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Great service begins with great products. Keeping one eye on the road and one on the horizon has long been our way of life at TDS Telecom. Technology is constantly evolving, and our teams are focused on harnessing the latest technical advancements to improve our networks and expand our product offerings.
     Voice, data and video services based on such technologies as Voice over Internet Protocol (VoIP), Passive Optical Networks (PON), and Wi-Fi are in planning stages. We continue to work and rework business cases for new offerings until they are proven profitable, reviewing them yet again to ensure a successful launch. Our strategy of being a fast follower is in sync with our customers, who demand high quality and yet present unique challenges due to their location in rural America. And while the rural markets are ever-changing and becoming more urban-like, our customers’ demands are what determine our new offerings, not the technologies themselves. We know our customers well and are committed to providing them the products they need and want.
     The 2003 launch of TDS Accelerator addressed a clear customer need—faster speeds online at an attractive price. Using compression technologies, this product enables speeds up to five times faster for dialup Internet users. Customer adoption of TDS Accelerator exceeded launch expectations. Product enhancements like these build customer confidence and loyalty.
     DSL continues to find success in our markets. Demand for high-speed Internet in both rural and metro markets continues to climb. In 2003, our ILEC operations offered DSL to 19 new markets. By year-end, our ILEC and CLEC operations offered DSL service in 54 and 15 markets, respectively, with lines increasing 159 percent to 23,600 for the ILEC and 70 percent to 20,100 for the CLEC.

Our focus in 2004.
TDS Telecom is focused on achieving three strategic objectives to ensure a successful 2004: producing double-digit revenue growth; sustaining a position of market leadership with outstanding customer service and satisfaction as our competitive differentiator; and meeting our financial commitments through growth and a steadfast focus on profitability.

  Specifically, we aim to:
Strengthen our existing ILEC markets by maintaining customer satisfaction and developing new revenue streams;
Continue to grow our CLEC operations, with a focus on profitable growth;
Create efficiencies and productivity improvements by optimizing cross-functional processes in our ILEC and CLEC operations;
Expand operating-cluster service areas where existing assets can best be leveraged; and
Champion public-policy positions that are in our customers’ best interest.

We are confident we have the right strategy and, more importantly, the ability to execute it. TDS Telecom has responded extremely well to its ever-changing environment. United by a common vision, sharing resources, talent and ideas, we will continue delivering on our strategy and provide strong operating results in 2004.1

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