Q3 2020 Altice USA Inc Earnings Call
Delays, and five Apartments adjusted for us and credits. We would still have seen an increase of 840 basis points year-over-year.
Turning now to slide 15. We continue to underspend on capex this year relative to Prior periods a total Capital intensity for the quarter was 8.3% in Q3, but with fiber and new home build growth Investments. This would have been 6.5%
This quarter we did complete our 1 gig roll out an Optima.
As I noted earlier, we remained impacted by permitting delays due to the pandemic but are focused on accelerating all of our Network initiatives and continue to invest in our Network anticipating that we will see permits changes in consumption behaviors cost much of our customer base.
Furthermore the combination of hurricanes Isaiah's Laura and Delta has led to some one-time capital outlays in the third and fourth quarter to repair storm-related damage including replacing a fiber ring in Louisiana month. However, we continue to expect cash capex for the full year to come in below one point three billion dollars.
So the next few years as we build our fiber an Optimum we continue to think that we can comfortably operate and the one point three billion to one point four billion capex envelope and complete our various Network up initiatives.
Longer-term we think that remains significant opportunity for a reduction in capital spending to below 1 billion atoms particularly. Once we have completed with our fiber upgrade in the optimal footprint.
In summary, we continue to feel very good about the long-term potential of our Network to deliver Superior connectivity solutions to our customers at a reasonable cost.
Turning to slide 16. I'm very pleased to report another very strong quarter of free cash flow performance.
With our results in the first three quarters, we have already delivered more free cash flow year-to-date 2020 than any prior fully we generated $450 in free cash flow in the third quarter up 176% year-over-year generated 1.46 billion dollars in free cash flow. Year-to-date our free cash flow per share year-over-year and the last twelve month basis has increased 72% to $3.06 representing a significant yield relative to our current share price on the quarter a cash flows from investing activities include a 150 million dollar outlay for the acquisition of Service Electric.
What cash flows from financing activities reflect the number of transactions in the third quarter? We saw a cash outlay of 433 million in Q3 for share repurchases in July. We receive the sum total of 1.7 billion dollars about 5 3/8 percent guaranteed notes due to do $2,023 and 7 and three quarter percent seen your notes do 2025 that we refinanced in June which we discussed in our queue to call.
And in September we received proceeds of 865 million dollars from bond issuances from our iPad financing which is being held in escrow until the transaction completes and which appears as restricted cash balance sheet this quarter.
517 presents an overview of our pro forma capital structure inclusive of the new life had set set.
Pro forma for the life path transaction the Consolidated LTC USA net leverage on the last two quarters annualized ebitda basis is 4.9 times.
Cablevision like that LLC is now an unrestricted subsidiary of CSC Holdings LLC in September like a trade new debt of 1.465 billion dollars, which is held within a month that Silo and his non-recourse to see a c Holdings LLC.
This includes six hundred million dollars in a Term Loan facility priced at Libor plus 325 basis points, which has not yet been funded.
450 million dollars in the new seven-year senior secured note notes priced at 3 and 70% and $450 million of new eight-year unsecured notes priced at 5 5/8 percent off. This represents a blended average cost of debt of 4.3% of the light path level and proceeds from the note of 860 from the notes of 865 million dollars are reflected as restricted cash on 8th Street this quarter
Cable is an iPad Pro form of that Leverage is approximately 6.9 times on the last two quarters annualized basis.
Leslie c a c Holdings LLC is reporting net leverage Pro form of a debt and Equity proceeds from the light fare transaction a 4.8 times net debt-to-ebitda on an LG q a basis.
On Friday, we provide an update on our interest savings initiatives.
2020 will be similar in cash interest expense to 2019 due to the timing of our recent refinancing activity. However, our current run-rate implies that we expect to realize over $2,000 million dollars in cash interest savings relative to 2019 cash interest expense on a run-rate basis going forward.
And zooming out. We are very happy to illustrate that since 2017. We've taken out approximately 600 million accumulative annual interest savings.
In two or three we refinanced at one point seven billion dollars of 10 and 7/8 notes via an add-on offering 12:00 4 5/8 unsecured note. We have priced in June for an effective yield of 4.6% We also refinance 1 billion dollars of 6 and 5/8 see any guaranteed notes into a new 10 and 1/2 year note and achieved a record-low coupon of 3 3/8 % dead.
As far as low. Cost of borrowing to 4.9% in to 3 from 5.4% last quarter for CSC Holdings LLC. If we were to refinance our entire CSC Holdings LLC dead at similar levels leaving the life had been to the unchanged around you will interest expense would come in less than nine hundred million dollars additionally through the refinancings. We extend it out. What's the average life of debt to 6.9 years this quarter at the CSC holding dead silent.
We no annual.
Maturity is greater than 1 billion dollars before 2025 all of which could could be covered by either free cash flow generation for our undrawn revolver.
We will continue to proactively manage our balance sheets in the same way going forward and remain very proud of the progress. We had made and comfortable with the strength and resilience of our Battle of our balance.
Finally on flight 19. We provide our updated outlook for 2020. We are maintaining guidance for Revenue X mobile and adjusted ebitda growth this year.
Wendell live at 0.2% Revenue growth X mobile year-to-date on an as reported basis, but this growth would be 1.3% excluding the RSN credits.
Total adjusted ebitda growth the other day just 2.6% and we still expect faster growth in Q4 compared to the first half of the year.
We continue to guide to cash capex of less than 1.3 billion dollars including some temporarily elevated capex to address storm damage.
A leopard frog it remains 4 and 1/2 to 5 times on a last two quarters annualized basis at CNC Holdings LLC, which is a level at which we are very comfortable given the favorable financing and Thursday. We would likely to remain towards the higher end of this range of the short-term.
William. I'll share buyback Target to reflect the fact that we have already completed one point eight billion dollars and share repurchases as of the end of Q3 and now Target at least 2 billion this year up from 1.7 billion previously this level of share BuyBacks is consistent with our leverage guidance of around five times.
To conclude. I just want to Echo textures remarks and that we remain incredibly proud of the LTZ team for their dedication and resilience during this time, which is once again resulted in a very strong quarter.
And with that we will now take any questions.
As a reminder to ask a question, you would need to press star one on your telephone to withdraw your question. Press the pound key or possibly just a moment to compare the current roster.
And your first question is from the acoustic JPMorgan.
Hey guys. Thanks. So a couple of things if I can first Mike you just talked about guidance for a second. Let's go back to that at this point your guidance for growth Page Avenue and eat that leaves a lot of room. Can you say again? How do you think about sustainability of of growth of both of those in the fourth quarter and anything you can give us for 2021 at this point and then second can you dig into how she how we should think about taxes in 2021? Have you run through your nols with a light up tail?
So on the on the guidance, you're right. We are we are a little open-ended that we're guiding towards growth and I think we mentioned that we do continue to anticipate accelerated growth in the fourth quarter least in terms of adjusted ebitda relatives of the first half of the year. So I don't think we're going to get any more specific than that. So but that's kind of where we are on Revenue growth. We will have some headwind in the fourth quarter. I think we alluded to the fact that the month All rights and credit adjustment we made in as of 9:30, we'll have an additional element in the fourth quarter, but absent, you know, even given the RS8 credits in 3 2 and anticipation for two we still guiding towards birth.
on taxes, you know we
2020 saying that we would be a full Federal cash taxpayer in the beginning of 2021. We then got a lot of benefit from the cares act in terms of enhanced deductibility of some of our interest expense and we push out the beginning of 2022 now with the light pad transaction, we're back where we were when we started the year saying that we anticipate being a full Federal cash taxpayer in the beginning of a very early in two thousand not the actual tax burden in that year. I mean, I think yep.
I was going to do I continue please the actual tax burden in that year? Yeah. It's somewhere in the able to 400 to 450 million. I think is a reasonable Place holder number we continued there's always room for strategy and and wage, um some efficiencies in that area. We're certainly pursuing a number of channels in that regard.
That's helpful. Thank you.
Your next question is from Craig Moffett of Moffitt.
I a couple of questions first on broadband arpu. I'm just given how complicated the allocations within the bundle get and with the RSN disco and that sort of thing. Can you break down how we should think about Broadband arpu growth now on going forward in its components of upgrades and and Thursday and then unbundling the bundle discounts and that sort of thing and then just a broader question. If I look out further given how high margins have gotten. I think he once said you didn't think fifty percent margins Dexter were out of the question for this business. I wonder if you'd sort of revisit that and what you think the the ceiling on margins may be as you look out now that you're actually getting reasonably close to fifty percent margins.
Yeah, he Craig just on the Broadband arpu. You know, we're so Broadway in our food grew by about 11.2% and I think Broadband Revenue was fifteen fifteen and a half percent. So the 11.2% breaks down, you know very much like in a previous quarters when we call the South about one-third of its accounting one third of it is is is is growth and one third of it is up sell. All right, so that that's pretty much what we're seeing consistently here court order. So, you know, if you if you exclude the the accounting allocation, you're looking at kind of a an eight percentage type type cash-on-cash wage growth in in Broad band or group.
In terms of how we're thinking about margins. I mean, you know, I dunno, you know, we're running probably in in in certain parts of our busy is north of 50% today, you know clearly the the shift here away from video and more focused on broadband Broadband upset and and higher Broadband arpu is going to help accelerate that margin growth and what we continue to do obviously in terms of our Capital expenditures and an infrastructure, which we think are going to help us drive lower customer interactions. And also a continue to drive higher gross margin products. Yeah. I mean, you know the first get the 50% and then, you know ask me the question when we get there and I'll hopefully give you some more guy and going forward.
Thank you.
actor
your next question is from Brett Feldman of Goldman Sachs.
Thanks, you know at this point we've seen that some of your Chief competitors FiOS and and agencies fiber business obviously had very good quarters including that did not in Impact your ability to put together a solid quarter as well. So we know that the question we keep getting is what is the competitive Dynamic like in your markets between you and your fiber competitors. And and are you seeing them in some way up their efforts and and have you had to make any adjustments and I think we're really trying to understand what's the run-rate been like, you know, as we move past that their quarter and look into this corner and and into twenty Twenty-One. Thank you God. Yeah, but I think listen, you know, we've had uh, you know, they're all all disclosable metres. He's just outstanding throughout KP eyes across the board from customer to broadband growth.
The numbers, you know, I saw also on file with AT&T were were good very strong numbers in to 3 and we haven't seen anything particular from either of them in terms of over aggressiveness on the marketing side, but it's you know, I think there's there's business back to usual we saw off the less present in Q2 given some of their labor issues in terms of installation. And so I think they're catching up a little bit there. But you know, we're still am I directed eight eighty thousand, you know about 125% higher than we were last year year to date in terms of broadband subs. And so, you know, we're very focused on continuing to grow or our customer account and our Broadband energy use
And so we've been able to tonight if we defend all the gains that we got in at the end of the q1 and the balance of Q2 that we're not seeing anything outrageously different from from competition out there, you know, despite the fact that they've got strong results.
Thank you.
The next question is from Doug mitchelson from credit Swiss.
Thanks, so much texture was hoping you could you know, remind us of some of the facts around fiber cuz the 44% selling in the market is footprint for both sides is pretty interesting are dead. Now you're scaling gross ads is the cost to connect fiber as you expected. And can you remind us what the timing is for when topic savings from the fiber Network happens? It happens. When you connect the customer when you collect the lots of customers or when you were all all over to fiber and and turn out the coax Network. And are you starting to see fiber build and fiber connect costs and customer reaction a successful not to the point that you think, you know parts of Suddenlink makes sense for fiber and then for Mike, I just want to make sure I heard it right you said four hundred four hundred fifty million was a reasonable Place holder for cash taxes and tags one cuz that'd be I think something like a 33% tax rate is want to make sure I heard you right.
so
I don't know. I hit the fiber question first. We're still in the early days on the roll out. What's what's obviously very nice to see is how the selling rate has has picked up very rapidly quarter-over-quarter. I think we're still in in what I would see in terms of efficiencies on on connections and installations. Not anywhere near we will where we want to be in terms of the time it takes and the cost it takes to to connect our fiber subscribers, which is absolutely normal which as expected in terms of training off our field techs as well as just getting customers very comfortable with a newer technology. So this is going to be you know, we're going to continue to monitor this very closely put a lot of resources on the training side to improve on the efficiencies of the connections, but we see just the very very huge Runway ahead of us in terms of wage.
Pent-up demand for this product particularly as people work from home upload speeds become more and more relevant out here. And so I think this is this is more of a store rep that I think we'd like to continue to have interaction with you guys on from quarter-to-quarter as we grow the base and start having some data points that we can share. I think it's a little too early today and to your point about cost-effectiveness. I don't think we're there yet in any shape or form as to where we want to be. I think in terms of what we want to do on the Suddenlink footprint off, you know, we are laying fiber very very deep into our new bills there which effectively allow us to adapt to a fiber of the Home Technology package. Should we want to do that last last drop or in-house wiring in terms of fiber, but today I think we are going to continue to age
To to to focus on the plants by and large on Suddenlink, but we will look at Pockets where I'm certain that. We're going to upgrade to full fiber to the Home Giveaway doing in terms of edge outs and how how we're positioning that
Thanks, and then dog in response to your question on taxes. I mean, I was giving you a rough estimate. I may have heard a little on the high side, but certainly not we went out using a 33% rate we continue to use the 27% effective birth to the states and I did mention, you know, we certainly have opportunities available to us to kind of manage that number down a little bit.
Perfect. Thank you both.
Your next question is from being swinburne for Morgan Stanley.
Thanks. Good afternoon, maybe Dexter for you. Two different topics one. You mentioned a video selling rate has continued to Trend down. I'm just wondering if you could remember roughly where that sits and maybe that's a good way for us to think about where penetration settles in longer-term. And then on the edge outs 150,000 homes a year gives you guys a nice kicker to sub growth. I'm wondering if you think there are opportunities to go bigger than that. I know you're focusing on Suddenlink, but and maybe there aren't opportunities and Optimum which is obviously a pretty well-built out area, but I'm just curious if there's you know potential to sort of maybe take that number even higher based on the economics and then returns you're sitting around Broadband bills.
Yeah, I mean listen.
Then just answer your first question first on the video selling rates for in the mid-to-high 30s. And now, you know at the that's kind of the Best in Class when we were both very very high on celebrates. We were in the low sixties, you know, we were really seeing numbers in the mid-to-high forties as as as late as the second quarter of this year and that's fallen off to to the mid-30s to high 30s. And some of it is is is pandemic related as as we look at some of the things that we're doing in terms of promos and roll off and forgiveness of debt when it comes to New Jersey executive order wage or pledge people. So there's there's some there's a a big mumbo jumbo of stuff where we've disconnected people and reconnected people so that the the the numbers aren't super clean in the cutest re-birth
They would be historically but I think that's 40% number is is probably a a kind of a safe number and it goes from there. Right? So we'll see quarter-over-quarter long. Are we going from there is we get back to a more normal marketing. But that's what we fall in obviously significantly from where it used to be kind of in that mid to high fifties and even touching the 60 numbers in terms of edgell, you know, the biggest thing the biggest challenge we have is just getting the machine up and running all over again given a lot of the work has been stopped during during the pandemic. So we're extremely focused on lining up our crews towards the end of this year getting ready for the New Year's and delivering a hundred fifty thousand plus do we think there are more to do. Yes. Can we do them with with a lot of confidence next year.
We not but we looking really in a three-year trajectory if we're going to average a hundred fifty thousand a year for $50 for the next three years. Can we do more? Yeah, we're definitely going to push for more. We are going to see some opportunities on from our doll. I can't tell you exactly how big that will be or how small that will be. We're going to be very very thoughtful obviously the the return economics here, but there is going to be some opportunity here particularly for some areas that we're just super contiguous to what we're doing already from a business standpoint, even though the cost per ho may be expensive, you know, post subsidies that makes a ton of sense for us to do that. So that will be a number I think we will be more open about once we know kind of what the results are and what the opportunity is ultimately going to be.
Got it. And and those are tough opportunities. I imagine a completely unserved right so it's it's sort of your Market to go after if you get it. That's exactly right. So, you know, yeah, we expect to get off some subsets which are just us there's contiguous data we want to build out or not. And we want the build-outs is the is the basic answer even for for for small communities will continue to push that particularly for you know, very contiguous properties. Yeah, maybe just wrapped in that up into one last question then month extra obviously election next week in case you weren't aware of, you know, there's a lot of focus, but I didn't want to wait and rain throughout. Yeah twelve hours right? A lot of focus on job applications for cable and you know, you guys fortunately aren't going to be you know, the Targets in Washington at least among the cable industry, but it could affect you. Just wondering how you think about the implications. Yep.
any of things like title to maybe a greater political focus on affordability and and access I mean to me the art of
That seems like it works financially and politically not to sound too cynical, but just wondering how your think about all this stuff as you look out to a potential Democratic SEC. Yeah, it's you know, it's really difficult them to lose any sleep over this and just think it's over thinking because you know, you can take you can take a snippet of right away from you know, some debate six months ago and go crazy about it off right when you just basically understand that the process of anything to do with something that could be over-regulation relative to our sector is going to take a very very long time to enact as we saw last time and and whether or not you know, any type of wage and is going to want to act on it is something else altogether, right? So this is this is a dialogue that's not even reached our screens yet as a sector wage.
Even with obviously the focus on on on potentially many regulatory elements that may come into a new Administration. But you know, I think this is a way to see if that will be reactive and obviously proactive in many respects on certain things. But you know, I think I think I think the the country is extremely focused off on great broadband and continued Improvement and enlargement of access and so continuing to incentivize people to do that I think is going to be the undead criteria after that, you know, can we do things for different subsets of demographics? I'm sure that there will be things that come up but
Again, there's nothing that we see that's eminently on the horizon that we need to be worried about.
Thanks a lot.
Your next question is from John from yes.
I think quickly I think first any updated thoughts on the use of proceeds from the light path transaction just given the better-than-expected even if you've seen in the in the second half years and then after you talked about, you know, m&a among smaller cable companies. Can you give us a sense of what the landscape looks like? Obviously, there's a lot of small companies out there or some sort of is it a target-rich environment where you guys got a lot to dup or any sort of insight into sort of what you look for, but obviously we know about the Atlantic Broadband situation, but are you looking for a contiguous regions or under-penetrated assets or lower margins or any any hints as to to to how you guys sort of look at the landscape would be great. Sure Listen to I think I'm a used car seats of light path.
You know and you guys are probably doing your back-of-the-envelope math, you know are two billion plus re guidance, you know is is a guidance based on.
And proceeds right? So given even. Both we saw on cue into three and and and some expectations that we see 4 to 4 will be able to do two billion or more off of BuyBacks just on on the non lightpath proceeds, you know, the one point 1 billion of of net proceeds were going to get you know to the extent. We don't see any active ebony opportunities to deploy that I think it's fair to say that that will probably use some or all of it to buy back shares.
On the m&a side. I like all of your criteria, you know contiguous under-penetrated cable, you know, all that stuff sounds sounds great, but we are out there looking at a handful of things the smaller operators like Service Electric. There are those types of guys a little bit all over the place and gave that were in twenty one different states, you know, eighteen through Suddenlink. There's a lot of contiguous smaller assets out there. It's not necessarily that easy to unlock all the stuff but I do think given the environment give the interest rate environment to give them that size does really matter here in terms of getting operational synergies and investing heavily in technology and customer service. It is starting to to populate that some of the smaller operators from the modern pop guys are looking to deal.
Here and you know, I think we it's very obvious to us. When we picked up Service Electric even though it's it's very small in scale that's been a network that page that has not been invested in a lot. There has not been any consistent marketing for the residential and especially not in the SMB side of the month and we're seeing you know, a lot of low-hanging fruit just by adding, you know, two or three additional sales people both on the side and on the BDC side that's been very lucrative us just increasing penetration out. They're bringing new products and we're upgrading obviously Network as quickly as we can. So, you know, everything that we are are not able to get our hands on in terms of I mean a opportunities will be the best use of our capital in terms of returns standpoint, but apps and that I think you know, we like buying, you know, 12 or
13% free cash flow yield Equity one of our financing, you know at 4 for you know, four and a half percent, right so that will that will continue to be the best use of our capital in the meantime outside of m&a.
They take section.
The next question is from Peter Supino and burns name.
Hi, I was curious to ask about Suddenlink and in particular whether in September you provided some really helpful color on the profitability of Suddenlink and I would love to know more about subscriber growth and or arpu levels and Trends in the Suddenlink territories given the different customer demographics there thinks. I'm a Peter.
We don't break.
Galloped on the Suddenlink numbers, but it's it's been clear that you know, a a disproportionate chunk of our volume growth is coming from from Suddenlink Office, which is very similar to some of our other public peers out there in terms of the demographics. So, you know, the the sub growth has been good. We benefit from a birth of programming lineup as are are not as prominent in the Suddenlink footprint as it is in the New York tri-state area and you throw on, you know, a lot of of diversity channels as well and the the gross margins on video or are worse in the in the Optima footprint than is Suddenlink funnily enough and it makes a lot of sense from a arpu Broadband or proof. We consistently see Broadband arpu on the suddenlink's I'd be dead.
Let's call it a 5 to 10% higher than our average Broadband r puse on the opposite side. And that's really driven by the intensity of competition that they had been in the firestones versus the Suddenlink zones Which is less penetrated by by by competitors there. So the growth has been Superior from a Broadband net add standpoint, but also arpu numbers have been higher and also historically we've been upgraded to 1 gig wage a lot earlier on the Suddenlink side that we have on the opposite side, which we just finished. So, you know, maybe that gets you some insight into it one of the things that that you don't see when you try and break out the two businesses is also the SMB side of the business is a much stronger growing business on Suddenlink than it is on the opposite side given the penetration Optimum dead.
However, the flipside is most of the advertising dollars and profitability and growth comes from the optimum signs, and it does come suddenly side. So that is a little bit of an equalizer off in certain respects in terms of the overall Consolidated numbers for each property one versus the other.
Thanks.
Your next question is from Jonathan Chaplin of New Street research.
Thanks guys. She could pull it up on the Lux questions the with the with the Atlantic Broadband processed extras that over at this point and I'm not is that sort of a date at which point it it will be over and when we think about the use of proceeds from light path is if if there isn't a big deal like Atlantic Broadband to do is would you do an accelerated share repurchase program in the fourth quarter that would consume that or would the one point 1 billion be sort of spread out over time in terms of share repurchases. I think they're on the just to answer on Atlantic Broadband, you know, our our latest offer had an expiration date going to November 18th. So other than reiterating that I don't think there's anything more more effective for me to say there in terms of the one point wage.
a billion
Obviously there's a lot of ways we could we could deploy that whether it is an accelerated share purchase or just trying to be aggressive in open market repurchases or doing some other type of structured offering but I do think that given where the price levels are today will continue to try and be opportunistic in the today as opposed to spread it over, you know the next 12 months.
Go ahead and just going back to the Atlantic Broadband process takes the the letter from Louisville seems fairly definitive. Do you regard that as long as definitive or is there still is there still an opportunity for you there? Yeah. Listen, I think we
We're very cognizant that the controlling shareholder needs the aqueous to engage at a minimum let alone look to to do a song to transaction with two other strategics. So, you know based on his on his rhetoric and his statements today. I think it's fair to say that there's low chance of us being able to collectively in Rogers being able to to move forward on this project. But you know, I guess you know formally we've got until November 18th to see if there's anything that shakes loose.
It seems like investors. We met either way. We had to get Atlantic Broadband or 1.1 billion dollars a share repurchase it. So that's that's awesome. Thanks guys.
Your next question is from Benton across from TD securities.
Play crashing on capital-intensive. I mean 8.3% in the quarter and lower than that X new-build you guys communicated. It's going to be in the same range 1.3 1.4 going forward. I'm just wondering when we get down to that dream scenario of sub 1 billion. And and if you can put a time frame are oh, yeah, I mean, I think a lot of it has to do with our fiber the home rule out. We obviously are not on budget for this year given the permitting and construction restrictions that we've run into same thing on on edge else that we're definitely not going to hit the numbers that we budgeted this year. So, you know, we are in the process of you know, giving what we see today in terms of the availability of resources and and the ability for us to go out and do stuff as aggressively and quickly as we can in the first half of next year.
Um, you know, we're probably going to do five hundred thousand plus some more fiber the home home next year and to the extent that we reached that point. So because the machine has gone up and running and we've got the permitting process moving at a quick Pace, you know will probably be doing million million plus per year thereafter. So we're looking if you just do the math, you're probably looking at three and half to four years before we complete the entire Optima footprint on on ftth.
We have time for one last question and you'll final question is from Michael Rollins of City.
Thanks and good afternoon curious if you can talk a bit more about the mobile strategy in terms of how you're looking at rolling into the T-Mobile network. And if you're looking at building some infrastructure in your market, and in related to that when you're building fiber-to-the-home, are you layering in a lot more strength of our capability where you might be able to leverage your own fiber over time to either build or partner and offer a solution to another provider. Thanks. So just to take your second question first. Yes, as we are rolling out fiber across the optic footprint. We're pretty very high strand counts into that fiber so that we can get the multi-purpose it going forward not knowing necessarily exactly what could happen, but that is clearly in our planning.
In terms of the mobile strategy, you know, we are with good dialogue with T-Mobile. We are roaming on them right now, We are discussing a very near-term timetable in terms of re-homing ourselves off the Sprint network and onto the T-Mobile network name really is a function of their preparedness some some something to do with their OS sdss some other technical factors, but that is a very near-term thing that we expect to happen is we're going to continue to look to develop additional products and services with our partners at Timo and look at other opportunities to grow the business. I think in terms of let's call it sizable Capital allocations relating to building infrastructure.
That's probably not something that we are going to do. A lot of I think we like the model more of looking to partner with people who may be infrastructure or help people build out their infrastructure and exchange for capacity and those types of deals as opposed to focusing on a on a subset of a region where we could potentially by, you know, Spectrum or Bill up some infrastructure. I think that is probably less economical given given that the the fact that a lot of our subscribers moving around and and that probably doesn't doesn't drive economics that attractively
Thanks.
Thank you very much. Everyone. Sounds like that's the last question appreciate your time. And obviously Nick Kathy myself and my car available for following questions whenever.
Thank you. Thank you. Thank you, ladies and gentlemen, this concludes today's conference call. Thank you for participating you may now disconnect.
Thursday