Telephone and Data Systems (TDS) 10-Q 2008 Q3 Quarterly report

Exhibit 12

TELEPHONE AND DATA SYSTEMS, INC.

RATIO OF EARNINGS TO FIXED CHARGES

	Nine Months Ended
	September 30,
	2008			2007
	(Dollars in thousands)
EARNINGS:
Income before income taxes, minority interest and extraordinary item	$	483,301		$	747,260
Add (deduct):
Equity in earnings of unconsolidated entities	(66,945		)	(71,394		)
Distributions from unconsolidated entities	51,224			47,871
Minority interests in pre-tax income of subsidiaries that do not have fixed charges	(14,815		)	(12,024		)
	452,765			711,713
Add fixed charges:
Consolidated interest expense (1)	108,634			162,776
Interest portion (1/3) of consolidated rent expense	35,238			34,473
	$	596,637		$	908,962
FIXED CHARGES:
Consolidated interest expense(1)	$	108,634		$	162,776
Capitalized interest	870			582
Interest portion (1/3) of consolidated rent expense	35,238			34,473
	$	144,742		$	197,831
RATIO OF EARNINGS TO FIXED CHARGES	4.12			4.59
Tax-effected preferred dividends	$	62		$	65
Fixed charges	144,742			197,831
Fixed charges and preferred dividends	$	144,804		$	197,896
RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS	4.12			4.59

(1) Interest expense on income tax contingencies is not included in fixed charges.