(TDS) Telephone and Data Systems Buys Union Telephone

TDS Telecom, a subsidiary of Telephone and Data Systems (TDS), has reportedly completed the acquisition of New Hampshire-based privately held regional telecom operator Union Telephone Company Inc. TDS Telecom entered into a definitive agreement to acquire Union Telephone in August 2009. The terms of the transaction, however, were not disclosed by the companies.

TDS Telecom provides fixed-line services to business and residential customers in the US. The company operates both as incumbent local exchange carrier and competitive local exchange carrier serving more than 1.1 million access line equivalents. TDS Telecom is primarily focused on the rural and suburban markets, where competition is less intense, compared to metropolitan and urban areas.

To expand customer coverage and improve service quality, TDS Telecom has been acquiring smaller privately-owned wireline operators. The company purchased Wisconsin-based Mosinee Telephone Company in May 2008, which provided nearly 6,000 residential and business line equivalents covering areas adjacent to the company’s existing territories in Wisconsin. TDS Telecom also acquired Wisconsin-based State Long Distance Company in December 2008, which provided approximately 9,600 access line equivalents and 2,200 DSL broadband lines.

Union Telephone provides telecommunication and digital TV services across seven towns/rural communities in New Hampshire. The acquisition extends TDS Telecom’s coverage in New Hampshire and provides a high quality network with approximately 8,500 access line equivalents, encompassing an area of 150 square miles in the rural eastern part of the state.

With the acquisition of Union Telephone, TDS Telecom now operates five phone companies in New Hampshire. The acquisition enables the company to expand its communication services in the state by offering faster Internet service, new bundled services and enhanced online security. TDS Telecom will also add its “Triple-Play” service offering that bundles voice, high-speed Internet and Dish Network’s (DISH) digital TV services.

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