Verizon Communications (VZ) 21 Oct 222022 Q3 Earnings call transcript

Good morning and welcome to the Verizon Third Quarter 2022 Earnings Conference Call. [Operator Instructions] Today’s conference is being recorded.

If you have any objections, you may disconnect at this time. It is now my pleasure to turn the call over to your host, Mr. Brady Connor, Senior Vice President, Investor Relations.

Brad. Thanks, welcome quarter and conference our to morning, earnings third call. Good our am Brady Hans our Ellis, Connor is here Vestberg; Financial and Matt Officer, This Executive I with Officer. Chief Chairman and Chief and

reminder, also presentation are A be on the replay made a information Relations of transcript website. our slides our and available available financial As operating release, this and and Investor on website. earnings call our will

X. harbor Information to like this draw attention statement I’d on about started, safe Slide are forward-looking statements and get we contains risks and Before events subject factors of affect This contained with financial financial in are future that Discussions non-GAAP financial SEC, are that to non-GAAP presentation your future to our results measures. website. expected Reconciliations uncertainties. may and filings Verizon’s on of the in in measures to materials comparable is GAAP contains posted directly presentation our the these included most certain our the website. measures which available on results

related includes net TracFone let’s $X.XX pension from third million. third earnings a quarter loss This quarter. assets include mark-to-market reported adjustment amortization and earnings charge liabilities of of quarter, items a $XXX we $XXX a In of for of for other of and the approximately earnings to primarily million. $XXX look Now, a intangible of our share related basis. pre-tax acquisitions million, to Reported the on pre-tax GAAP a third at approximately special the impacts per consolidated take

to us quarter. will over third the of of in earnings through quarter. that, the a now per I take these Hans recap effects share the adjusted call items, the to turn $X.XX Excluding With special third was

actions would total and increase. adds XX% of had growth with good adjusted momentum early the you, that those increase XX% sequentially are taking actions. We year-over-year for and share build billion. take delivered. told service improvement million and in morning, Today, we phone almost the you joining revenue sequentially $XX.X We up us. quarter. wireless Thank EBITDA X% the X% results third nearly year-over-year to second significant you a am results I quarter Last are have the to ended These X.X our grew quarter, minus of indicators gross we here from and thank X.X%, across X% in by and businesses Brady, This are actions includes consumer gaining traction. we an about everyone, to

there financial unchanged. for not impact my had to our they glad is the Verizon we am course, business hear sequential position you to grow more remains business actions Of are of and potential actions team take improvements based will out the to our but see cost call, to XXXX to with done the revenue Based have I efforts, yet. and on guidance to I for plans, our to take on took to do. Verizon. momentum growth. we our Throughout work continue full unlock and on the of our

in Postpaid Matt both in consumer from a later business increase service by quarter adds details wireless our our the phone in offset the groups pricing Our Verizon gains revenue. with you share loss call. consumer X,XXX second in actions in quarter, the came Business. with more and for net helped will

gain to results. result, positively increased customers group Let me traction started reacting our we as turn to In some to store new a offerings and with Consumer, traffic. have of our

contributed phone and improved plan being Welcome year-over-year. customers’ consumer to gross perception up adds pricing Our

network now By Total we Verizon, home high-value key customers. launched a one Apple And because quality of service introduced In this With in bundle. trusted contract recognize remains Internet TracFone. Apple the continued services prepaid they partner have redefining to iPhone segment, wireless Verizon, of our of Unlimited just launch service, under first-of-its-kind step all on and week, a customers XX, integration we X Apple our the a no delivered subscription. a unique Talk the brand. and wireless our value Verizon access we Straight

value to for customers continue expand quarter, We are prepaid positive positive also first second This our offerings our quarter since helped in notice. net segment XXXX. the and generate adds taking the quarter

attracting disciplined a consumers For postpaid, and in we are measured focused approach. on high-quality and retaining

have will see more progress our some actions. of them surgical we we in opportunity, make. of we manner just to recent address There areas a done is As like with

having opportunity XG And so we will we continue It approximately With the clear customers premium Unlimited for with of on choosing from XX% new a and retention customers. is of strategy that base, a of XX% these our right uptake is have step-ups. demand Premium great there see a focus high-quality Premium ended a XX% we our start. customer and with Our winning is on to base on working. the XX% third phone our is plans. quarter We customers Unlimited, Unlimited

to am Department by the over XX%. And We And broadband demand. in important Department world. to of enterprises partner we see global and also U.S. recently sector fixed Verizon fire and embassies communications made for of the choice a an wireless quarter. include of its were proud our adds with broadband, These access of clients. the see digital start. we very Astellas XXX,XXX, momentum continued our work sequential is with modernize I encouraged am wireless across growth the continued mobility. we XG and Moving large a I with are and public continued Total infrastructure net access a this to in just announced around Defense. these Pharmaceuticals, fixed agreement strong and locations that Fujifilm In other Business, State service transformation good the deals projects both infrastructure

All deliver services world-class of of built to these top our network. on are

a and value and that We premium that network premium pricing. have experience customers our demands

us of Ian. the on America and value relies proposition. we This during in before, network evident is deliver. Hurricane Our aftermath was a and core

Bottom always crisis, was to what technology expect and we to ran needed the people network infrastructure did delivered areas. impacted to line, our our way team restoring from us. We you come do. and the that have network quickly protect our as in Our our solution resilient using

mission reliable, best, Our highest performing operate always the and been most network. has to build

of access. advanced to customer both spectrum our fixed use on goal. C-band, Our fiber critical to our we Where deploy and portfolio own correlation that technologies, achieving and growth are our mobility wireless see expansive we direct footprint,

access We XXX million with and households. quarter-over-quarter to Right are XX covering covers more than sites and is usage on within of Verizon’s C-band our wireless more XXX over XXX% XX% own now, of connected XXXX. million million C-band fiber. POPs quarter deliver the up first track than are currently cell now fixed by

about our the be with XG already our we making owners’ year-end of on We At XX% by out performance, sites are are but the own economics. to fiber. our also network our business. improves expecting majority same only improves of This to efforts not cost time, take

leverage the is the are organization expect $X business. cost This have that We one A Silliman. by opportunities of our In under across enterprise delivering leadership savings is our these creation to performance how between of of cross-functional thinking designed this company-wide period, the in to run while we our XXXX. annually global program everyday $X part a will program Craig step billion billion efforts enhance first save we a to on about we constantly our strategy. service larger

efficiencies cost in to lot our economical our Over reduce environment and a help diversified it deeper values global Matt competitive base, options, years, into in our I to benefits matter that cost no past financial results. strong will from the is we a services that just best services circumstances, to to a getting position, even with and through company unprecedented with delivered have we Verizon we significant deliver our network high-quality unlock financial will organization including X under learned savings now the program strengthening about Verizon the our Keeping across and quarter-over-quarter. our continue go practice keeps customer business. discipline and hand over better. strategy, how market in value offering, go-to-market our solid customers. line performance

Thank you, everyone. morning Hans and good

third you the be. two actions Our traction to in quarter past in were yet not them we as taken like results the from have gaining we are the would the quarters Hans, But heard from marketplace. where

As gains in into further a gross result, and that we broadband quarter. we saw to positive fourth the phone developments we in in sequential head adds store and our will able traffic momentum build improvement We as a consumer anticipate on this be results. financial

Let’s now postpaid our mobility with the through on walk third an beginning X. overview quarter, results of Slide results from

approximately premium and quarters in XX% strategy plan and drive the increase attracting tiers. by migrating in the even penetration segment mobility quarter increased with consumer economic of with to and into the prior Premium a to growth growth Welcome end, the Our line introduction is current revenue retaining sequential backdrop. customers at high-quality for them

As in gross the fee well X% result increased in in ARPA consumer up continued the year-over-year. of impact phone our penetration, year-over-year, and a combined reflecting continued gross adds the admin with consumer as increase postpaid plan from metered Premium adds. were from X.X% improvement benefit price-ups, business as increase the strength Overall, approximately

their three the net as the for with postpaid With quarter results phone delivered public actions, increased pricing of of The the net phone X,XXX both groups, consecutive XQ fifth Business double-digit XXX,XXX. the seeing were enterprise a customer add their sector impact quarter. adds phone as result again and expected were growth. balanced churn, recent in add which best-ever across net exceeding phone SMB and our quarter, XXX,XXX performance adds delivering gross

One Consumer QX. sequential were adds On an Unlimited Apple improvement postpaid launch the while providing avenue the another in of The the and X.X% XX% more plan traffic to plan store side, a from helped year-over-year, Welcome of phone spend. promotional gross notable generate outside compete up to decline

the improvement add year-over-year phone through gross seen for another single-digit fourth in now anticipate low have growth year-over-year September in months We consecutive and four performance quarter. performance

As certain QX. led expected, price-ups disconnect being pressure phased would increase the some actions around quarter, took throughout pricing With an fees disconnects. administrative carryover metered plans third anticipate we and in the into to in to we

we together, consumer quarter. expect gross to add currently result the in adds positive performance disconnect Taken net the in and fourth phone

wireless reliable reflecting third access on Fixed XXX,XXX reflecting demand and net adds, were broadband increased the Let’s Slide XXX,XXX our continue as and mirror to begin urban Fios locations continues XXX,XXX expand to a of that high-value up further now broadband XQ, broadband gains coming added our prepaid XX% net adds throughout X. Total than performance from for to quarter. More in segment. momentum usage discuss business in the the across net strong continued this in space We from in customers. offerings. realize consumers. demand and with coverage our offering adds we benefits household share data consumer are and anticipate our We suburban from quarter,

net strong XX,XXX well also We QX quarter, added Fios outperformance as reflecting Internet retention levels. the third continued as improved adds from gross during

footprint. fixed ILEC of the customers. ability surpassed We expanded some and Fios lower at our businesses including on Ultra now increase Wideband. adding opportunity shows XXX,XXX. quality, hit grow remain as Fios that headwinds we for nationwide Our strongly our offers, XX secular full by household wireless resonate continues is with covered XXX,XXX within due Total of in move quarter, well more to open-for-sale value covered to target as households year-to-date million, million a to million in activity Fios XX.X spite over and that broadband coverage of open fixed year XG by and track our reliability wireless the sale further our XX Fios to growing

about Now, talk the let’s X. on Slide value market

of as Our customers quarter launch late the month. this work TracFone highlighted new launch continues, Verizon, wireless in well our by brand, of our integrate prepaid By fixed the Total as prepaid for the earlier to

primarily grow had quarter, and more adjustment the and positive positioning saw network excludes with the adds we are XG for competitor’s the bringing in performance, TracFone’s first which which time customers benefits net significant launch our base connectivity and XXXX. to in we combined fixed XXX,XXX of relating since positive to the a net further brand delivered With wireless, improvement XX,XXX, market, shutdown. value a in We excited For current prepaid of about our to new this ability space. momentum, our of QX adds

and On M&A revenue up service year’s offset move basis, growth consolidated revenue Slide impact consolidated year-over-year Now, declines of activity. revenue wireless the X.X% XX. let’s wireless equipment more on higher financial to and total the was as net than wireline results a last

primarily ownership strong our excluding up months growth As prior TracFone, X%. above a wireless continued was third service divestiture. last year the business XX.X% activity Unlimited had service grew by revenue volumes. TracFone all reminder, before Media effectiveness quarter of Total only wireless of core the X as from Premium is strategy driven activities, year its revenue, and The of business our Verizon

taken million total actions at for helped from saw year, $XXX would previously benefit we million the of generate in Additionally, across QX a adjusted said other we billion service the increase QX. These and $X as which of roughly earlier pricing to actions increase generate a in sequential and an billion and $XXX EBITDA $XX.X of the adjusted came revenue quarter. EBITDA wireless in

with full spending from comes primarily year-over-year of our XXXX sequential We the for plan, Welcome comments of electricity from both including to to $X despite areas the new several pressures pressures view Inflationary higher impacts, call. expect that promotional further efforts of continue on during consistent within billion have Expectations impacts taking to steps elevated enhancements. remain To will automation QX by inflation coming $X and XXXX. feel in internal QX streamlining the of of customer started operations QX be subsidies point throughout we we be savings year subsidy. reduction rates. a the with cost to our from process earnings disciplined, increase program experience and through which higher program inflation annual remain the device provide and device digitalization the cost launch with mitigate including enhance and a a focused billion will This business,

savings be reinvested the these into bottom opportunities. While portion help accelerate line, of this a will business to benefit will part the of

quarter Brady third As $X.XX. was for EPS noted, the adjusted

for higher other addition impact rate increases interest to and non-cash this reflects cash associated rate In pressures $XXX income this estimate sequential now OPEB. changes for year-to-date to XXXX EBITDA, be the interest about we actions interest Reserve on than our increases, impact in rate with providing expected expectations next due and Federal due increases and pension a Likewise, on We into non-cash expectation the expense from to market million in reduction and impact expense put to XXXX. rates year, additional EPS pressure year year in below-the-line full on pension this to continue for assets coming lower anticipate is will cost interest XXXX. to higher into given interest the additional this from pressure Based the return an items year. from headwind year

period consumer driven the third as revenue. take to the have by results that and consumer will a Now, let’s higher away quarter X% Wireless from continue inclusion from as our service actions the impact benefit our growth of offset by content year. for base margin video. promotional look video of was compared expect service actions. The Internet in the costs year-over-year quarter Total offset Fios were full more dropped shifts impact well Consumer the revenue profile pressures revenue a at revenue wireless increases year-over-year Fios grew of $XX.X resulting from as Total well improved an of result the decline same financial versus was growth the the we service XX.X% results. revenue to subscribers. also billion, impact TracFone equipment in XX.X% up last than as as period TracFone, year revenue from of core same the EBITDA X.X% inflation. of higher the and X.X% growth activity pricing further revenue pricing up ago a the wireless inclusion of

in as down continued sequential ongoing though X.X% quarter, the X.X% USF Operating Next, are XX. aided let’s Wireline $X.X revenue actions our service by EBITDA a by rates. in declines declined remained in financial Business quarters. X.X% higher from growth versus base. prior from continued QX, on wireless Though The X.X% was with due prior revenue year. wireline service as year. revenue the quarter, look up growth customer pricing well closer increase strong for of saw headwinds. at Wireless due Business last take was a to results revenue prior trends to secular segment’s consistent Business billion in the we results XQ, Slide

growth we the costs as wireline, higher up XX% year. addition sales wireless volumes related pressure were from In from prior by experienced to

from $X.X device and move on the $XXX.X an for capital of $X.X a continue, The $X.X billion three working as of for billion, free year. XXXX Slide activities last the billion compared cash increase billion year. flow exited operations $XX.X We and quarters period of flow from let’s to spending billion net cash the flow first impacts billion sequential XX the billion in a months higher compared $XX.X with of of prior totaled $XX.X year flow spending operating three debt-to-adjusted to year first cash of the spending three first resulting inventory and result Now activations Cash first totaled for Capital ratio of in the net quarters is $XX.X summary. of levels with increased X we of quarter was billion, debt, expected. C-band of capital for as year. unsecured the unsecured quarters the improvement net the EBITDA from X.Xx. the

As recent Hans flow balance strong securities remainder sheet low our prospectus mentioned maturities than been at as or filings. trends in has puts evidenced remain better the our by postpaid next base quality of year earlier, and this a cash over and and never our Payment operational asset-backed pre-COVID position. strong levels, better of generation bond unsecured the

taken had the from EBITDA As we revenue anticipated the sequential we growth and look delivered actions in at QX results, that we XQ.

remains Our unchanged. XXXX guidance for

our of XXth consecutive balance dividend enabled momentum deliver that to It strategy flow the combined our will We future. increase for the into our year. confident We sheet, this shareholders, in and recently before is approve Board and remain to strong the health us growth will the are cash to with building confidence, to back intend continue position for open turn up Hans put now the importance to a I our you. questions. call Thank of comments recognize to annual increases. we the dividend we concluding to that the

more have Thank The is you, be actions there to done. Matt. progress, showing taken but are we work

market and the Business end XXXX; Consumer of the strategic implement a come. to the and momentum finally, in into increased in and measured Our access efficiency and cross-functional and through are capital our quarters holiday continue for our of the and wireless our program momentum the working initial financial priorities traction our and framework XXXX the wireless to discipline improve maintain through approach into season efficiencies; year wireless; continue and fixed with straightforward: grow

While I’m there be is positioned well we confident work that done, are deliver. to to

So thank you.

Now back to you. we’re your ready for questions. Brady,

Session Thanks, Hans. Question-and-Answer questions. we’re take Brad, ready to

Thank will John first Instructions] you. come Sir, [Operator of is line UBS. from open. Our question your Hodulik

quick guys. Thanks, ones, Two can. Great. if I

market obviously comments you to is – And a price just do given But network seeing driving? really sort parity the First, it’s – of off below-the-line you you today? what’s Verizon macro ‘XX? as until number sounds a guidance that given I fourth you guys prices you on But what what to year. next it often How growth you but It don’t and fundamentally, sounds the we increase. just headwinds know of think hold do at that quarter the like giving we have are call, got and coming something on the secondly, expect looking on And in approaching for move growth And from Thanks. to cost high progress the postpaid Matt’s we’re stay prognosis then ‘XX up. through? all churn, that elevated. just going this savings the in given too for had at you EBITDA the environment like ticked clarifications it the moving you through have phone point all parts

our comes and continue to and the with I X.X% couple was Thank were a the quarter you, We to of think on mean you we in. added way heard, but adjustments. the came the from when ARPA, and the as fill TracFone. adds. second adds wireless soft is outcome that both to we but the Consumer then also gross Matt it we grow the will happened to Welcome comes gross new start the all plan service churn, the revenue. course, side out where TracFone, grew quarter I what when quarter the of that it I John. products we the from exclude expecting service And And price with revenue we if can

and strong and where unlimited where working segments, continue is So do for we I we in continue consumers XX% segments that. very we will premium on continuation But have than it Premium. do XX% of to our in that more we will now clearly saw also to us, we Unlimited mean see on certain weakness. a

we that So going – area well. is

to that the just we in and add we areas, Apple do and we will So need competitive values But we more at et I We with think have continue that. that one One a those now right pricing with find very plan Apple Unlimited, the to have market. come. like cetera, to

base So us in do And for that to we consumer the right the we in it’s it’s grind largest course, the – it the market. of a have see segment.

keep So the just that goal to the And ;with to and this full And our X%. we’re doing quarter, need way. EBITDA right we to we’re that’s our grow we what this EBITDA. for almost grew guidance in saw is doing, you year. see our our And ultimately, continue we

So that, costs. top take of we – we then that’s our on out job. And

all what we’re in So ship I it’s we’re And working a that’s constantly moving. with big think here. all,

quarter more that impact. we having we have second to – mean we impact this and We all actions we’re in think do. think I took quarter, the doesn’t we done. do saw That the more positive can

and quarter quarters the So we I of summary and come. think and the we sort are we’re execute how in where continue of executing, will to to that’s this

basis And that to Yes. place, the in first up pricing were I’d adds fact in your a John, the and X% so question XQ. is the part gross churn around second almost you point maybe right year-over-year Hans. our of on our Thanks,

and the built best network, So consumers with of see to obviously, to that. resonate value obviously, our customers, continue having continue the on offerings

our the So get share. traffic will we gross there, add continue and believe will be that fair to

On across the both metered phone fees perspective, to touch than it side, we churn more actions XX the just pricing took the and in customers. the put plans million

And that came so was that take. was of well, benefits it we the financial as mentioned kind exactly which days and as that to saw expected in expected. through the the we highly right to was XX But we approach in uptick churn quarter We ago expected the happen.

So obviously, will is those where of the to go impact that the to changes churn here, will we right and as continue our sure ensure mitigate make we forward it needs to be results.

first In the of you’re terms on your of right, more you specifically the XXXX to call. will question, we part about speak next

obviously the middle cycle on that should to But us saw expect the deliver We’re right planning certainly in the in us you build you third of now. momentum our quarter.

sequentially revenue that X%. service saw wireless You up

platform next quantify and mentioned, to of will increase some we we’ve really would there on and of about as depreciation we impacts we interest some line, sites deployed below them As expect a to year-over-year said X%, ‘XX. C-band When there of of that put in before. And we’ve the But in significant the spoken you I’m having mentioned gives and those kind that we capitalized of sequentially those, came you ‘XX. the and ‘XX specifics here auction, to and EBITDA C-band out to reduce to all build think then be XQ up good going head you those pressures Hans year. about on us about now. then as not into as

will pension layer been rates what line both talking the obviously, in impacts the but rates this a also higher And and about because that’s we’ve interest cost that, items also will year we then interest with year interest assets with the for other imputed that top the next year. year. of non-cash while. performance have on and with a be then are higher, So the lower where line, around full you macro of impact that expense OPEB, of below-the-line And higher and starting

coming good generate ‘XX, But basis, build obviously of significant we continue about going momentum in sequential think had So in we on position things. those us successful that flow will out as be amounts on quantify forward. XQ, a XQ of to that to puts cash look we a to

for Thanks right. detail, All all guys. the

Yes.

we ready the John. next Thanks, Brad, question. are for

Thank of question The comes Goldman next from Brett Sachs. Feldman you.

sir. line open, Your is

Thank you sort of the broadband nationwide taking Yes. for It’s emerging strategy. question. your about

So over million potential now I can fixed offer product the XX think customers. you mentioned wireless that you to

the I of Analyst last is business. that year, the million think with from XX target residential XX ultimate million Day being being your and rest

– also to network deploying basis. point national a this, fiber, primarily You’re mobile made you about and on a your you’re lot a put just of

region. in fixed that And you. the of perform their real what of have evaluating now are wireless leveraging how of something fiber-to-the-home be is, out are on of of you so that You homes? question million fiber you network that the XX I side deploying as eventually product seen think Thank footprint then is imagine network. the things, it and how you’re does it Considering a the about expansive more reaching thinking opportunities target evaluating potentially could And wireless greater? fiber some strategy about national to AT&T is talked becoming, do yesterday, your they well?

Thank working national it’s really to Brett. all, for it good our strategy, broadband When you, comes I first think us. of

XXX,XXX. You saw in Fios be the quarter The and customers footprint grow. adding continue extremely to continue to high-quality

access. single a fixed broadband different It’s to minutes wireless a takes we on Outside a the where focus speed low to right model We now continue wireless get very high market expand product it very because that, of actually broadband. for comes market, in total have course, demand disruptive high home. at because access have to will to digits the we, of is course, fixed And when that the footprint. it

we we XX just our are now market markets as the will you in the right capture rates we the we our the are are mean, But So access. see C-band, million can covering deploying as on fixed said, as now, we into households speak, and Consumer we growth given that we Business. I as for with is on for both more and and certain wireless happening remarks, have as soon markets. we you stated And rightfully network more as

and to fixed continue It’s course that, in customer execution. high these have will not good are on satisfaction. we really plans The there improving. quality access we areas is So and the customer is satisfaction The well. wireless expand of working equally competition of course, are and

us. think is no, that this a you’re confident for it I we are good to our absolutely right. when – So – think we fiber, comes strategy Then

getting sites enormous want network, We the of on in all are our sites. now all We year-end fiber. on our have have by XG economics we’re we our that and investment own fiber, done and because XX% owners’ the majority passing with

fiber. Some need sites will never

it’s But not see in to we we or the going for outside. what a like in XXX% outside to the to end customers our side good use see third-party fast can fiber getting like that can I’d as have footprint on that’s access Then that. doing. a want better for some fiber especially experience that to that wireless Business as can fixed focus others. we’re clearly, order substitute we we So from get goal. customers, is are opportunities, Fios But fiber footprint, the

strategy, the it’s So yes, and confident about working. are we

XX-millimeter with several We be C-band, We have talked multi-spectrum. handle everything out that’s to going for going about XG, come That’s new from years. to products, wave.

products So and performance of better. and the the the resilience getting quality even is

where are. we that’s yes, So

Brad, add thing. one I’ll just

home. You mentioned fiber the to

despite had low-mover net another XX,XXX our a here, Fios team good quarter environment. course, Of adds

milestone note, more footprint. for just on focused strongly of we very to broadband with very we’re business. continue access, Fios open to to sale Fios terms And add fixed said, and in And Fios business but a – Hans connections perform continues that over X XQ a doing as that customers to in build as million wireless going for network. through our for our was So point

And So around it access with continues to the it supplement fixed perform very strongly. we rest then country. wireless the of

Thank Great. you.

Yes. Thanks, we next the ready Brett. Brad, question. for are

Morgan The you. Simon from Flannery question Thank next comes of Stanley.

open, is line sir. Your

you Could of path scaling like morning. CapEx there X% beyond. how more for to plus to back broadly, XXXX what this update us March, are Great. that? you. Matt, guidance and Thank revenue BXB mobile you from a one can to you. year? in talked and and that Any you more you quick things Good visibility then give edge out And maybe significant how on get compute, growth that us about in looks, a the do applications changes gave the for around XXXX kind clear drop

which Yes. on enterprise private with start the edge compute, I the and the mobile side can we XG networks. –

edge private As edge typical a prelude it’s of We is the normal start networks, a I And had we one you funnel go it, into cycle, then this roll to examples with And and gained. quarter it three public private very others, clearly the was times and mobile and about strong concept, on is you deploying out. then demand talked couple now, XG enterprise XG – mobile start a BXB we was see we or proof strong. on another said all which a have of networks, couple of you third where computing: different of edge use the the sort was cases one compute. compute, the the right private before which

So to enterprises. turnkey the is, totally to any for for that’s to course, transform be over their building to of sort we’re and But projects with customers team not asset be significant in his short-term. years revenues the to Sapa of going a opportunity in larger over reform going continue happen and new time, digital

we’re use So mobility strategy built different really on good the this it’s a both into edge us. and off speed. starting And to we now in networks, XG move mobile building we the and have is a going to adding fixed And high then cases start, once, we private get confident again, same and the that’s several good compute wireless network. especially where we’re mobile compute. network the with edge for – access We are a a now still are

that’s So us. I how that market continue for see

your guidance so obviously, first more Simon, but view around Yes. has will our specific be in on January, nothing CapEx. around we CapEx, changed ‘XX question of

has of team year. at done in said we the So I the mean work very this because XXX and of that’s line POPs the great covered year. by million be end we’d much the

XXX will means significant As XXX some year phenomenal during Not say XXX point between first we speed we a the of been team will there. has and for through than the at ahead the network only heard C-band covered million this at the $XX chunk last earlier, already quarter, Hans so the have at That be built more that of year. CapEx be million, you will but million billion XQ.

So you it be of times. will numerous about we piece levels all just that be stub of will to BAU that we’ve those small a left year then next at spoken and

revenue mean, term terms to certainly we growth, I the we saw come the by of will third encouraged obviously, that, quarter. longer In in but back what

my when I last you TracFone As you up November X% Trac service prepared even acquisition year-over-year the if I of all than has noise obviously, number in wireless XX% revenues, there – on But mentioned, from the year. remarks, ignore the in closing the revenue more mentioned growth year-over-year.

this momentum mentioned significantly that year be around have we private So customers there. MEC. building Obviously, we FWA the we and will the next XG Hans we’re momentum year. right more billing did will networks on than positive

‘XX here, then see will in quarter. well, about but plan be momentum we talk continuing seen we the will a get locked that So in last the to on build things position down and as to where longer-term we’ve certainly we

Thanks a lot.

are the we ready Simon. Thanks, Yes. Brad, next question. for

The you. Phil comes next Thank JPMorgan. question of from Cusick

is line Your open.

Thank you. guys. Hi,

question. a First, John’s on follow-up, please,

to then thing. usage and see idea us that for second idea this give see losing strong Just the is going much. this of on contribute You’re Business? You’re type plan? pretty give of T-Mobile still adds. this any did quarter? gross being And as Thanks you improvement an adds industry? lines? despite from in lines And What those pushing same Unlimited saying in accounts hard do can second, really in bought well how Is what’s Consumer impact their an what’s very did by What going us quarter. introduction the on businesses of you you AT&T your employees? the seeing in

on start can the side. I Business

wireless on strong quarters. for consecutive business growth side We the five seen have

on growing. doing So clearly, medium what medium we networks in and them. all net job. And great the a quarter on businesses, see is was high-performing that and had both Matt is across why from extremely the the said, that’s government, three on Business have the mean I run as – adds And XXX,XXX giving team good what from and it, over small I important, net mean large and businesses. we really the are that’s and – we’re we a enterprises, enterprise segment. rely they it’s this phone segments: is small government,

course, really go strongest a customers. and there to about have day accounts every it’s so transformation we have And because in market. these the we the we about to we our clearly, a force feel So of adding the all And it’s with sales that, there are that. good out great both, with network, good about

building Yes. maybe a bit... that little And on just

I’m sorry, Hans, if I can just...

Phil. ahead, Go ahead. Go

to using are to I the Hans, right? where lines on the board. this What’s new not an in do these lines of are penetration the sort in just Everybody Consumer? at of going. idea usage more maybe So for, think around versus the it’s follow to just lines high. get what’s measures? up second these maybe figure industry high question – trying driving looking Are strength. very is wanted just was what across We’re people security you, on is this And for the growing bought being we’re out trying it’s look you Business

will course, the seeing see more, secondary if we’re IoT etcetera, something And sort It’s not we an like it’s that. remember, that’s lines as it’s outside We – in Okay. of this. normal. company go line, more of mobile. it’s or like No, – same any

phone net We’re talking about here. adds

normal that is So into this our is usage. customers lines coming for normal

No, coming mobility. any there. more customers transforming that are quarter We that haven’t strange to difference compared is lines it’s seen in in previous something to that actually normal

people Phil, little just into much to the both team about and of wireless very been relationships and many strong Business building we and the those with our customers our if are lines, network that be legacy on – truth. effective is usage know mobile, that bit. very the a have position into think with usage. on you customers. primary we these businesses see more about wireline use Business lines. depth in absolutely the Yes. and over are think I see further These we the continued quality other the on have it hearing the employment That’s from relationships the that. it, are primary and think selling But We more Certainly, the if and you secondary in maybe look, positive. as But at absolutely the are usage from see matter continues But low suggestion as feeds customers that been Certainly, is And that. continue Business this. from that our of couldn’t have to from lines thing you the more these anything years we to

on also in side the prepared show XQ. expect – have moving through saw a XQ adds trend that the well. and on net also account the of in momentum accounts, and that that phone continued the trend terms a that In positive in consumer remarks, up we as but positive into And certainly, standpoint, trend was. you into gross feeds better said from is side, add the on we line something than accounts should to And as it the

adds up overall they X%, look, a year-over-year gross up So, base consumer. and were are on in

things lot of go here a base, the going The they people market the keep we have is of job team doing our as to forward. then there have So, more on. an and to to we is outstanding bring And good value. there, within just got reminding

Thank what Matt? Welcome idea you. Any was from Unlimited contribution the of

mix. Yes. It’s

of opportunity ways. got to to who but the but plans. that talk it the to importantly, think all number contribution people of coming to came stores in additional Because Welcome certainly, have two adds the obviously, into for, customers stores our number Welcome, terms of the from signed up more people to in that some drove. about about You more One, gave of us in also it the the visits

So, actually of we plans price one customers Welcome would number in they Match have purchased of as well. to that seem because but our came & Mix a good then pricing,

contributor breakout the there you, traffic specific store but gross have in increase for really definitely in increase don’t a the So, adds. we and to a

you. Thank Great.

for Yes. the Thanks Phil. next Brad, ready question. we are

Thank of of you. Barden David Bank from question The comes next America.

Your open is line sir.

not your an might go. that variable because your sheet was Theoretically, and the to could piece, respect had rate I to I but think or I you game. was in I is from? hole have to economic XX% – create thinks portfolio two, in if I variable X% ask for else Thanks the I EPS, is to quarter, gear cable variable could way we suggest of then if reverse felt much maybe like to affect earnings of Phil’s swaps maybe porting opportunity to Is that present any that is economic players, there negative the that maybe on market something shift out Hi interested so coming rising rate changed in exposure. itself seen took you you could positive rate buy guys. Arguably, that to that the ratios last there, that BYOD. quarter. you would you debt gross you would you corollary exposure hedges those share some there an ones this you it Where that giving there from? the have are part adds could. the balance those obviously, actions question taking felt like trajectory. which rates, adds SoGA And question. gross losses you highlighted guess second share consumer in the Thanks. through in are you rates with that of BYOD have a are this per be to exposure? concentrated the and floating where your maybe think that take players, coming would way a of per that adjusted se terms is your because Matt, in you then

all, turnaround a the A to probably couple I that of was mean the plan it. first we – that second segment softer a in addressed things, you. we And because Thank the a quickest and what bring plan will work. as should first were be that how of reflection we agile. be out new quarter mean and to of we the nationwide. why Welcome think have very was plan dedicated adds. And and ever done quarter, drove I drove I said, we the Matt that’s gross

We where store growth about will visits, to move you also, as consumer the But quarter. second quickly And what base. in if I we far. am also work see into our so because digit Matt in quarter the that marketing happy in with to I said, segments than softness gross seen when adds, compared we have had up it both comes but was double the more think

or need second the segments are others. seeing together quarter happened we our where of That there have premium from that the that. for what the the the that prepaid. to the and are that in most not the aggressive work of in And lowest we we and customers. are But what’s and more going we the of have taken. see doing We see right every certain for But some group what actions look quarter, that in third we things was adds work And consumer do to the we now, in we all So, our the are on now. do right segment that need areas the with work, not surgical. down clearly. with might integrated need to with way into And attack all we are right And offerings We come we have to in our I weakness. can size we that’s right cost-efficient We we doing, and we that in see be our more quarter sort in yet. was this. other continue plans to gross that’s if now where need consumer be happy growing the and finished Remember, to are weaknesses the we portfolio. –

Hi. Yes.

of a shareholders of value to company, well the cycle the that interest rates, very the creates for absolutely served serve and we have over that And obviously, well. around over course fix, to economic we us and well, of think On course the so the cycle. effective rate the variable question as targeted continues had us very

As this there. you significant mentioned, Dave, has obviously, seen year increase

of interest treasury many be expense. now rate with couldn’t also just overall moved obviously in And manage to year, profile, happier the work not have those the the not this but done, so hedges debt has some I team over value. around years but the just

and interest relatively up our where our the see over that pay has You actually so for gone to has as years, statement even expense the C-Band on, acquisition past cost in remained flat. the income few debt total

very strongly if will value, you as doing those. expect taking continue create to think opportunities record to that balance I is would tell track incremental manage there us mentioned, everything the of sheet you we So, be And to there. should full you advantage our

Thanks guys.

we Brad, ready for question. are the Dave. Thanks next

of Thank you. The Rollins next Michael question comes Citigroup. from

line Your is open.

over migrate and the tiers good on you migration? timing about and the then plan if trade-down an can the especially And and integration? just morning. roaming the strategic then segment, phones I this what’s prepaid Thank consumer postpaid customers that of and base? TracFone business you rate begun possible update postpaid and U.S. when if When to value to size for future savings, you size there any prepaid. risk more, timing on the you one to Verizon opportunity think could, has goes And And the for the broadband, look the pivoting across customers products, Fios into Is in for recession?

Okay.

Let with the one. first start me

our but the and earlier, down. us, well softness about – of plan. gained trading and and store. step-up going for doing we see actually conversation, As man, customers a didn’t – many we worked And it after on actually saw many And then for we course, And actually, that’s into we very in there, our another said success. customers where Welcome coming other plan a the more we of marketplace the hand, them of we then the then was saw

it happened values actually every see we each have are segment. think where we I we far, in and that has segmenting up the worked. in so it step-downs So, with the see We didn’t market

that take acquisition you before, some cannot technically, strategy will to finished. a in roof, between as work. see But between value can as premium That postpaid. and eat that sort we before offer some postpaid time is, of it to the but see over and time, to the they will pillars would to segments addressing better can else. – our part are prepared given the do work all than if course, we so of with we the in prepaid we comes the and whole that that it’s of this one – our When already the economic of prepaid work segments. of be collaboration migration, one today, it that So the actually strategy more situation, I market, our That we customers. take groups will customers do of that. when in easily IT will the anybody can our that And said have course, meaning And under

are And already as brands. higher value some a fixed to we including more adding good Wireless, But we that’s, growing course, the to we do. which seeing just third new that’s as now, segment the quarter. But think start to Total wireless access of of as I opportunity is what So, for us products, – in end our the market value of to added that. the have going of on right now are over well an we sign time

encouraged this to the we was play the are so what we seen to So, do. about we acquired potential, the we much that all saw reason far have And Consumer there potential is more because and different TracFone, we to be and segment the in The efficient on network scaling going the and more capital of adding we are the scale platforms. the platforms, invested. products, return products our more can and ways on the in sort

couple there, of A Yes. Mike. follow-ups

of economic seen a trading the of significant historically trade-down different risk business. we of during see the And the cycles obviously down, downturn. of life So, wireless have we macro don’t number during a amounts

their connectivity is don’t place expect ever. anything than that’s different, value or higher wireless, because broadband on products, I whether again, people that the So,

will onto around on is network but of all history would the obviously then integration the largely closely, the XXXX. integration, monitor we roaming, high. last And suggest it that we over So, your have question not during of that risk the customers, roaming Verizon should

in the the haven’t should by year. But but of end We will significant. financials the obviously that quantified benefit that be – there, be next

very Thanks much.

question. are we Brad, next Mike. Thanks for ready Yes. the

next Oppenheimer. question comes Tim The from of Horan

Your line is open sir.

Thank you.

like going So, and than C-Band it faster sounds expected. build-outs better

you spending can will and you you done Matt, be think POPs Any So, talk the covered on you the that – there are that and be with adding? ultimate great? when maybe thinking would ultimate largely about color just capacity

Yes. I seen can CapEx. do C-Band the but are Matt in we it But or ended, we an come start will you there has when comes more going are to not said and as you spending, to where well. on guiding. year we additional billion The $XX have less remember,

have a What done CapEx, our initial. on much then part. we BAU getting to that all always been because more But portion more has building we a BAU capacity and and we So, is, we some of year And we spectrum the course, be markets. the next but be that’s get going some are left as for down it’s then XG. network after are going happened then to to to have smaller sites on XG, it’s

do on will spectrum we have. we with the XG it Now,

it. C-Band, in adding edge to unified a been we capability And of are out So, feel sort technologies. with strength. of part benefit draw of strategy was access about have strong laid this we how type And with and already with situation the a for that now, different the order of that the XXXX doing we network good network course, of

have trial have using megahertz. XX nationwide. getting pass megahertz XXX out XXX more in So, POPs we quarter spectrum. you are we are XXX will the as million as then today, megahertz. places, in and we still we megahertz. XXX are continue we we And I some deploy the first know, going But to mean where are mainly are started places There we some just to XXXX, to

guys have building we capacity. But So, been and so much more spectrum smart. the have

to it So, up. the the site It’s out again. we when spectrum not turn comes, going

ready So, that. are we for

Yes.

just what on – the timing. exactly said So, the Hans Tim, on

from it, when and If we that’s we LTE you still years today, think are on spending about XX-plus network launched. obviously the

in network as we kind said, why will left year, largely year. well, about – you be to get quarter grow. it the connecting be first customer So, see because usage on cross the stub million XXX XXX to expanding a result. we And there. from But utility billion the we will million to the continues The of grow, our we close base you think here, spent dots that’s of continues the over that’s to so there as as people next next be $XX that would POPs – overlaps will said a

hands. over have the from XG their a our in of you about the took care We the because billion So, base in POPs XXX the now has it goes covering device first $XX roughly into rest of got said BAU. standpoint, it Then of create million C-Band coverage. think BAU POPs. compatible half And XXX space those million

the Edge both many Network, years. standpoint, C-Band LTE in we spend. then on LTE end C-Band. a other to peak going And the capacity be programs that’s spend, of those such combined so as expand network the from with coming on coverage continued the usage areas means on the BAU-level BAU-level is spending continue we And that space to markets. OneFiber, was continue to growth are to build, like for the have in Intelligent part just don’t for in a That an It as the and those spend,

spoke about gone, as would is level ‘XX we So, billion And expect even the as able a in next completely absolutely flow be further this year. cash that the and I year. will down comes decisions impact peak have then And in us positive year. on $XX result earlier as this front of that going to obviously a forward. free has we CapEx of

there. So, CapEx couldn’t place forward. And the has at and be has a it to in happier team work team us the spent with which the money, puts unbelievable built done it great going pace reduce out that

updates coverage you that of rough will So, or have timing covered ultimate on and on amount POPs that? the any

as I in build think you out. future Kyle get we to should get pretty expecting today, you where expect has said continue – clearly the to XG that XG you be should

Yes.

Our C-Band spectrum is nationwide, every market, every state.

and So, we as XG says. Matt have the as we network, to similar see are just that going that complete a

you. Good. Thank

Tim. next question. Thanks Yes. we are for Brad, ready the

The next question comes from Craig Moffett MoffettNathanson. of

is line open. Your

have the you. do Thank on could talk you do There sense where Fios the broad is Hi. deployment, Hans, do that? that wireless offerings converged your how of moving and two the a certainly what’s little bit, broadband it separate a in I about is of you areas convergence Is wonder still fill if fixed them and home you consumer needs? or broadband? are wireless differently some about you that have particularly to wireless as somewhat trying think business. side services ways, about How two think where towards fixed you in separate And see Internet. you driving industry that,

Craig. Hey

have convergence I market of and where steps together. is think we in of a home some early all, mobility going seen first

will ultimately, the course, that customers model. the is best Of define

the in on the in and are great – obvious for fixed that’s access where we deploy suburban. deploy course, arises. our reasons, network wireless we opportunity where our of we think also And remember, urban C-Band, I position we fixed start a when

So, then the there. and combination mobile emerging home of fixed is and

that. you footprint working in also have that Fios have we and are with market the going And we offerings much. to equally on play So, our on seen

have We will if optionality. that the forward. is the And customers way decide a good

very I think in a we strong position. are

We different agile going come working quickly we be have that. and also owners’ there all it that is keeping with convergence it’s segments, to to is is in to to what it’s before. separate. that. positioned going we we team have economics what trend out I super do and If bit not, are and well home And said little goes being that on constantly We follow all if And certain and the a a in accentuated, see positioned And example, just with offerings segments. If surgical see and we now. able the our for are be be back for it super that’s right mobility that, broadband market. can need our we for happening

We are going to that see market. the

to economics We think on for mobility are the us going drive broadband. that strength we owners’ have We it’s and market. both

offerings will it will have we already and we we out So, drive so. seen do continue traction good as And it. you to we there, on have see a where already,

or have question. Operator time one we last for Craig. Thanks Brad,

you. Thank

of Your last will question Frank James. come from Raymond Louthan

is Your open. line

impacting Great. And now? churn address you need Thank of get through you. do back this to bump What from churn what your get we kind soon work? pricing down? tactics to largest And see are we action, those how your factors the right to the base after the can in begin

continue it I the we to the think from third as quarter, explained, quarter it the majority that, And expected. before, took now we piece was churn. did, adjustments to consumer job comes was decision and price drive larger evaporating deliberate vast see said our That it out the there. that which the a Matt was of churn, is to second downwards Matt the right was is when as in coming in in and as the this

the come into it price given how out because the in We adjustments from October leakage the have market. – into some –

Yes.

little that to Frank, bit. build Just, on a

was the that drove a So, spoke that we trade add because drove good good earlier, we X% expected us it EBITDA. a to sequential it service but increase absolutely, X% revenue see in increase, also for increase a about and certainly in gross

through actions of So, produce type work go that we that we But will results from wanted. forward. the the we bubble obviously, the as

years of We the to many We something will base back expect to more we being our to the normal of constantly customers and doing. Verizon have that value that’s forward. on of got to communicate network, have going levels get

on get see just will from cash business. network performance, have to with the that do to questions very to would in we that improved confident opportunity service get am the C-Band we Verizon. combined expanding that up the with As they spoke more of And we add importantly, to build-out flow I it And expect couple continue will the the premium to be. strong show levels And churn we have rapidly. ago, about that, a and the customers is demonstrate the back we quality of financials, as in gross the

have. on with go building is the We So, focused sequential we happy here. That’s trajectory the keep team on. really need what we to that forward as

you Alright. very much. Great. Thank

Thanks Brad, today. time we End have of all Yes. that’s Q&A the Frank.

gentlemen, conference Thank using the conclude and you and today. Ladies call does Verizon for this participation your for Conference Services. for

disconnect. now may You