USM - Earnings call 3 2023 | United States Cellular Corporation

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Operator

Good morning, ladies and gentlemen, and welcome to the TDS and UScellular Third Quarter 2023 Operating Results Conference Call. [Operator Instructions]. Please be advised that this call is being recorded. [Operator Instructions].

Now at this time, I'll turn things over to Ms. Corporate President, Vice Thompson, Relations. Colleen ma'am. Please go ahead,

Colleen Thompson

which or being Relations the and provide adjusted Chief us. to Chambers, from reconciliations. Good Vicki make to have President sections before President of to OIBDA; Finance and this guidance UScellular of before and joining Investor Please Vice highlight and on Vice the X-K, and websites. UScellular's on and non-GAAP me both XX-Qs TDS partnerships. prepared UScellular, and earlier or and Therivel, Chief morning, for interest, wireless is Financial Treasurer; thank you prepared webcast today morning, comments LT UScellular releases our websites. and Executive the We Officer the accompany offering their contributions Doug this Senior this depreciation TDS simultaneously can you Financial comments slides SEC to press Investor amortization Telecom, and and Relations We Villacrez, we and are Executive President including find the Chief filed President, want presentation for you from UScellular the and all With TDS for Financial Forms EBITDA Executive amortization, of call Officer. websites Michelle from see Officer; Officer; Vice including referred our depreciation of income taxes, call, earnings on the morning. TDS, operating and Chief adjusted Brukwicki, . This TDS aware

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

Vicki Villacrez

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

the earnings details we UScellular into want strategic process get UScellular. quarter's reiterate Directors we that quarter, in to each the have I a of and call, initiate to of for for Before last alternatives the to explore announced Board with decided as connection TDS

on We that say that is to at to time, however, comment ongoing. this active going are process it not and

take of we $XXX With every details can that, approximately continue generating into steady to the optimization to advantage make and long-term get the EBITDA due pleased improvements that same streamline the adjusted units Year-to-date, September, I both part let's cash delivered free growth enterprise. quarter. the while million business through enhance programs reducing am for order of our opportunities competitive At progress to across key by in time, positions. debt made network and investments delevering, in short almost flow. cost expenses to efforts UScellular that year-over-year

the EIP X also a another We facility for years renewed at rate. very attractive

capital opportunistic to priority, into rate businesses was while entered in to a secured remain fiber back our $XXX TDS million the loan and as And program. a environment and fund also our investing both challenge. a interest expansion current access into term order

we and our moderating our it to in expenditures our forward, capacity near Going funding spend order capital the leverage if means threshold will size term. in pace even ratio remain and within

and X, available sources Slide As you quarter, liquidity, sources. have can TDS of the see end other and combined on cash UScellular at the of including

it I'll deployment. we minimum, LT. future. sizable deploy With multiyear continuing to into over maturities by We effectively turn now until helps maturities our to fiber extending in are sheet communities the the a This manage while well keeping to any new to investing debt have and long dated short-term us mid-band that, balance

Laurent Therivel

I'm the review possible, financial the to It's turn best the important and operating August for Thanks, we UScellular. and focused produce progress X that we even X, strategic Slide morning. results If Good of to operational pleased remain to Vicki. morning, you announcement the update with alternatives on everybody. this our business of on

improving job amidst been flat designed environment. added and These realize plans the impressive services. with a particularly this results significant the challenging our top team are while First wireless our offers competitive financial very was plans that customer balancing priority Almost we're done while again the and Postpaid driving gross this additions And given subscriber of seeing financial primary growth on an customers quarter increasing growth XX% against to of rate and the the in compete ARPU our with has handset were of flooding that X% to And premium customers postpaid our value remains adoption. flat have discipline. was market we number on cable adds the rate those gross trajectory, plans. the base. companies a subscriber ARPU quarter, rate highlight as challenge helping foremost, excellent our remains track, in flat strong

other borne flat We pleased our economics that the remind customer. similar by remain these rate the as performance, and since lifetime cost plan offerings our deliver the of I'll plans you with device is

year. particularly XXXX, efficiency in in cost environment. that and we flow for the positive the adjusted for expect quarter up the competitive team pleased that our We be and in full that were quarter and the significantly, OIBDA with was really the adjusted challenging has XX% X I'm and months to improved XX% respectively, ended accomplishment the past driven, in free over Another EBITDA year. cash

of speaking spend. various with time in based environment a given being to on campaigns to pulsing competitive we're it time and from growth, factors promotional deliberate market. as the targeted We're And driving relates subscriber our very

season, as as aggressive contract. upgrades are head number us but increasing the Verizon, promotions and significant and promotions holiday of customers running competitive. we footprint. designed subscribers target characterize I incent the the certainly from that existing our And those the you'll market customers pressure And into wireless. with As to And us our resell would of XX% new in because that cable compete those traditional AT&T, for our a thus about as of percentage what includes fiercely see for also increase wireless in T-Mobile, companies now competition selling customers busy needed aggressive well competitors, is

Apple launch good is year's This a example.

You margin and to saw technology that ability it's important combined to a our pricing industry. dynamics in important and are in market result offers And is this in developments. the and note aggressive hyper really challenges ARPU. network for and tactics subsequently cable's dynamics competitive These industry that in capacity pressuring future ARPU the pressure invest and promotional shift

growth should be focusing think globally we're an the as we the and competitive While that a results keep actions required striking U.S. competitive. with industry, results, show capacity between I to financial the to on investment effectively balance our required balance subscriber pricing

growth to initiatives. Turning

uniquely Our up vast third-party of almost we've entirely for XXX,XXX to with we're be in quarter and wireless in experienced up amendment opportunity being growth a of and tower us. on low-band impact activity tenant I continues the bright XX%. rates tower lot we have To customers. that in That a revenues are Fixed 'XX, quarters. XXXX. another think slowdown believe running as quarter. spot space, had X%. And wireless the the Fixed were to strong grow. in expect date, third spectrum. expenditures Wireless finished revenue will second a majority do revenues still new positioned We industry's those tower I the and in the subscribers said, capital Revenues moderated And we

our months a continue We access few network expect XG with our to strong of able subscriber spectrum than improve received to that we spectrum. faster C-band And launch consequently planned. initially mid-band earlier earth the we're I'm further experience pleased to anticipated. than

mobile mentioned mid-band deployed soon now clearance, earlier this so operational, so customers, as and we're we receive they and our wireless than into capacity fixed us we've more bring been number upgrading that sites, faster And those sites we of can year, and as allow they be doing earlier speeds to expected. as a are to

Our our all where a lower month carried this our mid-band, XXX than will wireless significantly we've XXX that's our end gigabits are the like about of XXXX, fixed data briefly, XX% megabit using And marketing enabled that competitive wireless equipped are the on mid-band and That's with year. we're deployments. deployment is per By almost of of And traffic mid-band. our sites on fixed be really in peers. average, product, marketplace. subscribers multiyear,

going I our is customers' access However, they upgraded mid-band to usage as grow the expect do to get that experience.

great initiatives, the XX,XXX has just support additional customers months And down network down will left to XXXX. X on next the be the see devices. done we XXXX. migrating note savings CDMA base than Team We we that job see shutting of Less operation expect the XX once CDMA customers from And believe XXX,XXX away spectrum dependent CDMA network going refarm is a continue beginning our we in that's LTE over ago. down of to from are intend to more we're shut fully several months. network network and to to migrate that systems our at

always, on Doug dedication. all to continued I'll over now the hard call and want As Chambers turn I Doug? details thank results. team work more to their for to the our provide financial

Douglas Chambers

Thanks, LT. Good morning.

additions on subscribers, and prior Connected device decreased as results decline additions traditional handset due base the customers. in carriers as environment Postpaid of net with great customers well up mentioned, to we gross XX,XXX XX% competitive to of handset up gross wireless net see additions postpaid of XX,XXX. LT available the wireless and intense review a start sequentially. year a were and in year-over-year X. MVNOs Slide by XX% fixed and in momentum as Let's include down pool customer from with Correspondingly, our fixed largely continue the

sequential the we February decreased experiencing maintain due device sequentially. existing and and postpaid XXXX. we been our The past trend through mid-June a customer partially customers that seasonality churn to aggressive in-contract offers and in base. to positive in handset year-over-year for churn decrease handset the over new Also, year, is in increased part Postpaid due a XXXX to have increase

Moving declined [indiscernible] X,XXX. to gross net Slide decreased X. additions prepaid and Prepaid additions

additions, by of is In which we declined the believe competitively postpaid priced driven available pool customers overall offerings. year-over-year, terms gross of partially

XX% financial turn entirely X. a average rates to let's sales. third lower decrease declined rates revenue corresponding roaming outbound offset Inbound operating the other decrease in starting results, this retail with XX%. saw on in as revenue. a roaming our decline our due the upgrade revenue roaming lower decrease XX% was result Service equipment by and Total declined Consistent data a contributing the that decreased inbound with a roaming negotiating the The of industry, X% Slide carriers. in traffic. in revenue off-net despite our base revenues Note to a for quarter increase to in expense Now subscriber we almost

product and the result offering mix LT driven ARPU. device increase in increase higher-value side, our plans. revenues mentioned favorable positive increased postpaid This partially of by adoption the higher-tier plan a protection customer as On of and was

We unlimited of consistent continue that's now the are to see just of the growth ago. up handset plans, postpaid XX% plans. And year our our quarter, end tiers customers highest and X XX% these of tier higher from on of in as

results X Slides Now and tower let's on turn XX. to

see, diversity years with ago. a We've can both and with you is insight our X.XX%, quarter As composition disclosures Including delivered provide UScellular another additional X.XX% growth. our currently X% of also revenue tenancy added ratio portfolio. to you of the X up sites, from quarter couple geographical business the this carrier tower into strong tower just

you within As a about is the large distributed carriers. XX% them not are with geographically see X-mile among towers we our quarter, tower And tower a well having last of that wireless radius. our revenue well positioned competing can noted

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

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

operating XX%. total declined revenues As noted, I

sales, System declined promotional expense roaming offset expenses However, the controlling focus in device costs, primarily decrease expense. X% revenue. our cash decline decreased, lower bad and decline with and the to more due expense lower costs previously this mentioned steadfast debt off-net lower on in than operations

sold expected promotional savings associated million increases million realize ongoing help will expense of that by device of decreased we related on of we mitigate LT mid-band $XX sales expect deployment. sales result in XXXX, approximately previously to shutdown. CDMA the In CDMA savings partially equipment associated our or costs. lower mentioned, equipment will and offset a net XG Loss savings rate These shutdown Starting $XX costs. run as of equipment our network annual begin decommissioning with less with the cost to XXXX,

promotion of previously for an As of we ran existing and mentioned, of the quarter and duration XXXX new XXXX. aggressive did promotional execute in not entire this the intensity third level

reduction expense second debt XXXX. in administrative from quarter Selling, primarily general of in favorable and driven the the decreased impact bad workforce that expenses and by executed of XX% the decreases was

related workforce full we in to of As rate $XX the we which million, XXXX. in savings expect estimate approximately year to realize we reduction quarter, fully run last indicated

increased our in driven expenditures X flow. of the cash full expect to which months our and income as invest $X by up third flow interest XX%. amounts multiyear to along our year decreased EBITDA, mainly XXXX, have year. we been this review. managing XG $XXX free million in from income deployment for adjusted timing flow in investments, XX, healthy expenses these XXXX related the strategic XX%, while adjusted XXXX cash method earnings Capital XX% the free mid-band Wrapping adjusted equity Free the slide, positive in increased we relative for operating incorporates and cash alternatives quarter ended prudently expenditures to our Both with the incurred dividend to the of million the exclude prior of September continue was

on Further, retained of guidance midpoint are of operating I and our shown the now and measures, of turn given the reflecting call service adjusted these uncertainty tighten Brukwicki. remains Michelle have in Slide income adjusted over reduced and will XX, stages we later Michelle? year. As the expenditure capital revenue the ranges to we EBITDA the guidance unchanged.

Michelle Brukwicki

Thank morning, and Doug, everyone. you, good

third to I'll highlights TDS share quarter Telecom. Turning Slide XX. for

addresses XX,XXX the delivered total date, fiber in of service quarter, end September. to quarter XXX,XXX team our highest bringing Our year-to-date our the to at

service we addresses, momentum we XXXX are from and in to up fiber where we've year goal XXX,XXX. are XXX,XXX the Given our raising the had, strong

. Falls milestone and for Helena will Wisconsin Idaho; Falls, in end that recently are a XXXX. Butte, few expect markets our Great Caldwell, our is In program the important Northwest. of all and be expansion markets markets Pacific Twin of launched we [indiscernible], are by Another our fiber the of Montana, These Wisconsin. Missoula, announced primarily and and

program this of XXX elected with in XX down through us program XXXX Another about locations. that revenue for support participate states. XX delivering XXX,XXX TDS will is quarter speeds important in up us the Telecom This highlight A-CAM enhanced increased to federal return in megabits to provide and

help per the A-CAM new of a amount XXXX. about reminder, revenue through in we our fantastic We the approximately next $XX $X.X broadband extends program for beginning a high-cost year a accelerate increases This provided existing this program speed Telecom The through eA-CAM various the delivery anticipate support year million million of [ over revenue of ] higher As billion total rural to the XXXX outcome we expect XX areas years. XXXX. to Therefore, will and program $XX receive and to to customers. serve. that is a TDS

results, jump into on let's XX. our Slide Now quarterly starting

XXX,XXX successful heard, have just we fiber results, increased our this year. with you address our As service fiber goal to service address

where navigating that we competency we see term, strong really developed builds challenges. managing proud are are our you can scorecard. We have a and in in Longer

with quarter We We the ended good so million addresses marketable X.X service fiber are XXX,XXX, making XXXX. progress. by targeting we're

served the fibering reflects fiber also our We by growing targeting This XX%. in expansion of up our markets. quarter as with as total through be XX% well XXXX. ended fiber to by are our addresses service We markets incumbent progress

of X XXXX, expecting Specifically, to speeds gig XX% of of serve plan speeds. of with was with XXXX. are fiber. gig to ILEC to XX% of finished XX% finally, by higher And addresses our our up. At the by the least half we fibered at quarter, offer We the at our we ILEC end quarter or footprint

are continue achievable. long-term targets to We these believe

with and year the remain factors, may of date. are of results numbers a to to from front and on our the fluctuate we fiber center throughout Although XXXX our pleased organization, builds our depending address delivery goals year number

broadband to projected business achieve continue cases. our We are that the in penetrations

our service you On megabits greater, XX% on can demand Slide XXX the customers XX% up year or of we we with XX% double-digit right, total XX, addresses on growth footprint see our speeds from see year-over-year. an with higher taking for that are the a broadband Shown per growing graph second ago. in increasing

certain gig the the with speeds on offering of customer base Customer we're We X are our continue speeds, these speeds even take XX% higher now end the of in and to availability X or of at markets. quarter. increase growing gig-plus of gig rates

are positive increase broadband Our XX% investments a total revenue. including results, driving residential broadband in

experienced year-over-year by As promotions. shown up increase on and in connections. to Slide revenue offset XX, X% total residential Average was partially connection a product we broadband residential mix, increases X% due per price

another steady our in with the million This of quarter X% the As right, increasing of growth residential on ramps expectation as revenues $XX quarter. these expansion to service address delivery markets. following residential had shown in revenue aligns we in the with chart market timing of new penetration revenues in growth the

Residential by cable connections. were wireline revenues as connections growth broadband incumbent and in was and offset in video increases voice in price decline flat the

Our market We to fiber consider economic [indiscernible] respond we markets. funding returns The and pressures. competitive markets program select with to wireline as help incumbent, is builds. will which these ILEC ILEC competition capital includes our in expected defend prioritization facing increasing us provide

As driven quarter, CLEC the revenues in access by expected, revenue. the And lower quarter, lastly, primarily to XX% decreased revenues special primarily decreased X% lower for commercial due connections. wholesale

and can cost see growth and the On offset was in spending. on in quarter Slide decreased residential intense This efficiencies our decline modestly decrease in our XX, is flat the of result quarter. revenues performance. revenues wholesale. the by as the Cash were in quarterly commercial a expenses disciplined Operating you focus

of million result fiber cost Adjusted prior as which up expenses. upfront shown revenues. expense X% was the cash to our quarter decrease in support results to the in are these reminder, Capital mind incurred the our of the and a here flow investments EBITDA generating include cash free and our a to As initially markets, the launch fiber. and our from due goal capital modestly expenditures multiyear of that up year over were on investments long in strategy the run. Keep return prior in increasing $XXX

our shows guidance. XXXX XX Slide

majority We EBITDA XXXX, $X.XX $XXX quarter, the billion. Even this will to keeping in in from although time end range be and are between range to million our remain Adjusted penetration more revenues though launched $XXX and than unchanged build. to it planned and billion of be our expecting for of last revenue late year, towards originally low is million expected the we deliver fiber we addresses expect guidance to take are XXXX. will to $X.XX

forward, are on penetrations, have year. communities to we revenues expansion look we we to next track still serving expect EBITDA broadband adjusted and over can our begin we means revenues. and and As our Starting several this year years, the next This launch generating grow. customers

on Consistent now delivery in CapEx. capital Moving investments to internal to expected expenditures and expecting to uptick this we with approximately million. be establish service address construction crews, $XXX are fiber our our for year

plan forward, will and expenditures XXXX. penetration size corresponding likely going of capital capacity. closer on As focus to service addresses continue year, revenues to higher Due in be delivered with and we addresses pace we the to be and driving Vicki next broadband to the forward XXXX, in fiber in to pull spending earlier, mentioned timing CapEx our Service in will commensurate of slow our financial and we our our markets. XXXX what new

service In number year-to-year. to addresses from summary, Recognizing fluctuate on achieve fiber remain we of XXXX the program our track may goals.

year-end guidance for our specific more give during will XXXX call. We

context program However, insight XXXX. of the our and address expected results on in to for year's wanted CapEx fiber we next provide directional

adaptability call that I of execute engagement In tremendous to Telecom organization Colleen. to back taking is all for together It happen. I'll turn to TDS acknowledge thank our closing, associates. to now the a entire to and on and want over strategy, amount make pulling I of the want the

Colleen Thompson

Okay.

up open now will to the We questions. call

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

Operator

Prentiss first at Raymond [Operator James. Instructions]. to We'll morning Rick go this

Ric Prentiss

much I a the tower effect. question, it LT, just the sprint is T-Mobile XX%, the leasing sprint on churn kind will shows. that color the mentioned extra you that of affect a thanks think you chance churn also the for expect CapEx of chart. potential industry be think might you had out or pie How there, think revenue but wondering First slowdown revenue, distribution through I to XX-hour Have about

Douglas Chambers

merger. Yes. first sort quarter the a fourth activity XXX had down of We about way and result and of terminations disconnects, cumulative of don't this the the in quarter. in last third T-Mo lease as year, slowed the the That Sprint lot of year second quarter a that we've occurred of

we it. So most through of think we're

with So you answer there's because don't to down bit tenancy that we a reason. additional went terminations. little see left And short respect exact can of lot think is, sequentially, a our the rate

Ric Prentiss

[indiscernible]. what That's Okay.

you Okay. us is And earlier planned. than got now, the then can households as fixed you market would on that wireless we years, over opportunity. many where far the for addressable you C-band cover many fixed wireless, the product, as help of households obviously, think the how households you've just understand do now so Can how you to couple kind next of cover like size originally

Laurent Therivel

Rick. sure, Yes,

speed -- customers. a to in It on I that more dynamic So capacity. provide allows experience prepared handle about bit the our there. also remarks, I allows us we -- spectrum both but better the it little the to mid-band the dynamics as turn mentioned to our me mean, us talk is first let

a subs the the restrict any because anywhere to attention truly things mobile sells I pay we've towers. fixed is on selling thus impact been of to number network. able do a are need of to small of stop we to putting One the very, to wireless far, And of lot very stop that

to going are the we towers demands Part on mid-band. is on how fixed by impact choose be network that on for out the the so expect placed we continue has we And roll because of it put the mobile wireless. to mid-band manageable in to rationale targeted thus been And we far. which

XX, over call the that it, you so the experienced And in last, growth at expect rate rate continue. XX months, if I growth the at a that past, to level, look high let's we've

to The full difficult product a that predict. bit of -- little potential it's final

will think to matches both I -- have You if competitively. how footprint on. it just against upgraded and for -- at cable certainly, And fiber product the and how through so up well the plays products as look mid-band could they that usage or using challenge XXX,XXX Obviously, increases I more growing come come The those to spectrum. start as see households. households per the board product as on well. though household

so because to that a back based that mobile scale don't demands know we're you yet capacity. out. the very looks And have little in like that on bit what on I early rolling product days of

we're far, Thus very bullish.

We sites. question. I probably any have your addressable I any to sites shut absolute haven't back selling stop Hopefully, down had like because said, range, dial simply answers to, XXX,XXX or needs. your based capacity the on think the going that But top it to at market is of

Ric Prentiss

that interest. And dividends those OIBDA guys interest, It to theoretical large receive question. part you think minority I'll the it's the you final in there. is from about one, slip and minority does. a When try difference between EBITDA,

there be you So with if to we where about strategic about why something X something Just minority think theoretically, do interest Would think the you should might sell some logic get what a of the alternatives interesting how why? interest, through of to Is minority item of consider might means. to line tax-efficient dividend. stock? do and that trying the you be think

Laurent Therivel

Yes.

today. operate. those comment How influence I healthy strategic mentioned, to interact from you partnerships. and as partnerships I'm -- those the mean, partnerships on not going We're I cash distributions those we do flow assessment, see with happy -- mean, the how So

Ric Prentiss

of be thing were Would maybe if is on would that about you cash tax kind -- things consideration in safe a when as stock looked methods? at efficiency is X think

Vicki Villacrez

area. we're going any Rick, Yes, comment on that in relate that to not questions Yes.

to just implications. even going we're to going but on speculate not today, thank outcome not So any comment We're you.

Operator

go at Cusick now We'll JPMorgan. to Phil next

Philip Cusick

said say we you where we So you timing no in hear there of can and are implications, terms about might outcome something. when is but or anything

Vicki Villacrez

to Yes. our of you. the Thanks, us to for Phil. opportunity question both comments. Thanks It an is for reiterate

strategic I in company That's shareholders. on best process on can focused options the or all going its announcement ongoing. X, Our and are comment interest not timing And are now. we the either. comment the on is speculate August to of that active And on I'm right on timing the all and this

Philip Cusick

a worth [indiscernible] shot.

Okay.

you're adds come back in sales and will be spending. LT, you further So that. money high even as [indiscernible] pull quarter volume -- it well? with back paring mobile the on noise near sense on the that from marketing, are to especially accepting of clearly to as make pretty And here paring the a gross term Does also, save more given review review? strategic the because back CapEx where well on

Laurent Therivel

our in we the try as . quarter, the -- level, as as can the what holiday much spend in So do match we because marketplace. is most to volume is see with activity And the we switching put spend think right, when to certainly highest we activity. we to balancing of need switching volume about marketplace. that available Fourth volume matching, available promotional the right, of that

dynamics is not or so strategic we're our of the the potential spend marketplace. And based spend spend review. what I'm see adjusting in outcomes the capital What as doing our based on on promotional any that we adjusting we're

little We that to see ramp upgrade terms the quarter, in in particularly In in pull up strong going opportunity fourth side saw our volumes. and you bit our a see an the to the spending, an to opportunity on we quarter, back be third there financial of performance. is

plan And pursuing so on we those. aggressively

capital as X factors. really by far capital driven goes, moves As been have the

nice now program. that a that And of active XG our results of rolling factor out. first have XG sites really Mike the of very job is with on We traffic. modernization done comfortable our carry XX% The have we're and team

capital our is able slow to And to we're XG. what so we're able do associated spending with

that that roll same got to with mid-band. sell performance at we're on the we helps While the we and that spectrum. strong some mobile C-band better We Where early spending call, us out, mentioned it really of product. it access see time, we replacing wireless a fixed

in of both so And of acceleration fairly for replaced thinking net is XG about by of well. capital with and it spend the CapEx as in in you this much And that's slowdown see similar mid-band. is associated next year. that being numbers year our what

driven the So and influenced by really being approach by CapEx promotional strategic dynamics assessment. not marketplace

Philip Cusick

you Okay. Michelle, if going for against I'm can that used expansion be fixed I or surprised And the cable yourself incursion. wireless. to Is defend maybe then to little into dig footprint Can a Is in alluding more the that that A-CAM you're what's can. funding X on? cable ILEC competition markets.

Michelle Brukwicki

bit fixed coming prior competitor wireless. Phil, so are come the starting had than be to for we us, Cable our little we Yes, ILEC fiber is question. a are ILEC, starting years. the thanks it's in but our a of tough And more primarily from a it's some overbuilders not lot smaller always facing of of some in into markets. competitive pressure to for a

have been now. so and We've on so focused And XX% been fiber of we the our last our for building ILEC ILEC right we've in ILEC fibered got very decade. up our

entering program -- goals We get to and those to those eA-CAM continue potentially those that. ILEC the way markets. also are fiber coming builds. a that we be we compete going be the those any to fiber or defend in And will first from see really do that have builds once those And in helps And farther going place. overbuilders defend markets from that's great a us way that

Operator

to now next Stanley. at Morgan go We Simon Flannery

Simon Flannery

for cables just something base? some sort these quarters. give out making in the in you being for time. from? kind months wireless, competitiveness about the Could the here bit suburbia a trying Was are following you customers, more few of more the Were Good to in you LT, the that the was aggressive they're in spot kind of on it more the markets? on, results the profile here I seeing to were few adds little just for you have kind where a players that of in sweet continue And Is FWA. Or here of mean of leveled last delta were the us you point coming highlight? then just on What's this what customer back there. areas? new? seeing your coming

you are side. out X last going side? more of to region fiber in concentrate And The on fiber build, next then the on your maybe just builds the or slower on year X

Laurent Therivel

not Thanks, assessment question. [indiscernible] in Yes. appreciate it appreciated. Simon, to was strategic to slip it. kudos for a and you We trying

skew with DSL. out of again, wireless. mean, mean, there's which a almost customers. a of far, believe Let rural. we've this actually product Right, I'll I we've exclusive heavily fairly satellite been a enough, right, switching decent -- enough, blend see remind that thus information blend would primary the is seen me lead And you would really there. start Interestingly low-band I which on fixed we customers, it competition to no or interestingly good is would where selling

don't we not over. It's So know. switching number a you're

they're adding they're So or a if maybe connection. we backup don't from exactly know necessarily coming who

that So we cable and we're taking taking where -- many where the But from. indicate we're mix geographical has don't from know their and in plant. cable, would they're upgraded . coming we're primarily even cases,

roll mid-band associated product. out wireless isn't game. And fixed speed so It with of as that's experience simplicity customer a installation, a a about meg we there's a product. also this lot that XXX what There's optimism of just purely positive the me gives

continues good churn down see go to on performance. the really Our to continue we product, churn

assumed had even isn't oriented might places quite it active. so We're really good in where initially cable it rural as, product seeing just be. I frankly, And is performance a

tell fiber, that against compete the places the to a where is have product, X where fiber not So progress difficult right? got you seen The we robust a place you've fiber We see dense of significant the it's got physics blend. you've I build economics if provides. can really pretty

cable, the to What's are different really, question us. things switch about X me your different for cable. Let

footprint. The first their just expansion seen a of you've is steady

because bit in started on, competition UScellular cable from cities. a was they So large insulated early

cable so competitive saw competitors than did. impact a our we from And larger

I think today, that a mentioned few of quarters XX% of our of XX% ago, our cable I footprint. competition saw as we footprint it's in

that we've simply an seen so And of competition. cable expansion

see I wireless and companies to out expect providing other that and will bit And increased MVNO of had roll larger see a providing is, see smaller we'll little I I we've cable smaller players of competition. an that just do cable expect I would to The that that. service, create players -- that service. large cable highlight until dynamic now, wireless expect that the up

the is of subsidize of that to final the seeing a cable players dynamic think amount kind larger And that interesting is start I we're devices.

because your upgrade can to. early really done. who I device, aren't pick off you see quite I performance really interesting the in you the ready that's to you one, and that's to two, and it's net that going dynamic has take wireless to because, to of you think in maybe think And who customers add to days, deal be cable can of their track service easy that's offer service what offer have rolling a customers don't positive cherry obviously churn with service. sense And dynamics

to mature to that they'll the having Now upgrade some want start inside device their to where believe with who players and have they subsidy deal to larger deal with of business dynamics. enough of churn that, is now form don't they're that customers some I cable provide

in we think a iPhone is I so cable the carefully. is pretty and the tracking third providing subsidy dynamic And the subsidies that, saw way, that that by -- that that launch, I'm

For question, hand Michelle, to it the you. I'll third

Michelle Brukwicki

Yes. the for question, And thanks Thanks, Simon. LT.

So but context asked going answer a of year And you, more about or focus. tell the of me that's prioritized and fiber to can be region. it's you to in is going out our out little next we're short let prioritize give region, I why to bit you whether as

in spending, levels. ourselves XXXX, to more to XXXX slow and it expect in a selling to addresses those our XXXX, the we in year to able given be we spend into lower, then more spending allowed that XXXX deliver been have addresses year, to start reasons. prioritizing can than So and next we as and do by momentum, and I for our year in do our CapEx plan But come to we're And do addresses. this expect next mentioned, and we has lower of we number

addresses is milestones to A-CAM and focus existing and to X program our doing in wrap obligations going to So up of our and XXXX, more so planning to getting XXXX. that lined that because up are start contractors we're eA-CAM going builds In reasons going those we the speeds we're program. the now pivot starting higher the in be of delivering to can and that engineering spending, and shift then and and

base where a we're end going not there's much we of going eA-CAM in the because while eA-CAM quite through doing that, funding But is spending also not program, fortify ramp know A-CAM that into be and of up because business So and we're as that going will significantly to then spend as on that period XXXX. more XXXX to that allow us that spending, program. coming and much help our markets to will that is at those

necessarily a our So of -- little CapEx of to next we're back of that able bit spending for it's to to really but more not we're build [indiscernible] waiting year lot off some a be be incumbent that start able sort into eA-CAM for for markets. and work on funding funding, to waiting giving waiting begin those the able to that attention ILEC

our then next little prioritize to a year. we're bit more on and out-of-territory that's expansion market So regions able focus why our

So hopefully, that helps.

Operator

Michael now Next to Citi. at Rollins

Michael Rollins

of couple follow-ups. a Just

wireline First, on side. the

for it's then you basis, points . And XXXX, phone total the you funding this the XX, as that business, to few trajectory little on look the opportunity of and business? us next on for curious, or subscriber investment or to Just the your needed curious, basis goals to update to just the terms look to when that a those on on earlier push what churn to national gross capital at of can at churn obvious an the you versus try point so the get a postpaid whether get over spend commented total And the net for dynamics. maybe in give bit the the XX goals, the basis businesses net need is where wireless some [indiscernible] XX, are, carriers down a years. improve

Michelle Brukwicki

is then let start Mike, and Michelle. I'll LT this jump in.

give of going I numbers beyond you can goals, and some give in terms guidance right XXXX I'm now, We fiber specific our but not do to XXXX context. So or funding CapEx in take It will XXXX goals believe telecom additional We had have get still to achievable. are place those goals. plan where XXXX those still historically versus that been. to a

XXXX, But can XXXX. I the going CapEx what seen you be is that lower that elevated you is XXXX, next You've for tell anyhow, to year. tell directionally, CapEx I in can

for our we cable the little I being incumbent a mentioned in just A-CAM. And about bit a of that we our are new our going markets, And be spending couple program. as less prudent We're that's in very get for reasons. CapEx. with on going and to planning

especially we program that our can work or that the can anything deferred, We eA-CAM have and identifying coming that of reduced that, are markets. is ILEC be in some needs knowing address

will things by those lower that but hub seen that. the that another third, last getting upfront largely And CapEx plays, will to markets, markets been then year, the year like routes, upfront has elevated this is And reason with spending things markets behind get done will cabinets, CapEx time get next years, on transport that means that that, those we which you've order expansion of like in couple be launched, very be spending in, get a the our all sites, launched. And be lot us. of to that's

incrementally to had an be we're years. at able what going going of last in addresses couple deliver So to we've than the cost forward, lower

CapEx to we're So year. the next that's slightly, or with down to but our also addresses going able be bring -- down that not next it slightly to year bring just deliver commensurate expecting

we're within we've leverage cost program important to we disciplined CapEx, considering we our focusing OpEx. the EBITDA and with managing as really that capital capital. as with comfortable can So CapEx today that's We're growing fiber much been of really so as possible. and And this our our markets manage us on high self-fund that and

that try So is drive profitability can. CapEx know will much able our possibly such that continue as as we're self-fund to focus to to be but to just manage CapEx we and elevated

Laurent Therivel

your question. bit tackle mean want than I answer the color simple churn a more to little yes. me But probably let the question just yes. is you Mike,

opportunity biggest performance. about the drive So we do We add to I the improve what identified which down. how continue as see talking that briefly opportunity, to you've is that our number do churn net mean churn, is

Doug past in around marketplace that the is handset that's about we his driving the trend we've that And comments in year. offers the churn thing in that and had the new aggressive prepared seen mentioned existing. positive the postpaid over

basically New and that's of adopt saw churn. We with a We those, going through existing very to means, upgrade provide offers. year-over-year holiday customers the doing something us lot hey, similar we're period. on attractive helped and plan

It's improving money to in-contract rate. upgrades, see upgrade it's not we're cheap, works. churn reason we it so rate. at offer right? you as our that but the very contract So carefully It's spend spend is and focused efficient, on those contract that have something on the then customers it you put marketplace, customers a much see to lower works in an And the aggressive in offers

that opportunity as months. we in of yes, the of do biggest the couple in So front next see us

Operator

We now at are Dluzhevskiy next [indiscernible]. Sergey to

Sergey Dluzhevskiy

but [indiscernible] in making first bit guess bit to on increasing you is LT for more My Could so talk I a for would in you're talk little if you in the about need has tower the broadly, the question could the tower business. progress revenue that a to the much number pronounced working scale you a have a larger order business. the more business? about gain still of little well growth been improve far, and What strategy medium-term more

Laurent Therivel

the spend. were Sergey, the because to on right, I that's . We've well in on -- in a mentioned doing are little macro existing industry that slowed tenants we numbers about aren't terms not the and growth the up in itself But of, it bit anything because dynamics, I towers colocation, our we've terms has marketing of slowed. let's speak X% amendments that, more I or the slide, mean, mean improvement But in slowed mean capital new call terms of towers. of we think year-over-year. it, of

and competitors as new doing entirely impact announcements, By same they're exactly reporting well If you and the our way, consistent we're seeing seeing we tower the the and our thing, new in business. with they're that see that's look as at and co-locators of same tower amendments thing. competitors their the the

for reason remain we optimistic. there's is optimism the And that Midterm, several.

to think authority The first, on no now. horizon. the way, from By [ mid-band right And plan industry spectrum spectrum not seen is though does that you're talking my whether support releasing, going that otherwise. going that auctions But way convince it's they're them it's best The It the ] the the into macro haven't from FCC about let as efforts to means the able that consumer, customers, a What NTIA, spectrum denser me wireless near-term perspective. mean? be notwithstanding that's to no the to increased get enterprise, there's try XG, just grid. to demand a demand be we have start nonetheless, spectrum whether we there's I travesty. does the obvious from even with

We that. have You a map either road on have to grid. put the towards currently existing don't more spectrum

for differentiated our towers business reason other And that for proximity tower good business. think to to grid. particularly they're to their it's for denser are business, And good I is towers. so need, our particularly particularly have of support grid the say a going going that densify in a tower competitive in tower our it's and is to their long run terms wireless good And companies are if the that I

towards going the his within differentiated. and network the XX% doesn't are is as have of in higher of mentioned portfolio higher to towers Doug And means be XG and prepared another those particularly what as tower remarks, we that X our miles. bandwidth, tower needs move towards get

as that a to you Hopefully, the long-term formally folks fact kind business the more you to below support densification. that with existing tower only wireless view is our portfolio our we're competitors. remain capital. to growth the I why slowdowns not and long-term we're seeing, it. really that we segment, near-term colocation about is that segment. in And with some companies The about going really this couple about upside that of And That's that that thinking portion as say growth back notwithstanding have sense a and rate the densify are already of couple our segment. gives optimistic I of on pull how well this positioned significantly so in

Sergey Dluzhevskiy

both Michelle. for and second is And Yes. my LT question

kind earlier MVNO So reselling year, government companies stepping efforts, collaboration both relationship, talked management for of funding about products, an together. I including up this applying other potentially think of each

And you're sense where it collaboration you if government or XXXX, UScellular wondering bundled markets year the kind services was in you it explore of on are funding guess, end process. what other the a to possibilities out or for I this sense collaboration have of fiber in thoughts So makes bid to broader offering. close roll to [indiscernible] does I looking other apply funding to into And to of together some for degree any make

Laurent Therivel

talk about Is and how thinking Sergey, she about are that. I'll let and MVNO TDS Michele

In terms on of X collaboration opportunities, of keyed you them.

explore opportunities where can to co-sell. think I continue we we

pilots footprint We serve a but overlap our overall opportunities wireline sell where UScellular's footprint, overlap. if where have see relatively small multiple It's far TDS's as we to fiber. products, particularly running market continue for do, as we and and to there's us

[indiscernible]. You

that have we I parameters. states wait think see the interesting But to be bid how are define and to really could a the opportunity. going

with going geography Let state a mean. states cost whatever not the then let's a me geography underserved you all would X/X that of me a is bid are or in homes just effective explain of the have. partnership time to if technology it's If about choose or obviously, have connect they're to fiber of please put and a geography And almost solid certainly the of call TDS. and and with geography, what already way and It's this county. going to approach set to connections on it, that sort, including say, and to clear that, to state what any should states players it not X/XX create we an partner best to to think TDS, but existing going homes I connect have not companies cost wireless to solid are it, this with there's is, that's with going be thing that it's fiber. Beautiful in effective because I

choose bid where we'll think be well for we those states approach. areas to that So positioned particularly

much look to they're opportunity on players, The a second former with this right? opportunities. some take, based they geography and for let might instead, in We're could going fiber before say, situation, whichever see take define with define they is Please can you it's bid would I I'll more could players. of very talk okay, connect still about approach, partnership they the out, bit state bid well, you whatever tell. swift, the say, whichever particularly then really I the seeing to that could to those wouldn't try could to okay, we're rest which take come really now can there they collaboration to could telecom. and the But options have potential it don't of only that going officials, be to like. as fiber. they connections, round back you conversations first leaning start approach different a and In to plan trickle what is state whether my lead going would Can a -- think little for fixed area wireless with for at it's to And Michelle the play early they might to she'd you more towards to. homes? cover approach satellite personally be think, we second full jointly. good wireless like there's MVNO what homes a think But but

Michelle Brukwicki

We're for Thanks, negotiations launched It's we going product stages partners. are getting currently LT. called MVNO TDS so integrations Yes. and TDS final our with an to MVNO, making progress on in Yes, contract the Telecom. be for Mobile. great of

the We and participate the that program. have are so support chosen that program MVNO member up and to an we to NCTC they have with selected sign in NCTC partners

working However, UScellular. with we will also be

chosen. be leverage to in where has our footprint do different we overlap, partner the that carrier, happens, geographies Where does and that's NCTC does Telecom's then to overlap And about partner we TDS overlap to past, be mentioned Mobile. served a wireless the will offer we've expect UScellular not As have with that UScellular and TDS our of by could XX% UScellular. that

close, in next So new have TDS to product. this we're the and very excited few here getting launched expect it months. we mobile about within very We're

Operator

Ms. to Thompson, I'll for this turn you at comments things any back time. closing

Colleen Thompson

everyone, good Thanks, Have weekend. . your today. a for Okay. time

Operator

you like Thompson. UScellular day. us Thank Call. all Ladies you, Results so gentlemen, and and joining does it Third the conclude Quarter for you Ms. all We'd and TDS Operating thank to a wish XXXX great much Goodbye.

United States Cellular (USM) 3 Nov 232023 Q3 Earnings call transcript