LeRoy T. Carlson, Jr.

1

• LeRoy T. Carlson, Jr.
• President and Chief Executive Officer
• CSFB Media Telecom Conference
• December 11, 2003

2
Safe Harbor
All information set forth in this presentation,
except historical and factual information,
represents forward-looking statements. This
includes all statements about the companys
plans, beliefs, estimates and expectations. These
statements are based on current estimates and
projections, 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 changes in
circumstances or events that may affect the
ability of USM to acquire or, if it acquires, to
start up the operations of the properties
acquired in a transaction with AWE the ability
of USM to successfully manage and grow the
operations of the Chicago MTA changes in the
overall economy changes in competition in the
markets in which TDS and USM operate advances in
telecommunications technology changes brought
about by the implementation of local number
portability changes in the telecommunications
regulatory environment changes in the value of
investments, including variable prepaid forward
contracts changes in the capital markets that
could adversely impact the availability, cost and
terms of financing an adverse change in the
ratings afforded TDS and USM debt securities by
nationally accredited ratings organizations
pending and future litigation acquisitions/divest
itures of properties and/or licenses changes in
customer growth rates, average service revenue
per unit, churn rates, roaming rates and the mix
of products and services offered in TDS and USM
markets. Investors are encouraged to consider
these and other risks and uncertainties that are
discussed in documents filed by TDS with the SEC.
3
TDS

• Wireless U.S. Cellular (82 owned)
• Wireline TDS Telecom (ILEC and CLEC)
• Serves 5.4 million plus customers
• Strong balance sheet
• Investment grade

4
(No Transcript)
5
U.S. CellularSept. 30, 2003

• Eighth largest wireless service provider
• Total licensed pops - 45.8 million
• Serves 4.3 million customers - 85 digital
• Focused on exceptional customer service
• 96 of customers postpay
• Extensive network ... 4,100 cell sites
• Broad distribution 2,200 distribution points
• Admirably low churn rate
• Well positioned given recently acquired
  Chicago market and AWE exchange

6
(No Transcript)
7
U.S. Cellular Strategy

• Positioned as a regional carrier
• Differentiate with exceptional customer service
• Network quality
• Broad distribution
• Dedicated people
• Deploy CDMA 1XRTT technology in all markets
• Strategically strengthen regional footprint

8
Third Quarter Financial Highlights U.S. Cellular
(millions) 3Q 03 3Q 02 Service
revenues 628.4 561.2 12
Operating income 97.0 62.7
55 Net adds 66,000 76,000 Churn -
postpay 1.6 2 Retail
ARPU 39.57 38.95 MOU
435 327 Cell sites 4,082 3,750
9
Recent Accomplishments

• 444 M senior notes offering
• Agree to Sell South Texas to AWE
• Conversion of billing system in Chicago
• Integration of data billing platform
• Rollout of data product
• CDMA 1X overlays in Oklahoma Missouri
• Exchange of properties with AWE

10
Strengthening the Footprint

• Sale of certain South Texas markets to ATT
  Wireless - November 2003
• Exchange of wireless properties with ATT
  Wireless August 2003
• Acquisition of Chicago market - August 2002

11
South Texas Sale to AWE

• Sell 25 MHz licenses in south Texas representing
  1.3 M pops, 150 cell sites and 74,000 customers
• Example of strategy to exit those markets not
  strategic to companys long-term success
• High prepaid mix and heavy roaming market
• Receive 95 M in cash to be used to pay down debt
  and other corporate working purposes
• Expected to close in Q1, 2004

12
(No Transcript)
13
USM AWE Property Exchange

• Announced March 10, 2003
• First tranche closed August 1, 2003
• Excellent fit with USMs strategy
• To strengthen its regional footprint through
  
• acquisitions or trades
• To build on strengths and exit other markets
• Opportunity to substantially improve competitive
  position in Midwest and Northeast markets

14
(No Transcript)
15
Chicago Update

• Rapid increases in awareness
• Market share up year-over-year
• Enhancing network
• Heavy focus on employee training
• Increasing distribution points

16

• easyedgeSM Phone Service - BREWTM technology
  ring tones, games, entertainment picture
  transfer breaking news
• easyedgeSM Wireless Modem Service - Internet
  access for laptop or PDA email, calendars,
  Internet and corporate resources

17
CDMA Progress

• Ahead of schedule and below planned cost
• 3 years to complete (2002 - 2004)
• Total cost to build CDMA... 385 - 410 M
• 265M spent in 2002-2003
• Iowa, Wisconsin, Illinois, New England and N.
  Missouri are converted to CDMA 1XRTT ( 80 of
  all pops covered by CDMA)
• Remaining Midwest markets and Oklahoma to be
  completed in 2003
• Redeploying TDMA equipment

18
WNP USM Set to be a Winner

• Prior to November 24, 2003
• Spent 50M to date
• Aggressive retention of existing customers
• Aggressive acquisition in new markets
• Strengths
• Commitment to exceptional customer service
• Outstanding network
• Good coverage
• Signal quality
• Competitive promotional campaigns
• Long-term contracts with termination fees

19
USM 2003 Outlook

• Service revenues - 2.35 - 2.4 B
• Net additions - 450,000 to 475,000
• Depr/Amortization - 435 - 440 M
• Operating Income - 180 - 200 M
• CAPX - 650 to 670 M
• Improved retail ARPU
• All in churn - 2
• Includes 26 M in operating expenses related to
  loss on assets for sale related to completed AWE
  exchange

20
(No Transcript)
21
TDS Telecom - ILEC

• 7th largest independent U.S. telco
• Rural company status
• 120 ILEC service locations
• 721,600 access line equivalents
• 115,600 ISP accounts
• 218,600 LD (resale) customers
• Vertical services

22
TDS Metrocom - CLEC

• Facilities-based startup in S. Wisconsin, N.
  Illinois and S. Michigan 100 on-switch
• 260,200 access line equivalents ... launched in
  January 1998
• Targeted selling
• Small and medium businesses 56
• Communication-intensive residential
• 44
• Focus on one RBOC for provisioning

23
(No Transcript)
24
US Link - CLEC

• Third largest CLEC in MN
• 86,300 local and local/LD lines
• 12,100 Internet accounts
• Targeted selling - small and medium-sized
  businesses
• Local service provided through combination of
  owned and leased facilities 28.5 on-switch
• Migrating to facilities-based model
• EBITDA positive minimal CAPX

25
(No Transcript)
26
Strategic Initiatives

• Market Development
• Grow through a combination of
• acquisition, build-out variations and new
• technologies in CLUSTERS
• Market Fortification
• Proactively address wireless substitution
• Increase the market share, penetration
• and profitability of our HSD product line
• Develop new products and services
• Grow CLEC within its existing markets

27
Strategic Initiatives (cont.)

• Public Policy Advocacy
• Champion TDSs position to ensure
• favorable regulatory treatment
• Process Productivity Improvement
• Create efficiencies by optimizing cross-
• functional processes

28
New Initiatives

• Bundling
• DISH Network
• TDS Accelerator better Internet
• download performance

29
Third Quarter Financial HighlightsTDS Telecom

• (millions)
• ILEC 3Q03 3Q02
• Revenues 164.7 159.0 4
• Operating Income 46.8 45.8
  2
• CLEC
• Revenues 53.5 46.0 16
• Operating (loss) (8.3)
  (14.3) 42
• Access Line Equivalents (thousands)
• ILEC 721.6 714.4 1
• CLEC 346.5 273.1 27

30
2003 Outlook - TDS Telecom

• ILEC
• Operating revenues - 635 to 645 M
• Depr/amortization - 135 M
• Operating income - 170 to 180 M
• CAPX - approx. 130 M
• CLEC
• Operating revenues - 210 to 220 M
• Depr/Amortization - 35
• Operating income (loss) - (35) to (25) M
• CAPX - approx. 30 M

31
TDS Financial Objectives

• Grow revenues ? market growth (10 -
  15 annually)
• Return on capital ? WACC
• Valuation/shareholder returns ? comparable
  companies
• Maintain strong investment-grade rating

32
Debt Ratings...Investment Grade!
TDS USM Moodys Investment
Service Baa1 Baa1 Standard Poors
A- A- Fitch A- A- TDS debt/equity at
9/30/03 36.34 USM debt/equity at
9/30/03 30.63 Our debt ratings are several
levels above non-investment grade
33
Monetization

• Generated 1.6 B through monetizations
• Deutsche Telekom (DTE)
• Vodafone (VOD)
• VeriSign (VRSN)

34
Stock Repurchase

• 1 million share authorization previously in place
• Announced additional 2 million share
  authorization in February
• YTD Sept. 30 repurchased 1,378,900 shares
• avg price of 40.95 total of 56.5 M

35
TDS Excellent ProspectsU.S. Cellular TDS
Telecom are strong companies

• Full-service provider with strong, established
  wireless and wireline operations
• Strong business units
• Well positioned in existing markets
• Proven business strategies focused on customer
  satisfaction and network quality
• Strong, experienced management teams
• Dedicated workforce of 11,000 people
• Financially strong

36
Reconciliation of Additional Disclosures
TDS Telecom
The Adjusted EBITDA measurements provided above
is the sum of operating income (loss),
depreciation, amortization of deferred charges
and customer lists and loss on assets held for
sale. Adjusted EBITDA is not presented as an
alternative measure of operating results or cash
flows from operations as determined in accordance
with accounting principles accepted in the United
States of America. Management uses Adjusted
EBITDA to evaluate the operating performance of
its business, and it is a measure of performance
used by some investors, security analysts and
others to make informed investment decisions.
Adjusted EBITDA is used as an analytical
indicator of income generated to service debt and
fund capital expenditures.In addition, multiples
of current or projected Adjusted EBITDA are used
to estimate current or prospective enterprise
value. Adjusted EBITDA does not give effect to
cash used for debt service requirements, and thus
does not reflect funds available for investment
or other discretionary uses. Adjusted EBITDA as
presented herein may not be comparable to
similarly titled measures reported by other
companies.
37

• LeRoy T. Carlson, Jr.
• President and Chief Executive Officer
• CSFB Media Telecom Conference
• December 11, 2003