Q1 2023 Frontier Communications Parent Inc Earnings Call
Good morning. Thank you for attending today's Frontier Communications first quarter 2023 earnings call. My name is Megan and I'll be your moderator for today's call.
Vince will be muted during the presentation portion of the call with an opportunity for questions and answers at the end if he would like to ask a question. Please press star one on your telephone keypad I would now like to pass the conference over to Spencer Kirk head of Investor Relations with Frontier Communications. Mr. Kang. Please proceed good morning and welcome.
Frontier Communications first quarter 2023 earnings call.
This is Spencer kurn frontiers head of Investor Relations.
Joining me on the call today are John <unk>, our chairman, Nick Jeffery, our President and Chief Executive Officer, and Scott Beasley, Our Chief Financial Officer.
Today's presentation can be followed within the webcast available in the events and presentations section of our Investor Relations website.
Before we start please turn to slide to hear.
Here, you will see our safe Harbor disclaimer.
This is a reminder, that this conference call may include forward looking statements that involve risks and uncertainties that may cause actual results to differ materially from those expressed today.
During the call you may also refer to certain non-GAAP financial measures, which are defined and reconciled in our earnings presentation press release and trending schedule.
With that I'll turn the call over to John .
Spencer and good morning, everyone. As you saw in our press release frontier delivered another strong quarter of operational results and reached its most critical milestone yet a return to year over year EBITDA growth.
And this is the first time in more than five years that frontier has grown EBITDA.
We've described 2023 is the year, where we returned to growth on both the top and bottom lines.
Our Q1, EBITDA growth steps us nicely towards that goal.
Before we review the quarter in detail, let's step back and take a look at where we are today on slide four.
Over the past two years, we've expanded our fiber footprint and our customer reach and our financial profile has significantly improved.
Fiber now represents the majority of our customers our revenue and our EBITDA.
And if you look at the trailing 12 months, our fiber products alone generated $2 $8 billion in revenue and $1 $2 billion of EBITDA.
That's a 43% EBITDA margin.
Turning to the next slide you'll see how our fiber engine is powering all returned to growth.
Slide five is a familiar chart tracking our inflection points over the last two years.
Since we first began seriously scaling our fiber build in the second quarter of 2021, our team has been relentless and achieving critical milestones.
We've hit record fiber builds and record your fiber broadband net adds nearly every quarter since we have reemerged as a public company.
We've also set ambitious cost saving targets achieved them ahead of plan and found even greater scope of opportunity to pursue.
Nick will talk more about this in a few minutes.
And as you recall at the end of last year, our strong operational performance gateway to improving financials as shown by our fourth quarter sequential EBITDA growth.
Our financial performance. This quarter has further improved as mentioned with absolute EBITDA growth for the first time in over five years.
We are well positioned to deliver EBITDA growth for the full year in 2023 and <unk>.
That hasn't been accomplished by frontier and more than 10 years.
Once achieved we see substantial tailwind powering even greater EBITDA growth in the years to follow on.
On the next slide I'll describe what drives that growth.
There is an aspect of our financial performance that I believe is self evident but easily lost amidst all of the other levers of value creation.
Take a moment to frame this in terms of specific to our build.
As you know the fiber build has to defining characteristics first either requires significant upfront investment.
Frontier, we've invested $1 $6 billion in fiber infrastructure over the last two years and built fiber to nearly 2 million homes, that's roughly $830 per location.
The second characteristic.
Fiber builds to deliver predictable and substantial EBITDA growth.
As we build our fiber we've shown with a high degree of consistency that we can achieve penetration rates of 15% to 20% after 12 months and 25% to 30% after 24 months.
While revenue has grown significantly alongside this penetration growth.
Been largely offset by our expected onetime acquisition costs. So.
As a result in the trailing 12 months its 2 million home cohort is only contributed about $10 million in EBITDA.
And the next 24 months. However, we expect this same 2 million home cohort to release substantially more EBITDA, an estimated $230 million.
And when the same cohort achieved our 45% penetration goal at full maturity it will generate EBITDA in the range of $680 million.
This powerful release of EBITDA is what drives very attractive returns in the mid to high teens and once the fiber is initially built it also results in substantial delevering of the business and that's why we love this business and why we're building way more than 2 million homes before I turn it over to Nick I want to recognize the frontier team for once again.
Delivering on our four pillar strategy build fiber cell fiber improve the customer experience and drive operational efficiency.
Everything. This team has achieved is powered by our purpose building gigabit America.
Purpose around which our entire workforce has now rallied.
Nick and the team have been unwavering in their pursuit of building an extraordinary company for our customers and our employees.
I'm pleased with our progress and I have confidence that we'll continue to deliver on our goals for 2023.
Nick over to you to review our performance in the first quarter.
Thanks, John we had a strong start to 2023 and as John shared we hit an important milestone in our transformation.
Thanks to the team's exceptional operational performance quarter after quarter, we've delivered year on year EBIT dollar growth for the first time in five years.
I shared this news with everybody here at frontier This morning.
All proud of what we've accomplished in such a short period of time.
It's a good feeling to be on the winning team.
On slide nine you can see a detailed breakdown of our first quarter result.
Our fiber build is off to a fast start this year in fact, it was the strongest start to the new year that we've ever had with all five available.
Let's put the 339000, Paul things in the first quarter into context.
That 60% more than we built in the first quarter of 2022 and triple the amount we built in the first quarter of 2021.
We sold fiber at record rates again, this quarter 87000, more homes and businesses are now connected to our blazing fast fiber network.
That 61% more than we sold a year ago.
We made changes to our go to market strategy to bring up is more in line with the market, which will dive into in a few minutes.
Fiber is also winning the day with our business customers.
6% fiber revenue growth this quarter as our total business and wholesale segment stabilizes.
What's remarkable is that we've been able to achieve revenue growth while at the same time delivering cost savings and this of course is the trick to a successful turnaround.
Which is why I'm proud to report that we're bringing another $100 million of savings forward by a full year.
Raised our savings target to $500 million by the end of 2023.
Now, let's turn to slide 10.
As we discussed last quarter 2023 is about our return to growth and operational efficiency.
I am pleased to report that our plan to accelerate our fiber build to 1.3 million locations. This year is off to a strong start.
Let me move to our customer growth I want to take a moment to provide an update on the cost of our fiber build.
As you read in our press release. This morning, we now expect slightly higher capital expenditures this year.
And there are two drivers of this increase the first is our decision to opportunistically build inventory when we saw supply chain in the quarter.
And the second is higher build call from scaling all build into new geographies and like many others with all this inflation to drive higher labor cost.
While these factors have a temporary impact on our cost per location this year.
Our oldest thing foster penetration.
The author and better margin, leading economic model to remain intact with mid to high Teen IR Scott will cover this in greater detail later in the call.
Now, let's talk about our customer growth engine.
Over the last two years, we've transformed the way we sell the way, we price and how we have to see.
As you can see on slide 11, it's working.
Our customer growth is accelerating and these are the type of trends, we all love to see up and to the right.
We are winning in the markets we serve for three reasons.
The first is that fiber is in demand, it's simple five a dog what cable com.
The best Internet experience possible and a growing number of people that its using fiber cable when given the choice.
Secondly people love frontier fiber, we're delivering a product that adds value to people's lives and the proof is in our customer growth numbers.
Thirdly, our value proposition is unmatched.
We have the best product in the market at an attractive price point.
Our customer momentum improved even while we implemented changes to drive higher <unk>, which we'll talk about next.
Over the first 18 months of our turnaround we focused on building and scaling our sales and marketing platforms as well as rebuilding customer trust.
Now that those foundations have solidified we're making adjustments to our approach on offer that will bring us more in line with the overall market.
If you turn to the next slide you'll see how our recent casino pricing actions have begun to drive higher off of them.
Firstly, we've been effective at using our speed and price ladder to drive a higher mix of gig plus the across our customer base.
In fact, we now have 55% of all new customers and 20% of our base choosing gig plus speeds.
Secondly, we've begun to monetize the value added services.
And as we add new services like whole home Wi Fi in premium Tech support we've actually doubled our attach rate in just a few months.
Thirdly, we've moderated our promotional intensity, eliminating price lock and significantly reducing the use of gift cards.
And lastly, we continued annual price adjustments in the quarter to pass through some of our inflationary cost pressures.
These actions together have driven a sharp increase in new customer offer which is now under 65 to $70 range.
Good indication of what's to come.
On the next slide you can see the same strategy is working for us in business and wholesale.
We've improved our product with the launch of high bandwidth Ethernet and monetize value added services like Internet backup premium Tech support and Smart boy just to name a few.
We've also enhanced our pricing structure with multi year customer contracts that contain inflation linked price escalators and shifted our sales mix towards higher speed.
And the results are really encouraging.
Since the fourth quarter F&B saw new customer also increased by 7%.
Gig plus activations are up seven point nearly 50%.
And value added service bookings are up 54%.
It's great to see that our renewed focus on these businesses is driving greater value for both.
And for our customers.
On the next slide I want to break down the financial impact of these actions.
F&B is up double digits on both by the revenue growth in fiber broadband customer growth.
It's clear that speed and being future proof matters to our customers who run small businesses.
With record gig plus activation, we are meeting the growing demand of business owners for high speed reliable fiber broadband.
Enterprise also had double digit fiber revenue growth and record bookings in Q1.
And just today, we launched a partnership with Cisco Meraki.
Our full suite of managed network services and by marrying our best in business Internet with award winning Cisco capabilities like managed Wi Fi and security.
Giving our customers the products and services they need.
In our wholesale business is successfully transforming from a legacy copper business into a fiber based digital infrastructure business.
Our digital infrastructure is helping future proof our partners and a great example is our renewed focus on our fiber to the tower strategy.
All four major wireless operators have now signed up to use our fiber infrastructure to help improve their customer experience.
And our fiber backhaul is increasingly critical to support the data demands of modern wireless network.
I'm encouraged by the financial stability and long term revenue opportunities in both business and wholesale and these results are thanks to our strong leadership in these sectors and a team that's committed to meeting our customers' needs and returning both of these businesses to growth.
On Slide 15, you can see we continue to improve our customers' experience. We look at two metrics to track, how we're doing and they're both going into right direction M. P. S continues to rise and churn remains low.
We want to be the Internet company that customers love and that stopped.
And with the customer experience, which is driven by two things.
And off of it and the customer is at the heart of our decisions on both.
Let's talk product.
A recent study by recalled the analytics showed the fastest speeds equal higher customer satisfaction and that everything gets better with speed.
The first provider to launch network wide five gig symmetrical fiber broadband we are meeting the customer demand for both gig plus speeds and giving customers the option to go to Boston and we are.
Being recognized as a leader we were ranked as the fastest internet upload speed in America and recent speak to.
Beyond speed, we've also made it easier for our customers the uncapable themselves and switched to fiber with our expanded Youtube TV partnership.
Now offer a simple integrated bill Internet and <unk> TV together.
I don't come from a service, we're obsessed with making it simple and easy to do business with us.
We're infusing AI into our customer care organization with our new customer chat box Giga.
We removed the hassle of cooling for simple request like billing questions.
And we know it's working our call center volumes are down approximately 30% over the past two years, whilst at the same time, we've grown our broadband customer base.
This really is a win win we're saving our customers time, and frustration and saving costs brought with it.
Slide 16, recaps, the first quarter well.
Our operational success is translating into financial growth across all parts of our business and I'm incredibly proud of how far we've come in just two years as a new company.
Our first growth engine consumer fiber is firing on all cylinders.
We had another record quarter and more fiber broadband net adds than the entire cable industry in the U S combined even with a footprint that's just 125.
Our second growth engine FNB is now accelerating on our enterprise and wholesale businesses are stabilizing.
We are fast emerging as a fiber for AI for digital infrastructure company, creating better customer experiences.
And better quality customer interaction and a simpler and more agile frontier.
Before I turn it over to Scott I want to say a huge thank you to the team that's driving our transformation and bringing our purpose of building gigabit America to life and I am pleased that we started the year with such good momentum Scott.
Thank you Nick and good morning, everyone I'll start with our first quarter financial results rare.
Revenue was $144 billion.
Which was up sequentially.
Data and Internet services as well as subsidy revenues were higher by voice and video revenues were lower as we continue our transition to a fiber one business.
We earned $3 million of net income and $519 million of adjusted EBITDA.
$322 million of our adjusted EBITDA came from fiber products.
It was up year over year as we combine strong revenue growth with significant cost reductions as expected, we had higher acquisition costs related to strong growth in our fiber customer base.
Additionally, we generated $389 million of net cash from operations, bringing this figure to $1 $3 billion over the trailing 12 months our.
Our healthy cash flow before capex demonstrates the underlying cash generation profile of our business.
On slide 19, you can see the strength of our fiber customer growth across base and expansion markets.
First we had record net customer additions in the first quarter at.
At the end of the first quarter, we had nearly 20% annual growth in our fiber broadband customer base and you can see the steady acceleration over the last three years.
This momentum continues to give us confidence that we are on a path to an eventual $4 5 million fiber customers.
And the base fiber footprint, where we have $3 2 million locations, our penetration increased to 43, 5% up 35 basis points since last quarter and up 110 basis points over the past year.
The steady gains put us on track to achieve our target penetration rate of at least 45% in the next two to three years.
Second our 2022 cohort achieved penetration of 20% at the 12 month, Mark roughly 200 basis points higher than the 12 month Mark of our 2021 cohort. This shows that our expansion playbook is working I want to recognize our consumer team for developing a first class expansion playbook and for <unk>.
<unk> to refine it to deliver above expectations.
Our 2021 cohort reached 25% penetration at the 24 month, Mark right, where we expected.
Moving to slide 'twenty fiber revenue accelerated to 8% year over year growth driven by healthy consumer and business performance.
Tumor fiber broadband revenue grew 17% year over year, driving our overall consumer business to 8% growth.
Additionally, our renewed focus on small business enterprise and wholesale is delivering results fiber.
<unk> fiber revenue from business and wholesale grew 6% year over year consistent with our growth last quarter as the second largest fiber builder in the country. We are using our scale to expand relationships with new and existing customers.
The copper revenue decline in the quarter was consistent with prior quarters as legacy products declined as expected.
Turning to slide 21 in the first quarter, we achieved year over year EBITDA growth for the first time in more than five years. This is a result of two things strong fiber revenue growth and cost savings initiatives are.
Our progress in both gives us confidence that we will deliver full year revenue and EBITDA growth in 2023.
Slide 22 gives a bit more detail on our business simplification.
We are taking aggressive actions to transform our business and grow margins over time.
We're raising our target to $500 million and pulling it forward by one year. This represents $100 million in additional savings one year sooner than we initially expected.
Our streamlining efforts include productivity initiatives across almost every part of our business, including improving field operations productivity, reducing call volumes by giving customers better self service options and increasing our usage of AI in customer service and back office operations.
Consistent with our strategy, we will continue to reinvest a portion of these savings into fiber expansion and customer experience transformation, while a portion will flow directly into improved margins.
We'll now turn to our capital structure on slide 23.
At the end of the first quarter, we had approximately $2 $7 billion of liquidity to fund the fiber build comprised of $2 billion of cash and short term investments and $664 million of available capacity on our revolver.
In addition to the strong liquidity, we also have healthy balance sheet flexibility.
Our net leverage was three seven times at the end of the quarter.
Approximately 85% of our debt is at fixed rates and we do not have any significant maturities earlier than 2027.
I'll now turn to our 2023 guidance we.
We continue to expect adjusted EBITDA of $2, one $1 billion to $2.16 billion, representing low to mid single digit growth versus 2022.
We also expect full year revenue growth.
In the second quarter, we expect adjusted EBITDA in the $520 million to $530 million range, which is up sequentially and roughly flat with EBITDA in the second quarter of 2022.
Adjusted for the $8 million of onetime tax benefits, we received last year.
As our pool and our simplification actions accelerate in the back half of 2023, we expect year over year EBITDA growth to accelerate as well.
We now expect capital expenditures of approximately 3.0 to $3 2 billion.
Up from our previous expectation of $2 8 billion.
Roughly half of the increase is from higher inventory levels.
The other half comes from scaling our build into new states as well as higher rates from some of our multi year labor contracts coming up for renewal.
As Nick mentioned based on what we've seen in the first quarter of the year, we expect our fiber build cost to be in the 1000 to 1100 dollar range. This year.
We are confident that our total project build costs will be around $1000 per location as we are able to mix and lower cost locations and our newbuild states aerial builds and an increased focus on multi dwelling units.
Consistent with our previous guidance, we expect capex to be front end loaded in 2023.
We expect capex to be at similar levels in the second quarter before stepping down in the second half of the year.
I'll close our prepared remarks by thanking our team for the strong operational and financial results in the quarter.
Our leadership team has proven every quarter that our fiber first strategy is working and this quarter was no different it works because we are meeting a real customer need.
Fiber is a superior product to cable and fixed wireless.
With blazing fast symmetrical speeds and low latency, we are well positioned to meet the ever increasing demand for data.
We continue to outpace our cable competitors in nearly every market and we are seeing a record number of customers on cable themselves to sign up for frontier fiber.
Fulfilling our purpose of building gigabit America, we're making it possible for more and more Americans to connect to the digital society for generations to come.
I'll now turn the call back over to Spencer to open the line for questions. Thanks, Scott before we open the line, we'd like to kindly request that analysts limit themselves to one question opt.
Operator, we're now ready for Q&A.
Thank you.
If you would like to ask a question. Please press star followed by one on your telephone keypad.
Any reason you would like to remove that question. Please press star followed by two.
As a reminder, if youre using a speakerphone. Please remember to pick up your handset before asking your question.
We will pause here briefly ask questions are registered.
Our first question comes from the line of Brett Feldman with Goldman Sachs.
Your line is now open.
Great. Thanks for taking the question one of the questions. We've gotten is if the cost of deploying fiber does continue to remain a bit elevated not just for this year, but maybe going forward. How do you think about how you would adjust to that do you think you've continued to further where you would modify the build plan or do you think you have other tools at your disposal to mitigate that.
And then just sticking with the build out Scott I'm curious, how you're thinking about additional funding steps from here. Obviously, it's great to see that you took care of some funding earlier than expected. This year, we've been getting questions around how you think about emerging financing options, including fiber securitization. Thank you.
Yes, sure Brad let me take take both of those questions. So on the on the first one of build costs.
Still very confident that our 10 million location build.
There are a number of different.
Variables that go into the attractive mid to high teens IRR penetration in <unk> at the top of the list followed by others, including build cost. So even if the cost remain slightly higher than we had originally expected we are seeing better than expected penetration as you would have heard that we set a new record in Q1 this year.
And our ARPA is starting to finally in flex so were confident that the 10 million locations there's still.
Tractive to build out.
On your second question around financing.
We feel really good about the set of options that we have we have traditional first lien capacity remaining we have we're closely monitoring the asset backed securitizations that have come to the market. We're encouraged that fiber to the home is increasingly seen as a digital infrastructure asset class and so between those in.
And other options that we've discussed before we feel like we have a very solid capital runway.
Thank you.
Operator next question.
Yeah.
Thank you.
Our next question comes from the line of Jonathan Chaplin with New Street. Your line is now open.
Thanks, One question and then I just wanted to follow up on Bretts question, a little bit as well.
The new question is how much of the savings were.
$500 million savings that you've got pulled forward into 2023 did you manage to capture in <unk> specifically.
And then it seems like the EBITDA came in a little bit slower than you expected in <unk>.
Do you have a tailwind from bigger than expected savings was the headwind all just faster growth than you expected.
In.
In subscribers in fiber subscribers or is there something.
Were there some other headwinds there as well and then just to clarify on bretts question. It.
It sounds like the focus is now sort of $10 million, specifically no longer $10 million to $12 million.
I just wanted to get a sense of whether that was sort of an intentional shift in.
Thanks.
Yeah, Hey, Jonathan It's John Stratton No change in terms of the overall addressable opportunity set. So we have we're very much heads down and focused on the first $10 million, we've been saying that now for several years, but we do see another what we've described as $1 million to $2 million additional passing.
As a as an opportunity for us that's quite profitable so no change there.
Yeah sure Jonathan Let me, let me take your two first questions on the $500 million of total savings, we pulled forward a year and we increased it by $100 million not much of that new $100 million within Q1 or Q2 its initiatives that we're executing right now will execute through the back.
Half of the year.
We will give us a very healthy exit rate of EBITDA from Q4 into next year. So a portion of the original 400 has already been captured I think we've implemented a total of 400 at the end of the quarter, but that new hundred will be heavily backend loaded this year.
And then the second question of a headwind in Q1 Youre exactly right all of the headwind that you might have seen as it related to the faster expected growth two important numbers there 87000 total broadband.
Fiber net adds that was a new record by far.
And then secondly faster than expected 12 months penetration, we set a new record at 20%. After 12 months, which is at the very top end of the range. So those two things combined presented a bit of a EBITDA headwind, but that's a good EBITDA headwind.
Awesome, Thanks, guys operator.
Thanks, Jonathan we'll take the next question.
Thank you.
Our next question comes from the line of Greg Williams with Cowen. Your line is now open.
Great. Thank you just curious.
Did that some of the rising cost is due to labor I imagine a lot of it is how much of your build labor is in house versus outsourcing help us with your ability to lock in these contracted rates you noted the renewals are coming up.
If you're just concerned that another wave of increasing cost can occur.
24 and beyond <unk>.
Need money to chase that same labor pool, I'm curious to hear your thoughts there. Thanks.
Yes, sure Greg let.
Let me go through.
A bit of the dynamic here. So we said about half of the increase in the Capex related to inventory part of that was the really strong operational momentum that we had Q4 is the biggest build quarter ever Q1 was not far behind it but part of that was opportunistic as others have pulled back we were able to secure equipment at a discount.
That's about half of the Capex and then the other half was a combination of new markets and higher labor cost in those new markets and some legacy markets as we reset does.
Yes, I think we're seeing some headwinds in <unk> related to potential labor costs in the future obviously unemployment in the country is still low.
It presents wage.
Pressure, but then also a number of other players have significantly pulled back their builds.
Construction.
The structure is.
Is down which may.
Offer some labor up to the industry and so I think it's too early to say exactly where those settle out kind of towards the back end of 'twenty three and then to the next few years.
On your question about beat I think I would give the same answer too early to say I think there's a lot of.
Still unknowns around the timing of feed when does it get finally allocated to the states how does the states run their processes and award.
The contracts to builders and so we don't see a lot of competition for labor in the near to medium term, but in the out years you may see some some competition from beat there.
That's helpful. Thank you.
Thanks, Gregg operator, we'll take the next question.
Thank you. Our next question comes from the line of Nick del Deo with Moffett Nathanson. Your line is now open.
Hi, good morning, guys.
On the inventory front, how do you think about the right level of inventory to hold.
As he acts as a cushion it also ties up capital so I'd just be interested in.
Can you expand on how you think about the right amount and how inventory should trend over time as you progress through the build.
And then just on the build cadence obviously, you reiterated $1 3 million locations for this year is it still your expectation that you should think of one three it's been the floor for the <unk>.
Coming years.
Sure Nick let me take those so inventory.
Take a step back and say when we were in this room exactly a year ago. We were in a completely different environment, we were living hand to mouth in inventory and probably building.
Building, our inventory of equipment was the single biggest risk to the build and pacing to build that he's in the call. It. The late second half of last year and eased into this year and we've also accelerated our build and so we are carrying a higher level of inventory now you will see later on today about $100 million more at the end of the quarter then.
At the end of the year.
But we see that as Derisking. The bill that's inventory that will get used throughout the year and into the future years of the build and you're right. We're trying to balance two dynamics, we don't want to tie up too much cash with inventory, but we also want to make sure. Our team has what they need to to deliver to build because building fast and in selling fiber is the are the two most.
Drivers of our build.
And then on the build cadence.
We'd say the same thing that we said last quarter, which is we see ourselves building at least one three for this year and then in the out years.
Operator, Thanks I'll take the next question. Thanks.
Thanks.
Thank you.
Our last question comes from the line of Frank Louthan with Raymond James.
Your line is now open.
Great. Thank you I wanted to ask kind of what youre seeing on fixed wireless and maybe how thats impacting your target market.
Really appreciate fiber is a better product I get that but at some level there is a market for that.
And can you can you characterize kind of what youre seeing from the competitors there in between the California, Texas, Florida, the old buyer's market than legacy frontier is that making it any more difficult on your on your gross adds that the target market.
Yeah, Frank it's Nick I'll take that question.
As we've said many times before SWA is clearly a feature of the market right now, but it really caters to a very different segments and customer proposition than full fiber access.
I mean, our average fibre customers consume about terabytes of data.
Hum.
And at the top quarter quartile, it's much more than that on that because we are selling fiber services. The household with an average of 22 connected devices, Playstation four K Tvs and so on and that really is it is a segment, which is not well cadency by fixed wireless access which is much more something for mobile.
<unk> size.
Smaller apartment until I'll take the first point to make it a very different proposition.
Second thing is we watch actively extremely closely as we've said on previous calls and so far we did not see a significant impact on <unk>.
Performance growth outperformance or otherwise.
And I think that just reflects the fact that that very very different proposition.
Question of course, we do have on fixed wireless access given the extensive.
Mobile network.
Experienced that those dropping hasnt I have and Veronica has an etsy unbranded and Vishal takes it as in many of our teams come from the mobile segment that we haven't we have a good understanding of the economics that is at what level of usage does SWA become an economic because as we all know wireless networks are not engineered.
To handle the kind of significant data volumes that we see on our networks I mean thats a question for the wireless industry question fuels.
Think about but the short answer to your question is no. We don't see a significant impact on our performance as a result of that WNS.
Operator next question if we can thank you.
There are currently no additional questions waiting at this time so as a reminder, it is star one on your telephone keypad.
Okay. Thanks, operator, I think we can conclude the call now. Thank you all for joining us next quarter.
That concludes the frontier Communications first quarter 2023 earnings call. Thank you for your participation I Hope you have a wonderful rest of your day.
That concludes the frontier communications first quarter 2020.