Frontier Communications Parent (FYBR) 1 Nov 232023 Q3 Earnings call transcript

Good morning, thank you for attending today's Frontier Communications Third Quarter 2023 Earnings Call. My name is Megan, and I'll be your moderator for today's call. [Operator Instructions]. I would now like to pass the conference over to Spencer Kurn, Head of Investor Relations at Frontier. Mr. Kurn, you may proceed.

to Third welcome Call. XXXX and morning, Frontier Quarter Communications Earnings Good is of Head Kurn, Relations. This Frontier's Investor Spencer

Joining me CFO. and CEO; on our and Jeffery, the Scott call today Beasley, our are Nick President

within Today's presentation & section our of webcast in Relations the Presentations website. the Investor can Events available followed be

results on may involve this differ we may conference to Before disclaimer include please cause risks is expressed This forward-looking our see X. start, that and call that uncertainties a actual harbor statements those from safe Slide reminder materially that today.

measures, refer trending During our and are we earnings may the in schedule. call, to also certain reconciled and non-GAAP financial which presentation, release press defined

to call With that, the I'll Nick. turn over

good and everybody. Spencer, morning, Thanks,

strong growth. As delivered results you saw our release in another of accelerated quarter and press EBITDA this reported operational we morning,

XXXX, we At details current into the last we've infrastructure made want and the over a meet future-proof Investor executing customers. of I our future company two plan Day outlined progress digital designed the our quarter, the go Before to strategy in a our clear we in to years. build needs to highlight on back

challenging if X, environment. service delivering four strategy fiber, turn customer Our build macroeconomic efficiency. plan, and and our you on even you Slide And a fiber, increase so on drivers; to can in improve see operational we're sell is value based that done we've

fiber the than grown XXXX, provide to halfway fiber more we've since XXXX. we've above we're are of long-term of now Let's start X.X marks. our late XX% access network and at better. base by in X- with We our numbers locations. our homes target million of XX%, businesses fiber footprint, And goal or penetration fiber our fiber our In our and expanded building we've in Since fiber by On XX started our million at our approximately just target penetration, customer or of and fiber, markets shy build. to footprint X-year our rates broadband where high-speed approximately we we're ranges achieved penetration XX%. now fiber XX%

doing We've And ARPU, offer customers. customer growing of showing service. also our is this that fiber improved attractive clearly also to we're our all whilst

these years, channels a operational culture where now everyone's coal better able means before than Over serve job. are churn, two improvements our see our ever Net Scores, reduced record a loyalty weekly enhanced of volume. We of the the part lower customers. we've we is and rolls last to by can reduced customer created Promoter A results digital new earning drumbeat improvement in of truck

efficiency, investing and And processes make way more simplified we finally, in our unnecessary and on eliminating decreasing productive. work tools real operational systems, us new by the estate digital we've dramatically to footprint

initial achieve $XXX not track our we're significant double on see We financial key in model. to by are cost We in done. of on the savings the this future. we create levers million This target end the of execute should our as value shareholder additional savings, and year, potential

offer in market we're and a We in expect competitors percentage gigabit time, at as copper we price, do of superior attractive growth together, greater and voice products. our declines fiber fiber we of customers and growth. and a footprint. number XX% increase see At sustained in actively customers revenue a managing the our with legacy overall It And greater mix. structural of becomes ARPU. revenue increase our this X we support capable all the with same to growth a structure revenue starts or X market these as revenue technology only highly compelling dynamics And

driver of is next returns The margins. increasing

delivers drive the to benefit constantly ways areas we long-term sustainable technology, Also, in favorable investments savings. scale, at targeted from technology material an our is and grow increased automation strong efficient capacity model scalability specifically tomorrow's Fiber should and margin should lead revenue fiber's our are The needs more in economics inherent we a unit as should combined fundamentally and and smarter inherently work with expansion. unit to economics. of identifying and of We legacy digital lower network. cost

clear Next, executed let's when fully to transaction pathway a we're pleased million our earlier build to fund capital. have talk strong XX I'm this securitization locations. that Thanks about to year, position the we very liquidity. comes in to we say it a to

navigate interest While rate it clearly the current is backdrop can proven well. we we've challenge, a

to of capital. ability in to above our mid high the high teens, have well We deliver IRRs in cost confidence our

Ultimately, derived growth EBITDA and from value flow cash is generation.

show As $X billion. to towards of XX glimpse million EBITDA accelerating should you generate our of At expect driving growth. XX%, more EBITDA towards, a model. like expands to build mix give a to our passed what revisit we of of I'd approximately fiber, targeted fiber steady-state penetration we we're and And revenue homes

Now CapEx billion. after approximately connection of billion, should, $X flows yield and we therefore, maintenance of cash approximately subtracting customer $X recurring

steady both decades. return should to back investors. cash generate able leverage cash to And given reduce should be able this to be attractive of returns the we we inherent and As state, reach fiber, the generate we for flow superiority to

Slide quarter X to results turn how to third review illustrate our our progress. let's Now

growth performance growth operational EBITDA We deliver X%, of than our years. quarter more growth. strong in EBITDA delivered saw fastest quarter our X This of accelerated

EBITDA of quarter We expect in another QX. growth solid

year overall positive ARPU than the growth with to call growth were for first targeted in and our growth direct the year. the quarter. a the earlier as This ARPU the market. positive trends customer growth we time company, to expect changes of These a to first in we powered accelerate net our Broadband out trends more new revenue I adds line up also and bring is want public this this made next turned in and result sequentially our Consumer quarter. XX%, more both for this positive quarter year-over-year, Consumer

we've with I'm made conclusion, and a fiber ahead In pleased Frontier of into leader, broadband about transforming progress in us. excited opportunity tremendous the I'm the

a I of the Before thank turn of our takes over drive advance to purpose our it building I hard huge you say and the team. call to America. all Gigabit appreciate to transformation work to our I want Scott,

over you. thank Scott, you all. to now So

good you, I'll Thank and of by copper had the of billion. morning, start We million of million strong year-over-year. Strong growth XX% revenue which of declines. million fiber EBITDA, from $XXX with of X% grew Revenue up Nick, EBITDA growth. adjusted $X.XX XX% to $XX everyone. year-over-year we products, $XXX quarter. and fiber came legacy income, adjusted was due net financial third earned was offset highlights fiber our our

of to $XXX operations, Additionally, $X.X million from over XX cash we the our generated cash bringing net from months. billion operations trailing

underlying the healthy profile business. flow cash Our generation before cash CapEx of our demonstrates

grew highlights our of left strength base broadband This the in X trend we customer last on and shows building customer encouraging is over Slide since XX fiber growth our an reasons. started for across the chart XX% XXXX. months, has late that The the and base markets. XX% fiber expansion grown two

while we First, simultaneously this growth achieved solid growing ARPU. customer

penetration an base low. footprint fiber X.X moves Second, locations, fiber points right increased just we our XXX our expansion of penetration have on is And each environment maps have expansion our household XX.X%. This where terminal and of basis to base footprint. our our the in been the million in penetration an customer target as of penetration where of The indicator curves cohort. serves we chart drive of XX% grown shy can

As all marks. and XX- you can are ranges XX-month our they see, target or above at performing at the

driven by to Slide XX%, XX. accelerated revenue healthy growth Fiber to Moving performance. Consumer

revenue Excluding XX%. our grew grew video fiber XX% revenue Consumer legacy Consumer quarter. product, Overall, fiber this

fiber offset Our copper declines. we public revenue since revenue overall time the And as Consumer for Nick first new company. grew a became growth shared,

revenue and QX, total we was to Wholesale down remains In year-over-year. up roughly fiber revenue X% products expect sequentially Business legacy slightly flat Wholesale and and as fiber be declined. Business

acceleration an drove adjusted in growth fiber strong quarter. EBITDA this Our

XX, you turn by we declines. actively copper growth, fiber cost see reduction was X%. we This can and Slide effective managing by that grew revenue EBITDA If driven we to

expect continue We trends QX. to these in

XX. next turn expenditures Slide Let's capital on to

the full in half we begin year earlier inventory $X.X we in the CapEx We using purchased year. are the to We billion the our in consuming to guidance year previously that as the meet billion $X.X would decline that second on and track prework range. would shared CapEx of of

expected quarter, and also third in cost lower expect a we have to mix. We build of same the we saw That's in the what more exactly QX.

of As to $X.X At August. billion be now fiber I through said to our quarter, of the Slide third expect we including XX. XXXX the peak last liquidity, we $X.X securitization in had billion We'll quarter, end liquidity year. our CapEx on approximately raised turn

fund and significant a clear our This a refinance debt build over traditional time. Frontier fully fiber milestone transaction path as for it was provided to

long-term mature our of pool value the it highlighted a investment-grade assets, deal new of attracted the Additionally, fiber and investors.

of strong our debt is our and have liquidity balance any to Approximately sheet In XXXX. not fixed access remains XX% until capital, our to do rates, we maturities addition and significant at healthy.

see Finally, on XXXX can guidance Slide that remains XX unchanged. you our

billion continue billion range. EBITDA $X.XX in We the to $X.XX adjusted expect to

this and expect cash We expect billion. to year $X.X expenditures approximately of million X.X $X.X billion pass additional locations capital to

proud team I'll consumers quarter. businesses and solid I'm the deliver Gigabit to doing of for work to that you another connectivity saying of and close build thank are to personally we across millions our country. by America the

back call I'll over the turn Now Nick. to

not have all seen going of engaged communications Jana's take the open shareholders, any to know topic regular questions and presentation. I do you to continue Thanks, in that to call. we of so. Scott. our on and recent We're will many specific reports We've always today's of with

management that team on our and objective. shareholders, Our us driving are this to deliver to long-term value Board on continue actions focused take and Directors customers, of employees and enable for

announce and that questions, early for update it plan driving on where open we we host for expectations detail will our pleased I'm longer-term financial investor in additional Before value. provide shareholder model an up to XXXX to we

to questions. to like we'd you. Thank open up the your call Now

line Our question to first Brett go the Instructions] Feldman with [Operator Sachs. of Goldman will

as Communacopia were growth, seasonality ago, good of down, the referred you would to I to that pacing the and how And little it's if on you muted still a don't think household you targets weeks obviously, referring has your were despite clearly you're a some more are having that. And conditions to the had towards your when see become mentioned well. two, impact Scott and tracing Nick, way that couple you subscriber penetration moves of had mind. come market

you a meaningful you environment? some you are think the dynamics But how little I'm what you the that so insight next focused where you've balance That's bit curious, maybe be over the first in want to have the is simply market enough driving be penetration might growth, And those of recalibrating of more ways it year has getting to that maybe to changed your have? more you'd the point recalibrated that or into passing versus can give the us question. of on

wireline gave The second you little in the the in on sequentially about is being bit a down fourth commentary quarter. business

maybe you conditions and the back near see how market outlook segment term to So us a update something or bit in sustained to broader can on you a that's could just in for drift think that you lower that to the current clear growth? about the path be give whether think going a whether

as because and a which mean becoming what Brett, the doesn't ARPU question very other Consumer strategy so year-over-year logical some care look with development, I immune focused building is revenue is fiber, that way. fiber way the fiber and up X%. is a affect XX% strategies and kind double-digit one in more from think revenue Consumer quarter-over-quarter with us market as And But done how our business, thanks. of we're in those just think at That around that strategy I of much. really growth that through, XX%. immune total things. also on, our of flowing market dynamics, translates from ARPU up have we're we I core just grew On if in not conditions on broadband like see just is fiber, your success, And into degree improving penetration wider any efficient. But progressing growth, selling every about we good

and So by things whilst are on. [indiscernible] naturally so copper activity those offset like move declines, factors

kind power the customers before up I expanding sell open our to footprint, added to sectors strategies penetration grow we've gig-plus see. more very, about that refinement and new ladder services, we value a throughout is on, go-to-market sense, the as the clear drive in pricing pricing to countervailing continued fiber think cyclical of and new territories, up talked strategy of very pressures and so we

kind the net overall things growth And the into of the those seeing. engine we well of by growth transitioning is kind of So that a quarterly cyclical offset that we're any very X it's question we're face. building that headwinds of

Now on and Business Wholesale.

refine company, that kind of slightly Wholesale we But to go-to-market kind Business which to the it's and Business good more expand a Wholesale of Wholesale at Just that of continue footprint very we as growth our there. really bit headwinds team We the the other fiber copper said, step again, Business business. little revenues, revenues is strategies and achieve continue -- And business in is in parts segment that got and of kind fiber of that And a as the other our We're in fiber we've and with full shows every if lumpy have our improve than that to quarter-to-quarter. refine sector year that's a to potential and take for track total on revenue, back look XXXX. saw business. stable continuing and in growing. we X%

And higher really across in favorable which sharp to all sales leads in increase much pricing. X seeing Enterprise SMB, volumes a business mix, and and more order a Wholesale, units overall we're

business we focused ladder, refine to again, from just quarter-over-quarter. pricing kind on in and go-to-market of the and strength copper quarter-to-quarter, every our build whilst up as gets we're quarter to declines more strength legacy activities, people moving changes value-added headwinds fiber, of Wholesale services strategy the face the Business in in our we, business, whole selling keep whilst our services exposed So stronger structurally like course, of goes

comes question line the Street. Our Jonathan with New next from of Chaplin

middle which sort of for quarter. you've still mid-single-digit we solid big you couple growth really A the didn't fourth focused would quarter? be Scott, EBITDA the means range narrow which actually. range, year, for on for that the Scott, a on the got the range for Should guidance of suggest fourth

business, during recent his And of Or recent sort a did then mentioned trends, EBITDA the it there well that seems like mostly that in anything cost-cutting is to the relative many of copper function Nick comments? else -- timing, in there? the in said you matter think in that as during And the wanted going collect just then of we just quarter. revenue a to fourth comments subsidy is your I well. should confirm drop that I is that

Jonathan. Sure,

those of in me turn. Let take each

today. given that So I'll on few points on we've EBITDA, that EBITDA reiterate

then to where from were be We expect we sequential growth in year-over-year to mid-single-digit at QX growth, from low in that we and last in the expect QX looking quarter. growth year's fourth

inflected We the We X% have grew we by EBITDA full in year. in quarter, half. EBITDA. in this third growth EBITDA grew first expect year the So EBITDA we

So fourth big us, EBITDA. the that's EBITDA really so a quarter is story for milestone inflection

you're On the second right. question copper, of

we almost because a low expected. have quarter, EBITDA We're losses the to to than the cost-cutting per in cutting. about relatively million has earlier customer Our been $XX,XXX in mid stable kind $XXX but of copper our year improved that trajectory of cost of

driven EBITDA our copper EBITDA that's overall company. the so And and improvement for the our in

Yes, was question a in third you quarter-to-quarter municipalities. Subsidy lumpy that's the get timing. is when then just depending question of very on from cash subsidy. And different

view our much no could of map for transition of but year, Perhaps intact. into next QX to So change QX overall this very subsidy our year. subsidy is road some

with Our next Greg Williams line question the from Cowen. comes TD of

in it down come million the to we here. with year half Will more muted? Or CapEx. CapEx bump next saw year? like First you of of It huge levels the first help us Can see we the be that one imply the will that will up on just year? does is [$XXX] last cadence

around get is CapEx And comfortable. helping then question us second

to XXXX noted But that churn build XXXX be built. little lower. be also would this is homes, higher per peak you fruit lower-hanging bit CapEx cost and year had being noted a that you lower You year, the mix will that of like

us so So reconcile have just mix as and higher higher we -- help lower get you'll there? year, yet a CapEx you'll comfortable see and next that builds, of cost

Sure, Greg.

of Let each those. me take

few the next quarter on for there. CapEx give let me into So data you year, fourth points a

second We we and we driven we each prework of a significant We consumed those So CapEx. in that additionally, a expect which consumed items. this step-down saw nice in by we in with quarters, from saw CapEx was expected, builds, completed X QX. decline half expect continue quarter, as prior to was inventory, and lower we benefits payment terms benefited from then cost And into we trends normalizing suppliers.

So that's QX.

to few data question of a part year, points your you. And broad the on give next

expect we roughly million So X.X passings.

We expect this the loaded, And the front-end of given just build. it be then expect to CapEx we this be cadence do similar to to year, below year.

CapEx So that's for X on the quarters. map the next road

final next for that I your question the year. of year. will mentioned The QX continue for then part next CapEx on And build into trends

We'll large we about that inventory. will the middle engineering, we've prework. if you continue mile backlog in consuming design, do continue work CapEx cash we future it, So think that lowers offices, And a central consuming have quarters. done in of

help will And number next CapEx our so benefit that year.

line from question with next Our the comes MoffettNathanson. Nick Del of Deo

markets? And of of see You and overcome to the then the markets positive I the think you bit? growth? would kind guess, I the and tailwind ARPU somewhat of revenue of expect as more respect front, in about headwinds year-over-year, base late. commercial in remain over or 'XX. out more talked on kind quarter, be might markets. trends generally some the you you from that you your guess And you commercial flattish business versus there But which versus noted as contributions coming of headwinds markets I somewhat with had in look seasoned the you can it churn about those revenue talk a do years, Nick, performance subscriber in some like we 'XX little different kind you expansion get very that to guess your what base flat sounds can expansion solid of softer implies

sure. Yes,

take the the first Nick Business one me Let and pass then for Wholesale and to question.

parts, few we net break the two roughly close and finished from our at of XX% ago XX%, on a up expansion. which had let is We gains. me to of is and In XX%. it base, very performance, strong question into So about add penetration base quarter terminal another years penetration

really feel we in the So trajectory good base. about our

trajectory also feel expansion. good in we And about the

and our XX% above XX% that within XX XX% XX or at of XX XX% our And in XX to be to to at today, continue if see penetration we're months slides targets at We you range months. months. and

So with mind, every points is cohort in those big build picture data to quarterly be different. going

time You penetration have that types new sales geographies, have different and lines. different cycles location

months you For take get XX more build months awareness, sell same first we and to really deeper by brand at it quarterly you're that externally, targets at months. get point have brand example, and unit to longer point to penetration take few going same not to or but might a annual XX why where awareness, or in to new months, XX don't a the multi-dwelling may into XX several the we the a that's monthly. but give And state

back, it we're in about feel when net XXXX path we good performance add on. take We a increasing see So QX, increasing with quarter. the the very into pleased step the we're in and

like in previous as of take I'll Enterprise I business, when some little on main the businesses Business I mean, I said of of And our I've a taking not particular, Wholesale bit Yes. is calls, step kind our analyze perhaps back, mean, Enterprise of in X just it. ways. and the we peers question. think a

really don't we is any large customers. which enterprise have of first The

typically call would below we people other medium is terms and describe enterprise it. what how in So of

enterprise propensity means fiber. symmetrical a a base product and we've those to building have so we small buy compared customers So that really That that higher to are others. core much of the selling, got kind high-speed

So therefore, different peers. very we've got market than topography a of some our

very market. a are of the we is thing Second part small

market And not as been. that that, really you us perhaps as that's it true particularly So past when the was realize could don't well much. overall affect business so the in run dynamics have

there. that the really So the put teams with new pleased have really, work leadership in I'm place

that see through strong order books. in can You flowing

see Business and saw fiber build You X% accelerating just And more keeps path as fiber. of flowing in more Wholesale these through it we drive growth businesses course, can we up the in and penetration. of that

segments also is true legacy that have Now of our in sort it in Consumer than greater proportion we a segment. copper those of

slightly the trajectory answer difficult the to Wholesale particularly, stabilize in are year, stronger. very pleased predict business question on that is headwinds there And But bit way are previously, to this directly, quarter-over-quarter. nature firmly now that very, It's we through. very about as business think lumpy said of that. I comes little we your So the a a to

in that going that's some our And accelerate, is, to time, we'll growth think as When exactly the outweigh continue time. then on that some talk to continues subsequent I fiber legacy. for have will quarters. to new at about point

line Cusick with Our next question Phil JPMorgan. the comes of from

A goes as couple because your Nick, little this about of talking follow-ups. And I guess, I'm first, Brett's of comments. understood I what was first Scott sure bit well. to not question, a

talk Or think fiber Just to you should from ARPU you the revenue from potential about on trending to How the push here? growth? as here. penetration about that of prefer we think about combination ARPU harder do accelerate

QX. then expect you Is that adds year-over-year? And to increase quarter-to-quarter said And then, just in think in Scott, you as or well? fiber I 'XX

Phil. Yes,

both. in straight above. of potential course, how question look which, to markets, the we're accelerating our specifically now grow systematically quarter the your terminal we penetration market, expansion of to separated XX% penetration our think answer to well us we've for mature and show If at penetration over on or quarter in base, and to we I track is are penetration a our over increasing quarter from our

lots fiber. level base the up because already doable critical at that indeed that that markets are of we've of possible what's and of then average indicator market that some new or fiber penetration that's higher build XX% moving we know of We got are as

new XX-month ranges well. we're in to our build also tracking Now and said fiber the at XX- we the as cohort exactly

builds our drive highly builds fiber time, new fiber in that up of that's we part penetration in that to match and base can I'm an confident model. important over So

also there, pricing our talked thoughtful about taken very grow to I've we've our and our separately, development strategy. actions ARPU Now ARPU. And strategy clear some and

up all, of incentivizes number built a adjustments We've the gigabit cards. with services. then we attach ladder. move speed, value-added more now speeds have of of ladder, customers implemented our than choosing value-added rates customers first pricing of gigabit service. gift First service really of our customers, more than and taking all, pricing which speed we more have we've to reduced a value-added that unbundled use new or And gigabit-plus half to new doubled And with XX% of take but one

penetration So we're both absolutely it of as drive things, as up I demonstrating. we to up believe is ARPU and do drive possible we're seeing these as

Scott, to you. over

your net you're correct. adds, On question on Phil. Sure,

expect on expect versus given XXXX We XXXX. and we year-over-year to versus And of up be up volume to be adds, also of last in year, haven't up expect be then do QX adds up specific quarter-over-quarter. this it XXXX we net the guidance we QX net and so to year, total QX but versus of

comes Supino line question Peter Wolfe of the next from Research. Our with

of a million concern the be still vintages clients will the from in is hear ones penetration. your had all the of later longer-term built that penetration about familiar and we next The that homes? confidence I but the the best several one time built A the you've worse. is always how is attractiveness question, first that question

bottom and could share confidence? process what the opportunities those characteristics underpin And your so are up for your evaluating about anything that you

mean, our fact already are Yes. we perhaps have then better rate. markets long-term thanks, at or extent, Perhaps on above look, I'll XX% or rates, that I founded terminal Peter. the to mature -- some take our Scott. that we've hand penetration of said, our many to more and as penetration

doable, we know So one. this point is

drift previously companies was base that building penetration reasons, two, the We're past. to up that team here, back And the point before from inherited was now penetration various current for actually levels Point bought some it down. was way at that where of higher in the last systematically was any that it Frontier that at. from

Well, able because doable? into where got gigabit-plus that to future. remain our structure one is of combined very is an footprint, that, XX% believe fiber be strategy, competitors. or the terminal And market pricing to grow and across why XX% our favorable base market capable fiber means very fewer strongly structure are stable purposeful in with have or penetration extremely that go market our to expansion right likely And Scott? over And we to the plans, above. I our time [indiscernible] clear we've we'll

Yes. kind of left and for is have cohort-by-cohort ones the And The your Peter, best question on taken once later. we of penetration, answer subpar no.

We've of We a XX XXXX have cohort, and But XX types. to They XX cohort geographies, ranges mixes the cohort, long you XX within XXXX unit different. XX% eventually, said months range. every it get to will look those record all different at into XX% months. enough target if different. now, of months, cohort, track penetration XXXX XX% is are after of after have same look mixes months, all Those XX% different the at

the that think attractive XX new building wise penetration as our states We're expanded build. We that we're roughly as started just in are building states in. building now in We've the states. we

expect look that we range the when XX% in at cohorts penetration, next years several So to months. those each of at XX XX% we to of individual be

Citi. Our with the of next question Rollins line Michael from comes

of of I'm on if footprint, may terms some in us for thinking opportunities of fiber And you can investment the last be of plan the X/X market you fiber place for right give Frontier Board Thanks. opportunities. multiyear builds how as curious today, what broadly, footprint just terms BEAD in the monetization an is and your for to the fiber and be then the the for public more management viewing team update strategy? the

market to structure Scott, I'll create to shareholder Frontier operate of always for Frontier options the mean, that's right going within. value. for all structures BEAD. public the consider. Perhaps one on the mean, considering the the we're to or Board long-term to I take other Michael. Board you And the last something for is to I not comment Thanks, on look, are and whether for

What I and the rapidly, building for in of as all right to to can the believe penetrating firmly we continuing efficient become got customer we've mechanic care is as improving customers is that fiber exactly strategy that that fiber fast I say by create way an ever-more We business shareholder there and that, a markets, build our recipe long-term know that efficiently, fiber we right that is we long-term these value is footprint clear can can we in to know know for. shareholder demand we create we penetrate believe the value. can, expanding

BEAD? comment to want on you do Scott,

Sure.

on last your question X/X question of of So our -- footprint. your Michael, the

So the that to in XX I build capital. X million falls could the X for few of be sense XX said committed X following of there that X million, beyond million makes buckets. build million committed a the private million One, we've million, think

to So not our the focus thus has far. ours pass. capital of been That

Our at X focus is to starting are look on to the to expand million. ways XX million, X million potentially into we that but

bulk be with best that receive of The X if million subsidies. will built we fiber out

digital will be underserved BEAD to gets rolling, the connect be is subsidy participant an are of program BEAD BEAD. to in active BEAD. and all we we'll programs we the an homes in before unserved active participant And active and So think really the now economy, businesses and we important in very

the on value beyond focus of are million, XX the million. creating to is starting So XX we at committed look that build but

from Simon the Morgan Stanley. line Our of next Flannery with question comes

Are Could on above higher your just the you gig little you the of a X lot ARPU about -- talk coming a are had coming type of upgrading to what levels focus Nice you've What mix? some getting customers existing Great. tier I trends in at? speeds? people seeing bit you're on to tiers. through. some know see

And moves us update different could that? for Charter is as some these talked you then an reset? Do channels. with of of particularly where sales on companies, get stand guess, the you opportunity think And up comment Perhaps prices those on first about there I -- the bundles. any discounted different on coming on cable you anniversary take you share to there's you finally,

I then what speed it on a is gig, mean, overall plus here. Nick It's thanks. gig say mix more we we've exactly but that individual hoped sort X impact to can Simon, extended the would. we it recently, of and X.X speed X disclose mix Yes, to the from gig had pricing X gigabit ladder I on has our gig, X, the gigabit as don't --

have headline the of company company launch we X-gig first services network-wide. -- symmetrical to the X product, first symmetrical gig So kind to services launched X-gig network-wide,

the both as and up found a we the then customers who newest, ladder. the best, wanted of pulling tier buy the the into the below That wanted has who fastest cases, tier. who that And wanted speed they cohort of effect in

then and And those, and that effect so free then, mix the we right up. strange for of shifts charging unbundled And give to services used we up. speed the to started that entire rate take course, actually away it the kind the of value-added have went

So greater we revenue generated and rate services. more take value-added on

the are done way. not value to structural, those very way there, increasing what's customer by determined, we're a combined systematically. things And systematic, And leading purposeful of

needed XX there's network Our it's the to ever a that, but and a for gig already requirement do haven't us decision, option we end-to-end, and is and CapEx in XX to very clear future. very, at we beyond path made low if that gig capable an

pricing way point. the demand every that clearly ladder with it speed is and pleased meets very working, customer a at and price So

best the sure that state, way to the demographic exact across are make so and sell. just sales most state country, we On that sales are but and inside optimizing door-to-door, continually looking the don't telesales, we by but And at again, mix, efficient on, the optimize always city into, it mix. trying to not we're across channels, to rate digital, city that meets sell disclose penetration we by channel the

thing, find way that month-to-month to strange perhaps throws would up the digital day-to-day, sell always trying you think adjust best forward, way efficient it we sometimes we be and most the the to cost. go sometimes penetration And as it isn't. And sometimes and unit drive lowest at is to

Yes.

us? of expiration those final on dimensions. of superior Nick compete will help of your on said, We So bundles, we a the a have question discounted product. Like number

experience structure. favorable have customer versus and superior we now a competitors, have We our market

will think that increasingly alternative, we I you that cable fiber from customer people think and choosing add can versus see continue. So general, customers numbers net a in -- are are our

James. last Our with to of will question Raymond the Frank Louthan go line

does it take the really down costs with commentary you penetration build shut legacy us how Give When then of to your on cost and out savings. rate, operating an idea the cost get Back long much your all of to the how copper can XX% forward? remove? paces those of margin copper additional going that network? of you fiber how kind hit And the

Frank. Sure,

the and into about talk about talk that margins timing. translates me how margin, I'll Let

margin fiber or the the are in move pure now. XXs XXs. state, the north of lot in A said we mid-XXs high high steady of we're towards even We've potentially margin. even XX% would So players

in to mix cost fiber And few margin then of legacy got profile. improving just aggressive ways. the changes So that and taking happens our be footprint in copper the a out we've

fiber. we as base Number That transition reduce happens experience. one, our customer incrementally copper it where they customer improves to

customers We those kind lower have we the calls, of incrementally, of costs repairs, gradual that in a you'll off migrate happen in margins. just fewer And fewer electricity see improvement as copper.

the The that happen actively cost, the wire costs, of out center, you of a full take cost in costs. out multiyear when central out improvements it's pursuing decommission and mitigation, step copper, the customer office center off remaining journey. take wire electricity that a get can change any We're copper final a you repair maintenance take margins but

it year. fiber of we step improving time, saw. years change those in big copper few the it will A XXX improvements are improved probably is basis margins costs. but lower a portion reduction points So that portion of versus a but copper mix last to you our improving you XXX is all decommission, ARPU, see from cost and until We about be

third That earnings all concludes us. for joining Frank. Thanks, XXXX Thank our you call. quarter

Third Quarter a have rest Communications I Frontier your wonderful the concludes for you That your day. of participation. XXXX Thank Call. Earnings hope you