Earnings call transcript Q4 2022

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Operator

Good morning and welcome to the Crown Castle Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Ben Lowe, Senior Vice President. Please go ahead.

Ben Lowe

Thank you, Kate and good morning everyone. us we joining quarter our for results. XXXX you today discuss as fourth Thank the morning Crown call Crown on me With this Executive Officer. and Financial Castle’s are Officer; Dan Chief Schlanger, Castle’s Chief Brown, Jay To aid supplemental the throughout that section Investors the crowncastle.com have call our at be materials website in of will discussion, the we posted referenced this morning.

those and may call are factors affect subject the risks, press the from uncertainties filings. of which vary potential contain results to company’s release sections actual statements, assumptions Information forward-looking will the which This our conference available and about results and expected. materially in SEC Factors certain could Risk is the

to are of Our made update XXXX today, forward-looking as and statements. XX, no statements January any obligation we assume

non-GAAP the call Tables at in the In includes measures. non-GAAP measures the certain in company’s of package of discussions Investors are financial financial today’s section website supplemental available these reconciling addition, crowncastle.com. information

me over So turn with the that, to call let Jay.

Jay Brown

and Thanks, call thank on the joining this morning. us Ben everyone for you

my brief XXXX you our I and in changes a detail. XXXX more talk fourth in no successful bit XXXX Castle coming for Crown intact. Dan we expected to trends was the business through quarter before results, saw over to positive plan prepared to to outlook, it keep from year remarks handing the and numbers With across results another our As as our remain

tower our rapid in our deployment tower deployed on were X,XXX XXXX, additional model exceeded demonstrating they the by solutions interest previously of as organic trends and to on growth the the revenue sites reflect resilience the proud year fiber tower what XG. The growing strategy. led densification business support X.X% we while of increase existing thousands not in support equipment positive industry customers to network expectations XXXX and small offset spectrum I As initial nearly for We impact am our operating with upgraded X%. And nationwide efforts the of added our team initial to with of cells rates, sites of our I again accomplished. revenue and

As than a share per that dividend to growth bottom deliver strong able line more X% result, supported we growth. were

discussed we growth nodes. of we earnest positive growth leasing into operating that when organic XG we expected of our are and in guidance As national with wireless of the XXXX, small part believe spectrum X% to strong October, the mid-band a will tower initially another phase as trends, XX,XXX provided momentum a of initial year in With in a driving doubling cell towers established to deployments their operators respect deploying build-out. carry

to capture with believe to three for new half upgraded growth To-date, share only are to likely co-locations. across have position long-term in revenue more shift to infill providing been And time over a we opportunity. an upgraded spectrum, growth DISH additional our substantial that new customers mid-band outsized of a are a sites Adding continue with network. wireless we significant our to sites opportunity nationwide their support build-out continue I their opportunity, additional as before about top of will great of the with focus

year represent With the scale. believe on first XXXX another approximately at in backlog, will cell cells acceleration air contracted growing on existing deployments Turning demand co-located to small cell of half require XG to nodes of will growth double networks we rate to the as and cells, business. sustained our a to customers our small from the XX,XXX over our expect small year with in for nodes XX,XXX small I fiber this meet XX,XXX

fiber solutions shared exit to see opportunities same to fiber cells we we XXXX. pursue by we to and are returns the generating We from growth leveraging small profitable expect the as to also continue X% to assets return add growth to

Looking bigger industry expect year growth is opportunity, couple about why of years only and will what the a decade-long beyond we opportunity. our the so are into with excited am I early be picture this we growth as innings at a XG the still in

Our customers significantly keep come persistent as seeing for consumption levels XG, of demand. to monthly growth are data with for investment years data providing significant this mobile to consumers the need in higher to upgrade network pace

wireless of phases build-out growth. have with coming in we that provide of long phases nationwide our many an initial seen industry initial densification with upgrades led push to network sustained augmentation followed are network to phase We generational in the years. the its believe coverage by has follow in As the throughout we history, of periods continued XG to and the to occur periods over

over density demand both as Consistent requires their densification densification of customers with most to data it they will to towers sites small by to the existing and grows reusing as past majority get and site to we their cells The fill believe nature doing first on out the will their of site continue shorter we shifting spectrum network. of before spectrum practice, and focus shorter networks their our their of cell deploy the densification require in cell the assets currently wireless at are distances. XG scale that expect

to and this $XX invested possible. that view networks to-date we With growth than much as are cells wireless that of more for in towers billion mind, recently, small capital capture fiber more as of opportunity mission-critical have in and

to assets XX% are time add we total to grow on and and flow. opportunity capital generating customers return Importantly, we fiber over already our return with that tower the cash our a our invested as increase

Crown growth next-generation believe access compelling with fiber, investors generate to the of an by benefit Castle small most share cells I a with comprehensive development of that and current opportunity runway result, returns to profile the will providing growth development of and excellent and and that providing our will with total an to of of the a networks attractive is target believe U.S. attractive investment value. the we X% create As return X% exposure yield in the to towers, the offering per and lowest from shareholder of a X% growth new extend assets best dividend annual risk market, our long-term

I with call And will turn that, Dan. to the over

Dan Schlanger

We see year another elevated activity per trends good annual of X.X% Jay solid in expect business year share. morning of runway to The our to and U.S. dividends operating long Thanks, XXXX growth leasing our leading in to the XXXX generated industry customers of everyone. our strong in in growth we contributed revenue across growth tower X% another across and nearly XG and of continue we as the investment a

small package. XXXX want we response to we draw to the made I solutions provided outlook, growth and our discussing from growth for your of to understand better results help and historical XXXX in quarter This heard Before organic information to billings trends. organic fiber XXXX. have attention going of line investors our feedback the supplemental we enhanced growth information towers, this cells to disclosure business organic to back detail investors, by some composition In the includes enhancements disclosure

and layout We addition line helpful. new many it information also for the to make information hope supplemental follow. find business you expanding by to additional of reorganized In our be the easier this we to cases, package, readers in to disclosure,

AFFO X% adjusted of Now earnings our and the Slide rental growth by growth EBITDA revenues turning the XX% year in year. XX%, and than in billings, was presentation, in full growth organic rental of growth in X% to financial increased from X% included site site XX% growth increased The more revenues to XXXX cells small results nearly growth X for contribution rental site solutions. X% X.X% fiber consisting on towers,

year growth EBITDA of of Turning to X, growth X%. unchanged and AFFO outlook Page site XXXX revenue and our remains rental X%, X% of full adjusted growth includes

of X% organic consolidated We disclosed small and in X% cancellations. adjusted when also X% the revenue billings growth fiber expect the growth of impact organic growth in towers, in cells solutions. for X% approximately growth Sprint flat The of previously consists

business. portion last we in rationalization in we our a network result the financial typical Sprint’s for to are As results legacy movements that some quarter, our of not discussed of expect

$XXX associated this unchanged non-renewals approximately accelerated accelerated payments network for activity expectations and during of rationalization payments to million million $XX and non-renewals million XXXX. Our with of new with are $XXX

the year. the first growth occur quarter in majority this in the and year-over-year impact billings each to quarter We therefore expect non-renewals of

We in the associated concentrated to accelerated with quarter. second payments related services the this be expect work decommissioning activity and

As a AFFO the and result, to represent quarter XXXX. in expect the we adjusted for second high EBITDA watermark

debt in approximately to adjusted Turning with to finished financing net Xx XXXX with activities, EBITDA. target we our leverage line of

expected small $X.X our includes XXXX, our discretionary billion CapEx gross net is able our full grade require or that billion and $X on returns expect of a our billion prepaid of to discretionary to significant debt year current have CapEx builds, with be we rent. Based relative higher investment cells while also profile. of co-location finance anchor unchanged approximately capital to maintaining For are we $X.X which nodes, of backlog with outlook capital mix less credit to

this our coupon billion sheet term $X in a senior our when with issued we Earlier to unsecured month, under to facility. strong we borrowings added position balance X% notes revolving out credit

debt, over financing facility. average available more maturity liquidity billion Following approximately and credit X XX% fixed we rate weighted under than through limited a $X.X XXXX our of this transaction, revolving years, have in maturities

returns our will business and deliver shareholders our for that strategy future about of by and execute our So over are risk-adjusted our wrap we drive to up, dividend excited to the help the assets highest in strength on investing ability long-term growth. to growing the our

our we in have believe the to XXXX. X% compound are positioned as growth We share share we dividend XXXX. per move X% X% And since to to dividend growth and return annual to well per we dividend beyond established decommissioning I in Sprint share per X% target growth impacts that delivered X%

I’d questions. like the open Kate, that, to call to With

Operator

Instructions] of ahead. Michael go is [Operator first question Citi. The from Please Rollins

Michael Rollins

want And thank just additional morning. also, good Two if and I helpful. topics you could. I disclosures. the Thanks for Very say to

a that when fourth First, little small to a you install your look XX cell on typical – to pace XX,XXX the what’s leasing for you ‘XX the quarter? the the opportunity XXXX? into and then deployment cycle that at to consider bit cell XX-month further during customers, Thanks. described And experienced small accelerate small and you you the cells, more color that if on backlog

Jay Brown

Mike. bet. You Good Thanks for the morning, comments.

of mention around X,XXX nodes of we the on a did I and this the quarter. you increase and total contract in during leasing, first question made number under the remarks, On air fourth prepared my noted by as

customers, So that ties believe sites to those didn’t network. we see with activity as densification, tower are deals the term sites, we is on representative And this the think fourth are starting this around comments additional touching I they past the that commitment deployments commitments site around in for move we and my cell densification and the really the previously beyond longer any upgrades at large sign look saw throughout plans, activity to the continue exactly which we is of of cycle their to we the announced. to just and And of ongoing large but second represents going carriers your nodes question that XG closely timeline. and the to quarter the backlog that beyond

have XXXX that’s And we to to see acceleration we network, we small think as their expect doubling in XXXX, of nodes comments, growth my deployment will in and of mentioned acceleration when to cells. think XX we think nodes I seeing need particularly to from they what that that of months put be small cells, the in an air. of and number to of start on put actually XX,XXX, visibility on the we are in in air advance XX the I are these going

guidance timing, given how growth So that I business. start of am not put ‘XX. and on and we But acceleration give do this will backlog is of in we an to the on think many ‘XX really ready the in the

Michael Rollins

Thanks.

Operator

next is ahead. Please Barden of Bank David question of from The go America.

David Barden

and for along is CapEx respect to the that is I Hi, have I years. are guys. visibility second X scale chosen how have way the one with guess I would that you cells related relationships have that on do route Good portion Thank you cash to the self-perform be constant They carriers that related upfront on they be of over think I less you with. topic, their guess, Thanks don’t it years? build runoff flows to wondering and or the think about for market much. small Is how And aren’t to large the the that? foresee? rent this X so is? you is of be ready might taking cell you budgeting terms Is coming if these it you next the as that contribution think the going case-by-case already relationships impacting for that’s of a bit are you other to on of these what on counterparty in was which got prepaid that plans morning. and have network we relevant on a lines, questions so as much the because little about do the a Is known? we you to is questions. so some how it question around, basis? like evolved size you the and could amortization why evolved? drumbeat say, Jay, go in total Obviously, backlog, opportunity small these guess two There not elaborate densification

Jay Brown

your I business, On of Dave. see markets time a with whole carriers they in going agreements a are morning, agreements you whether probably large-scale to will the around give see the question large of agreements combination us markets, the with time. think carriers with over or where that carriers, we first over scale Good number

be to agreements large-scale lumpy. those expect We

thinking expect to and see dependent be where the or are will quarter year, even is. the every about and we wouldn’t need are holes that the the upon every it but network way the So where them carriers

is when some agreements, a – in there large-scale the think markets. I few of securing respect value particularly some to those in in with concentrated resources

continue to So those. I think you will see

where continue carriers them business do us scale in fourth in will they you not and chunks. we are give saw at think the large see also quarter, we what I and smaller to

approach picture time, underlying view of necessarily say, for work. with talked because capital I to on think the or be And small to needed is have to us I and the are going and are both I to I think are be contract this The an think capital not rigorous going trend think, we one allocation small other will that don’t business. about of think put I everywhere So basis. our our I big there. as for where to years, over representative cells needed, both disciplined nature carriers, or and of is cells attractive us, of

So going work, than deploy capital other we’re and are return willing going to need to to we to find means places self-perform. where decide what do to thresholds continue. who today, to put And carriers have self-perform providers willing with pick we we lower either we’re for which the choose to are capital were the the comfortable I alternatively, carriers they’ll it. – seen or will think in where most part, And that not at in

the that’s see of to think Again, continue don’t self-perform indicative I You’ll for the business. carriers.

risks returns and indicative it’s our the grow I both elongate way about we underwrite. of that more we about that to think the desire timeline think return thresholds of dividend, the be the thoughtful and

structured the the is pricing deploy On to to based return to contribution, the on the and way underlying relates CapEx backlog nodes. cost are related agreements second question the carrier the around – the

will cost unison move, way it’s that in with the carriers will from that – actually we’re networks them. deploying that the in of So the deploying CapEx deploying the CapEx we’re the the the locations contributions move

capital this contributions give a going the turn deploy, is less view to each we think CapEx that guidance be what we In ‘XX then you what’s carrier contribution of CapEx, then less. more will to in ‘XX, point where going going ‘XX. think and deploy, the for be to year on our what and carrier backlog, will we’re it’s to given for year, outlook expensive CapEx expensive out the break where we year that I we’re going portion So do calendar give those a we think guidance for air you capital that of market what play. total contribution higher. don’t for for offsetting will individual provide as and places the not are be to to is be But around we’ve at they beyond

David Barden

on this And real then, the for is but and Jay, to mechanics up quick just – just maybe Dan, how follow question a work.

contribution CapEx you the you but during until to the after comes amortizing the XX start So XX-month CapEx, that don’t contribution begins. lease recognize period, that in

And Is then money got amortizing where you’ve is statement. so you between wrong? the that the right it and there start window a income where through or

Jay Brown

You’ve articulated it correctly.

statement the start necessary will then we capital So the the income process you’re through question. complete to nodes lease. node sure say, One terms would and the trying go completed once deploying would receive amortize exactly we would and carrier. in – cash through of we’ve that as decipher At I the I operational over we then we work it of not to it point, to the would term the this the incurring of work thing to of I’m And expenditures. and run deliver the what

are of You’ve months XX we short. additional articulated is [Technical period one that helpful, the of when talk that’s build time of that, build there time. And it occurs backlog it is the to the XX back nodes take Obviously, that correctly. Difficulty] of to timeline than period average. and our to Maybe about construction portion at information half piece long-dated of relatively last the longer

would of are be costs up we majority soft cost, that incur until smaller the overall a of the the and So construction percentage they CapEx.

of you – months in would cash shouldn’t contributions carrier that outlays that expect at be XX-month towards Most would actual process shouldn’t the to on XX receive time. that half have first expect of node and the being to timeline significant the a So the received. we CapEx then extreme, that a and just you back construct of be

months the not between timeline of booking XX not likely. and node is or the receipt So cash

David Barden

you thank Dan. so Alright. That’s much, helpful,

Operator

Please is of Stanley. from Simon ahead. go question Morgan Flannery next The

Simon Flannery

you Thank color down densification. Verizon T-Mobile on much. to carriers the you the once their already go on Great. for on and particularly you the wind and macro they help And the side? XG a with have the thank transition they pause areas us this into urban and macro phases helpful. was areas but on M&A? have Or any could opportunities of Have anything builds. long Perhaps densification cell as of like very related Jay, suburban you think straight thoughts starting up market Is it just you’ve That the on is put digest normal side? color always that do there point, the updated we antennas? any site scale, – out in a been there. a any are got what Obviously, it’s time inorganic done comments, then about since just

So latest I’d get just love your that. to on thoughts

Jay Brown

want your their Sure. to longer-term let comment Verizon question, I on T-Mobile. comment network them and plans. I’ll On first on don’t specifically

for I order majority point. the that comments, period our been have As spectrum be we They the the of mentioned in working touching vast on take about mid-band of of will of touched across are rest some for time think accomplished. those. the board, all in at are half obviously my sites of And the this carriers that to

X just touch spectrum. the date, about with years mid-band taken and that to done to long X the half been We’re to sites that’s work the into it’s just

of will mostly across see lot bands sites those business where haven’t that of completion of in each half terms during deploy the the Thus capital on spectrum the in similar think how of to my where So will other infill And activity what in saw and offset lot a made the movement looked mid-band capital, they upgrading I going the over in think a XG deployment as point they of how I terms period as XG discussions XG. pointed will as differently. CapEx. well carriers comments, Each think a start I is towards were were other X.XG, of we and long think of the a in the and we already to sites as we it the XG, balance and existing the focus has that we the the I far, of far, think to move are in about when deployed thus then and going sites. about overall you’re sites. relatively second deployed carrier generally movements up down on be see bit similar focused its to But deployment, a my – they time for thing see spectrum on of have the budget on spending XG start seen tower just little that offsets to network to

seeing, as as that business are that different think the in the we and combination as number infills our tower in both to we’re sites from what’s a previously, obviously, those small larger going alluded small nodes signed transactions well I of XG previously about we on to cells. cell come increase of that announced the

towers XG, is I we to the So the that to cells. beginnings those think XG unique starting infill of to start both a little we And bit saw the unique end of thing as use about about real thing accelerate. see we’re the at small but the XG, necessity of this and sites in

continuing about excited long at north year. a of similar excited tower think past that growth there runway this of to plus growth, site. in of tower X% forward level So our X% about our organic is We and growth

Simon Flannery

the M&A? on And

Jay Brown

Yes.

elongate we’ve increase change for comments our we On deploy M&A making capital returns focused the very the are made opportunity the at historically, no dividend on we growth. to and side, that sure that high

fiber way But at We in the of opportunities the thus sets have capital. at for of think use far, the we that the we’re opportunity looked decision best and the to what’s best has same has and alternative best small CapEx. it use for think We look that the that capital think invest that been we have as And building. deploy about scale we assets about been cells. acquisitions and that on been us We’ve chosen opportunity the to we in have made assets of based at. price front

and an continue growing articulated small the that interesting could we would And what open cells. capital invest – of dividend the we previously to to look, asset continue us for our met be so really return and found be if I about – will us but it excited and elongating to criteria to opportunity was deploy the we for growth rate to to

Simon Flannery

lot. a Thanks

Operator

question of from JPMorgan. Cusick Philip go next is Please ahead. The

Philip Cusick

Hi, How guys. Thanks. are you?

Jay Brown

morning. Good

Philip Cusick

Thanks for your time.

Just small on should are mix locations? of ramp? of think the to How anything do do follow-up And of many cell you be the will think some versus XG today? Thank half – infill stuff. expansion cell shifting overlay new upgraded start about when in done you small And overlay to versus XG you. versus

Jay Brown

Yes.

upgraded the mid-band tower half the half. of do think the On about I first side, X X the half the be will see to Took other of towers years spectrum. we second to to

long that’s on a take assumption side. that half it the think second probably to do of I that the So reasonable the will assets roughly tower

on constructed the overlaying are the same technologies geography. fiber, of that other nodes the to and per be we’ve well those will, along increasing technologies nodes commitments small were combination previously that in two a previously a mile, if as you as infilling sites think already with I cell on made given of with number they announcements upgrading

nodes, the with that We’re large the fiber. those co-located on talked infill majority of T-Mobile front. in on that T-Mobile the announcements about we densification seeing existing that nodes made the already committed and vast We’ve two were

would and co-location And sites combination and nodes, fiber. upgrades, upgrades of we’re then be the represent new a on existing about largely of where densification then a on the locations. and XX-XX new building Verizon So other mix those component

comments. continue will a we as see to think, we I in So mix our said

of will think that majority vast the on on will air be existing fiber. turn For XXXX, nodes we the

Philip Cusick

if the current projects level, driving about more think you. normal strength? is the or one Thank And guys. are do services, On can. a Thanks, of particular there talk pace, sort this I you

Dan Schlanger

we a quarter, No, work is And watermark high the I the point relatively will that in would pace, decommissioning second only I something pace thing where be some remarks because today. that said hit the pretty my we the activity normal comes prepared in quarter will with it’s normal likely second that a have Phil. are services but out

Philip Cusick

you. helpful. Thank That’s

Operator

go is from The James. next Please Raymond question ahead. of Ric Prentiss

Ric Prentiss

everybody. morning, Good Thanks.

Jay Brown

morning, Ric. Good

Ric Prentiss

comments. First, team hope detail all also segments, Thanks for Houston. the are extra weather and okay echo with on you Mike’s so but the issues the in the much

Jay Brown

a doing came were the damage storm well, the through well, lot of in city. We’re but there

Ric Prentiss

okay. want obviously, to you’re cell I to follow-up the small comment on a side, today. Great hear

you the going $XX Sprint I more should still small is item million of How was turn expect was $XX year many $XX think million nodes, were cancellation the previously, And X,XXX it had over fiber. that multiple equates said cells, then maybe period, they churn that total a million to? $XX million we case? to off a

Jay Brown

thanks. Yes,

stated, fiber calendar split The to we I’m there We $XX and expect correct. about year half and – those ‘XX between $XX correctly are churn and cells about ‘XX. of churn in segment in calendar would expected, You about of churn expect small million is million The balance did about be XXXX. of beyond. you in say solutions sorry, equally of that X,XXX, we year in fiber our

Ric Prentiss

Okay.

seems only is there normal long-term have our – that baking that a like Now should What we to of forecast? is that of level kind cell. churn small be we within like a level extra X% it into should cell details, small the maybe of think churn X% not normal

Jay Brown

that business, probably into right, consolidation near event that for neighborhood of hardly than in event. that’s honestly, I Sprint any to of not the zero low except churn other of think mean, to Churn in the I somewhere X%. the really has date, been T-Mobile. seen we have very Yes, X% or

term, I long like but think itself towers. So probably it plays – out

assuming model, thinking probably is long-term churn you’re right. your X% if X% about So of to

Ric Prentiss

other people. case? move from fiber interesting me, profitable of type cells buying and wireless Great. that has their And consider fixed question beyond look fiber solution for high-speed project mentioned small Internet an might and business they items. return fiber Is of where in talked be T-Mobile you might for profitable that areas about capacity a final T-Mobile cell, access the the been small deploying you’ve

Jay Brown

is It’s fiber. the A use of that have carriers our we business good with our fiber where they portion possible. leases

depending location-by-location very locations that But to could assets a T-Mobile it’s on analysis our were be So the case-by-case, would attractive that for be desire, to done. that. then have

Ric Prentiss

Okay, fair well. Thanks. Stay enough.

Jay Brown

You too.

Operator

go is KeyBanc Markets. Nispel Capital next Brandon The from question Please ahead. of

Brandon Nispel

lease Thanks you’re disclosures as that And in ‘XX. you to half than way us could this I leasing as second the questions. trending look half? other throughout at the appreciate receiving talk ask tower guys. down taking question was is, you Hi, core the through the any at Thanks. rate of today, point? the or are stronger hoping for of applications Is up terms And run first backlog new those maybe the well.

Dan Schlanger

Brandon. year. Thanks, The the numbers say whole I may imply towards would are rate impact very half, that run skew would the relatively but the the anything tower flat be well. to of not as a it’s much a is front at There little Yes. And all. that bit applications is through flat relatively leasing going

the how quarter-to-quarter. So model it to out if pretty XXXX, think in or to I’d I it’s through the – activity how leasing to and trying even you’re would figure levels say

Jay Brown

exit year, similar going Dan think leasing, with X% at as XXXX we that’s of October, what fiber business the in think in half a across good no heard we’re our tower seeing you and across And my to pipeline, of prepared second we’re small Your kind all we in growth area. back just we’re demand backlog, seeing fiber but about remarks, be so the we really the towers, the change going to from seeing comments on question what solutions three of in by my mentioned, year. back The this trends cells lines, solutions. talked

So but And the in quarter then we get of builds front. what a orders loaded had good we you ‘XX. half update small back not over obviously the ‘XX that across year. fourth cells, and we And see on as will loaded, level course

Brandon Nispel

Thank you.

Operator

Greg Please question is of The Cowen. go ahead. next from Williams

Greg Williams

Thanks. Great.

We’ve foresee cable. them any you to macro se, more coming the aggressive wanted question high? but deployment just Thanks. buy been And they and just strands, air in just Just cable on conversations a do on private any own and are stubbornly Does next remain they down here see facilities-based you choose dismissive comments multiples And on their se. on if fiber per to going than that but to touch down network CBRS coming on actually the and you wanted is Second cable? with imply of to fairly be that mentioned, the had there per is touching more rather towers getting more are to conversations quarters? degree? possible few that you M&A build updates

Jay Brown

haven’t you dense some asset last attractive And a cable targeted those that probably in we be of on for reason seen to the operators. us seen meet just the as count, question, that haven’t over your that’s criteria than assets just level, for for criteria have are and price. we will carriers in a of us, disciplined to want growth I meet have the building small the visibility to the the are lot long-term to it On believe our attractive needs anything opportunity much is a opportunity would to going we to remain a to that be from deployment have fiber likely And that increase our the in wireless be drive very of more years own. that we price. assets of In rather needs fiber cells. that leasing to market any and related It acquire or over see acquisition the it will we meet because see vast of majority second assets will acquiring from it’s we result believe say acquisitions the assets it to It’s On of to significant front, going a fiber small than, that Sure. our do those the question, why function we function that to on areas. time is own. think cable is fiber it’s to accumulate – rates I we urban continue a long-term cells. don’t going approach to growth more seen X your the for haven’t the high frankly, to need it from We strand that order first criteria would which likely fact want to have to lease-up us areas

on that see density we they our probably the small about will will that of macro of cell more and think We users. side. in of as infrastructure some places that I Frankly, the see given think to business, they population deploy tend

deployment it’s bands. benefit cable by will likely their from the using network of various more the we I operators spectrum that So, think

cable. sites, likely, long macro over small – benefit we macro will than see sites cells are think will we I see do from a time that We in to of more period are in but think

Greg Williams

Well. Thank you.

Operator

Please Del question from Nick of next Deo ahead. The MoffettNathanson. SVB go is

Nick Del Deo

you that sites have your been Jay, with guys. about towers spectrum, on the upgraded statistics. noted XG half morning very Good mid-band Hey. interesting

previous build that. is percentage any high urban the guess towers, to towards towers to before And comments suggest between it you rural see needs noticeably differences So, work more do made, to some thanks on that maybe with sharing across suburban carrier have co-locations? how number pivot your more what I versus the respect that starts I you meaningful to versus or of guess get towers board? does for in consistent more reasonably

Jay Brown

Sure.

of some terms there while therefore, subscriber by differences per And usage. think On of there a the as the that. location business usage, a has populated. central differentiation of and I districts areas distinction probably is less more draw consumer been not point, suburban basis, lot between urban, are about a it time, over network you The the densely on that reflects in would

as think business first deploy well we you what district. of a the see central there would part phase, dense down most the markets carriers mix when as the markets as of in dense the So, suburban are

We change. rural or see will see more for assets. Less applications that a the leasing that rural of of early to likely leasing – of deployment in us to early in phases those Less initially. see in generational areas both of kind likely

not seen of they provide need it how to their have your geographic do we how some So, allocate the that a infill, as go far to coverage. capital and start do of much. To before matter of part to is second it’s need they they the – question,

do of where the to answer the and traffic network part answer big that where improve is growth other really, that market-by-market. in a do the give infill It picture network. to frankly, see they holes not question. varies to need The to order And in are they the there is

they long where to X some of to think increase. knew usage to demand about were so need years beginning at started and devices or even cells small infill they were ago before already We started of the going very for years out X in small the they sites. launch seeing XG, and And started markets, infill cells as has

a to population of etcetera, there had usage, that So, an be in certain sites was they view infill on base, to customer geographies. their based going need

geographies, so And seen other that in we yet. haven’t

because healthy very will will that need I an so are So, infrastructure. see it usage, are But usage really it’s And macro standpoint. would is of be and seeing picture my not is usage. talk the what continue we And cells underlying carriers prepared that our by often seeing to I data question driver of the it’s in from remarks, data sites is that what infill an the both you give in is driven long-term for believe need data trend small macro of a – we why And that could big we answer terms the helpful. of in continue. terms that about and

Nick Del Deo

Okay. I maybe if one That’s then helpful. can. more And

new back, structure it’s tower DISH. years on over been had deal and unique a thinking component Just your to it. with little the since struck X fiber It side was a and you a

if just satisfaction you was to chose and on structure you novel in and comment the accomplish? could for force degree it’s been hope that your it’s that to Now you with accomplishing some time, wondering what which I

Jay Brown

them get nationwide say Well, network I are got know we teams are there. been very a they get get partner help first, have we would deployed. XXX. to that. on doing DISH to we I we about us, been that And have good XX/X, hard working of their focused can help has focused are hope on DISH teams to it everything people launched, our and that

partnership a happy and good expected. So, have customer. we accomplished are it’s to It them, with has what as been them a we

network network expected our that got that first fact existing locked benefit our them them around the their would we from up would assets. We mean that designing

share share of get of nature to have agreement network as we think opportunity opportunity deployment. outsized the We to have I And seen the overall we We deploy out. of the the that play an they believe outsized have continue them, their with gotten an network. our

well would thinking the than network us as the have deepened providing led and capture how So, has more network they And and said I and as our tower sites probably has the only. at had deployment part are towers to think hoped. in time, about out, relationship this to as of that exactly a had as played of what respect, we of the being opportunities we to our it understanding I backbone accomplished their deepened we able has that were combination of that providing with we if think fiber visibility

Nick Del Deo

Thank great. Jay. That’s Okay. you,

Operator

from Markets. go The next Capital ahead. Atkin is Please Jonathan question RBC of

Jonathan Atkin

Thanks.

think been or in to to in sites implicit with I of you your answer mid-band. state questions, have is less you maybe the portion of but of it’s of have upgraded XXX%, end that than there a one XG expect So, mentioned earlier sites do tower get And XXX% half that terms an the that’s little mid-band? to

Jay Brown

will pretty upgraded, to about that the to time, would but we way morning get yes. over Good expect, Jon. Hey. get will it XXX%, I close of don’t it all be network will XXX% know the exactly

Jonathan Atkin

And towers, you if of in on be, not, see again, amendments? between you year? us did then was? can did And what maybe then to you colos give versus end you just this just mix towards number tower the that split your And a that – what anticipate portfolio tell

Jay Brown

we are already is therefore, adding are Yes. my additional on. they added majority from activity And sites we Consistent comments rent to getting on seeing had. vast that of to the where existing amendments of they vast sites total around that the the with is that leases the equipment. we already activity The are are the majority carriers

their to of would majority We activity sites some of as the infill. desire a from But seeing installations vast the we first-time are are seeing be that amendments. on part

Jonathan Atkin

XQ of into in no XQ mix noticeable amendments, that know shift? from I change? pivot no terms it’s majority So, but

Jay Brown

change when we we didn’t seen we haven’t are them laid change out from And of in as expectations last in kind any of – October year. haven’t of seen any early year. from middle today XXXX, here we our certainly, last No, sitting

Jonathan Atkin

a bit that fiber just you represents, you any are lot color a the fiber, which the of the in others? wavelengths, – different that services. of way given the lot on, tenants, then growth of Ethernet, that as there and seeing around And say, products And lastly, are services getting business, that seeing, listed a products little managed us of it versus so maybe revenues give drivers what to more mix to you are demand traction non-mobile

Jay Brown

I movement of mean data growth overall that’s in our Yes. that’s business The – happening biggest hospitals. driver large driver focus And data the is the traffic the is those increased facilities, locations, etcetera. of universities, traffic, data for and there customers in market. revenue enterprise, in corollary. traffic markets, our drives is the essence, biggest what and the And offices, movement of their our primary among the mostly

Jonathan Atkin

And of Edge? years on a since and you thoughts pertains as far? updates Vapor update it’s of opportunities investments sorts any the traction, your gains announced to any of just it on the IO Lastly, been and number thus kind

Jay Brown

Sure.

And mobile as power. locations be And of our and cells the long-term out think to that have are got got traffic Edge. at develops. order develop the for Edge. aggregating small both optimistic ideal sites our that networks the will really Edge have towers continue I for opportunity. have are positioned hub XG opportunity ultimately to In work, We to capture you to have our you well around about assets connectivity, and for opportunities to like feel

cells follow-on the a I the a benefit see the to will ultimately from opportunity then around be lead with times related that the benefit small we to spades and heard will in Edge, you Edge. us the we will say think of it activities lot cells. activity around of number in think the small first deployment the probably And the that of

that that So, as mobile to when industrial the positioned that we – well applications capture edge believe really there. move we of and increased opportunity that it’s compute consumer when power positioned And as think level, data starting those does capture well opportunity. very well need the are networks, to assets to feel on materialize it to are the I both applications when level an be really as our used are like certainly

Jonathan Atkin

you. Thank

Operator

of from Research. question New final Street Chaplin the And is Jonathan

Jonathan Chaplin

Thanks the for taking guys. question

Just a quick housekeeping question first on small cells.

to of in So, like process. over ‘XX? through going and XX takes Like XX,XXX do to construction backlog a that next are to months XX X a ‘XX through suggest are get the this to you it it’s going XX,XXX, that years? and you months XX,XXX material of the go the course year from Does very acceleration the

Jay Brown

provide in didn’t that growth acceleration the done. guidance ‘XX But as mentioned start get think of cells. I specific we will when of in is my small we that We an on comments, Yes.

expect that does in to we year it acceleration calendar the an that beyond year ‘XX. So, will XX,XXX there imply nodes per do be

Dan Schlanger

is But would XX them be to I I an will in It XX or you months those now because now, not that caution wouldn’t – expect right we of our months backlog now from have built. that average. all

out. in make means XX,XXX just the It’s average, not go small that need rolls we to cell left, to the with average and XXXX, cite there order to that the would even customers is time in into ‘XX. it that nodes to leap I of business XX,XXX way do where built. takes get and and back we our some forth they as the be each ‘XX which so have And That’s not after actual an

Jay ‘XX it’s to said, acceleration, XX,XXX but nodes can as I year you ‘XX. and So, expecting would jump we be to of each caution against going an believe there

Jonathan Chaplin

sort more me contracting of within years sort color the complete little terms carriers today? bit of X years? cells a or are for out are really give isn’t it you of it small looking Can on in they X what Is why just X years

Jay Brown

two and multiyear commitments. commitments, were they where agreements Verizon Sure. those we the did with T-Mobile, When large made

goes that time. while So, would nodes identification we the actual ideas going process the expectation The an node had through markets location they identify use. over was what the to they were of on

And that rent so doesn’t while in to. contractually committed, will not it be we do backlog the it’s expect there, committed and speak

all backlog saying, of As completed and that XX say, that’s the you XX in was months. backlog will months take can’t why or Dan be okay,

Jonathan Chaplin

at to contribution And you? at do DISH contextualize state steady that have a point, then Okay. the Got with reached a what it. way this you And still accelerate to their for you growth or is could they there think moment? contributing is

Jay Brown

but think of away network of Well, from that in specific their and their cycle. customers to stay any contribution, in being them giving will benefit our the deployment see the of of sites of and sites do we with level their we and very network, I best specificity percentage number DISH their really to among our the continue where they to are just number let deploying speak

Jonathan Chaplin

me. for one last then And Okay.

or the per You with is moving is about sort then of the first spoke deployment. big site. would the of to. And sites Xx a phases revenue sites phase amendments the assume, just and lots the Xx three next phase of sort fewer of bit I network of

these work the number period is of first in the they are through weighted or get phases, third look just through sort growth of towards phase the the sites you that the second touching? similar the phase, is phase as you it the phase multiyear because and As – revenue first that and the heavily you of

Jay Brown

and revenue stays been experience Our stable has phases that growth relatively those various over similar.

growth level. grow expectation ties that long-term to As about maybe think of sustain that little think growth a we target We – a above long-term the also in being the X% and X%. It bit into we our our X% we able to can stays towers, we have time. period organic of said that around for talk of dividend

So, runway we an driven of think that by that’s is line top there opportunity. elongated growth

excited to both that towers growth. we for and our our and look opportunity kind assets their about line of phases the we at we think businesses. see the three as And consistency various networks we the of all through to the our in, that of deployment, go additional that cells, the we lease good current and environment top from the about customers are carriers demand we excited extends are improve need growth small are and the to leases really ask seeing and on runway where of of across As

Jonathan Chaplin

Great. Thanks very much guys.

Jay Brown

able as You bet. for Well, everyone want on what I to we already thanks for help joining. everybody are is the XXXX. Kate thanks we focused our realize thank really your wrap I this do on team morning. up difficult opportunity to pretty I call our to the done to for want year. a outcome congratulate did a navigating in the XXXX, great in deliver take XXXX, course over some to through team challenges but of the well job

job customers, appreciate they it. great I a did our all know You for and

forward in and ‘XX, look do we everyone So, to talking quarter. thank to will and you to the about team what next excited

Operator

The you conference has today’s for concluded. now Thank attending presentation.

may You disconnect. now

Crown Castle (CCI) 26 Jan 232022 Q4 Earnings call transcript