Exhibit 12 TELEPHONE AND DATA SYSTEMS, INC. RATIOS OF EARNINGS TO FIXED CHARGES For the Nine Months September 30, 1997 (Dollars In Thousands) EARNINGS: Income from Continuing Operations before income taxes $ 52,774 Add (Deduct): Minority Share of Losses (27,041) Earnings on Equity Method (57,416) Distributions from Minority Subsidiaries 42,695 Amortization of Capitalized Interest 619 Minority interest in majority-owned subsidiaries that have fixed charges 17,297 ------------ 28,928 Add fixed charges: Consolidated interest expense 60,050 Interest Portion (1/3) of Consolidated Rent Expense 6,675 Amortization of debt expense and discount on indebtedness 530 ------------ $ 96,183 ============ FIXED CHARGES: Consolidated interest expense $ 60,050 Capitalized interest 10,870 Interest Portion (1/3) of Consolidated Rent Expense 6,675 Amortization of debt expense and discount on indebtedness 530 ------------ $ 78,125 ============ RATIO OF EARNINGS TO FIXED CHARGES 1.23 ============ Tax-Effected Redeemable Preferred Dividends $ 171 Fixed Charges 78,125 ------------ Fixed Charges and Redeemable Preferred Dividends $ 78,296 ============ RATIO OF EARNINGS TO FIXED CHARGES AND REDEEMABLE PREFERRED DIVIDENDS 1.23 ============ Tax-Effected Preferred Dividends $ 2,777 Fixed Charges 78,125 ------------ Fixed Charges and Preferred Dividends $ 80,902 ============ RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED DIVIDENDS 1.19 ============