TELEPHONE AND DATA SYSTEMS, INC. (NYSE:TDE) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement.

See disclosure under Item 8.01 Other Events, which is
incorporated herein to the extent applicable.

Item 2.03. Creation of a Direct Financial Obligation or an
Obligation under an Off-Balance Sheet Arrangement of a
Registrant.

See disclosure under Item 8.01 Other Events, which is
incorporated herein to the extent applicable.

Item 8.01. Other Events.

As previously disclosed by Telephone Data Systems, Inc. (TDS),
the Federal Communications Commission (FCC) announced United
States Cellular Corporation (U.S. Cellular), a subsidiary of TDS,
as a qualified bidder in the FCCs forward auction of 600 MHz
spectrum licenses, referred to as Auction 1002. The Assignment
Phase of the auction was completed on March 30, 2017. On April
13, 2017, the FCC announced that U.S. Cellular was the winning
bidder for 188 licenses for an aggregate purchase price of $329
million. At the inception of the auction process in June 2016,
U.S. Cellular made an upfront payment to the FCC of $143 million
which, based on the final outcome of the auction, is sufficient
to cover its down payment obligation that is due by April 27,
2017. U.S. Cellular is required to pay the remainder of the
purchase price of $186 million to the FCC by May 11, 2017, and
expects to receive the licenses at the conclusion of the FCCs
standard post-auction licensing process. U.S. Cellular currently
expects to make such payment using cash on hand and/or borrowings
under its revolving credit agreement.

TELEPHONE AND DATA SYSTEMS, INC. (NYSE:TDE) Recent Trading Information

TELEPHONE AND DATA SYSTEMS, INC. (NYSE:TDE) closed its last trading session down -0.13 at 25.55 with 3,923 shares trading hands.