Vicki has been an important driver of TDS Telecom's success over the past 10 years, and she will bring a wealth of experience to her new job.
And with fiber available to only 30% of households in the U.S., this represents a great opportunity for us.
TDS was founded 50 years ago on a mission of bringing connectivity to unserved and underserved markets, so the introduction of the infrastructure bill brings opportunities for both of our businesses.
Since the beginning of 2020, we have raised three and a half billion in new capital, both debt and preferred equity at 4.8% while at the same time redeeming $1.8 billion in debt.
That carried a weighted average cost of 6.9%, reducing our average cost from 6.7% to 5%, and resulting in $37 million in annual coupon savings.
So far, nearly 30% of our smart phone subscribers have 5G-capable devices.
And with the spectrum we acquired in the C-Band and DOD auctions, we will have mid-band spectrum and substantial majority of our operating footprint, covering 80% of our subscribers with 100 megahertz of mid-band.
As a reminder, we have previously acquired millimeter wave spectrum with an agreeable spectrum depth of 530 megahertz across our footprint.
In total, including required incentive and relocation payments, we have invested slightly over $2 billion in mid-band spectrum and have done so at efficient prices as our average price per megahertz pop that we paid in both auctions, 107 and 110, was lower than the overall auction averages.
We turn to Page 9.
Put some context around it, you got $46 billion allocated to broadband.
The specific allocations are still being worked out but you can think of about $20 billion likely flowing to the states that we operate in and at least $8 billion flowing to the areas where we operate network.
We've commercially launched our millimeter wave product at 300 gigs.
We're number 141 in the country.
That's up from number 413 last year, and we're ranked as the best employer in telecom.
That's ahead of Cox at 180, ahead of Verizon at 244, ahead of T-Mobile at 336, and ahead of a lot of others that weren't even ranked.
We estimate there are over 3 million businesses in our operating footprint.
Posted handset gross additions increased by 6,000 year over year, largely due to higher switching activity in combination with a strong promotional activity.
We saw our connected device gross additions to climb 12,000 year over year, driven by lower hotspot sales compared to the prior year, when we experienced an increase in demand due to the pandemic.
Postpaid handset churn was 1.10%, up from 1.01% a year ago.
Total postpaid churn combined in handsets and connected devices was 1.35% for the fourth quarter of 2021, higher than a year ago due to the higher handset churn and certain business and government customers disconnecting connected devices that were activated during the peak periods of the pandemic in 2020.
We saw prepaid gross additions increased by 7,000 year over year and saw an overall increase of 14,000 to our prepaid base compared to prior year end.
Total operating revenues for the fourth quarter were $1.068 billion, essentially flat year over year.
Retail service revenues increased by 2% to $696 million, primarily due to a higher average revenue per user, which I will discuss in a moment.
Inbound roaming revenue was $24 million, decrease in 27% year over year due to lower data volume and rates.
Other service providers were $62 million, up 3% year over year.
Finally, equipment sales revenues decreased by 4% year over year, in large part as a result of an increase in promotional activity.
And as a result of the combined impact of these factors, loss on equipment increased $24 million year over year.
Average revenue per user or connection was 48.62 for the fourth quarter, up 2% year over year.
On per comp basis, average revenue per -- average revenue also grew 2% year over year.
Fourth quarter tower rental revenues increased by 9%.
As shown in the slide, adjusted operating income was $181 million, an increase of 1% year over year.
As I commented earlier, total operating revenues were $1.068 billion, essentially flat.
Total cash expenses were $887 million, a decrease of 1% year over year.
Total system operations expense decreased 3%, largely driven by lower roaming expense resulting from lower data rates and lower voice usage, combined with lower cell site maintenance.
Cost of equipment sold increased 4% due to an increase in units sold in a higher average cost per unit sold, driven by a higher mix of smartphone sales.
Selling, general, and administrative expenses decreased 4%, driven primarily by decreases in advertising and legal expenses.
Suggested EBITDA, which incorporates the earnings from our equity method investments along with interest and dividend income, was $225 million, an increase of 1% year over year.
Total operating revenues are $4.1 billion, a 2% increase year over year.
Total cash expenses were $3.3 billion, an increase of 3%.
Excluding costs of equipment sold, cash expenses decreased 1%.
Adjusted operating income and adjusted EBITDA declined 1% due primarily to an increase in loss on equipment, which increased $70 million from $41 million to $111 million, which is a result of the highly competitive and promotional environment that we experienced throughout 2021.
We expect ranges of approximate $3.1 billion to $3.2 billion in service revenues, $750 million to $900 million in adjusted operating income, and $925 million to $1.075 billion in adjusted EBITDA.
For capital expenditures, the estimate is in a range of $700 million to $800 million.
We will also continue our targeted millimeter wave buildout in 2022 and begin making investments to deploy the mid-band spectrum we acquired in auctions 107 and 110.
In fact, we surpassed $1 billion in operating revenues and we exceeded 500,000 broadband connections for the first time in TDS Telecom's history.
In 2021, we turned up 86,000 new fiber marketable service addresses, bringing total fiber addresses to nearly 400,000.
As we execute our strategy over the next five years, we plan to reach approximately 2.2 million service addresses, with about 60% of those addresses being fiber and 80% capable of gig or faster speeds.
We plan to triple our total fiber service addresses over the next five years to 1.2 million with aspirations of increasing that target as we identify new opportunities.
For the markets we have selected, we expect to achieve broadband penetration rates between 40% and 50% in a steady state, making us the leader in our markets.
I am very proud to have served as TDS Telecom's CFO for the past 10 years, and I look forward to continued success in my new role at TDS.
Moving to Slide 25, we grew our total service addresses 7% year over year, and are now offering one gig broadband speeds to 58% of our total footprint.
Total residential connections increased 2% due to broadband growth in new and existing markets, partially offset by a decrease in voice and video connection.
Looking at the chart on the right, overall, higher value product mix and price increases drove a 4% increase in average residential revenue per connection.
Total telecom broadband residential connections grew 7% in the quarter as we continue to fortify our networks with fiber and expand into new markets.
Our focus on fast, reliable service has generated a 12% increase in total residential broadband revenue.
In areas where we offer one gig service, we are now seeing 20% of our new customers taking this superior product.
On Slide 27, total revenues increased 2% year over year, driven by strong broadband growth.
Residential revenues increased 6% across all markets.
Commercial revenue decreased 7% in the quarter on lower [Inaudible] connections, partially offset by a 5% increase in broadband connection.
Wholesale revenue decreased 2%.
Total revenues increased 2% in the quarter and 3% for the year.
Cash expenses increased 2% in the quarter and 5% for the year due to both supporting our current growth, as well as spending related to future expansion into new markets, which is not yet reflected in our revenue.
Adjusted EBITDA increased 2% for the quarter to $75 million, but decreased 2% for the full year due to planned investment spending on new market.
Capital expenditures increased 2% for the quarter and 12% for the year due to increased investment in fiber deployment.
On Slide 29, we've provided guidance for 2022.
We are forecasting total telecom revenues of $1.01 billion to $1.04 billion.
Our plans include address delivery of approximately 160,000 fiber service services.
Adjusted EBITDA is expected to be between $260 million $290 million in 2022, compared to $310 million in 2021.
Capital expenditures are expected to be between $500 and $515 million in 2022, compared to $411 million in 2021.
Nearly 90% of our capital spending is allocated to broadband growth, with more than 60% going directly into cyber investment.

Summary:
Total operating revenues for the fourth quarter were $1.068 billion, essentially flat year over year.
As I commented earlier, total operating revenues were $1.068 billion, essentially flat.
On Slide 29, we've provided guidance for 2022.