United States Cellular Corporat (UZF) 4 Aug 232023 Q2 Earnings call transcript

Good morning. My name is David, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the TDS and UScellular's Second Quarter 2023 Operating Results Call. Today's conference is being recorded. [Operator Instructions]

of you President conference. begin Vice Thompson, Corporate may Relations, your Colleen

from UScellular, have our Officer; from Austin morning, joining Officer; can the President aware Finance of and prepared you Therivel, Brukwicki, President Vice we President Chief and for Executive thank find offering Financial Financial and of today and UScellular Marketing Vicki to We Chief presentation Good and Villacrez, Summerford, Relations you and Vice Executive LT and TDS Chief make on Strategy Michelle Partnerships Senior us. the Jagher, and Towers; Doug President, Vice sections Officer; which this Vice Chief comments morning, of and want Officer. Chief Senior TDS Investor to the websites. are Executive prepared you me and President Chambers, Chief Telecom, accompany of Treasurer; from comments, all Financial Officer Eric TDS With

simultaneously before being including non-GAAP contributions TDS websites for partnerships. to and of and and call, this is amortization, Please before and on the income or for We highlight depreciation earnings slides or call provide the to operating website. Relations webcast adjusted both reconciliations. guidance see This interest, depreciation Investor taxes, referred UScellular the adjusted amortization OIBDA, on EBITDA wireless UScellular's

including releases and press this Forms our the TDS X-K, and SEC filed UScellular earlier morning. their XX-Qs

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

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

All morning, right. you, good Colleen, everyone. and Thank

for initiate process have announcement TDS strategic details decided to I of alternatives to for moment acknowledge a to the into to quarter, a that each of and this we get UScellular morning's UScellular. want take the Board the Before Directors explore

best advisers The shareholders. UScellular the in of TDS will completion strategic no be legal for or the deadline timetable range assurance and there the of further of and interest no the to of on explore on TDS of focused and or the review, comprehensive Both make is do outcome process directors financial strategic and review. definitive a connection with have retained set There review. and process, strategic the alternatives not this can review comment announcements results regarding UScellular further we'll appropriate. as intend independent

to process plan today. regarding on review call answer questions We any the do this not

all me year, the the set LT, next. of team emphasize remain and at the strategic we with priorities Let we that speak the rest beginning of executing the and committed Michelle will Doug forth to to that

the details With quarter. into of that, get the let's

year, press new our Telecom on continue containment. on from saw into fiber expansion its begun to through and TDS halfway making on you and UScellular As focusing execute intensely multiyear our program the we deploying cost we're XG release, markets. progress spectrum, strategy, mid-band solid is has while

UScellular and help quarter, billion as businesses our have of and fund combined our available cash, At the of on including $X.X to EIT agreement TDS sources end capacity the repurchase needed. second in liquidity, over revolvers,

July. paid down $XXX highlight debt second down also UScellular then I want as that, expected, the $XXX quarter another to paid and during million in in million

to to a interest continue balance higher in short-term keeping this environment. sheet maturities by the minimum We manage rate

the maturities XX% reminder, preferred the of As indefinite very are preferred. in of our case or a including debt, over our long-dated

competitive Telecom guidance. controls its an tight ranges. of its UScellular then Reflecting increased guidance, tightened on Briefly due aggressive and TDS environment. profitability ranges, cost increased EBITDA reduced service midpoint the its of most guidance adjusted its revenue modestly to

service fiber capital expenditure their to its reduced of also the target. They while committed address midpoint delivery guidance still

environment. have entire and navigate focused order in current efficiencies, will pace to economic investments and we the the preserve our capital on We organization cost carefully

the And now over I turn on UScellular LT LT? results. call will to to you update

Thank to laid to out X. turn of our If We Slide that you, of the remain we the committed priorities Vicki. I strategic for at everybody. you year. Good morning, beginning all

been Our our churn although remains improvement. that strides adds improving priority And the were subscriber not quarter, in with gross encouraged in very with our and reduction top trajectory. satisfied we postpaid notable we've making

than also It's of That's churn focus as customers rate. are in less to For reminder, in the on and from much a on improve factor a in worked contract to in past promotions we've XX%. campaigns a big our a fiscally to churn. are likely year, growth time to that currently And time customers contract at targeted being and basis in with really us subscriber allows who more contract. We're way. disciplined out pacing varying regional are

rate adoption of flat is targeted. have upgrades which we rate while offered particularly seeing our regions. being We're steady various instance, tailored flat our For offers, are more to focusing footprint-wide, plans, other on

As ARPU generally rate a discounts. are these not while rate reminder, plans lower plans traditional customers for pricing eligible postpaid generate on flat plans, flat promotional than higher

flat about are top on addition, X our rate In the pricing customers of tiers. X/X

rate the If to our time. pricing over the plans promotional the plans and you tier have similar selection combine on traditional benefit higher flat average, economics

flat of plans, notwithstanding XX%. at which currently And increasing rate the is penetration

is to The enhanced claims. the higher-tiered job still nice doing of value is and growing them team stack really ARPU great Our with a customers our postpaid moving providing of year-over-year. up

environment, with we're Going I'm inflationary our on managing way in this the costs. costs, really current pleased

about Doug run that will and As a I with last we'll rate talk we few minutes. quarter, mentioned expenses additional headcount made you difficult in more details some expenses. some will give decisions help

start seen the month. results a to intend We're currently we fixed momentum spectrum. on product. We've offering quarter And that We milestone over remember, with XX% customers It's mid-band with this year-over-year. wireless wireless. all ended this these fixed XX,XXX up mid-band to for surpassed continued product. low-band Turning customers. are July, XXX,XXX deploying We In spectrum. later

us even for this will an in sales aggressively will maintain cable our our coming provide that better quarters. compete the enable more We customers experience competition for us momentum help help to of us even that areas expect

the on briefly X.XX parts band. C-band the and Nebraska, mid-band deploying in radios we Iowa, Virginia, have at as Illinois, of that one-touch network. tower radios Maine, in Oklahoma, our in Speaking Oregon, a X.XX We've where the hanging we Missouri, done this Wisconsin, spectrum hang spectrum. the time the same we're manage approach We're

with we'll So that air C-band clears spectrum year. later go to ready when this be on

enhancing the our that deployment multiyear our fixed expect will competitiveness improve this of mobility and addition We our through by both wireless mid-band further experience.

to broadband in divide fantastic is it's We the solution or know where digital as maybe a impractical help wireless bridge Briefly on the program. BEAD circumstances fiber deploy. expensive fixed to too

believe participate wireless space. that the completing our conversations a in positioned unserved in underserved America, in well connecting on officials, role with meaningful that Based we're we to we and fixed state believe

for expect broadband to compete about billion able that that subsidize be economical $X.X us otherwise. funding We will help to builds in aren't tower

have As X Eric us brief and to asked Austin him I've business. today. in Summerford was earlier, here joined mentioned the on key Jagher give initiatives updates

going launched today. some asked in year. positive new that campaign quarter, believe really drive our to share I've First, are help seen Eric earlier growth. with We've we first brand customer the results us future some to as of you this we I early mentioned our results

business. our leads tower Austin And

seen couple tower over very As a towers provide our valuable really last We've to the you tower going Austin more years. nice growth in revenues a path detail asset. know, strategy and of bit our on are is forward.

customers the impact first website. thank as for for report social I all you that check their to of and areas our call want I highlight issued to Before our communities. to we at building passion want and to turning also highlights to out Report supporting what our encourage our on I recently matters over, to communities connecting the serve in our dedication serving always, most. our our we our customers commitment And better it associates UScellular.

that, turn provide initiatives. on call brand who's With an to to our the over Eric? update I'll Eric, going

Thanks, good and morning. LT,

to care brand subscriber mentioned, are and just share connections issue to our connections trajectory, versus divide. a taking distract today. adapt at connect that It's this attempt build to UScellular can to strategy constant means improve our people that us that few steps genuine Because As matters to mission decided we of most. LT our to And the helping is mission, wanted by taking people you we I on of about. what one with of an details the the

XX% As Americans of are their context are and addicted they their for say devices. love people with the campaign, to phones. relationship technology their struggling They all with

to the in we the We to marketing So address a a quarter. first relationship create brand that campaign new technology. position opportunity launched with healthy

most. minutes, X asked We a focus Phones days what devices on for take first Our X X for their challenge. was the break Down hours connecting initiative matters people to from to or X

level is We've to help uses who a up campaign than Us system Mode, high functionality people already people impactful Bowl. impressions the service number The rather operating watch generating signature for and of the has XXX This set also distraction. date. Super interest than is more We've their to connection launched earned and devices a million been of engagement. called Xx the which handset in

on navigate available making just families the Further, issue. to Morning week, LT Good to last we're resources America was trying this discussing

services. respective Net measures campaign NPS. Score carrier's Additionally, a improve helping recommend to the or their NPS Promoter likely to is how are customers

X our carriers As our June NPS of higher in footprint. big than the XXXX, is

You'll by from customers. place see likelihood fourth we've current gone recommend on first to in the slide, to place

can the campaign see As on X, Slide you resonating. is

early, and still it's we in both seeing noncustomers. impact are already current While

several are not who aware As and key those those our dimensions campaign are on significantly scores brand higher of that aware.

customers, seen last market. in has the reductions current we've has in contributed we believe in campaign our that been year-over-year X campaign the For quarters to this churn

add more For increase and noncustomers, both become help drive brand as it familiarity indicator will of these are and results the improved UScellular of believe campaign. performance the a gross consideration we aware will people leading

the optimistic call turn will very to campaign pleased who drive of this future Overall, we now are that will I Austin? early we growth. Austin results will with it towers. us on customer Summerford, the over help update and are

Thanks, Eric, and good morning, everyone.

network. uniquely know, is support And strong the third-party number and We've UScellular the the as UScellular's also we tower positioned the in last to believe company U.S. operator tower have while I our growth. in already over own, driven both we years further room growth towers all fifth the based revenue you few on of for continuing wireless As largest

that's as network, just X UScellular have we we U.S. reach is currently see X.XX we with in tower of the further excess before growth our for from X and room ratio ago, ratio only large companies. tenancy tower Including the X.XX tenancy years up a

of geographically. Our not them X-mile radius. a within well tower do are competing positioned towers About a also XX% have

any sites. towards single base Additionally, UScellular generated And the which incremental there we equipment spread high well-diversified operates margins in the cost in to a and revenues carrier. resulted have weighted one business add states of contribution little the our aren't we this to in relatively customer across by co-locators as is heavily

In generators, currently large offer as can ability from an we space. that of addition, backhaul, them services And tower ancillary while aren't differentiates the offer such companies these shelter power and can't, array us traditional services to competition. revenue the

on Moving results. to

million As traded and XX% in the activity see delivered tower XX, and consistent on seen business tenant new the we With publicly represents that slowdown quarter growth a year. Slide which from this have third-party of the commentary in strong said, you amendment XXXX. another $XX can same versus quarter companies, revenue, with with

integration a X growth as we achieved network remainder growth In led and from quarter. of to in T-Mobile we've sequential to year, are for an addition, slowdown growth result in this of has The a these we decline of double-digit the their seen the for uptick the factors efforts. expecting terminations combination

However, optimistic again a both and coming we we new backlog the that for leasing will have and in pick quarters. applications remain tenancies activity significant of amendments up

will over the call who take more you through the turn financials in now will detail. I Doug, to

Thanks, Austin. Good morning.

upgrade improved this was of postpaid attractive with declining improvements competitive and by as XXXX. offset start a in decreased the to results additions review pool of had half by but in churn offers first well available handset by the as Slide the environment XXXX decline still gross continued as a Let's customers customers. our voluntary second handset year-over-year in in contract more additions in on We Postpaid quarter XX,XXX partially driven X,XXX losses of XX. net customer as of result due the aggression gross of largely by

net to prepaid gross Moving XX. Prepaid and Slide X,XXX X,XXX. declined additions decreased additions

available terms of additions, by partially gross of pool In competitively postpaid our own flat which declined offerings, year-over-year, customers believe the driven plans. priced we including overall rate is

are lower for revenues financial year of primary XX% X%. second The from base the which starting due the Total roaming the the negotiated XX. revenue also revenue. decreasing Inbound lower with primarily and roaming turn declines Slide revenues has in results roaming let's carriers, drivers to on to expense. with subscriber of Now revenues our quarter operating the service service decreased other rates declined prior declining impact X%

side, flat in and plans. positive we a subscriber see mix as the rate LT plan customer product On despite penetration offering ARPU higher base, we to as improve our as our in value, to growth increase of adoption higher of our mentioned, the result of continue tier continue

mainly of volumes. which As are due upgrade cost mitigate of on tier increased postpaid our the the and Equipment customers revenues impact service to XX% these of plans. promotional year-over-year. sales end This XX%, in decline of the handset decreased quarter, revenue ARPU, a and by higher helped

Slide our Next, to let's XX. on turn shown performance operating quarterly

discussion, adjusted amortization operating this income refer I to depreciation will as adjusted operating For income. and before

noted, declined the costs I declined is focus result costs, achieved X% revenues to our operating to were multiyear rollout cost our optimization total despite related XG and cost Cash attributable expenses was sold. program. ongoing environment including equipment strong excluding our controlling X%. on flat This As increased operating and the and inflationary to

cash full X%. driven deployment announced and of As related this the earnings fully managing incorporates a mainly a declined equity which approximately interest in Wrapping XX% invest operating We expenses XXXX from as mid-band we we expenditures income which decreased prudently method expect year along income XX%, to in in which prior continue while XXXX adjusted beyond. in May, of decreased our with impact we free year the $XX and cash to reminder, up investments, multiyear to in estimate realize should action our adjusted positively Capital to timing dividend have EBITDA, slide, our savings by this and rate XXXX. XG in million, run staffing, expenditures flow. reduction relative

deliver and Moving our to the XXXX. cover are midpoints adjusted capital in you the to that for believe our of And and will profitability targets operating on we full to we unchanged. expenditures year Slide guidance XX, I income February. expenditure that track We capital presented accordingly, on remain

the lowering revenues of for by million, a result trajectory. are subscriber We our as service $XX loss primarily midpoint

guidance. our our in management, adjusted income As we are a to result this discipline of guidance expense able our despite and ongoing operating decline maintain service revenues

addition, increasing million. midpoint In adjusted the $XX of we EBITDA by are

year, service now the plans that we and ranges are are halfway Lastly, operating adjusted than income tightening adjusted through and of XXXX more given our EBITDA. for remainder we revenues, of the the

Our guidance as mid-band our for we planned. capital executing expenditures deployment remains XG unchanged are as

will Michelle now I to over call the Brukwicki. turn

goals track quarter I'm out second and the report Thank to we everyone. pleased you, meet to results good TDS highlight and Doug, morning, Telecom's are on on year. this we that earlier laid

an It XXX us to A-CAM of for quarterly speeds the has revenue in delivering the into and will XX support through megabits for federal fantastic company. getting news provide our A-CAM program that XXXX to increased extended. Before return results, XX of additional down share up our been This addresses. is excited years I'm

a review, While this provides customers important the believe Telecom and into communities. fastest to we under program path take favorable for fiber for outcome details our deeper TDS remain is these

jump let's on starting Slide our Now XX. into results, quarterly

see can our you strategic focus. areas of Here,

improved and position. returns investments drive in strengthening over to these TDS strategic profitability financial We and Telecom's market ultimately expect priorities time,

Slide XX. to Moving

towards Let me longer-term update goals. you achieving on our progress our

Similar our the a We We back fiber XX,XXX the in half we we this in quarter, with year to XX,XXX expected service ramp delivery started in total through over deployed July year. expect to addresses of up That the see past delivering years, line ramp-up in as XX,XXX service are our June. added to marketable in addresses bringing cadence. addresses.

year. well goal towards of the hitting service are positioned our XXX,XXX We for addresses

Longer term, that towards marketable fiber goal. we're the We service addresses quarter XXX,XXX, XXXX. achieving we are with X.X progress targeting so by ended good making million

as as XX% to our through targeting also total quarter be XX%. by We by XXXX. This service progress up we ended expansion reflects fibering fiber are with in markets markets. the And well incumbent fiber our of served growing addresses our

Specifically, ILEC XX% of by of to ILEC end of with half addresses At fiber. was our serve plan quarter, XXXX, fibered up. our the we the

And finished to or X of of speeds finally, We we're least by the gig quarter our higher to gig XX% XX% expecting offer XXXX. at at footprint with speeds.

We continue that achievable, notwithstanding to in our believe these are recent in a targets the moment. expenditures reduction discuss I'll capital

results returns. mid-double-digit our pace when fiber in of various stages we getting It completed to about builds pace of the of with our continues in pleased to development, navigating expansion can low construction with far. and our validate challenges case shift our We're and long-term are We builds communities with our business successfully necessary. so expectations XXX fiber and

a On Slide growth we see graph higher up Shown are demand XX, taking we in total broadband XX% customers from XXX footprint see increasing you with service right, with megabits greater, XX% ago. the year-over-year. of that growing our can our speeds addresses X% for year or the a on on

We continue speeds now We're X to markets. Gig+ increase the certain gig even speeds. availability offering in of

of take gig with base at Customer X these quarter. end rates customer of or are on of fees growing our higher the the XX%

driving results, increase residential revenue. are Our an total broadband broadband including in X% investments positive

mix, we increases and a per As total increase residential XX, connection in X% year-over-year revenue shown connections. Slide to X% broadband overall due experienced promotions. was offset by Average on up partially residential product price

markets commercial partially revenues also a all revenues. X% the residential right, in across of by As shown increase a decrease in we our wholesale was and had and offset chart on in the this

broadband and of partially steady in connections. of these revenue. revenues lastly, the revenue new penetration wireline decline residential revenues aligns growth revenues and price address in And Commercial wholesale year-over-year promotional quarter, our voice quarter, to driven growth primarily $XX lower due to Residential the following million by to lower increases cable up and decreased were video a markets. in increased market in as access timing incumbent X% by activity expectations in delivery the special connections Expansion service CLEC connections. XX% with This ramps for decreased and offset primarily the due revenues quarter.

expenses growing total XX, the quarter. the increased X% see to increased for Slide that due in can our Cash X% quarter, we fiber program. mainly On revenues

estate our marketing, and cost As and to addition reminder, costs revenues. such as are in upfront include These fiber direct support incurred to launching real technicians prior to generating expansion a costs markets shared services. sales,

the these decline expected, expenses EBITDA the we $XXX resulted from were As quarter. on cash in that our the year deployments to X% capital and run. return fiber this increased year. long million in increasing increased for strategy multiyear flow adjusted in goal the of due cash a of mind and in Capital of investments investment up expenditures Keep support free prior our over

XX guidance. Slide XXXX our revised shows

to We with $X.XX last unchanged EBITDA are million and Telecom is revenues previous upfront is from spending increase between Adjusted which now our to focus expected an reflects forecasting program billion, billion cost our EBITDA our range. $X.XX XXXX, $XXX along total be fiber from management. of million Adjusted quarter. in $XXX on

Disciplined is markets It's our be all range. the expansion expect spending of that to launched. by end organization important in the guidance year, increase to the of fiber we note this initially across our driving almost

As adjusted EBITDA our expect broadband we on lessen. builds pressure we mature fiber increase program penetration, to the and our

to expect not capital reducing $XXX modestly to expenditure million guidance goal $XXX between this address our do our delivery be now fiber year. impact service this million. We also range are We and

we in while commensurate term size capital XXXX in our will our in expecting plans, the reduction financing near spending, achieve expect expenditures goals. result which to a still fiber will program of with we capital pace forward, timing our Going and the

entire to This cable, We accounts briefly reiterate a all response conduit. Before very have our recent miles cables. of media signing almost buried to I lead want estimate to network. it currently lead off, percentage we small approximately XX that covered of related of our in is

we'll industry the We with steps. our next assessment and work are to continuing determine

for on team of entire I takes thank It to organization the dedication execute our the all also hard strategy. and want alignment across their to work.

TDS Telecom success. each our associates of So contributing one is to

And turn Colleen. now to back over the I'll call

we everyone strategic to questions be question. I focus we quarter, today taking will related and up ready the before to are open review our Okay, want do alternatives. of for first on not for Operator, questions, remind that we the is the

with [Operator from Raymond Instructions] our We'll take first question James. Prentiss Ric

I'm glad at are appreciate not you about My review. strategic alternative guys that, the question I that. is but Well, looking related.

-- question. of as of breaking tower sense. Regardless separate outcome mentioned, review, the about of out wireless between the would that strategic a tower company a about stand-alone seem the you largest the First any tower business the contract fifth outcome kind have is, working regardless make further and as thought what company, segment of and the company, you to

creating with strategic of any outside So first rent. segment updated tower maybe the the thoughts question is, a anchor review, on

This is LT.

we thank for my a you question. see we're you Austin's this right approaching that the business. both as that can is So comments, -- we as lot way comments of The tower in well as value now tell from

that below see even have that recently. rate long-term of a in a is We more growth the a seen lot of major here slowdown of we bit co-location asset providers. though Our

some We share more over go. we do as time plan information on segment that to

that not a tower it information your We're that's Austin somewhat as it. you fully today today evaluating. that business. around bit on the The example, providing separate but for of over on time. business from a answer we're we answers about a it Hopefully, carving the do out that question of position if little question, So in something treating it specific comment heard new plan details to even incremental doesn't business, or

a way. was know review, I it I thought the fair was Right. asking that there line strategic about but about dodging it

was I extremely was it thought elegant. It elegant. very

been gross saw Any phones. far as update gross industry. as tough and in for postpaid environment gross obviously, as it's question, add there July you adds, what as out churn a particularly Second adds, the far on

saw that similar in trajectory comment can't I'd we've seen on July fully We we QX. a Ric. in fairly QX. Yes, say

So no far. drastic so changes

total one How the low wireless last fixed bright think area the is is just me. to -- your December. be should mid-band, the we rolling in for business, C-band clears in this the and your C-band going maybe larger band, the the kind addressable have you're Obviously, targets about of though deployed got have addressing with out some spot not you plans? households And you're your Okay. lit? even markets. are of out laid targets peers even have What many market, those made already great with towards your how Some and more it's progress

help just and addressable So to of of us sizing kind market understand the trying fixed where wireless, at where you're plan. you

I'll of little of capacity the wireless you a specifics some have to going what have that's and talk An to we're actually in about then market. capacity because Doug addressable give of you kind a a a Mike signal reach. I'm fixed have doing high-quality bit can isn't necessary to provide experience. market you driver where just a reach signal can Addressable have is market the where with fundamental addressable address

first tackle... then you to I you maybe Mike and question ask the tackle Doug, So can

going. fixed homes excited our and Sure. low And wireless rollout, of million where in expect at reminder, addressable may footprint. when look we're Ric, that's over our And today those to a band as to we time, X million homes to for that X mid-band over we about be multiyear mid-band our pretty get adjusted total market million but XX is

Ric, it's Mike. question. for Thanks the

equipment time, low and C-band prepping the now we're band radios mentioned. service And us that that At starting DoD to immediately spectrum. the up the the so the that the the to our same increase we're year. So of towards end LT just we activate can bring capacity gives

support that doubles So our to the growth. almost capacity

balance antennas, right extends to, antennas further our are internal But addition mix to FWA And well in team specific to our as then that, as we're there's the find we're and capacity vendors working right on external glass that add antennas mount pro-install that feature capacity. our to versus working the with cost enablements of with getting capacity. things lower one, marketing to

product. on right we're capacity like capacity. So mobility We're our managing we about manage concerned now, it not

Phil with to Next, we'll go JPMorgan. Cusick

next We'll move to the question.

Next, we'll Stanley. go Flannery with Simon to Morgan

LT, related antennas C-band an and on the the use? guess to question of maybe the have most we the terms for hanging touch. on How color we DoD one different efficiency it go to competitive X, on now? antenna for sight sounds line Are integrated Any and of time? be great. you're the that positioning helpful tenants mid-band towers. can of You spectrum like of appreciate the build-out capacity? with right color would might these I Austin the a X.X in And do think the spectrum, X is that over towers, how I X, of of X Any about tenants be

Simon. touch you, been Thank single developing. I'll have single Mike our something we've radio. certainly enclosure, on It's with partners on the closely working

little a of So Mike, give can you on maybe color bit that.

but and we want advantage it the our to a we that so it's Thanks publicly, that available. pretty of close, our we'll just feel deployment could for question. soon I commit as and plan it's them to We're working both date with vendors take on into product integrate as that

incremental yes, of incremental capacity our is vast from they capacity. Austin. today. this towers question, Simon, On are your have them We majority believe the where do second have

there's sites to the as to the add addition, well. invest structural a In always option capacity modification to to

we feel there. So about are good where we

And quantification any the of how churn is? how and much remaining T-Mobile long the

to more now. any detail going not I'm right provide

go to we'll Citi. Michael with Next, Rollins

are levels look total may actually segments or performance, verticals of what a subscriptions, and it's maybe such areas in wireless that at products or seeing at look X we revenue performance, totality go the deeper. when other it's you be representation growth fair not subscription portfolio that phone you tougher X experiencing when where or versus the or of geographies postpaid you there material you're When

to that growth. the ways. of good look it's attractive certain I business, different different when inside Mike, at hear with seeing business few we're really answer our mean, question in you. areas products from certainly, I'd of you a

about fixed talked certainly of amount fair of detail. lot wireless we where That's in area So a one seeing growth. a we're

business our segment. In

space, up private the on through also it's private growth And Our space. IoT pull by really networking networking good substantively year-over-year. way, We're business services. the professional us seeing is helping the

so And side talked some talked on We've We've consumer the well. an us. we're for side, as wireless. attractive fixed growth attractive about really business on mostly mostly growth actually seeing the area that's but

recently We've will channels, to count and if count. launched the some of amount actually fair our our follow the the on you're revenue statements, our up on. of that through show growth growth And growth in being seeing a indirect it failover really in sold so financial doesn't we're show business subscriber product nice in it's because the up side trying just

certainly are some bright substantive so And there spots.

perspective, geographical highlight our in cable I that have not it. does what would competition is a XX% of footprint From

increased pricing incremental it challenges. competition that, and cable creates seeing are where competitive from we We see

you from so as challenge we see would that competitive And don't see results. some increased cable, better we subscriber expect, where

promotions. low we far in our with into profiles. XX% So as aggressive right, those customers of see existing add We of across gross XX were kind challenges. where plenty do last the from contract, our rate also we contract certainly have to at but of where up ways see Those have attractive your customers. in-contract pockets I'd question. getting moved XX%, mid-XXs, broadly percentile same better the new churn different we And in churn, we point just business, quite year,

and all it ubiquitous products performance is our all across footprints. certainly So completely not our

You've Mike. and would lows got sense, that a you Hope expect. highs as you gives

had just question. follow-up I And a

very of the a specific UScellular. language to So the of TDS that performing prior your was review comment. strategic is I But you recognize review strategic per can't also UScellular speak

UScellular? TDS be that an future to company review this TDS take incorporated the of company what to get also expects investors Or independent for into still should regardless UScellular? a outstanding of happens as So that TDS mean does -- to

elegant to way the XXD. talk about point try I'll me you to Yes. the to to just release, back It's but incredibly an get

it at think -- I is the language think, think going be, we're as I as and many in about details clear to I provides this probably we're as point. it as going to

that just that for would -- would you back So I to question. I document reference refer

Dluzhevskiy Next, Instructions] [Operator with GAMCO we'll Sergey to Investors. go

first my business enterprise the LT, is question side. and around

for you what do to expectations what expect guess, meaningful over achievement success? this what what that to has over results. And see at for largest And UScellular company. a business the there make been next your more on XX So you vertical obviously, months, you last this XX XX contribution I months, you a it's vertical I a to would as the out also, consider growth guess look that front? are the point the

So take us XG. business will I space if from our and I back from if at an business, business you step a for you just is a question, step but and -- look answer back interesting because your our the take

latency. to emerging With investments that monetize the increasingly the XG speed, on going in enterprise use wireless, increased the made that use exception going has be Those of the are fixed side. industry cases better the to are cases

Most whether those connected digital to leverage initial connected it is health. is And going are twins, it whether enterprise. so manufacturing, of cases, use those

asked that made And pretty we I IoT, seeing space. to I'm think with a and payoffs I so we I think point that be particularly from utility accomplishment. investment private we're pleased networking, for before, you particularly what been specific enterprise we've a substantive and distribution for the in the that distribution, areas do in so in particularly in able that -- mentioned investment ready could I'll

So their them variety with manage of helping metering with providing deals utilities, control, a private them we've networks smart solutions. more different networking securely more signed

compete space a don't And don't because necessarily another. this utilities is against necessarily they one particularly interesting --

that can to utility a provide others. talk with solution we so about one they And

And pretty And so seen we've momentum actually to in I significant that expect continue. space. that

broadly utilities. would be were it those enterprise point I going cases is if think emerge. to use see to So you're one I thing, XG where at More

so while actually the future. have competitors leaned into for positions many that back. And of us I And we've pulled believe well our enterprise

long, that it, call a space. disconnects, education has COVID been of the from course, is I'd challenge, particularly in The hangover there

has And occurred enable that them a dried so what administrators, of of a created as remote from during to the COVID for students, for up. flowed connect lot whole. is those teachers, systems to a into industry school That funding UScellular the connections lot -- government money

what back funding see of previously so you've for. districts those is seen had connections And pulling they some that on you school

because And in we're the edu counts appear disconnects. and that challenged the even momentum trajectory so the the business though attractive, of overall subscriber those seeing is

the in revenue. these continue that expect notwithstanding revenue expect private and I to seeing going we're on, coming space lower I revenue of we're that disconnects, growth that asked, I'm is that networking we're should that revenues the metric to IoT in the some increase the focus So seeing, ARPU that final on we're to that I'm optimistic driving quarters. that be to that question the you focused segment, metric what's getting the to see going in

around deals and is about think you sharing. network Canada because in of number Obviously, around lot talked for question Great. of very company frequent, I I sharing and as Latin we have they times, specifically, Telus network more network and My see not sharing partnerships robust partnerships in but North think robust a infrastructure a are more a opportunities exploring partnership. the Europe, other America, in maybe Bell America,

way national far you So And if align how sharing efforts on front? network other there as look guys using going and the also, forward? of to better an you update is itself in one my question provide for more or that way that providers is as a could broadly, at partnerships with the your value-enhancing your cellular

it. possible thing sharing incredibly broad term an that form interesting that to covers network want sharing. partnerships, whatever spectrum of is about methods, is you single of a call arrangements, network Roaming a it's The

engage the roaming And in clearly, do partnerships partners carriers. so with as we network our other sharing

fantastic own, that on back X, rural network these a out, we networks industry the I network is alternatives. to offering don't some back in comments consistent economic made and in assets people and that sense to X explore that equipment some to which has in that made the XG go of calls fashion, feel it's that creative the of spectrum to see operating, actually co-locate the towers. and have I we in Austin built the use the in or Austin would a XG duplicative so the network to Mike folks we build comments in that about makes I've go to communication of up past, opportunities towers that with is set elements rural we're our that We it on America, We're America. whether other I'll simply think

middle have sharing. network network the on backhaul signed even sharing offer to right? that shelter actually space, about discussing opportunity of it's a the small, of the sometimes. of we're way sharing. It's thinking tower-by-tower But some we're we elements very another we've in And basis and agreements doing, Those generators, are there. They're

that We're for interest tower construct. continued I ongoing. think And the sharing seeing in, conversations so example, are

that, anything I comment probably specifics can't Beyond here. on

Got is And it. Michelle. for my last question

you the revenue could So -- are opportunities obviously, program positive the expansion. TDS forward. implications you of forward. what implications color are -- mean the Could going more going you What about And seems commented A-CAM award a this what maybe view on it and provide program. A-CAM for this for about program under have the potential

the Yes. to Yes, over this is program very trying Thank benefit We're Telecom. the you, long to about working so enhanced been A-CAM a get seen FCC TDS finish with Sergey. program a this. for as On the excited time. line. We've

that And has just so happened. pleased we're very

mentioned, an still There years. I is details the going this are We program additional revenue a for lot extend support of know the XX that high being levels as to reviewed. are program

scheduled addresses So eligible all of And This go through that speeds we to out support the that, the program. revenue A-CAM to was XXXX. exchange for have are program XXXX. though, take for A-CAM higher to through the current in will the deliver

get megabits that XX means that XXX down at of megabits have we up. and to speeds So least

That program. those have understanding part to BEAD of by same as XXXX. of the is And our bills be the the done, requirement it's end

the for BEAD the on builds program line the will also build align program. that time we're that A-CAM with So expecting the

know now. right what we that's So

offers our will do specifically more companies to then couple of and able the next us. over We it us requirements, months. bit obligation will be And working closely a about with this will be happen little valuation means the and all more allow specific FCC to to for that exactly and get talk what

customers us for in of best going work already a really markets But extending this that's customers to most parts years. the TDS a start wonderful keeping and be for We been in quickly it. and this the our is going by to our way part get program and thing serve as as rural possible. for think to this higher Telecom it speeds many to program for is It's general, We've and with of existing. those

JPMorgan. Next, with we'll go to Phil Cusick

and transcript. catch you talk And can I a shifting little of at strategies the time. I'm missed in if trying Sorry, wonder, that promotion you've bit call, LT, the X years. I of but UScellular to success on been the up pricing about the for

we'd mix, over you and you to churn with continue it seems contract as like Your better few than last gross despite adds the up is in and wireless nicely but years said, is down, struggle expected. growing

the that just push is can for drivers sort has plan at And doing look guide where in of and about this you differed you the So the year, strategy sort the where talk and of what as company we and budget of performance and are try down. go-to-market to that.

Phil, good to hear your voice.

don't also both We subscriber don't And we to that talked a but with doing to results with very from what strategy from constructs look balanced structures, our efforts vacuum. the how are perspective. we create different and subscribers you're you you can think structures, promotional do -- trial and were pricing when pricing have a so promotional our we where in regionalization only results. and with test we a about is at wanted beginning properly subscriber our financial trying with to We've

balance quite if about look at so context, at to across enhance the environment, context And look pressures the when been we've pricing the the industry. And of the that competitive I strike. that I able context, intense pleased I'm within given balance, overarching industry,

to performance want it. out where say stronger be. put there, levels would we to that drive The continue fairly like been every in that, of to performance. not statement gross it's I add We've to I'll is and gross I able add about it and public be

point to level is take bend the we meaningfully like investment prudent is at really that would a doing. feel of gross However, investments adds that the it not we think worth curve on this

it. same our I as with year back churn last plants, in There's that a investment fair under existing with a getting we spent would churn. amount substantive made new money contract. of contrast folks behind that We

the of lot and still to gross subscriber a churn purely year-over-year work you and that improvement benefits gaining However, see year do. this a we're so add perspective, on

between flow I and operating slightly expanded results strike results. We're [indiscernible] the think that team our balance that our cash guidance, to pleased, subscriber is correct this subscriber results, balance executing And year. from see the you'll perspective, trying guidance In and results and I'm financial financial we from between

revenue the the of And has and slower the driver guide been adds today? gross the downgrade in

lesser Phil, Yes. gross postpaid it's volumes a add-driven to call, mostly on I prepaid. mentioned on and extent, and the

Can I is year? ownership remind Okay. of the more. and that how us last in, you asset of brought Verizon much LA cash the one your ask can If in

LA, million. first were total includes of LA, partnership year, all, our That distributions other year with investments. full $XXX XXXX along X last

go this that up LA that XX% total. slightly to expect about of We is year.

what's basis no tax on And assume the -- I there's that essentially investments? those

result distribution of LA's up in capital as going it's And this the the Well, is of way, a fourth expenditures low. quarter by year significant XXXX.

up. low. we do So basis that expect And yes, go is the tax to

over time. any no I'll to closing turn this further questions Colleen additional back or now for Thompson the at are There remarks. call

Okay. time today. great for a your Have weekend. Thanks, everyone,

conference concludes call. This today's

now disconnect. may You