USM - Earnings call 3 2021 | United States Cellular Corporat

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Operator

Good day. Thank you for standing by. Welcome to TDS and UScellular's Third Quarter Earnings Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the call over to your speaker today, Ms. McCahon. Jane ahead. go Please

Jane W. McCahon

good are We doing and and that your families well. afternoon, you, hope everyone. you Thank

meet As many periods couple of spirit, role knowledge leadership companies and excited has to you transitions. I know, the role significant practice both seamless brings company of And you positions to XXXX. over the Colleen she the long, held TDS and UScellular, TDS transition, will of quarters. has Colleen be orderly of Corporate that in Thompson of am since succession And to I transitioning have with smooth for I'm her. a after where ensure UScellular. Corporate remaining that family Secretary Relations of next the the in

of that. held X:XX historically we so most going as it's a.m. quarter, our there's calendar Central. we've a accommodate know, for We on know do a.m. to to we our day, conflict you to But being X:XX at and call a thank so call at this but busy back Friday, move Fridays forward, you expect flexible. our calls moved And

to aware have to which we websites. UScellular our all the presentation prepared Relations morning, on make you the comments want this the find and TDS you accompany can Investor of of I sections

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

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

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

X And upcoming IR is our of the are attending our virtually through Citi's TMT And open Slide on Virtual policy attending we January, Valley as terms UScellular James Fargo open Conference phone, be can Raymond X. open In Summit XX. in and the X, X, on then schedule, Summit door, AppsEconomy video. on January January always, person Wells in open November Deer door now

please So in speaking you're if out reach with us. interested

Slide to X. Turning

practices up our call culture we communities governance we and align our the program. These truly environmental, about This ESG on corporate striving most our over published corporate our caring practices good associates, social serve. with to community. steward ago, values that means our recently, customers, customer, make responsible people the S good We is governance, what the a XX or X enacting a report. our and enhance our which environment progress the of From very to of TDS' we as continue to are TDS and And founding ESG, in make that lives fundamental and and being believes first long-term serving citizen and success. the years ESG Cs:

briefly recent to highlight going illustrates commitment. we're a quarter, action each that this forward, Going

related not Auction auctions. Before FCC's to to due turning XXX, spectrum to ongoing I call the the will that we related any rules want to to responding over, remind be everyone questions anti-collusion the

Sereda. Pete? to now like Pete turn call the And over to I'd

Peter Sereda

Thanks, Jane, and good afternoon, everyone.

recognize that stronger to years. want returns Before both taking over several speaking lead units businesses are business the next and actions sheet, to about the higher balance I all to the

past calls, is the discussed flexibility we've As maintaining one our financial on of corporate pillars strategy. of

we've long-dated maturities, and credit we term make revolving significant undrawn the need resources levels, low balances we fund sure cash our debt worked retain to the and facilities leverage relatively sufficient Over years, to loans, to financial businesses. have

average Slide while I fund to our that sheet. the your our same at to On capital been cost in the X, call to all want attention balance lowering businesses growth done new time, has the work to the of raise

can since beginning comprising weighted of redeemed on of run debt separate you series and called million. The this raised cost a X%. $X.X debt XXXX X.X%, is bond billion an see, in approximately cost annual As rate the billion X of with $XX we've at savings $X.X average average

reduce sheet is balance This fulfills a commitment the of bank long-term our beginning funding year of the cost preferred The very low-cost shorter-term sources. a to of new and at debt. stock capital and along mix with debt EIP bonds, our retail the average term and securitization diversify made loan we

forward, we in variety have our instruments through order business. believe to will Going continue of access capital continue the to to we markets a debt that fund excellent to

up have call LT, Finally, level in want saw for significantly we from significant from the I recurred. the over rate to not tax benefits point the quarter which XX%. before Act, income was our This which the CARES to out turning that onetime is XXXX

over I that, LT. turn the call will to With LT?

Laurent Therivel

if against really turn Everyone, to pleased priorities. progress we Slide our that making strategic with I'm we're the X,

the let the business, positive those our momentum the in Doug I thought and thoughts on quarter. But strategic on, third to provide and Later on continue priorities. return these making We our growth some of first, we're cover highlights I'd going capital goals. few towards a progress of of operational areas see financial I'm to

be top mind So of me environment. to continues for the competitive

aggressive They the postpaid the quarter. new both customers. impact had on we promotions During existing and a loss on for equipment of in subscriber an industry quarter, on the continuation third and saw have for our results

profitability. with more beyond. I'm operational us aggressive pivot offers and some the than offers balances in towards season regional with had growth that the iPhone a that test with an variety to we're leveraged made And really conjunction optimizing in we've We've approach be We subscriber in us going properly launch, multiple level effective on continue aggressiveness hone effectively approaches that We expect others. to promotional the to a our high regionalization. set help It's pleased I'm marketplace. help variety the much different to to effectively marketplace the more that business. trial of pleased of a of through now in up strategy much in holiday and

business drive our government and and and strong you prepaid our to results particularly and the new spoke positive business momentum prepaid space for last operations. I growth to in some quarter seeing about the times, are IoT reported in networking our another We of business. of sales, operating cycle private We're in space. we're initiatives for seeing that It's substantially, the really metrics, in we're improved of the our towers, in open clear also particularly approach. benefit seeing and Applications business up really we're industry to tower and meaningfully. some terrific have traction that quarter

briefly network. Talking about

we're on and is that The XG of deployment Uniquely sites into getting Our important, XG carried our hands. now remains XG majority customers' multiyear have devices our by network traffic deployed. modernization program track.

XG-capable of our about far, we with smartphone have subscribers So X/X devices.

customer we trials of talk spectrum this launched millimeter and to access. of on bit performance spectrum. markets. commercial continuing and network for about I'll We're a fixed in validate experience, offers a wave optimistic use small recently wireless set We're

that. to second. We in to And of speeds have XXX more planned speeds fixed per exceed up millimeter commercialization aggressive wave megabits many offering experiencing seeing commercial date, We're XXXX. customers wireless far access that we're

speeds we're seeing type and the broadband from enthusiastic we've clearly customers, reception home service. the for this there's our that Given received trials in demand of

conjunction deeper bridge a fiber the build-outs product also changer divide. game can We digital and to with believe in this be helping

to and I'm also address a that funding technology un- we the to so way outcome reach to the already get areas bipartisan needed those that funding pass satisfactory deployed basis. their underserved on we their that's this need by Hope shortly bill differences able been it. the be and the passed can House those have infrastructure to Senate see optimistic clear will that a

Talk think results certain continued constraints industry. has briefly impact about pretty It material effectively. constraints. the chain some We've in We this experience to a on impacted date. on our supply managing us, had everyone like we're not devices. They've to

the suppliers. But risk. On multiple these risks we're suppliers. network we've Like today, to from side, seeing and times for able logistics extended components network-related various everyone, continue been global closely mitigate with supply partnership to our monitor ongoing we lead in

by and work UScellular day company. On about thanking all close things like The given now, survey. like engagement current improve on to financials associates costs. confirm recently joining the is to score. overall. important recognizing Net our expectations high. Promoter and around customer retention tangible that comment hearing UScellular, higher incredibly are That what you're every observed This I'd the since completed when our our loyalty end is what note, Engagement impact recently our resignation. we rates and I've and an year they amazing like press with improve comes who a Score is the people a a I'd it which than were our has onboarding annual results of this training especially ago. right We a to XX, about received in to of great at actually experience help

quarter. the over to cover to it turn I'll Doug, that, details of you the With

Douglas Chambers

afternoon. LT. Good Thanks,

a with higher Postpaid largely Let's to start promotional on X. increased customer due review activity of by in handset switching our strong gross with X,XXX Slide activity. results year-over-year, additions combination

of industry-wide when of prior an and XX,XXX decline to device pandemic. additions was such the Of against hotspots connected course, lower we aggressiveness gross year, as We by a products was the on year-over-year. to Internet experienced saw handsets. in compared due increase this tablets backdrop This demand promotional sales driven

smartphone XX helps drive connections is higher by ARPU. than the phone smartphone X,XXX quarter given That feature increased the during and the service revenue past XX,XXX substantially months. more Total course by ARPU that of over to

driven to Moving prepaid also to which X,XXX out offerings. prepaid strong improve X. enhancements saw the Slide prepaid, for We to were by additions year-over-year. by our I call trends gross want

was periods the for certain Total of quarter but higher also than to the devices seen the handsets competition. and XXXX. postpaid turn Slide aggressive Involuntary churn, let's run the by handset from was rate churn industry-wide up was year shown ago. of This and business government on is connected also result churn, ago we've by as quarter driven in continues were year combining XXXX, slightly switching activated higher churn to during Postpaid as levels. a X.XX%, that voluntary the connected third bars, peak pre-pandemic and increase disconnecting below increased in the increased due postpaid customers which XX. still X.XX% devices pandemic a on year-over-year devices, churn, of depicted blue X.XX% to activity Next, a churn

turn driven increased increase let's the million quarter average the to decrease revenue Now which Slide of decrease in third million part by a $XX million. $XXX or a X% The revenues That for Total by was $XX million. on in revenue in year-over-year, by I will volume were a results a user, discuss operating service and was to $XX billion, data financial moment. year-over-year. $X.XXX a million driven XX. $XX of revenues Retail Inbound decrease was roaming higher rates. per

T-Mobile's of were factors year-over-year. traffic Sprint service Sprint the volume revenues decrease of to flat One and million, $XX this the the network. T-Mobile migration to and contributing data of merger is roaming Other

an part sales as a decrease sales revenue well activity average $XX as in as decrease to due volume. a equipment increase overall by revenues a large in of unit, million per decreased in result year-over-year in Finally, promotional

engage to remain third the industry. during quarter to XXXX the aggressive activity continued We competitive with promotional in of

represents revenue we approach costs to our mentioned as revenues sales As equipment looked loss equipment and of less A promotional cost sold. differed gains of aggressiveness our profitability. between sales and equipment, earlier, of resulting which on promotional level portion increased optimize by LT the subscriber reduced region equipment

In of aggressive the addition, was the in loss activity by less equipment quarter promotional in the switching mitigated of activity. and XXXX pandemic, impacts third lower specifically

XXXX. to equipment XXXX driver of impact year-over-year. in on $XX was loss result equipment million a combined in change these from the increased our in loss This year-over-year decline $X million of million $XX the of in in As profitability factors,

into XXXX, We the and aggressive full XXXX our promotional to expect persist XXXX year guidance financial the impact. for environment for the and corresponding reflects remainder of

protection revenue a shown year-over-year. XX. about few $X.XX revenues. average $XX.XX offering and postpaid increases grew or was quarter, The device basis, mix increase revenues and an connection driven were in user primarily on by $X.XX Average X% per a comments revenue third approximately the or up favorable or product for On in Now year-over-year. account and Slide by regulatory revenue more X% increase plan per

to Turning Slide XX.

XG critical. changes towers cell As that ensure of control owning and our multiyear additional new maintain to we towers, costs. equipment incurring remains without we flexibility our to we add By operational and our our other continue modernization rollout, make network sites

with see agreement, As the you tower in third-party growth marketing revenues. the on can assistance our steady rental slide, we seen of have

by Third quarter year-over-year. increased X% tower rental revenues

We tower strategic applications on assets. are continue colocation seeing positive from momentum focus growing these revenues we'll and in to

Moving operating income to on and comment adjusted operating before to and measure I'll refer to amortization Slide XX. income. losses. want Keeping accretion I as and simple, depreciation, gains this adjusted

slide, As $XXX shown million, of of at was adjusted operating X% a the year-over-year. income the bottom decrease

expense an X% decrease of cash revenues billion, $X a As I increase year-over-year. were system increased year-over-year. X% operations $X.XXX operating commented X% earlier, or were year-over-year. $XXX total million Total million, expenses Total

X% site year-over-year, decreased million circuit due and or data lower higher by expense. driven maintenance Excluding voice by roaming to usage. lower rent Roaming expense system expense increased cell rates and XX% expense, costs, operations $X

bad $X result mix Cost of a and smartphone in with the X% due X% or increased in average sold significant per enterprise heavily system million cost partially administrative offset slightly shifting connected $XX upgrades. debts sales, Selling, and equipment higher year-over-year, driven projects an as of by associated towards decline decreased year-over-year sales. a or billing more costs million primarily supporting by a expense general and expenses sold unit increase device to

distribution or in quarter we of with be a XXXX. Partnership remained with XX. interest income the received the and earnings EBITDA, income. Equity method fourth adjusted XXXX to Adjusted quarter million, from year-over-year, equity Slide $XXX along the from the of was to million the expect $XX flat with LA adjusted year-over-year. I'll dividend incorporates investments, in X% decrease Turning our unconsolidated distribution for entities on fourth and line and the of which operating starts and EBITDA earnings quarter touch

full Next, I XXXX. year cover want to our for guidance the

results. actual For showing we're our comparison, XXXX

First, we to have billion revenues narrowed to midpoint. the $X.XXX $X.XXX our guidance range of for billion, maintaining a service

maintaining of the related of season. during Maintaining the income that continued operating uncertainty million environment reflects as we are adjusted our a highly promotional remainder competitive amount of $XXX our billion For guidance $X.XXX billion, and $X.XXX be the to for the and respectively. $XXX incurred will expense year wider expectation EBITDA, adjusted million ranges to well of as selling to holiday ranges

to are LT are our shift moving we expenditures, on capital For modernization range XXXX build and project remains to equipment our million network $XXX decreasing spend we as And million our XXXX. as certain guidance multiyear XG $XXX into track. This and mentioned, impact did plan. program not

provided of We major breakdown category. capital have expenditures a also by

Vicki? turn will over the to I Vicki Villacrez. now call

Vicki Villacrez

our X.X now Doug, right. year service its are we the markets. million are deployment the North date, program Idaho with successes communities goal the have to state-of-the-art state we This and into growing our to we significantly Wisconsin, the Telecom you, to our All footprint of TDS Based on progress the Thank more I'm our fiber new a the X% and entering across to additional move pleased bring advances serving increasing afternoon, year. grew results announcement as from experienced towards competition substantially broadband and of and strategic of capability everyone. report making are ago, And we Carolina. its priorities in communities. we on Montana. good end addresses on

fiber-to-the-home gig Washington the grew we new our construction financial adjusted internet Idaho investment us helping launches and addresses, exceptional speeds In while we resulted and Wisconsin in our cluster, an products in in fully-launched speed of provides our on gigs during from And added wireline our of going EBITDA the maximum Southern we experience, in are overall, market Also forward, all where penetration now XX,XXX quarter, broadband Two total, quarter, cable addition, of launch competition. surpassing markets. delivering a perspective, of From doubling milestone XX% further service to completed fiber a Meridian, In new this us. in gig we we in previous are line our X customer markets. addresses, seeing Spokane, capable differentiate we'll X%, X expected. fiber expansion the total offering for service XX% as top spending key lower cluster. planned our

XX. Slide strategic out We the to of we remain year. beginning at committed the to set Turning priorities the

our objective As investing previously broadband generate discussed, primary is growth to by services. in speed high our

in We leveraging have greenfield constructing to this to footprint. fiber a expand and new networks our multifaceted approach includes growth that existing markets

where that share. our have customer invested expansion in strong seeing achieved fiber markets, markets, pleased in very have are market preregistrations. in We our we we incumbent And superior are we

continue more services We markets to to meet we were our safe and fiber in incumbent communities. in to broadband faster building utilizing rural addition, Wisconsin broadband our expand drive In recently X X awarded to by A-CAM grants speeds obligations rural grants.

Total quarter due in Moving and broadband into new new XX. continue and X% markets, our offset existing by as grew we Total the in telecom to to connections residential in X% voice fiber Slide partially residential fortify to connections. decrease markets. connections expand with a increased broadband network growth

are value track revenue price in in average increases to our a markets. on mix growth network higher helping the in residential per our drive increase program, X% construction We drove under and connection. also product incumbent Overall, A-CAM

XX, you see connection On broadband can Slide growth the all across markets.

revenue. fast, reliable service has increase generated on Our in XX% total focus a residential broadband

of XX% offering XX% our and gig superior along will win to customers. markets, we now We X.X X we of including product. certain areas gig this X where speeds us defend taking markets. new allow total that offer tools gig new X expansion seeing important In are our are X our to The with DOCSIS gig service, customers our and both product, to footprint, are broadband in fiber product

Slide to XX. Turning

to A Telecom's advantage than TDS broadband of customers TDS flat. connections TV growing X%, Wireline Residential one to customers the growth success which of nearly offering. cable more helps our expansion market. our keep our our markets, to were options, as nearly residential Video our remain by augmented video with customers. continues important to churn offset XX% losses of low. majority of bundling have driven We subscribe in take service,

XX% broadband are our services. to markets attachment connection we IPTV rate offer we in example, where every experiencing For a wireline video

of video TV+ our product Our our cable. of including cloud-based to this operations, connections XX% currently increase through TDS is rollout the total strategy covers product. The offering of

Moving to Slide XX.

We on Telecom it very TDS years. in a strategy fiber continue transform our be way meaningful to and several the how will bullish very over next

As last level we has heightened attractiveness by other given the quarter, this and of the our discussed increased. participation of sense of opportunity overbuilders, urgency

markets We next expect long-term as fiber the well our the to is builds have the our upsized we several footprint. most economical broadband to solution of increasing the build Fiber within deliver expansion number over years as existing experience. best

in We process. selection this and market continue our are to refine confident highly criteria

which this So to markets. making also now into let's expansion into multiyear progress our includes incumbent fiber new year turn fiber shows and Slide markets are on which XX, we the program,

XX% our are a served is while to by up addresses. expanding from This fiber, footprint XX% now result wireline driving strategy, also As the this service addresses is growth which service wireline XXX,XXX of year of total X% a revenue ago.

communities are construction we the our the several and markets Oshkosh. cluster, addresses highlighted in expansion including we communities. we Green anchor and Nampa, Bay total fiber of existing several new XX, Further clusters, recently into Slide for expanding our announced marketing. Wisconsin, announced On We in clusters are actively and Idaho the service that

contractor a addresses creating these XXX,XXX of cable that deployment Western Onalaska, just Claire, we where communities add southeast today. announced a quarter, this state; than In XXX,XXX will the geographies: Montana, and new in in the first addition, several the in we completed XX,XXX to addresses service our Billings, to pressure to out service plant market targets Year-to-date, be more Carolina, plan. Through the North total, flag XX,XXX these cluster; fiber markets, Wisconsin, quarter. announced on fiber Sparta Eau to scheduling several several communities growing service service and to third in In years. service communities XXX,XXX progress slower fiber due additional addresses, in operate working This and continues construction existing have Charlotte we footprint the addresses total we build planned over putting delays the next permitting in is complexity than and the quarter. delivery address fourth and of are addresses adding

more in on experienced For construction. we delay XX,XXX just addresses have Meridian, service example, recently restarted temporary a and Idaho, than

improve As still goals a EBITDA the we fall expect our last to our the result, revenue still delays, to year. this have reflect guidance we lowered we expenditures guidance adjusted within short of to compared capital these our be for for expect to Therefore, but year. construction year delivery range for and but

with suppliers. also demand customer We future to proactively our and construction seeing where manage lead continue are equipment inventory we lengthening times

shortages As some complete contractors to the in experienced time an example, have fiber frame. desired builds are and unable staffing

continue will on these to We you progress going forward. our challenges monitor update and

On wireline X% the Slide also connections. offset broadband residential driven residential in well due million, X% solid The increased Incumbent highlights increases from XX, residential which a the increases markets growth partially connections total of within broadband which in of revenues markets. increased contribution X% by to X% as voice decrease mix, year-over-year by product includes as showed revenues, in growth residential expansion mix, to revenue strong our chart increasing in the $XXX total.

broadband revenues as Wholesale decreased decreased Commercial residential in X% product lower as increases support connections. the primarily state grew X%, by partially revenue well Cable a broadband USF X% connections driven also the X% increase mix. to due quarter, connections, certain due in CLEC in by offset revenues to timing.

costs increases in sum exceeded our expenses declines in real current addition technicians, include costs XX. we into experienced financial necessary our as X% up costs legacy business. as yet new results markets, in market growth revenues Total for supporting expansion X% to Slide not to related increased to the support as marketing, shared and which Future market due to growth. broadband as service Cash growth is sales, the combined quarter spending future estate prior fiber the from the subscribers our from on direct both year well me expansions reflected shown such as increased in and new let revenues. So our

million, adjusted X% by offset As as spend a Capital core decreased in million as $XX fiber increased $XX to were expected. EBITDA down to operations. on were expenditures investment result, deployments X% decreased

Slide on guidance. provided we XXXX And XX, our updated

EBITDA line right expectations. that narrowing in ranges on we And closer slightly we the now and are the are with adjusted increasing and revenue. our midpoint are end to our of revenue Our the year,

expect be We revenues between $X.XX adjusted billion, $XXX to and between and million EBITDA be to $XXX million million. and $XXX

delays mentioned and construction million. It's challenges success. expectations and are to And look the results everyone sharing final to XXXX that associates expenditures I I am lowering $XXX grateful. With forward build our between capital I in all for quarterly work for earlier, the hard February. to our contribute we with and our be company's that, $XXX of million our dedication

turn Jane. over I'll call Now to the

Jane W. McCahon

Vicki. Thanks, Operator, questions. we're take ready to

Operator

Instructions] Ric is [Operator James. Your Prentiss with first Raymond from question

Ric Prentiss

out we lot UScellular ranges across And TDS. guidance. OIBDA not is the got tightened how the of I've a Obviously, you question line. UScellular and did called on Doug, First the tighten

Just understand last the about this bit type in end think a want the to guidance how high year. low if responses the towards to the take environment about or would end to or of compares it competitive what little of it midpoint maybe you head

Douglas Chambers

for question. thanks Rick, the Yes,

in guidance. the hit you -- it's on where activity end and So up -- of dictate promotional that's the really going level the promotional we to it,

of extent And goals, the going we a to the the be to that takes, lower customer successful we guidance. don't that extent very be to are lot acquisition, we're the meet the guidance. higher promotional have the end So of might end to our quite with of

credits them most administered The when are rest life that quarter half contract. service promotions, in amortized hits is equipment mentioned, promotion. to we we About expense over for our through the the promotion know, trailing of you in As revenue the of -- of [ the loss that ].

have our thing that promotional the we have that the the from So flex is in of takes that's customers. and activity the play we level really range in could that main

Ric Prentiss

last fourth And about the season as versus obviously, might and year last competitive are the quarter think what affected. you activity holiday success? COVID about year was year, your Christmas, thinking we seen still you How this have fourth quarter,

Douglas Chambers

We're pool We're that's bit on hoping switcher a on this quarter do and going customer year, to We're expecting more fairly help this to churn will expecting higher the acquisition as be robust. well. a well side.

a opportunity I to as did as bit year. quarter than this far little fourth quarter So think have better last going we we're

Ric Prentiss

be question you final a access. their it little on seen wireless talked talk call; Verizon more through you bit. is it about local, about bit And have have levels, at It Okay. a call. little guys us walk on a how talked to Can but We've fixed T-Mobile understand help sounds wireless like the yours of you're [indiscernible] little might trial to or fixed about tied state access federal getting us support least phase. possibility their

Laurent Therivel

this is Rick, LT. Yes,

one primarily that we're small our there's fundamental is what doing doing wireless commercialization access fixed and that is is the I doing what Verizon between cellular. Verizon difference it macro of off So running and of we're think cells. off trials

reach more be generally case, those environments. So small think in about where you're to dense the cells there's rural we're trying to where, that In our if right, a greater level more other I of frankly, competitors. you reach, think deploying opportunity going areas vis-a-vis

terrific trials. technical We've from seen results our

commercial pivoted And we've this trials demand. so and testing customer now to

small still very we're very Candidly, encouraged. it's trials. far, volume So

a to perspective, things we a we've and through a got -- how self-install, we sort can like of from door-to-door to to digital how do manage work develop we've distribution So got operationalization, get that. to think

So able and were amount to we're actually excited but realize operationalizing an we this in there's from of fair just into realize realize, very but about technology, go then the environments. operational lab a the work speeds in perspective. It real-world to has that not

Certainly, between Now will connect America. ] to a anywhere into the those play rural as in Xx [ to also the government as tower X costs you mentioned build sense to that It much subscriber. rural much the come it to subsidies. Xx in X.X connects between

think We be year testing Certainly, with in a to kind momentum is it of of And everyone scaling. good 'XX there's near think business. the reach an I lot so will And the upside. we've proposition behind of term, this excited. a We're pretty a got expensive technology. and

be to subsidies America, more behind behind this subsidies. upside to That's utilize areas. will that a really, underserved with require infrastructure going going there think to I to in corners bill all the it's un- require reach to the and going affordability. lot of order require the subsidies could technology come and infrastructure, It's really all government

about cautiously to a I'm in fair subsidies spending product. get line. require across bit a we time this into So the optimistic I've turn that been that D.C. goal that. profitable of don't those to we're talking to folks But going

expect certainly can give scaling of us XXXX. we'll do. kind You updates throughout see as we that to And

Operator

is from Flannery Simon question Morgan of next Your Stanley.

Simon Flannery

could on the how on had your that's you see how for if out can to that If going FAA update there? today did us thoughts but I I out you your color any Maybe the affect last Great. news and on know is it I related, play on FCC you rollout. give doesn't revenue, theme, immediately, the consumer us be LT. your C-band. is know and resolved. of just the on We to directly didn't customers. opportunity maybe enterprise latest stay What XG going And ARPU

Laurent Therivel

C-band don't the confidence think what I to XXXX, that that situation and And affects XXXX. don't spectrum, spectrum I by point, up until our necessarily I late have well, firing ruling, have I rollout it which answer. color. will our bit. -- a the be be not don't I resolved did, of think we that get mean I lot think If would about that I one of so is -- that we're affected, going any simple as impact I'd we is

about just a at. I'll perspective. of Mike move talk I'll deployment we're him XG more bit back In modernization let talk a But deployment, I'll And to how terms specifics let of cover then we're you come the little maybe our plan. little Mike, could briefly doing behind details. monetization. share about and the well I'll in a we bit from do about what is just some where continue forward But

Michael Irizarry

before, shared a is we as and Phase we're program, program Simon, LT. well the into X. multiphase Thanks, Sure.

track about our nice on the sites to and better on upgraded customers sites got experiencing and And we're traffic the we network. we've committed of are that upgraded throughput been seeing have what do. on right XX% a with So

progress, So the the deployment and we're steam and ahead. with full happy

Laurent Therivel

a just And let come -- monetization just me let back to me talk little bit.

a So consumer example. is and on XG And the premiums. see products do incrementally monetize Where opportunity wireless is mean to see to, price plan I it, we monetize let's I services. side, an think it via call opportunity don't great I an new fixed via

of the vis-a-vis customers I our I good I certainly our source attractive about to millimeter really we obviously, and key share. value I XG serve that that network on an providing experience about I'm be to those core XG to We And if our going is availability, wave, proposition. very experience, is great market that driving to as And a the quoting So quoting think deployment but us availability well. competitors. use high-quality feel C-band for profitability to speeds which revenue was based will and be see a expect you could think And is us. provide to think our

of a quality I providing that a XG always us. be well. in a will you can will that part differentiation be And been as network. for key the future point I think think expect It's it

Simon Flannery

been out on rural have on very with They focused a environment. markets just What And competitive and Great. you Target, partnerships the T-Mobile? are retail recently. Walmart and from follow-up new have just smaller and seeing the rolled

it there? seeing So you incremental? fairly change are is Or a major

Laurent Therivel

We change seeing major there. are a not

thus think continue well T-Mobile. with we compete to far, I

a proposition. having build I plus think difficult partnerships stores find talking a that's create without to network to about. that it to themselves, company-owned distribution a perspective, necessarily of and of way I think value those dealer distribution, We about some distribution trying same stores, you're good they're from feel our

supplements coverage have strong in good We distribution America rural that the network.

or effect in we a has T-Mobile subscriber from And what win share seen so increase thus far, haven't at been doing. meaningful in least,

Operator

is of Sergey question Dluzhevskiy next GAMCO Your from Investors.

Sergey Dluzhevskiy

question for LT. first My is

both the be of potentially are you And on few and where focusing trying how you and on talk your part are expanded where those to in like about your guys, cost you you should revenue Could would years? to efforts digital there think digital cycle. side? growth a a and little I expand customer as the help initiatives, bit capabilities you side now capabilities, on life

Laurent Therivel

from to Certainly, Good hear Sergey. you.

presence nice So requirement. like a digital digital a pre-pandemic, not case and was digital, It if you was accompaniment an think footprint. a That's absolutely Digital about to have, anymore. is right? strong physical to your digital store the

constructive quickly and for become to don't have a positive customers, you irrelevant. your you're digital going experience If

that numbers. good in the seeing we've is experience, our in significantly and the news digital think it invested we're I

app. So of app. Store our X in We've on average Android and App we side from crossed similar the our seen increases an over the

and you more new one just customers invest, other on the enjoying you're website. we're the doing we're of engagement. Obviously, that the terms that so have capabilities seeing experience, is And much and both, in providing, user-friendly customer places are to

customers. there, So digital for be provide you. you have with able experience positive interact scores. and a exploration platforms to you to create your invested We've to to experience higher your have for customer seeing partners we're And

areas. fair And We're long itself expect, improvements in the pivoted of in towards that's a X to seeing so of digital. going manifest in engagement. And investment customer we've the run, I amount terms

truly I think get right? in it to will digital. see adds product, the up, going service digital, People you're their purchase, gross the via run, fire via all explore, long do

the from transactions majority the of away we're a in think I way being the industry. that long

greater will the brick-and-mortar a I I digital role on matter. gross think the do add still equation. think a side role But that play and of will

to is see you're think what upgrades. on I going really

will digitally. increasingly upgrades done that be think I

a side. obviously create long your as are that over side. stores? ARPU satisfaction good The helps to digitally. you the It of measure customer is the upgrades managed on of helps the physical same you performance kind you with there expansion run the of It on I are you are the upgrades your cost think also is, in percentage trick able

by the mixes job that stores I've we're seen region, are associates plan requirements. upselling There promotions accessories but do aggressive have really that to plan seeing our the is our aggressive plan couple some those And that plan we're ARPU those months on and really so comes with able on. the So do are varying job getting mix. mix our a better. a is been of because about doing of it past upselling performance things because over good postpaid, mixes, That's our reason read some in good of are and walking associates into that that comments our we've expansion upselling happening promotions promotions one we've customers along and good seen with really

environment. the take to got able to to to That's time. investment. take You've mirror be digital It's upselling going of that going kind in

good think path. on a I we're

I think investments. we're making good

seeing but to experience our we're it scores, think more come. I in certainly

Sergey Dluzhevskiy

And wholesale your wholesale front, opportunities another kind of the question on Great. you thoughts share on if for UScellular. could

agreement For T-Mobile example, is. DISH to or recently new that partner. know is signed of than a become AT&T, MVNO and their primary MVNO coverage better probably they're coverage many your markets, with much I But AT&T going in what your

wholesale see the what opportunity deal an other road? with see opportunities you down a do to do And you more broadly, do So DISH? wholesale

Laurent Therivel

opportunities, but it, So business specific with say on wholesale, mean agree for I we call any that to I you. open on I are, won't comment

investment we've perspective experience a us deals. made the kinds positions think network very that for that of from perspective those I well coverage and

us. We're potential a of previous in discussions. I line I an perfectly experience open It wholesale that can on we've do certainly area calls. we think of MVNO conversations high-quality partner some or a think had that the offer for with it partnership to partner. can growth to be falls those a very

to the of competitive The up competitor. obvious about have high-quality be to a you implications trade-off is opening smart your network

always we to And try so balance that.

equation the sure conversations discussing. certainly it's and open economic we'll something past. had something You more It's we're that about in in it to I'm the looking work. try we'll keep future, We've have to make at. the

Sergey Dluzhevskiy

Great. the for TDS Telecom my question is side. last And Vicki on

the guys think, pacings that you out and that going CapEx lower targeting you in But you is issues, your you you're as would some past next of current based that do for targeting we XXXX. that this So move lowered annual you XXX,XXX than, before. be year your the higher to reasons now be for assuming current the chain look -- But described going of you what I to various the supply much and go could strategy of capital number you is build allocation? and on years? How XXX,XXX over over XXXX level that few pace were

Vicki Villacrez

question. thank that you for Sure. Sergey,

desired a market than us not all just is off, from slower at First me program. let say of expansion that construction quarters few deterring this

very investment future. a is program the multiyear this know, you As and long for

the confidence And we're for new we've as on our seen The doing. coming more would that in year. continue and our I But see into financials. think into substantially translate I quarter have -- can growth, will of market a delay impact in XXXX of go that next all we'll announcements top line made the course, guidance year, specifics the And to next the February. provide revenues I of first addresses we've underscores expect to program, in so really And delivered market year. into more what this that could service expand

don't market. the But delivered our addresses on until service from to guidance a capital lowered count perspective, it's capital. ready We we fiber our

of a the before number have lot things can market happen fiber farther be households. new but we So along, can a construction to

fiber we and TDS. to system. for contractor the for the to So it new and all entire it light example, And that the complete to before then to the then get up location turning has the way end-to-end inspect construction our into premise have quality over

and it capital of markets completed accounting expect see announcement -- of have XXXX. I this about these capital spending. through at way. increase I lot in our So we'll the XXXX, taking markets in us have in down which into But have start capital and increased down, and that the am XXXX XXXX. completion and construction elevated think will largely more going you spending XXXX to is And longer really we the complete of starting we'll program, term, along of as And -- in for -- of XXXX to the into increase signaling coming getting these in think substantial -- then spending come new then It's XXXX. the levels I end we a the that to our that

us. planting excited taking about opportunity this now that's of advantage front really flags in the of So and

Operator

questions, to I to would the hand call further back like no And Jane.

Jane W. McCahon

Thank and get and we us additional or comments. on Thursday questions a joining any touch you us you with very much, night. great with in please afternoon, a appreciate really Have

Operator

concludes participating. you This for conference. today's Thank

now may You disconnect.

United States Cellular Corporat (UZD) 4 Nov 212021 Q3 Earnings call transcript