Frontier Communications Parent (FYBR) 3 May 242024 Q1 Earnings call transcript

Good morning. Thank you for attending today's Frontier Communications First Quarter 2024 Earnings Call. My name is Cole, and I'll be the moderator for today's call.

[Operator Instructions] I'd now like to turn the conference over to our host, Spencer Kurn. Please go ahead.

to first welcome call. XXXX and morning, Frontier quarter Communications' earnings Good our and is of call on Jeffery, Head Kurn, today and Relations, Nick This Frontier's joined Investor Spencer CFO. Beasley, Scott our and I'm by President CEO; the followed Investor Today's our available on section website. the the presentation within webcast & Events can Presentations be Relations of

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

During refer in measures, our financial we Nick. the the reconciled that, which materials. With to call, turn I'll may to certain earnings and call also are defined over non-GAAP

with our to we're Thanks, Spencer. Scott, Good and QX with morning, share you. today excited everybody. results here I'm

inflection quarter. since the year Let's start the the us year start for with growth fast a growth follow This delivered more decade. time of XXXX. the having first than and is for for for achieved last in headline for had strong EBITDA revenue major our positive company, point and it's time a first a We the a

leader Today, Until the execution X turns a been Frontier about our in delivered an Through story we've story emerged years, now, accelerates, a reinvention fiber over and our to reinvention. as growth. has of last one while consistent the turnaround operational industry.

sits century. starts strategy work is the with and about this at do, increase building country all we that into call America. the digital clear our why efficiency. our ambitious the build and to needs all infrastructure talk the sell achieved purpose, of thrive to service our we Gigabit operational this. It it center and fiber, behind the for customers Let's now This next strategy our how we've fiber, to improve And build

our years, Over we've the rigor strategy. our advanced discipline in purpose executing shown few and last and

We've scale. fiber years. footprint our quickly more capability few fiber and the at developed efficiently in to we've just than Firstly, short build a doubled

nearly Secondly, XX% million we've grown fast by we today, And customers base a fiber X.X our Internet. XXXX. have since to blazing connected our fiber broadband customer record

because Thirdly, of NPS can greater And our now reflected XX% efficiency satisfaction organization, us more driving greater brought relentless years to has in are scores. today, created a and digital, where customer the America. we've industry-leading with move are we as we've fiber lastly, customer improved customer simpler pure-play our faster our digital and service. execution interactions largest company X in Internet we of

the that can XX million initial our of building math you our the majority of the X.X fiber fiber at to business, of goal million represents at now slide, On puts next towards with fiber way Simple see us XX% passings. least passings.

now base, perfect fiber Our said accounts fiber customers And broadband of more XX% this our now XX% our an fiber becomes broadband and customer share revenue QX our illustration greater and of stronger company. our become total even business, EBITDA. XX% as We've of of we a of is for dynamic. the than represent adjusted

growth ARPU of us deliver business fiber customers helped fiber I details. metrics We a review of to Combined, XX%. continuing broadband of by at Slide in result this shared this call positive and fiber turn fast-growing to we growth accelerate. quarter. a our top is X point This the that Let's revenue grew X XX% quarter. to X% the achieved the these total by inflection revenue

We fiber purchasing whole-home customers market, numbers tech broadband need such speed continues service to turning seeing And show how too. our is, in support. The premium data are growth X.X% fastest revenue of our quarter EBITDA value-added translating This fiber. We're focus Wi-Fi lifting speeds. in is efficiencies. EBITDA symmetrical since EBITDA gigabit-plus of add-ons higher our EBITDA growth cost the for was this growth fact, accelerated a delivered lifting As growth also to our third continued the by this increasingly as into product quarter and on supported business overall are XXXX. our as consumption the clearly adoption revenue, customers our rise, our increasingly best and and quarter in it's of row

growth. Before delivering turn simple we're operational Slide priorities let's and revenue it I driving This strong growth to Scott, X XXXX over recap our momentum, Maintaining year, on accelerating X. outcomes: on our EBITDA focused

and this I'll up America. customers, thanks We're ago, wrap detail off our more which fast to I in strong And we're excited for Gigabit start, everyone a investor path to weeks building some our had process, full cyber to in value a accelerated to on review that IT year. I'm you disclosed plays which we quarter team. As a on instance position call. increased a longer-term a first and the results few say timing. I'll of A we puts deliver on by show, provide of to thank looking special earnings us everybody forward timing exact goals posted previous our to for update. shareholder which driving a on partners to our event, a the announced and impacted who strategic forthcoming IT keep our financial want role The depend huge employees, at our that a we will growth systems. saying

and Our tirelessly and their contain dedication the quickly of all hard rallying work get for team running. our extremely worked able I'm up IT grateful incident I'm proud to our for team continue to and us together and to was whole customers. And to back serve

over all. Scott, you thank So you. to

goal year We everyone. and passings in morning, results. on fiber quarter operational XXX,XXX our good added million with X.X us QX, year. a which track to of puts and this achieve Nick, started We financial strong of the passings you, Thank

in X.X%. quarter, in of We broadband XX% was ARPU also churn same added the customer XX,XXX time. Consumer the at growth fiber low while also broadband customers resulting year-over-year, the remaining growing in fiber quarter, solid at

we cost in program strong and financial our XXXX. savings drive initiatives, of $XXX our we on started have savings the cumulative execute These continue a to to operational continue we reached Finally, since performance. results million

Our XX. on are financial highlights Slide

Let's start with revenue.

and versus of up net of quarter we X% revenue year, million last Our was QX income. $X billion, $X.XX earned first

of As at us. the inflection Nick beginning growing a the was major call, for point revenue highlighted year-over-year

Our adjusted $XXX our EBITDA EBITDA growth adjusted million third growth quarter our consecutive pace and XXXX. of of of fastest represents since

fiber We XXXX. are customers also grew end XX% generated we cash total operations, bringing year. number base. $XXX this our in billion up trailing This from to the progress total growing nearly is shows million fiber continued months. Slide of We versus by over net XX of that $X.X XX% last our the broadband customer making since XX

also customer which, growth, mentioned, Nick ARPU grew driven accelerating by X% this growth as have year-over-year. We while

value-added growth services. customers was ARPU of drivers: tiers, QX, Our and least price at XX% sales customers speed and X X Introducing a new our nearly result took our XX% faster of of over value-added expanding In service. speeds X purchased faster or of adjustments gig of

strong are now translate We revenue into growth. seeing execution

revenue growth which roughly legacy a third Our declines. of customer than was wholesale and X%. ARPU growth product Total to growth to consumer offset fiber for accelerated revenue drove this Business and a overall in flat, revenue quarter leading in X%. quarter, the XX% row more broadband increase for

growth for rest We and expect the continue stable the the roughly of wholesale revenue accelerating year. revenue to of consumer business and trends

XX% Slide growth from driven XX. adjusted products. achieved EBITDA Moving fiber to growth X% We this by quarter,

EBITDA X% the copper We from products which managing decline adjusted declined year-over-year. are of also

due XX. in to largely front-end cash down year of QX investment expected, next the year. this as last We timing working quarter related had turn $XXX the was Cash Slide versus build. first of capital of Let's loaded to capital XXXX, capital to $X.X million billion of investment the

investment capital our capital quarters on be for see to decline year, and to than XXXX. lower remaining X we XXXX of the expect We track the remain for investment

XXXX. our up spend on less expect of number as that to As we we we inventory last XXXX capital consume the in we built noted call, same prework in passings and on

build Our success-based capital but with higher mix increase we shifting is investment lower spend as acquisition gross also adds. customer spend

continue that investment first of business our $X.X quarter, phase, significant teens, IRRs once confidence liquidity. At high cash the well free the the XX. billion generate to our we Slide that we had deliver We end are should build briefly have to will mid our on of in the above through flow. Touching fiber And capital. cost of growing high

Our our have fixed maturities at debt We significant do with rates. healthy remains any not of sheet approximately XX% until balance XXXX.

our Finally, you can guidance. that reiterating see XXXX on are we Slide XX

adjusted range EBITDA mid-single-digit QX we increased in that growth the for be the a us Our would can gives in confidence turnaround. EBITDA in our which grow significant milestone year, adjusted

thank for a the now and quarter the up for I line it Frontier say start another delivering we questions, Before you open to we'll year. Operator, team to to want our questions. strong for great open

Citi. with first from question is Rollins [Operator Instructions] Our Michael

are possibly you XQ a I'm little meeting beyond curious that about review? could considerations current more with does strategic analyst just be timing? where if the And could infer of end bit the talk QX and the push maybe in you

because it's our Michael, review mean, to phase building the to it's to time initial passings are value. is just that. least do our Nick growth. a at now and with for important goal as additional natural next here. we XX we said of the of evolution sight, we're ways And of I executive the look in create at And believe Board to in firmly million fiber our continuing looking always team shareholder timing before, the

operations including, and a as very, we that number strategy, is strategic financing ventures, we very mergers partnerships, intensively. options, our said, So continued work divestitures, business right continue and to of at on joint optimization going combinations. And look other now of

is can share soon and can. And insight QX, did we which review host be Investor that our we would appropriate as we'll course, with whilst wait, get in initially just to the as Day. more case decided ongoing. in back update come investor more So the to news review, from expect we to And you at strategic of share we

that course, longer-term posted but really and and It's to planned yet, more we when got to we're on we'll being you haven't plans we right keep actively forward share we when detail a event. our we'll the event. So But of do. date get goals looking now,

read to And markets? what I just might does lead progress you're more seeing think that talk the in conclude penetration, the than your one you base you about time even penetration there XX.X%. if on landscape? that's over fiber the And business. I the correctly, Base be XX% Can fiber competitive in it market in

cases, having full overlay many, many always grown where to markets, we've XX% right Well, our of competition really base to course, up we is here think nature our I most least have the we've XX% a milestone think we markets, product, ago, that execution markets. And out over of in to and possible. penetration of years for good value XX%, really mature about in ever base up strategy fiber competitive and you're have and, results. again. mature best coupled attractive and product which point X see of now the a our those good FWA underscores pricing creation very are our from test at our said that Nick in you case just full will Yes. in in at a drive superior really we ARPU markets, mechanisms And in what as the there be this with market price

single as will course, every build But those we be is our hard across of evidence a of remains seeing Now markets whole in we're think out. broadband footprint to what great I competitive what We fight continue market. day. possible

question with of America. next Pandey Our from Bank is Shipra

discussion the and main what of sort wireless launched of seeing are talking Great. the have and cable one the Having structure is X far question. the happening points sort picture like. is so recently look dynamic may broadband. Frontier, the big more debate industry There within where headed a industry coverage I future of my with a of towards of convergence in players. We're in developments of

fits long-term the And topic, And convergence I the of business the into necessity and share? of overbuilders and fiber your industry. and where what on just love so the to retain also their might long-term structure third-party like the look that why, game a is development would there's defend market Frontier hear in views picture? debate plan whether and then to

you. Thank Yes.

Of crystal this. no one on course, has ball a

its give here at and knows the really The happen. answer market, just my and component analysis can't can't once down nonetheless, but in in find the precise But work driven firstly, if clearly converging cable I a slows mean, the the or one at convergence you is converging world mainly done we where operators, starts, anywhere country experience just U.S. it scale. Also, really reverses. a shows I we've into data we break parts, very convergence. going either by So Frontier, industry a that what's down your to no question

say So will a to to market continue accelerate. I that think and safe it's U.S. is the convergent

calls, the by on be fiber a at be look there be looking several for will data I bundle said X that data the the mobile as at. us, And really see. I've we when us we'd with previous have need for to implications coupled However, dictated would points

of does fiber First for products of all, acquisition slowdown. our customer rate

Secondly, neither is but And does up. of and can is the our go strategy today, in that's really our perhaps a market, great evidenced And to results our because things see defending for is operators legacy QX true. strong churn are attacker as grow. convergence goal those X perhaps positions, who we're an in

watch a and offer. to returns don't the see on need the The good in use to are that's investing amazing see mobile at it, we we'll moment, very then a from our should we are introducing So add capital on work change, really to fiber bundle fiber the very, we behavior bundle. capital. But if of customer data closely. need mobile a we And prepared, our

groundwork, We to do we in how it something experience it. laid kind to of now. lot the do need really the don't of but We've have we see right our really industry, a cellular we know so as operational in team

access wider reflection overbuilders, U.S. white in actually, networks still remarkably structures, think go and think a I to build space of that colossal see fiber. open on that's the industry overbuilders. activity like things market little and exists I we the On

great activity to bit of operators. competition. of matter where -- should don't effectively a And perhaps capital little go if over perhaps compete and there's deployed builder a be that fact where have less And and So very isn't the in would fact, build be there have huge competition. that's you available a you our those we you an the that's if could market with market. structure And somewhere for very deal of capital to And to. big you a Frontier a little amount of in it the can fiber, intention and space of didn't why really see areas come why reflection

built, true point CapEx-light third capital. was think, networks I around networks. building on of And I The a on. your being and open and are access would models access there some open question, fiber there's just it's say so requires discussion always

else access add have at and return we open we the we be It's built always there our if open on really, get likely might is from our can get. is able networks healthily, we we marketing to driven our numbers own get and capital a to. is looking we will that need need And anyone the networks because not and existing the proposition, ARPU, want, consider access resonating, don't it? could who's to by and being kind of growing So returns might don't are that performance we to We're we to that access can it we're the commercial growing brand networks. you great those what so and efficiency question are our drive we open adjacent where footprints, great operational

Our Petti next Sebastiano JPMorgan. question from with is

just the on I wanted back just circle to revenue.

the business saw we revenue. here growth you subsequent aggregate go-forward reason see that, does in think there not continue there quarters. the continue think Is within I any grow the Should that on to basis. a from to consolidated

kind well the hood gross to of you kind the the could slowdown fiber on ecosystem, of see other gross seeing Anything your in markets substitution I just prepared perhaps that on other that or continue of color us under quarter? in rather, It's were the Frontier any additions obviously, Nick, in broadband share. Frontier going understand take occurring experience to by kind sure you you lastly, your what make Just Perhaps then mobile just broadly Obviously, cyber mean your within to grow. out to base? And broadband. are the you a incident? the any how Nick. And perhaps much of deployment. within positioned weight add continues But going the But to provide ecosystem. then trying remarks, to market could that's overall, wanted seeing accelerating and slide to aided the of there back given across industries, you're

Sebastiano, hand your Nick X, Sure. the around I'll that broadband. first and -- on parse let's in questions one take then and the on to

we on So the we the revenue, feel good start about to expect up year. said to QX, be We've year-over-year.

We be inflection consumer wholesale, to grow flat. with and up expect year acceleration year, strong major it be and revenue, and the we business same continue XXXX. would full trend in XXXX should the the point to versus revenue growth said then And we and roughly that expect sequentially, for full have for having

take QX net adds. part of the me your final Let question on

expect some you said So we've adds there. QX some are we some year-over-year. tailwinds, be significantly There headwinds. up I'll color net give to

On the well. tailwind side, our performing sales channels are

offers opportunity the segments cycles sales with demand have like we longer Our resonating with customers, pent-up for from MDU. and some

unknown get QX on the we're net do Now that quarter. healthy, some very going our those can mid-April issue QX seasonally ACP slowest be everything have do future to but into push we in get some still into did has of that future in -- Underlying is side, impact, the we could to an we might there pushed those late or offers orders finally, them quarters, orders is adds then typically in demand higher And solid of quarters. installed and drive systems but you have that place. although headwind mentioned. the

So overall, add our we net feel good momentum. about

strong in strong a expect second followed by year. half the of QX, a quarter We

Scott, thanks.

the the we of industry. do a is the We out early. advantages seeing question, got in to of we Yes, pure-play largest we some relative structural certain the are really our kind U.S. look, your structural competition. part of is of you're there what game. parts scale think the I fast on raise second of point the provider this. in And On kind that We were fiber And have stove slowdown to

For simply existing don't fiber have. instance, fiber use our to pull overhead duct ability overlash to or to others cables with through that existing

day we've customers, accelerate EBITDA And passings our flows So and to an delivering our X,XXX into, we're those speed through and scale revenue the very into us got and opportunity than we're intake heard new above ability underpinned of having And now about value-added taking converting a and XX% customers new advantage. now prepared a more. that speeds, or our fiber delivery, cost and And you and that's upsell predictably more buying really course, of growth. both give customers in gig those customers to as our X comments, services. XX% X of and service and

So we've depth the got and in momentum scale, of kind industry.

Now if I those market to things, a into. think very have very, you fiber is don't get difficult

more us. But I perspective, about we've our some think If flywheel We constrained, our you're to talked from see, higher to what's difficult if subscale, healthy one is if this operators, you're structurally feel very continues scale. customers, them costs your than themselves, we rather dynamic accelerate a do as customer to And smaller ones scale than on. build I in and how course, and before perhaps that a this the going little more numbers reach question get think market it that's ability they That's for asking a we're effect bit more, seeing of are convert build flows great them, cross-sell, operators, for that game be upsell customers, through sell in. into care, some then stuff. that get capital and beginning fiber, a to improve to more NPS

for it's if working and So scale, struggle get got very to slightly us. going haven't less is more. perhaps easy you'd that Perhaps flywheel well that you

briefly touch Just question on your on cyber. to

IT have and of systems, team up financially, at As back impacted any the call, a importantly, absolutely worked of cyber expect I perhaps grateful now to our from we don't some did this. am and the instance I hugely that material systems shared are IT we and tirelessly, most in mid-April amazing running. And our top our core impact who IT

question. So for thank your you

from is with question Chaplin Jonathan New Street. next Our

looks for middle top of with end probably that X.X%, how of I'm ARPU on to [ drive the out given you like growth a to then few the business Is of grew we consumer fiber progress laid as steady forward? business towards couple, you about ] if if A state spot going -- little in can, And well? that wondering your the picture that good which guidance? that, in card steadily accelerating, gift that the SAC the right can impact drivers of range. accelerate it of bit back out the think Or accelerating through -- On accelerating of Scott. ARPU, about, we about is it range? And a grew growth broadband sort you revenue you in color as sort give think EBITDA Does spoke evolves clear the the flat. year you just us and more context a fiber sort very

Great.

by X%. those the me very one. number That's take On you're headline healthy. Let one ARPU, right, was

gift on reliance our reduced have cards. We

If about you was year-over-year, that's cards out, that X% middle range the talked normalize we've those and that about. of right gift and year to X% it take a in X.X% for

of feel move growth. now hard working levers ARPU on described but Nick we are with there, could we're X%, progress trajectory. Accelerating each the the where top we good end those range, of in towards that excellent the X So revenue about

X% You I'd growth. full EBITDA how year. pace a give our us talked confidence rate into year going through XXXX. growth number but this it's flow fastest is growth say absolute was in EBITDA to adjusted really with we're quarter, guidance, about in that performance early our still EBITDA QX's in our the increased since pleased

was has type subscriber costs. They vary the to finding final your costs work I the sales unit a geography in question mix. by the we're vary go by that into every then we channel on different got acquisition acquisition year. And we strong and quarters, subscriber -- but geography ideal momentum we've feel keep X about we'll to So start good going, another and think

them partners cross-sell much the of of had door-to-door, some big-box inclined, and are heavily with lot -- selling more on digitally them more a some rely of of geographies and success we've Some stores.

big mix to And determinant so our a of is cost. be acquisition subscriber the going

Now processes as to improve We're down to continuing partners. our at and drive we negotiations continuing Nick our costs. improve scale, we're mentioned, are to with own

during working we So down hyper phase, to subscriber are growth thing term. while maybe tighten acquisition that's in this not a the costs medium near-term

Our next question Williams with is TD Greg Cowen. from

Anton This the is what financing good the CapEx, than of XXXX? here for capital kind still payments, CapEx just on you on part see to was in payments. under and a A exit Greg. financing of I to on vendor the wanted lower financing investment intend cadence year looks like the from payables with the vendor balance

is capital on Anton. Sure, This points few A Scott. investment. cash

So and roughly $X.X billion That it gave billion billion was lower we QX. in to year. that our $X roughly $XXX part guidance of was overall QX $X.X million quarter, of last we had last than

year-over-year good progress. So

declines smaller QX And QX then and a expect from QX. down step QX. We into in material

the to in gave, that. that confident we right highly track we're we're So deliver on range and

about In the reduce financing, million. by vendor of terms vendor that did balance on our and financing we you'll payables $XXX see

remaining have -- vendor that only the expect and We financing. $XX we about million on

exited we the of year. in for range that imply to a the we reduction large where as that be of would we XXXX 'XX. exit So versus rest kind That expect

that investment. about good So our capital of we part feel as

Our question with McHugh is BNP Paribas. Sam next from

A couple of questions.

a more the versus build look bit On like we expansion build. penetration the 'XX 'XX the 'XX see market, rates the can

the of can you to how contributions. those builds second about think and or on color differences any the progression previous we on should the give pension just builds. And the was similarities question So

But change the pension I post-retirement So you X us guide QX, square wonder the help on $XXX you $XXX if just liabilities. million in numbers. saw flow the circle million cash on we the reiterated the in of could and just year. for those the

Sure.

going range much about So mean and -- very said expansion, different But cohort the I'll cohorts. mixes, the target have mixes, then contribution. for different. every all take SMB. to of build we talk I in They're line going the to multi-dwelling, -- hit the We've of the mix penetration. think pension be is have we've I type with different they're where going cohorts slightly different different single-family geographic be we're expected in on to to

cohort. conclusions I so a draw quarterly too And wouldn't from many single

full growth You at rates year where even be. really that, you'll And that's do target is the got with right look when to a penetration our we customer on ARPU you X% very expected are years. to healthy see or growth. accomplishment multiple them And with our and of

So we where good expansion growth about and overall feel headed. that's

revaluation. will published On there and was QX and later package today. parts and discount change pension that contribution, was number million employees that Q $XX -- then took, given the details be were there a pension that a of in contributed a we also, retirement cash few there we have the moving We'll in a more rates of on in the

Peter Supino Research. with from question next is Wolfe Our

penetrated Mike's to could your origin. and question Q&A penetration, gross ARPU -- wanted in your about in markets, you discuss like the about adds or maybe rather Scott their base on follow their Nick, up earlier curious of composition XX% we're the I or mature

ones younger Or movers? more you base? cable the same are new Or Does how gross the does this is the experienced your in in as then adds towards targeted from are like the example, mostly compare switching ARPU vintages? And price-conscious it promo first value market, same customers they location by For quarter? to segment skew these your in premium?

of question new earnings customers pick here. geography come now where multiple the Nick for and... operate calls to on a what majority we And you we're want remind from our number we competitor up Peter, to in market vast winning. said in ARPU before, from Scott, we've have every of I -- would That's of kind do everybody taken just cable. Yes. in on every share the quarters. But specific fact,

Sure.

base and is ARPU very still between don't ARPU. healthy. we expansion ARPU intake our say differentiate So externally I'd

taking we our certain have That offer customers. geography smooth a from premium largely a with offer large transition in plans. But portion ACP. of the resonating promotional parts We customers of have is out had of our our to kind

taking our healthy we our So we XX% actually value-added at We've point offer. Wi-Fi TV gig, that gig a value-added or services new because are been success or we which X whole-home about increasing services roughly gig the different have sale customers YouTube higher. customers portion realize other of and of that or had then taking great. And of X talked with X they they has want

So we're as offer our as encouraged by ARPU. ARPU our by our base well expansion intake

going And question, One footprints? there copper go ILEC multi-tenant within out financial could, your for Is order some the partner given faster, I a in footprint. in could competition use footprint? if under of argument it faster sense in on to even make models more an in building interest to your fiber their expansion circumstances your

Yes. Yes, of It's Nick. quarter. of parts as making fast as fast first company the the can strong whole we're building sensibly, And we And all as really you as look, a company as take sensibly kind I'll work manage. produce in to I by the can. the that. mean results see

other and company It's see can to U.S. And market that be. great market we're of one come operate preserve our or we sure that that evidence it fewer the course, part Now XX% think fiber across very really of where relatively we make main footprint, this we the I attractive our doing I the to the in active market one in make have that. is most a reasons this why about world. structure unique wanted to things in, the competitors. we And Of doing And one we and the if of relative the that? structure are is in beautiful gigabit-capable Frontier can thing. quarter that experience the footprint, my to in around markets

perhaps So any comments want make on you this? to Scott,

No.

We've opportunities I a -- lot ventures, think of are options, different talked different we build. fund the we'll to exploring different partnerships. have different we financing strategic about joint

So if at opportunity part review, the even the now. looking faster. right we're to strategic that That's comes build of and

next Del from is Our MoffettNathanson. Deo question with Nick

goal because kind primarily with of is where help megs. or outside of longer introduced of historically, you on more so over at and to then term? And the I you So to I you're potential you any looks models think was XX% to planning source recent in like keep like that, other that conducting you've can you're on? sole offered the speeds customers getting was front, update broadly? gig. months, for XXX-meg least ACP PUCs capital guess customers marketing of a new prepare lowest with us work emphasize a BEAD you the XXX I plan. Are It data second, a JV that that the are the doing ACP assume it outreach on taking the together,

and the then pricing perhaps buying quarter, the half Thanks, with the service percent every life. speaks I'll was Look, really newest, customers then, just we you pick Yes. really, market abstract best, really value-added when ago we're for it that and the and trading which fundamental of the that's services. the Scott, the ladder or there that's increase. question. customers what beginning strategy, are provide. the to of speed the out second to pleased seeing but back much gig-plus an start X.X our And set up rate up Yes. X pretty story in more If our track of concept this to demand we're And new Nick. at out we the it taking years years we ago, we've fastest brought

is X the a strong everybody that gig, X gig and cohorts, would that. symmetrical up and already already from trading X.X X gig, which really simple end, remind gig is electronics, right across network in traction and really, thing customer capable to a gig, X we X gig to capital gig to way, is in I'll would way, XX to upgradable to our So end the be go that way do the limited to need ground, only fiber system very beyond very because very, beyond change for to

of lay things. And top to So very, finding then, have want of our course, sorts on really, that. a really buy extendable value-added very ladder. And speed-price services we those we're we of customers

keep that portfolio going we're as to extending well. So

geographies, sure that meg very ladder, of XXX a market really, also So services customers quadrants well. But on-ramp end, works that but end. figure seeing, trying also you're we a best that new to of different an the Hence, our our have the I the [ all the not for out to bit of unlock of that's, in different ways, really covered, just how plan the lower create role prototype, part but all high we to pilot, viewed experiment, machine in as real think, value as do we ourselves. time value make the is and that ] the for

with are have to we ways everybody ACP our But of ACP is market, And may I'll we ACP that that Frontier low were part capture of find it attractive remind in there to that relatively a out the the there opportunity. true X% an customers experimenting market. customers. some actually about Now other exposure

kind work those And of of pulse were we out customers. for both all And in and what markets pilots might the so prototyping geographic we time.

out, cycle speed one, we if find the we is. And across growth. pulse go consumer others country. X% And So that in look in but doing picked you'll growth we around of optimal and XX% end up see keep day, growth We you've regroup, our in, again. review, you've XX% we the right ladder what results we kind our of on you them mix pulse many that we closely learn, with the seen combined the broadband, fiber at ARPU to the out things and

second broader to up the the offer. Scott, that's So want of the seeing do with sort point? just what picture you're XXX-meg pick on you

Sure.

your answer me Let Nick. question, BEAD

right. You're

strong after We but are up go way. in a deeply team in scaling a to BEAD disciplined involved

out we've grants our built So team.

and actually We build an modeling models. included adjacent excellent BEAD-eligible locations a our areas into data of have integrated team. done lot and We've

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of timing, addressable total an but in to ready market. BEAD. our exciting on we're terms flowing disciplined expand think in -- when think greater We'll So be anybody's for an it's We program. important we to it, way guess numbers. that as But starts

is question next Our from Simon Flannery with Morgan Stanley.

the Just wholesale was about granted front? And to business the talked there have coming -- on your outage on in growth we Is or anything any particularly you strong quickly. that be to and strong. you -- credits then revenue, back should thinking you Are fiber customers?

the X% value-added drivers forward? I talk like any you think But rate pricing know could more you it run about services. of going about, was I color good actions sequentially. about is and up talked some this a

Simon. Sure,

Let of But material X what fiber any QX, the beyond another be installations that's me one. systems. On is and talking really where or the may about to did take the we're quarter, the by quarter. that. that, stick to business going of good there, we've be hit grew We're that business the that going you where a really of strength business is not underlying we portion on that. customers legacy get And first we've said in around wholesale, to focused big offset specifics orders, the it healthily, and driver encouraged job a the staying financial then churn. expect X-K don't some in impact. aren't product managing to lumpy we In have wholesale, that said We'll some a

a or to that's this year. to and wholesale, plus X%, and good year, we So be roughly stable throughout start was again, business minus the expect the

Frank Our next James. Louthan is with Raymond question from

Frank. for on Rob is This

of you guys. currently the in what the Also, the your access way ACP in unknown are impact exposure earlier mentioned on seeing fixed So you you competition terms call you is to marketplace? of quantify Can in wireless ACP an subs? that of number

seen the have running on And schedule? to everything outlook? mostly Or then you changes is construction recent any lastly,

Rob, good X. hear you. X I'll to from Sure. take and

outlook for On a and then just and few points, the to ACP, which Nick before. shared data ACP all construction wireless. then fixed So pass of we've

customer win there. QX. in again, three, of of offer QX and be and even X% QX, We see ACP from likely of and to serve have impact. some to new continue market relatively see resonating do may that expect We as low, quadrant will we'll exposure is competitor we able our an the customers that unknown. then market. ACP but late material the the don't We to wait some So base. in there is It's Nick impact timing said, our in a well, but the to be roughly impact plans, bit be roll-offs off roll And more may

that's outlook, around So third stable. it relatively your construction we see ACP. On question

players. partnerships of have with great We kind national

and We able has some seen industry. up the that have they've to large to number of builders plans, labor back pressure part, We've relieved scale meet costs. regional other a smaller scale been the In partnerships. on of demands their

Nick and budget the thankful confident feel I'll capital on to for year time. And on are partners in our wireless. on to for deliver we continuing pass our and fixed So

in overlap I gained goal reaching marched in a of we businesses. And is footprint, all our of FWA probably wireless, about X talked mean, mature, continuing but systematically we times do And grow. fixed I significant have On Yes. our of seen haven't number on really which fiber most FWA, fiber in subject our still last really step base said full every of FWA fiber fiber we've an our a it's a and over competition that's has symmetrical because previously, impact high-speed least footprint. FWA and, sorts, penetration early-career very that the for kind mobile And up service for fantastic broadband of geography. is sites, share back, with with so TVs, apartment full our all for competitor market serve fiber at every do whereas fact, and a full course, homes dwellers different if on, great construction actually actually, we a XK against and we stuff devices, is as our of where XX%, multiple segments. Playstations, bit to now has have yet and years, it's of mobile earlier,

a exponential nibble FWA But huge I network, who you would to cellular a of of do amount a from use to all how capacity talking rural. perhaps we FWA. a revenue. data be you of kind capacity What asking connection. and rise at up users of and in and cost consumption the at more the now moves for what the have just -- course, can And that -- point When the go down, that big as individual do run used as base copper back, the And a per prices we're the and business physics off about going FWA of of you devices at in math through. And relatively that said appear very lot serious questions amount as through. is of because economics network sustainability case is if of do providers the bit flows simple limitations, we've those on look for in. FWA the of think beginning our economics although to more Now continuous not insignificant to our gig, restrictions and some someone And playing little to be copper put I step much very may might is very, break we see see that geographic consistently expect, base market. FWA hang

is than we're really we FWA to terabyte at And that into. networks think the of really a usage market higher serve were top full So best with Frontier course, that, symmetrical moving engineered typical quartile, X the fiber much and same is don't of solution our and And our and strategy view. that segment in above, continue really resonating fiber from very technology the connecting businesses confident will one point physics for a reason will over one and very, homes to be and the long do that is really of why market term. and that's surpassed of sort never

the close you back perhaps to call. to So Spencer

Absolutely. call thank quarter first in to talk Thanks. you all XX our there, you XXXX us. and conclude Thanks, we'll for Rob, joining We'll and your for question, days. earnings

for participation. all you Thank your

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