Array Digital Infrastructure, Inc. owns and operates shared wireless communications infrastructure in the United States. It deploys 5G and other wireless technologies through its 4,400 cell towers and leases tower space to tenants, along with ancillary services. Its customers include organizations, wireless carriers, government agencies, municipalities, wireless internet service providers, and broadband providers. Formerly known as United States Cellular Corporation, it changed its name to Array Digital Infrastructure, Inc. in August 2025. Incorporated in 1983, it is headquartered in Chicago, Illinois, and is a subsidiary of Telephone and Data Systems, Inc.
Gabelli Value 25 Fund Flags TDS Bid for Array Digital
Gabelli Value 25 Fund disclosed in its second-quarter 2026 investor letter that Telephone and Data Systems submitted a non-binding proposal in May 2026 to the board of its 82%-owned subsidiary, Array Digital Infrastructure, to acquire all outstanding common shares of Array not currently owned by TDS, at 0.86 TDS shares per Array share. Array is the fifth-largest wireless tower operator in the United States, with over 4,450 sites. TDS is a telecommunications company primarily operating rural wireline and wireless tower operations, and the stock was a 1.3% position in the fund. The fund's Class I shares gained 7.16% in the second quarter of 2026, compared with a 15.20% advance for the S&P 500, while its one-year return reached 26.11% versus 22.32% for the index. Gabelli expects 2026 S&P 500 earnings growth of 25% and continued AI investment to remain important market drivers, while flagging risks from geopolitical tensions, higher energy prices, inflation, interest-rate uncertainty, and elevated market concentration.
AD · Capital · Positive TDS submitted a non-binding proposal to acquire all outstanding Array shares it does not already own at 0.86 TDS shares per Array share, a takeover bid for the company.
TDS · Capital · Neutral TDS proposed to buy out the remaining Array Digital shares via a share-exchange offer, an M&A move whose net effect on TDS is unclear.
TDS Withdraws All-Stock Bid for Array Digital, Reopens Buyback Door
Telephone and Data Systems Inc. withdrew its all-stock acquisition proposal for the remaining minority shares of Array Digital Infrastructure on September 1, abandoning a deal that would have given outside Array shareholders 0.86 shares of TDS for each share held. TDS retains its controlling 82% equity stake in Array, leaving public shareholders with an 18% minority position, after a special committee formed by Array's board failed to reach consensus with TDS on exchange ratios and relative share valuation. Management said current market conditions favor immediate share repurchases over share-issuance transactions, allowing TDS to draw on $523.9 million in remaining board authorization as of June 30, which includes a $500 million expansion approved in November 2025. TDS and Array also plan to accelerate monetization of Array's residual wireless spectrum holdings, converting non-earning assets into non-dilutive capital to fund TDS Telecom's fiber footprint expansion. Hedge fund holders in TDS rose to 50 from 47 in the prior quarter, while short interest sits at an exceptionally low 0.06% of the float; management has not set fixed timelines or price targets for the spectrum sales or the buyback cadence.
Cloud & Digital Infrastructure › Telecom Towers, Fiber & Colocation Capital
TDS · Capital · Positive TDS withdrew the dilutive all-stock Array deal and will instead use its $523.9M buyback authorization for immediate repurchases.
AD · Capital · Neutral TDS withdrew its all-stock bid for Array's minority shares, leaving Array's 18% public holders without the proposed exchange; Array also plans to accelerate spectrum monetization.
Telephone and Data Systems, Inc. (TDS) announced it is no longer pursuing the acquisition of the public shares of Array Digital Infrastructure, Inc. that it does not already own, withdrawing its proposal to exchange each Array share for 0.86 of a TDS share. TDS will retain its approximately 82% ownership in Array, and both companies intend to increase efforts to monetize Array's remaining wireless spectrum assets. With the withdrawal, TDS expects to recommence repurchases under its share repurchase programs, including the additional $500 million authorization announced in November 2025, with approximately $523.9 million remaining available as of June 30, 2026. TDS President and CEO Walter Carlson cited the inability to agree on the form of consideration and value as the reason for the decision.
TDS · Capital · Positive TDS withdrew the Array acquisition proposal and will recommence share repurchases under its programs, including the $500M authorization.
AD · Capital · Neutral TDS withdrew its proposal to acquire Array's remaining public shares, leaving Array ~82% owned by TDS and refocusing on monetizing its spectrum assets.
TDS Raises Fiber Guidance as Legacy Revenue Declines
Telephone and Data Systems raised its full-year fiber address guidance to a range of 250,000 to 300,000 after adding roughly 66,000 marketable fiber service addresses in the second quarter, pushing first half 2026 delivery to about 106,000, the strongest opening half in company history. Total telecom operating revenue fell 6% in the quarter, or 4% excluding divestitures, and management trimmed its full-year telecom revenue guidance to a range of $1 billion to $1.025 billion. Residential fiber net adds reached 15,100 for the quarter, up 47% year-over-year, and fiber revenue climbed 13%, or $11 million. Array Digital Infrastructure, the tower subsidiary in which TDS has an unresolved buyout offer for minority shares, saw cash site rental revenue up 65% year-over-year on a normalized basis and closed a $168 million spectrum sale to T-Mobile in May and a $1 billion transaction with Verizon in June.
Cogent Communications reported second-quarter revenue of $235.6 million, down 4.3% year over year and 1.7% below analyst expectations, though it beat earnings per share estimates. The stock has fallen 15.2% since the report and now trades at $10.91. Among the five telecommunication services stocks tracked, Array posted the strongest results with revenue up 89.5% to $54.07 million, while Iridium was the weakest with a significant EPS miss despite revenue of $225.2 million. Lumen Technologies reported revenue of $2.81 billion, down 9.3% year over year but beating estimates by 2.4%, and Viasat reported revenue of $1.16 billion, down 1.2% and missing estimates by 4.4%. As a group, revenues were in line with consensus, but average share prices are down 3.8% since the latest earnings results.
Array Digital Infrastructure Raises Full-Year Adjusted EBITDA Guidance to $60-$75 Million
Array Digital Infrastructure Inc reported a 65% year-over-year increase in cash site rental revenue, excluding Dish impact, and raised its full-year adjusted EBITDA guidance to $60 to $75 million. The company closed spectrum monetization transactions with T-Mobile and Verizon, including a $1 billion deal with Verizon, strengthening its balance sheet. The tenancy ratio improved sequentially to 0.96, excluding Dish, reflecting steady growth in co-locations and tower utilization. Array continues to face costs from winding down legacy wireless operations and uncertainty from T-Mobile interim site revenue declines, with 1,000 to 1,700 tenantless towers projected post-integration. Management noted strong demand and a robust pipeline of applications, with no near-term buildout requirements for its C-band spectrum.
Array Digital Infrastructure completes $1.0 billion spectrum license sale to Verizon
Array Digital Infrastructure has completed the sale of a portion of its spectrum license to Verizon for $1.0 billion. This transaction follows a separate spectrum sale to T-Mobile for $168 million, covering 700MHz and 600MHz bands in May. The deals are part of a broader strategy announced in May 2024 to monetize remaining spectrum assets after the sale of its T-Mobile wireless operations, which closed in August 2025. The Board of Directors declared a special cash dividend of $11 per share, payable June 25, 2026, to shareholders of record as of June 11, 2026. CEO Anthony Carlson called the transactions a significant milestone and reaffirmed the commitment to returning value to shareholders. Separately, a special committee is evaluating a non-binding acquisition proposal from Telephone and Data Systems, with no decision yet made.
Telecommunication services Q1 earnings miss estimates, stocks fall 18.5% on average
The six telecommunication services stocks tracked reported a softer first quarter, with aggregate revenues missing analysts' consensus estimates by 1.2%. Iridium posted revenues of $219.1 million, up 1.9% year on year but falling short of expectations by 0.9%, while Cogent Communications reported $239.2 million, down 3.2% and missing by 0.9%. Array saw the fastest revenue growth at 92.8% to $52.01 million but missed estimates by 4.3%, and Lumen Technologies beat revenue expectations by 2.3% with $2.90 billion despite an 8.9% decline. Viasat's revenues rose 2.1% to $1.17 billion but lagged estimates by 3%. On average, share prices of these companies have fallen 18.5% since their latest earnings results.
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