Array Digital Infrastructure & TDS Telecom: A Year of Transformation and Future Growth
2025 marked a pivotal year for Array Digital Infrastructure, Inc. (NYSE:AD) and its parent company, TDS Telecom, characterized by strategic divestitures, significant financial gains, and a sharpened focus on future growth. The recently concluded Q4 2025 earnings call revealed a company repositioned for success in the evolving digital landscape.
Financial Highlights: A Strong Finish to 2025
Array Digital Infrastructure exceeded earnings expectations, reporting EPS of $0.48, a notable increase from the anticipated $0.32. This positive performance is largely attributed to the successful sale of wireless operations, bolstering the company’s balance sheet and providing financial flexibility for future investments.
A key transaction was the $1.018 billion spectrum sale to AT&T in January 2026, generating a pro rata share of $726 million in special dividends. TDS repaid $150 million in outstanding term loan debt, strengthening its financial position.
TDS Telecom: Expanding Fiber Footprint
TDS Telecom demonstrated continued progress in its fiber expansion strategy. In Q4 2025, the company added 58,000 new marketable fiber addresses, a 39% year-over-year increase. Full-year additions totaled 140,000 addresses, expanding the broadband footprint. While falling short of the initial 150,000 address goal, the company highlighted improved execution in the second half of the year, with 100,000 addresses added during that period.
Residential fiber net adds reached 15,000 in Q4, an 11% increase from 2024, bringing the total for the year to approximately 45,000. The company has identified an additional 300,000 fiber address opportunities, increasing its long-term goal from 1.8 million to 2.1 million addresses.
Pro Tip: Focusing on strategic edge-out markets – expanding fiber networks to areas adjacent to existing deployments – allows TDS Telecom to leverage existing infrastructure and minimize build costs.
Array Digital Infrastructure: Tower Optimization and Spectrum Monetization
Array Digital Infrastructure is focused on optimizing its tower operations and continuing to monetize its remaining spectrum holdings. The company is actively working to integrate the recent T-Mobile MLA (Master Lease Agreement) and has processed over 2,000 applications and completed structural analyses on over 95% of them.
Despite a dispute with DISH Wireless regarding a master lease agreement, Array remains confident in its position and is prepared to protect its rights. DISH has failed to make contractually required payments since early December.
Did you know? Approximately one-third of Array’s towers have no competing site within a two-mile radius, making them particularly valuable for carriers expanding 5G and other advanced technologies.
Looking Ahead: 2026 Priorities
The company outlined five key objectives for 2026:
- Strengthening the corporate and capital structure.
- Growing TDS Telecom’s fiber business and enhancing customer experience.
- Supporting Array Digital Infrastructure’s success as a tower company.
- Monetizing Array Digital Infrastructure’s remaining spectrum holdings.
- Strengthening company culture while delivering strong financial results.
TDS Telecom aims to deliver between 200,000 and 250,000 new marketable fiber addresses in 2026, focusing on A-CAM markets and targeted edge-out communities.
FAQ
Q: What is A-CAM?
A: A-CAM refers to the Alternative Connect America Fund, a federal program providing funding to expand broadband access in rural areas.
Q: What is the status of the DISH Wireless dispute?
A: Array Digital Infrastructure believes DISH’s assertions are without merit and is taking steps to protect its rights under the master lease agreement.
Q: What is the long-term goal for fiber penetration at TDS Telecom?
A: The company is focused on increasing sales in both new and established fiber markets and improving penetration rates, particularly in multi-dwelling units.
Q: What is the outlook for Array’s spectrum monetization?
A: Array believes its C-band spectrum is valuable and is actively pursuing opportunities to monetize it, while maintaining manageable carrying costs.
Q: What is the company’s capital allocation strategy?
A: TDS has announced share repurchases as part of its capital allocation plan, utilizing proceeds from recent transactions.
Reader Question: What impact will increased competition from other fiber providers have on TDS Telecom’s growth?
Answer: TDS Telecom is focused on expanding into markets with favorable competitive landscapes and leveraging its internal construction capabilities to accelerate deployment. The company is also prioritizing customer experience and bundling services to differentiate itself from competitors.
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