Rule 424 (b) (3)
                                                   Registration No.33-38560
   Pricing Supplement No. C7 , Dated  February 3, 1995
                         ---          ----------------
   (To Prospectus Dated April 21, 1994 and
   Prospectus Supplement Dated April 21, 1994)

   CUSIP No:  87943H BA 6

   Telephone and Data Systems, Inc.
   Medium-Term Notes, Series C
   Due From Nine Months to Thirty Years From Date of Issue
   =============================================================
   Fixed Rate Note
   ---------------

   Principal Amount: $15,000,000          Trade Date: February 3, 1995 
                     -----------                      ----------------

   Issue Price:      $15,000,000 Original Issue Date: February 10, 1995
                      ----------                        ---------------

   Interest Rate:          9.25%       Maturity Date:  February 10, 2025  
                          ------                      ------------------

   Agent's Discount or 
      Commission:       $112,500     Net Proceeds to Issuer: $14,887,500  
                        --------                             -----------
   

   Form:  X  Book Entry     Certificated           Depository: DTC #5132 
        ----            ----                                  ----------

   Selling Agent:__x___ SALOMON BROTHERS INC 
                 ______ MERRILL LYNCH & CO.

         Selling Agent acting in the capacity as indicated below:
               x          Agent             Principal
            ---------           ----------

         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].

   ==============================================================

   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:
         Initial Redemption Date:   February 10, 2005        
                                  -------------------
         Annual Redemption Percent:     Par  (100)   %
                                   ------------------

   Repayment (at the option of the Holder)
     ___X__ The Notes cannot be repaid prior to the Maturity Date.
     ______ 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.