Telephone and Data Systems to Buy K2 to Strengthen Broadband

Leading wireline service provider Telephone and Data Systems Inc.TDS has signed an agreement to acquire Mead, Colorado-based K2 Communications LLC., a provider of broadband, video and voice products to residential customers. However, financial terms of the agreement are yet to be disclosed. The deal is subject to regulatory approval at both federal and local levels.

The merger with K2 will add more than 1,200 service addresses to the adjacent Berthoud and Johnstown serving areas of TDS Broadband division. The company entered this area in 2013 with the purchase of Baja Broadband. K2 is Telephone and Data Systems' fourth acquisition in 2017. Earlier this year, the company acquired Crestview Communications, Sun Prairie Utilities and InterLinx Communications. All three acquisitions have strengthened the company's fiber-based broadband networks.

Telephone and Data Systems completed its IPTV market roll out. Its IPTV connections were 46,200, increasing 12.1% year-over-year in the second quarter of 2017. Additionally, the company is planning to expand its service availability by increasing its fiber footprint. For the current year, the company is focused on completing the planned fiber builds which will reach approximately 21% of its ILEC service addresses. This, when combined with its existing copper service, will take its IPTV enabled markets to cover approximately 25% of its total ILEC service addresses.

Apart from the wireline business, Telephone and Data Systems is experiencing strong smartphone demand at its wireless wing, - United States Cellular Corp. USM . Of the total smartphone sales, nearly 94% are 4G devices.

Notably, United States Cellular has submitted an application to the Federal Communications Commission (FCC) for a six-month special temporary authority (STA) to conduct trial runs in the 3.5 GHz band in some areas of Maine and North Carolina. Major U.S. telecom operators such as, Verizon Communications Inc. VZ , AT&T Inc. T and T-Mobile US Inc. TMUS are exploring ways of commercializing usage of 3.5 GHz unlicensed wireless spectrum.

Price Performance of Telephone and Data Systems

Telephone and Data Systems' shares have increased 2.06%, a shade below the industry's gain of 2.49% in the last three months. The company has a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

4 Surprising Tech Stocks to Keep an Eye On

Tech stocks have been a major force behind the market's record highs, but picking the best ones to buy can be tough. There's a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without . More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now - before the next wave of innovations really take off.

See Stocks Now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

AT&T Inc. (T): Free Stock Analysis Report

Verizon Communications Inc. (VZ): Free Stock Analysis Report

Telephone and Data Systems, Inc. (TDS): Free Stock Analysis Report

T-Mobile US, Inc. (TMUS): Free Stock Analysis Report

United States Cellular Corporation (USM): Free Stock Analysis Report

To read this article on click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics


Latest Markets Videos


    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at

    Learn More