Exhibit 12 TELEPHONE AND DATA SYSTEMS, INC. RATIOS OF EARNINGS TO FIXED CHARGES For the Nine Months September 30, 1996 (Dollars In Thousands) EARNINGS: Income from Continuing Operations before income taxes $ 257,889 Add (Deduct): Minority Share of Losses (8,530) Earnings on Equity Method (40,747) Distributions from Minority Subsidiaries 14,959 Amortization of Non-Telephone Capitalized Interest 2 Minority interest in majority-owned subsidiaries that have fixed charges 23,729 --------- 247,302 Add fixed charges: Consolidated interest expense 29,925 Interest Portion (1/3) of Consolidated Rent Expense 4,823 Amortization of debt expense and discount on indebtedness 417 --------- $ 282,467 ========= FIXED CHARGES: Consolidated interest expense $ 29,925 Capitalized interest 21,192 Interest Portion (1/3) of Consolidated Rent Expense 4,823 Amortization of debt expense and discount on indebtedness 417 --------- $ 56,357 ========= RATIO OF EARNINGS TO FIXED CHARGES 5.01 ========= Tax-Effected Redeemable Preferred Dividends $ 769 Fixed Charges 56,357 --------- Fixed Charges and Redeemable Preferred Dividends $ 57,126 ========= RATIO OF EARNINGS TO FIXED CHARGES AND REDEEMABLE PREFERRED DIVIDENDS 4.94 ========= Tax-Effected Preferred Dividends $ 2,680 Fixed Charges 56,357 --------- Fixed Charges and Preferred Dividends $ 59,037 ========= RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS 4.78 =========