USM - Earnings call 4 2023 | United States Cellular Corporat

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to TDS and U.S. Cellular's Fourth Quarter 2023 Operating Results Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded. I would now like to turn the call over to Colleen Thompson, Vice President of Corporate Relations. Thank you. Please go ahead.

Colleen Thompson

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

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

Vicki Villacrez

ended yet everyone. in navigated you our look for doing well goals. are you a we the organization, hello, hope was and place well. we'll I share and year we last into at as it challenging back quick move XXXX good Colleen, year take priorities XXXX. teams year and morning, you, a Thank and the the Okay. XXXX a with This also

the we've on Cellular. reiterate into I alternatives get year, review on announced as that August we at a of U.S. embarked X, strategic last to the we want Before details,

and the interest U.S. comment committed shareholders. path ongoing to Boards, both that Cellular, process company TDS are going is the today, and remains along it to on and best to in management of say not our that of with the are a We except that

Given the updates not nature concluded. until of the we to expect have it do is process,

Now talk businesses, to competitiveness improve customer investments experience. order make In substantial while about XXXX, let's the our we in enhancing to our in continue the business.

and Over Cellular strong footprint also to invested XG rollout the in top delevered TDS XX%, last X investing Telecom Telecom's and growth free in XXXX to flow. heavily to balance by continue has ongoing with its generate years, investments line progress as modestly XXXX. mid-band bottom on will cash and up made positive it for increased U.S. its evidenced XXXX. U.S. for and expect continue guidance need Cellular total setting deployment throughout by the

debt, financings to isn't have to shorter-term fund our interest want pressures X.X%. average to perspective, high appropriately The you with a not can in of maintaining we liquidity, While goodwill all some rates charge current rate through legacy environment Telecom $XXX have and managing note of goodwill in help of ended interest access enterprise This fourth TDS the the reinvesting year that the we debt moderate I'm in reported We cost high and quarter, network adjusted we eliminates our consolidated weighted sizable for charge also both year the factors, that CapEx, environment. long-term noncash investments noncash EBITDA interest full EBITDA of due rate led CapEx programs, our capital does cost conjunction high we adjusted priority, and the amount our still on preferred million ILEC mix the maturities XXXX and interest We pleased time. I OIBDA. From that quite and TDS given are allocating time, our primarily the TDS impairment and see right reduced for in while rate OpEx which due Telecom critical maintaining in our and of the was in investments. discipline environment, towards plan and Telecom to both cost markets. on investments rigorous slowing believe TDS' a that remains expenditures. goodwill at equity debt combination took is or at XXXX, to as competitive And annual assessment. a same increases focusing adjusted impact a a charge capital rising guidance. Despite

announced take the our the a the turn businesses their hard also I quarter XXXX, all raising returns to moment I'd its our our from in like as as modestly Before over, dividend, these call we thank to saw for to and and exceptional associates TDS work rate dynamic of first today, balance times. of earlier probably you shareholders. needs dedication

execute our to now to well positioned that, priorities for turn against are over We LT. XXXX. And the call with I'll

Laurent Therivel

My Doug in more on morning, Good are focus cover the I'll the everybody. along with priorities a going then then XXXX. annual highlighting will guidance. quarter Vicki. but primarily to our XXXX, results, detail achievements fourth to covering our in for key this morning you, remarks little turn Thank results

reinforced I subscriber So Slide our And goal to are financial a had was results objectives that our reflection XXXX of the deliberate by think balance on with in properly goals. We've reviewing prior let's calls, approach. a start consistent for that X. highlights we've message that

do throughout coupled able momentum extremely flow context and As solid competitive growth spending. add we and with we guidance on was for so in EBITDA cash operating our disciplined ARPU, adjusted efficient year, subscriber through of in XXXX, discussed driving an the challenge the delivered were environment. We to growth our and

year plans, and as our service year X% exchange year for device how these in our year, time to full with value. offering our the And X% was handset increase the our in customers of promotional plans XX% the we pleased us flat Many a on up as really a provide postpaid X% generally since from plan plans, they're For EBITDA. Last adjusted traditional with performing. of this growth and this ARPU the in from full benefit ended first don't I'm plans year delivered expense. we we incur customers postpaid And it's reminder, these same of pricing a around ago. lower of lower economics options rate

in moderate contract XXXX rate north that's Our was and just from average for points helped year, of to XX%, prior the us X.X up that churn.

that's churn, competitive the For and aggressive both we and modestly the full nice given year, result postpaid reduced environment. prepaid a

growth initiatives. to Turning

reached $XXX growing and in X% Our year. milestone, the third-party tower revenues million a crossing revenues for

the tenant slowdown as in impact moderated expect has the amendment As said, industry I we in last and expenditures will I and revenue activity, we going demand XXXX. That for being of growth our near-term has remain towers. long-term and to bullish quarter, capacity new capital tower needs rates for business, require wireless activity our tower year, that outlook industry on mentioned although experienced slowed, last a the drive densification are that's also going the the long-term future to

unique of below portfolio in We average are that industry terms colocation. have the still of towers a

we of have lot to a So opportunity grow.

a We wireless. up also fixed XX% have from ago. with customers, strong year momentum We XXX,XXX the in that's year finished

growth years, a reminder, has performance X last as with vast that product. spectrum. And the of the been majority strong we've on low-band this seen Over

our speeds able cash leverages we we're network offer fixed and is spectrum, mobility we're where to Now wireless mid-band investments, to be means to a Since believe rolling the same higher to going out product as the same cost-efficient capacity grow is that grow and that revenue and this deployed. flows. spectrum

disciplined through year, I very the we X% over increase we prior delivered As and did mentioned, a spending. in and so EBITDA adjusted efficient

SG&A. In is the cash usage This year, and expenses on impressive reduced operations in given the fact, the increased for XX% network XXXX. LOE, full system almost we across

modernized XG. that Speaking XX% by about low-band network, is of carried for our the traffic of sites are

we'll of shifted cover XG to focus of with our XXXX, be best network build-out. deployment. the mid-band efficiently be technology rollout, And By modernization have We sites and on multiyear we deployments, our the data this about possible. XXXX, plan from reach we as of expect spectrum. order running to targeted as half During POPs to mid-band are a to most almost our XX% customers mid-band, with in previous our will to this with the equipped that similar traffic end

of network, migrate them network great are and provide job CDMA a now customers helping mid-January of majority technologies we more on better Team vast experience. on our year. the did sunset in our a Finally, network that in the this advanced

Turning to consistent. Slide priorities remain operational In XXXX, X. our

we're XXXX. delivered We retaining still and Our We we're feel of the top up priority to and in promotions, higher terms there's heavily financial pulsing remains year care grow last to offerings, aggressive focus in retention to balance expect subscriber nice ensure anticipate modestly value and on to our customers ARPU that like expect growth we bring taking and again it of we upgrade throughout customers promotions to room year, offers, to them. with plans discipline. growth

to For fixed wireless in XXXX, we our momentum continue. expect

mid-band provide of customers, addition the spectrum, can our carriers better experience wireless enabling to and other compete better With cable against us for an we providers. even

to to to not spur communities digital support flow single customer tower connectivity programs and in cover term. We X in be closer on coverage to being more Service that in carefully. in the mentioned, many needed. we population hard-to-serve and once out further I've and year. in Fund. In XXXX, Washington, probably And investments strong working reducing multiyear need and to positive it's success grow, need upcoming the the past bridge cash to enhance on to but just rural would Universal to that a early divide. have spend less the We've density without throughout environment not opportunities those of we been like be are rural plan help more sequenced aligned these as to U.S. networks I We our at programs network can also As of help With to of calls, in areas, XXXX. Briefly, mind, there's challenging near Cellular able bring America, had we there's still reduction high-quality efficiencies all the more XX% of 'XX, for room keep to low economic expect for covers America. the level but to discussed saw moment pay rolled efforts pace that costs in rural the XG the see they revenues in you deployment intend -- a cost and the program. updating I'd we that again be mid-single-digit in to expensive

for enhance that effectively it, businesses allocated broadband across XG billion program fund, Program. for and connectivity big the the to believe first allocated The country. it the is Rural And XG connectivity as to the allocations be BEAD it dollars. across place. And these as second the know allow America are of $XX.X to such, country. billion America, made and spend before a Fund dollars we efficiently. And to is as there's owe That's that. homes XG has course $X improve XG all X over nation to you And reasons is for the the prudent And Fund rural BEAD decisions to to the the take funding we

fund the then fixed-wireless Illinois further far with First, BEAD we wireless covered access have significantly deployments and that default, opportunity into deployments fiber XG BEAD. And have will, that states our BEAD by so rural within that and second, fixed-wireless by territory, Missouri Nebraska, coverage XG And in speaking deployment. connectivity Fund plans and mobile several of aren't tower the deployment. XG fund of And today, including XG areas will reduce areas connections their that areas. included can by in after into bring fixed density for seen we've BEAD, BEAD to will funded those will are the and we cost BEAD, fiber mobile encouraged visibility in expand lack some

a experience in said a product BEAD can before few to of time. to to lot a me it we in on I deliver relatively let the geographies with working off so. And do short on speed going the have in we're I a broadband thoughts and and requirements we underconnected And finally, of on to that just see As meet continue guidance. a period and Doug, hand this, advantages compelling share the past, strong states

wireless Cellular. assumes Our that's competitive efficient industry-wide reductions capital cost continuation of a with spend includes a at guidance cable environment. an aggressive, And U.S. from and focus competition That coupled players. aggressive on

to time. flow. commitment Our of cash maximizing capital pulling available to customers. And generating measures thank return to for be hard We'll over ongoing our focus team I'll entire improve the over on levers their free remains to on turn both call serving positive Doug. want now while work these the I and the

Douglas Chambers

Okay. everybody. LT. Good morning, Thanks,

our of results review on customer with start Slide Let's a X.

partially environment device For line to and to mentioned. year the XX,XXX include competitive the due our the additions in previously strong churn a as largely gross quarter, largely an correspondingly postpaid decreased were increase fixed-wireless well in results intense LT as XX,XXX, additions handset in-contract and Connected by prior net results decline declined rate. with the in that attributable

additions gross we customers on continue an was based Moving to by and pricing XX,XXX. result, during of a to XXXX, improvement postpaid churn mitigated driven and to rationalize a the in X. enhance the offering This $XX,XXX, our by lower-end Slide due Prepaid national both prepaid retailers competitive additions distribution with offerings as as adds, and prepaid digital of reduced lower additions prepaid as net prepaid gross our of full suite declined partially pool which prepaid products of number is a decrease gross decreased in availability profitability. we our engagement prepaid environment,

XX. Now the retail delivered revenue solid a the are Service business by decrease starting million a long-term revenue on partially due let's LT cost The X% by financial growth, largely increase driven promotional are and business. which revenues, of in base, which on represents of average declined as opportunities $XX in an postpaid tower results, our shown with we to the third-party a ARPU, amortization. Power results mentioned, on to was bullish X. Slide mitigated X% subscriber tower Slide turn quarter decrease in

geographic diversified quarter, revenue next towers standpoint. last slide, own from disclosed the a are On as distribution our well and

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

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

plans adjusted As decline impact in lower of equipment equipment was levels lower rates, the of than lower income. Loss resulted partially in transaction the across we lower the higher XXXX, decreased a result transaction, cost sold more however, I operating selling-related upgrade decreases driven with in device sales. Selling, and executed by decreased and expense, industry, general equipment discounts. service debt or customers second continued ongoing promotional driven revenues workforce and quarter costs mentioned, adoption declined to X%, transaction expense in a the in contributed from on Consistent in eligible for decreases, less categories. sales decline higher expense XX% expenses with this saw administrative equipment rate volumes are which bad per favorable of to decreased not where volume offset expenses discipline of XX% of increase due reduction X%, by as a flat which

Let's turn to our XXXX guidance on Slide XX.

growth of Our we financial XXXX modest promotional subscriber our with growth a decline in as guidance base ARPU to contemplates subscriber XXXX, competitive environment the discipline. balance impact highly and in continue

CDMA of defections as customers not substantially the the new be our the have customers defect, down XXX,XXX XXXX of we $X.XX reflected And revenues. CDMA January in our the these operating marketing customers by network XXXX. million beginning upon ensure of CDMA perspective connections, approximately ultimately reducing $X.XX both impact results, service is our service in income to able or $XXX shutdown. customers expect and mentioned, remaining $XXX at XXXX. cost sales work $XXX had We and to This XX,XXX to impact provide and include revenues, ranges these approximately adjusted will continue the access as be to to and EBITDA. These to revenue with to teams billion network. transition LT ranges reflects XXXX of our $X.XX At devices in of to we still to from billion million service adjusted shutdown, are in down new These in shutting will million billion of the devices the however, our churn time from great a subset the that customers working CDMA

is million starting In down $XX XXXX expect addition, accretive savings we rate in projected the our XXXX. Further, shutting to run annual network result CDMA income. CDMA network operating to in to shutdown expense approximately be adjusted in operating

million the the $XXX turn to prudently now our we invest business. I XG and of expect to our of while over flow we For free level call capital cash deployment this managing Brukwicki, the Michelle? $XXX will Michelle expenditures, million as between mid-band to continue investment

Michelle Brukwicki

report everyone. accomplishments on you, pleased and to Doug, Telecom's good TDS on Thank morning, I'm XX. XXXX Slide

successfully on strategy with XXXX in XXXX, all strong which momentum our executing ended initially We many communities We us growth positioning and that had years fiber an We target, our began initial launched. In delivery XXXX. are well expansion address ago. fiber of XXX,XXX our That's our is for XX% this team. up quite service it's new for accomplishment XXXX, fiber by we addresses. from exceeded goal adding XXXX marketable

penetration. focus As also we on broadband progress we fiber our growing deployments, make on

mainly revenue year, successfully expansion we finally, needs enhanced the total, markets. X%, with XX delivering of we grew annual broadband for approximately address high-speed regulatory markets, funding our For And the rural which the connections provides in A-CAM $XX in to XXX,XXX $X.X of most for growth That's years. total million next broadband us addresses. from our in secured support billion broadband to exchange

XX. Turning to Slide

the describe TDS we vision me for have Let Telecom.

fiber into types, We of this transforming our and expansion, cable are a ourselves through all company. in investments We're ILEC market markets. broadband doing

to First expansion is XXX,XXX XXX% fiber, our footprint They years. we next continue in addresses several our plan expansion and markets the are our our Today, in have over fiber we expansion growing service markets. program.

Next cable are our markets.

enabled of more going our And fiber fiber markets, wireline in refer incumbent approximately which with We fiber. this our certain to and service cable X-gig add we XXX,XXX have our in greenfield markets and as cable opportunistically which DOCSIS in we new today. areas. And are addresses, addresses X.X speeds also forward, already are using will finally, XX% ILEC.

to those working even us for We've over meet more Enhanced addresses over of XXX place service speeds in to to our ILEC are fiber just several decade. been over next will addresses a up. bring higher have ILEC put down years. XX% A-CAM second help to builds and E-ACAM fiber today. second our We order XXX,XXX required speeds the network the megabits into expected The megabits per XX of are per take doc.

in of you how see, have our as will customers plans each we types. can serve for So we market

We have that many builds ahead will investment our opportunities require and expansion spending. with fiber capital of us E-ACAM

projects leverage will to pace these and capital to consistently and we've and our spending manage we investments stated, on prioritize our prudent stay within As levels. continue

Telecom. Moving to longer-term at TDS that XX, I'll goals Slide review set our we've

goals. been have these solid We on progress making

added First, fiber across the service quarter, our total the is ended entire fiber to footprint, addresses. XXX,XXX We date. fiber in highest fourth We addresses which addresses. we're X.X XX,XXX marketable approximately million targeting our year quarter service with

we've accomplished So X/X our already. of goal

We We We expansion finally, fiber. incumbent gig to finished to are are gig our reflects of our fiber progress a least we targeting as to with well our offer and to speeds fibering of addresses our combination with markets total X.X service XX%, up XX% our XXXX markets. And expecting served at growing by higher ended technologies. XX% that's fiber as of XXXX footprint. through X and be fiber this of or XX% in at speeds, DOCSIS

program the markets. fiber to our of broadband penetration. business metric measure important graph case broadband is and success expansion penetration Another our our The shows for expectations lower-right new

X rates generally state, XX% We of achieve which expect in a year to steady penetration about or X. is

with exceeding or that year-over-year. of broadband higher total megabits Shown or case for the gig greater, we Slide see rates take choosing increasing expectations are addresses XX% can per choosing and side on We XX, XX% growing or X you the are of service at broadband we customers quarter. business grew slide, end footprint. On same higher our residential speeds, at the are the of second XXX the time right that XX% our we're our meeting

results. Our broadband investments positive are producing

in quarter, and revenue cable connections more This markets X% in shown expansion connection increased connection promotional the Average losses increases residential adds offset X% was our on the the in largely fiber X,XXX Slide partially to product up broadband copper markets. was had from ILEC in residential increases XX, by in per to residential expansion activity. broadband than offset which growth markets. Net quarter year. for price the by mix, net contributed in due As a we driven additions and

the the X% on market grew in right, chart the revenue expansion shown residential million. As $XX we quarter, with to revenues in increasing

full quarter XX% addresses revenues year, our decreased our As the residential some of X% increased for and the financial service commercial were X% expected, half as Almost our I continue markets. On declines. XX% the share in wholesale XXXX offset and highlights. to quarter CLEC XX, the operating revenues we of in commercial fourth back completed as fiber Slide Total will revenues decommission the in year.

to for XX% quarter decreased increased and As X% launched and expenses up initially revenues cost markets. Cash in community revenues grow. X% in and for upfront such, before penetration get ramp a grew year. in Adjusted we X% down Remember just are to starting the the was the year. are those incurred EBITDA start quarter that to the

to due had and opportunistically in service prior our very starting we EBITDA were expansion management We $XXX in increased resulting to expenditures more builds are forward year across cost deployment. We our disciplined year more fiber now million market improved this investment great chose revenue quarter. momentum with of growth to an in see Full get and originally than with up is capital which we along addresses adjusted pull organization, the planned. capital XXXX fiber so from

years. On XX, investment also benefit more provided we upfront required crews, XXXX build guidance We costs in which expected internal to added future in but for construction XXXX. are and Slide

driven of to our improvements $XXX continued goal forecasting copper between markets. expected growth EBITDA revenues are million $XXX by be We top revenues, ILEC residential $X.X reflects pressures telecom to primarily million is of billion offsetting expansion and in from our markets, line in $X.XX total in our XXXX. Adjusted This billion.

our to XXXX, discussed, get launched. new markets As in previously XXXX upfront incurred expansion we and costs

knowing spending is years; systems us, construction the place in reason is the into million we Again, With second, capital last meaningful $XXX certain resize capital $XXX put invested can commensurate financial will capacity. our is will pace with XXX,XXX behind areas. deliver supplement expected expenditures we ramp means of XXXX and foundational E-ACAM and we be have initially our number our addresses we CapEx we'll First, spending in provide our increase. In and markets, can EBITDA incumbent and addresses leverage following in the all our launched. spend our have E-ACAM both builds deliver capital we We some year. Along that planning also for That over and XXXX. And up to capital pulled service finally, until of expected and after fiber with have believe see we several in those our CapEx crews in out engineering not been internal markets spending doing XXXX, expect of do spend XXXX slowing grow As in investment on markets, the lower expenditures fiber coming adjusted that this be to these XXXX. upfront to operational be planning These in penetrations to financial back in in forward us reasons: on expect builds addresses. during revenues crews building to expansion about flexibility; lower be in We pulled our our so pace XXXX, another with own and a and XXXX. that capital we're between are we to million because projects service soon. with for we said, capital be that, fiber we'll

we XXXX, our Although capital spending be efforts. down be not sales slowing fiber is will on in new lower to builds expected

all our focused will broadband deployed fiber across revenues addresses on We during of penetration up and ramping very XXXX. be

I call, turning again Before thank once the over want team. to the

year an of momentum, evolves. again XXXX lot amazing execute and The and of who to I and a has Colleen. year. challenging the navigated the the they dynamic call We can what to pivot have We turn time as team group back a now and business forward associates ended with look demonstrated brings. I'll

Colleen Thompson

Okay.

a be related question. as ready for reminder, will review strategic are the first answering not we the today. Operator, Just of U.S. to questions we Cellular

Operator

[Operator Instructions] James. from comes Ric from question first Raymond Prentiss Our

Ric Prentiss

questions. A couple of

filing there's And at to that for, says I follow-ups. of X surprised a people it I've First, what's got shelf quick USM the or I us, shares. depositary mixed a that Explain maybe guess, shelf? purpose think preferred shelf little are debt it's other some a

Vicki Villacrez

the to open. first made at Right Cellular. both actually we at all really U.S. shelf keep we're and filing, This off, an TDS giving is Ric, ourselves shelf Yes, flexibility now, a our in in filing it at Cellular, our administrative expire conjunction at it's May, this And U.S. point, getting with set with shelf and of to filing. we're XX-K our shelves. the replenishing was ahead and specifically options

So this intentions have to specific now. at don't we any point, really current use it

Ric Prentiss

Okay.

talked question LT churn and Second the on gross Doug, you talked postpaid adds and side. is, about you

tick retention. be attempting should get to 'XX, there X, obviously, universe? going into going I third and really Looking at of competitive to to seasonally indicative the in in churn Or are even had you're going Slide churn back focus the levels? down we a you about is we fourth also been quarter to prior on mentioned what up you on kind side, think think 'XX of year think is happening How

Douglas Chambers

about on our with when churn at systems that increased collections some things had you look the to pushed One few QX churn, that. points due involuntary with from some based we QX X basis about half is A of queue. quarter to that got was issues fourth

promotional So to that's on one in investing very dollars time in recur. during our retention XXXX existing we're and our of lot focused maintaining going that's as customers. a not his And mentioned remarks, LT

were to good XXXX some our in you postpaid highly signs. or our early on churn handset in we've say churn will And in goal -- particular. down. 'XX, So keep focused is to seen expectation, I bring

Ric Prentiss

we've industry relationship why a not on kind tower slowed the in in talked has bit. cellular right, then reporting, down Cellular And update cellular the in place wireless Okay. put in us not little contract tower between of past, segment, U.S. Can place put as between spending as you obviously, far there. pressure CapEx U.S. contractual a thinking and I Cellular know towers. anchor about about a segment U.S. some why U.S. towers and of the wireless.

Laurent Therivel

Ric.

a from I slowdown surprising. X that mean, So there. this questions -- I perspective, industry-wide, of is mean, is first not kind the

the rollout. they're their As primarily we've carriers with complete other both wireless heard, CapEx, in mid-band pullback all

so seen new pulling in amendments. from that and you've a And everybody that perspective, bit affects And is also results. all tenancies, back it tower a earnings other companies' affects spend the

bullish not we our remain that. Long do so to And immune towers. we're really on term,

If place I they've strategy, is I sense their no come. have I the build-out after We the breather SEC the now. with MLAs a There's without right wireless fast DISH I got can that, in different all to carriers. new on industry. but hitting a have topic. sense strong horizon. forward mean, further believe, capacity in what's more last doesn't is their is even about obligation, going mean spectrum to authority the wireless taking My expansion knowing on We spectrum talk my drive this

no so spectrum there's on the horizon. And new

way to growth long-term is and radios the tower be more to add for So going more the segment. more and means capacity towers, that

we so see optimistic in even And to remain a did bit slowdown and in expect though of we slowdown it that about increase we a 'XX, 'XX.

continue can't once on separate question and frankly, do as it, things is to this this, it one you you far those transparent dial segment reporting, your to it, evaluate about that we back. As be of

and disciplined and we're so deliberate when provide to it. information provide we trying how about and And be we what

of terms towers, have our in that. you on we have more We and others to heard desire a provided information and

separate pull the but tower we continue something business. ready And not be is more segment we're something to in that future. The that on provide trigger we yet, may do just the detail on so reporting to that

Operator

Morgan from next comes question Our Simon from Stanley. Flannery

Simon Flannery

To any you off, to any start the exposure ACP businesses? sizing across of do have

Douglas Chambers

do. we Yes, Simon.

under-index in we're So ACP.

customers. We have XX,XXX ACP about

we so have lot there. just don't And a

that to working landing go current is the the extent are those expectation. does customers teams ACP away, soft which marketing a giving Our on

exposure. the is minimal And short so answer

Vicki Villacrez

Yes. similar And very in TDS side, Telecom Simon, the story.

try a XX,XXX ACP, to We new winding that to provider, working and see customers all not order and looking ACP be who in customers. product also but have the attract we'd are about in that actually this of FCC's try of we, might as them. serve and them enrolled There's a got following happy find customers customers the be efforts those with an of to There land broadband for place too, exposure with to other may companies terms right in we be direction to little customers program. to there those for in down we've We're might opportunity. us

is our and anything guidance. be included should impact in So minimal

Simon Flannery

And helpful. comments 'XX -- some expectation 'XX. the the or is any versus looking trends Great. to And affiliates, any growth wireless similar fairly seems on at there in on guidance, right? that the That's expectations just that? EBITDA then contribution it very on like Is the for

Douglas Chambers

to relative be you're We're 'XX. saw Simon. exactly what that 'XX in right, flat Yes, you expecting in to relatively

the So no we our directly distributions, And changes entities there. don't those but significant is flat. control or obviously, pretty expectation

Simon Flannery

forth? processes and your when and challenge take we'll of awards FWA so know about place role actually what's latest actual we're when forth. view so talked on more Great. states, know the I And I your one you going on last program on with the timing. then LT, know just about and the the But In see the BEAD sort through we'll XG. working

Laurent Therivel

start So I year. to flow late probably will this think Simon, dollars,

of uptake bunch of one -- BEAD is be over to those going Or other, to of call will off BEAD it, sequenced let's or it, overhead going is you It plans. of quite expectations majority success? of This call terms first of associated a come whole [indiscernible] X one fiber probably the plans, plans. a, of in get, to My aggressive with to out also funding is take expectations pricing states bit of again. XXXX. start think be expectation with have they will a could in interesting that plans call I see coming expect all a it how of be a will tremendous right? in, I round be expectations round dollars on low-cost a build-out, much

states question a unclear if flow on long-term talking later. still still for that's think first answered. Based that we going year. can I it's the me about I kind role about, or until states, that of needs that we're feel of But that part quite our more dollars meaningful the expect the optimistic play, will some wouldn't to it's fixed next rural particularly be round, I to be to to wireless be of conversations, of with our

Operator

comes Our Rollins from Michael Citi. from next question

Michael Rollins

you does well wins, Cellular there capacity TDS, how the When up both? as go of side at topic. frame significant U.S. financial after BEAD allocation look following or the you type you that have on can influence And for Just are opportunities? if as capital to each beat

Laurent Therivel

Mike...

Michelle Brukwicki

that LT, to take do yes? you want first, me

Laurent Therivel

Sure. Michelle. Go ahead,

Michelle Brukwicki

Yes.

Telecom, TDS for Mike, So here. there is important an distinction

there the federal X -- So broadband programs.

opted The funded cannot under into which addresses one it's that addresses. second first those BEAD. one And bead, X in sense is funding programs of almost our our the the you the have understanding all A-CAM which states Program, also that Enhanced by federal and are makes we Enhanced addresses wouldn't the Program, A-CAM be if is same

program, to BEAD opted a Telecom, So be the large participant. plan in a we because we've actually E-ACAM be at participant to TDS don't

So that our significant BEAD the program competing for equation priorities A-CAM our in are Enhanced any does enter Program, way. capital and into fiber allocation, and expansion not

Laurent Therivel

in -- the me Mike. let a So what's wireless perspective, fixed from tackle

the is going that current So our first to We simple we the are that, do radius do where BEAD be if a capacity can towards -- can dollars, tower a of the capacity. with leverage build. I place served to all support would utilize mobile equation. the can of opportunities The we need. point better. wireless it's fixed pretty there be Where that that within And existing serving BEAD we

those either states enough mobile deliver strong of tower we percentage for new currently so think wireless kind with. There's compelling businesses, And to second by signal fixed reached fiber capital can have the a no fiber are back of I wait the sequencing go that completely to our be? of set really point homes, along will -- I those What return irrespective fixed BEAD to made or by wireless. going with expect I'll to We significantly and denser what clue, obviously, for And you compelling a a comes out is, advocated not that BEAD put grid, equation I for come earlier, reason sufficiently create that. need and we homes product. have right? a on we've have of reason that, that see in. that the The a we that a are and

$XXX,XXX on bring BEAD if to you, tower I've XXXX, conversation but cost or before, which point with down mentioned dollars, to our number $XXX,XXX, $XXX,XXX cost this opportunity. of compelling I bring between will I'll rural -- serve. And our If an point that put to then $X can to down I to that high-level million. finished that overall in is our So priority, could overall a America from can we're that with though, capital. I'll pretty I about guidance, create the you return laser-focused a investment is

of that's participate. really And return there if spend, help good but 'XX, us we efficient so made anyone use it, to capital, and Cellular, on we to drive we in have on really structured not of on capital have internal won't. And that just can both it's are 'XX that expand to going capital, also programs the a and NTIA. These in that for not capital in we'll I've can return attractive returns our BEAD meaning opportunities way positive a clear participate. equation, use be or to U.S. states a for If it's

in it of that ones we And are the so returns expand over would to would and BEAD, because spend current capital our future long-term because of we part be as that expect our were see above we the if plan.

Michael Rollins

other for And just LT. you, one

of looking greater what's front and happening And X, to on for this bit more wondering on to to that gross on at start you output trajectory And are there if just Slide handset I U.S. at postpaid gross unpack Cellular? I'm the curve of Going adds. can back mean, a the get the bend opportunities front?

Laurent Therivel

their pretty it's cable or equation, expansion that in years, mean of the gross in across everywhere. of we though the in by driven still And about a our rise in footprint. our about share Even and slowdown the X only essentially X% of X still They're I the share I and the had -- marketplace If a is our X/X been wireless The in markets Yes. players. the XX%. of has rewind thing gross simple adds, where the we they it's is now, but market see to share operate footprint. their X%, competing, not adds cable

to this? do it's how Well, so are And twofold. they able really

The look is is almost XX% offload for let's number WiFi. of it, about is offloaded which they that depending their But statistics you us, call at, first to on traffic XX%, XX%.

a like and is devices about on then our of and from difference they the until And of okay, on to is So cable pay big versus is on WiFi perspective, usage perspective, you cellular XX% sound usage of a on around is doesn't cellular. on a cellular. you cellular of well, whereas done our XX% that from say, it device a have user that turn XX% and rate for XX% wholesale usage think

the cellular double the on So usage network.

the wireline are different and quite smart are with not cable business so ability their whether And economics with agree from cross-subsidize their And is overall can network you that by these their a driven profitable cross But a people economics. people, for plans their their couple with wireless attractive. or business, profits wireless to or essentially they're not. players

be on they're price didn't making the the money, even wireless they're even way make find with very a the wouldn't in breaking putting place, to they business either think and churn. they and so least, seeing the in money they're And on if at I they're or benefit competition

of our coupled combination month free. better wireless And got the to able so $XX economics, with offload for with their makes being that difference. offering subsidize it in markets plans, with And line plan spectrum we've a X a cross a

the us. So has pressure that the affected everybody of place over It's put driver network, is price that's industry. the I you're on change that's been in that's significant occurred. Verizon unlimited, time, mean and talking in month, major $XX that affected a

really and -- out this in great new a in to provide And there us about expect investing experience. the year. to experience. smooth customer promotions seamless invested we so our that We the the a that? aggressive trying do is, the ensure throughout invest can first have how earlier and that's platform, talked place. you that customers We've deal we're customers. I to with pulse as through holidays went same We've in retaining pricing, you our and digital significantly mean Well, in and in call, We with put existing in

big to continue XG, X in our out modernized will we network. same network Everywhere customer see roll of better we for be talked step, one second for results so to about and see be We the to our us, customer is out higher to thing. step where mid-band, continue really we is this customer will retention. A and perception And mid-band. a rolling invest experience. enhance Everywhere

We our capital now, of in our pivoted And spending. already so rest sites. of modernization. slowed you've the we but got our XX% being carried buy traffic XG-modernized on we've By we've haven't the it, -- completed XG large

in and attractive term. that. price. the It's attractive gross last capital the experience. will we industry, the future. our continue. But that driven with think mid-band. we alternative pivoted over experience the point. operates attractive I spend an adds, that's we've to good that's couple it cable keep that we change, of wireless. investment in create address industry, the price network doing And going has to We're combination we're that in in been to And marketplace. going that a see in And the always a to doing mid-band price really keep So I competing. compete rise network towards But customer in of the it well that think We're and the and to continue an can the better Mike, changing what will great what's offer don't has that's the network fundamental expect been challenges a of been of near years a

Michael Rollins

quick one other And one.

national What's competitive overlap of the X the You of in providers? wireless that against nature overlap wireless with footprint the mentioned big terms you competitively the have. the cable

Laurent Therivel

what some-odd would be asking for the see of we XX% AT&T, them. the in number percentage that quoted T-Mobile? we I compete of you where So And in markets you're that mean terms Verizon, them -- our against

Michael Rollins

Yes.

X what's them, players? of of wireless each For against those percent overlap the each national

Laurent Therivel

Do you know that, Doug?

Douglas Chambers

it's all. the greater X. Yes, XX% than all big It's substantially for

Operator

Sergey question from Dluzhevskiy last will come from GAMCO Investors. Our

Sergey Dluzhevskiy

LT for on fixed is question first wireless. My

you see approach over wireless fixed few how And deploy you fixed years? for So have being next general, range your in the capacity what also, all impact you, also, how is deployed you being the mid-band that your and became that And think the wireless addressable about term? does fixed C-band wireless years? spectrum to that needs deployed the this do medium market now few that with next for over over

Laurent Therivel

product is of this the So XXX,XXX right? for opportunity X where hasn't start this product place. pay to around number subscribers. are that with capital mean, on mobility. I've needed I've for a overall in let have the It referenced of product we new of the top requirements me at that a the We towers That's It changed. pays a not combination business that put I past. is dynamics all see that market -- investments network rides factors, in been doesn't a been market This this in this about combination opportunity. radios believe the of and in dynamics is new overall and itself, competitive for the made the it's past. versus transparent this the

available have capacity it fixed and for that you And so you needs and put in serve the then you the mobile you subscriber wireless. pivot capacity where place of

reached. put together, of scale you opportunity slow customer those we've you we of market so growth And to kind X XXX,XXX. Usually, rates as about things you starting would see see a that reach the

the product, the you a the has us just offer a enabled satellite right? the all you scale, first hitting of more competitor you underserved when just see been product start product. competes first that customers, an XXX and growth, for mid-band in not then real in is number meg So impact fantastic challenging. roll not or The is DSL We rural drastically areas, a on as first of XX,XXX out can faster we just not mid-band X,XXX, or But sudden, nothing. offer can where in a

against And extremely competes so cable. well. that

And into And driver to opens for so going mid-band and us. be new XXXX that product growth the expect geographies XXXX. and up in it of key we

our on We'll towers be with a fired up of by we product, of steady an we mid-band, to for our fixed with up mentioned, customers. carrying cadence. end upgrade time we year. have shows opportunity XX% upgrade that the I in should As almost every our product enhanced mid-band traffic the tower And XX% wireless doing that a stores as an broadband our -- of to a sell

And that to growth to it notwithstanding, is impact business scale continue, all larger numbers. we that, seen that fact right, and the attractive wireless we've so fixed net that larger continues in the of to expect that

the we're hopefully, about me, sense and So fixed wireless. thinking how excuse you of mid-band. it a impact that I of mean, about gives

Sergey Dluzhevskiy

is my Doug. And Yes. question second for

progress, you a made it's You've focus optimization on but for obviously cost program, in still some XXXX.

to maybe think opportunities could more do see How provide that? should over XX cost for meaningful as If you on color you we categories cost XX months. reduction the more next about which

Douglas Chambers

our Well, all, just first as made And of to Yes. emphasize, you talked to our we remarks, that. see compared Sergey, And margin from when you on we've have program look we XXXX business. about our in progress went this our XXXX working. the at organized the to XX%, XX% across margin, is program it

is We from program. this and have have delivering our on everybody XX leaders we of all accountability campuses,

provide engineering IT. OpEx most still So lot savings it's in as of go successful, will We of So it the right? our will to significant we savings. all of continue as market have where of follows really for that sort opportunities the been P&L, far course, But business whole areas. in of really dollars, a have dollars across our continue are, to as well in

of So going done so it's and we the we've There's to across do, business. proud far. to more really are what be

Laurent Therivel

just to with do has but in. for question And occasionally to CEO too. I'll cost Thank something it chime CFO, the you Sergey, directing the the

it our a efforts transparency of So around and efforts I we've won't around all flexibility for Doug. One lot is success dump seen our thing customers. and that on automation our

so upgraded customers. give the we there to bill that our provided the is I'll example And

format. we new -- both bill So a we've rolled out

automated. our recently that them customers, a changed entirely the breaks new we've what providing down, love format significantly of made prorations, so ago, they bill for we where they the in a with buy almost thing me. But first done We what it customers to lot is intent ], how transparency, can to billing customer [ reduced expect, walking The call, a service-driven in expect if see to to is that there's we down That care stores. It's we've approach significantly still can change was second what our with cost the has our to an that our following year no the stores, I would question. than bother a driven rather store launched visits our all months. the helps

the so that focused And but bring transparency, investments any but that, without negative they'd like kind on costs, also we simple experience a down they're that on on upfront of bring are flexibility, customer. down that are focused moves they moves make, costs moves

as fact, positive expect experience in In And well. you probably can automation digital year to and and those us customer. from investments more beyond it's a on the see of this

Sergey Dluzhevskiy

Michelle. for is question last my And it. Got

XXXX? expanding in significant you could build. conversion fiber obviously of and opinion, lately terms your your improved working made customers? still investments far into what you if are needs footprint, be conversion has fiber feel provide [indiscernible] now right still maybe color [indiscernible] also I And customers? in do as of your paying And how what you terms you've been as into to you So where fiber with for your guess, about of given in in more [indiscernible], in continue paying you of

Michelle Brukwicki

really to of year and lot success of -- what XXXX. and our had terms have in customer a getting we continuing yet We we're biggest yes, in So progressing grow builds in footprint our had seeing paying exceeding of all conversions and markets into and we've service And service across this becoming been we is happening generally had expected to is launching. sales see. that address addresses is our actually the what our meeting

XX%. you have So expect shows penetration get one launched. In be expect we that years ramp we to the to broadband that about X, broadband over chart we year our a first of it our after to in XX% do addresses how few penetration, in slides

slowly turn addresses or what broadband continues that's build about launch, of to of next paying seeing. XX% years, penetration we're what customers. a get steady state the until into those we that XX% you to about XX% markets. And in then So expect we of about few the And addresses those that over

are to broadband state, So early a be we been steady of launched been over looking in had and those the XX% markets, for. our for of to get and to few have around that able enough markets long we all penetration

sales pleased going and really builds also we're then have So with customer been been going. processes the how conversion the marketing have and how and

Operator

Colleen We have further Thompson to remarks. closing turn questions. no call the I'll over back for

Colleen Thompson

Thanks, Please out time and Okay. today. questions, with for reach additional to great everyone, your have IR weekend. any a

Operator

This your for Thank participation. conference concludes you today's call.

You may disconnect. now

United States Cellular Corporat (UZF) 16 Feb 242023 Q4 Earnings call transcript