United States Cellular Corporat (UZF) 6 Aug 212021 Q2 Earnings call transcript

Good day. Thank you for standing by, and welcome to the TDS and U.S. Cellular Second Quarter Earnings Results. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to Jane McCahon, Senior Vice President, Corporate Relations. you. Thank ahead. go Please

want websites. Good our want thank and sections very Cellular to and can have the well. that Blue. of on all us presentation find this the best for the morning, today. of U.S. you we I are families We send to your Relations make morning, you, TDS you you aware accompany and prepared joining wishes to comments Thank Investor out you our which

this including Cellular referred and adjusted earnings Financial Financial their With income President Please offering President TDS, being Villacrez, before TDS Chief Cellular's and amortization, OIBDA; and Cellular, and wireless is see Doug me Sereda, taxes, Vice Financial operating Pete TDS Therivel, Officer. Officer; the LT or simultaneously reconciliations. We Officer; on U.S. depreciation U.S. adjusted slides webcast websites Vicki from on of today and Chambers, Chief U.S. Telecom, amortization SEC to highlight before websites. U.S. are filed EBITDA, guidance call, comments This TDS both non-GAAP and prepared and from Forms this or contributions Relations and Cellular Executive Investor partnerships. from Executive President the then yesterday and Vice call President Executive Chief Senior morning. and to the Vice press Chief X-K, for we for and of depreciation Finance XX-Qs provide releases interest, including filed Officer; our

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

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And now Pete turn to call Pete? the Sereda. over I'll

good everyone. Jane, morning, Thanks, and

to taking Before to businesses speaking both stronger and about lead all the strategies, the over business that I to recognize sheet our our and funding the units balance are wanted several returns higher next of actions years.

Turning I to attention the to a call want unusual to of income items. your statement. couple

from recorded quarter to our write tax First, of an this rate of issuance some we which additional reduction higher-cost our during negative debt to the was expense, of $XX prior costs XX.X% as a And million tax interest Cellular. redeeming part due the million certain accruals. was primarily at noncash off $XX in U.S. was bond of debt, transactions. unamortized And effective

strategy. one discussed financial of of on the is flexibility corporate calls, maintaining we've As pillars past our

have resources the need levels, relatively maturities, facilities long-dated financial Over credit undrawn years, sure at fund our we time, the we've revolving balances significant cash worked low businesses. to we same making leverage sufficient the to retain and while

cycles, TDS ample continues available equivalents solid and to sources As investment Cellular and U.S. the currently investing credit XG cash in is investing expansion. network and fiber since spectrum; financial the in which especially aggressively you TDS Cellular and can of facilities, at including in and Telecom a both Telecom position, cash consisting see on with important U.S. end Slide funding quarter, TDS available X, of monetization, maintain are second

continue investments preserving rating. credit look these to while will innovative finance ways our to We for

Slide attention to your I X. financings. all done has our also cost the that wanted to average the lower to Turning of call been work to

redeemed the notes. earlier a U.S. the U.S. Cellular Cellular TDS' and rate week, shortly in the of both this fund coupon the and June by this and you after with TDS of additional a our were redeemed down with redeemed annual run And $X.X transaction As on to million of we senior announced that redemptions affirmed family X.X%. we of average billion. notes, almost total raise average can in a through this then earlier million weighted U.S. see, debt announced but downgraded over week, remaining XX, drawing results the amount will $XX planning This $X cost by in $XXX EIP rating high-cost an over senior Moody's Also notes. on billion we've calling savings to corporate debt cost with it X.X% securitization, and replaced debt. And of Cellular

The the notes, the The company lower EIP the steps the just in reason to notes of right ahead be positive. for to credit on as balance the is recent comes new fund in those the views to not this that Moody's downgrade downgrade cost remaining of sheet refinancing will to taken payment. of reflects the the debt redemption general. fact that specific

to that are believe average have growth financial to business the opportunities, over call time, at turn will are a LT. finance lower and cost lot the them. I now we the ensuring resources of fund to the sum, them while we LT? both units to we we have continuing In same

support everybody. joined thank the the for that includes away the been this our Cellular. good and the I a since culture over want company, to I and the about U.S. be input morning, of I year. to Thanks, and continue on Pete, at with It's year stakeholders, and team all blown the everybody call just and past

Page to turn we If X.

designed priorities. I'm they're time. going thoughts and simple and over improve of good year, return the remain financial Doug drive these a priorities. and towards and really capital growth operational while about these on making I'd on highlights to priorities to let the we're progress provide We're like to quarter, cover the couple second strategic of through the halfway strategic Our

top on new mind on, results Doug of an promotions touch for and me And for aggressive as some right the existing is We've the postpaid now seen both quarter. environment. customers, had subscriber will there it impact our really for competitive out and

between strategy profitability. on We help different hone right growth offers are focus test us to on the subscriber profitable and growth, maintaining we're our focused regionally balance leveraging to our and in

upgrade-focused resonates this believe in aggressive regions we our We're work with of We've you of to prior is right to I season we but approach have in to about and the main than talked calls, so more offers approaches ability this I've see drive benefits switching how And now. to see offers approaching what the one certain going year. different get later customers. continue to the to the we're when right having with test the markets marketplace selling very noncontiguous got some others. these trials that this

segments. growth but prepaid confident results last about really some to initiatives prepaid signs. The beginning I'm changes this business which longer-term in quarter the there, a and We feel prepaid growth I some offerings our our drive spoke the of government ability made are segments quarter. effort, networking space. see drive particularly IoT to encouraging in in and you strong government to and I our to some new led business and to our to private

continuing So our a leadership have traffic is few deployed Network our and words is helps of on our multiyear modernization our it proposition. network and sites program XG this hallmark the now maintain by The XG of deployment. value costs. network vision. down We're also carried our majority brings network and performance our that our

spectrum optimistic We of the continue be wave to fixed access. for use on wireless millimeter

capacity tracks achieving on That rural partners spectrum, a market another milestone And of and potentially speeds technology we more near of The kilometers. of extending XX more with gigabit even wave massive our expectations. X using millimeter over world areas. on our extended-range recently, low We're to millimeter bring our our record with and exceeding distance continuing footprint. X XG can been service frankly, X achieved technology includes work, most testing, working is We've distances. on demand. XG wave This latency

the wave customers the millimeter demand we're XG early in high-speed marketplace. and On looking the trials providers we've our to alternatives in encouraging continuing that seen some Internet are clear for our market side, It's current very areas results.

proposal. that the proposed briefly funds in companies other business I'm legislation, of Washington. legislation That by have infrastructure don't on roundtable critical encouraging passage in be bit for that and to those infrastructure aside the requirements divide. To I encouraged of I'm funding for of just infrastructure would specific, both disaster the in are funding bipartisan I'm affordability, encouraged and encouraged a speeds. recent more progress Turning to symmetric be both join going rural the the efficient sets broadband. the bridging made for digital particularly been require

hopeful, could network and politics funding both that And legislation for and compete am and infrastructure fixed be build-outs includes technology any hopefully, allow those partisan requirements first. America Americans this I wireless to that Asymmetric avoiding example And funding, of and an wireless. mobile helps cases. putting use

we'll and positive field, Finally, to vaccine, more had the in the maintain I with few to recently person. past momentum talk the Hopefully, progress can rollout talk opportunities vaccine continue the over to associates on see so customers the in of to out the get stores, visit we months.

really job the have in keeping tremendous network just teams a the and field some circumstances. connected been challenging stores our customers Our in doing

balance the of our productivity working hope Personally, certain focusing of interactions for be return-to-office announced person. just been lessons members strike We'll pandemic. portion looking that the in also number we the more of for the culture of team for our will We to a purposeful my I'm acknowledging very in-person days first instead acquiring between And approach. in time learned just time workforce this has the reinforcement and meeting on the while office. from forward right coordination remotely,

the going that, the with I'm quarter. it to details to you turn And Doug, of to over cover

morning. Good LT. Thanks,

a Slide start pandemic. higher of customer results on gross due year unfolding to a the switching as Postpaid additions which X. handset XX,XXX of result Let's by year-over-year with depressed was increased last activity review

on to due flat ability to aggressive handsets. activity remained switchers industry-wide Our attract promotional year-over-year

This by COVID-XX. we watch year-over-year. of additions additions demand saw in partially in was hotspot X,XXX experienced additions. an products, sales and tablets, by driven connected prior in connected year decline gross an due tablet increase gross offset hotspots to to the Internet were declines device lower such compared gross The by as increase We when and

feature increased helps to phone That ARPU. smartphone the over service and than ARPU the connections XX,XXX given about smartphone quarter past course months. drive by by XX that the XX,XXX $XX Total more during is of higher revenue

our changes Additionally, I out to were prepaid which offerings. our want call driven to by prepaid strong results

base Our gross prepaid decrease increase increased with XX,XXX defections. additions, an combined to in due in a

the for devices competition. Postpaid X.XX% second year periods as was disconnecting churn churn, the which to Total Next, churn up XXXX. a was increase have year-over-year also churn, government postpaid than ago I on postpaid a shown higher voluntary certain from aggressive at switching of devices depicted driven industry-wide the churn, business want customers combining of ago. X.XX%, handset connected by bars, pandemic were rate we during Slide result handsets year comment on in by due was quarter activity and XXXX, peak to activated X. connected seen the devices, and on that a higher of and blue as This X.XX% continues run to increased the

in year-over-year. to increase turn revenues second Total XX. $XX which increased service billion, as million Slide was higher an operating due per The to by as Retail I of $XX $XXX the average will subscribers. for $X.XXX in million. revenue financial well an on a let's increase million to Now postpaid quarter user, were X% a discuss or primarily results increase the average revenues moment,

was data roaming $XX revenue was driven by in and volume That Inbound decrease rates. decrease of year-over-year, a million. a $XX million

T-Mobile's Sprint this data to decrease merger is of the roaming the contributing to T-Mobile of factors network. and traffic the of Sprint and volume migration One

$X a including year-over-year, in service an $XX Other revenues. rental increase increase revenues of tower million were million, X%

an the sales revenues during revenues on Finally, of by large offset of revenue increase increased activity competitive of increase sales by loss in revenues promotional and to equipment activity. of sold a represents We industry, as quarter with equipment engaged a sold. in promotional equipment aggressive $XX result XXXX the in less equipment particularly part decrease which an to equipment, increased the volume, result the year-over-year in in promotional switchers. for and million costs partially A second cost an resulting due reduced remain increase sales average per portion of a higher accessories sales unit as in units

the less by pandemic, on loss activity. addition, gross the second In lower aggressive impacts equipment quarter mitigated specifically was promotional of XXXX in the of adds and

of As change primary to $XX combined a the of of in in margin in equipment was $XX the positive equipment increased million these a result factors, on decline loss a $X impact million in year-over-year. This on from profitability driver loss loss equipment XXXX. of XXXX of our on year-over-year million

expect We environment year for impact. persist promotional financial the guidance the and corresponding XXXX full of reflects to aggressive the remainder our

revenue The by primarily offering a year-over-year. were for approximately in second postpaid XX. in Slide revenues, revenue grew the year-over-year. about the an to a during in few comments overage user in average protection and or increase up an connection more or favorable were X% Average an was account $X.XX and product $XX.XX mix, on recovery X% Now or regulatory which assist and increases X.XX% device COVID-XX prior per revenues, increase customers shown by On driven plan pandemic. increase basis, year revenue per the quarter, waived

Turning to Slide XX.

we and is As our add incurring technology remains towers control sites very ensure equipment network our changes our XG of to maintain multiyear cell current make critical. important, By and towers, additional our to our we other given which continue flexibility owning costs, new the particularly modernization without evolution. operational rollout, we

of in slide, rental agreement, have with revenues. As assistance our tower can we growth see you on steady marketing seen third-party this the

As second increased X% quarter revenues rental mentioned, year-over-year. by I tower

from We will revenues growing assets. continue focus to strategic these on

Moving I'll keep refer XX. depreciation, To as income. adjusted and before comment this to accretion adjusted and things to to on want Slide I and operating operating income losses. measure amortization simple, gains

a bottom year-over-year. the million, the operating at decrease of was adjusted of slide, X% $XXX shown As income

billion, commented a earlier, year-over-year. $X.XXX increase operating X% total As I revenues were

million, Total expense increased cash X% expenses were $XXX system million operations or X% year-over-year. $XX increasing year-over-year. Total

operations to or expense system X% million offset expense Roaming rent roaming resulting costs Excluding lower roaming circuit X% sell-side and expense, was usage voice by while day higher $X largely expense. lower higher due rates. increased and maintenance year-over-year, by decreased from

due and or volume. administrative year-over-year to a of sold $XX equipment increased sold sales increase million in increase fund associated service is federal and or million projects, with driven revenues. of Cost Selling, enterprise year-over-year, higher as result XX% system expense, by billing X% which expenses an in an fully primarily in increased supporting accessory and costs upgrades units $XX universal offset general service

of operating XX. or a from Slide adjusted adjusted starts and X% and on touch with earnings Adjusted Turning the to method I'll $XX earnings EBITDA, income. increased X%. quarter which million $XXX and decrease million for dividend equity EBITDA the with along was entities million, year-over-year. interest our incorporates or income unconsolidated by Equity $X investments, of

to XXXX. want cover I year the Next, our full for guidance

our showing we're comparison, actual For XXXX results.

For total our billion $X.XX billion $X.XX range unchanged. revenues, remains of service to guidance

we billion, maintaining million of and million $XXX respectively. EBITDA, $X.XXX $X.XXX $XXX to billion and income our are operating adjusted to adjusted ranges For guidance

this for of of the continued earlier, mentioned environment year. the a our expectation remainder competitive As highly reflects

$XXX we million of expenditures, category. capital we range by provided our and also For $XXX million, are a maintaining guidance breakdown have major to

will I turn over Vicki the call Villacrez. to now Vicki?

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

to with the our our second and pleased tracking we of through are the half the quarter am and financial year, first for I expectations. results guidance

since our planned we top continue growth We the broadband XX%. was grew strong start as that average line to strong driving residential X% XX% per of of take in be revenue notable Also total growth investment to of speeds. see quarter, market broadband during prior caused X%, mix total increases connection new quarter the grew revenues has residential pandemic. product We than our EBITDA lower on residential the and year. growth in spending adjusted Overall, price while on accelerated the revenue launches higher customers

We continue tailwinds, increased driving to strong experience adoption. are which broadband

federal broadband growth. in is For population driving strong and most driving markets example, is support environment for attractive bipartisan more opportunities and continue, state our work-at-home household migration

footprint the quarter, strong X%, household our During across market. grew we growth total organic our increased which

remain priorities committed have years. Slide We been the several to the to on focused for XX. strategic Turning we

objective As growth investing our services. in discussed, to broadband primary is generate by previously high-speed our

in growth constructing fiber in targeted greenfield We have includes networks this approach and leveraging multifaceted that a existing locations.

market, that in invested very where have And markets, incumbent achieved share. we We are pleased our we've we fiber preregistration. are strong superior in seeing market our expansion in customer

A-CAM more incumbent to building utilizing broadband addition, meet and rural In state our obligations to we our in grants. faster by drive speeds continue markets

On X% offset video telecom grew existing our as in broadband and and Slide in and continue decrease the new connections connections. markets. a quarter growth fiber new we with broadband due partially X% to residential XX, into expand residential voice total networks fortify markets, in residential by connections Total increased to

our track in Overall, network program, a mix higher construction residential also on increase price to revenue in A-CAM helping are under in drove per our We the markets. and growth average drive X% increases connection. value product incumbent

can On the see Slide you growth all broadband connection markets. XX, across

broadband focus generated total has increase connection revenue. fast reliable on in broadband Our a service growth XX% residential and

to taking this up defend are customers where are areas both product speeds offer In total now is and of We including to an X X.X to markets offering our in we win new X new market. our markets. gig we important superior our footprint, us XX% X broadband seeing gig gig allows that and XX% of tool product. service, customers fiber DOCSIS The to

Turning Slide XX. to

offering. growing with success, TDS broadband our our augmented have TV We

Our [ ] market next-generation products, experience churn. up and customer broadband our video the ends help increase to share bundle us viewing platform enhances and the reduce

nearly of important cable X%, to growth market. driven remain continues our losses were Video. customers. Residential video expansion Wireline by markets, the Video to connections in flat. offset nearly our

connection markets IPTV XX% wireline our to every video -- we experiencing our our rate half broadband half are we that's across where footprint a footprint. attachment nearly in and services, example, For wireline offer wireline

the TDS increase to this of our product TV+ is through total operations, our product. strategy connections cloud-based currently including markets. Our offering rollout our cable of XX% covers video The of

XX. Moving to Slide

and continue fiber strategy We several over Telecom on it very way meaningful to how years. the next very transform be our bullish will a TDS in

several participation expansion the therefore, build well opportunity our existing heightened as of number the level Given has We, of this the our overbuilders, attractiveness increased. of sense footprint. other next to within urgency as expect builds are the upsizing we and fiber our increasing of markets years by over

we addresses naming markets any guidance. and the our this number sales broadband to long-term best and not is we specifically deliver within to launch We most reasons, markets experience. competitive the are after economical, spending plan the and or For publicly. these additional additional of is sign premarketing efforts our agreements service the yet, year solution well construction announce Fiber

refine selection our to confident this continue criteria and We market highly are process. in

are we to which turn let's new expansion multiyear year on expansion, progress markets shows Now fiber into includes which Slide this our making into XX, incumbent fiber the also footprint markets. and

strategy, As is This by to XX% of fiber. total a addresses service now up our revenue ago. is are This from driving addresses. year XXX,XXX a expanding X% wireline the of this footprint, wireline XX% result while service served also growth

to XX. Slide Moving

actively in announced for expansion addresses to fiber and our we in Valley, markets into XXXX. working the that In quarter cluster. We service addresses service our second service construction, clusters to recently total have the Spokane out are through Washington, Spokane highlighted by XXX,XXX are fiber these the the we build in addresses of marketing. XX,XXX service adding are We and announced footprint XXX,XXX completed addresses plans total, the to

our complete launched by fiber substantial delays year, impact the we'll the back portion seeing the our cases. service half to a XX,XXX progress in XX,XXX the completed of business that is still our continues addresses, year. The plan. is of and addresses we adding than putting address construction are in confident we fiber meet but ability slower deliver goal end planned of Year-to-date, to exceed are on markets our construction XXX,XXX could we service of the pressure of our service quarter. on or delivery This Performance of addresses

we to We construction are with manage also lengthening demands customer continue suppliers. equipment our and where seeing times lead proactively inventory

We will year. you continue throughout our progress to on the update

which in X% XX% On of Slide driven revenue markets. by XX, year-over-year which revenue in includes total increased the strong revenues $XXX to million, mix, residential contribution total. highlights the chart increased The residential our increasing growth largely expansion

showed residential the residential impressive of Incumbent increases growth connections partially broadband connections. within in in by as voice broadband as well increases wireline due markets X% X% a to also offset product from mix, decrease

due declines, $XX decreased as market. million revenues, increases decreased grew impacted reductions CLEC Cable And revenues X% primarily residential to in special X% million access the be to Commercial continue $XX in XX%, incumbent to connections by which to in product well revenues as to due mix. broadband wireline the quarter. in wholesale also

up combined sum financial me quarter. let the results So the for

revenues in as shown on growth due into from our reflected in yet the XX% exceeded Cash increased markets, year fiber total expansion growth our XX, X% related subscribers revenue. current from broadband as as increases our well is future expenses increased prior not As our to business. expansion both to experienced which the spending Slide in legacy supporting new and we declines

as technicians Future growth. and include costs support in direct new estate real shared market necessary sales, costs service to costs addition marketing, market to such

$XX as as planned. adjusted million XX% X% to last EBITDA result, from increased expected. $XX expenditures year Capital a decreased million As to

and continue for customer fiber to installs. our new success-based deployments increase in spending We investment

On beginning Slide guidance guidance, XX, which at the is the unchanged XXXX of provided we've year. from our the we shared

ramp fiber capital to guidance second to year the execute expenditures expect within expansion range. we the in and we continue up strategy, expenses and end expect year of the the half our as to We on

Telecom. for to I success of all want gratitude dedication my to express to associates the their TDS

product your a are you. hard results work. of Thank quarterly positive Our

turn that, I in -- you now over And to call to forward to the look like And the updating forward quarter. with Jane. back I'd I'll third

we're at point. questions Operator, Vicki. Thanks, this ready for

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

been you start there. to the side. on you've it's wireless as since a want year, out, been point LT, I

seeing return help on you're capital could your things growth U.S. on early DISH thought of and make kind partnerships if that And could deal announced revenue you look what cons bit and pros at as Update One out the AT&T on might partnerships there that also what recently? was on and was kind of opine objectives. you maybe sense? of a the Cellular's the are us that mentioned service little you

Thanks, Ric.

Let me start with partnerships.

think X partnerships costs of and I partnership in ways, revenue manage manage and more to partnerships to capital efficiently. grow

think On we with it's -- the business side, revenue these way to The forward of about moved partnerships. a number is lot just are a kind small. of across the these of

on So we've as right, to example, forward an stores substantively local our moved just path our new over dealers.

Our has our and grow share co-investing we signed share benefit. cost, retail them we're dealer with a organization on can the so of new the number footprint, partners

On partner solutions to side, guess to to solutions one Geotab. them, gives and to believe partnerships Geotab the excited it's our We're example the new we product is I growth margin. we bring announced another and obviously, I number just signed business customers us yesterday fleet and sell of business. around best -- bear. in fleet management of one with business growth a the service. to a revenue

infrastructure side, time. partnerships cost side, the On those take the on

in We a different the DISH at We a have get are colocation we've example there's business. potential we we've pivoted previous -- discussions. of our we right? partnership, customers. to business signed, point talked I serve took is this I tower interest, our which about won't too think tower I'll just that pretty a variety detail -- unless I briefly good much our really so in MLA calls, but taken in of and

us the how more but is about going DISH. We MLA bullish One our of drive importantly, drive them. that, an on signed but assets. revenue, of I those get is that details with help we're to utilization into can't better both

I So that feel the good on those we've with about partnerships. path been

I more to think come. there's

ways to growth, expansion. revenue share good to investment, look continue We margin for share share

opportunity lot to do so. we think I have a of

pivot me to Let AT&T-DISH the deal.

that. about deal. been asked about written a lot You that There's

twofold. take I think is it my on

got network. to has build to The relatively have build-out aggressive that They've going hit. first, they're announced targets a they national DISH

And to them so for provide supplement partner subs. build-out their order try to to logical a it's them and find for pretty coverage that to in

a from entirely And it. so DISH do to perspective, logical it's

know obviously, "Okay, for shoes, perspective, me, I'm AT&T's I AT&T an So say, to if don't would it's the but not I do someone sense deal, else." From to in be it's details the it AT&T if of going it. makes

create for work does us, to opportunity network, where with I both side, bring to And out think to right? builds going of advantage the an have coverage capital cost, That bring that if they're opportunity We not. we have AT&T their us provides DISH take can sides down. capacity DISH. on think build our I to flip our out

so think it think I and Cellular. creates U.S. I sides both it's logical deal, And for a on opportunities

side, technical side move you out trialing couple a times you to launching? about Makes U.S. what -- trialing move do talked and choose touched think on sense. you And could of addressable do market Cellular? And sort It actually Also, wireless the you fixed of access. you there? seems why would there demand when somebody market you're the like When and it from now. is

a productization perspective. broader if announced expect generating for I certainly, from date go them so have a this to trials the be seeing go next opportunity some as product that market, a we we us. meaningful year, So we're launch But certainly far, by in haven't the

the case and to bear is is there's fiber expansion. where the exactly this. that a case market case bear we're of The question substantive is trialing a bull opportunity thing Your because

In -- a to I to meaningful it municipalities is inside as consumers, at what capacities product and promise, it's that but fixed is starts large. is being move to for it's what out, of a that and satellite and moves is from best, meaningful, opportunity moving right? still fiber So delivers think meaningful now, coupled that a from with speeds world, not meaningful currently, which truly the solution ultra-rural wireless

that path alternate creates which opportunity an And broadly expand the rates is initial not market that us. on expected. are get our promise that. and of we've capacities. and are can't higher from just a that for ultra-rural take is into lot I'll I forward what I municipalities. tell future but speeds of indicating fiber remains There's you had And what does the pilot future Satellite programs than details, is a today, trials it

tells for perspective. are that a other that are alternative to an and solutions are to alternative is for there rural out the eager from What an me cable eager customers that

provide And just call a rural so think can not suburban connectivity areas. home in for areas, alternative that it compelling I wireless, broadly, but really

that? world and pick we're Cellular than providing anyone setting think rural And there's have, America. for records in we to are of Well, should an we where that alternative as then of technical don't argue trials, I better speed in connectivity U.S. the our terms they why terms I'd that

the do offering that And we're the our once finished so I when have which think driver's by comes it solution technical way. we'll with trials, customers with to to be more in the seat to productization,

inside how the example, work? on have taking and does technology trials to getting home, getting The external antenna proven technology about think an the works, for on. that signal a the Then out. the propagated So home, it so

way, year. at course optimistic certainly be market compelling in the I'm it. speed, starting next I and TBD, will least current about Timing, So in but a think it

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

you LT, of talking roaming about impact and Great. merger. Sprint the the the were

to traffic the opportunity can And that roaming forward? where the of of XX% as network. on T-Mobile be and well. color moved we're business that from think would goes we fair troughing DISH it kind grow with here that perhaps as here the you that I go Any great? onto Is think

next got Does L.A. expect any the the partnerships there? wireless given outlook to spending on communications And on C-band auctions what then over the for investments, the the years? and -- any couple you distributions color or other of better have on

Yes. Thanks, Simon. Good morning.

merger, our revenues roaming roaming about inbound our legacy the you've part with with and right Large T-Mobile yes, the is on Sprint of Know XX% So that roaming that to over that Sprint of revenue. seen reason non-roaming traffic represents, network. their Sprint decline. now, migrating

for that be and front more not over to something But in and we'll of with remainder revenues. project we that's roaming away center you and a the will opportunities revenue for there's and are do that's roaming mentioned So And that going going there That forward. there, trajectory lose that DISH, said, declining that's sure. time. the of of be exploring XXXX one lot out them,

and Moving on the partnership L.A. to distributions.

in was was we year, operational the expect distribution beyond first XXXX. it distributions forward, received distribution due XX% And the we visibility within in and we And is partnership. U.S. that our primarily about of what was going that future to to of what second have no the half, Our close half reasons last that. in for the the expectation

expect I the think trend to continue. we current

of knowledge spectrum respect any that could change with no assets arrangements We that. other to unique or have

in That said, we're partner distribution. that and control partnership, a X.X% we don't that

So if aware no with to of. are of have the But Verizon now, we decides that. live changes right we'll path that to then distribution, changed significant that

business -- benefit roaming, the what on there with sort And is back volume seeing whatever? still people are so the to is that as Okay. on and are we Or of returns -- COVID reopening normal forth, travel side, some just there or levels?

Inbound yes, carriers reducing and their just our there's to that's -- going volumes what I such talked and some that. and with about XG as other volumes are with down, X Well, traffic associated traffic. sides other roaming,

On totally side, outbound different story. it's the a

outbound side on QX-over-QX, usage expense those increased down negotiated while on And way, X% XXX% the because agreements. that by very roaming the outbound favorable our occurred, went we've year-over-year. Our rates

they're it managing of So well. And quite that going aspect directions. different we're in yes,

JPMorgan. the next Your from comes of question Phil line from Cusick

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Your of GAMCO Dluzhevskiy next the question comes from Sergey line from Investors.

my LT. -- question first for is It's so

I you business a of service and So in a market? there success horizon? increasing be your bit. where kind size see in the few little in the now segment would on is share Obviously, is like X-year government one you you and But government your on what to of is priorities. and would market your opportunities that that expand mentioned a LT, you kind remarks, of could penetration prepared guess you territories? your What business a the What consider years? of in

Sure, Sergey.

disclose But consumer the you back think our So get of as share. the approximately our perspective, half postpaid we segment right, from of and a business share don't government being envelope, of independently. can

places. granular few where opportunity. The we're that lot bit lies, -- opportunity more so a And at a point getting a there's I on would of

small just there. into priority tackling making benefits first customers to The that growing our the is our see We're on we're starting stores. simple a and blocking walk for business some stores, small business and

adding that We're of terms in also seeing mix our stores. products to for the

for that going stores, So want cover large bread that difficult for retail of example, It Fleet folks management that's to X X the trucks, small a lawn have services, sales folks enterprise through is measures those to business Geotab some in you and have provides partnership sales started force. butter services. perfect you is trucks, because that we our of and management have and from put the place. with fleet

a effort in government business space. putting we're behind and the distribution concerted building however, broadly, More

channels, last some mentioned and And to there. we're our so her She's benefits Kim I expanding Kerr expanding starting joined see her year. team distribution, been

networking some And so larger some deals. larger IoT see starting we're deals. to seeing private We're

in is this So fantastic in we have an And a industry-leading past, asset, a business is we network haven't we think that strong the behind situation operate. now. to which the which distribution put expect I markets we and in where

channel. creates a didn't it is least, don't have brand that We new consumer building like postpaid of support where capabilities. so to share getting of the and very our growth. in to similar, distribution development require share ton is order of spend lot this capital to and This about meaningful a And at

So looking? that addresses what you're hopefully,

the on Great. Yes. question one competitive front. Maybe

[ share guys to rural X see your do network when the suburban you So distribution general, What seeing builds, ] impact for a mitigate markets growth them. their trying to quarter markets? may years. maybe X and that in you you has plan front T-Mobile, and have you next from And over are marketing to of the in expansion seen second the how the in their question? double some already to -- obviously, or from as been compare They're from market T-Mobile it highlighting opportunity

T-Mo address I'll so question. Sergey, your

there's more offers ago, them. about, think Verizon matching months I competitive the much X this we've and on-and-off now, fundamental industry. first aggressive things is been has the front, up that seen upgrade XX almost across by The AT&T in on are right? started happening

the industry of industry we've one we -- is right as think do for a short to about term, those the logical this how question it's been. upgrade And logical near think be be way so to aggressive relatively thing for time, period now as doing? And that about the actually is, what I thinking is I'm for the offers? a that in

are right, that XX% about Same thing period industry, since of holding of XX%. are the contracts, those think you customers If average about devices, out up since COVID. for -- with up

lot contract that And of so their longer. they've you've out people devices of for much are got had a

right working the XG with people If choice given fact of logical get pretty switching the hard churn now network in currency that I of bring decisions, better couple the for to devices consumers making availability, for to XG experience, down. hands that carriers the be

most some marketplace. but the so that aggressive certain regions, have not in right? surprised from We too, regional us, seeing I'm more approach, aggressive in offers. And of taken we're you're seeing And the them offers this

way industry. ARPU that the are benefit financial thinking that there I people impact expansion. the The the for and think that's is been we're underestimated in about And seeing ARPU

have to that bit we have just the of price put those percentile the plans, it, of for about price the plans. been higher-rate higher-rate So That's a generally we mid-XX select -- numbers behind up and to in our mid-XXs. little customers

ARPU long-term expansion, attractive, And get that our what, giving. the believe, once through that in keeps and gift And so this there's about then economics aggressiveness. relatively is creates And that near is I term guidance. we promotional talked expansion we ARPU on

we've promotional guidance -- really though even the environment. have there's We a maintained been aggressive

made T-Mo their so noise rural areas. you of is lot mentioned, thing, Now as about the into a second expansion T-Mo, right? has And

it. have track shares We we those the seen components constant seen share. T-Mobile. share track either. of share. market for move Market and market win generally loss share, not We remain haven't So I

And Sergey, putting urban. is T-Mobile think. a it's people we're the They're it competitor. taking do so example. They're And I than networks it's Google a than much what way monetizing too." we people formidable harder in I have think America do is Different in what not rural marketing But deployment is And it network good well-run Fi customer actually harder even that, think and said, "Oh, of hard, we I'm is more than a networks, is can in as lightly. seeing about this action. far, difficult. it's company.

Great. Maybe Got for it. Vicki. couple of questions

some learnings some the guess I learned, at your front, in of build mature of impacting plans? worked and some the guess I as well you're and what new you tweaking that adjusted? markets most fiber are and so builds Idaho what of the for of how some you're how future didn't guys lessons looking builds doing are what might the guys that be work your you on and far are you Washington, So what as approaching

good you, and the Sergey, you morning. Thank questions. Thank for

just and we our urgency really results. is our markets. we're These to some construction are meet the seeing let of the the have new are Right successes me And are completed accelerate you this with exceed to programs. increasing share our we sense fiber or where seeing our The really what's new our now, with of out-of-territory watching we success continues in ones expectations. markets that our

compared launching, our of markets for our half the our our about the market, timing twice across in of nearly to our quarter. For growth different due market in of still of the was And many as second the penetration early And rates, averaging markets. end this example, XX% to completed last they're quarter broadband is due number the broadband vary reporting year. the although of to as connection out-of-territory connections

expansion more of construction growing the in XX connections I'm the our margins, markets, rate ago. I also at also are wanted completed than voice attachment are market contribution with that video XX% financials on markets, And that XX%. months north across to early, watching as video and although has note these

So that's some of the successes we're having.

we terms and and delays are learned very lessons each having the some markets. pace there. some the we period, The construction are of of different our across encounter of there construction challenges are In

are this. is doing Sometimes cities huge, and we're economic but sometimes want future largely communities. hitting about as we're that so These significant are builds, that the the prosperity projects challenges, really it's these permitting of getting varied rocks smarter, we're

game So construction period. more more and in with are us ensure during end that the focus leaders are city to success keeping the working

and leaders both our key as I us, contractors city work think that's for our real a to forward. continue learning we

about last Great. is video. And my question

I options, like XX% of important guess, direct your TV. YouTube streaming mentioned attachment your offerings element MVPD rate. you strategy, it's but consumers to and some and obviously TV basically deemphasized of virtual So that an peers

your of What are what are your strategy markets the So markets? not you different that your in is seeing? peers some video for your makes sense maybe reasons why in

is XX%, our wireline important Yes. overall the to service rate telling is how of across average, on market Well, video us customers our offering. video the attachment

to superior rate. really single attachment a XX% For profitable, it's state-of-the-art really experience broadband that video with every a video strong platform our and customers. our connection, a that's broadband bundled offers product And for is

up buy buy as an you important is speeds percentage our as markets, entertainment you know, our of And that economic have higher a perspective in homes an programming. -- high as and know, higher these we of homes stack, important bundling is strategy. you look video that packages have markets from and single-family And and really single-family they part really what's the

so so I with as they we see churn lower as economics, data, the only product, these products. look value on at the who also we customer a of as value increases bundled but lifetime watch customer the video a take And significantly not data, have -- take

overall our So to very important strategy.

Speakers, the seeing queue. Please I'm in no further questions continue.

like for forward a to Have Great. great us thank weekend. look to everybody we'd today joining future Well, our conversations. and

call. concludes participating. This for Thank today's conference you

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