TDS - Earnings call transcript Q1 2024 | Telephone and Data Systems, Inc.

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Operator

Ladies and gentlemen, thank you for standing by. My name is Desiree, and I will be your conference operator today. At this time, I would like to welcome everyone to the TDS and UScellularUScellular First Quarter 2024 Operating Results Conference Call. [Operator Instructions]

I would now like to turn the conference over to Colleen Thompson, Vice President, Corporate Relations. ahead. go Please

Colleen Thompson

find thank make and prepared joining We UScellularUScellular you us. accompany of Relations Good TDS the aware you of to and can which morning, you comments have the the want Investor our sections morning, websites. this for on presentation to we

Officer Chief and comments Executive With Chief UScellular, from Financial prepared TDS, Chief Officer; from Villacrez, and Chambers, Senior Financial being Financial and website. Vice President are President TDS Officer. is Doug Brukwicki, Executive Treasurer; Telecom, Michelle Relations today President, the and me offering Executive TDS Vicki call Vice Officer; LT UScellular on from and Vice of and Chief simultaneously Therivel, Investor and President Finance webcast This

website including amortization, slides to this amortization, for releases partnerships. press filed their for contributions provide guidance SEC or on to interest, and of non-GAAP UScellular and and earlier UScellular's or before adjusted earnings We X-K, XX-Qs taxes, the the operating before including call, both Forms our morning. referred depreciation OIBDA, EBITDA, Please this income depreciation, the TDS reconciliations. see highlight wireless adjusted

on Slide presentation discussed about information in in press and risks included our this the harbor set X, forth review safe and that statements and releases in paragraphs version expected our and call the contains financial SEC events extended to subject the during future and results shown forward-looking As filings. are uncertainties. the Please

And with to call over Vicki Villacrez. that, will Vicki? the I now turn

Vicki Villacrez

and Colleen, everyone. Okay. good morning, Thank you,

in UScellular, say that is process at and review strategic a the best and company comment ongoing. August embarked and Boards, remains reiterate unable I'm it Management for interest once with X shareholders. alternatives that our on time, at the path announced on the both remain that TDS talk to the quarter, of of results UScellular. a I again Before we we last of except on year, to about as committed along active the to this want to

expect to the concluded. Given nature of it's until updates process, have don't we the

Okay.

perspective, the that at let's the and year. improvements quarter, pleased UScellular I'm beginning in fiber and growth both about focus their target ARPU cost a is network ongoing on our TDS the same investments maintaining and costs set in of both the multiyear business top talk are improvement prudently at and are capital to Now OpEx notable our in Telecom allocating business consolidated the benefits of our that towards units in while nice we results. year-over-year reported adjusted profitability EBITDA discipline. time the delivering bottom line From technologies. showing critical addition unit on are a both CapEx our advancing with realizing investments

at track. footprint, our mid-band on remains At and UScellular, rollout are fiber TDS we expanding Telecom, our

As Telecom's program. facility borrowed entered we million $XXX of advancement proceeds this corporate TDS $XXX the morning, for announced into purposes, and at TDS a million will including general fiber unsecured The used be build debt closing.

and working. both investing TDS the which hear the is fiber in strong will the Telecom's expected, Telecom on as you speak strategy is keep program. As TDS to bottom Michelle us reporting call confidence top later growth fiber gives line,

environment. favorable increases XX cost with to in long-term preferred is overall TDS' debt weighted of and X.X%, current borrowing the average equity which this basis rate points interest

flexibility against to current continue of long-dated historically will execute our at maturities a which and objectives and provides all sufficient through issued reasonable interest rates, balance combination longer-term sheet our liquidity, of manage debt We operational to strategic low leverage goals.

turn will over the LT. to I call now

LeRoy Carlson

everybody. Thank you, Vicki. Good morning,

our quarterly you highlights. X, Slide to turn you see If can

of is results, plans. lower-priced delivered and ARPU effective our approximately up growth expense gross discipline. X%, postpaid rate strong we driven which XX% handset can over our you was elected the by past have Postpaid year given ARPU As bottom flat see, line solid adds that impressive

been has compared of offer 'XX they're the of but increase our overall our rate contributing our legacy handset therefore, unlimited at XX% X higher-value year to those move And reminder, economics flat a and, plans yield to to on customers continuing not we as tier lower and plans. the have customers richer eligible end as plans, top tiers XX% our to they A ago. similar a pricing, device postpaid factor March for our promotions top ARPU our and

also Postpaid X down basis churn points spot quarter, a the was in year-over-year. bright

aggressive saw in offers in retention Days the During you as results promotional program, mass throughout see We quarter, retention our through personalized as offers. to investment from and year. Us retention this can well solid we pulsing continued rate expect on focused new

of and and to gross some recently a trade-in continue assess made our and to first to and promotions adds as assess was while we're promotions. to QX, to the total decline necessary we more it and improved plan expect the on in during our changes, significant fully of drive some quarter, add encouraged driver be requirements these promotions impact time the in by a lead takes we've And the handset challenge additional remove adjust Postpaid of subscriber a to early results. year-over-year our results, made the available subscribers. continue in We changes challenges changes XX% gross pool

wireless. cable Briefly on

be our are device XX% beginning more to currently frequently. of now offer in mentioned footprint. market while And products, which mid-single-digit broadband calls, competitor with handset that share become they they're have of compete a and our winning area, our formidable promotions wireless in they've I As gross offering by footprint. share the about fixed across X/X adds can about a across plans postpaid against low-cost past of We cable bundled

the believe offload wireline means We approximately same bundled can offloads XX UScellular. for wireless they we cellular, this of that's even goes usage Higher we make future pricing and and potentially on large on moves dynamic well more to their ability the and to their estimate WiFi the to as WiFi, believe profits upload with aggressive promotion. percentage as they their estimate of means And cross-subsidize XX% than lower to traffic points higher carriers. other XX WiFi the

Now we're show we're and with returns while pricing effectively, competing constructs sufficient invest great right to our we network a remain ensure we our promotional the generate in have but provide experience. customers to competitive, to churn to going need our and results

subscribers. prior We have grown with XX% wireless. compared quarter fixed by ending quarter to We've another subscriber the strong year, in XXX,XXX this base the

net Prepaid XX basis improved saw rate, our in churn we decreased improvement as prepaid year-over-year losses which points.

those reduced lifetime churn the and our Over our economics the prepaid we and in distribution, prepaid we customers. and results digital our efforts of past our improved of made to engagement, enhancements expanded we're year, seeing

guidance in networks, a in of decision-making advanced Just private for and latency to business looking applications, number the near some help manufacturing in a see network or space, and and our the private XG to to already particularly Rockwell lower particularly applications. within to of use is partnership provides enterprise capabilities private deploy using lab. touch customers cellular opportunities innovation, their with drive of real-time forward. a and lot with and We've we on deployed through XG real-time space XG enable seeing bandwidth recent One cellular going their connected utility the those Automation higher emerging the network examples example partnership. a interesting we're seeing is cases, Rockwell

solution announced revolution patent-pending to wireless connected recently that with example is and an really need secure we're privacy to pleased our deliver a they architecture part keeps securely Kape a partnership experience And and protects that with security, with there's and ultra-private offer the Kate, and heightened data. being people innovative wireless of wherever MVNO Another for lives, as customers' mobile they our using differentiated are. everyday partner a

Turning the to network.

of we're where end track the of to we deploy correlation percent we're we're results seeing mobility a Net on is increase cell pleased data Promoter our And strong this sites traffic. and we and have and that that our is of by handled both delivering mid-band perception deployment XXXX, seeing the value our the mid-band. I'm mid-band almost Our a to in handle a on expect customers. Score, about in with and network wireless By network excited our higher both mid-band corresponding fixed the XX% and traffic of

our in even deliver results adjusted his and we our optimization strong segment, by as pleased increased profitability we're but to respect results, face I'm challenges. the our quarter. to delivering detail cost of financial XX% the in will some Doug that with Finally, program OIBDA continues our additional with subscriber in financial provide results the

country, many to rural not obstacles a in renewed. divide footprint. divide, the created in BEAD affordability and infrastructure A to brief help in I've customers. the that's provided program there's them. The the digital really investment. particularly that bridging past infrastructure, disappointed remains was to spoken and may Program Affordable find support And help initially in to our support this disappointing investments for Connectivity Washington. with the couldn't And still people close many but X affordability and digital a we in note that ACP was the way that on fund we're America, XG It's challenge

that minimal, Our discounted committed to to connected. continuing with plan to they're but serve and customers, exposure special these them ensure we a we're is relatively offers provide to to have able stay

our matters and each call their Before recognize work most to customers connected and our I exceptional day. to associates of I over hard Doug, what all for helping the towards to turn want thank dedication stay

Doug, over to you.

Douglas Chambers

morning. LT. Thanks, Good

on I results, quarterly to the quarter as we churn and from you CDMA prepaid sunset of network their want or the of shutdown, and postpaid the infections that the the still were time X,XXX dependent this to remind go These we in first results. XX,XXX not respective removed At in bases year. customers Before we are January connections reflected network. the had

OIBDA savings be run in CDMA operating rate in result XXXX annual million accretive beginning in We and to shutdown expect network expense adjusted the to approximately XXXX. $XX to

of Internet were quarter, a net Connected the additions to down Let's in a hotspot churn. decrease on competitive wireless due up and improvements churn due Prepaid to X,XXX were higher in net the reduction in well pool slightly handset connections as gross XX,XXX review device LT. improved for as additions postpaid mentioned, due Correspondingly, decreased LT fixed intense Postpaid handset by environment, losses net the improved discussed for demand XX,XXX by Slide available by customer home XX% customers. previously as XX,XXX. additions the results to X. prepaid

on primary starting quarter the revenue Total turn as service Slide in drivers to X%, X% declined offset results, ARPU, LT Now the by declined financial base XX%. operating of the higher subscriber revenues equipment decreased sales for revenues as are postpaid and previously. a postpaid declines X. discussed service lower partially average let's The

as devices lower an by to increase a offset as was declined customers in plans decrease devices gross a decrease demand as which flat sales not partially per for more rates additions customer a for and expensive sold device result and discounts. eligible of as are smartphone in price due decline upgrade corresponding with well industry. due for Equipment is sold upgrades, which in unit promotional in rate expense of price to continue decline the equipment consistent in sales The levels to opt the higher

results with business Slide to Tower on revenues, represents X. in million Now Tower turn growth. The third-party solid $XX a let's X% quarter delivered which

last industry As we revenue in Tower impact revenue opportunities wireless on the term, the short quarter, will growth moderated has we Tower the the which of noted business. are rates bullish but capital long-term expenditures,

our operating XX. quarterly on performance Next, to let's Slide shown turn

refer to operating income. and as before I income adjusted discussion, operating amortization will depreciation this For adjusted

X%. operating mentioned, I revenues As declined

to decreased X%. a sales XX% as transaction, compared was decrease expenses of previously of transaction equipment this result flat year due promotional of volume rate adoption or higher of cash plans, prior partially discussed. cost equipment lower cost However, decline of and by as lower sold the per offset to Loss less a equipment in

expenses, decreases by increased second Selling, the expenses the administrative increases income incorporates these upgrade data to in XX% volumes, million up method decrease partially income which gross the alternatives expenses X%, which with to decreased XXXX from Both slide, and both to partially amounts along related general as reduction review. expenses adjusted and LT add operating adjusted and workforce $X sales in increased our by review. EBITDA, strategic exclude and and quarter attributable in includes alternatives offset to this driven due equity X%. lower employee-related interest earnings adjusted of have Wrapping to been our of investments, dividend mentioned,

we strong XXXX and deliver mid-band network impacted increases the positively across expected expect year initiatives full in program our Despite service XXXX deployment, declines all optimization cost quarter the to second remain margin our adjusted be in a revenues the savings cost XXXX. in shutdown continues income for that revenue full Our from from areas profile CDMA The of executed as year the and reduction operating full result is year ongoing relatively cost of to XXXX, percent the by service first expected flat of our the cost business. XG of XXXX to in force quarter results. of

excellent Our and this on associates drive focused executing remain identifying XXXX have done these to we further cost job an savings. program and initiatives, in

decreased year, each the capital the of period. Our expenditures respective in same timing to last compared expenditures partially capital to due period mid-band

we expenditures than In year addition, be and toward XXXX of the XXXX expect full lower the our capital range capital to end for expenditures. trend less guidance

our as financial issued the we on remain from unchanged XXXX in financial XX, to remains Slide this on year guidance guidance shown of we our track plan. As February

call to Brukwicki. the Michelle over turn now Michelle? will I

Vicki Villacrez

Thank and good everyone. you, Doug, morning,

Slide to Turning XX.

TDS working. for that highlight As fiber is Telecom is Vicki the strategy our mentioned, key

significant financial We our fiber made to of the those strongest our starting delivered program. just in we've are and reflect our years, profitability revenues since investments and several past results program the quarter of investments. our starting fiber benefits For

fiber expense management, in revenue our Our and with adjusted increase in combined produced EBITDA results, in X% quarter. XX% the disciplined a a increase

results, continues this that with annual XX,XXX deliver fiber marketable fiber to team cadence quarter. We're to on shared addresses the a you In of addresses track in service delivering strong with to our XXX,XXX marketable February. addition steady reach of goal we service financial

we addresses, As in broadband in those a we fiber first we achieving projected XXX,XXX expansion are addresses. our deliver penetrations successfully milestone, residential these business major broadband selling the cases. markets. exceeding into In connections are quarter, our Overall, we also reached

Moving XX. to Slide

You we're at scorecard. where longer-term can our see on

reflects X.X total ended XX% with service targeting way fiber targeting served We well with the million quarter to through as quarter markets are addresses. ended by the our of markets. as expansion fiber the growing marketable addresses We so This in X/X we're We're service We fiber. of be XX%. up XXX,XXX, also fibering our incumbent our progress there.

to At refer the higher XX% addresses with the footprint. at ILEC as We expecting of And were quarter ILEC. speeds X we quarter, of speeds. offer our this finally, We XX% to or to our our finished also of the end fibered gig gig up. XX% least are of

growing On our XX, a year-over-year. Slide can see you addresses increase are with that footprint service total we in XX%

broadband see year our or right demand ago. speeds, As XXX the are from increased the -- megabits shown taking on up for XX% of side with we second greater, slide, we a of higher customers XX% per

gig XX% We the speeds of increase availability quarter. continue our of to customer Gig+ Customer the speeds. on end the take rates these higher at are X of of growing, base or with

Our broadband meaningful results. investments are driving

mentioned broadband in call, focusing during new as we expansion and XXXX, on executing planned. markets, we are I the penetrations in last our driving As are

growth year-over-year. in As to in connection in our on the Slide contributed had broadband shown markets. broadband net residential which we adds quarter, X,XXX expansion X% XX, broadband growth connections see residential strong We

base even customer to experience. and our into enhanced available, will program We our get protecting A-CAM also more to continue a markets ILEC incumbent fiber providing customers. The customers convert serve see these where copper fiber to better

per revenue revenue growth connection increases. due primarily to revenues. in broadband per residential And in connections price X% with we Average XX% up saw increases and user, was residential

expansion markets compared a of million $XX year million the revenues Specifically, $XX delivered residential quarter, in to ago.

as our revenues decommission the expected, CLEC markets. quarter X% decreased commercial As we continued to in

incremental program. receive started the to revenues increased to due revenues Lastly, the under enhanced X% A-CAM wholesale we have

by decrease XX, the management were partially in you commercial in in to a the the quarter revenues. expenses cash for Slide was residential performance. in Strong Operating in On expense quarterly wholesale growth quarter. led X% can as revenues decline revenues X% the up our see offset

last with nice in are revenues this along were Capital seeing grow, quarter, and in growth we up adjusted As management, million in cost disciplined from EBITDA, the our down the quarter. XX% penetration expenditures $XX year. XX%

Slide which guidance from with XX XXXX you February. remains we in shows shared our what unchanged

increasing growth year this We our plans bottom our line in and are penetration both top effective fiber cost through and confident management. for

are pacing profitability. CapEx, to in year we our spend to committed line with capital Turning our this

expansion the the both A-CAM are For and the we balancing program. fiber next enhanced years, our program of priorities few

We our are pace that's financing meet engineering carefully them also to planning commitments at programs capacity. progressing keep to with our build both and a commensurate

want of on their our strategic focus I thank priorities. TDS closing, to In for associates the Telecom all

entire the results This hard work quarter's strong reflect of team. our

momentum quarter, after excited have first the good We to I and ahead. be continue the opportunities about

now turn to I'll call the Colleen. back over

Colleen Thompson

Okay.

We will now open your to up the questions. call

the taking the be review and on strategic first As quarter our a on question. focus for of questions alternatives for reminder, we're not UScellular. today, is ready Operator, the we'll

Operator

James. question from Raymond Rick [Operator with Instructions] comes the line first of Prentiss Your

Ric Prentiss

A couple questions. of

the we just to Doug, company and to if about LT, quarter, and update a how there's business you the the create industry anchor that Tower First, obviously, last last you go I in, thought? wanted think said were about or phrase. I of Any talked talked this growth, you quarter, contract segment. reporting you create tower moderating. tower on but think wireless bit your little Tower check was segment couldn't an kind I between back, business, the is the

X%, debt against what on, thought of vis-a-vis over back associated sure maybe Vicki. range? are would the got the particularly the recent which -- you which you the have, has in And Tower problems an I'm you on be but that thinking most can't question you SOFR be then And go front? you what about segment, to lending Have XX% brought to plus on is

Laurent Therivel

around at. something your towers. It So continues look segment that I'll reporting to first take be question about we

towers. things to to provide in questions on more response to is others do tried One little that a we've both the and of your detail the bit

I we're about we've noticed that as forward. that moving to of back, it's things slides is it's one our of My continue to the reel try to mean, great well to not you not as going level in back. again comments, a that once idea that to provide certain comment see not information, and can do going start You us

And want of things be want so to to the disciplined financials. to one detailed share to start we when is we we do deliberate, be want we more

consistent bit work seen that. continue a mean, through to trends but you remain with we towers, to providing on detailed towers, way, an what it. date those expect in I'm you've On delivery of quarters, financials would on I little broad more going stop coming The I that quarters. past see actual can the in they by short

So near term, us heard terms much, to continue in not But we from that capital last too overall reiterate industry. what across quarter. of you to see slowdown the spending

And seeing bit slowdown a new so and colocations a in on. and we're so of applications in

X run, we for remain towers those really Long reasons. bullish on

The densification. into be as to stream have of X a It's driven right be by driven that's X to first you network future of to going or is, going or And not be driven whether iterations the does authority more advanced things. going by it's as get Gs, XG by you know, it's now. spectrum FCC,

that's think but their spectrum in where long NTIA new their they're right auctioned a mechanism put new to appears plan spectrum has necessarily place, problem. nonetheless, a a sharing there's I time. to to a off be not be to now for we have But that's focusing efforts. do Spectrum work. targeted spectrum

to on that's towers. means new is you will And to news XG, if so you're towards that need good to spectrum. be go And densification focusing going than what for on more that you're going

our colocation we're low to players. remains overall the increased time. some on reason the is it this rate other over long other relative of bullish The just We've in steadily run

grow. of still with a momentum. So the to We I'm lot pleased room have

not come, optimistic financials sure let [indiscernible]. more And to to turn when. me the for you detailed so broadly Vicki, on segment, but exactly

Vicki Villacrez

Rick, it's program. purposes, the first done let Yes. borrowing off, set. TDS This And advancement corporate at general was Thank fiber level LT. of for but primarily largely level. for me just the you, our

you the price, it's think expensive. I So commented on marginally more

flexibility optionality very here Telecom's program. structure, interest the I today, points, basis as excited need average our structure, is got in fiber X.X% advance we year. continue cost and our rate and think giving that For to ]. It's we it's weighted about fiber need first by demonstrated that -- for us the the it's increasing that -- capital but that's the that grand our what of this XX scheme of to sure, by high just out Michelle the heard strong talk TDS in to I'm [ the debt well total pleased it about X.X% they quarter, growth with for you program, in the as themselves We're guidance as environment,

Ric Prentiss

Michelle as you penetration to in the next the costs in, as the for TDS well, X you the a CapEx? What fiber guess? in working, OpEx which, different coming year, look would speaking said. low of And already XXs OIBDA would hopefully, quarter. this $XXX put see have Were costs expecting what the hopefully, for down cause are demonstrating on guidance you mean question rest maybe as strong been is Telecom, slow The we obviously, of OIBDA saying, on million numbers at we year, million, spent up line really quarters? kind some for gains the the that I $XXX and EBITDA the be pacing to continued I that for

Michael Rollins

question. compared first to XX% the with that saw Yes, we EBITDA last for adjusted in thanks the increase year. quarter. are really our The we pleased Rick,

of the telecom management result team is very of a result focused expenses. increases, and revenue was increase also that So diligent but a on it's entire cost

really cut back. advertising and just the our when our and that when in marketing the and of to be those right very of prudently in being to time to benefits So And spend. hiring things finding markets prudent with entertainment our timing we like just need ways time need new travel of in optimize very like we to expenses we the are trying of terms for spending resources,

doing throughout is a year. and it but the there some happen coming that the that's see So is of great timing. managing element an our at job going there is cost you're costs, management We're to

to adjusted you for $XXX very of first $XXX But million, to million through So XX% $XXX expect midpoint adjusted range, And that a increase we've year-over-year, reaffirmed is year. range carry at at increase. mentioned. our point, EBITDA which that million XX% don't about probably still implies in at that the, entire healthy guidance the we that quarter, EBITDA range a the see the this

point why we're maintaining our that's guidance So where at range the is. it

Operator

comes Michael line Citi. of the Rollins from Our with question next

Michael Rollins

have operational an strategic a then and question I question.

So first, the for operational question.

strategic TDS Just to or wireless if offering on curious, wholesale And the and the back the potential And a fiber postpaid contemplated of to penetrate going with business, retail from have share side, on push could strategy, effort and broadband to continuing neutral curious to the TDS access I'm you the churn timing around adds market? turn positive you forward a at perspective idea gross the push business can continue path it's providers, -- then trajectory. firms you that as forward condition some on additional on the share get the and other phone other add a gross to whether side or you're to the the phone subscriptions? side, do on to help

Laurent Therivel

I'll Mike, it's question LT. and probably question then wholesale Michelle hand about to first fiber. second take to answer I'll the and your

know. So both by improvements net to needs adds and I improvements be I'm gross in you adds. the positive to churn don't telling not clearly, anything driven path in mean,

really I'm churn. with improvements churn. Let's start that with in the we've in progress made pleased

see As pretty the you in is quarter, can churn down significantly.

driven upgrade as first taken some it's pool we've quarter. aggressive the in But down. by One, things. the as driven well actions that being driven late pretty being also both think last that's by by year I it's X

we a very I a adds. upgrades positive to and come So the More help that back Day, seen. drive the in think take set reduction. get back I to small the offers help weeks. churn, churn. contract them off the referenced reduce this of, churn existing run And driver of in that about down. success It's X we is we customers program pleased to ring better really for and contract get can path over the that devices upgrade the thus we've element this churn their is advantage in contract, Special Us year -- We're to kicked it to of customers and biggest lower in net to with

element second around improving is add. The gross

the I for that think, available slow, the really perversely in that in my quarter back but mentioned COVID, not subscribers in right? XX%, drop since done down and getting a few to by I overall just I whole, job carriers First and driven One comments. a industry Probably seen, UScellular, a as The positive things. pool and slow customers that's think we biggest good I've other slow contract. of is have that

I think people are satisfied.

services. pleased they're I think with their

just so people churn. whole. also And not of many over again, there And aren't that's us, period done a are as that we're being the looking industry offering to Those that's time. contracts longer as a

with price of of is done quarter first the the The end that is get the here to trade-ins. on other promotions, a in piece, X And though, the aggressive network we've lot got you adds back is the right. gross and more if equation around you're going postpaid to particularly quarter go have we drive things the

planned lifted and very improvements early second on requirements that And those trading requirements the the going lifting the about. of those we requirements and trading plan we've first end I'm back and by quarter, requirements. into seen So optimistic some quarter

continuing And late if the maintain churn improvements And quarter meaningful momentum we're so that into we going so you so together, can we've put seen in those the to things in April. and see far far. that seeing

overall heading we're think of the net adds. in terms in direction right I

into one that and in it year, this up show go increasingly the dynamic, doesn't has I though, so business much the do and I'll an and to net be next, of we as into as adds, into other one the really overall segment. but with think back subscriber highlight it's meaningful to second end half going

the use Fixed consumer. It are XG doesn't cases is sustain wireless One with we've itself, business It capital wireless. it's interesting difficult observed great things a doesn't fixed pay your to not new to the that of past the for us, necessary. for for coming pay the we've is right? in up but about really talked

cases And is to so and XG help to those use above positive need and what consumer monetize other find net over adds. we just that

and revenues business And business key. are use cases

with we had and series in did and So I been of did Cape. a what been I referenced investing We this with around We've our solutioning around in distribution referenced business. flow. business investing we segment. Rockwell, what We've IoT the interesting deals

XG it's think video, enterprise in investments. to XG. run, help paid the long the going those XG be because with for Mobile, much for will I more pay than investments

XG. for going to to need You're pay enterprise

seen making So already I results. on top that getting those so improvements and more in we're seeing by just enterprise, promotional, some and the fire we're not around but investments hand Recent think We're how think on side. you I me you it already. path the to far put of attractive, question that gross in layer improved you towards we've also wholesale things Michelle, a let churn answer our more a to subscribers, of attractive in financials. overall together, thinking adds more have about

Michelle Brukwicki

for Yes. Thanks, thanks, and the question. LT, Mike,

a certainly the way we thought opening about networks, building we're there's with at we being that, ways where that's work like all these Mike. terms for in with us wireless things mean If for to leverage to we're yes, it those and not our towers certainly do wholesale and do point. of different We have a provider, So I to fiber fiber networks. But going that. provide this companies. up

on to our networks. those long-term our networks to customers our serve business is own model, Our vision, and

And that that at job can customers offering really competitive they we a services need and want those products and the them and we prices. think serving of great do

in And think do so that we very high-quality way. a we that

we're networks not others. And up considering so our at to point, this opening

Operator

line Next with GAMCO Dluzhevskiy question of from Investors. comes Sergey the

Sergey Dluzhevskiy

competition with cable. for LT question My is around first

as Obviously, you're have your So are into about you're cable aggressive. They even industry. which footprint. said, to these with competing larger across wireless companies been X/X you cable -- the quite of -- doing in larger responding players who

effectiveness past cable, this So to improve for specifically its quarters And this the sell position better with you you or what medium provider on in in based environment, regional could experience? over what has few term? the your working competitive over of been competition

Laurent Therivel

I is know that the bit -- you the mentioned first mean is the in in these which saw cable in the a we Sergey, is of put the facing I out with intro. that with yes, days, so But numbers, wireless subsidizing LTE interesting we're I something players Europe wireline. challenge

to we've wireless a And X free subsidize pricing the wireline challenging on the perspective, line a right? business. with a from using for Verizon profits network. to dynamic talking In month some against about in cases, fight $XX so you're $XX for unlimited help year, a So marketplace that's cable the got

pricing fight against. a it's to so And dynamic challenging

-- offload is their dynamics. Then I cases, than In higher WiFi mentioned ours. the much many WiFi using they're offloading

And so cellular correspondingly, of their is use the lower.

we do industry to do At network competes what compete? So price. and its our still core on

of lot business you the And the can can we're and wireless so thing with with things that about bundled you compete bring do a cable, pleased -- against lines. wireless that I'm against and wireless, one down doing of So of that is is customers price our the very right? the fixed those first bundle come of to fixed success the

go the wireless business our is kind so of a speak. think success so the of one. being to at them, And on fixed proof around their fight And strategy that war turf, I back good

the as paying that think is you're sure that and your you attention do make customer second to you a base you're existing insulating I can best of lot thing can. them

up, dynamic is successfully down going and churn in-contract consequently, our around good rates rate going our is another with cable. so compete our to ability And

run, to share is referenced, is of much very In long market a term, to economics. The gross industry, is their I if long the compete I owner's have also think our than don't that medium adds game, got share. they it short you higher have third the difficult that existing a piece, right, they've this In Sergey, is right? in

there's so high-quality network grow. -- help factor room to to be the And still experience long plenty another is room of you compete run, able insulating successfully. to really a investing in in But

quality so mid-band, we And we we network. that we XG to competitive And high invest highly and have speeds, to making a have sure have behind invest. behind have invest to a

just cable of And They me compete best can the and in run aggressively. is way room wireless think player high but we have compete grow, high invest plenty we so against in to a to your ability low as players. the the also prices, quality not to in wireless but speeds long to

Sergey Dluzhevskiy

Got it.

on Another question is towers.

or the the lowering improve And business next maybe objectives could But trajectory? what I years. that you maybe to depends term. revenue spending what as If the objectives X year over you are wireless guess, summarize deployments opportunities plan, your lot the a the the environment, environment years? current over the capital few that in next this impacted revenue for near overall this primary for Obviously, of trajectory mentioned and Tower are even in primary companies, the on mid-band

Laurent Therivel

Yes.

So Sergey, let's terms frame. a time frame bit it I X- up X- little chunk X-year X-year a versus -- to call would I would to it, time in a of,

X is next colocation easiest to to of mean, objective to X the revenue. is be years, choice. grow a way do simple, partner And I that it's the continue the For to

those continue place. in to those on up other us. we ones able with to talked in so assets towers And We've already towers the that aggressively, the colocate market potentially to people we being have about to past open

colocation improve rate years, much operators. objective. the colocation so. is We to we for so in X, there our new and continuing will probably much that do next how well to positioned are The. Challenge activity, X activity rate tower colocation how primary And think be build is

a we've built as and And in secondary is in something term. more broadly. we're not to that so tower focused healthy years, the we're just long kind there's X sure to That's a but business. financially objective of that next business which always the make X for on our

let's just long-term others on year weather it, I back and not operators, a capital. trajectory feel storm about but bit pull the as of to, our kind UScellular, so of the call or the little ability next good X And

see positioned to in we is we're miles, little a another X a miles spectrum call, going densify, of in portfolio, in doesn't cases, X come tower. think for within our And our they What tower densify. I earnings if have bit of answer question, are to to its be large we've have if very frame we how good a about mile, many portion want operators my Rick's tower to as when, more X-year position. that we to tower shared past a portfolio, X- talked online, don't time In

X not have it. towers these our you and Most next don't these one situations. it's situations tower there's So where have of of another right to one

price. very difficult yourself it's other by so to And than differentiate

densify In we're really portfolio that some well to rural our And have location. think is America, differentiated case, competitors of as our we into situated. by

we run, long on some attractive the really that. in growth so see And

line and So rate, profile call and people's next be let's other can top year tower even metric for we when be term, densification potentially healthy or Long colocation the support invest it would expansion financial overall a revenue growth X. would the to it efforts.

Sergey Dluzhevskiy

Great. it. question And my for Michelle. Got is last

approach keeping mind you your you could building priorities. in in an lower a if ago, prioritize is think factors ILEC talk I think you quarters few markets. respond you highlighted provide you in your overbuilding do could in build, you a fiber build, kind XXXX? to And and Maybe if also that how pickup activity overbuilder, the how where your typically your of about now, as update situation you an other about

Michelle Brukwicki

question. thank for Sergey, the you

individually. investment over gone spending if also yes, significant markets. our our a markets. of the we our But into amount take balancing last ILEC been expansion years. heavily put So into fiber certainly have We It's kind we've markets few of

this are point. ILEC fibered So XX% at our up

goes in our spending properties. this areas that because a got way ILEC year lot So At we're defending a ILEC our coming. not of in A-CAM the we've markets moment, long to

take up fiber So can in our we're That's on a our getting this years. more our year, focusing well. builds and over lined we'll lot plans be into going as those few fulfilling that commitments next the start and engineering XXXX, ILEC so A-CAM going to

to And of mechanism serve that many last all going of ILEC last great on already as really. like the ourselves investment markets years, defense decade, put another the we've our in that is top in the so over over

plan our ILEC. for that's So the

is is into with But our being possible A-CAM in happening competitive with going is and overbuilding areas preemptive as There defend to of ILEC, our ILEC tried possible even we fiber have to that the present. as help as our as there enhanced certain further. that quickly much fortify in program getting certainly

Operator

There call this are no time. over you. Thompson, further I Ms. questions back to turn at the Colleen

Colleen Thompson

and can reach out additional everyone, today. Thanks, if the for a your weekend. questions, close Okay. we out have to great time you call. IR have Please Operator,

Operator

Ladies and gentlemen, conference today's this concludes call.

disconnect. now may You

Telephone and Data Systems (TDS) 3 May 242024 Q1 Earnings call transcript