Rule 424 (b) (3)
Registration No.33-38560
Pricing Supplement No. C1, Dated January 9, 1995
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(To Prospectus Dated April 21, 1994 and
Prospectus Supplement Dated April 21, 1994)
CUSIP No: 87943H AU 3
Telephone and Data Systems, Inc.
Medium-Term Notes, Series C
Due From Nine Months to Thirty Years From Date of Issue
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Fixed Rate Note
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Principal Amount: $2,200,000 Trade Date: January 9, 1995
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Issue Price: $2,200,000 Original Issue Date: January 17, 1995
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Interest Rate: 9.35% Maturity Date: January 17, 2025
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Agent's Discount
or Commission: $16,500 Net Proceeds to Issuer: $2,183,500
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Form: X Book Entry Certificated Depository: DTC#5132
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Selling Agent: X SALOMON BROTHERS INC
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__________________ MERRILL LYNCH & CO.
Selling Agent acting in the capacity as indicated below:
X Agent Principal
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If as principal, the following shall apply:
[Salomon Brothers][Merrill Lynch] has purchased the Notes as
principal in this transaction for resale to one or more
investors at varying prices related to prevailing market
conditions at the time or times or resale as determine by
[Salomon Brothers][Merrill Lynch].
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Redemption (at the option of the Company):
_______The Notes cannot be redeemed prior to the Maturity Date.
X The Notes may be redeemed prior to the Maturity Date:
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Initial Redemption Date: January 17, 2005
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Annual Redemption Percent: Par (100) %
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Repayment (at the option of the Holder)
X The Notes cannot be repaid prior to the Maturity Date.
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_______The Notes may be repaid prior to the Maturity Date:
Repayment Date: _________________________
Repayment Price: _________________________%
Original Issue Discount Note: ___________ Yes _____X_____ No
Total Amount of OID: ___________________________________
Yield to Maturity: _____________________________________
Initial Accrual Period OID: ____________________________
Unless otherwise indicated, the Company shall not have the option to reset
the Interest Rate or extend the Maturity Date of the Notes.
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