Greetings, and welcome to the TDS and U.S. Cellular second quarter operating results conference call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ms. Jane McCahon, Senior Vice President, Corporate Relations of TDS. Thank you, Ms. McCahon. You may begin. Jane W. McCahon: Thank you, Tim. Good morning, and thank you for joining us. I wanted to make you all aware of the presentation we have prepared to accompany our comments this morning, which you will find on the Investor Relations sections of the TDS and U.S. Cellular websites. With me today and offering prepared comments are: from U.S. Cellular, Ken Meyers, President and Chief Executive Officer; Steve Campbell, Executive Vice President and Chief Financial Officer; and from TDS Telecom, Vicki Villacrez, Vice President, Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S. Cellular Investor Relations websites. Please see the websites for slides referred to on this call, including non-GAAP reconciliations. As a reminder, we provide guidance for both operating cash flow and adjusted EBITDA. For TDS Telecom, these are basically the same number. For U.S. Cellular, however, the adjusted EBITDA measure includes imputed interest income from EIP and the significant contributions from our partnership, which we want to continue to highlight for investors. The information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the safe harbor paragraph in our press releases and the extended version included in our SEC filings. As mentioned on our previous calls, U.S. Cellular filed a short form application for the upcoming forward auction for 600 megahertz spectrum, known as Auction 1002. As the anti-collusion rules are now in effect, we are prohibited from speaking about it further. Therefore, we will not entertain any other questions relating to spectrum or the auction. Shortly after we released our earnings and before the call, TDS and U.S. Cellular filed their SEC Forms 8-K, including today's press releases and Form 10-Q. Of note, in our 10-Qs, we are now breaking out postpaid churn between handset and connected devices. TDS will be presenting at the Drexel Hamilton Conference in New York on September 7, and we are hosting analyst meetings at CTIA in Las Vegas on September 8. And please keep in mind, that we do have an open door policy. So if you're ever in the Chicago area and would like to meet with members of management, the IR team will try to accommodate you, calendars permitting. Now I'd like to turn the call over to Ken Meyers.

Good morning. I'll start with Slide 4. We're now halfway through the year and continuing to move forward. Our results reflect steady progress across multiple fronts. Smartphones and connected devices are growing. Customer engagement continues to improve. The current network is performing well, and our first voice-over-LTE build-out is on track. Now let's go a little deeper, starting with customer growth, our top priority. We are moving forward, but still not at the pace I'd like to see. That's probably not surprising given the lower churn rates we've seen across the industry and overall consumer weakness. We are having continued success with connected devices, primarily tablets. Both gross and net additions are increasing and postpaid connections per account, a share-of-wallet metric, was up 6%. Net postpaid additions were more than twice that of last year at 36,000, once again driven by tablets and smartphones, offset by the loss of feature phones. We continue to see good progress from our increased focus on small and medium-sized businesses and regional government entities. Handset gross adds for this segment continue to grow, and our M2M sales are gaining momentum. As an organization, we are constantly measuring our customer satisfaction and adjusting our business practices and offerings to better meet their needs. Our surveys show this strategy is working, as evidenced by our improving engagement scores and churn. I'm particularly encouraged by our continued improvement in postpaid churn, 1.2% in the quarter, a record low for the company. As Jane mentioned in response to investor and analyst requests, we have also begun to break out postpaid handset and connected device churn, which at 1.10% and 1.84% also showed significant improvement from a year ago. Our customers' overall satisfaction is largely influenced by our network strategy. Last year, we completed our deployment of 4G LTE. It now reaches 99% of our postpaid connections and today is carrying almost 90% of all of our data traffic. Additionally, 3 4G roaming agreements are in place. So our customers are now receiving better data experiences as they travel. Finally, as I said, our network team is on track to launch our first commercial deployment of voice-over-LTE early next year. I think it's important to note the inflection point we have reached with our roaming agreements. This year is one of significant transition as we move from 3G CDMA agreements to 4G LTE agreements that significantly lower the price per gigabit, both from a revenue and expense point of view. Also, our remarkably talented engineering group has led the way in implementing technology that allows for data roaming on one network with a fallback to another carrier for voice services. This will open up the door for us to provide data roaming to more than just CDMA-based carriers and allow us to better manage the quality of our customers' roaming experiences. Let's spend a few moments on revenue trends. Overall, total revenue growth is just about where we thought it would be. Service revenues are down due to multiple forces, some of which are accounting, our income statement geography, some of which are more real. First and largest, we have the impact of EIP adoptions, which have the effect of moving service revenue to the equipment line. Also, we have the still early but developing trend of customers keeping equipment longer or bringing equipment with them. And finally, the ongoing soft pricing environment in the industry. These 3 factors combined to more than offset the positive impacts on service revenue of smartphone adoption, which was now 77% of the postpaid handset base and our growth in prepaid and connected devices. With an EIP take rate of 69% in the quarter, our EIP penetration continues to grow rapidly and now is at 37% as compared to 20% a year ago. Of note, I would also highlight that we have steadily improved the number of connections per account, resulting in a year-over-year increase in average billings per account. Steve will provide more detail on these trends in a moment. But first, let me lean into or perhaps share a new or different way to think about upgrade rates. Historically, a lot of attention has been paid to upgrade rates. Because in a subsidized handset business model, every time a customer wanted to move or upgrade to a new handset, the carrier would lose hundreds of dollars on the transaction and the customer signed a new contract. This upgrade rate was a metric that explained part of the equipment losses each quarter. Lower the upgrade rate, improve the P&L. Conversely, increase the upgrade rate and negatively impact the P&L. We saw this a few years back as we transitioned off of rewards points as a way to build customer stickiness and move back the contracts and had quarters of upgrade rates in the teens with the obvious P&L hit. Not talked about, or at least not talked about as much, was a positive that came with this, which was more of a carrier's customer base was under contract. In today's EIP-driven business model, we've dramatically changed the economics of equipment transactions. And now I look at this metric quite differently. With the P&L impact of upgrades dramatically reduced, I look at renewal rates and the percent of base under contract as indicators of customer satisfaction. And with 81% of our customer -- of our postpaid customer base under contract with us at the end of the quarter, I'm quite comfortable with where our renewal rate was this quarter, especially in light of all the anticipation that builds every time another iconic device launch approaches. Speaking of which, we will be ready to compete aggressively during the iPhone launch. We know there are still many non-U.S. Cellular customers out there that are still unaware that we carry Apple products. So we'll be looking to increase that awareness and win their business. In summary, we've been making steady progress over the first half of the year. And I expect to continue to move forward on our priorities during the second half. And now let me turn the call over to Steve.

Thank you, Ken, and good morning, everyone. I'll begin my comments with a few additional things to say about customer results, shown on Slide 5 of the presentation. As Ken already mentioned, we grew connections during the second quarter with 36,000 postpaid net additions, a solid increase from 17,000 net additions a year ago. The growth was driven by positive results in both postpaid gross additions, which increased 3% year-over-year to 197,000, and postpaid churn, which improved again this quarter to 1.2% compared to 1.34% a year ago. Similar to the past few quarters, the growth in postpaid net additions was driven by data-centric devices like smartphones and connected devices. Together, they accounted for 57,000 net additions. In the prepaid category, we had 14,000 net additions, an increase from a year ago, driven by the success of our new, Simple Connect plans, sold through our company and agent stores. As shown at the bottom of this slide, postpaid handset net additions were negative 13,000, an improvement from negative 19,000 in the prior year, driven by reduced churn. However, although overall handset net additions were negative, smartphone net additions were positive 8,000. Further, when upgrades from feature phones are included, total smartphone connections increased by 46,000 during the second quarter. We're providing more information about smartphones on the next slide. Smartphones represented 91% of total handsets sold this quarter, and smartphone penetration increased to 77% of our base of postpaid handset connections, up from 69% a year ago. We believe that we still have some opportunity to upgrade more of our remaining feature phone customers to smartphones and drive additional data usage revenues. The next slide shows the longer-term trend in our postpaid churn rate, which at 1.2% for the second quarter is at a historically low level. Now let's talk about our financial results, starting with revenues. Total operating revenues for the second quarter were $980 million, about the same as last year's $976 million. This small improvement in revenues reverses the trend of the last couple quarters when revenues declined both sequentially and year-over-year. However, as we look ahead, I need to remind you that last year's third quarter had a onetime bump-up in revenue due to the elimination of the reward points program. And we won't have another event like that this quarter. Service revenues were $762 million, down $62 million from $824 million last year. The largest component of service revenues, retail service, at $680 million, decreased by 8% driven by lower average revenue per user. But this decrease in ARPU was partially offset by the impact of growth in our customer base. I'll come back and say more about ARPU in a minute. The other item contributing to the reduction in service revenues was lower roaming, which declined by $11 million or 23%, primarily due to lower rates for data usage. Keep in mind, that we benefit from lower rates on our outbound roaming traffic. Total expense for outbound roaming decreased by 11% year-over-year with lower rates offsetting a significant increase in data usage. Equipment sales revenues grew 44% to $218 million, driven by higher equipment installment plan sales. Percentage of postpaid device sales on installment plans increased to 69% in the second quarter compared to 44% a year ago. We do expect the installment plan take rate to continue to increase over the course of the year. Now I want to say a few words about our postpaid average revenue metrics. Postpaid ARPU was $47.37 for the second quarter, down 12% year-over-year. Most of this decline is driven by the continued migration to unsubsidized equipment pricing. Other factors include overall industry price competition and the growth in connected devices, which have lower average revenue. Since the ARPU metric excludes equipment installment plan billings to customers, another metric which includes those billings, average billings per user, may provide a better representation of the total amount of revenue being collected from customers every month. Reported this way, the average revenue shows a decrease of 3% year-over-year with about half of that decrease estimated to be the dilution from connected devices. Average revenue per account benefits from the increase in connections per account, which grew by 6%. For the second quarter, average revenue per account was $124.91, down 7% year-over-year. But when equipment installment plan billings are included, the average billings per account actually increased by 2% year-over-year. We expect that there will be continuing downward pressure on service revenues, but that equipment sales revenues will continue to grow as more of the customer base moves to unsubsidized equipment pricing. Operating cash flow for the quarter, shown next, was in line with our expectations. Operating cash flow was $168 million compared to $162 million a year ago. Total cash expenses were essentially flat year-over-year, with an increase in the cost of equipment, driven by 6% higher volume, offset by reductions in other cost categories. When looking at operating cash flow and the year-over-year comparison, remember that this year's number includes the cost of the incremental customer growth that we achieved. Retail gross additions increased by 5%, and net additions increased from 25,000 to 50,000. Adjusted EBITDA, shown on the next slide, incorporates the earnings from our equity method partnerships along with interest and dividend income, which consists mainly of imputed interest income from our equipment installment plans. Adjusted EBITDA for the quarter was $218 million compared to $207 million a year ago. Earnings from unconsolidated entities were $37 million, and this includes $20 million from the Los Angeles partnership, a slight increase from a year ago. Next, I want to cover our annual guidance for 2016, which is shown on Slide 12 of the presentation. For comparison, we're showing our 2015 results both as reported and excluding the impact of the termination of the rewards program. Our current estimates for the year are unchanged from those provided initially in February and confirmed in May. I'll quickly review them. For total operating revenues, we expect a range of approximately $3.9 billion to $4.1 billion. This reflects our continuing expectation for modest customer growth, additional demand for data and increased adoption of equipment installment plans, along with a very competitive pricing environment. There is clearly uncertainty related to the impact of the new iPhone launch this fall, along with the normal uncertainty related to the holiday selling season. For operating cash flow, we expect a range of $525 million to $650 million. That estimate also flows through to the estimated range for adjusted EBITDA, which is $725 million to $850 million. To the extent that we achieve a lower level of customer growth than currently estimated, we would expect results to be in the upper portion of the ranges. On the other hand, to the extent that we're successful in attracting a higher level of customer growth than currently estimated, or if the pricing environment worsens, we would expect results to be in the lower portion of the ranges. Capital expenditures are expected to be about $500 million. This lower level of spending, compared to 2015, reflects the completion of our 4G LTE deployment. It includes spending to meet higher data demand and to prepare for the initial commercial launch of voice-over-LTE. I want to make just a couple of comments about U.S. Cellular's cash flows and liquidity. Cash flows from operating activities for the first 6 months of 2016 were $261 million, while cash flows used for investing and financing activities totaled $355 million, resulting in a net decrease in cash and equivalents of $94 million. As of June 30, cash and equivalents totaled $621 million. In addition to these existing balances, U.S. Cellular has $283 million of unused borrowing capacity under its revolving credit facility. We believe that these resources are sufficient to meet our operating investment and debt service requirements for the remainder of this year. Recall that the company has a 5.5% interest in the Los Angeles partnership and that the partnership had suspended cash distributions to the partners beginning in 2015 in connection with the purchase of a spectrum license in FCC Auction 97. We were notified recently by the general partner that the note payable related to the license purchase would be completely repaid by June 30 and that a cash distribution would be made in the third quarter of 2016. U.S. Cellular received a distribution of $9.6 million on July 28. So to wrap up the discussion of U.S. Cellular, I'll just reiterate what Ken said earlier. Overall, we've made steady progress over the first half of the year with results in line with our expectations. And we're confident that we can continue to move forward on our priorities. And with that, I'll turn the call over to Vicki Villacrez to discuss TDS Telecom. Vicki?

Okay. Thank you, Steve, and good morning, everyone. TDS Telecom's overall results for the second quarter showed improvement over the first quarter as revenues strengthened in all 3 segments. First, wireline revenues were nearly even with last year, and if adjusted for divestitures, showed positive growth with a 5% increase in residential revenue. Second, cable revenues grew 2% over the last year, reflecting another quarter of strong broadband subscriber growth of 12%. And third, HMS revenues grew 6% due to strong service revenue growth as well as increased equipment sales. As we continue to seek growth, cash expenses increased in line with those revenues. As a result, adjusted EBITDA on a consolidated basis remained relatively flat at $80 million for the quarter. Our financial results are reflecting the successful execution of our strategy as revenues from new products and services are offsetting declines in our legacy voice offerings. We are halfway through the year, and we are tracking against our expectations. For the remainder of the year, we will continue to focus on those strategic priorities that we shared with you in February, which will be highlighted in the coming slides. Beginning with wireline, on Slide 15. Our investments in our network and efforts to make higher-speed options available to customers continued to drive growth in IPTV connections. We completed our planned IPTV market rollouts last quarter, but continue to build out service in those 28 markets, now enabling 180,000 service addresses. We are completing our planned fiber builds, which will reach approximately 21% of our ILEC service addresses. And when combined with copper service, our IPTV-enabled markets will cover approximately 25% of our total ILEC service addresses. For the remainder of the year, we will focus on further driving IPTV and high-speed broadband bundles in these markets. To further strengthen our broadband offerings, we are deploying bonding technology up to an additional 30% of our ILEC service addresses in order to drive high speeds -- higher data speeds in our middle-tier ILEC copper markets. In our remaining markets, we are evaluating the FCC's modified universal service funding mechanism to support broadband build-out. Recall that the FCC announced a modified USF mechanism that is providing rate of return carriers with 2 paths to receive support funds to extend broadband services to unserved and underserved areas. TDS will need to make a decision on which support option it will elect: an Alternative Connect American Cost Model, which is commonly known A-CAM; or a revised USF mechanism to stay on rate of return. In order for us to make this determination, the FCC needed to finalize the amount of support that TDS would get if we elected the A-CAM path. We've just received the offer from the FCC, which was made public this week. We are very pleased with the offer for $82.3 million of support revenue annually for 10 years, as it helps us provide a better, faster broadband service to our most rural customers. Additionally, we'll be provided funding for transition in the early years in certain states. This support comes with an obligation to build defined broadband speeds to reach approximately 159,600 homes, which will require a significant capital investment over a 10-year period. We have 90 days to make our decision to accept the FCC offer, at which time, the FCC may, under certain circumstances, revise their offer, and we would have another 30 days to respond. The FCC's goal is to make this program effective January 1, 2017. Looking at the metrics on the bottom of the slide. IPTV connections grew nearly 50%, adding 13,300 compared to the prior year. And we added 2,800 broadband connections, excluding divestitures. We are offering a variety of speeds up to 1 gig service in all our IPTV markets. The uptake in IPTV has grown steadily and is now at an average penetration rate of almost 30% of residential service addresses. It is important to remember that 97% of our IPTV customers subscribe to a triple-play bundle, which results in a low churn rate and continues to increase average revenue per connection, which is now up 4% to $43.67 in the quarter. Reflecting both our fiber and bonded copper deployments, residential broadband customers in these ILEC markets are continuing to choose higher speeds, with 50% choosing speeds of 10 megabits or greater and 19% choosing speeds of 25 megabits or greater. This will also contribute to the higher ARPUs we've been experiencing. Looking at Slide 16. Wireline results were solid, even with the 2015 ILEC divestitures, which reduced revenues and expenses about 1%. As reported, residential revenues increased 4% as growth in IPTV and broadband more than offset the decline in legacy voice services. The year-over-year decrease in ILEC residential voice connections improved to 2%, excluding divestitures. Commercial revenues decreased 4%. However, we are seeing managedIP connections continue to increase. Wholesale revenues decreased only 3%, partly due to favorable annual adjustments in the second quarter. Total wireline service revenues held nearly even with the prior year at $175 million. Wireline cash expenses increased 1% as increases in employee-related expenses and IPTV programming costs outpaced the reduced cost of provisioning legacy services. As a result, our wireline adjusted EBITDA decreased 2%. As we stated in our strategy, we plan for capital intensity to decline this year as we complete our fiber build-outs. In the quarter, capital spending declined $4 million, which resulted in a higher free cash flow compared to prior year. Slide 17 shows cable connections grew 14,600 or 5% to 287,600. On the residential side, connections increased, driven by a 12% increase in broadband and an 18% growth in voice. The residential broadband connection growth drove a 300 basis point increase in broadband penetration. And total commercial connections declined due to a drop-off in video, however, broadband grew 11%. Staying with cable operating performance for a minute on Slide 18. Residential revenues increased 3% as increases from our connections growth was offset by continued promotional offerings. Commercial revenues decreased 3%, primarily due to a discrete adjustment that occurred last year. Without this adjustment, commercial revenues were up 5%. Total cable revenues of $45 million reflect an increase of 2%, as reported. However, without the impact of that adjustment, revenues grew 5%. Cash expenses increased 7% due to the higher employee video programming costs and property taxes. As a result, cable adjusted EBITDA decreased. Turning to the HMS segment and speaking to both 19 and 20 -- Pages 19 and 20. In total, you can see HMS revenues grew 6% in the quarter. This was driven by service revenue growth of 11% from increased professional services and equipment maintenance revenue. This growth offset a 2% decline in recurring hosting revenues in the quarter. Equipment sales were up 3% year-over-year due to higher spending by existing customers. Cash expenses were up 2% compared to the same period in the prior year, primarily due to the commissions on the higher sales. Adjusted EBITDA increased by $3 million to $7 million. Turning to Slide 21. We have provided our 2016 guidance, which is unchanged from the guidance we shared with you in February, as we anticipate the second half of the year to be in line with our initial expectation. And given the timing of the FCC USF reform order, we do not expect a significant impact to this year's results, but we will revisit this again in the third quarter as we learn more. Overall, we're pleased with our results of the second quarter and we'll continue to update you on our successful execution of our strategic priorities throughout the year. Now I'll turn the call back over to Jane. Jane W. McCahon: Thanks, Vicki. And Tim, we're ready for questions.

[Operator Instructions] Our first question comes from the line of Ric Prentiss of Raymond James.

Couple of questions, if could good. First, Ken, you talked a lot about upgrade rates and how you look at it now because you definitely had a different trend than the industry. The industry was light on upgrades. You guys were a little higher, but you also saw an increase in gross adds, which was something we hadn't really seen a lot. Can you wrap that around how you're looking at upgrades versus gross adds and then weave it into churn also? I appreciate the postpaid phone churn number, which is good, but is there further to drop on that given what you're trying to do with upgrades and gross adds? Kind of wrap that all into one question you can expound on.

Well, Jay Ellison is sitting here. Every quarter, we have this conversation about churn, and you asked for lower, and he squirms a little bit in his seat. But you're all connected, Ric? And you've got it right. It is, a, continuing to drive the satisfaction within our current base. And as we continue to serve them well, make sure the network is where they need it, when they need it, we get to sell more services to them. So that drives our tablets. It drives other revenue lines. And with that comes lower churn both because a -- first, you're meeting their needs and then they're voting with their wallet to buy another services with you. As they do that, that also then unlocks word of mouth and it helps us on the gross adds side. We don't emphasize renewals versus gross adds, one versus the other. We're looking to drive both of them.

And as far as churn? Do you feel there's further improvement? On a couple of calls for the last couple of quarters, you've been pretty optimistic on where you could drive churn to. Obviously, a good number. But is there more to go?

Ric, this is Jay. Since Ken's staring at me, I think I'll take that part of the question. I think we have done a superb job as the business has stabilized and we really put a lot of focus, as earlier mentioned, as we shifted to getting contract in place, with around 81% of our base under some type of lock currently. And on top of that, what we are doing now is, obviously, further refining those programs we offer in the marketplace, whether it's in the call centers or at the point of sale to really target those customers and further reduce that churn. I am -- I feel confident with the level of customer engagement that we are starting to see that we will continue to see improvement in that area. And that is all that I think I will say at this point, as Ken continues to stare at me.

I don't [indiscernible] you doing it for me, Ric?

Great. And then actually, I wanted to switch back to Vicki for a second on the FCC, the A-CAM order. If you do elect that, based on the FCC details you were given, the $82.3 million revenue per year for 10 years, does that start in year 1? And it's a consistent $82 million a year? And is there some kind of thought we should lay out there as far as early thinking as far as what the capital cost per home might be to deploy that type network?

Sure. Sure. Thank you, Ric. First off, let me just start by saying that I'm very pleased with the FCC's offer to provide that support necessary to bring this better and faster broadband service to a substantial portion of our customers, who live in rural locations. And quite frankly, that's too costly for us to build the necessary network to, without this level of support from the government. The offer of $82.3 million per year over the 10 years of support is a bit higher in the earlier years, and that is to support -- we've got a support transition mechanism that will be higher in the early years and then it will taper off. So in total, I think the 10-year amount is $852 million with that transition number. And yes, it's going to require us to deploy significant capital over that time frame. Right now, we're deep into the network build designs to try to better understand those economics before accepting the model support versus staying on rate-of-return. And our acceptance will be on a state-by-state level. And I think it's important to remember that all rate-of-return carriers going forward are going to have broadband build-out obligations, regardless of the USF option. So right now, we're making those estimates and we'll know more as we look at 2017. As I said, I don't think this will impact 2016 too significantly. We'll revisit that back in the third quarter. But we have a lot of work to do before we put anything out there in terms of a capital number.

Okay. But does -- based on your tone of being very pleased, it does feel like you're going to be able to build something and earn a nice return and get people the service that they want?

Yes. We're pleased with the offer.

Our next question comes from the line of Sergey Dluzhevskiy -- pardon my pronunciation, of Gabelli & Company.

A couple of questions, if I could. First one for Ken. You guys, obviously, have 4,000 towers that you own. As you look out into the next 2 years, as you're going to be deploying VoLTE and eventually possibly 5G, can you talk about your strategy for utilizing those towers and how you could maximize the value and contribution from your core tower portfolio?

Thanks, Sergey. Those towers are critically important to us. It allows us control over our network deployment plans. And given our whole strategic positioning around quality, it ensures that we have access where we needed on what turns out to be almost 2/3 of our towers now. Also, it protects us from some of the rent increases we've been hearing about in the industry and other kind of economic battles. So where I'm very happy that we've got those towers, we will continue to work on growing revenues off those towers by leasing those to other parties. But they are a [indiscernible] fundamental underpinning to our whole networking position. And I'm real glad that we've got them.

Great. And my -- and I have 2 questions for Vicki. On A-CAM, so obviously, you're pleased with the award, $82 million, I think, last year in total, you guys were -- for all federal USF, you received about $74 million, $75 million. Could you remind us what is the comparable number for this $82 million? What portion of $74 million compares to the $82 million?

Yes. So the comparable number, I think you're citing a total federal support number. The comparable number is more on the average about $50 million annually. And that's coming from 2 -- it's really replacing 2 funding mechanisms, our -- in our carrier loop support and our high-cost loop support.

Right. Great. And a second question on cable acquisitions and kind of what your view is of current deal environment in the cable space and your potential deal pipeline. And if -- I mean, have you seen some properties that maybe you came close to -- I mean close to that gain [ph], close to pacing [ph] your M&A criteria, but at the end of the day, you decided not to pull the trigger? And what were the main reasons you decided, let's say, not to purchase them?

Well, okay. So let me just say, right now, from an opportunity standpoint, we are seeing more activity than we saw at the last half of last year. I mean, it was very quiet in the last half of last year. But -- so we are seeing more activity, not particularly robust. But I would say we're seeing a few more opportunities. And as you know, I can't comment on anything specific in the pipeline right now. But again, I wanted to reiterate, we are actively pursuing cable acquisitions and are very bullish on our cable strategy.

Our next question comes from the line of Phil Cusick of JPMorgan.

So a few, if I can. First, Ken, inbound roaming was up nicely year-over-year for the first time in a long time. What's the dynamic happening with potential partners?

So I think the number is -- is wrong there, Ric. I think, Ric, I'm sorry. You've got the numbers going the wrong way. You've got the numbers going -- you've got the names going the wrong way.

It is Ric that was wrong. It's okay.

Actually, the roaming revenue was down year-over-year. I think Slide 8 would show that. Traffic continues to grow. It's pricing. And it's pricing that also flows right through to our cost line. So we're going where we need to go and want to go. It's not that we're going someplace we don't want to go. Dynamic around roaming is really getting -- playing out just the way that I hoped it would, like to see it. We've got now 3 agreements that we've executed. We're going to actually turn it on a couple of more, as I mentioned. My -- our engineers have been leading the pack in getting some technology implemented that actually allows us to deliver to our customers, when they're roaming, data on one network, voice on a different one. And what that does is it lets us continually monitor the customer experience to make sure that we get the best experience for our customers, wherever they're at. On the other side, what that also means is that, in the past, all of our roaming only came from CDMA-based carriers, and we thought, eventually, when we got to VoLTE, we'd be able to serve more carriers. Well, this would allow us to at least meet the data needs of other carriers before we get all the way to VoLTE. So it's got some real positives behind it. Now anything that's going on with roaming, is as our customers now get a better 4G experience as they travel, we're seeing an increase in usage from them, just like we saw an increase of usage when they got 4G on our own network. So a couple of dynamics going there, but I'm happy with where roaming is setting up in terms of the revenue picture going forward.

Okay. So if we could ignore me being totally incorrect at the start, should we start looking at the stabilizing going forward? Is that fair?

I don't know -- yes, it should, whether it's this quarter that we get there or whether it might, from a comp standpoint, sequentially, I've got one more in front of us, but yes, we should be.

Okay. Okay. That's great. And then Ken, higher churn of tablets versus phones. That's great to break out. Does that -- looking at that make you question a little bit more the value of these? Or you still feel good about them?

No. We still -- it's interesting. We look at this. We look at it regularly. They are still nice adjunct products along a couple of different dimensions. So yes, they're generating incremental revenue and incremental margin. As I said, we looked at it as recently as probably last month. But in addition to that, it really goes a long way to strengthening that customer relationship. And so even though you may see a higher churn rate on tablets, albeit a low rate by historic standards, it's higher than smartphones, as an example, but it strengthens the overall relationship of the account. And so I'm not really worried about that. And even at 1.8%, besides the economics paid off on that, it continues to improve. It's done pretty nicely year-over-year.

Okay. You also, Ken, bought back some stock in U.S. Cellular in the third -- in the second quarter. With the L.A. distribution coming back on, should we look for buybacks to ramp in the third quarter?

The L.A. distribution wasn't a reason to buy or not buy at the U.S. Cellular level. At the U.S. Cellular level, our buyback is primarily designed just to offset the dilution that comes every year out of our different benefit plans. So that change in L.A.'s status, which we've kind of been anticipating, isn't a big driver one way or another at our level.

Okay. And last one, if I can, one for Vicki. HMS equipment sales saw a nice pickup this quarter. Is that seasonal? Or should we be thinking that, that business is starting to catch some traction?

So yes, we had nice service -- service revenue growth in the second quarter of 11%. But this -- that growth was really driven and generated by, primarily, professional services and selling equipment maintenance agreements on hardware purchases. So that's more onetime-type revenues. These are important to our customer and our business, but we really want to see more revenue growth coming from our cloud and hosting areas, which is the recurring service revenue that really leverages our data centers and our managed service offerings. So some -- that with strong professional services and maintenance agreements.

And what should we be thinking in terms of ramp in that cloud and hosting?

So the ramp in the cloud and hosting, I think, year-to-date, has been -- I think you could translate it into the low -- low to mid-single-digit growth for the year.

[Operator Instructions] As there are no further questions, I would like to turn the conference back over to management for closing remarks. Jane W. McCahon: Well, we'd like to thank you all for your participation on a summer Friday. So if you have any other follow-up questions, let us know, or we'll look forward to seeing you over the next few months. Thanks so much.

This concludes today's conference. Thank you for your participation. You may disconnect your lines at this time, and have a wonderful rest of your day.