Ken Dixon to lead TDS Telecom as new CEO

CHICAGO - Telephone and Data Systems, Inc. (NYSE:TDS), a company that has maintained dividend payments for an impressive 52 consecutive years according to InvestingPro data, has announced the appointment of Ken Dixon as President and Chief Executive Officer of its wholly owned subsidiary, TDS Telecommunications LLC (TDS Telecom), effective June 9. Dixon will succeed Jim Butman, who is set to retire on July 1 after dedicating over four decades to the company, including a seven-year tenure as the head of TDS Telecom.

Dixon, with 33 years in the telecommunications sector, arrives at TDS Telecom after a significant stint at Verizon Communications, Inc., where he was most recently President of Consumer Markets. His tenure at Verizon was marked by his leadership of the company’s consumer business and the execution of its fiber network transformation strategy. Prior to his new role, Dixon served as CEO of Tillman FiberCo, LLC, a firm specializing in the design, construction, and ownership of fiber optic broadband infrastructure.

Walter Carlson, President and CEO of TDS, expressed confidence in Dixon’s ability to lead the company’s strategic growth plans, citing his extensive background in sales, marketing, operations, and customer engagement, as well as his expertise in fiber broadband expansion.

In a statement, Dixon expressed his honor at the opportunity to lead TDS Telecom and his eagerness to contribute to the company’s mission, which includes addressing the digital divide by expanding fiber technology to rural areas.

Carlson also paid tribute to Butman’s significant contributions to the company, noting that under his leadership, TDS Telecom initiated its long-term fiber strategy, surpassing $1 billion in revenues and achieving a subscriber base of over 500,000 broadband customers. According to InvestingPro data, the company has demonstrated strong market performance with a 51.8% total return over the past year, despite current profitability challenges. The company maintains a healthy liquidity position with a current ratio of 1.74, indicating strong ability to meet short-term obligations.

TDS Telecom is part of a larger family of businesses under Telephone and Data Systems, Inc., which provides wireless, broadband, video, and voice services to approximately 5.5 million connections nationwide, including through UScellular. TDS, founded in 1969 and based in Chicago, employed roughly 7,800 associates as of March 31, 2025. With a market capitalization of approximately $4 billion and an EBITDA of $1.07 billion in the last twelve months, TDS represents a significant player in the telecommunications sector. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US equities with expert analysis and actionable intelligence.

This leadership transition comes as TDS Telecom aims to continue expanding its reach and services in the telecommunications industry. The information regarding the appointment is based on a press release statement issued by Telephone and Data Systems, Inc.

In other recent news, Telephone and Data Systems Inc (TDS) reported disappointing first-quarter 2025 earnings, revealing a larger-than-expected loss and a revenue shortfall. The company reported an earnings per share (EPS) of -0.09, missing the forecasted -0.01, and revenue of $1.15 billion, which fell short of the $1.17 billion forecast. Despite these setbacks, U.S. Cellular, a subsidiary of TDS, showed positive cash flow developments, generating $79 million in free cash flow, an increase of $18 million from the previous year. TDS is actively expanding its fiber network, aiming to add 150,000 fiber addresses in 2025, and is focusing on cost savings. The company is also preparing for a significant transaction with T-Mobile, expected to close mid-2025, which could enhance its competitive positioning. Analyst discussions during the earnings call highlighted the company’s strategic focus on enhancing shareholder value and preparing for the T-Mobile transaction. Additionally, TDS Telecom reported challenges in maintaining revenue growth amid declining operating revenues, but is making progress on its fiber expansion efforts.

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