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Telephone And Data Systems' CEO Presents At Morgan Stanley Technology, Media & Telecom Conference (Transcript)

A second major focus Simon referred to it as your LTE deployment. So we began fielding the LTE network in 2011 and our Wave 1 launch as far as the network has actually been ready in December and is up and running and will be introducing our first LTE capable devices or smartphones and a tablet in the March April timeframe. So we'll be launching services that time.

2012 will also be a big year as far as the Wave II deployment. We'll be following the network and launching additional devices over the course of this year such that by the end of the year we expect to have about 50 to 55% of our subscribers covered with LTE service and that initiative will obviously continue on into 2013.

Beyond LTE, the company has a couple of other major initiatives underway that we refer to as our other enablement initiatives and the biggest there is as we disclosed in the past a new billing and operational support system that we're investing this year. So that will be another area of focus for us.

Unidentified Analyst

So Dave if we can come back to IPTV, your first and sort of focused area. Can you talk about the architecture of the plant that you and sort of Steve you are building to and how do you balance the economics. There is obviously revenues but there is content tasks when you get churn reduction from what you're sort of seeing what you're modeling so far. How is that all looking?

Dave Wittwer

Sure. So, we started this about three years ago on a couple of markets in Tennessee over a fiber to the home network, a complete overbuild. And what we experienced when we looked at the original plans we've been able to achieve about 30% market share. In about two and a half year period. The majority of that market share came from the cable competitor rather than coming from the satellite TV provider which is good for us. So we're very encouraged by that kind of market share improvement. We did that without any significant promotional dollars in terms of significant front end loads. We found that the HD penetration was higher than we had originally contemplated and the DVR penetration was higher than we had originally contemplated. We've been in this business before.

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