the fourth quarter 2011

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