United States Cellular Corporat (UZF) 2 Aug 242024 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. My name is John, and I'll be your conference operator for today. At this time, I would like to welcome everyone to the TDS and UScellular Second Quarter 2024 Operating Results Conference Call. [Operator Instructions] I would now like to turn the call over to Colleen Thompson, Vice President, Corporate Relations. Please go ahead.

you us. thank and morning, for joining Good Relations and We presentation Vice and and our Chief we make me President, Officer; you today the comments UScellular prepared Chief TDS and of Executive TDS, the being Doug Officer. This TDS Financial Therivel, Investor all website. the aware Vicki from Michelle Vice Investor on Officer have LT call and find are on Chambers, morning, President and Relations and you Telecom, Chief TDS want of President websites. With President Financial Vice of Treasurer; which UScellular, the from and Executive to is Senior this can sections Chief comments prepared from webcast UScellular Officer; offering to Brukwicki, accompany simultaneously Executive Finance Financial Villacrez, and to Please this amortization, both operating see contributions income on before guidance to of taxes, highlight or call, the EBITDA, including OIBDA, earnings slides websites and for for reconciliations. We provide depreciation and adjusted adjusted U.S. the depreciation amortization, before interest, referred non-GAAP or partnerships. wireless Cellular's filed UScellular releases this including the and our XX-Qs TDS SEC earlier Forms and morning. their X-K, press

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

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

company of initiatives for a quarter This the will that number of position combination reflects the future. the

from across in an has there incredible a for our performed of transaction our we announced Most late notably, strategic years, review arising alternatives enterprise. UScellular. by entire of amount past the the work May, been Over teams

is company is approximately announced investments which value provides and definitive XX% Also monetizing. retaining on for operations. benefits to that regulatory it of the IT our agreement is customers. UScellular about we We approval, into to partnership our OneNeck working clear in currently owned its X,XXX transaction, entered pending a towers, as we which and the shareholders are equity excited assets, its sell the nearly our would unlock solutions spectrum quarter,

We this intend expect close the use to spend TDS support and Telecom's proceeds later current we our transaction to to quarter, in program. fiber the planned

our increasing results. networks in EBITDA, that business adjusted investments drove financial to usage units double-digit year-over-year important to while I'm free Turning delivered in speeds. very their pleased year-over-year Improved TDS sequentially. and for and improvements customers' making needs flow, up with profitability order both keep up in cash increased

to and while take businesses measured funding efficiencies maintaining approach investments across in cost the will a We enterprise. a the our to on focus continue prioritizing

ratios, comments. resulted their of dynamic on into to year paid also in has of XXXX. associates flow place parent, are of LT a thank back I cash now commensurate the we turn and it program balance of these free position. divestitures pending through we term undrawn to for fiber work for half by sheet down in management in cash improvement and They management free and million adjusted focus the maintaining EBITDA the quarter down capital debt leverage in We quarter. TDS also sequentially. approximately hard is puts cash our as capital. year-over-year with pacing continue with generation. the the will at that like into And and growth EBITDA the of Our TDS prudent in I to loan UScellular and which coupled timing move good its Telecom expenditures, an to in over in generate $XXX capacity flow will times. And continues ended and liquidity the all have revolver supporting further an us sizing

Vicki. Good Thanks, everyone. morning,

process, If stakeholders. the May, will pending late long-term in will change provides we the long-term information. a with call the forma process substantial That customers is with unaudited have our main details benefits as strategic our we announcement you contains our XX, on best regulatory track for greater network. doing transaction convinced discussed of option near long-term they our scale term, strategic to a operations operating July see and that highlights. quarter can during financial delivering competitive is results. to statement an financial process focused and of our and filed We The evidence business the for also remain our And outcome. We performance X, on obviously the strong Slide we for launched said, remain in that. operational We've sale all our historical the both this this on and the T-Mobile the and And highly significant are is transaction of which and and that you approval pro review of T-Mobile information as a that direction. transaction benefits quarterly optimistic favorable we remain to turn have our more just wireless alternatives

talk given Form purchasing, now to into approval; towers. under new announced upon also that additional We've more an updates bit of opportunity to segment and filed results expect wireless historical X tower of during And active add is the about least entering significant the until that and in the XX-Q wireless transaction provides this we're and that process, X-K close unlock the and that results value. T-Mobile T-Mobile, filed our this XX And will operations will also spectrum investor reporting the expect convey the operations, We transaction don't it that XX. remaining for is the perspective concluded. In in process This this a T-Mobile tenant segments: nature segment we our we reporting we be to at his with the with pending quarter little our segment of on not of that and towers have included operations we'll XX% provided conjunction on monetize for to is MLA. We to July seeking of ongoing. our and That be we morning. anchor new in second results regulatory Form section. the will in Doug XXXX years presentation an

postpaid And made number Let XX,XXX beginning a adds year-over-year a I been a including our changes we'll of significant results changes financially have to second results, sequential results. encouraged loss me driver to total designed while further talk sequential X little improved loss compared the quarter. And in believe improved these the XX,XXX improvement in trajectory improve of prepaid, remaining XXXX working by improvement by in promotional about Total our adds, we're XX,XXX. Since XX,XXX And net net subscriber a subscriber while of year, to we've net quarterly bit quarters. the and handset improve to postpaid the the keep XXXX. the sequentially, net prudent. from in prior

to solid of deliver We ARPU postpaid also X%. growth year-over-year continue

the and fixed from intense. remains and our in focus ARPU X in as aggressive a Days subscribers subscribers that's Days. to and existing talk negative, a existing and Postpaid a churn we're a us we given and net a economic customers post greater we've offer advantage strong is amount wireless X cable year-over-year. in as And formidable pleased traffic rewarding Cable retention a grew offer improved remains retention total improved X I'm improvement our context declining add customers for for US of subscriber Michelle postpaid the upgrade handset her the mobile free our as off Telecom's are buy benefits the key an offering as TDS rolling hear promotions. significantly US subscribers about sequential has all progress periods with lines line pool during they broader their of eligible WiFi. section. Cable in customers line, this quarter. for also free program. And attractive And can churn do area get ACP prior seeing points their in remain on prepaid and from competitive you'll our promotions handset continues In Wireless for basis growth well also expansion. Customer results XX% of as with environment broadband cable very are mobility, to year. The remains X% the as challenges, although Carrier wireless trajectory to remain addition, bundle this been increase competitor. ability XXX,XXX both those and available

addition, basis In XX points. churn improved almost prepaid by

great our prepaid So we our compelling second in adds result prepaid improved and of drove digital positive customers. distribution, to we with net pricing engagement The quarter. these deliver continue enhanced efforts in the and a business product,

stay them to connected. those with minimal, ACP XX,XXX about ensure customers, are While able they to to to our exposure customers relatively offers special provide we've worked with was

keeping of extremely And to of team expect being the deliver allow team powerful further to Our that improved we've having of both speeds mitigated the a remained to and quarter, mid-band recognize remains that the mission. And XXXX, with this program is we quarter, rollout, to up results. unprecedented financial to all our with enabled network and doing which already continue And down deliver will data continue now upgraded XX% of increasing on low-band adjusted addition deployment network our our is OIBDA, XX% expenses deliver wireless. Overall, subscriber on to that major multiyear matters and been really network. and the changes, in proud And has organization. cost I'm our end our Doug. during The fixed been sites us positive us what although data is focused decommissioning XXXX efficiency to want call of this I of traffic to the team pleased and track. By XG. all mid-band drive of considering for the sites their a of and managing XG need these is by customers momentum in in most. for this an handle to is are outstanding with cell categories, the the mid-band we on in expenses. that capacity XX% have job CDMA our momentum continues over change were second the turn them has it's traffic. speaking handled our connected seen rollout, the successfully be commitment I XG mobility I'll to costs customers has our have of impressive, almost which year to strong the quarter. And the to to our And enhancement the expense

LT. Good morning. Thanks,

X. Let's review results starting on the Slide financial

to and actions, optimization assessed Although ARPU, we as segment. of and straight-line The XX% as continue decrease administrative $XX present in volume the in also in offset the the And in expense to segment. as base, rentals. rate expense Wireless from partially excluding as rentals quarter operations These debt the expense second selling, the as in Wireless expenses, network the and a by the X% accounting X% growth wireless XX including that expenses. decreased higher due second impact a subscriber declined Intercompany no XXXX category optimization system these is was to impacted general rental are for Towers XXXX, also These increases by reflected XX U.S. across cellular the are market reduce in Towers third in expense cost OIBDA LT strategic and and represent related based our of there intercompany to operations to resulted reflects years results decreases mid-band new service of segments. revenue rentals accordingly, slowed to offset alternatives rentals decreased of first increased as quarter X%, in System relative million well ongoing X% sprint increased has deployment. Further, expenses infections. X% this average estimated assessed from adjusted cost colocation categories on and the an including various revenue month-to-month CDMA result other shutdown postpaid segment basis. due our impact a tower the related quarter more rate parties administrative than expenses included as in the general of decreased Towers mentioned, revenues on defections, rentals. bad initiatives. Slides of separate XG the of cash sales-related decreases recent

drive which on discussed wireless the and beginning new industry industry corresponding tower a uniquely portfolio the is for business, industry for moderated revenue in of expenditures XXXX. below average outlook and positioned we geographically. demand the is in XXXX, in further rates densification our prior of activity the will we require tenant and capacity near-term experienced As Again, that slowdown activity the needs we has of amendment towers can our are impacting towers towers. The capital has the remain on bullish although still towers slowed rate have calls, long-term growth long-term tenancy

initial we their commitment lot grow. to the So towers a have and with regulatory believe XXXX opportunity T-Mobile, Further, approval incremental of like subject towers the XX years, to for to is comments which foundation an pending would to future for we outlook transaction business. a is revenues. I to lease term of few create tower on third-party of expected our make a long-term

subject wireless UScellular our the include addition resulting the to changes tower As how license T-Mobile investor intercompany tower mentioned, regulatory the operations exhibit of segment the with that exhibit on to is after results July current of our transaction to an our with on loss sell which information to perspective X-K financial that close approval. Post-transaction from filed an part of we revenue as revenue LT T-Mobile, the towers from our of the segment towers are agreement Form significant close historical expected pending as an Tower transaction. provide operating contains change at from is to XX, master presentation well operations the to incremental and

in OIBDA X excess be decommissioning expected such post years and that including Changes investor for nonrecurring financial determined include margins segment, our future post not critical projections. Further, is could As close, can in X estimates assumptions, XX The transaction financial presentation. margin excludes of The events close, estimates found post-transaction a transaction result, XX%. July the adjusted to we expect the projections these costs. longer-term these for assumptions in have we operations expenses impact long-term be and strategy the Tower to as close. tower that

projections months working delivered of operating further capital to prudent capital. financial decisions UScellular is strong adjusted XXXX and these in flow, change of the are million $XXX free cash as strategy mentioned, and both subject and OIBDA growth on that free X cash So are of Vicki developed. Briefly through related flow management expenditures first

guidance Our track financial issued XXXX we year from of deliver on as our this we plan. financial remain on to the Slide February remains XX unchanged guidance on in

the turn Michelle? Brukwicki. last capital to quarter, full to mentioned XXXX guidance expect lower the call as reminder, and than over a XXXX As expenditures. I of for year will less end trend we our capital expenditures now the range toward Michelle be

Thank you, Doug, and good morning, everyone.

delivered XX. happy Slide line report Let's our top growth turn to nice quarter. to strategy and again bottom that I broadband am this

X% increase and Some X% X% highlights in include a increase a a in EBITDA operating quarter. connections, disciplined residential residential ARPU, adjusted increase in the due our in a increase management, XX% in revenues, to broadband expense

quarter. addresses continuing addresses service to second XX% results, In including are we year-over-year, in the grow addition new strong financial to delivering footprint, expanding fiber marketable XX,XXX our

to We addresses. We're are making bundle. good adding fiber on XXXX our our progress progress of wireless XXX,XXX towards goal marketable making also

NCTC partnerships. During the established we the MVNO the officially are that through second market we quarter, entering announced

will of plan of a plan customers. Initially, expansion products competitive and all over be adding it to offer We to begin offering will for customers incumbent Our full it mobile and in to complementary we Mobile offering year. be cable. to to product select enable broadband believe product exclusively TDS services suite will our and in will we broadband areas. us it that be to portfolio offered called later time, But markets, this offer our our and TDS our Mobile,

We closer market device will to provide and pricing information launch.

you where are our see scorecard. on XX, Slide to Moving we longer-term can

at we of XX, fiber targeting with our are fiber. the that speeds are growing quarter well our can our Slide addresses up markets XX% gig XX% XX% see incumbent This be of at are to ended total the fibering gig as of market. addresses service higher fiber to We We We're our addresses million the XX% with quarter as with marketable fibered footprint total our in are finally, to we or ended year-over-year. XXX,XXX. reflects speeds. On service ILEC, progress increase XX% finished addresses. quarter also in And served up. offer least service of We growing our In targeting by a expansion our expecting X you footprint. through with X.X We XX%.

of As broadband up greater, with XX% from of slide, speeds the or the for see second ago. taking customers side increased higher on right we per shown XXX year demand XX% a our megabits

higher our We continue fees gigs plus or customer X to gig take rates end at increase the of the and with XX% availability on speeds of of these customer the quarter. growing, are of base

to Turning Slide XX.

You we year-over-year. broadband quarter, to X,XXX connections the which residential that residential in growth in see broadband X% can net adds contributed had

As teams into and those new our addresses, selling addresses. marketing we deliver fiber service are

we delivered X,XXX quarter, expansion net in residential adds our This broadband markets.

While results, adds this slower recent with expectations did this is come net our consistent quarter. than in

at in aimed penetration ramping We strong. of growth. targets. Overall, the coming to our markets and fiber revenue over focused place quarters, have on are are and EBITDA broadband plans sales our our remain contributing we These program adjusted the fundamentals achieving

expansion are is most expected, markets to business Our the seeing and networks are cost-effective efficient more run. fiber markets than case our that we're

more a impacted We this Now that comments few events this net quarter X on adds. discrete metric. had

teams by equipment. that disrupted Ruidoso, of Service markets of our to homes, customers very was back thousands New hard online to and as plant customer possible. as customers was one First, Mexico have devastated wildfires, in get businesses been area, damaging and cable soon working our in

We of winning services of and related customers those have broadband connection June, to back aggressively approximately XX% end community broadband to fire. to customers or are losses win of the work now back. X,XXX the to As the reestablished we had those over

quarter. the during Second, the ACP program ended

other that only needs. ACP chose great Of customers customers, XX,XXX X,XXX of a plans getting met broadband on their to disconnect. our job did team Our these

ILEC in competitive been our our our program, we X strong ILEC cable even across DOCSIS specifically, markets delivering from speeds ILEC, are fiber, have from experiencing upgraded A-CAM our discrete more to able network get over markets. a we X.X. gig This next overbuilders support we With defend markets. But increased these we markets, industry where have capable with will addition of these In in trends. product And have our few our enhanced pressures into is consistent and events, there's effectively compete. using cable to copper we more fiber in the and to years. And

certain overbuild continue In in new strategically in our to to in areas save we cable trends, with markets, consistent our greenfield cord to customers cutting. continue we fiber with response strategies video fiber we addition, all win In implement networks put competition. Also industry builds. and evolving to industry experience and we

attachment on has we than the addition, revenue impact year. video and been full continue, expect trend rate have will to In an our planned lower which this for

and Now connection revenue revenues. increased per With we primarily broadband in Average turning middle price revenue residential the per X%. was to residential user, X% in growth connections saw This graph. increases. due to increases

delivered million residential compared markets ago. to in expansion $XX Specifically, revenues quarter $XX year million of a the

the by XX, see and Operating the commercial can in expected, CLEC residential decreased revenues revenues wholesale as in enhanced revenues have X% quarter A-CAM X% increased revenues. quarter the incremental continue And as X% to markets. decommission receive the partially lastly, the were up to started revenues Slide was the quarterly due we growth to offset commercial As our wholesale you in under revenues decline program. On performance. in we our

coupled are last XXXX we connections expenses XX% in planned. Slide a nice and our grow, quarter. adjusted shows in $XX fiber from EBITDA, in with Capital the seeing year XX quarter, in decrease guidance. were million for growth up as our XX% the X% down As the quarter, expenditures revenues cash

broadband be be billion now As we're the than $X.XX and been to adds slower. the previously $X.XX ramp-up projecting lower expected of mentioned, billion. has to net to in of planned revenues video range Therefore, connections are

continued Although strong our has revenue management. lowered, is being to range expense team the exercise

OIBDA As ranges a million. million result, we and our to to now EBITDA are adjusted raising $XXX $XXX adjusted

higher any our With making increased capital to originally capital, adjusted EBITDA changes flow free guidance. expected. We expenditures delivering than we anticipate are and not cash unchanged

years, few EA-CAM fiber program. year priorities expansion As been for program are we've next the both our will continue balancing doing and the we the all and of

will planning at We I funding. In them to within while for including meet associates communities closing, and call our our want to staying Telecom now TDS our over are their Colleen. the thank keep and priorities, to turn carefully all pace both caring and carefully programs on back strategic customers of for to focus the build available engineering our managing progressing a spending. I our commitments

Okay.

we're will question. ready up the first We for open now call questions. Operator, the to

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

the one. Rick? Rick? next go Let's to

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

A questions business. LT tower couple the question. of just a Maybe first for one, about the broad

of at And a portfolio? areas for your tower look market main strengths co-locators, guess this of at what I as the to transaction T-Mobile you What you forma your closing, are selling improvement? portfolio be would level, pro As the what points high in are some opinion potential towers? those

miles, diverse effective The next networks. co-locators, really provided towers It's new to have mean the think, tower mile, within do try of the where our geographically portfolio. X We've towers geographically there by the are et miles, to their a people few densify and are to geographically strengths, in What relatively not One, today. up be that? right X.X a will And a attractive over time, about unique. I competing cost tower There's particularly themselves. to to I just detail X attractive. miles, past that as exists evident tower towers portfolio are in that put cetera,

our And portfolio. The of so to a grow rate. the simple, opportunity key attractiveness I think, the is is geographical co-location which uniqueness, that is driver of simply

There's the and expenses small, quite expense things running the lot portfolio, portfolio. in tower right? that the if whole towers current presentation, around of and in the you One the do of investor that this not underpin math the the a provided margins these we information both on forecasted that, are

colocation driven and the And larger so the rates. driver the some players tower is of entire by profitability ourselves of in industry in delta other between the

the margins as flow rates so margins to line. time, And those both bottom drop those cash expect can over and increase. And that colocation to steadily you straight increase that's the we

that's both we're question, we the attractive about asset, optimistic financials. grow answers steadily over rates this Sergey. and can an so why And that that will think we Hopefully, those colocation that -- time, segment. It's your improve

Great. another specific question And maybe towers. the more on

a be MLA on XXXX exact to won't towers. those the known -- selections incremental be their list new a signed for T-Mobile tenant time. But or exact elections full Obviously, So some of

you think I the transaction months closed. until XX indicated at

overlap tenants So with depending to might X,XXX XXX could selections, be on co-locators. towers their could towers with with the and differ other between up -- I mean, you it without end

question, between looking how how and then And the for those So to market be kind having to you degree what this would transition guess, and I balance versus market sell? towers towers? would now able those co-locators them be of planning without decommissioning would you to

creates for we of towers the have that you us, potential, where around Because Sergey, that somewhat that larger up co-locators, the the so you towers the equation right? naked meaning they that margins majority they at of simply result that creates majority have because instead, which the it at will not now tenant, create with interesting Yes, of select will have better we -- T-Mobile once the conclusion attractive are that, an the existing of on will -- towers be impacts towers on one margins where the uncertainty on on. but long-term on, that the It's it. completion already financial that the current towers a mentioned they currently more -- more end co-locator, transaction. know -- have do mean will . If is they're it towers we that growth be an but if more the towers have we co-locator

And naked we will what think so determine with a foregone be do decommissioned. is to towers. I necessarily those towers conclusion we'll do that have it those not naked

get can co-locators. transparency as that in with marketing orders We talked just those a more tower of work coming that and months way to we lot going into about, have other different the are I T-Mobile's do we portfolio plans. Nothing potential that we're to towers. And the impacts we coming that things that out

to capacity to is to our speed do marketing towers not have efforts. not down. spectrum ahead is on going isn't densify in expect our And of had. expect is into densification I'm right? at mobile earnings in environment, slow. So I continue to there in new towers densification completely this of don't spectrum the the have portfolio industry, Nothing going XG the that's kind in colocation and into this we steadily is environment because can towers. on to to the And deprioritize potential increased mid-band or in other an and mentioned end in cause obvious don't from an would that is other industry is full There the there support active those believe co-location you what we're as capital the to industry, it. And capital that that overall that cause what approach we over and in entire marketing, our slow, independent now before time are an towers new is that, XG. spend for our spectrum that of going And improved to our XG to wireless somewhat they're but it's the there business we're needs will increased we our -- back And a over to pipeline, to I co-locators, out T-Mobile the order you'll terms in see players tower demand because tower for in other spectrum comments. trying we're wireless data needs than be spend to their to back temp the and even pipeline we play to to you going out the indicate rollouts firmly guess co-locators get the seeing mean of affects which consequently -- so is industry ability quite to is the right of is I and continue. And This what a continue. If capital place in capacity to right? spend capital for to have put rate phenomenon. What try on whole co-locators. It get rollout, happen and to be there new end people to deal. of support prioritize similar their going have of is, going to is approach the those in come players And terms that that's a going look our to time, marketing bunch more likely are

in we're opportunity right, the grow long to the so that co-location. bullish And about run,

And we're other very T-Mobile they aggressively of so [indiscernible]. to lands and there completely irrespective marketing that where towers those will that's why out and continue, towers which co-locators,

Got question it. guess wireless the on segment. I And one Great.

in I mean you are of back expectations So in the obviously, postpaid terms kind what subscriber for of At improvement and half phone trends are if improving what of of you drivers that, level, X had you an some initiatives? had for high your pinpoint of that or those losses. terms in work year X the of those initiatives the

simple pretty equation. a Yes. It's

going your If adds, can improve gross generally your adds. net you and churn you're to improve improve

helping churn. effective when customers, the in under we method so Days about during been it contract, existing so comes out postpaid reaching them that's market US to US my And an we've with offers. our And and been back have commentary. Days our to aggressive talked of getting

removed in a point offers now planned to attractive trade-in many removed right mix at really price requirements that's marketplace have have the times and we customers. We've requirements. We

gross to drive just terms share offers gross attractive of adds. are performance customers of are helping those improved add so And in that

but notwithstanding down we accomplishment impressive see the deal. think is improving, the gross which pool overhang if of down, our switching an adds switching share the is being about of the you pool Now

You can it taking us expect existing in pedal foot be our in to aggressive to marketplace. gas customers. see the We're comes continue investing off to the when not

invest And churn can get in us So customers. those see retention aggressive promotional you new in bringing to offers, down. to offers continue

full ahead for rest us And be so of speed going that's year. for to the the

don't I the rest what -- think to of we're the in for going think marketplace you're now. off you seeing year. be I probably backing the right that of can

that that and be we we this, a this in right? competition And not operate so now. Obviously, right We we cautiously still. mentioned expect highly do can sector. operate standing we our continue competitive have optimistic I'm momentum will I --

And able have with so to we've on both adjust pleased on and accordingly. we're to been what process. I'm But going drive to retention

And my side. telecom just to is question Michelle for Great. last

you own a private we're you and So and wireline fiber do potentially those sheet. be do they wondering keeping partnering would just seeing wireless infrastructure or on funds equity [indiscernible] deployments, rapid was rate with what at into companies than could your you if I their balance what able share to on more thoughts to to your that you? such markets? in to they those time lean are opportunities those some relevant over factors the to And are might lead degree or attractive to How structures of structures are not?

well. Sergey, I'll the and comment question. add want to thanks in for may briefly Vicki as then

strategy, financing program fiber alternatives as can we've advance have we strategy. that help developed our considered different lots years, our of the us Over

whatever so landed of to this but best of really. we over have alternatives, different and open enterprise. of be evaluated primarily last I be preferred we've some couple been for now, And -- continue the through that funding things consider open equity would it has be And some would we've is whole think success a enterprise, issuances the right structures, really debt where would we various to but we thing the we the years. And various we've variety right we've be good been to types had with to structures for and

you all? at to want comment do Vicki, So

in T-Mobile UScellular at Right with Sergey. as well including where very on the and the us, remaining transaction wireless at we monetizing our included business in of that was transaction. now, the now, transactions right the And the deals spectrum front as we is is have level. Yes. not T-Mobile that focused the are focus that TDS

with program you of and at XXXX. TDS in we a So improved our into we're of go the leverage fund that's the end are our consolidated forward where level. at really comments, focus fiber remaining leverage our standpoint a in the prepared And my and heard good year liquidity from the as as to we are UScellular the position pleased where from is at the at both second quarter. We've -- we with

quarter. at. that had growth so in And And that's bottom focus the is that already the with top line reported driven our we as well really where is Telecom we've Very strong TDS overall growth. line strong pleased as investments the from made.

So over into that penetrating the new company households is we've just the enabled year. with last broadband investments very capital penetration, on focused our the

Rich Raymond of question from Prentiss from the line James. The comes next

mute had Sorry, double I secret on.

Okay. Good. Yes.

Sergey, theoretical side both specific lot question, about on all operating of fixed discussion with from your mobile, a convergence, LT kind how to side side, and units? are even then and maybe first follow viewing I'll Michelle Obviously, Vicki and So up maybe you convergence of

Maybe is start. in as opportunity, I'll marketplace. Michelle because clearly hand I'll So my a it right? trend I convergence, threat the the to it is afterwards her -- Rich, view

from of below to success growing still your the whatever I Their where market is different means there's industry wireless share share right? cable about reaches their of why talk in market share that bundling. that? a has wireless cable add. had different it at is wireless just the lot things fixed You an market gross for see and room still I'll [indiscernible], a in significantly to for them is are simplify generally equilibrium people. word And convergence and that grow. And of Maybe it mean terms we share so

large well, small that not it players doing a just use churn, the the that equation. and subsidize able the then that's to cable one And help you're from product cable to you help you stream If can that's players profit with another doing. see good something

T-Mobile in in our where And because help because expanded in keep wireline think pace the players. speculation I'm does order down and differentiate their because why to be expanding the necessarily to converged cable forecast big that's included, offer say, smaller offerings the desire the -- here why to out is AT&T an to Telecom presence look it's their in is offerings. that power so very okay, cable fiber players wireless or and see or also public footprint, Well, don't offering anyone wireless because Why or larger start of our just we you players, fiber of there, they that you to these at offering we order churn we footprint. as expansion bundled of not bring guys. And know about or obviously, either forward speculating T-Mobile wireless the my expand the if that? well, is footprint, and a see what speculation cable why by else in we'll footprint. I TDS AT&T cable going with of the these pursued my do. it's But has guys, of been I big the strategies

offers. this And opportunities to challenging so offering. there's to wireline. makes it us wireline for not have wireless don't there do services wholesale wireless a provide nationwide do. There wholesale And players scale our approach a players is something for that because -- MVNOs. is access are wireline to Wireless wholesale I to commensurate

offer? in I to do for match a very those single so offers. Do U.S. bundled think I And the difficult bundled No, wants not. us every it's customer that

room market, a but of a some out for And so this still threshold threshold to there a I there grow. has of kind it's is lot but that think

quarters we frankly. as been very about earnings business. our our And to that so calls in years, do We've transparent in view a threat and it the last

on. -- aggressive high-quality Michelle's price keep a definitely network is it from threat competitive think and think point a a can so we but on very eye it's yes, perspective we so We we and effectively And perspective my an something compete we compete with close opportunity. And [indiscernible]. it's

you at a can is bit maybe little Michelle, it? so about talk TDS And how looking

wholeheartedly said, LT for question, with. the and Yes. thanks Thanks, agree LT, Rick. Actually, I what

space. are excited be a to we from perspective, into this getting Telecom TDS So very

great As this LT important the convergence. opportunity it we level definition set on is But sure for is that to mentioned, a make of us.

for to from years. same attractive as providing bundling. of of at the who we've both provider. And wireless work. segment believe own our and do bundling see to the many more We market to that not also want is the this But We services you wireline customers more network both it of the buy MVNO this the many, a have opportunities for looked make

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years. demand developed, developed the the ecosystem developed, few So the customer last economics the over

and demands to. able And and our in this out of that get service for meet us the market product so think we and is selling to into we're this time really the round the order needs customers set perfect be to the that to broadband

questions other side. from of couple my A

what pool, subsidies does the other to opinions hot and prime do An AI time intensity, some next-generation be the iPhone, might guidance? competitive of switcher baked what what's ready into push? quarter wireless, it the an overarching is Maybe on is this of One kind your AI AI-phone topics and for question.

-- would it of it's in X X Rick, tackle ways. I think I

on some device think the too it. The revenue Samsung early it's equation, AI I side to tell. the into of last capabilities attractive built really had

I awfully cool. think they're

I think they're our a of cool. customers lot awfully that think

those in We haven't massive share, to Samsung market with seen capabilities. a change right,

like. And those that's going know progress. a has made obviously, capabilities I think Apple are yet We to what in look some announcements. work so And don't still

is so to side we see starting on the aren't projecting on think AI cost and shifts the opportunities major that where side? numbers And any are capabilities in we the interesting based on our AI I some of do revenue equation.

the touch in next an And how centers, our into center link transition our so already education over space. kinds of to that as using them digital AI. interactions, serve have those our on effective AI so expect the best also capabilities of do capabilities enterprise will we customers across points It's time can we offer, best various we're can that I better, care more care

the being And more near term. traction do that's think able costs, to I you're to in customers, able see to being better so where AI going on better serve manage

the early tell long it's the think that too side, term, to but that's to going very On bullish actually show in capabilities the on when the on up provides I it device numbers.

of that spectrum. Okay. Last Vicki on monetize. the Kind we one we've got spectrum. times, of me mentioned, and X-pronged everyone for several Obviously, questions of the more spectrum kind has is could

spectrum balance think it guys closed, sheet. spectrum If to were the mentions your you move is being assessed wireless test And out the of selling the exceed you in transaction of what kind carrying that and served could spectrum on you the you're of kind T-Mobile outside value T-Mobile fair the how saying that that it your -- forward what came transaction. and are in secondly, inherent the you're the wireless with deal customers today? And impairment I before since the approved looks the you do spectrum, is value like keeping XX-Q,

So what just kind of means? or price based update that stock that wondering, an on is

a the on of we questions an little on. process active bit most spectrum punt because have going Yes, do Rick, I'm going to

we've ensure customers. specifically that I'm away And transition probably designed to going of for T-Mobile tell our questions. process-related you in What mean, with some value-related talk the and -- a stay it can is smooth I to to the so transaction is, I

lease customers. and the they're no that really spectrum network experience served, were the spectrum and why a no was good that so acquiring we saw that our after year that transaction, our in change for make transition sure reason could the decline So did of not to T-Mobile and properly is we a it we customers even

bringing ensure but not to bear be to is things change T-Mobile of to customers. We're either X, spectrum no customers, with One our that's better on experience, see the a T-Mobile going day as ideally to more we've you well. to the And that worked customers just or right?

smooth that transaction that it's to designed sure make transition. so been the a And has of portion

process because for going For go-forward and a bit that to an me active we it's comment the only going punt on, have appropriate on I'm little on to further not spectrum, do that. probably

Yes, ahead, Doug. go

year, year We carrying at that well, spectrum every assess least Yes. to value, With in the fourth that every quarter. we're do impairment. for respect required to the --

test value valuation we step than effect So that do the value. accounting did a fair was called what's the and X a greater carrying

do that, that have to on make we recent So that we data use assessment.

place. that As was would a you if if we've that any on know, know, and signed had you this in been process agreement as making comments Rich, be definitive only we

you updated. keep we'll So

sense. Make

I think, LT be can't to is your point, the that customer experience something damaged.

factor way into into that anything deal, may saying so safe a you you of might T-Mobile the And factor would go spectrum that it. be on with

next of The Atkin Jonathan question from the RBC. comes line from

given the your CapEx, A it couple business. And as for augmentation what appetite require portfolio, when UScellular I existing build-to-suit? multi-tenant? towers to might was simply the were that -- your of be do [indiscernible] tower of to extent would built, about questions most about wondered secondly, -- to the these what opposed when are settles, dust

currently long-term it in that The business for the What path a build -- projections those Jonathan, It's in to reflected we doesn't only idea having still our the Good to months business. I to path be build-to-suit areas X you. capital, built right -- We we've I There's coming so build-to-suit yet. of with mean that and that change revenue something be does right of the experience. we're the of things working when towers on of built know tower in to and don't the I projections terms provided. strategy quarters. no right? I think enhanced spending we mean? today, no from more it's we're didn't guess provide is into currently pursued, that it, tenant not mobile We I the place. capital, different those That's rural not going through mean It differently -- in you bit going we can't tower build-to-suit answer the for that a one terms our towers operate that is though. And strategy We of strategy. that in built the on the towers the the about what mean, forward time coming good hear forward that there's welcome. to in towers, average. little so that's part a the in

multiple have of long-term provide of you pretty our to towers, us tall that's Tall So key to tower towers America, have centers. do? you been to have enables enable pretty a we We and enable a wireless towers space broad ad all kind right? proposition. What tall tall for portfolio that coverage to part rural

incremental a multiple if can add capital bunch of centers, incremental so without whole co-locators you And on got any you've effect without in ad capital. an

also as the part presentation. we investor so in the provided that's that projections And reflected of

question needing your segment grow do to add opportunity grow cash [indiscernible]. think And co-locators of to so tower to have a I that way that add the to the we existing on spend to revenue answering bunch whole continue is, different of margins continue segment a and capital to to flow our from tower without

forth. more and to Two of appetite Maybe where leases stand point answer. that at the want extend just ground already on around to by some foresee need you kind enhancements Good improvements kind least Are capital for Or level ownership. back and you you using don't at set or that things us of administration -- to back then the activities company them. making? be? associated office there of And so you types control tower or are with lease where

the and dramatic there. shift a to mean before we will we that as a have steady don't you of see those a lean It run separation. finding arise. From do doing drumbeat for don't It's have we of continue. ground in forward. from that opportunities in continued. a a the we put a dramatic leases We So a the look we'll on steady we've We opportunities. back-office means to continue our because ground organization. take lease financials it, be think going that that, had to perspective, It been and shift it we perspective, strategy don't doesn't did rhythm And opportunities also

able work it, that's It's call ongoing. A that UScellular, see tower the to be number asked inside company. the and let's support expense. inside so to organization stand resident tower a operating they're opposed organization be us lean the company, work to the adding is is more, tower being parent thing continue coming I isolating we reflected adding lot wireless to the of company, TDS, work right? do So functions I the about going financials that that resident of put will it, isolating highlight to incremental to in it that our so quarters. But continuing you it tower or The company is, up work it's don't separation. forward. That after in will the to to of for one We towards incrementally as independently to of able company and

be would bolts to for that add the of done work the question. report, It's in that wireless I clarification inside nuts And And but that when we a incremental that being so expense, tower say the it's being more you that forward. what of civil isolation, your that our simply clarifying, work it's our may co, big business if financial wireless statements. if answers currently and engineering done on see -- being be that work clarifying expense to doing operational to that from example, I support moving engineering are business to towers, co not civil change of going tower don't moving

would remarks. back turn floor to the to I does session. Colleen Thompson like question-and-answer closing that And over the conclude for

any today. everyone, have Okay. time questions, Please your weekend. a additional Investor Relations Thanks, and with for reach out good to

Thank today's participation. conference your concludes call. you for This

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