Issuer:

Telephone and Data Systems, Inc.

Security:

7% Senior Notes due 2060

Principal Amount:

$300,000,000

Over-Allotment Option:

None

Denominations:

$25 and integral multiples in excess thereof

Trade Date:

March 21, 2011

Settlement Date:

March 28, 2011 (T+5)

Maturity Date:

March 15, 2060

Coupon:

7.00%

Interest Payment Dates:

March 15, June 15, September 15 and December 15, commencing June 15, 2011

Price to Public:

$25 per note

Optional Redemption:

The Issuer may redeem the Notes, in whole or in part, at any time on and after March 15, 2016 at a redemption price equal to 100% of the principal amount redeemed plus accrued and unpaid interest to the redemption date.

Use of Proceeds:

The net proceeds to be received by the Issuer from the offering, after deducting underwriting discounts and commissions and other offering expenses payable by the Issuer, are estimated to be approximately $290.2 million. The Issuer expects to use approximately $282.5 million of the net proceeds from the offering to redeem all of its 7.6% Series A Notes due 2041, of which $282.5 million in aggregate principal amount is outstanding. The remaining net proceeds will be used for general corporate purposes.

Listing:

The Issuer intends to list the Notes on the New York Stock Exchange and expects trading in the Notes on the New York Stock Exchange to begin within 30 days after the Settlement Date.

CUSIP/ISIN:

879433 837 / US8794338371

Anticipated Ratings:

Baa2 by Moody’s Investors Service, Inc.

BBB- by Standard & Poor’s Rating Services

BBB by Fitch Ratings

Joint Book-Running Managers:

Citigroup Global Markets Inc.

Merrill Lynch, Pierce, Fenner & Smith Incorporated

UBS Securities LLC

Wells Fargo Securities, LLC

Co-Managers:

RBC Capital Markets, LLC

BNY Mellon Capital Markets, LLC

Comerica Securities, Inc.

SunTrust Robinson Humphrey, Inc.

TD Securities (USA) LLC

U.S. Bancorp Investments, Inc.