USM - Earnings call transcript Q3 2024 | United States Cellular Corporation

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Operator

Thank you for standing by. My name is Mandeep, and I'll be your operator today. At this time, I'd like to welcome everyone to the TDS, UScellular Third Quarter 2024 Operating Results Conference Call. [Operator Instructions] I would now like to turn the call over to Colleen Thompson, Vice President, Corporate Relations.

You may begin.

Colleen Thompson

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

President and Therivel, Executive and Vice Treasurer; President Officer TDS Executive Doug prepared Chambers, and President, Brukwicki, President Villacrez, offering Officer; Chief Senior and Financial today Chief of are from Chief Chief me Vicki Telecom, Michelle Finance from Vice Financial TDS Financial from comments Executive and UScellular, LT Vice Officer. Officer; and

This see the TDS the call non-GAAP on and Please slides webcast for including website. to referred Relations is being websites this simultaneously UScellular on call, Investor reconciliations.

operating OIBDA amortization depreciation taxes, partnerships. adjusted income highlight before EBITDA interest, wireless We before and and earnings contributions provide or amortization or the depreciation to for and adjusted UScellular's guidance of both

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

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

Vicki Villacrez

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

fires we swept through to do of Mexico. acknowledge the want hurricanes begin, and that I the Ruidoso, Before the devastating recent impact New

customers loss. needed affected our you. especially, suffered all support are Our when assistance who offer who communities to us And want communities hearts together and to affected our Thank go to out our our came and I most. thank teams all and in

that of the I results, we highlight that I during had priorities another out to execution quarter As set year. the to turn want on we the

nice LT these demand the transactions in cover licenses. UScellular with were spectrum the more value proposed that will and made for the significant on These really not has highlight included in portions progress monetizing transaction of detail, As T-Mobile.

optimize We have help into footprint. our focus entering transactions looked and our that several across other our enterprise, will further to resources

our of to early sale cash sale in the IT accretive flow. is of OneNeck closed free solutions The First, September. OneNeck

We this certain assets expected nonstrategic divestitures later year. to Telecom agreements reached close also at on of TDS

I focused am business and TDS adjusted meeting objectives, quarter resulting their to third EBITDA UScellular and performance. guidance. profitability adjusted results. Both with reaffirming units pleased outlook our Telecom on Turning in its increasing its are for OIBDA financial

We flow generate ended their Both improved position. the ratios while in quarter, cash have Sequentially, XXXX. quarter our positive to liquidity throughout free continuing invest and to continuing are solid debt-to-EBITDA a in cash each businesses networks.

We are the see to rates Fed interest mid-September. pleased cut in

modestly we continue we'll liquidity, this drives sufficient lower cost execute We'll and our as a to flexibility leverage operational historically reasonable continue balance of of low maintain primarily at into to to interest sheet which our interest rates. strategic on long-dated longer-term for debt the and all go fourth us, through issued goals. quarter maturities As manage of provides forward look combination objectives

XX after recently her call leaving in want December behalf well her the endeavor. I over, enterprise. of announced we her organization, will that thank Brukwicki TDS with next her years Before be turning Michelle in wish and for the leadership the On to

of Finance the Michelle our Vice President, be TDS and With and for will role Chris, and thank transitioning TDS into all will work who these Michelle's hard of is next upcoming I'd Chris currently also Planning, Vice Telecom. like be CFO of associates dynamic departure, their the Telecom's stepping Strategic in over Financial to of times. months. Analysis President

I'll to LT, over now, turn it And you.

Laurent Therivel

our that Helene. have network want network to and Hurricane my operations echo sentiments our to sincere and I regarding everyone. to our morning, pass to Thanks, thanks restore briefly want Vicki's Vicki. support teams just along I also worked customers. Good tirelessly

Our is area affected thoughts. that everyone in to it's have recover. that's our fully but take operations And for to certainly time going long a recovered,

that, that pivot With the some let's us take and covers X, to highlights. recent materials. to to Page I'm going

following and select operations as is our the sell back in proceeding process May, our announcement to First, T-Mobile spectrum wireless to expected.

have filed with As our a statement public September, you in interest the may we're for mid-XXXX and on closing. seen, we believe we SEC track

competitive tower long-term T-Mobile is T-Mobile long-term will business. provide additional them transaction of the scale confident long-term remain a benefits network. the as We our for transaction with it also and us solution a with the an tower strengthened gives and best more greater customers The tenant

wireless provide this separate expected began quarter. up to transaction. reporting going to forward last And information If T-Mobile close we recall, the plan you of detail and tower segment to we continue the

carriers Also, those retained as for proposed a portions transaction, to of May our $X announcement, And monetize with licenses talked XX% spectrum. with we'll running agreements multiple T-Mobile that after left of be we certain in entered we been over our process October, proceeds into opportunistically spectrum. in sell about billion. aggregate approximately of the exchange to in We've

includes Slide and our And to Verizon the small spectrum These of the our as the on with approval to smaller PCS portions of X XXX it contingent X XXX our C-Band portion proposed megahertz the AWS and of close shows sale our subject of regulatory spectrum are are to of CBRS, sale monetization. T-Mobile. transaction on progress and sales as also transactions a network operators. and our license other spectrum megahertz mobile well

well on the that of that work Doug able pleased providing more and value. tax impacts in with license licenses details expected will into really value buyers, to transactions. book these enter were small, multiple with associated be to We're large and we agreements our the gain and and substantial that excess these realize we was for

monetization additional able we but to And process, any continue updates on ongoing share is I won't provide spectrum. today, more this become an be But remaining for opportunities work to of they details we'll the as as available.

performance. highly remains delivering The And results. focused can team our quarter. subscriber you on in the see that financial about balancing operational talk momentum with and improving let's Now strong

last have maintain that the XX,XXX by continued discussed third enabled cost subscriber changes momentum while that profitability. the earlier to We've we losses we year, trajectory our made these and quarter, in As reduction to net retail from year-over-year. subscribers improved have changes us this initiatives quarter, promotional executing see improved strong

addition, to a been promotional where we've made times attractive committed are to In multiple periods us caring existing us our includes existing for conducting as that days are customers. highly XXXX. offers available our days And customers throughout reminder,

customers through We to plan other the reward the promotional our of in offers continuing churn focus of and this believe on to for postpaid X and quarters customers our on existing us XXXX. days improved quarter. each us We handset through existing contributed investments has through days fourth promotional other first

the that available to gross And postpaid quarter subscribers pool for was allowed of increased, And on in noteworthy year-over-year deal keep our basis, adds context the a industry again handset while our adds down us particularly the gross as and share a is the this of whole, [indiscernible]. flat. of in

strategies, continuing to network seen by compelling of year. net again, multiline due nice existing our and this a to focus prepaid began improvement XX,XXX handset due promotions our partially our experience. with churn, losses attributable year-over-year Postpaid in improvement customers promotional We've including an deliver pricing, attractive improved our also pricing strong on and to in which in competitive to rewarding May

we've that's pleased And our competitive particularly given improved or And in to operators letup intensity. seen network wireless the that subscriber momentum, [indiscernible] large the players. no with I'm cable really mobile

ago. on handset Our partially XX% customers We plans. postpaid of ARPU X%, to of postpaid year had the increased also value our tier customers compared X realizing the to due plans our a higher-tier XX% top

year all I'm the pressures expenses balance associated categories. profitability that's teams with costs to our promotional efforts given doing raise and as as really us deployment in the well excellent financial been job major an investments our discipline, XG, the year-over-year with ongoing And guidance those cost And this inflation quarter. continued with managing down of of enabled subscriber growth and proud to full have

by in with network. our traffic already our that been Turning that XX% footprint. and provides XG, of strong have data the to have currently sites coverage XG We handled over low-band upgraded

XG to with XG and XG in be capacity. investments predominantly the mid-band consistent deployment XXXX, of network investments so enhance And dedicated spectrum, speed to going that's network our future will and

we previously for lower the guidance this toward to that. reflect guidance expenditures expected range. end that our full capital the of And year we to trend our And quarter, capital noted we lowered

investments busy customer And Before I in that I year, #X over heading congratulate initiatives I call we've into on to the these North the believe we're this holiday out business strong executing experience. all the and positioned the the results in Power earlier laid strategic network resulting season. ranked for study, Doug, well a demonstrate, we're turn J.D. are the as to our want XG UScellular being ongoing region team reinforcing that Central for

I'll to now hard I thank over Doug. team their the turn call and the to want for work,

Douglas Chambers

Thanks, LT. Good morning.

want the to license additional to some Before broader details transaction highlighted sales portfolio. discussing impacts the provide results, quarterly on some proposed LT our that and previously license I

Subject and and license $XXX These expect dates. for to transactions license we net transaction sales proceeds on of approvals the [indiscernible] on a recognize transactions, close closing value T-Mobile adjustments, million. we of licenses upon And sale just pending X. October and Slide the license in regulatory of transaction the over highlighted announced on transaction approximately gain book to the fees expect respective have a the accounting

pending expect for $XXX range in estimated million these cash of $XXX announced recently TDS. taxes for transactions in cash total addition This for to to of for on range be and and we $XXX $XXX the to Further, the million which TDS. to UScellular to transaction, million be to we $XXX expect $XXX spectrum taxes to million in $XXX is million million related UScellular million T-Mobile $XXX million to the

monetize to units spectrum groupings accounting testing. with impairment of for was of T-Mobile, licenses and not result of our UScellular agreement review to or a efforts as purchase Additionally, of required purposes subject securities to update the assets the

gigahertz review, wave the our XX, a separate and in licenses result XX of millimeter bands accounting. unit As this identified were of as a XX

to operationalizing be primary challenges on XXXX. these value. net estimated the subject million. of third driver And loss industry-wide fair value is carrying the impairment this loss the quarter licenses on of of a to UScellular spectrum After recognition $XXX recording tax less not their million to than millimeter of the T-Mobile spectrum, our $XXX was to of of part in Due or in corresponding wave UScellular $XXX the wave millimeter transaction of million of this of carrying related value licenses impairment the licenses,

XX. review Now Slide financial postpaid discussed Service results average higher the a partially subscriber ARPU the by LT by revenues offset on let's as X% driven previously. declined starting in base, declines

of more than XXXX, including of that first ongoing decreased operations our X% from quarter CDMA network as optimization mid-band offset System expense our actions, the cost XG in deployment. increases the shutdown resulted

optimization and excluding alternatives across expenses X% This impact category improvement income X% dividend earnings the due cost and decreased amortization Further, as decreased led expense along debt before income from general expenses EBITDA, adjusted due general the of decreases to selling, this and and expense bad other and equity investments in to an initiatives. incorporates operating in an with administrative improvement to our X%. in as included method interest decreases administrative in depreciation categories of strategic expenses, sales-related which X% various and well of adjusted

Slides results XX also slowed third wireless by increased revenue defections. to growth impacted the and years the colocation present tower XX defections, Tower and segment. including parties and has the quarter Sprint-related was X% from as recent for relative in third separate

capital rates calls, growth the will corresponding expenditures experienced drive the revenue business which prior discussed industry new amendment demand in wireless our As of moderated tenant towers beginning activity, for the tower bullish in we and in on we industry long-term for a XXXX. impacting the towers. has is remain on and we slowdown XXXX. And long-term that Again, capacity needs outlook have

their X,XXX pending T-Mobile, term years significantly these third-party which subject towers initial an incremental is and tower is regulatory the for Further, approval, increase to expected with of revenues. to XX transaction to commitment

increase improved allowed $XXX year. Briefly the on million further debt expenditures, flow to free over million, months X year-to-date first million the we basis of a ratios. in has $XXX capital profitability cash us free and cash our flow, improved of This generated additional [ of and due has XXXX prior moderated to leverage in ] through of XX debt an October, September million on $XX a repay $XX which

XXXX financial Slide on Our guidance XX.

of billion from year to $X.XX this we issued revenues million XXXX, late the the to relative billion stage ranges expenditures $XXX initially are to of February for the $X.X Given service -- in million. we to guidance guidance $XXX and narrowing our capital to

cost to amortization we guidance to successful $X.XXX reflecting of full in billion, depreciation Further, to ranges the results achieve and adjusted and that we are income expect EBITDA million before million to XXXX. the raising adjusted the $XXX narrowing million for management and $XXX year to $XXX

Brukwicki. now I will the call to Michelle turn over

Michelle Brukwicki

you, good and morning, everyone. Thank Doug,

our turn third Let's to Slide XX highlights. for quarter

we in of XX% milestone quarter, This addresses an our are important served by now that reached service fiber.

service continue our X% expanding footprint, addresses grow We year-over-year. to

The address team total quarter, delivered goal the bringing XX,XXX year. new service in our marketable our making to progress addresses fiber fiber XX,XXX, XXX,XXX the marketable on for year-to-date

broadband to the continuing strategy good contributing deliver in XX% and a increase X% quarter. fiber total adjusted EBITDA is operating a results, to in revenue Our for increase

connections X% year-over-year. We also grew residential total broadband

strategy pressures our in markets our expansion overcome industry-wide helping Fiber and to is markets. providing fiber is cable competitive extremely incumbent Our important. growth, in facing copper

XX. Slide to Moving

on where You are we can our scorecard. longer-term see

well growing ended incumbent our as with in fiber the are fibering marketable up This We progress X.X targeting through We service addresses. markets reflects quarter as expansion our markets. XXX,XXX. million fiber

total XX% at finally, our XX% be by offer our We are expecting targeting service XX% speeds. quarter at the of least We higher footprint. gig are quarter And with We the speeds gig served ended addresses of or with to to finished XX%. to also we of fiber. X

increase completed to include fiber These fiber these finalize EA-CAM We're service the Therefore, deployments A-CAM will enhanced precise closely that in working through do our will program. with FTC the we address be addresses. add goals obligations. goals not once

addresses, building approximately Our final be to original lower. we offer expect to the obligation required XXX,XXX but

the updated more will on when reconciliation. We have address provide goals we certainty final

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

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

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

to Turning the in quarter, to in which had X% XX. net residential Slide year-over-year. adds broadband connections contributed X,XXX We residential broadband growth

addresses. new As deliver marketing we and fiber addresses, are those into teams our service selling

we added net X,XXX markets. quarter, our broadband This expansion residential adds in

this While in has up on We focused expansion providing adds net been than new the growth, pace driving expected. our remain is penetration slower markets. of

number the sales. Leading reps, augmenting we've Specifically, sales resources. staff door-to-door are in external our been internal working improvement increase to of our indicators with including showing

penetration program approximately in targeting Looking of big our a we the once steady picture, confident hit markets the at state. fundamentals still are fiber and XX% broadband

markets operating both and these to adjusted efficiently are revenue and addition, growth. In contributing EBITDA

expected, more seeing expansion Our markets we're and are efficient most cost-effective the markets than our business are to cases fiber run. networks that

the even defend support losses in program, not copper ILEC from markets. moving our fully Now years, had areas. net network from into A-CAM compete. to the net markets. positive With to help our incumbent over and effectively will offset to the defend we adds been upgraded on get our enhanced us will these next in fiber fiber, which We more we've quarter, able broadband copper our have ILEC Where which did we fiber few

the consistent net industry, cable upgrading in primarily and LECs our we losses markets. due increasing presence our experienced markets, broadband their overbuilders to with fiber In

strong we promote To to mitigate delivering X.X. impacts, these using capable product, continue gig speeds DOCSIS of our

We also in new with in builds. networks areas, put strategically our certain and overbuild fiber greenfield fiber we all

attract In mitigate addition, customers we strategies to and market-specific challenges. competitive to save implement

more net couple a comments adds. Now on

items discrete impacts that see in we to the from X continue mentioned second quarter. We also

disconnects this XXX quarter, cable. XXX we experienced First, ACP additional and ILEC in in

we the Second, that in this in due New wildfire X,XXX additional occurred cable losses an had quarter Ruidoso, net Mexico June. to

X% in connection growth With primarily average residential we due in graph, This middle the increases per X%. revenue and to user, broadband connections per price to saw revenue revenues. increased residential turning increases. Now was

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

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

migrate customers Lastly, wholesale revenues products. decreased as lower-cost X% to

you the partially On offset revenues see the performance. was as up Slide residential X% by commercial can wholesale our revenues were XX, the and in Operating in revenues. in growth quarter decline quarterly

fiber Capital coupled $XX XX% XX%. nice up quarter, and grow in seeing quarter, cash in as revenues were growth with EBITDA, expenditures we from X% As connections in expenses year the last for million a are down adjusted planned. our the decrease

our they closing, shows for the In and last for Telecom from XXXX our customers quarter. energy TDS thank XX I Slide passion unchanged care all want communities. is of associates guidance, their to which as and

proud my hands good has As my It Vicki is I'm with as time you Chris bright privilege all. TDS. has we of many to I mentioned, CFO. this future what believe last TDS people call Thank Telecom earnings and during been is have at talented in with accomplished, a and my work so here.

call turn I Colleen. will the now over to back

Colleen Thompson

Okay. the for first ready now are Operator, question. we

Operator

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

Ric Prentiss

Thanks the net to further of A couple color gross are T-Mobile for to on is impacts. questions. I and Verizon Or that liabilities cash NOLs more the wanted those some sale, of the kind the that be taxes shields probe other of a the the little tax using fully them? on of might shields? and you sale spectrum applying

Douglas Chambers

here. than cash those is Doug have net And for more the reason that interest the are question, we UScellular Ric, NOLs and why that's and what taxes that because estimated attributes, does. for expect of of to carry lower NOLs they On be to both Yes, TDS use carryforwards interest forward.

Ric Prentiss

that Makes and sense. on fees spectrum sale, be some there the And also other items. Verizon you mentioned

tax the probably is a items, For it noncash couple

[Audio Gap]

Douglas Chambers

to close gain the of that impact that eventual also upon transaction. recognized that's going we And

Ric Prentiss

sense. Okay. That makes

the T-Mobile then lease can't that closes, that immediately? so And you deal spectrum free the up but implying before closing, the is

Douglas Chambers

the may not we that may it spectrum have have close regulatory deal T-Mobile implies may the we for approval deal. -- Verizon not Well, and

Ric Prentiss

customers the to over to some for would there's network of the assume USM be T-Mobile time of migrate to T-Mobile integration time year's kind Okay. Is something? the Because a frame network. that like off I or going

Douglas Chambers

spectrum of the is up T-Mobile spectrum for deal, lease There T-Mobile Correct. the where for may a a that after lease of year of time. our period to close most

Ric Prentiss

Makes sense.

when of obviously, would imply, the proceeds use of would through, the Verizon be? philosophical the And would you that sales Okay. spectrum think things and about that, game then go assuming what

thought? bridges that TDS? what a that it thoughts applying we've to are CapEx? dividend that knowing Is reduce Is leverage? got Is is if to start philosophically, special lot dividend more special cross. of the of a And that like Just to still thought,

Vicki Villacrez

first I these would on now, pleased say right unlocking very to And like Obviously, repeat, value getting transactions for and the we're Yes. shareholders. transactions our closed. with focused foremost, are and we're these

so top our And to priority to close. a is get successful

pay to returning continue may at that as expansion across in TDS program get the markets. into of at results closer down to of acceleration deployment of that fiber closing, be UScellular TDS well proceeds would and If Telecom of TDS place bullish we be we share, use a Directors. include debt, special leverage, do is discussions any proceeds potential dividend on on as the that to potential our opportunity a and we I there -- for begin, decision to use that with seeing of things to that the paying be got to the it as down of expect look value the When number we're healthy and improve would TDS an shareholders. would really new the its And Board advancement markets have pleased and

getting is our Again, focus So come. to It's close. more to on early.

Ric Prentiss

of viewing wireless of happen Makes drive A refresh AI would was do cycle," you other long-term could changes to what the as there be year iPhone lot the How for the a LT standpoint the loss "super help or from as might do, would question going worried more on it what were in switcher wireless equipment sense. the what you on competitive beginning on operator pool. One of people side? also broadly but a far on are handset side.

Laurent Therivel

viewpoints you give it. I'll guess I X on

longer. a handset Jury out, the right? is side. their People other So we, for with upgrade to decline completely are start hanging still devices saw rates. operator, actually me like Let on in every

of some see are to And that relatively if generations Apple, if it's upgrade capabilities differentiation from they're consumers because this unclear waiting for devices the their of recent the case is still to most AI beginning device where little next become unveiled. between me kind of for -- in or this

via a it's And to have I early lot date, -- early, We a I now AI it's of too cycle right? think super just the tell. capabilities This upgrades. delivered software to think seen but too can certainly is not be

who device a not it's to purchased customers get one. already going those new So to new the go require have

so interesting. time. And with I of around think -- they'll capabilities. I see, think some right? the we'll over I And mature They're that played those pretty and

a it And but so customer And experience, it let's I changing promise. consumer-facing may. hasn't truly lot it, from call a, displays AI yet, think I a standpoint, it of the think

we on side seeing cost impact are is our operations. of Where the

next promise not for example, And so with but I centers, in providing prompt, AI, see in of experience a provide a our better in care lot to able offer. customer necessarily better replacing care, being best them humans,

we what suggest. Here's

propose how customer. [indiscernible] Here's we you

can You efficiently. more do effectively you and more say it

the of seeing we're is of of a these ramp lot capabilities. some taking because it's time associates up AI less care us One things to

It efficient. us can help It more help And us can from us so be attrition. that from help can training.

into expect I translate to of stores time, level efficiency experience. that Over our our same digital into

already a cases fair from we in perspective, expense seen. amount of that's savings cost seeing are year-over-year some some I think that in we've so a benefit. And reflected And do the of

savings is those our fantastic expense expenses, of helping doing driven are lot a managing there. They're team. job by care AI So a and

side, consumer efficiency, out. the bullish. benefits I'm is operational seeing So already we're Near-term jury of it. long-term still

Operator

next of with Our from comes line question Sebastiano Petti JPMorgan. the

Sebastiano Petti

quick a here. clarification housekeeping Just

kind release, anything you what beyond already ILEC above agreements there? you've process that in there of properties. is Is out just to TDS Or cable the perhaps I called and in sell press In identified? terms of else -- think and

the it, think forma mean, In transactions addition, the perhaps come USM the over that for some the perhaps portfolio do about business that you of wireless from expanding a of time? LT, as see I acquirer the for more increasing tower business? the there, out Or you towers is all it ecosystem guess, about tower tailwinds preparing or pro thinking across RemainCo net as in I see you'll densification to operating the there? tenancies, different Has portfolio about further

Laurent Therivel

do the to tackle want first you Michelle, one? Sebastiano. Thanks,

Michelle Brukwicki

nonstrategic divestitures few We that second the ones the mentioned, we close Vicki the the Texas And quarter. quarter. the those that Virginia the a the sale in of ILEC cable also that divesting. announced [indiscernible] small of we to. in expect had that are disclosed And in referring and Yes, divestitures the same have the we property months. soon We that last here are announced quarter over couple are we our ones fourth third to cable very ILECs

Laurent Therivel

me tackle number question two. Let

let kind is how to on our tower the we improve see assets a about So Job current one of bit have colocation me rates today. talk portfolio. we

And a as only So treating some center, driven a center started increase our it colocation over one a years things we as rates ago. of portfolio time. revenue is the that about really profit that's few interesting in

Doug And of as mentioned, well. of competitors industry now capital slowdown our guidance. reduced in a in wireless a right terms As of A lot in bit capital our have we've we're spending.

That opportunities business. and new reflects onto of colocation new terms then in tower amendment on opportunities, our so

growth of seen X. have a in or year last rate so the slower And we

We competitors. opportunity. run, tower geographically unique. long because bullish we're portfolio our colocation our very think considerably The rates of there's lot relatively But below is still are a

of mile, are within a X, of small our a X.X have towers miles that We X within towers. number within miles

rates, time, And an job so see and carriers those colocation increase we over that's as opportunity one. densify, to

is getting second then business this -- tower at And would a my look scale? the your that of business at A is opportunities, is this think yes. on question we business, our I'm when business and question operates about you acquisition to perspective tower

business. of the the we a because is Wireless wireless really were disadvantaged transaction with scale. the of we've -- had reason the struggled lot small is national T-Mobile spend against why with and larger we is the business the we national, no we pursued issues players. that with A One and why

towers, at can more operate locally in operate are portfolio where a case we scale efficiently our much And on can we think time. more do the not you That's Towers, level. over right? granular a that tower much we

means And towers an operating expense. is underneath is and other tower what portfolios opportunity, there that we if also then tuck that can other that

And it's yes. yes, so long question answer but your the to is

that But potential inorganic talent would to it's rich expand yes, building look right? are whether acquiring portfolio, right or But organic opportunities we at now, portfolios. valuations new pretty

look between Verizon towers, the valuations. and some pretty latest these at [indiscernible] You sold and Bridge, their transaction rich are Vertical

it's these we we'll that be so thoughtful opportunities. we approach And as long-term think And I business -- a we're on. bullish

about to look makes that acquire and about opportunities having too in we're to a how grow. it. where for spend to We'll grow thinking We'll opportunities much that sense not look for we're a way sense to assets. Hopefully, gives you

Sebastiano Petti

more We last you know helpful. back one then an launch MVNO announced I guess that. the TDS. appreciate super ]. question MBO to No, [ of And quarter, or an I that's agreement

convergence, fiber continue where time, -- in and in fiber to go longer maybe the assets and one, and makes given the a fiber space, obviously, on efforts, that targets you're I term, that road over company's to terms on about -- TDS' obviously, terms of map standalone guess, As basis. focus not thinking could operate sense number to on perhaps of given focus

would mean some agreements regional unique with ILEC you wireless I entertain There operators? perhaps are But assets. scaled

for entering ask have up with perhaps longer-term the your I MVNO? I the the combine perhaps, have converged road the question wireless is perhaps into from AT&T, the scaled you national fact to better think that mean [indiscernible] stood you example, agreement. although way you stood now within up map agreements that an the is preclude Windstream operators guess for But to bundle perhaps offer? I MVNO and

Vicki Villacrez

little So a our talk let about yes, me bit MVNO.

getting all the in we past, in of We through out. MVNO launching are in rolled that mentioned our we've as the participation are process NCTC. And our the

So industry of that part we're cooperative.

like us. partners that partnered and they opportunity have with to that NCTC coming MVNO integrating and that together are companies very in And offering strong participate

we so are of And that. taking advantage

is wireless the NCTC national player. is XG with partner working that And a

have the now. available So process launched that that the arrangement. And us MVNO we're right we to getting through in NCTC do of

last We've customer now how footprint. to associate get launched as that months, will then comfortable commercial trials. we're entire been go across we our trials couple going, full doing of over those a and are we with trials and launch the eventually in as are And soon

So that's about very launched soon. thinking hopefully a get to up way, how very And MVNO. excited the bigger in we're we're coming that

Operator

with Dluzhevskiy Our GAMCO next Sergey comes question from Investors.

Sergey Dluzhevskiy

My first tower question is for on business. the LT

are in things new industry slower the I I working guess cycle, what things is that -- customer guess, to your needs is realistic for can and that in you improved ratio? to increase that at amendments. ratio your colocation that and maybe company looking And to of additions well what order you on And to also is your CapEx the But medium-term be a third-party still degree thoughts control, for degree trajectory? a on what the understand kind along? I So the impacts colocation moving

Laurent Therivel

Sergey. Thanks, Yes.

then going on a over believe So a time see to pivot thoughts that. we're the slowdown few why do I I and mean that to

capital referenced the I in spending. slowdown So

completed capacity. completed, going And investments because but of you're the be right, coverage business running most visibility of our This we've driving same driving the what's we're helpful area into running build, not it's what's get to of the path a you tower for us, wireless is time kind is well into down trend one at -- the exactly our business coverage where our trends. a

enable XG or X be needs is round build. big order in going to next to that of be brought new XG The of will to bear X the to And things, any by triggered and the densification be first right? spectrum investment

But really a spectrum, a interestingly to new going I we're not of in that course, driven, to paucity map anytime is be the the carriers of some right? second, to believe, enough, spectrum marketing. absent, There's by get road future for spectrum near access

bullish spectrum broadly, carrier, a The the So spectrum to But auction. via -- is on we're right, to we if spectrum way authority do that kind get part SEC doesn't that -- equation. auction the now. access most a piece have of you're of right obvious

has put that bands bands and NTIA I able long a the been analyzing action. forward, that we've for for as we commend country identified to haven't analysis. map for and time, But road notional a them a been doing take There's it

action the taken granting FCC haven't We authority spectrum in back.

which And preposterous. publicly, said think is I so -- I've

there's think map market to the now some speculation for road bear selling market, be come right spectrum the to government. so private the I some in In from And new was DISH might no spectrum. that there

not going But the as be of well the recent FCC, liquidity think terms that to market. on in their they the both spectrum as their from to I received means it announcements, is extension access the

don't you access with carriers to spectrum. So see

industry to XX% densification. if spectrum an between not, you And access in as only new use because to you XX% how satisfy with users has that single spectrum, and every have we more bear That to whether or bring the data new support still don't do not so to that you increases capacity way going year. are is slowed,

more small towards going But carriers to think do to densify. have more cells, to C-RAN. see rural, going so and on It's I same time, over be builds. will urban on to problem, And capacity you're need focus that more in and to going suburban even that in environments. are going of you're

to get And going towers places do they they're towers to our drive need and haven't to our that's to been so and going that towers of new in attractive for demand usage are where towers. I access before. And think

well believe agreements do I around right doing What now for so And back choice and coming the tower your carriers. I'm is we're doing question I carriers provider a relationships I to we of we're think establishing with are do well. where what of establishing think

usually ensure between providers the a hard there's of tower we've And contentious not and And a bit been worked relationship I've a business case. carriers. to that, in time. long for is that the

And have agreements place, the so we MLA or whether or AT&T. T-Mobile they're agreements Verizon with good whether -- similar in with

well that positioned comes. a I think as to business when support it we're growth

I'm The working ground on other we buying thing pleased about are is leases. back

tower time the increasing is people the ground in not a land, own business insignificant landlords, expense rates who the their on over leases. So actually

robust a into ground that expenses actually bit next buy manageable these back a to more program and had situation future. get going we're leases some those we've steroids putting year and the to in of a place, so more And in try into program on

business turning an center. we're I into so this profit think And attractive

in well we're think I advantage positioned to that future. the of growth take

own. year, us We completely the that that next have can to business into company, for where position over turn right? a to its we interesting -- need The Sergey, when going closes is independent be to a stand truly tower challenge in be T-Mobile on the deal

be. overhead where in X some already to But and And now so perspective a operationally. on will on, portion require X from systems so months, from perspective, between that's It that's an focus next our own the standing operational and X, of going its close. months certainly work or another is

sense So drive how a dive the gives thinking that about towers, there, you -- opportunity. the macro also micro sorry about where for but we hopefully, lengthy see we're but

Sergey Dluzhevskiy

in Got regards second it. to question wireless My is partnerships.

UScellular in partnerships buying been larger over minority past X [indiscernible] communications, size stakes transactions. of even larger has [indiscernible] interest terms LA in Verizon So obviously There years. the minority their but in was in market. the has an

So if thinking move with partnership share closer those and the interest on us could to what your assets. you could maybe latest you monetizing

Laurent Therivel

just and the Well, our on also over monetizing plate when over to our but a it done, comes deals the remains line deals of getting couple quarters strategic couple them those getting assets. we've things of not focused. getting had structured, them Certainly, last goal

helped debt. wireless attractive cash down those us cash to flow continue We're pay partnerships helps has That our pleased with flow. It generate business. to

direction And with change partnerships. those so not in any we're to hurry

the across I review mean that what comprehensive right, And we as from view the I -- of part sacred like. and doing cows. with wanted moving do short about we'll any we did comprehensive term business, really And tower we that enterprise term long how aren't to the to there what did can that said, spectrum, what a we forward. established took we're look mean strategic really we're And there's with see, business, continue wireless take we the mentioned, a being we you the as -- look business.

there's for we'd hurry. monetize open opportunity And an in be it, so to those good deal any a we're really partnerships, but not to if certainly

happy terms -- got we They're with that of financially. And spectrum least wireless I We're attractive right within the happy they're lot [indiscernible] on at have how relationship we're think plus plenty a getting incremental getting it's of partnerships. now, performing. those our well. in we've plate our with monetized as

Sergey Dluzhevskiy

Michelle question for Telecom it. Got next And my on is TDS side.

your the or meg XX% entire How on the and your slide differ last broadband maybe incoming so it this You for XX% distribution quarter look about for customer base. In for plus, So your think how does but on deck, utilized gig customers? distribution XXX base, on. for customers residential I the is would year-to-date? incoming

Michelle Brukwicki

is about think Yes, on for But our incoming customers, gig XX% in I whole XX% base. at service. customers, today service say our for I we're would gig Yes. so for coming we're incoming on about at

you see for ARPU So the usage. customer that's the customers we of bit meeting course, demand to and, keep that's broadband up of why moving speeds. helping also stack improving of that and customer continue quarter-over-quarter, our a And drive experience our increase

Sergey Dluzhevskiy

conversion are guess, customers pursuing have of [indiscernible] door-to-door are could your next to -- improve X force my front? your the to into that in And that either And last door-to-door to, markets, back your if I things you doing XX over question, addition also maybe what including that Great. comments sales more it. that sales paying on are to provide color you that the net to months? force Got additions, you you in of enrollment going things some would improve about

Vicki Villacrez

Yes.

we focus on of is on a working our huge this organization. lots of people So We've focused this this. and -- got

a last we as up year, We're turning addresses. year lot a well. lot yes, service So this of turned up

get addresses those up. top penetration broadband priority our is it so And our to sell and into

expansion adds broadband in because that broadband did our providing And have quarter in getting we that's our fantastic markets. in the we're growth net so total. And adds that net this X,XXX that's

from it there. But representatives to we little we slower there and just to About is expected. is finding selling. of need door-to-door our resources bit more people we a we're needed door, coming half what out than come more in our out door that enhance get sales had sales and And

And far really nice for that that the come based indicators been working on we're leading what mentioned, and we've we're last months. as us few working so on that seeing to through we're I see in so on efforts are right the telling And track some our starting October.

got resources now of so. and ramped focus is do the to our getting is all that sales are where right those on that's really there we've So sure up making required

Operator

closing I'd today's like session. concludes for call Colleen over back now turn Q&A This to the Thompson to remarks.

Colleen Thompson

out your we great Operator, to Investor everyone, off reach Thanks, time have questions, any for a with now. additional sign Okay. Please today. weekend. Relations all and can

Operator

you. today's Thank concludes This call.

disconnect. now may You

United States Cellular (USM) 1 Nov 242024 Q3 Earnings call transcript