SHEN - Earnings call transcript Q3 2020 | Shenandoah Telecommunications Company

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Operator

Good morning, everyone. Welcome to Shenandoah Telecommunications Third Quarter 2020 Earnings Conference Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to Mr. John Nesbett of IMS and Investor Relations for Shentel.

John Nesbett

you us. thank and morning for joining Good The results for today's call review Shentel's is to the purpose for third quarter XXXX.

announced call this Executive and call. Volk, presentation Chris With made today. Chief the today set is press audio we the Executive replay were Heimbach, are morning President, CFO. President available site, on Dave Operating www.shentel.com. page release later results remarks, prepared Vice will in Chief this and that Finance release announcing our Web in press Senior forth Our an Vice Jim French, note distributed a at us and our conduct the are session. on and After call we'll The Officer; Officer; and President included question-and-answer reviewing of details Please be our Investor a this will be

you let forward-looking which Harbor our Safe me always, review. the conference may of provide may cause As reminds this I’ll materially the which differ from presentation refer certain actual SEC slide risks contains risk subject that encouraged to call and to in results Hence, to filings, disclaimer X you statements you're to These of our detailed statements. factors discussion a uncertainties. various and include

not to call required revise place any the statements. Go forward-looking by You're forward-looking obligation turn these cautioned publicly now. as to over or update undue that, ahead, law, Except no statements. on reliance to we undertake Chris With Chris. I'll

Chris French

joining hope is safe. everyone appreciate We I everyone healthy John. this us and morning Thanks, and

strong by fiber on and results year-over-year detail will data future our for approximately sales results four, the broadband growth additions another income our momentum net the adds Together with these high-speed of have achieved, of net organic of record in slide and quarter Fiber outstanding had broadband excited we later growth on Dave provide public company, on cable construction more Fiber reflected the we're we in Glo As rates driven subscriber our with Glo in outpaced part peers X,XXX. business. X,XXX call. strong

X, slide growth in our dividend driven our and returns, to our earnings marks shareholder share with results by the of the announced per consecutive dividend a year to cash Turning commitment strong increase to share wireless also business. last highlighting $X.XX XX% consistent week of our consecutive XXst an payments. annual per increase annual dividend is year we The eighth of from

Over I'd continued strategic telecommunication the of rural X, by serve. like meet slide demand to option taking to exercise markets to we're following in services our Moving wireless now our direction business. T-Mobile's purchase history, technologies transition investing long the that we for Shentel growing the of latest their in has evolve the to to

will focus the our communications mixed While transaction we divesting business, our affiliate a emotions have our us on Sprint to fully integrated transition broadband company. to resources about allow regional

our of customers first penetration a Harrisonburg, added our of with Virginia market Glo as both having region. Glo cable Fiber and several latest fiber an expansion broadband highlights We're properties a initiatives rate pleased Glo XX% year first in new of achieving very XXth results Fiber strategy well and aggressive are our in Our decade-long began rural acquisition September wireless that and in business with the X,XXX XXXX incumbent of Beam ahead plan. of middle-mile fixed the our

under broadband franchise by our October, new market in and we quarter, new Glo Fiber target XX% we passed. brand-name counties expanding wireless into Beam third service agreements to fixed the Rockingham. also Albemarle In XXX,XXX homes the Virginia the entered largely During six of

a rural available. megabits per from or ranging to second offers service without homes Beam XX service Our access cable XXX underserved high-speed fiber-based Internet to

for Beam the our be has launch a connectivity the step urban to toward response We initial Internet sample rural been small in have targeted we believe between broadband digital our a longstanding potential with and the markets. solving will the of purchased our will This divide size service coverage auction in further investment XXX,XXX our very million. big purchased very increase to Although, supplement area To positive. spectrum $XX development addressable and incremental the our X.X-gigahertz capacity, along market approximately in CBRS homes recent passed. we XXXX target spectrum

years our cable, fiber a for long-term be platform over mix homes complementary to the the serve and able broadband With technologies, wireless of business sustainable in growth. fixed state-of-the-art and will now coming XXX,XXX our create

to expected the analyzing our including aggressive As a the resources support of structure to sale. broadband-centric company, we're we wireless transition proceeds from use needed plans expansion the and capital

from Beyond support to determined note guidance to of expenses a provide the level plan taxes long-term. wireless business the of use we our timeframe, repaying appraisal is reserving the facility, upcoming fully and in On and on cash income proceeds a of credit address to to value remaining sale process. of our corporate the credit after similar loans expect the broadband we and business the pay facility needed new term

with Turning Sprint's brief update T-Mobile. to merger I'll a slide provide on X,

be their on and process. PCS XX% of our through for our to value As business affiliate outlined the in an is entire T-Mobile appraisal XXth exercise of previously August operations agreement and option announced, determined business assets purchase to the

and pending we're other as we access dispute principle, performed the agreement integration The currently to the any affiliate the Shentel's without entire their though regard its of an to about value many framework receipt brands be to transaction in XXXX aligned valuation Xst subject and spectrum regulatory had appraisal July complete and in our and announced assessment appraisers relating I XXth, acquisition on appraised the sales employees will January XXXX. that appraisal to process. contractual of its Under business Shentel Sprint be presented We wireless XXXX. certain value how will subsequent related of this responded. customary will with or The T-Mobile's expected Earlier of and management also a cannot provided next expected still Sprint with as of the close that more efforts. T-Mobile It's of year discontinued or is of operations pleased organization to in elements the to week, notice T-Mobile's the has second acquisition. team have principle quarter terms our for of approvals. appraisal challenges we on also previously

that our results. company's of to Our the our history accomplishments meet months the challenges now bode call and well for prepared have coming well Shentel's over change. phase ability the to of the of financial review of details turn as next to long and the With Jim I'll growth for

Jim Volk

morning Chris you, and everyone. Thank good

through let regarding the made Please financial sale changes you slide me reviewing we X. results of Before the our accounting third for the wireless pending segment. our quarter, to walk refer

August and their the consummated and liabilities are presented wireless balance sale operations and presented XXth, exercise concluded As for sale is T-Mobile would and be sheet discontinued operations we in assets purchase wireless one discontinued held of been discontinuing Prior statement assets our operating consolidated held on Wireless that period and flows wireless the within separated as, as, year, statement results and balances comprehensive from our have investing the retrospectively option now and our of comparability. shown note, in the cash a income. similar therefore, assets to flows income our consolidated as consolidated for cash operations as financing for On operations flows. our and cash and presented and sale revised been net have

the prospectively for assets in depreciating have and held We ceased sale September. amortizing starting

In operations separately reallocated accounting and provision addition, segments operations. certain discontinued discontinuing continuing between intercompany to has tax the applied expenses conform an standards have to been with income on and been

been have as loans reclassified in term outstanding sheet. our balance Lastly, current a our consolidated liability

be loans term to transferred, net prepayment XX-Q wireless. Interest from and Although from mandatory operations. our not loans requirement more presented repayments as income in included agreement filed cash our in changes for will segment. a sale the upon morning financing of details there term footnote regarding used the on discontinued this that the expense refer to accounting X discontinued is operations liability our Please we the is is wireless credit in wireless activities related segment a of in

in of growth statistics for revenue primarily provide of $XX.X to tower was changes, quarter XXXX. in as billion longer on quarter in to in segment, In million in million the XX third adjusted of The $XX.X third to addition growth the a same to wireless reduction for was financial Due in $XX.X Consolidated expenses. will our wireless the due refer the Please no comments of was consolidated increase $X XXXX, the operations. EBITDA operating compared slide $X.X towers million million to period in compared to discuss nor broadband last quarter year. segment we corporate the these third results million, and and our now quarter. to $XX.X disclose accounting

primarily XXX,XXX decline The X.X primarily dilution in subscribers for increase from broadband quarter in service. or wholesale segment OIBDA residential our XX. now adjusted $XX.X of XX.X%, to by -- quarter data OIBDA wholesale enterprise million revenue in X.X%, growth was an our a Glo segments an slide of million $X adjustment to X.X XXX,XXX to and $X.X XXX,XXX the from circuits. driven in in band same cable the the SMB lower year average due Revenue in for and amortized XX.X% in fiber from ago. million due and launch third from $X.X Turning more enterprise million revenues of intercompany or lower to in declined and recurring third from bundling revenue million XX.X% Fiber revenue primarily a XXXX than were the Beam. increase DSL offsetting backhaul declined and monthly increase and discounts adjustment primarily $XX.X one-time revenue the enterprise declined and of and Fiber a lower RGUs the and to to million promotions. period Broadband one-time RLEC broadband for XXX,XXX revenue million the

grew OIBDA to grew to impacts to OIBDA increase Tower XX.X% in X.X% XX, XX.X% On due been amendments intercompany have these margin third leases. slide to XXXX grown Excluding have million and rate adjusted in XX.X%, and OIBDA the segment revenue $X.X growth quarter adjusted lease average tenants would the adjusted X.X XX.X% and for the the XX.X%. million would due

slide we in effective million million to including cash the and quarter. liquidity quarter Moving debt $XXX ended and the with of Cash an million $XXX XX, $XX.X total third grew rate in equivalents. and sequentially X.X% with million $XXX.X interest

strong generate $XXX to Our continues cash discontinued year-to-date. free operation flow million wireless with

transitioning has is wireless please Before XXXX. of determined share first re-implementing after our the expired quarter note to-date, in program reevaluate and repurchase we'll the valuation that

over the Now to I'll Dave. call turn

Dave Heimbach

Thanks total the year-over-year Jim period grew to everyone. in business in and RGUs with same in which roughly XXX,XXX our incumbent cable the approximately on a the begin prior I'll third morning year. in compared quarter to good XX robust slide X.X% XXX,XXX

the XX% data in demand quarter improvements and with X.XX% of in the As Chris ended pointed to of period. service increase added that quarter we an broadband the the out Incumbent XX.X% is in the to on the third We're at broadband also the X,XXX quarter and to which basis of churn XX.X% incumbent RGUs penetration last this quarter XXth RGUs, very third impressive cable to call, churn speeds, our declined prior-year the new broadband broadband representing start data our pleased data from points net year-over-year continued cards, the consecutive increased improvement. roughly XX,XXX strength an rate report quarter to cable year data increased related COVID-XX. nine quarter,

less cable quarter rate reach the data are of on the our X.XX% the an per speed subscribed beyond of XX% megabits second in from megabits based versus on or of per well to branded $XX.XX the been our prior income churn data comprises second, would of third-quarter in revenue the of year competitors. an those were download incumbent our which and base. rate cable XX end second XX business is At impact leveraging per proposition on upgrades now improved or average with X.X of increased megabits Broadband plans our data the value non-paid deferred second disconnects card per as XX% of user plans PowerHouse DSL in speed greater markets. customers DOCSIS of new third now slightly the have XXXX, quarter, XX% average XX Excluding

Glo XX.X% XX, continue at of strategy, data the Fiber. approximately third slide broadband data Out total X,XXX gain quarter comprised RGUs with roughly to momentum Turning to end new a relationships. Glo of customer with we broadband penetration the unique had our rate X,XXX Fiber-to-the-Home Edge

Harrisonburg, neighborhoods our penetration As the broadband achieved penetration. the Chris with has in at mentioned start XX.X% aggregate call, already of some in our community achieving of Virginia most market that percent XX% data mature

X.XX% only activation new in a speeds our extraordinarily continue higher subs seeing new product in was churn down speed in data We higher new the high-speed as percentage gig to low one result electing in Glo quarter quarter. of churn of revenue with time. see Fiber a sequentially the to with subscribers electing We're ARPU this XX% tier quarter. $XX.XX of the

also constructed exceeded new end of the XX,XXX passing’s our Our residential of continue and in to sales quarter, spite well well attachment COVID-XX, the depicts in to streaming September. quarter. efforts are Fiber the quarter XX% overall TV third and of approximately addresses status delays the in in were the total our voice of to of of Construction rates respectively. progressing end expectations approved perform XX% active services and with Slide as the very released with and concerns X,XXX markets at business the and of XX, XX,XXX a and quarter, small year-to-date Glo related

approximately new released to target passings, end XX,XXX sales of expect year. to have total the the We by

quarter new of and passings the Out as for one our adjacency of of and the Virginia, with of funnel new markets new team added adding target fourth West XX,XXX target Fiber added over operating Blacksburg, Maryland, networks how strategy broadband our helps Virginia growing XXXXX heading Fiber well. Township, development XXX,XXX depicted Martinsburg passings. in fiber, the franchises our Lancaster really Frederick XX, quarter. slide cable, cities Town and was third West have total, which our additional strong in a approximately an our wireless given franchise over approved October, We increase footprint. Glo illustrate market broadband markets, we productive and On The Glo successfully additional nature map time, Charles In leverage Then target additional Edge we overlap fixed will has the operations integrated added including our of passings. This in approximately the three into Virginia Pennsylvania footprint.

which As fixed Chris have spectrum of have year, to launched mentioned Internet at speeds acquired new Internet, and newly start very early of approximately the We'll by excited the in leverage high-speed continue on megabits XXX to in will roughly service bring underserved Beam we broadband macro un-cable with Beam wireless of target households, sites to end access our second. the call, October. XXX,XXX as air up we're this our XX to is region. per the our critical

progress Combined Fiber of launch to and next status We expansion XXX,XXX plans, update development our will passed market five the continue you services triple multi-pronged will the in more on construction the Beam Internet to both over several homes toward our and years. we as broadband growth quarters. over in Glo our strategy efforts than the of commercial next

superior leading provide service have is Internet we high-speed areas. service in urban variety low broadband XX, Beam our serve denominator common cable targeting service With our the range sustainable a service. terminal of the incumbent slide on summarized offerings now next all available density As projected several of The in the wireless dynamics our Fiber mid density we industry-leading the in Beam and growth Glo rural customer in offerings markets each range, product expect with market XX% Glo years. for higher and to fixed to and local business XX% market targeting penetration rates to of lower mid combined have penetration to with

cells Beam XXXX. the slide update results an capital upgrades our on X.X% end the quarter, to in Glo broadband small end we of driver wireless no of and XX, a compared spending the relates had wireless guidance continuing tenants operations the the year-over-year in related XXXX. through XX, primary Capital towers the operations. the XXXX We or slide increased finally the at our orders backlog The to We fixed in total XXX with a tenants the XXXX September tenants of million of addition Turning and to open at Fiber sale increasing increase million total to existing pending XXX. $XX.X XXX our quarter And guidance to new of were and provide of for and discontinued third as result to of longer presentation. expenditures investments XX.X year-over-year quarter to initiatives. Internet third

XXXX, year on is flow capitalize invest $XXX aggressively as you and million our full revised million now our expansion generation the much. fiber we're operator, the to guidance wireless we cable now to And cash strong questions. liquidity fixed For $XXX of and to in broadband Thank networks. our very take ready

Operator

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

Ric Prentiss

Glad guys. you're doing okay during to these Thanks. Good morning, crazy hear times.

Chris French

morning, Good Ric.

Ric Prentiss

couple A the wireless on of process. first questions

been to three all selected have their So the started work? get on appraisers of

Chris French

is happen out. here the going before to month Ric, that's

Ric Prentiss

Okay. the what how will that comps, to it the how perform be the just what's place process? appraisal Is that flow, they able cash work? on expectation And do of with framework of they'll in expectation kind is

Chris French

of Likely, transactions don't ought want want too it's a we don't be process. it's conduct precedent the and of obviously, the factors. would think how Ric. they we too a DCF, But factors applying to to we much combination much taint among them on process combination Likely we're how comment comps to because etcetera.

Ric Prentiss

would addressed so thought had How that expansion know the in that be the there addressed valuation? that it's Sprint the territories, deal that expansion happened, you T-Mobile a to not have territories assuming is in I

Chris French

Jim, you right. take That's to Yeah. do that want one?

Jim Volk

our for expecting as from – our that Ric, growth big expansion going look strategy plan and a growth so are know of we which appraisal markets, expect you forward. the at XX-year we're part

as that within book the the markets that, expansion bump value less also the for valuation up for in the some date. would factored agreement value framework a reason for of market net affiliate mechanism be multiple value. perspective value the the than is from OIBDA the DCF in the They in appraised to the they if expansion the respect expansion was So in a will and for book markets is there

intended there we we've making since mechanism our acquired make to the that is these lose sure been we don't investments So was that markets.

Ric Prentiss

Makes sense. kind repay look at you term is the basis then business? on proceeds, be indication the And what had or you Any might of income what loan and have obviously, of to the Chris, mentioned, the you wireless taxes taxes. borne,

Chris French

don't publicly want other you know, Not any yet. I said, if we've to color. that, Jim, add

the We cost on disclosed have those not assets. basis

Jim Volk

determined, have value – we it going it's we second will. Once half like January. said, the as but Chris of disclosed basis, is looks Ric, the we not to be the

what not and think would tax year the the proceeds disclose only but be. for value, will will we tax impact We be what

Ric Prentiss

Makes sense.

Okay.

I frames, think, and Chris you costs the would at, that of as looking organization? the be you timing far have about at to do areas what's the dollar the also and first? Time corporate financing look how what mentioned right-size rough might the thought as and at guidance we cost, that should that one you obviously of magnitude think corporate How be? level

Chris French

We're the Yeah. be all tax time and get at same the clarity sale effect that. obviously and frame from about as looking and now will the we on that proceeds the once

be year. next quarter of the or should So second first

Ric Prentiss

think the even seen private And paid tower broadband as company. how then American the about just business, Okay. week cash keep transactions we tower some a that We've flow tower XX.X critical for times this with business? Tower is to

think something monetized tower that to it business? we well? is about keep keep, should or as the might need something get Is it you want how to you So

Chris French

Yeah. Go ahead.

Jim Volk

the in take them batter's valuable be say, the do in right of time if fund and step acquisition acquisition. we then an towers but think I would think to help we'll Wireless here. down it's a to box at to us, said wanted one I us road. now don't I monetize the funding, determine we'll Rick, what doing as and can an is a source towers we're strategic it the past, a we've

lines. So those we're of thinking kind about it in

Ric Prentiss

for that out And space? Telco looking last in there up market pipeline transactions the pick one acquisitions? to on comment potential that just Cable How there Are any broadband is that

Jim Volk

tuck-in we of also continue as is and frequently, we competing speak a as as look small big last Rick, like were kind more opportunities poised couple opportunities those Yeah. we're to we're opportunistic we transformative completed opportunities don't They that that today but be a both to looking there's of Sandy well. and as on data. come for at year along is

Ric Prentiss

Stay Thanks well. Appreciate a Great. day. it. guys. Have good

Dave Heimbach

Thanks, Rick.

Chris French

Rick. Thank,

Jim Volk

you. Thank

Operator

Your next with from Silver question comes Zack of B line the Riley.

Zack Silver

Okay. for Great. Thanks question. taking the

process. management is pretty following that deal, the appraisal towers up some around free Is into it's just for million one something fees. on appraisal the Greg's the that I first around of framework? questions cash of The In factored $XXX to think waive payments

Jim Volk

will a purchase of appraisal it as like much Zack, working adjustment, a framework capital won't there. be value the price it be once actually the part is it

appraisal be of value, will added it as not process. kind the be it but so ultimate of will fact to to the And not added part the

Zack Silver

new sense. then makes on you how leverage a business repayment the wireless perspective? about loans That think When how thinking are term the looks, closing capitalizing you sale. about that flagged of Shentel Okay. from And require the that you

Jim Volk

expect still general, have putting in would to probably Zack, we you the have similar leverage say that. I we're today. that same the range can today that pen we on leverage But paper to in

had will growing growth the business the on aggressively We as Chris in outlined Dave call. be the and business,

to growing place sure keep So funding and to keep we put that funds something us we have allow the adequate will in make business will that business.

Zack Silver

and in those you in a see pursuing How the that more accelerating new investment do for business, Got incumbents compete competitive hybrid confidence what been entrants broadband some high-speed the of alongside of have also then markets? there's technology it and or guys with attractiveness evolving a like this your don't and high from fixed level, it. you And that and incumbent relative larger COVID seems can approach players lot you markets, demand the there. of wireless at others a you gives the environment

Dave Heimbach

achieving. the to region Look do we this in here and hopefully record quickly urban I we've with last the a We're we're that get our part year of investments tracks the have our ability company in think rural of course morning, the markets and the Hey, good that made results over well-known a the Yeah. gives country. in you Zack. confidence

strategy having distinct three best So way go. a broadband here to the I leveraging absolute think multi-pronged technologies is

We as incumbent been and cable the well. assets as think we you've have protected acquired acquiring our in been X.X of you in the markets observe, aggressive would probably we've our noticed I spectrum region with overlap

defensive have market both I'm offensive an we here. to near in our and market strategy our share defend quite strategy our with So three-pronged And in future. share and take ability existing confident the

Zack Silver

for broadband Got me, it. last for And then penetration the incumbent one -- the incumbent cable business.

you've better are expanded from? of those quarter. at we've new think about levers broadband talk from? seen new I one the you the is additions from Can rates Is upgrading just this and that folks what where were coming coming DSL, subs it it

Dave Heimbach

Yeah.

think off it's their frankly. categories on to all rate of our trying operations those pandemic that. and addition both capitalizing tether we're from plan cellular an perhaps that at our data and and I in new Obviously, we're investments leveraging but of time to the folks tailwinds both and quite of work our in our home, network card and came outstanding study the

So we're I executing think better.

price-value now we think before. we've did a better than got I equation

in you think quarters churn I XX that see consecutive as evidenced reduction. of

and pretty poor. were scores long NPS are ago roof not so through they Our the

of a from some did last I So That's aspect The And that year it's that here tethering come your we're plans, dealing of XXX but factors part and and operational together of of it other in that it's base share to those midst strategy in have prepaid DSL our results. using are to make broadband there’s COVID last overall comment about as those added is the to plan cellular allowed to may not levers have the the least, satellite here taking this script that's nicely credit-challenged I growth deal of see think net it through probably prepaid consider to they've point, terms growth the were from, that coming have folks in that where quarter. is, and in we persist to COVID, and from of with you through previously. added in in a subscriber service. been competitors, But the midst well. But if all of overall more good subs rate demand the to the the tailwind we momentum Zack. quite think -- addition number expect we the added we've the investments revamping we the produce

Zack Silver

Got That's helpful. guys. Thanks it.

Operator

next Financial. [Operator comes question of BWS line Hamed from with the Instructions] Your Khorsand

Hamed Khorsand

morning. Good Hi.

Just building on analysis Have cost that expectations the acquisition theme. guys cost the you competition as passing? far your on per done just any beyond as what of

Chris French

of Good Hamed. course. Yes, morning,

category which or -- questioning? three you are All For

Hamed Khorsand

Fiber Glo the just and Really the Beam.

Chris French

Yes.

the connect customer that. Hamed, to of cost Fiber Beam half the the So Glo in roughly is it's and $XXX-$XXX on range, all-in

Hamed Khorsand

a over? faster? that What's it usually Is the you're customer get enticement just is to switch

Chris French

on Comcast generally, choice. company. And with city. in here, is candidly, coming very there pleased introductory that expiration. speed We're regional a playing not spend folks from games to have their gimmicks go-to-market their got prices much dollars communities. more faster. companies choices. We've that raise around after And that reinvest offering to just to a straightforward a strategy We've got are three or this People with respect our like recognize value Folks We're proposition. is

All in. non-Fios launched that markets thus far of are these we've Verizon markets,

their a so, option if And broadband really robust they it's Comcast. is, or to want high-speed either product, us

Hamed Khorsand

we're Okay. to just what options, Does beyond what to? your used expanding coverage the are chances region having multiple here

Chris French

speak. seeing at home-base, if so Well, Glo just started with map we'll look And further that. beyond you're us at out to a demonstrated take and here and and strategy, and are Edge of to I now, continue every clearly where record our track we you think, look do quarter adding markets new the you a we we've where further

when and markets of map So the I I taking that, for spectrum for at think in there we're continue conscious Glo, to you look us we've at can presentation expect with something added is a away footprint. look strong you out very -- on want greenfield the grow of combination said to is of very probably that, the kind you the footprint, to we would and likelihood of that something we're operating that the think, be the a synergies plunk not of advantage and But and us focused center to leverage the don't should expect states from on. pluck five do. universe and you edging our pickup that operating build, home-base down Having

Hamed Khorsand

you. Thank Okay.

Operator

Fargo. question next the Newcomb with Wells Kent of comes from Your line

Kent Newcomb

you Good morning. me Can hear okay?

Chris French

We can.

Dave Heimbach

Yes.

Jim Volk

morning, Good Yes. Kent.

Kent Newcomb

question the morning. on dividend. Good is My

I'm do recently are perhaps that sale it to the dividend raised quite be, a from maintain wireless going expect that as invest you're, your or use and you to the investment guess, the continue build-out, and proceeds to guess, after well? I You question sale of cash assumption that I the obviously, would bit. sufficient to the flows under

Chris French

Yes, a having an Kent, dividend. long history we have annual of

right-size own will probably we that and at year. tower that We broadband we'll time next own businesses -- at the this according to

will Beam in that according in to businesses. shareholders think the continue cash can it We to likely liquidity can products. and Fiber So yes, our and prospect return the we those from a we we're invest new the in strong earnings flows coming and adjust both. Glo to value here But, cash generation and we could do

Kent Newcomb

you. Thank

Operator

Raymond follow-up Prentiss Ric You James. have question a of with from the line

Ric Prentiss

Thanks, really find XX interesting. guys. I slide

to speeds well. offering quite out kind it lays will related What Couple be Beam there. of customers? it think, of I questions you

Dave Heimbach

we here, out and on, with It's look plan what to then continue we're three offering signal download is expect our respect advancements X,XXX-X,XXX. to our megabits CPE tiers speeds Over the at you gates, tower XX develop and characteristics but initial offer to of XXX depending download time, to are higher like. Rick. Hey the propagation entry up when rate megabits where

Rick Prentiss

mile per Glo Beam, as Fiber basically density and versus versus then, be? says get Beam you And a time no square think would where there what population go Great. that to fiber about what is breakpoint get breakpoint Okay. markets would fiber versus

Dave Heimbach

of Yes, evaluate. look, there that we is square route route a and combination mile Certainly of here them. factors density it's density is or one mile whether

Another with just factor, we landscape looks competitive look is at like. the

spectrum, or satellite a or that wireless have we We're folks fixed viable would have areas targeting Cox from are cable strategy. So only Comcast a areas. wireless not choice. as In for maybe DSL ISP other with choice or broadband unlicensed instance, our that words, or most their targeting a someone local a

a density, function all other So, of also at look the a and of and as other and factors it's socioeconomic of of level a of we rates it's competition poverty factors, function kinds investment. function it's

than more a investment greater slide, point can deploying being, which much deploying you appreciate in fiber, is a is technology. much it that the As upfront efficient it's capital

want of achieving we side our a greater So, to Fiber have objectives certainty penetration a the result. on as rate Glo little

Rick Prentiss

least is now. think addressable out addressable Beam that's much for I because, a the is at the Glo market that, Right, laid than the side side right there larger market

Dave Heimbach

We're permits, to in right. that's future. distant there other that is in candidly is, too is. we not going video point getting those Rick ability be And for in the these we're offer a service. Obviously, when certain consider not franchise Yeah, the entirely to our factor are time that

reluctant where viable position particularly broadband probably with in only the ourselves kinds all You're video which will rates would in a a to heading of with data we that Comcast. and into these of data we're bundle three get either. achieve a to have a And we out imagine, could churn we expect kind the that some it urban suburban county, video to have build But centers don't ourselves I and that ARPUs want IRRs areas wanted obviously strategy to the to date, bundle, and put product franchise, that at characteristics. viable a we not for a out to a the a universe. streaming-only inclination But which in support county for when to rates density in date, there not given point obligate be because extent, have strategy doing might didn't whole the in time the the get penetration would that would enable be to that we us be product to good But of to obligate competing do of would we pretty strategy. more to we've us which been

market the evolves. as time over change to it expect I So

Rick Prentiss

broadband. given against? try even rates has T-Vision kind of product, launched need side it pull the offering penetration entering streaming, bundles content fixed going Do you're level business content are to that or be you content but and you of see to the which the for push also Obviously, is that don't competition related T-Mobile the for wireless a

Dave Heimbach

video we we could plans strategy, any kind. wireless fixed don't of the over right time, bundled at any plans For That any change but have don't offering offer now a to have present.

Rick Prentiss

Okay. Thanks, guys.

Operator

questions. now are It would no conference there the that I back to additional appears remarks. like to turn for Jim Volk closing

Jim Volk

everyone side today. we our joining and the on day. good progress, this and to morning make as process the appraisal businesses. and I thank for the wireless call a would of both tower broadband posted our you with keep course call with Thank Have like we joining for you will

Operator

call. participation. Ladies does end for and this gentlemen, conference this you Thank your

You disconnect. may now

Shenandoah Telecommunications (SHEN) 8 Nov 202020 Q3 Earnings call transcript