Cogent Communications (CCOI) 9 Nov 232023 Q3 Earnings call transcript

Good morning, and welcome to the Cogent Communications Holdings Third Quarter 2023 Earnings Conference Call.

As a reminder, this conference call is being recorded, and it will be available for replay at www.cogentco.com. A transcript of this conference call will be posted on Cogent's website when it becomes available. Cogent summary of financial and operational results attached to its press release can be downloaded from the Cogent website. I would now like to turn the call over to Mr. Chief of and Communications Chairman Schaeffer, Executive Cogent Officer Holdings. David ahead. go Please

With morning's you, Welcome Chief to I'm our earnings CEO. everyone. good Financial Dave earnings on our Cogent's Thank had morning, review XXXX Officer. to Hopefully, and a Weed, is call Tad third you've quarter Schaeffer, press me our this chance call. release.

consistent a metrics, which in a Our quarterly we historical press manner number release quarter. of includes each present

acquisition our our the on transaction the our and our results. on of for X, Sprint materially business. scale Now few May closed business a comments significantly We expanded customer increase of XXXX. This and our scope network, base

owned thousands significant right-of-way of are owners, routes acquired of $X tens and our We miles with We now Our annualized facilities. corporate number rate numerous typically which typical revenue the relationships XXX Cogent base. acquired fiber billion. underlying run land companies. Customers of are larger dark of which We over Fortune acquired customers, fiber. than that optic of exceeds many customer route a large represent enterprise and

valuable for $X employees a network These Sprint of be acquired an relationships the impossible many for with value assets XX the business to on had business our years We billion hired the with over and employees. assemble Sprint an average Many of virtually company to We acquisition. of own. us would $X. experienced tenure prior appraised

the installment or over XX to million operating customers for million transit And for and the We installments. million month. services, IP $X.X will of enterprise per million first a serving months $XXX $XX.X receive losses providing for from year a monthly next monthly million in offset of total in then $XXX T-Mobile T-Mobile $XXX

capabilities combined optimistic the are cash the of operation. flow generating We very about

rates which in from many anticipate recent results run many savings our cost additional many substantial savings achieved initial of show immediate we We substantial our current exceeded areas, and in Our areas. expectations.

the had operations. Cogent we last our we combined Sprint business mentioned call, have the earnings and in As business legacy classic

As combined a a good longer will reporting be had quarter. business metrics. The we very no result, separate Cogent

Our million. were revenues total $XXX.X

Our reported X include QX. quarter quarter business as months the operations of a versus in Sprint the from full

adjusted an increase by as $XXX.X of from was XXXX. EBITDA QX Our million million, $XX.X

Our QX. from XX.X%. the only at EBITDA We a adjusted adjusted margin record X the a totaling XX.X%, $XX.X under T-Mobile service increase was of quarter payments the $XX.X X quarter in last in versus payment services significant IP million million agreement of received transit from margin EBITDA transit

debt gross both our the XX is EBITDA trailing in and months Our to adjusted net significantly ratio, quarter. debt improved

X.XX. debt was as total gross to XX quarter X.XX of the adjusted at quarter end and at ratio of the trailing the our months net EBITDA end ratio debt Our was the

in and This in is levels compared improvements next of debt to X.XXx over net a a leverage these debt We QX several of X.XX. gross further quarters. the anticipate

XX% the Our growth and better network by traffic traffic had was X% XX% sequential increased was This up acceleration growth growth. we in year-over-year seen traffic and than rate X% year-over-year. sequentially the QX

other $XX have We the several North anticipate Sprint achieving to from a we network, next over in and for over synergies. SG&A achieving next synergies million of begun anticipate We network American years, the Cogent's additional $XX expenses wireline International cost savings annually the $XXX North network. realize And from Sprint years. X to million and American million reduction revenue of O&M will annual the continue savings

is And savings very these exceeded initial on achieving encouraging. in in progress targets fact, our savings. recent Our

a increased sequentially year-over-year by Our XX.X% total to revenue $XXX.X increased basis. and for the XX.X% by on quarter million

under commercial this last number productivity included our to of This the contract. full-time the commercial X.X productivity quarter X,XXX T-Mobile services rep and because for equivalent orders equivalents. at quarter X.X Our full-time sold services

This T-Mobile contract. in commercial our million transit to addition IP service contract with is $XXX

we reps to fully results sales receive productivity Cogent's from the products enterprise and acquisition, training not total had on the were hired as In continuing included employees. rep are of the customer impact Our also Sprint, productive. connection acquired yet equivalents are a counted with which of full-time XXX we that and now Sprint

the During in quarter, XXX now with being X.X% We from or actually counted were reps the full-time our the reps the Sprint reps full-time a equivalent sales reps and XX total decreased hired due increase equivalents, quarter sales primarily ended full-time X.X%. by to as equivalents. business that XXX

with optical transport wavelength our to connection our for businesses. optical or services acquisition services optical Sprint wavelength comment outlook. Now we've utilize the transport Sprint and the on of In business, expanded a our of offerings network

selling We services ongoing to customers transport customers and their from new without dedicated customers and and existing own wavelength The customers. Sprint acquired capital are expenses owning infrastructure these require optical to of network. the

connections Our $X at quarter were end. XXX customer wavelength quarter revenue there the for wavelength million, was and

locations in XX shorter sold of with wavelengths have cycles. total We a provisioning

to carrier-neutral have sales We capabilities in U.S. with the cycles. months, longer to XXX locations approximately data but provisioning over center we and locations able XX offer with be provisioning expect In in wavelengths in cycles. wavelength connectivity more over rapid XXX

this metropolitan-owned miles of route materially of approximately IRU IRU We fiber XX,XXX approximately network XX,XXX miles of that redundant of miles fiber Sprint expanded network. of part footprint. as redundant be XXX leased route to and Our will miles intercity the added eliminated were Cogent cost-saving our intercity X,XXX in acquisition We XX,XXX quarter. miles our eliminated owned route network. fiber route metro is and fiber approximately measures. the Most miles of We added route of fiber,

in and facilities date, carrier-neutral centers. the data those the XX the centers that Cogent of and centers we facilities proprietary into acquired Sprint data to data We Cogent operate add the we will all data acquired XX converted into of X,XXX Sprint centers. have reconfigure To

comment our program. on a for Now dividend

During million our to regular the quarter, we returned our dividend. for $XX.X shareholders

quarterly increase cash strong sequential the on our additional the sequentially, $X.XX flow our from our dividend per our increase This an in per which investment $X.XXX a share dividend. per quarterly in consecutive generating dividend by raising Our yet again our to annual reflects capability acquisition, Board to opportunities, including quarterly dividend decided rate and of regular X.X% $X.XXX Directors, share and growth XXth share. represents Sprint

future expectations. comment Now our on guidance for and a

that per Now of XXX have per business a Cogent margin combined the of Sprint expansion long-term we and with anticipate X% growth the X% revenue EBITDA points approximately average basis year. we and business, between year

were guidance to quarterly EBITDA be multiyear goals not and intended and specific be revenue Our annual guidance. used to are intended or

will entered that impacted $XX.X these quarter leverage future May EBITDA million. adjusted our with Our of month our as by transit we million Beginning $XXX impact 'XX, in beginning second into will T-Mobile. million per be and have were XXXX. That leverage adjusted, reduced EBITDA in ratios ratios payments IP of the $X.X services as and agreement the to reduction from

measured However, trailing basis. XX-month these on are metrics a

to language like our safe Now to metrics additional I'd Tad the some quarter. and ask read provide performance harbor for operating

questions Following will answers. the floor for our we and remarks, open

revenues are on actual the may all on may expectations. Thank cause subject corresponding this actual SEC call the obligation our and to based off-net, based you or If a materially. upon everyone. be cogentco.com. type. that are GAAP posted earnings that results these our our to differ statements. upon refer and wavelength statements and to revenues conference And use made is update find risks on and more also analyze reconciled you, measurement customer good measures statements and results upon during factors could that type, are revise undertakes we These intent, Dave, not Please website our facts which call noncore call, This analyze differ. belief connection our our Cogent filings network morning uncertainties, are historical statements. information number non-GAAP We at releases to current of other services. no forward-looking will includes forward-looking services to forward-looking our and in earnings These based to forward-looking financial we statements this that for on-net,

our customers. customers of X types: and customers corporate all customers, into classify NetCentric enterprise We

are office through connecting These to bandwidth professional corporate office to data customers in firms our carrier-neutral multi-tenant data services Our network in corporate our located multi-tenant customers footprint. in centers. buy educational large through firms or services institutions buildings, our from center network buildings and or us financial typically carrier-neutral connecting

and as well providers customers amounts consumer bandwidth centers NetCentric significant buy service and serve and access who of us data and carrier-neutral networks include from Our as distribution streaming content customers. business companies

generally upon price corporate purchase and our customers services megabit. Our per enterprise business. and the Comments our based price services a corporate customers on on NetCentric location per our purchase based

not country, operate continues that we where areas estate and leasing continuing returned real market central activity estate real levels including business in the X leasing of most the card be districts, some districts Our business in activity indicate level has corporate key improvement influenced business by to of year-to-date, statistics, swipes regions. and geographic buildings certain to the activity central and pre-pandemic seen and has but in

to continue remain revenues the challenges effects lingering of our environment outlook uncertain the given pandemic. in for the from cautious We corporate our and other economic

We for Our the the corporate increased corporate our by our corporate business year-over-year year a $XXX.X connections resulted decrease had XX.X% represented at customer elimination quarter, year-over-year was corporate corporate sequential increased revenue and and last our X.X%. for in customer XX.X%. a to -- by of network of XX.X% sequentially of on quarter customers. from a revenues million primarily The increase quarterly noncore X,XXX decrease of and this XX,XXX from product end, sequential net connections XX.X%

SIP which these X,XXX-session During noncore we the initiation eliminated quarter, were of customer X,XXX X,XXX connections. connections, protocol of corporate customer noncore or

SIP X.X% corporate some products that our due connections also corporate Excluding last reached customer end was quarter and connections end of the that X,XXX by connections or the of noncore decreased other impact being customer to by life. from of life,

was impact quarter, $X.X $XX.X positive a of our the sequential impact revenues corporate of million million. the year-over-year positive a on USF and For

on the Some comments NetCentric business.

continues business in streaming. growth video NetCentric to and from traffic continued Our benefit

X% quarter, our and sequentially accelerated growth by year-over-year. network up and XX% the traffic For was

Our XX,XXX was earlier, of a and of year-over-year. X,XXX the by network end reached services agreement customer and of a at decrease or that at X,XXX quarter, XX.X% At revenues the included NetCentric our year-over-year X,XXX grew in increase business under SIP that and of there sequentially sequential Dave X.X% to customer decrease connections T-Mobile of NetCentric end connections end XX.X%. connections were mentioned had customer XX.X% connections commercial our the commercial that quarter T-Mobile. the million quarter product end. and by the NetCentric the customer with the services life. customer for NetCentric the of sequential on $XX.X our X.X% Explaining connections, That quarter grew under with NetCentric represented of We last agreement

from life these customer both periods, impact under agreement, SIP T-Mobile customer both connections. NetCentric that XX you end the of the connections services by the and sequentially exclude of NetCentric product increased our If connections reached commercial

Our enterprise for XX.X% of business was revenues our the quarter.

reached had the corporate, enterprise enterprise end the connections SIP that of at SIP were last network all and the revenue. that whether connections quarter, term end-of-life product all -- QX. customer on-net end connections this of Again, at of quarter. quarter We and our all was there canceled they XX,XXX NetCentric type customer There or by enterprise during X,XXX Revenue were the were noncore. connections

Our the was X.X% for That quarter. XX.X%. million a on-net increase and year-over-year was sequential revenue $XXX of

on-net serve on-net the buildings. customers center office at multi-tenant the in total in data Our connections XX,XXX on-net quarter. carrier-neutral end our were customer and of X,XXX We

and XXX selling these We larger our revenue. gigabit on-net selling continue connections XXX increasing the multi-tenant XX-gig gigabit office select and and centers buildings. carrier-neutral Selling has larger to impact year-over-year connections Off-net connections ARPU. in connections data gigabit succeed

the Sprint off-net off-net year-over-year Our revenue locations and new XX.X% off-net of of for $XXX the customers sequential business, a over These buildings quarter, increase was XX,XXX North are located XXX.X%, America. in we buildings. off-net million off-net serve now including primarily from our increase in

was by the increased and $X million for revenue wavelength quarter. our revenue, Wavelength sequentially XX.X%

connections Our wavelength Noncore end. were at customer revenue. XXX quarter

our were again, total Our -- noncore this pricing. SIP connections, the including reached customer quarter, of customer revenue at quarter, noncore XX,XXX that X,XXX of the was for on Comments the connections quarter included quarter. million end end noncore last $XX.X life customer At connections end.

our megabit increased X.X% per increased base for and $X.XX X.X%. installed by price to also year-over-year average by Our sequentially

and ARPU, Sprint year-over-year primarily increase X.X% the $X.XX $X.XX price and off-net average a was for XX% on increase increases the last ARPUs. impact was over quarter per sequentially our contracts and of almost all on-net Our the decreased megabit for of customer around. Comments the price ARPUs business our new from quarter from that of

However, our off-net year-over-year increased. and on-net ARPUs

the for and by last by Our X.X%, from on-net to $XXX it ARPU quarter. our year ARPU increased And on-net decreased sequentially to X.X% third $XXX XXX was $XXX. year-over-year,

Our it off-net for ARPU $XXX to last our decreased XX.X%, the third sequentially net by increased was XX.X% And $X,XXX. quarter. year year-over-year, ARPU from $X,XXX by

rates. Churn

for business rate impact of did on-net Our increase business quarter. the this connections our for the the sequential churn from combined Sprint

quarter, was unit last on-net rate X.X% churn Our X.X% quarter. up for the from

churn These do on-net which not Our X.X% our flow was operations customer we for each noncore slight to quarterly and number quarter. X.X% the from unit a EBITDA, cash last was reconcile churn decrease in off-net releases. rate large rates include quarter, from EBITDA On press of connections. of our our off-net churn

quarter. incurred acquisition million $X.X noncapital costs compared million We to of last Sprint quarter this $X.X

the by million $XX.X by and Our increased $XX.X sequentially for million EBITDA quarter decreased year-over-year.

increased XX.X% last margin to XX.X% from quarter. EBITDA Our

adjusted. as EBITDA on Now

quarter, agreement. All and million been agreement under paid we $XX.X with billed agreement $XX.X services the this the the We EBITDA payments as includes Our IP billed as under which costs IP agreement Last additional received of and transit and adjusted, and quarter. million billed under received cash our services the $XX.X this X for million million collected payments. $XXX on services call, amounts Sprint under IP transit transit T-Mobile. we collected acquisition have time, adjustments have

received cost record margin under last and the This adjusted adjusted acquisition agreement company was Our payments revenue. a costs quarter, a adjusted the additional increase EBITDA increase $XXX.X as as XX.X% and IP transit margin. an as IP both from services under from was transit Sprint in XX.X% that services the as $XXX million increase a and cash agreement the EBITDA and and payments substantial reduction quarter, EBITDA million was for for

impact. currency Foreign

of quarter revenue outside revenues based quarter the dollars revenues our current quarter, be average foreign Mexican, concentration. U.S. a dollar of American about the about States positive The these FX about and We the our be our levels $X.XX revenues that our their reported our and highly were euro about for is Our $X in operations. we rate base earned and United rate South of to customer would year-over-year XX% is so this average If on XX% Europe, average to in approximately quarter. Canadian U.S. Oceanic African this related exchange was is of and About this and X% Canadian, far $X.XX. exchange revenues although increased impact with conversion sequential Sprint not Customer believe the impact our at conversion would the a FX acquisition. has is revenue of very $X.X million. concentrated, and it million, remain rates estimate negative, that the dollar

XX the the providing our of top in business, represented commercial acquired impact a of customers the Sprint customers quarter. Including T-Mobile the enterprise business, Sprint under we of services the larger this with XX% our acquired and are services number revenues about customers agreement. We to

$XX.X finance as leases. $XX.X CapEx quarter. compared million to quarterly known On leases was capital decreased Our materially and this finance and payments, million also quarter last lease

to the and XX often include Our of XX renewal have for after typically terms lease initial or fiber finance years term. options and obligations multiple IRU leases long-term are initial dark longer

finance quarter $XXX.X totaled at end. obligations lease IRU million Our

a have several relationships of different suppliers set IRU contracts diverse business. the new fiber with with of We dark XXX dark We fiber over IRU very Sprint acquired suppliers suppliers. with and

under leases During the accounting lease a quarter, lease to finance operating acquired liabilities assets. our resulted to lease assets accounting liability. from a This acquired -- purchase measurement about from adjustment recorded a period million U.S. reclassify reclass of $XXX lease accounting from use agreement XXX finance we to operating standard right these T-Mobile adjustment of of a almost for GAAP in

million million. by expense increased by per of adjustment run corresponding our and quarter $XX The our cost also about sold $XX.X depreciation goods rate reduced

and cash and flow. cash on cash cash equivalents and cash At end, comments our quarter restricted Some $XXX.million. operating

November of $XX.X to cash Our interest swap fair of agreement. X. And tied million restricted is rate estimated of our the value as

So from reduced million. the to valuation just $XX.X $XX.X recently, swap million

are cash agreement the under our classified flow payments agreement. the impacted activities and IP timing U.S. transit transit operating under results $XXX our activities. under not presentation and investing T-Mobile operating of agreement receipts payments as cash transition our Our and the GAAP materially services of considered million the are are Payments from under amount by IP with

use the quarter impact provided agreement mostly cash $XX.X $XXX.X of Our a no a PSA due operating positive of the to cash were payments services transition from the million was made flow quarter, million quarter, the compared for last operating agreement. quarter. $XX.X million of the since flow Last during or

the under and $XXX.X due. paid million terms quarter, when under were their This we TSA payments the

with Combined under this on item Most provided direct TSA under last is business cash under the changed TSA amounts from by million. one T-Mobile billed paid was Sprint our TSA the of for $X.X million amounts of and the paid for vendors from $XXX.X quarter behalf. reimbursement quarter, the the this that net line quarter, are

vendors our year. the have systems is agreement IP the expect million. payable to We transient transit to remaining of payments by and end transition IP the $XXX under transit the

investing million Our agreement under as activity. increase debt cash $XX.X activities in this transit cash recorded are net Dave investing $XX.X Total provided compared a last line investing investment provided million activities cash quarter. item, by were quarter was quarter. IP this million received quarter $XX.X mentioned last ratios. used $XX.X was million was to and and and the million $XX.X cash for sequential activities of debt quarterly this of by That payments

par, Our our $X.X $X.X total gross end including was at billion was finance our debt and billion. lease quarter debt obligations at net

as and this ratio debt months gross net to our debt total EBITDA Our improved adjusted quarter. XX last significantly both

as debt ratio months X.XX ratio net X.XX. debt XX EBITDA last to was total was Our and gross adjusted

X.XX ratio of quarter adjusted trailing gross last material debt a There's X.XX. net as of improvement to compared debt ratio and

reduced last from calculated leverage Our indentures quarter. X.XX ratio, to note X.XX under as consolidated the

-- from slightly X.X note to our calculated Our secured X.X leverage ratio X.XX. from as up increased indentures under

comments the Additional agreement. on swap

our each quarter are with rate agreement value We We rate recording at notes. end based rate record an market noncash swap the a The that modifies increased swap to to due obligation the upon fair $XX.X associated by period, from fixed of to incur the interest value term million agreement in to we for our variable notes a last of obligations our and of overnight quarter XXXX losses rates. fair changes $XXX rate party estimated our agreement interest interest at financing million. corresponding secured XXXX million the or $X.X gains of liability interest swap remaining the

to We previously, counterparty cash I restricted mentioned And the swap balance the are to a with maintain X, to of reduced liability. required our valuation equal as November million. $XX.X as

Lastly, some comments debt and DSO. on bad

days outstanding or Our sales stable. remained DSO

accounts worldwide as days, last receivable for same was DSO Our the XX quarter.

In quarter, completed billing the customers process. in will platform. we of business fourth that Sprint we the fact, Cogent be And the the just billing converting for

outstanding bad from thank doing results. our expense Our the serving for turn for of call them only we collecting in debt and members, business. and billing the job $X.X Dave. new and employees million billing legacy customers the Again, our newsprint was We're customers and Cogent Sprint back worldwide quarter, recognize a only billing and our converting collections want our Cogent I fantastic billing and to our X% system. Sprint now and team over to revenues collections will to the including

sales Great. network, base highlight force. Thanks, our like a strengths I'd Tad. and of customer of couple to our

business. traffic We legacy our continue growth and at revenue significant to NetCentric experience

particularly international other of by direct independent quarter's grand we carrier-neutral research. centers, third-party At in any streaming centers data Cogent's than were and total measured beneficiaries in screen as and centers other more X,XXX markets. X,XXX of owned over-the-top We end, data on-net of carrier are agitations, a data for increased XX fit

our our legacy. The NetCentric reduce of breadth enables coverage to optimize and better customers network our

project that add in continue and XXX approximately year this we the to next expect several widen network We the to lead an footprint additional our over carrier-neutral years. per will market to

To additional these X we technical facilities. data XX We of former have converted date, Sprint to Cogent convert new expect an to facilities centers. the of

able ability provisioning As with additional reasonable of be our XX to reduced and to in services. in a those expect services in to XXX U.S. provisioning prolonged In quarter. data traffic carrier-neutral time. the wavelength install centers today, the wavelengths with was we data substantially months, selling wavelengths are whereas sell in XX carrier-neutral know growth locations we windows, XXX next I centers accelerated

sequentially operators directly X,XXX traffic the and networks directly mobile rate subscribers reach fiber collection XX% ISPs, growth us interconnected most At phone we and and We of and of world customers. broadband other by end, the agreements. are telephone footprint the additional and X% This Our in our network companies, connected quarter's allow carriers year-over-year. IRUs owned expanded have vast with increased Cogent. mobile to majority the cable to world's companies, and

teams focused responsible of the will had we XXX on market. largest This in be group X market. wavelength professionals sales end, industry. the successful solely of primarily quarter's our growing is NetCentric At the for professionals most This team sales

couple Now of for comments our on a business. corporate

positive in Corporate corporate environment working premise. of seeing of both includes business. We our requires are inside the applications new connections, trends This high-capacity outside video customers their their integrating of conference. part and streaming in increasingly regular are use

Our aggressive centers corporate coverage carrier-neutral PNs Corporate customers the work greater partial a costs bidirectional post bandwidth for increasingly provide to support demand environment. redundancy hoc X gig hybrid gig ad our for XX in are ports. buying begun for data connections to and and symmetric has lower

services. Our Internet and our dedicated enterprise access on to customers continue focus VPN

terminate based We was significant the last noncore are voice in and initiation of reduction protocol. quarter that on the you to session continuing elimination the services saw products our

our comment training force We on force a sales for productivity. efficacy. on our remain improving focused Now sales and

sequential to We total sales head do reps. XXX a XX our manage out basis, by underperformers. decreased count and On

optimistic as during X.X of remain We serve turnover and rate rentable multi-tenant transport enterprise position ability up with sell central very our pandemic force was unique of the networking a the average feet space the to in as peak to small- our stable medium-sized optical customer well office businesses We're over Our month base at sales addition long-term square sales about large force X.X% a X,XXX and quarter, about districts. our our consistent for turnover the to and of the buildings, NetCentric in from per of of located enterprise representing rate excited customers. X.X%. billion business X

remain encouraged demand center expand and our in footprint. our also to We that footprint by data ability

of and of significant unique We backlog a X,XXX orders have wavelength funnel wavelengths. approximately

experiencing, However, all these are of will Currently, activity longer cycles of that tenants improving and if employees activity, due vacancy to work unsure all to to continued of we into opportunities to rates we temporarily decline. are indicators commercial to reentry convert provisioning return office continue office key we install require leasing orders. see as their offices and have

decreased our dividend location, taking corporations for will have Certain million grow $XXX buybacks that amount customers. of we footage cash of addressable indenture, allow Under unique ultimately available. general of available including corporate exceeds that amount we have amount for have cumulative our a the are square actually cash per to basket, the which market our us

So to be we or and/or have effectively for use activities, the buybacks. it dividends whether ability friendly cash all

annual of business. Sprint million the cash excited and integrating $XXX Cogent capabilities. We'll $XX to in American $XX the million savings on North in reduction about optimistic network, million achieve and internationally flow-generating working diligently about We're continue are We expenses. on

savings We years. synergies the also next cost and anticipate additional other several over revenue SG&A and

questions. to like the floor I'd open for Now

[Operator Instructions]

comes from from Greg question TD first Our Cowen. Williams

Sprint unpack you've you I by the bit. EBITDA I Cogent a the way. Dave, by integrated the was hoping can with know it little business be

million. are as it looking at investors $XX core for the around it's Cogent So EBITDA if

Sprint million business. like the then burn sounds GMG T-Mobile and they $XX GMG the to we're And it another add Sprint then to you from subtracting got payment, it. appreciate EBITDA the more going You're from

more the do And $XXX year guess to Where a when is is, cutting break you you're close expected, anticipate even still faster? rate run end even question said are X rate by you million that you at of the earned. we that I or if could So business run year accelerated you question be breaking at today? typically, second the Or is, then than X?

Yes.

Tad as we're longer the segregating So customers. mentioned, no

billing So single part Sprint single customers of our in acquired the and are Cogent integrated fully are and platform. accounting the now

We services are comes immediate expenses schedule gross reducing margins. products. to the X,XXX were most we of terms allowed margin Probably in able the in business. ahead SIP us of to of eliminate of savings negative nearly that significant the from improve The elimination the quarter that

not termination of That the occur end did the quarter. until

XX signed of year was initial with it a September life of T-Mobile in XXXX. of ago was termination. the customers of September These end given these So a early were when transaction notice products

As a that part number products that of the to agreement, The identified product agreed XX elimination of products. largest those margins. The products. life negative end SIP T-Mobile of for of gross carried was we

So able eliminate. costs that products in the they direct involvement or to employee are either been to we've

eliminated, you majority not for products the reductions. noncore, cost the We X,XXX are products not customers also saw continue we was in those running quarter today right schedule a better of There were our and that synergies are that feel the of now But position years were was. post reduction that of do should to cost other eliminated be closing. but that are modify all are breakeven on in ahead the X we able corporate being SIP beyond to products, in it noncore to non-SIP achieve

us possible, with away to as contract, products. customers unprofitable customers we're what just the manage going also require some But through contractual as as do to So each that T-Mobile, XXXX. of part trying quickly to customer's of end services these honor provisions and is provide we of these our have from agreement are

the it in cost. is we our out in reduction definitive were schedule so why to ability So

reduce to able is to burn. helping cases, customers products some that early to in and us cash these the us Now allow an convince been we've in to terminate us added benefit

question from My David from next of comes Barden America. Bank

terms first just for maybe Dave, of wavelengths. on just Dave. Alex got You question here, in

expect in bit be you I and missed our here run of sorry And quarter-over-quarter? talk of SG&A think just what little about And for the decrease revenues secondly, can what little it I lighter next could XXXX. And where think heading the SG&A you if frame end you than it on you kind into the came bit call, on of year? wavelength in at the the should rate opportunity then then drove the in kind expectations. a a we more but can --

Yes.

wavelengths, the had very a previous So provision adequate where we provision On narrow call, of take a XXX-day set a a locations we where in those I'll within larger we XX-day earnings but and not commented we within window can order. as window. on can of still set locations

locations give the XX about of from number the window our not to we've also increased for days, we XX-day we have reduced can that shorter that within services. SLA still transit down provision We window, partially that where target XX

caution wavelength orders a installed and daily have result, in We some basis. I those being our these provisioning some sales orders have a either our though funnel be ultimately want on over will customers there of X,XXX That to or get orders that orders, XXX- to all not additional would to XXX-day may of will meet unique And frustrated. as objectives of growth provisionings. added may in that be funnel.

already just what wavelengths the in While we quarter of X streamline the so about expectations, are last we wavelength just taking we that number this had provisioning to trying to services, foundational quarter, we since manage XXX provisioned we're of in got of of provisioned the basically base X/X past those additional weeks. steps a our have close

expect that accelerate. to pace continue to We

we to that close believe post wavelength a closing. also million of run We sales on revenue will be in rate $XXX

some will head the to million think, ubiquity locations the wavelength of uniqueness run I reduction. a the SG&A, and do seeing that about all it monthly are in we're of we routes of that And serve, wish due month. to funnel, in and be $X for the think, our indications May of is order of So continued interest supports I rate should XX, count that sales our sales the better. On

are it to is SG&A areas we've Those improvments. consolidation. been of that facilities two the main able Some achieve

was There That debt substantial a a in also bad improvement million expense $X reduction. quarter-to-quarter. was

So we than quarter. were revenues of this less X%

typical revenue. of Our is bogey X% about

reestablish but to So was reserves. quarter we we outperformed debt bad had as last expense abnormally some high and on that --

which think quarter, I think the debt we've we're in history. is company's at expense X.X% bad lowest this had I the

comes Raymond from question next Louthan Our Frank James. from

improve. the office for I returned want really business talk if about to the outlook doesn't

that office of of doesn't you've And hit in on goal? term need options happen kind do to guide long level if of still that? return are environment? And is that kind occupancy over given we long-term long-term to the hit what that guidance of that then much how to dependent out an So improvement of what to your achieve the kind

Yes.

So we to being our to levels office of on revenue base the current our being today. segments growth to corporate now exposed Again, growth. corporate and X% X total long-term have are diversified at having predicated discrete that pure performance targets X% they similar are less occupancy

to tend their global more customers enterprise much in be footprint. Our

you, XX% Just total Corporate, NetCentric, are to are remind revenues XX% Enterprise. of XX% are

XX% Our NetCentric X% averages about at business a has that have X% actually continued to possible to our range growth elevated remaining rate in outperform to rates is districts. and business in total revenue central with long-term ability vacancy

stats growing traffic our While the NetCentric business from in saw we and sequentially believe to you can as that and XX% XX%. year-over-year growing we X% last fro at accelerate, to will that vacancy is continues growth guidance come are also provided number our elevated sequential these X% down, growth it levels moderating, our to on we achieve rate predicated guidance targets quarter and which growth

material about wavelength are So improvements our optimistic of that the longer. very sales continuing And breadth we finally, our backlog. opportunity then in on based business

mentioned of conversion what million you from recognize the is rate an a And for kind that be to able quarterly of run what rate the sort to to you'll on quarter? in $X of run sales that waves sales,

XX% waves range million quarter throughout achieved quarter. in quarter. of I sales guess, in not So building wavelength for $XX second the the this be rate that But sustainable. the, obviously, I quarter is for the the say moderate. will probably 'XX, will growth growth rate sequentially would That we of

comes Walter question Piecyk Next from LightShed. from

sequential questions some just business in to a basis. Dave, basis, like I just on a that parts corporate. lot there, now sequentially. when on it but know there's it grow was that pro I'm looks down forma expect Sprint/T-Mobile on a curious you that you have moving of

would it being disagree down. with Actually, I

other I grow. as footprint, majority connections customers non-core in the down product at customers. was the we think our and looked number the the acquire of SIP corporate Sprint did what we products. elimination from as actually saw We of If enterprise corporate was of MTOB well

with kind of disagree of your premise So I would statement. the

numbers, Tad I revenue in pro helpful. pro be know maybe great [indiscernible] and actually type providing have EBITDA his if remarks forma reported. you but sub It'd growth been prepared would forma more

growth similar the quarter? be look fourth going we a there quarter? the there if at So the is to then, terms of fourth of be the should end quarter excuse Or in in type actual of at shutdown sequential the fourth

were SIP significant are products there as losses T-Mobile, the eliminate as These still But non-core the negative we products run trying have possibly we the are to gross and we products. that as of They margin. these said, a rate... largest Well, contributor at carry quickly to was can.

you is non type the then give of some baseline what us can corporate comparable. of -- So for

don't generating we revenue of the like, gross margin. always we stuff non-core what stuff, in churned off corporate the baseline oh, So have is of just that's like excuse

non-core rate go So we of and separately, possible. products of we products the to zero as million. close report That had as non-core or run those $XX will to zero a about

So $XXX the from For was that is corporate of $XX million that reported. Any in million. quarter? revenue million the $XX that

million $XX non-core revenue. is

But corporate, non-core yes. accounts

-- of So majority is that is the corporate. in that

$XXX the just growth million release going to forma and in out the in as true rate have a question $XX in lease put transparency pro business. your So to whatever that get quarter, it is that would just minus -- give we'll press expense. actually we'll figure baseline you on is. million, an the maybe basically what's corporate and effectively, also million and number better suggest update I provide I a the on the to X on $XX organic your every have what is, then

So was -- you out $XX.X OpEx. I million it moved of like think

your in $XX.X So CapEx. you boost by the million EBITDA

at lease that $XX So look I that if was like number I CapEx, on million? think

in payments payment. because is not a a It not it It's It's is CapEx. lease CapEx. principal in

Now I understand.

exclude for that this CapEx, always CapEx. I do consider the telcos. Telcos from try that I like and whatever to So

number? But moved fine. moved everything it statement, ultimately million? how do fine. that you line, that's to on you flow Is look as recurring the we cash matters. bottom cash obviously, Because So like that that it, $XX.X you free that Is -- at is helped a flow EBITDA and

That's yes. in change a accounting. Right,

lease So it will continue expires. the until

and assets, we lease there was in obligations the approximately network treated get lease the an will And capital value with be met to indicated, was of that as of value correction, appraisal expires. financing the or $XXX all lease that million to the to opposed uneconomic was lease. the appraised reduced for fact, criteria operating a acquired and the it associated that to until as This as this just for of the billion lease, continue majority this a in $X but lease

the $XX capital how guess was you're principal I is, But it, million. payments, lease calling

million I So right? helping EBITDA. only that your of have that $XX Is out was of OpEx -- moved million $XX it do

about Yes, that's Yes. right.

That's correct.

What $X quarter was the other? last was Because million.

what So $XX other capital flow? -- million are that that's those your of And ongoing what an the pinch million going payments payment are $XX is to or cash are lease? free that

those over of total suppliers IRUs IRUs, and fluctuate. a have different X,XXX XXX unique we So

quarter run quarterly, principal summer a... And annual, get you extrapolate on the can fair we've that $XX on Some capital pay a the go and are annualized the amount this to see rate take monthly, or based volatility annually, some and a and million upfront. end at of additional you back are add And paid that would payment rate and had are some sequential look that but lease can quarter. paid you paid

Is is include -- the legacy obviously what that annual didn't Sprint. because So rate?

$XX adding what and , had I'm Because if $XX the I 'XX is legacy? million. you So look million at

basically it's So you're to saying be... that going

with the business. lease finance Only acquired

only incremental the is lease. This

finance. Only

payments, but impacts go-forward want flow. it, we're call you to principal what talking like that the $XX million you cash CapEx, what So whatever call on free a for basis I call

correct. That's

Horan next comes question from Oppenheimer. from Our Tim

bookings? Can you X, $XX then of a years rate from that on the the revenue will will second about where be in actually clarification I think Or sales you And is maybe you sales quarter you EBITDA Or recognize of is million quarter that just another bookings? now? level time? use where recognized revenue at run take next bookings. of think talking that wavelength Also revenue. going the actually X it you set sales year, margins will mean towards just that to are you your wavelength be revenue? Are which

that and closing. couple talking be point, -- in do and then probably number and but target, have revenue. in consistent actual your expect well do bookings, around wavelength of going clear, we we about recognized X again, quarters to reporting growth revenue until the don't that's will this the for of years provisioning and that additional a $XX investors something cadence a pipeline queues. to only reported, answer And bookings sales begin install doing backlog And next We're in and our term, is not provisioning I as and not presenting we a we But to we be And windows. use funnels necessary. And from installed to question run short go X-year see as actually to the But think to will at I'm to reported. of something shorter a about shorter be historically number anticipate revenue. is rate, with backlog million idea that revenue,

away anticipate in combined $X.XXX of of on of a the but now. sales billion being We 'XX wavelength be in and because excess stream $XXX be $X.X payment May rate billion the X. -- million a getting T-Mobile, still approximately be that will we which going we'll by 'XX. probably right business that will of probably of will So $X.X be up run running last run that And bit a May total billion, mid-XXs. rate at year $X.X the from for to EBITDA a we're for little margins will billion, be year from counted, And above

bit Can pricing wavelength had on, going color market. just market that now in the that the overall a And think, more little market. you helpful. growth the time Very give us in and what's that you've and volumes competitive more you to be do of dynamics just with

set list fortunate I've the indication in are of those The those long. signing facilities, The that is people centers, we're I taking is that wave-enabled already mentioned that. Yes. between seems And closing. and in but connectivity we're facilities. actually yet demand the we a good backlog fair want is since amount robust. to, orders not a during did of customer It data mean, closing, of outreach and period

sell One, So And in we it in there's we provision the two, then even two wave can way. a expeditious of steps. can much more kind facility. a

We are fronts. both on working

of of of In larger demand seeing it companies, the our broader customers, players from of set, that And content seeing growing approaching been buyers set set wavelength we content in businesses operators. centers. AI-centric of a terms are seeing but not number and hyperscale-type it a to buy some data us wavelengths network these from traditionally small and some access -- had we're we're regional a of international

more of NetCentric So the I've private just historically The a we're who some from constructing about. enterprise Sprint waves are enterprise perfect other on spoken expensive buckets and Internet. three networks had utilized than And finally, buckets. four A customers transit seeing wavelength discrete bought are independent is customers that who basis. then

Internet it for transfers, reasons are mile of However, a from greater having attributes predefined per premium the for companies large diversity complete able latency and why pay being a bit three security. Those has support file wavelength. to will the positive the

comes question next Deo from Del from MoffetNathanson. Our Nick

recorded. what you that's I balance bit. a how least didn't the quite went in TSA of terms like catch at It of the all value owe sheet T-Mobile Tad's regarding comments down looks change or

off is their What's you're their think that a now. that just system to off front? function Just getting do on you to that platforms I of billing review, faster. And effective left noted

Yes, with associated the TSA vendors. paying is entirely

were paying In the assumed behalf. and wireline quarter, the our were they that been the with on May business billed we June. vendors down. has So for initially, of winding And second we XXX%

However, those yet. due not payments were

we three cost monthly the payments, quarter, in cash revenue payments similar no $XXX charges being made made the we activities on second IP of those quarter. operating instead side. million. In resulted from the this have That in side but So the to Transit, flow of about

owe at item So we end swing $XX in the cash we still statement. activity. that quarter, the were X million see of At look large which the agreement, essentially if you TSA under that's line -- is the months of why you flow the

nature that payable of the have to migrated pole vendors we most their one upon anticipate as our of As we just long migrated the surprised, we The the by in no the end having vendors circuit accounts tent, of based those year. migrated. are to which systems get vendors of would all sit take some and now, here be the longer

with on the And wireline its circuit instances, wireless business Right. that consolidated complexion of its for that spends T-Mobile in had many business.

do So very the on able that, there we're transitioning virtually are impressive, payable attributable as own to not year-end. we only pretty Cogent of of -- helping But hundreds scale. the I have in within platform our far platform all an to bill mean in segregate pleased arduous that of very vendor, a say actually to that's billing And have bills used. the terms of task with Sprint do but with is business that down think, our it the systems equally the that we'll acquired fact that vendors. cooperative we'll along being matter confidently is Cogent them I and couple I'm dozen really have has going T-Mobile of we Systems accounts been we to shutting to in portion the by migrate into platform actually forward, we had billing migrated have us acquired. be And that our and

still MCI. MCI. say from let's does say it Just If as on off-net then And not actually Verizon Verizon, the probably been bills MCI Verizon XX them. circuit reference, bill years point over acquired we says since it's of a get

funny. work kind getting That's funny, your But of quickly. again, system good that's over that moving

So question. a separate

markets might center et certain data you're attributes, locations there densities, data be cetera, that the Or in the your you more it's broader front, supply is facilities facilities, in the are that guess that or you mean a Sprint. few other benefiting center and for ones Cogent finding I interest is I a they quarter. not and necessarily center pinch dynamic? converted size On this data supply whether from power old converting ones increasing

Yes.

have, two of convert, centers power groups facilities the of the and another Cogent are to I'm both those So in We they in converted, footprint, The megawatts XXX megawatts tend Today, we've data facilities smaller, to all to because size about facilities. have going in centers XXX XX the anticipate facilities be from we are different. power. leased in still those Cogent and that facilities. substantially available including and coming we segregate data

facilities the on had biggest concentrated space rack power. footprint the of we that and So

by is that were occupied challenge equipment. second facilities telecom we've The unused had these

going equipment right there I trying not mentioned are to accelerate a of across a I We're year, that. on As service on call, take had XXX sitting the it's mean, physically at were week floor. bays about we're in the footprint. pace removing previous XX,XXX over that the our to but of now those

We XX,XXX have a a bays of today over footprint little equipment. support that will

our that is, that So will power vacant crunch customers can centers, now, for at the facilities really terms in in not short-term keep challenge when been these in least data has demand availability. been a There and can't strong. use. The the interest not have making power but and disappointing set of customers space promises we has

to decentralized more think component center the to our locations are facilities data who a of have their to I trying model. are companies venturous

those which extremes our of be those carrier-neutral kind their facilities for the data looking to two are third in greater Internet. very hierarchy, So and to they and facilities consumers a proprietary, for own large something space, of a very interesting the Most purpose-built footprint a are would have largest them. of customers currently to then center centers add data between tier, X-tier connectivity

are in point. to in centers. not around wholesale this at our But in capacity a position discussions just We again, we're sell

Brandon from Our KeyBank Nispel Capital comes question from next Markets.

through you then adds be, like impact could it did us be you have, SIP quarter, about Could give of from of And hoping how non-core the could that still segments. X next you the connection quarter. just would XX,XXX bridge I XQ help the XX the connections can end the revenue of trajectory NetCentric this the from much sound we excluding that sort the go shutdown. And that shutdown SIP will and talked of what get Enterprise revenue at us customer XQ already It right? end-of-life be because Corporate, standpoint was you to the a impact of helpful the to revenue, across September

Yes.

by Brandon. order So those taking reverse I'll start in

but first customer The the was categories, categories. was the of one product much that it away granted. we have quarter, 'XX every component also But they of across at reduction had probably a one going see completely It our the connections savings. notice an until SIP cost eliminated. XX are major it's was That are regulated, is a because which the the non-core received take end slower. till to most the these go was these we one and products And is we'll the then of be non-core group connections, are inadequate will longer. I XX,XXX extension, not the non-core largest went XX,XXX the others, for heterogeneous after much protested to will SIP. path much that least suspect FCC the requirement would that and products that of out first, biggest notice the X-year the wanted they was more

I for you. customer can repeat connections the

quarter. NetCentric June connections. Corporate, X/XX, Those you and X,XXX SIP numbers at and at connections, were XXXX. connections XX, zero. obviously, look are X,XXX of Enterprise the X,XXX at last end were are the the were the NetCentric When Enterprise, that's numbers at were And So all those non-core X,XXX of Corporate. and X,XXX

Yes.

all are less was SIP. there customer types. say across for will So for there's non-core NetCentric the three than I that connections, remaining spread XX,XXX they even

base So and it's in base than XX% Corporate probably be roughly XX% of would less it it is in NetCentric. the and Enterprise of

that the quarter. just at I could up? a these fourth revenue say of were in the September, and so impact And there's Did products you follow guys end end-of-life

what SIP this the that's get shut and of obviously, it I to doesn't were I'm expectations, that quarter. impact think sense I that below was at was down at trying quarter, that, the the because mean trends end make it

looking where So just total of next of trying and should sort to for going revenue terms quarter. in be we understand

headline big a of sort that, isn't there Dave. So

pushing with a weekly this customers we that might almost Yes. these was product ended statement. basis. reminding away. I going on up Well, disagree But them

quarter. were the the So of shut end off the stragglers at

completely to We, is but was in So down T-Mobile's of it closing why million particular, declining and under It ownership, at to since push was and more A these million a aggressively. revenue the was revenue Actually rate contributor declining was $XXX X was acquired gone. one-off we the business. in months at big is it the was about non-core SIP, lot end-of-life, I signing product products run and think, the later. $XXX in even ever

impact from products third while not these the revenue down very unit So count in the end-of-life material. quarter was was materially, the

more. Got that it. average what percentage what on quarter? do one terms Can have line signed do in wavelength I the the provisioning just of you And backlogs, time during Of in those of then backlog? X,XXX the of the you what's sort -- X,XXX in were

signed would the of I majority them So the quarter. in say were

dependent the wave-enabled average to wait are never And Some wave-enabled. XX backlog by to data of not we after some may signed closing. the that right it's in It very the need increased previous have of on two were facilities wave-enabled. is why in going get being may all until months We QX, on XX% number people about of frustrated. is install because saying these connected, because quarter. They be data centers actually times the centers on I quarter, an provisioning tempered comment by misleading the

we'll think accelerate. that I see pace

at a probably XX-day are provisioning both do in looked in can the you got of If it's more average, today. that XXX than subset are sites we you've because ends window, an kind days

window. in are mean that in sites site got longer is to yet a not we've are is I And then days, one the like window site waves shorter Some XXX one wave-enabled. more and

orders call of not months but those a of And take some that be X, customer could that I'm to working we convinced to X They all. we're install Now going wanted is still a not there as as get may those wave. quickly wait to the subset can. because sign customers, we

to responses move Brandon All Cusick hear we're any Phil don't to from from right. going on so Chase. We and JPMorgan

for is I of Phil. follow-ups, if couple Jerome This on A could.

margins of on, And for change how into and this for XQ, You cost quarter how along? quarter. should really the about and you fourth how to there weaker us about mentioned we to you that the corporate, should think conversations should trajectory. customer growth just level Could has starting that's think about you been the in markets corporate grew any that XXXX. are that come quantify talk going Could potential about look talk SG&A XQ some pick could we into up? Second, heading in overall and in cutting of given the the

Yes.

corporate rates of had rate growth XX%, was kind underlying on the that of we it average. That's had say to the I in X% So that kind very long-term year-over-year, would XX% kind had an less far of similar growth, growth of than about we QX. same-store

towards as not this probably nearly buying corporate and improve weighted they We And are corporate precipitously expect that continue non-core Brandon's should are seeing but slow quarter. consistent decline, but and continue cycles improvement answering growth Corporate did Enterprise the services. to to as in will question heavily that

mentioned, then groom record underlying low And see was low are improvement. expect continuing growth may terms continue expense to Tad of and but SIP revert a had we So see these back and count we're the largest some will And see, I as to historical to you revenue we of SG&A, bad count head this positive that expecting be then non-core debt customer think you from I norms. probably to to products. continue point to connection probably think, in forward

Yes.

exited reflective quarter. QX current of the So as rate we is rate run the our about run

comes next from Rollins Our from Citi. question Michael

of couple questions. a Just

just from business. to then the And the back in the one of earlier comments Going on call. some

increase this looks how accounts it Or needs something what goes like I that same increased? And by. is Could that? And or of of? you should right, happened, couple forward operating after next agreement of the change it's volume few the verticals the what in what's questions about the product. that renewed? we leases about secondly, the you If it you've respect lease T-Mobile in the needs X lease with cost balance just the -- away? the of way that's expires, once to same the much I'm sheet recapped up terms came out years in if that to years to versus that in I'll operating through the operating to doing of And how -- capital And the it something curious SIP which first, have get with commercial So of this question. terms the recapping of the lease. Like happened total services in the for breakdown just math you the you customer lease with. get then an of be thinking then with balance left going to reclass do the follow what and ago, happen for summarizing just

earnings our end way years is I as at value and the and as is an today of lease quickly to signed is end uneconomic of we purchase call, X set of the The assets. and indicated, on in possible. good That for there's very is to And it quickly. out ends that lease The of that indicated the It Sprint fiber renewed. completely be That's market, exit it not in have had -- totally uneconomic $XXX your something did almost we replaced. And years is about million be does will actually it arithmetic and a at our the previous to the was of lease the use gain of out have redundant fully Mike. what we lease you even 'XX. CPIs. a in is ago It XXXX, the reduction end we'll not is market IRU in it about question, XX in it ability that for and need of as not that exit

that to to be take. $XXX and It's worst just It I'm will that's for them And single paying why the something would T-Mobile We be item. bad and stuff, say, something we It we're probably replaced. had meets is clearly the million. test fiber not capital a sure some as it's that's lease. took

the take CSA. can -- I

customer, with like the T-Mobile, a the not this under IP agreement. agreement under commercial just Transit and is So, services regular services

million was and end third all quarter the this revenue the in the the $X.X were connections, at second is the the revenue, in and million the the quarter. X,XXX $X at quarter X,XXX second of So of The quarter. NetCentric connections third end

the dropped So XX%. and the to about the connections revenue same was about

you two services And are give little covered there Mike, not to are transit by really more granularity, agreement. primary that a the

And point-to-point These services, T-Mobile long first are request they the tail we T-Mobile as co-location. Ethernet located our but there's are those The are a that VPN providing circuits at grooming that network, second are T-Mobile racks is backhaul those. on our services for are that then and the or facilities bays of well. the the removing are in through

So we come count to expect down. the would unit continue to

We expect revenue eventually been going than has do think the also more has the what down. I units a on focus. come But to grooming short term been in revenue

next would fell you roll few over volume quarter-over-quarter, -- years? as describing the significantly measured though you're even a more the expect down so And of this

be I looks QX. have QX be you days to visibility should this revenue out. it visibility with to very to I question ask don't would a that terms really quarter, and but fewer cancel similar units. have do can notice. QX That in with because need XX of far they these similar to T-Mobile

operating a earlier moving thanks business, And levels the the really side customers to that discussion the the NetCentric about comment details, side then all how higher to for and just made you of in are switching. on of much pushing

NetCentric mentioned that revenue are you being lesser this just And indicator to performs quickly think And across volume difference speeds? is the customers revenue the it where gig, volume, more port more the mean in these as Or type a terms between that pushing higher connections. of performs adopt higher fewer moving XXX XXX they're are doing there what for you because customers happens the ports a these customers gig. and this side? speed, optimization an do be the and through of might blip way reason, short-term volume see, does up because I whatever volume on or of way grooming more ongoing

Yes.

years. the exercises driver these to through XX two exercises is reduce So costs. we've been The primary in similar cross-connect past of grooming

connections may XXX ports of two then And volume gig consolidate ports So number the go when there gig really different the gig continues. volume, flowing. say down remnant the XX measure people bits Volume volumes. you second XXX consolidation gig of is actually as are of XXX into to and the

growth price bit the NetCentric addressable decline, been for almost flat market. we've but to us allowing So in volume X% since the years XX.X an has per XX and bit a will years, average Cogent of about has business in outpaced at average growth achieve revenue declined to continue that,

of what as over to happen conversion. gig next to XXX in years XXX will we will the think couple I continue an the see acceleration

And by it course, of has cost XX%. cross-connect gig. Of only ports come today, XXX meaningfully couple optics I year. would a gig are cuts And past your XXX cost of NetCentric the pluggable those down the of percent say, at in

the phenomenon interfaces. XXX this revenue. of seeing cycle. to number on the reports wavelength also take not happening. We're same customers depress we go went wavelength. when side, We long And connections, lot will XXX-gig depress XX think will a I a way had have That from fewer to grooming [ We looking that's gig gig multiple in exact the sold ], but to literally

to be Our able network equipped to is support that.

those. We will selling be

described. And funnel to increasingly I We have expense. some those that of in are had think the sensitive customers cross-connect I

to That concludes remarks. for now closing Dave Schaeffer our hand over I'd question-and-answer to like any session. back Mr.

all thank much. anyone if talk has soon. Well, and follow-up any Thank be questions, you chatting you Take much. very We'll care. we'll very all Bye-bye.

attending for Thank today's session. you

lines. all now your may disconnect You