Q4 2023 United States Cellular Corp Earnings Call

February 16, 2024

Operator: --participants are in a listen-only mode. After the speakers' presentation, we will conduct a question and answer session. To ask a question, you'll need to press star followed by the number one on your telephone keypad.

After the Speakers' presentation, we will conduct a question and answer.

Sure. To ask a question Star followed number one on your telephone.

To ask a question Star followed number one on your telephone.

As a reminder, this conference call is being recorded. I would now turn the call over to Colleen Thompson, Vice President of Corporate Relations. Thank you. Please go ahead.

Okay.

I would now turn the call over for Thompson, Vice President of operations.

Thank you. Please go ahead.

Colleen Thompson: Good morning, and thank you for joining us. We want to make you all aware the presentation to accompany our comments this morning, which you can find on the investor relations sections of the TDS and US Cellular websites. With me today and offering prepared comments are from TDS, Vicki Villacrez, Executive Vice President and Chief Financial Officer, from US Cellular, Laurent Therivel, President and Chief Executive Officer, Doug Chambers, Executive Vice President, Financial Officer and Treasurer and from TDS Telecom, Michelle Brukwicki, Senior Vice President of Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S Cellular Investor Relations websites.

We're going to make you all aware of the presentation. To accompany our. This morning, which you can see on the event. Sections of the TD U S cellular websites. With me today and offering comments are from TV.

To accompany our. This morning, which you can see on the event. Sections of the TD U S cellular websites. With me today and offering comments are from TV.

Good morning, and welcome to Tds and U S cellular fourth quarter 2023 operating results conference call.

This morning, which you can see on the event. Sections of the TD U S cellular websites. With me today and offering comments are from TV.

Sections of the TD U S cellular websites. With me today and offering comments are from TV.

With me today and offering comments are from TV.

All participants are in a listen only mode.

After the Speakers' presentation, we will conduct a question answer session.

Vicki Villacrez, Executive Vice President and Chief Financial Officer, from US Cellular, Laurent Therivel, President and Chief Executive Officer, Doug Chambers, Executive Vice President, Financial Officer and Treasurer and from TDS Telecom, Michelle Brukwicki, Senior Vice President of Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S Cellular Investor Relations websites.

Cellular LTE thorough credit cheesecake. Sure Doug. Doug Chambers Executive Vice. Chinese pressure and from Tds Telecom machine senior. Sure Sir. Alright.

To ask a question you will need to press star followed by the number one on your telephone keypad.

Sure Doug. Doug Chambers Executive Vice. Chinese pressure and from Tds Telecom machine senior. Sure Sir. Alright.

Doug Chambers Executive Vice. Chinese pressure and from Tds Telecom machine senior. Sure Sir. Alright.

As a reminder, this conference call is being recorded.

Chinese pressure and from Tds Telecom machine senior. Sure Sir. Alright.

I would now like to turn the call over to Colleen Thompson Vice President of corporate relations. Thank you. Please go ahead.

Colleen Thompson: call is being simultaneously webcast on the TDS and U.S Cellular Investor Relations websites. Please see the websites for slides referred to on this call, including non-GAAP reconciliations. We provide guidance for both adjusted operating income before depreciation and amortization or OIBDA and adjusted earnings before interest, taxes, depreciation and amortization or EBITDA to highlight the contributions of US Cellular's wireless partnerships. TDS and US Cellular filed their SEC form 8-K, including the press releases and our 10-K earlier this morning. As shown on slide two, the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the Safe Harbor paragraphs in our press releases and the extended version included in our SEC filings.

Sure Sir.

Alright.

Please see the websites for slides referred to on this call, including non-GAAP reconciliations. We provide guidance for both adjusted operating income before depreciation and amortization or OIBDA and adjusted earnings before interest, taxes, depreciation and amortization or EBITDA to highlight the contributions of US Cellular's wireless partnerships. TDS and US Cellular filed their SEC form 8-K, including the press releases and our 10-K earlier this morning. As shown on slide two, the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the Safe Harbor paragraphs in our press releases and the extended version included in our SEC filings.

Colleen Thompson: Good morning, and thank you for joining us we want to make you all aware of the presentation. We have prepared to accompany our comments. This morning, which you can find on the Investor relations sections of the Tds and U S cellular websites.

Please see the weddings for slide you want including non-GAAP reconciliations. The guidance for best at upper income before depreciation and amortization. And adjusted earnings before interest taxes, depreciation and amortization or EBITDA. Highlight the contributions of U S Cellular's wireless partnerships. Yes. <unk> SEC filings. K, including press release Encase earlier this morning. As shown. The information set forth in the day. And discussed during the <unk>. Contains thinks about it. Our events. And financial results forward, looking and subject to risks and uncertainties.

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With me today and offering prepared comments are from Tds, Vicki <unk> Executive Vice President and Chief Financial Officer from U S. Cellular LTE thorough about president and Chief Executive Officer, Doug Chambers, Executive Vice President and Chief Financial Officer, and Treasurer and from Tds Telecom, Michelle broke Lakey senior Vice President of Finance and Chief Finance.

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As shown. The information set forth in the day. And discussed during the <unk>. Contains thinks about it. Our events. And financial results forward, looking and subject to risks and uncertainties.

Colleen Thompson: Officer.

The information set forth in the day. And discussed during the <unk>. Contains thinks about it. Our events. And financial results forward, looking and subject to risks and uncertainties.

This call is being simultaneously webcast on the Tds and U S cellular Investor Relations website.

And discussed during the <unk>. Contains thinks about it. Our events. And financial results forward, looking and subject to risks and uncertainties.

Contains thinks about it. Our events. And financial results forward, looking and subject to risks and uncertainties.

Our events. And financial results forward, looking and subject to risks and uncertainties.

And financial results forward, looking and subject to risks and uncertainties.

Colleen Thompson: Please see the websites for slides referred to on this call, including non-GAAP reconciliations.

Please review the Safe Harbor paragraphs in our press releases and the extended version included in our SEC filings.

We provide guidance for both adjusted operating income before depreciation and amortization or OIBDA.

And with that, I will now turn the call over to Vickie Villacrez. Vicki?

Colleen Thompson: And adjusted earnings before interest taxes, depreciation and amortization or EBITDA to highlight the contributions of U S Cellular's wireless partnerships.

Vicki L. Villacrez: Okay, thank you, Colleen and hello everyone. I hope you are doing well. This morning, we'll take a quick look back at last year and also share with you our 2024 priorities and goals. 2023 was a challenging year for the organization, yet the teams navigated it well and we ended the year in a good place as we move into 2024.

Thank you, calling Hello, everyone. I hope you are doing well. This morning, we'll take a quick look back at last year and also share with you our 2024 priorities and goals.

Colleen Thompson: Tds and U S cellular filed their SEC forms 8-K, including the press releases and our 10-K's earlier this morning.

2023 was a challenging year for the organization, we have the teams navigated it well and we ended the year in a good place as we move into 2024.

Colleen Thompson: As shown on slide two the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward looking and subject to risks and uncertainties. Please.

Before we get into the details, I want to reiterate that as we announced on August 4th last year, we've embarked on a review of the strategic alternatives at US Cellular. We are not going to comment on the process today, except to say that it remains ongoing and that management of TDS and US Cellular along with both boards are committed to a path that is in the best interest of the company and our shareholders. Given the nature of the process, we do not expect to have updates until it is concluded.

Colleen Thompson: Please review the Safe Harbor paragraphs in our press releases and the extended version included in our SEC filings.

We are not going to comment on process today, except to say that remains ongoing and that management of Tds and U S. Cellular along with both boards are committed to a path that is in the best interest of the company and our shareholders. Given the nature of the process, we do not expect to have updates on <unk>. While it is concluded.

Colleen Thompson: And with that I will now turn the call over to Vicki Bill or Chris Vickie. Okay. Thank you, calling hello, everyone and I Hope you are doing well. This morning, we'll take a quick look back at last year and also share with you our 2024 priorities and goals.

Given the nature of the process, we do not expect to have updates on <unk>. While it is concluded.

Vicki: 2023 was a challenging year for the organization yet the teams navigated it well and we ended the year in a good place as we move into 2024.

While it is concluded.

Now let's talk about the business. In 2023, we continued to make substantial investments in our businesses in order to improve our competitiveness while enhancing the customer experience. Over the last two years, TDS telecom invested heavily and increased its total footprint by 21%, setting it up for a strong top and bottom line growth as evidenced by telecom guidance for 2024. US Cellular has made progress on its 5G rollout and expect to continue investing in mid band deployment throughout 2024. US Cellular also modestly delevered in 2023, and will continue to balance ongoing investments with a need to generate positive free cash flow.

Vicki: Before we get into the details I want to reiterate that as we announced on August 4th last year, we've embarked on a review of the strategic alternatives at U S. Cellular were not going to comment on the process today, except to say that it remains ongoing and that management of Tds and U S cellular along with both boards are.

While enhancing the customer experience over the last two years to get telecom invested heavily and increased its total footprint by 21% setting it up for a strong top and bottom line growth as evidenced by telecom guidance for 2024. <unk> has made progress on its <unk> rollout and expect to continue investing in mid band deployment throughout 2020 for U S. Cellular also modestly de Levered in 2023, and we will continue to balance. <unk> investments with a need to generate positive free cash flow.

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Vicki: Committed to a path that is in the best interest of the company and our shareholders given.

Vicki: Given the nature of the process, we do not expect to have updates until it is concluded.

Vicki: Now, let's talk about the business in 2023, we continue to make substantial investments in our businesses in order to improve our competitiveness while enhancing.

<unk> investments with a need to generate positive free cash flow.

While reinvesting still remains a high priority given the interest rate environment and high cost of debt, we plan on slowing our capex investments for TDS Telecom in 2024 as you can see in our guidance. Despite the high interest rate environment, TDS' weighted average cost of debt and preferred equity is six and a half percent. We believe that we have the right mix of both long term maturities and shorter term financings to help fund our investments while appropriately managing through the current interest rate environment. We ended the year maintaining access to liquidity and we have a sizable amount of debt that isn't due for quite some time.

Despite the high interest rate environment Tds as weighted average cost of debt and preferred equity is fixed in a half percent. We believe that we have the right mix of both long term maturities and shorter term financings to help fund our investments while appropriately managing through the current interest rate environment.

We believe that we have the right mix of both long term maturities and shorter term financings to help fund our investments while appropriately managing through the current interest rate environment.

We ended the year, maintaining access to liquidity and we have a sizable amount of depth that isn't due for quite some time.

I also want to note that in the fourth quarter, TDS Telecom took a $547 million noncash goodwill impairment charge in conjunction with our annual goodwill assessment. This charge was due to a combination of factors, primarily rising interest rates and competitive pressures in our ILEC legacy market. The noncash charge eliminates all of the goodwill at TDS Telecom and does not impact reported adjusted EBITDA or adjusted OIBDA.

This charge was due to a combination of factors, primarily rising interest rates and competitive pressures in our ILEC legacy markets. The noncash charge eliminates all of the goodwill at Tds Telecom and does not impact reported adjusted EBITDA or adjusted OIBDA.

The noncash charge eliminates all of the goodwill at Tds Telecom and does not impact reported adjusted EBITDA or adjusted OIBDA.

From a consolidated enterprise perspective, I am pleased that we are maintaining rigorous cost discipline programs, focusing on both opex and capex, which lead to moderate full year 2023 increases in adjusted EBITDA and reduced capital expenditures. And at the same time, allocating our capital towards critical network investments.

And at the same time allocating our capital towards critical network investments.

Before I turn the call over, as you probably saw earlier today, TDS announced its first quarter dividend raising the rate modestly from 2023, as we balance the needs of our businesses and returns to our shareholders. I'd also like to take a moment to thank all of our associates for their exceptional hard work and dedication in these dynamic times. We are positioned well to execute against our priorities for 2024. And with that, I'll now turn the call over to LT.

I'd also like to take a moment to thank all of our associates for their exceptional hard work and dedication in these dynamic times, we are positioned well to execute against our priorities for 2024. And with that I'll now turn the call over to LTE.

And with that I'll now turn the call over to LTE.

Laurent Therivel: Thank you Vicky and good morning everybody. My remarks this morning are going to primarily focus on our annual results highlighting the key achievements in 2023 but then I'll turn to our priorities for 2024. Doug will then cover the fourth quarter results in a little more detail along with covering guidance. So let's start by reviewing the highlights on slide five.

Remarks, this morning, Youre going to primarily focus on our annual results highlighting the key achievements in 2023.

But then I'll turn to our priorities for 2020 for.

Doug will then cover the fourth quarter results in a little more detail along with covering guidance. So let's start by reviewing the highlights on slide spot.

We've had a consistent message that we've reinforced in prior calls that our goal for 2023 was to properly balance subscriber objectives with financial goals and I think our results are a reflection of that deliberate approach.

And I think our results are a reflection of that deliberate approach.

As we discussed throughout 2023, our challenge was driving subscriber growth and momentum in the context of an extremely competitive environment. We delivered on our operating cash flow and adjusted EBITDA guidance for the year and we were able to do so through solid growth in ARPU, coupled with disciplined and efficient spending.

We delivered on our operating cash flow and adjusted EBITDA guidance for the year, we were able to do so through solid growth in <unk>, coupled with disciplined and efficient spending.

For the full year, we delivered 2% growth in postpaid ARPU and a 3% increase in adjusted EBITDA. Last year was our first full year of offering flat rate plans and we ended the year with 17% of our postpaid handset customers on these plans, up from 5% on that time a year ago and I'm really pleased with how they're performing. Many of our customers benefit from the options of this lower service plan pricing in exchange for lower commercial value. And as a reminder, these plans generally provide the same economics to us as our traditional plans since we don't incur device expense.

Last year was our first full year of offering flat rate plans and we ended the year with 17% of our postpaid handset customers on these plans.

From 5% on a year ago, and I'm really pleased with how they're performing many of our customers benefit from the options of this lower service plan pricing and exchange for lower promotional value and as a reminder, these plans generally provide the same economics to us as our traditional plans since we don't incur device expense.

Our average in contract rate for 2023 was just north of 62%. That's up a point and a half from the prior year. It helped us to moderate churn. For the full year, we modestly reduced both postpaid and prepaid churn and that's a nice result given the aggressive competitive environment.

Our average in contract rate for 2023 was just north of 62%. That's up a point and a half from the prior year. It helped us to moderate churn.

It helped us to moderate churn. For the full year, we modestly reduced both postpaid and prepaid churn that's a nice result, given the aggressive competitive environment.

For the full year, we modestly reduced both postpaid and prepaid churn and that's a nice result given the aggressive competitive environment.

For the full year, we modestly reduced both postpaid and prepaid churn that's a nice result, given the aggressive competitive environment.

Turning to growth initiatives, our third party tower revenues reached a milestone crossing $100 million in revenues and growing 8% for the year. As I mentioned last quarter that the wireless industry is moderated capital expenditures last year, we experienced a slowdown in new tenants and amendment activity and I expect that will impact tower revenue growth rates also in 2024.

As I mentioned last quarter that the wireless industry is moderated capital expenditures last year, we experienced a slowdown in new tenants and amendment activity and I expect that will impact tower revenue growth rates also in 2024.

That being said, we remain bullish on the long term outlook for our tower business. Although the near term activity has slowed, the long term capacity needs of the industry are going to require future densification and that's going to drive demand for our towers. We have a unique portfolio of towers that are still below the industry average in terms of co location so we have a lot of opportunity to grow.

Long term capacity needs of the industry are going to require future densification. And that's going to drive demand for our towers.

And that's going to drive demand for our towers.

Have a unique portfolio of towers that are still below the industry average in terms of co location. So we have a lot of opportunity to grow.

We also have strong momentum in fixed wireless. We finished the year with 114,000 customers, that's up 46% from a year ago. Over the last two years, we've seen strong performance with this product. And as a reminder, the vast majority of that growth has been on low band spectrum.

Over the last two years, we've seen strong performance with this product. As a reminder, the vast majority of that growth has been on low band spectrum.

As a reminder, the vast majority of that growth has been on low band spectrum.

Now that we're rolling out mid band spectrum, we're going to be able to offer higher speeds and capacity where that spectrum is deployed. Since fixed wireless leverages the same network as our mobility product in these investments, we believe this is a cost efficient means to grow revenue and to grow cash flows.

Since fixed wireless Leverages, the same network as our mobility product in these investments. We believe this is a cost efficient means to grow revenue into grow cash flows.

As I mentioned, we delivered a 3% increase in adjusted EBITDA over the prior year and we did so through very disciplined and efficient spending. In fact, for the full year, we reduced cash expenses across LOE, system operations and SG&A. This is impressive given the usage on the network increased almost 30% in 2023. Speaking of the network, 80% of our traffic is carried by sites that are modernized for low band 5G.

In fact for the full year, we reduced cash expenses across our system. System operations and SG&A. As impressive given the usage on the network increased almost 30% in 2023. Speaking of the network of 80% of our traffic is carried by sites that are modernized for low band <unk>.

System operations and SG&A. As impressive given the usage on the network increased almost 30% in 2023. Speaking of the network of 80% of our traffic is carried by sites that are modernized for low band <unk>.

As impressive given the usage on the network increased almost 30% in 2023. Speaking of the network of 80% of our traffic is carried by sites that are modernized for low band <unk>.

Speaking of the network of 80% of our traffic is carried by sites that are modernized for low band <unk>.

During 2023, we shifted our focus from 5G modernization to mid band deployment. And similar to our previous network deployment this will be a multiyear buildout. By the end of 2024, we expect to cover 30% of our box with mid band and we'll have almost half of our data traffic running on sites that are equipped with mid band spectrum. We plan to be targeted about this rollout in order to reach the most customers with the best technology as efficiently as possible.

Similar to our previous network deployments this will be a multiyear buildout. By the end of 2024, we expect to cover 30% of our box with mid band. And we'll have almost half of our data traffic running on sites that are equipped with mid band spectrum. When you targeted about this rollout and rigor reach the most customers with the best technology as efficiently as possible.

By the end of 2024, we expect to cover 30% of our box with mid band. And we'll have almost half of our data traffic running on sites that are equipped with mid band spectrum. When you targeted about this rollout and rigor reach the most customers with the best technology as efficiently as possible.

And we'll have almost half of our data traffic running on sites that are equipped with mid band spectrum. When you targeted about this rollout and rigor reach the most customers with the best technology as efficiently as possible.

When you targeted about this rollout and rigor reach the most customers with the best technology as efficiently as possible.

Finally on the network, we sunset our CDMA network in mid January of this year. The team did a great job in helping our customers migrate and the vast majority of them are now on more advanced technologies that provide a better network experience.

Team did a great job in helping our customers migrate the vast majority of them are now on more advanced technologies that provide a better network experience.

Turning to slide six, in 2024, our operational priorities remain consistent. Our top priority remains to balance subscriber growth with financial discipline. We delivered nice ARPU growth last year, we expect to modestly grow again in 2024. We feel like there's still room to bring customers up to higher value plans and offerings.

124, our operational priorities remain consistent our top priority remains to balance subscriber growth with financial discipline. We delivered nice ARPA growth last year, we expect to modestly grow again in 2024. We feel like there's still room to bring customers up to higher value plans and offering.

We delivered nice ARPA growth last year, we expect to modestly grow again in 2024. We feel like there's still room to bring customers up to higher value plans and offering.

We feel like there's still room to bring customers up to higher value plans and offering.

Yes.

And in terms of promotions, we expect to focus heavily on retention offerings. We anticipate the whole thing, aggressive upgrade promotions throughout the year to ensure we're taking care of our customers and that we're retaining them. For [inaudible] wireless in 2024, we expect our momentum to continue. With the addition of mid band spectrum, we can provide an even better experience for our customers, enabling us to better compete against other carriers and cable wireless providers.

Yeah. We anticipate whole thing. Upgrade promotions throughout the year to ensure we're taking care of our customers in that. Payments. Okay. Perfect wireless in 2024, we expect our momentum to continue with the addition of mid band spectrum, we can provide an even better experience for our customers.

We anticipate whole thing. Upgrade promotions throughout the year to ensure we're taking care of our customers in that. Payments. Okay. Perfect wireless in 2024, we expect our momentum to continue with the addition of mid band spectrum, we can provide an even better experience for our customers.

Upgrade promotions throughout the year to ensure we're taking care of our customers in that. Payments. Okay. Perfect wireless in 2024, we expect our momentum to continue with the addition of mid band spectrum, we can provide an even better experience for our customers.

Payments. Okay.

Okay.

Perfect wireless in 2024, we expect our momentum to continue with the addition of mid band spectrum, we can provide an even better experience for our customers.

enabling us to better compete against other carriers and cable wireless providers.

As I mentioned, we also expect tower revenues to grow but not at the level that we saw in early '23. Probably closer to a low to mid single digits in the near term. We plan to keep working on our multi-year cost reduction program. We've had strong success reducing cost throughout 2023. We still see room for more efficiencies in the upcoming year. And with all that in mind, we once again intend to be cash flow positive in 2024.

Not at the level that we saw in early 'twenty. Probably closer to a low. Mid single digits in the near term. We plan to keep working on on your cost reduction program. We've had strong success, reducing cost when in 'twenty three. Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

Probably closer to a low. Mid single digits in the near term. We plan to keep working on on your cost reduction program. We've had strong success, reducing cost when in 'twenty three. Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

Mid single digits in the near term. We plan to keep working on on your cost reduction program. We've had strong success, reducing cost when in 'twenty three. Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

We plan to keep working on on your cost reduction program. We've had strong success, reducing cost when in 'twenty three. Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

We've had strong success, reducing cost when in 'twenty three. Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

Youll see room for more efficiencies in the future. And with all mind, we began tend to be cash flow positive in 2004.

And with all mind, we began tend to be cash flow positive in 2004.

Briefly I'd like to spend just a moment to updating you on efforts to help bridge the digital divide. 41% of the population at US Cellular coverage are in rural America. And as I've discussed in past calls it's more expensive to cover rural America. It's a more challenging network coverage environment and there's less customer density to help pay for the investments needed. We would not have been able to bring the high quality connectivity to many of these hard to serve communities without the support of the Universal Service Fund.

We'd like to spend. Update on efforts helped bridge digital model. 41% populated at U S cellular coverage in Rural America. Discussed in past calls it's more expensive. Okay. More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

Update on efforts helped bridge digital model. 41% populated at U S cellular coverage in Rural America. Discussed in past calls it's more expensive. Okay. More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

41% populated at U S cellular coverage in Rural America. Discussed in past calls it's more expensive. Okay. More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

Discussed in past calls it's more expensive. Okay. More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

Okay. More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

More challenge where coverage and theirs. Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

Patients need it it would not. I have been able to bring led economy. Without the support of Brussels services.

I have been able to bring led economy. Without the support of Brussels services.

Without the support of Brussels services.

In Washington there are two programs being rolled out for further deployment of 5G networks and enhanced economic opportunities in rural areas but those programs need to be aligned and they need to be sequenced carefully. The first program is the 5G fund for rural America and you know what is the 5G fund. It has over $9 billion allocated to improve 5G connectivity across the country. And the second is the bead programs. That's $42.5 billion allocated to it to enhance broad band connectivity for homes and businesses across the country. These are big dollars and we as a nation owe it to rural America to spend the dollars effectively and efficiently. And as such, we believe the prudent course is to allow all of the bead funding decisions to be made before 5G fund allocations take place and there are two reasons for that. First, bead will fund fiber density in areas that lack 5G coverage today and that will significantly reduce the cost for power deployment.

For further into this. <unk>. And economic opportunity. With those programs, maybe aligned and they need to be carefully.

<unk>. And economic opportunity. With those programs, maybe aligned and they need to be carefully.

And economic opportunity. With those programs, maybe aligned and they need to be carefully.

With those programs, maybe aligned and they need to be carefully.

The first program is the <unk> for rural. No it is <unk>. Over $9 billion allocated to improve <unk> connectivity of the country. And the second at the bead programs. $2 5 billion. Do it to any band connectivity. The country.

No it is <unk>. Over $9 billion allocated to improve <unk> connectivity of the country. And the second at the bead programs. $2 5 billion. Do it to any band connectivity. The country.

Over $9 billion allocated to improve <unk> connectivity of the country. And the second at the bead programs. $2 5 billion. Do it to any band connectivity. The country.

And the second at the bead programs. $2 5 billion. Do it to any band connectivity. The country.

$2 5 billion. Do it to any band connectivity. The country.

Do it to any band connectivity. The country.

The country.

These are big and we have. Oh, it to rural America spend the factories. Inefficiently. And a subsidiary of the <unk>. All of the bead funding made four five <unk> execution. Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

Oh, it to rural America spend the factories. Inefficiently. And a subsidiary of the <unk>. All of the bead funding made four five <unk> execution. Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

Inefficiently. And a subsidiary of the <unk>. All of the bead funding made four five <unk> execution. Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

And a subsidiary of the <unk>. All of the bead funding made four five <unk> execution. Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

All of the bead funding made four five <unk> execution. Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

Two reasons for that. <unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

<unk> will fiber density in areas that lack fiber coverage today. Not significantly reduce the power.

Not significantly reduce the power.

Power of it.

Second, speed will fund some fixed wireless deployment that will by default bring 5G mobile connections to those areas. After we have visibility into fiber and fixed wireless deployments funded by bead, the 5G fund can then further expand 5G mobile connectivity in rural areas that aren't covered by bead. And speaking of bead, we are encouraged by the opportunities we've seen so far. Several states within our territory, including Missouri, and Illinois and Nebraska have included fixed wireless access in their plans for bead deployment. And as I said in the past, we have a compelling product that can meet the bead's speed requirements and deliver a strong broadband experience to [inaudible] under connected geographies in a relatively short period of time. We see a lot of advantages working with the states on this and we're going to continue to do so.

By default for available connection to those areas. After we have visibility into fiber and fixed wireless deployments funded by deed. The <unk> fund can then further expand. Japan by GMO amount activity in rural areas. They're not covered by these. And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

After we have visibility into fiber and fixed wireless deployments funded by deed. The <unk> fund can then further expand. Japan by GMO amount activity in rural areas. They're not covered by these. And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

The <unk> fund can then further expand. Japan by GMO amount activity in rural areas. They're not covered by these. And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

Japan by GMO amount activity in rural areas. They're not covered by these. And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

They're not covered by these. And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

And speaking of <unk>, we are encouraged the opportunities seem so far although states within our territory, including Missouri, and Illinois Oscar have included fixed wireless access and their plans for <unk> and as I said in the past.

Selling product that can meet the speed requirements and deliver a strong broadband experience to earn an under connected geographies in a relatively short period of time. We see a lot of interest in working with the states on this and we're going to continue to do so.

We see a lot of interest in working with the states on this and we're going to continue to do so.

And finally, before I hand off to Doug, let me just share a few thoughts on guidance. Our guidance assumes a continuation of an industrywide aggressive competitive environment and that includes aggressive competition from cable wireless players. And that's coupled with a focus on cost reductions and efficient capital spend at US Cellular. Our focus remains on maximizing return on capital while generating positive free cash flow and we will be pulling the available levers to improve both of these measures over time. I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

Our guidance assumes a continuation of an industrywide aggressive competitive environment that includes aggressive competition from cable wireless players. And that coupled with a focus on cost reductions and efficient capital spend at U S. Cellular. Our focus remains on maximizing return on capital, while generating positive free cash flow. We will be pulling the available levers to improve both of these measures over time. I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

And that coupled with a focus on cost reductions and efficient capital spend at U S. Cellular. Our focus remains on maximizing return on capital, while generating positive free cash flow. We will be pulling the available levers to improve both of these measures over time. I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

Our focus remains on maximizing return on capital, while generating positive free cash flow. We will be pulling the available levers to improve both of these measures over time. I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

We will be pulling the available levers to improve both of these measures over time. I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

I want to thank the entire team for their hard work and ongoing commitment to serving our customers and I'll now turn the call over to Doug.

Doug Chambers: Okay. Thanks LT. Good morning everybody. Let's start with a review of our customer results on slide seven. For the quarter, postpaid handset gross additions decreased by 25,000 and net additions correspondingly declined 33,000, largely due to the intense competitive environment as well as an increase in churn partially attributable to a decline in our in contract rate. Connected device results were largely in line with the prior year and includes a strong fixed wireless result that LT previously mentioned.

Let's start our review of our customer results on slide seven for the quarter postpaid handset gross additions decreased by 25000 net additions correspondingly declined 33000, largely due to the intense competitive environment as well as an increase in churn partially attributable to a decline in our <unk>.

In contract rate.

Connected device results were largely in line with the prior year and includes a strong fixed wireless results that <unk> previously mentioned.

Moving to slide eight, prepaid gross additions declined 18,000, driven by the competitive environment, a lower pool of prepaid gross ads which was partially due to the availability of lower end postpaid offerings and a reduced number of national retailers offering our full suite of prepaid products as we rationalized our prepaid distribution based on profitability. This decrease in gross additions was mitigated by an improvement in prepaid churn as we continue to enhance both pricing and digital engagement with our prepaid customers during 2023 and as a result prepaid net additions decreased 11,000.

And a reduced number of national retailers offering a full suite of prepaid products as we rationalize our prepaid distribution based on profitability. This decrease in gross additions was mitigated by an improvement in prepaid churn as we continue to enhance both pricing and digital engagement with our prepaid customers during 2023 and as a result prepaid net additions decreased 11000.

This decrease in gross additions was mitigated by an improvement in prepaid churn as we continue to enhance both pricing and digital engagement with our prepaid customers during 2023 and as a result prepaid net additions decreased 11000.

Now, let's turn to the financial results starting on slide nine. Service revenue declined 3% due to a decrease in our average retail subscriber base, partially mitigated by an increase in postpaid ARPU, which was largely driven by a decrease in promotional cost amortization. Tower results are shown on slide 10. The business delivered a solid quarter with $25 million of third party tower revenues, which represents 3% growth and as LT mentioned, we are bullish on the long term revenue opportunities of the tower business.

I'm 18000, driven by the competitive environment.

Service revenue declined 3% due to a decrease in our average retail subscriber base, partially mitigated by an increase in postpaid <unk>, which was largely driven by a decrease in promotional cost amortization. Power results are shown on slide 10. Business delivered a solid quarter with $25 million of third party tower revenues, which represents 3% growth and as <unk> mentioned, we are bullish on the long term revenue opportunities of the tower business.

Lower pool of prepaid gross adds which is partially due to the availability of lower end postpaid offerings.

And a reduced number of national retailers offering our full suite of prepaid products as we rationalize our prepaid distribution based on profitability.

Power results are shown on slide 10. Business delivered a solid quarter with $25 million of third party tower revenues, which represents 3% growth and as <unk> mentioned, we are bullish on the long term revenue opportunities of the tower business.

Business delivered a solid quarter with $25 million of third party tower revenues, which represents 3% growth and as <unk> mentioned, we are bullish on the long term revenue opportunities of the tower business.

On the next slide, as disclosed last quarter, our own towers are well diversified from a geographic and revenue distribution standpoint. Let's turn to our quarterly operating performance shown on slide 12. For this discussion, I will refer to adjusted operating income before depreciation and amortization as adjusted operating income. As I mentioned, service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income. Loss on equipment or equipment sales less cost of equipment sold decreased 38% as a result of lower transaction volume and lower promotional cost per transaction, partially due to higher adoption of flat rate plans where customers are not eligible for higher levels of device discounts.

Now, let's turn to the financial results starting on slide nine.

Let's turn to our quarterly operating performance shown on slide 12. For this discussion I will refer to adjusted operating income before depreciation and amortization as adjusted operating income. As I mentioned service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income.

For this discussion I will refer to adjusted operating income before depreciation and amortization as adjusted operating income. As I mentioned service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income.

For this discussion, I will refer to adjusted operating income before depreciation and amortization as adjusted operating income. As I mentioned, service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income. Loss on equipment or equipment sales less cost of equipment sold decreased 38% as a result of lower transaction volume and lower promotional cost per transaction, partially due to higher adoption of flat rate plans where customers are not eligible for higher levels of device discounts.

Power results are shown on slide 10, the business delivered a solid quarter with $25 million of third party tower revenues, which represents 3% growth and as <unk> mentioned, we are bullish on the long term revenue opportunities of the tower business.

As I mentioned service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income.

Loss on equipment or equipment sales less cost of equipment sold decreased 38% as a result of lower transaction volume and lower promotional cost per transaction, partially due to higher adoption of flat rate plans, where customers are not eligible for higher levels of device discounts.

On the next slide as disclosed last quarter, our own towers are well diversified from a geographic and revenue distribution standpoint.

Next let's turn to our quarterly operating performance shown on slide 12.

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

Consistent with the industry, we saw a decline in upgrade rates, which contributed to lower equipment sales. Selling general and administrative expenses decreased 7% driven by decreases in bad debts expense, the continued favorable impact from the reduction in workforce executed in the second quarter of 2023, lower selling related expenses driven by decreased transaction volumes and ongoing expense discipline across categories.

As I mentioned service revenues declined 3%. However, this decline was more than offset with expense decreases which resulted in a 19% increase in adjusted operating income.

Selling general and administrative expenses decreased 7% driven by decreases in bad debts expense. The continued favorable impact from the reduction in workforce executed in the second quarter of 2023, lower selling related expenses driven by decreased transaction volumes and ongoing expense discipline across. Categories.

Categories.

Let's turn to our 2024 guidance on slide 14. Our 2024 guidance contemplates the impact of our subscriber base decline in 2023, modest ARPU growth in a highly competitive and promotional environment as we continue to balance subscriber growth with financial discipline. We expect ranges of approximately $2.95 billion to $3.05 billion in service revenues, $750 to $850 million in adjusted operating income and $920 million to $1.02 billion in adjusted EBITDA.

Our 2024 guidance contemplates the impact of our subscriber base decline in 2023 modest <unk> growth in a highly competitive and promotional environment as we continue to balance subscriber growth with financial discipline. We expect ranges of approximately $2 $95 billion to $3.05 billion in service revenues. 752 $850 million in adjusted operating income and 920 million to 1.02 billion in adjusted EBITDA.

System with the industry, we saw a decline in upgrade rates, which contributed to lower equipment sales.

Selling general and administrative expenses decreased 7% driven by decreases in bad debts expense. The continued favorable impact from the reduction in workforce executed in the second quarter of 2023 lowest selling related expenses driven by decreased transaction volumes and ongoing expense discipline across.

We expect ranges of approximately $2 $95 billion to $3.05 billion in service revenues. 752 $850 million in adjusted operating income and 920 million to 1.02 billion in adjusted EBITDA.

752 $850 million in adjusted operating income and 920 million to 1.02 billion in adjusted EBITDA.

These ranges include the impact of shutting down our CDMA network from both a revenue and cost perspective in January 2024. At the time they shutdown, we had approximately 18,000 remaining CDMA connections and we are still working to provide these customers with new devices to access our network. This is down substantially from 174,000 CDMA customers at the beginning of 2023 and as LT mentioned reflects the great work by our marketing and sales teams to ensure our CDMA customers transition to new devices to be able to continue service upon the shutdown. These customers will not be reflected as defections or churn in our 2024 results. However, the subset of these customers that ultimately defect will have the impact of reducing 2024 service revenues.

Categories.

Let's turn to our 2020 guidance on slide 14.

This is down substantially from 174000 CDMA customers at the beginning of 2023 and as <unk> mentioned reflects the great work by our marketing and sales teams to ensure our CDMA customers transition to new devices to be able to continue service upon the shutdown. These customers will not be reflected as defections or churn in our 2024 results. However, the subset of these customers that ultimately the fact, we will have the impact of reducing 2020 for service revenues.

We expect ranges of approximately $2 $95 billion to $3.05 billion in service revenues.

Colleen Thompson: 752 $850 million in adjusted operating income and 920 million to $1.02 billion in adjusted EBITDA.

These customers will not be reflected as defections or churn in our 2024 results. However, the subset of these customers that ultimately the fact, we will have the impact of reducing 2020 for service revenues.

Colleen Thompson: These ranges include the impact of shutting down our CDMA network from both a revenue and cost perspective in January 2024 at the time as shutdown. We had approximately 18000 remaining CDMA connections and we are still working to provide these customers with new devices to access our network.

In addition, shutting down our CDMA network is projected to result in approximately $40 million in run rate annual operating expense savings starting in 2025. Further, we expect the CDMA network shutdown to be accretive to 2024 adjusted operating income. For capital expenditures, we expect to invest between 550 to 650 million as we continue our mid band 5G deployment while prudently managing the level of this investment and the free cash flow of our business. I will now turn the call over to Michelle Brukwicki. Michelle?

Colleen Thompson: It is down substantially from 174000 CDMA customers at the beginning of 2023 and as <unk> mentioned reflects the great work by our marketing and sales teams to ensure our CDMA customers transition to new devices to be able to continue service upon the shutdown.

Further we expect the CDMA network shutdown to be accretive to 2024 adjusted operating income. For capital expenditures, we expect to invest between 550 to 650 million as we continue our mid band <unk> deployment, while prudently managing the level of this investment and the free cash flow of our business.

For capital expenditures, we expect to invest between 550 to 650 million as we continue our mid band <unk> deployment, while prudently managing the level of this investment and the free cash flow of our business.

Colleen Thompson: These customers will not be reflected as defections or churn in our 2024 results. However, the subset of these customers that ultimately the fact, we will have the impact of reducing 2020 for service revenues.

I will now turn the call over to Michelle broke Ricky Shull.

Michelle Brukwicki: Thank you Doug and good morning everyone. I am pleased to report on TDS Telecom's 2023 accomplishments on slide 15. We are successfully executing on our fiber growth strategy that began many years ago. We had strong momentum in 2023, which is positioning us well for 2024. We ended 2023 with all of our expansion communities initially launched. In 2023, we exceeded our fiber address delivery goal by adding 217,000 new marketable fiber service addresses. That's up 24% from our initial 2023 target and it's quite an accomplishment for this team.

I am pleased to report on Tds Telecom 2023 accomplishments on slide 15, we are successfully executing on our fiber growth strategy that began many years ago. We had strong momentum in 2023, which is positioning us well for 2024. We ended 2023 with all of our expansion communities initially launched in. In 2023, we exceeded our fiber address delivery goal by adding 217000, new marketable fiber service addresses that's up 24% from our initial 2023 target and it's quite an accomplishment for this team.

Colleen Thompson: In addition, shutting down our CDMA network is projected to result in approximately $40 million and run rate annual operating expense savings starting in 2025.

Colleen Thompson: Further we expect the CDMA network shutdown to be accretive to 2024 adjusted operating income.

We ended 2023 with all of our expansion communities initially launched in. In 2023, we exceeded our fiber address delivery goal by adding 217000, new marketable fiber service addresses that's up 24% from our initial 2023 target and it's quite an accomplishment for this team.

Colleen Thompson: For capital expenditures, we expect to invest between $550 million to $650 million as we continue our mid band five G deployment are prudently managing the level of this investment and the free cash flow of our business.

In 2023, we exceeded our fiber address delivery goal by adding 217000, new marketable fiber service addresses that's up 24% from our initial 2023 target and it's quite an accomplishment for this team.

Colleen Thompson: I will now turn the call over to Michele Buck wiki shelf.

Vicki: Thank you, Doug and good morning, everyone.

As we make progress on our fiber deployment, we also focus on growing broadband penetration. For the year, we grew total broadband connection 6% mainly from growth in our expansion markets. And finally to address the broadband needs of our most rural markets, we successfully secured enhanced a cam funding, which provides us with $90 million of annual regulatory revenue support for the next 15 years. That's $1.3 billion in total in exchange for delivering high speed broadband to approximately 270,000 addresses.

Vicki: I am pleased to report on Tds Telecom 2023 accomplishments on slide 15, we are successfully executing on our fiber growth strategy that began many years ago.

For the year, we grew total broadband connection 6% mainly from growth in our expansion markets. Finally to address the broadband needs of our most rural markets. We successfully secured enhanced a cam funding, which provides us with $90 million of annual regulatory revenue support for the next 15 years, that's $1 $3 billion in total.

Vicki: We had strong momentum in 2023, which is positioning us well for 2024.

Finally to address the broadband needs of our most rural markets. We successfully secured enhanced a cam funding, which provides us with $90 million of annual regulatory revenue support for the next 15 years, that's $1 $3 billion in total.

Vicki: We ended 2023 with all of our expansion communities initially launched.

Vicki: In 2023, we exceeded our fiber address delivery goal by adding 217000, new marketable fiber service addresses that's up 24% from our initial 2023 target and it's quite an accomplishment for this team.

In exchange for delivering high speed broadband to approximately 270000 addresses.

Turning to slide 16, let me describe the vision we have for TDS Telecom. We are transforming ourselves into a fiber broadband company. We're doing this through investments in all of our market types, expansion, cable and ILEC markets. First is our fiber expansion program. Today, we have 370,000 service addresses in our expansion markets. They are 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

Vicki: As we make progress on our fiber deployment, we also focus on growing broadband penetration for.

We are transforming ourselves into a fiber broadband company. Doing this through investments in all of our market type expansion cable and ILEC markets. First is our expansion fiber expansion program. Today, we have 370000 service addresses in our expansion markets. They are 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

Vicki: For the year, we grew total broadband connections, 6% mainly from growth in our expansion markets.

Doing this through investments in all of our market type expansion cable and ILEC markets. First is our expansion fiber expansion program. Today, we have 370000 service addresses in our expansion markets. They are 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

Vicki: And finally to address the broadband needs of our most rural markets. We successfully secured enhanced ATM funding, which provides us with $90 million of annual regulatory revenue support for the next 15 years, that's $1 $3 billion in total.

First is our expansion fiber expansion program. Today, we have 370000 service addresses in our expansion markets. They are 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

Today, we have 370000 service addresses in our expansion markets. They are 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

Vicki: In exchange for delivering high speed broadband to approximately 270000 addresses.

Next are our cable markets. We have approximately 500,000 cable service addresses which are already enabled with one gig speeds using [inaudible] and fiber. 16% of our cable addresses are fiber today and going forward, we will add more fiber opportunistically in certain markets and in new greenfield areas. And finally, in our incumbent wireline market, which we also refer to this as our ILEC, we have just over 800,000 service addresses today. 43% of those addresses are fiber data.

Vicki: Turning to slide 16, let me describe the vision, we have for Tds Telecom.

Vicki: We are transforming ourselves into a fiber broadband company.

16% of our cable addresses our fiber today. And going forward, we will add more fiber opportunistically in certain markets and a new greenfield areas. And finally in our incumbent wireline market, which we also refer to this as our ILEC. We have just over 800000 service addresses today.

<unk> this through investments in all of our market type expansion cable and ILEC market.

And going forward, we will add more fiber opportunistically in certain markets and a new greenfield areas. And finally in our incumbent wireline market, which we also refer to this as our ILEC. We have just over 800000 service addresses today.

Vicki: First is our expansion fiber expansion program.

And finally in our incumbent wireline market, which we also refer to this as our ILEC. We have just over 800000 service addresses today.

Vicki: Today, we have 370000 service addresses in our expansion markets.

Vicki: Our 100% fiber and we plan to continue growing our footprint in our expansion markets over the next several years.

43% of those addresses our fiber data.

We've been working to bring higher speeds to our ILEC for over a decade. Enhanced [inaudible] will help us put even more fiber into our ILEC network in order to meet the required speeds of 100 megabits per second down and 20 megabits per second up. The EA cam builds are expected to take place over the next several years. So as you can see, we have plans for how we will serve customers in each of our market type. We have many investment opportunities ahead of us with our fiber expansion and EA cam build that will require capital spending. As we've consistently stated, we will prioritize our projects and continue to pace and manage our spending on these investments to stay within prudent capital and leverage levels.

Vicki: Next our cable markets, we have approximately 500000 cable service addresses which are already enabled with one gig speeds using DOCSIS three one and fiber.

16% of our cable addresses our fiber today.

<unk> builds are expected to take place over the next several years. So as you can see we have plans for how we will serve customers in each of our market tight. We have many investment opportunities ahead of us with our fiber expansion and EAA can build that will require capital spending as we've consistently stated we will prioritize our projects and continue to pace and manage our spending on these investments to stay within prudent capital and leverage levels.

Vicki: And going forward, we will add more fiber opportunistically in certain markets and a new greenfield areas.

So as you can see we have plans for how we will serve customers in each of our market tight. We have many investment opportunities ahead of us with our fiber expansion and EAA can build that will require capital spending as we've consistently stated we will prioritize our projects and continue to pace and manage our spending on these investments to stay within prudent capital and leverage levels.

Vicki: And finally in our incumbent wireline market, which we also refer to this as our ILEC. We have just over 800000 service addresses today.

We have many investment opportunities ahead of us with our fiber expansion and EAA can build that will require capital spending as we've consistently stated we will prioritize our projects and continue to pace and manage our spending on these investments to stay within prudent capital and leverage levels.

Vicki: 43% of those addresses our fiber data.

Vicki: We've been working to bring higher speeds to our ILEC for over a decade enhanced ATM will help us put even more fiber into our ILEC network in order to meet the required speeds of 100 Megabits per second down and 20 Megabits per second up.

Moving to slide 17, I'll review our longer term goals that we've set at TDS Telecom. We have been making solid progress on these goals. First, across our entire footprint, we're targeting approximately $1.2 million marketable fiber service addresses. We added 89,000 fiber addresses in the fourth quarter, which is our highest quarter to date. We ended the year with 799,000 total fiber service addresses so we've accomplished two thirds of our goal already. We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fibering up our incumbent market.

Vicki: <unk> builds are expected to take place over the next several years.

First across our entire footprint, we're targeting approximately $1 2 million marketable fiber service addresses. We added 89000 fiber addresses in the fourth quarter, which is our highest quarter to date. We ended the year with 799000 total fiber service addresses. We've accomplished two thirds of our goal already. We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

Vicki: So as you can see we have plans for how we will serve customers in each of our market tight.

We added 89000 fiber addresses in the fourth quarter, which is our highest quarter to date. We ended the year with 799000 total fiber service addresses. We've accomplished two thirds of our goal already. We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

Vicki: We have many investment opportunities ahead of us with our fiber expansion and EAA Cam build that will require capital spending as we've consistently stated we will prioritize our projects and continue to pace and manage our spending on these investments to stay within prudent capital and leverage levels.

We ended the year with 799000 total fiber service addresses. We've accomplished two thirds of our goal already. We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

We've accomplished two thirds of our goal already. We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%. This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

Vicki: Moving to slide 17, I'll review, our longer term goals that we've set at Tds Telecom, we have been making solid progress on these goals.

This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

And finally, we are expecting to offer speeds of one gig or higher to at least 80% of our footprint. We finished 2023 with 72% at gig speeds. And that's a combination of our fiber and DOCSIS 3.1 technologies. Another important metric to measure the success of our fiber program is broadband penetration. The lower right graph shows our business case expectation for broadband penetration in our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

First across our entire footprint, we're targeting approximately $1 2 million marketable fiber service addresses.

We finished 2023 with 72% at gig speeds. And Thats, a combination of our fiber and DOCSIS three one technologies. Another important metric to measure the success of our fiber program as broadband penetration. The lower right graph shows our business case expectation for broadband penetration and our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

Vicki: We added 89000 fiber addresses in the fourth quarter, which is our highest quarter to date.

And Thats, a combination of our fiber and DOCSIS three one technologies. Another important metric to measure the success of our fiber program as broadband penetration. The lower right graph shows our business case expectation for broadband penetration and our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

We ended the year with 799000 total fiber service addresses.

Another important metric to measure the success of our fiber program is broadband penetration. The lower right graph shows our business case expectation for broadband penetration in our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

Another important metric to measure the success of our fiber program as broadband penetration. The lower right graph shows our business case expectation for broadband penetration and our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

So we've accomplished two thirds of our goal already.

Vicki: We are targeting 60% of our total service addresses to be served by fiber. We ended 2023 with fiber to 47%.

The lower right graph shows our business case expectation for broadband penetration and our new expansion markets. We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five. We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

Vicki: This reflects progress in growing fiber through our expansion markets as well as fiber ing up our incumbent market.

Vicki: And finally, we are expecting to offer speeds of one gig or higher to at least 80% of our footprint with.

We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

Vicki: We finished 2023 with 72% at gig speeds.

On slide 18, you can see that we grew our total service addresses 12% year over year. As shown on the right side of the slide, we are increasing take rates for higher broadband speeds with 76% of residential broadband customers choosing 100 megabits per second or greater and 16% are choosing one gig or higher at the end of the quarter. Our broadband investments are producing positive results.

Vicki: And Thats, a combination of our fiber and DOCSIS three one technologies.

As shown on the right side of the slide we are increasing take rates for higher broadband speeds with 76% of residential broadband customers choosing 100, megabits per second or greater and 16% are choosing one gig or higher at the end of the quarter.

Vicki: Another important metric to measure the success of our fiber program as broadband penetration.

Vicki: The lower right graph shows our business case expectation for broadband penetration and our new expansion markets.

Vicki: We expect to achieve penetration rates of about 40% in a steady state, which is generally a year four or five.

Our broadband investments are producing positive results.

Our broadband investments are producing positive results. As shown on slide 19, we had 7,200 residential broadband net adds in the quarter, which contributed to a 6% growth in residential broadband connections for the year. This was largely driven by increases in expansion markets. Net additions from our expansion in ILEC fiber markets more than offset the connection losses in copper and cable markets. Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity.

As shown on slide 19, we had 7,200 residential broadband net adds in the quarter, which contributed to a 6% growth in residential broadband connections for the year. This was largely driven by increases in expansion markets. Net additions from our expansion in ILEC fiber markets more than offset the connection losses in copper and cable markets. Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity. As shown in the chart on the right, we grew residential revenue 6% in the quarter with expansion market revenues increasing to $23 million. As expected, our commercial revenues decreased 13% in the quarter as we continued to decommission our CLEC markets.

Vicki: We are meeting or exceeding our business case expectations at the same time that we're growing our footprint.

Vicki: On Slide 18, you can see that we grew our total service addresses 12% year over year.

This was largely driven by increases in expansion markets. Net additions from our expansion in Iowa fiber markets more than offset the connection losses, and copper and cable markets. Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity.

Net additions from our expansion in Iowa fiber markets more than offset the connection losses, and copper and cable markets. Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity.

Vicki: As shown on the right side of the slide we are increasing take rates for higher broadband speeds with 76% of residential broadband customers choosing 100, megabits per second or greater and 16% are choosing one gig or higher at the end of the quarter.

Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity.

As shown in the chart on the right, we grew residential revenue 6% in the quarter with expansion market revenues increasing to $23 million. As expected, our commercial revenues decreased 13% in the quarter as we continued to decommission our CLEC markets.

Vicki: Our broadband investments are producing positive results.

As shown in the chart on the right. We grew residential revenue, 6% in the quarter with expansion market revenues increasing to $23 million. As expected our commercial revenues decreased 13% in the quarter as we continued to decommission our CLEC markets.

Vicki: As shown on slide 19, we had 7200 residential broadband net adds in the quarter, which contributed to a 6% growth in residential broadband connections for the year.

As expected our commercial revenues decreased 13% in the quarter as we continued to decommission our CLEC markets.

Vicki: This was largely driven by increases in expansion markets.

On slide 20, I will share some financial highlights. Total operating revenues increased 2% in the fourth quarter and 1% for the full year as residential revenues offset commercial and wholesale declines. Almost 70% of our 2023 fiber service addresses were completed in the back half of the year. As such, we are just starting to ramp up penetration and revenues in those markets. Cash expenses decreased 4% in the quarter and increased 2% for the year. Adjusted EBITDA grew 19% in the quarter and was down 2% for the year. Remember that cost to get a community initially launched are incurred upfront before revenue start to grow. We are now starting to see more expansion market revenue growth along with very disciplined cost management across our organization, which is resulting in an improved adjusted EBITDA this quarter. Full year capital expenditures of $577 million were up from the prior year due to increased investment in fiber deployment. We had great momentum with our fiber builds in 2023, so we opportunistically chose to pull capital forward and get more service addresses than we originally planned. We also added more internal construction crews, which required upfront investment in 2023, but are expected to benefit build costs in future years.

Vicki: Net additions from our expansion in ILEC fiber markets more than offset the connection losses, and copper and cable markets.

Total operating revenues increased 2% in the fourth quarter and 1% for the full year as residential revenues offset commercial and wholesale declines. Almost 70% of our 2023 fiber service addresses were completed in the back half of the year as such we are just starting to ramp up penetration and revenues in those markets. Cash expenses decreased 4% in the quarter and increased 2% for the year. Adjusted EBITDA grew 19% in the quarter and was down 2% for the year.

Vicki: Average residential revenue per connection was up 5% in the quarter due to price increases and product mix, partially offset by increased promotional activity.

Almost 70% of our 2023 fiber service addresses were completed in the back half of the year as such we are just starting to ramp up penetration and revenues in those markets. Cash expenses decreased 4% in the quarter and increased 2% for the year. Adjusted EBITDA grew 19% in the quarter and was down 2% for the year.

Vicki: As shown in the chart on the right. We grew residential revenue, 6% in the quarter with expansion market revenues increasing to $23 million.

Cash expenses decreased 4% in the quarter and increased 2% for the year. Adjusted EBITDA grew 19% in the quarter and was down 2% for the year.

Vicki: As expected our commercial revenues decreased 13% in the quarter as we continued to decommission our CLEC markets.

Adjusted EBITDA grew 19% in the quarter and was down 2% for the year.

Speaker Change: On slide 20, I will share some financial highlights.

Remember that cost to get a community initially launched are incurred upfront before revenue start to grow we are now starting to see more expansion market revenue growth along with very discipline disciplined cost management across our organization, which is resulting in an improved adjusted EBITDA this quarter.

Speaker Change: Total operating revenues increased 2% in the fourth quarter and 1% for the full year as residential revenues offset commercial and wholesale declines.

Speaker Change: Almost 70% of our 2023 fiber service addresses were completed in the back half of the year as such we are just starting to ramp up penetration and revenues in those markets.

Full year capital expenditures of $577 million were up from the prior year due to increased investment in fiber deployment. We had great momentum with our fiber builds in 2023, so we opportunistically chose to pull capital forward and get more service addresses than we originally planned. We also added more internal construction crews, which required upfront investment in 2023, but are expected to benefit build costs in future years.

Speaker Change: Cash expenses decreased 4% in the quarter and increased 2% for the year.

We had great momentum with our fiber builds in 2023, so we opportunistically chose to pull capital forward and get more service addresses than we originally planned. We also added more internal construction crews, which required upfront investment in 2023, but are expected to benefit build costs in future years.

Adjusted EBITDA grew 19% in the quarter and was down 2% for the year remember.

Speaker Change: Remember that cost to get a community initially launched are incurred upfront before revenue starts to grow we are now starting to see more expansion market revenue growth along with very discipline disciplined cost management across our organization, which is resulting in an improved adjusted EBITDA this quarter.

We also added more internal construction crews, which required upfront investment in 2023, but are expected to benefit build costs in future years.

On slide 21, we've provided guidance for 2024. We are forecasting total telecom revenues of $1.07 to $1.1 billion. This reflects our goal of top line growth driven by continued improvements in residential revenues, primarily from our expansion markets offsetting pressures in our ILEC copper markets. Adjusted EBITDA is expected to be between $310 and $340 million in 2024. As previously discussed, we incurred upfront costs in 2022 and 2023 to get our new expansion markets launched. As penetrations and revenues grow in those markets, we expect to see adjusted EBITDA increase.

We are forecasting total telecom revenues of 1.07 to $1 1 billion. This reflects our goal of top line growth driven by continued improvements in residential revenues, primarily from our expansion markets offsetting pressures in our ILEC copper markets. Adjusted EBITDA is expected to be between 310 and $340 million in 2024 as previously discussed we incurred upfront costs in 2022, and 2023 to get our new expansion markets launched as penetrations and revenues grow in those markets, we expect to see. Adjusted EBITDA increase.

Speaker Change: Full year capital expenditures of $577 million were up from the prior year due to increased investment in fiber deployment.

This reflects our goal of top line growth driven by continued improvements in residential revenues, primarily from our expansion markets offsetting pressures in our ILEC copper markets. Adjusted EBITDA is expected to be between 310 and $340 million in 2024 as previously discussed we incurred upfront costs in 2022, and 2023 to get our new expansion markets launched as penetrations and revenues grow in those markets, we expect to see. Adjusted EBITDA increase.

Speaker Change: Had great momentum with our fiber builds in 2023, so we opportunistically chose to pull capital forward and get more service addresses than we originally planned.

Adjusted EBITDA is expected to be between 310 and $340 million in 2024 as previously discussed we incurred upfront costs in 2022, and 2023 to get our new expansion markets launched as penetrations and revenues grow in those markets, we expect to see. Adjusted EBITDA increase.

Speaker Change: We also added more internal construction crews, which required upfront investment in 2023, but are expected to benefit build costs in future years.

On slide 21, we've provided guidance for 2024.

Adjusted EBITDA increase.

Speaker Change: We are forecasting total telecom revenues of 1.07 to $1 1 billion.

In 2024, we're planning to deliver about 125,000 fiber service addresses. We pulled forward some capex spend in addresses into 2023, so we will be slowing the pace of our builds in our spending in 2024. Again, we will size and pace, our capital expenditures commensurate with our financial capacity.

Speaker Change: This reflects our goal of topline growth driven by continued improvements in residential revenues, primarily from our expansion markets offsetting pressures in our ILEC copper markets.

We pulled forward some capex spend and addresses into 2023, so we will be slowing the pace of our builds in our spending in 2024. Again, we will the size and pace, our capital expenditures commensurate with our financial capacity.

Again, we will the size and pace, our capital expenditures commensurate with our financial capacity.

Speaker Change: Adjusted EBITDA is expected to be between 310 and $340 million in 2024 as previously discussed we incurred upfront costs in 2022, and 2023 to get our new expansion markets launched as penetrations and revenues grow in those markets, we expect to see.

With that said, capital expenditures are expected to be between $310 and $340 million in 2024. And we believe we can deliver a meaningful number of fiber service addresses with lower capital spending in 2024 for the following reasons. First, all of our expansion markets have been initially launched. That means our upfront capital spending is behind us and we can leverage the foundational systems that we've put in place over the last several years. Second, we have also invested in our own internal construction crews to supplement building out fiber in certain areas. These crews provide us with both operational and financial flexibility.

And we believe we can deliver a meaningful number of fiber service addresses with lower capital spending in 2024 for the following reasons. First all of our expansion markets have been initially launched. That means our upfront capital spending is behind us and we can leverage the foundational systems that we've put in place over the last several years.

Speaker Change: Adjusted EBITDA increase.

First all of our expansion markets have been initially launched. That means our upfront capital spending is behind us and we can leverage the foundational systems that we've put in place over the last several years.

Speaker Change: In 2024, we're planning to deliver about 125000 fiber service addresses we.

That means our upfront capital spending is behind us and we can leverage the foundational systems that we've put in place over the last several years.

Speaker Change: We pulled forward some capex spend and addresses into 2023, so we'll be slowing the pace of our builds in our spending in 2024.

Second we have also invested in our own internal construction crews to supplement building out fiber in certain areas. These crews provide us with both operational and financial flexibility.

Second, we have also invested in our own internal construction crews to supplement building out fiber in certain areas. These crews provide us with both operational and financial flexibility.

Speaker Change: Again, with the size and pace, our capital expenditures commensurate with our financial capacity.

These crews provide us with both operational and financial flexibility.

Speaker Change: With that said capital expenditures are expected to be between 310 and $340 million in 2024.

And finally, another reason capex is expected to be lower in 2024 is because we will be doing planning and engineering for our EA cam builds during 2024. We do not expect capital spend on these projects to ramp up until after this year. Along with that, we have pulled back on capital in our incumbent markets, knowing that EA cam investment will be coming soon. Although capital spending on new fiber builds is expected to be lower in 2024, we will not be slowing down our sales efforts. We will be very focused on ramping up broadband penetration in revenues across all of our deployed fiber addresses during 2024.

Speaker Change: And we believe we can deliver a meaningful number of fiber service addresses with lower capital spending in 2024 for the following reasons.

First all of our expansion markets have been initially launched.

Along with that we have pulled back on capital in our incumbent markets, knowing that <unk> investment will be coming soon. Although capital spending on new fiber builds is expected to be lower in 2024, we will not be slowing down our sales efforts will. We will be very focused on ramping up broadband penetration in revenues across all of our deployed fiber addresses during 2024.

Speaker Change: That means our upfront capital spending is behind us and we can leverage the foundational systems that we've put in place over the last several years.

Although capital spending on new fiber builds is expected to be lower in 2024, we will not be slowing down our sales efforts will. We will be very focused on ramping up broadband penetration in revenues across all of our deployed fiber addresses during 2024.

Speaker Change: Second we have also invested in our own internal construction crews to supplement building out fiber in certain areas.

We will be very focused on ramping up broadband penetration in revenues across all of our deployed fiber addresses during 2024.

Speaker Change: These crews provide us with both operational and financial flexibility.

Speaker Change: And finally, another reason capex is expected to be lower in 2024 is because we will be doing planning and engineering for our E can build <unk>. During 2024, we do not expect capital spend on these projects to ramp up until after this year.

Before turning over the call, I want to once again thank the team. We have an amazing group of associates who navigated a dynamic and challenging year. The team has demonstrated time and again they can execute and pivot as the business evolves. We ended the year with a lot of momentum and I look forward to what 2024 brings. I'll now turn the call back to Colleen.

The team has demonstrated time and again, they can execute and pivot as the business evolves. We ended the year with a lot of momentum and I look forward to what 2024 brings.

Speaker Change: Along with that we have pulled back on capital in our incumbent markets, knowing that <unk> investment will be coming soon.

I'll now turn the call back to Colleen.

Speaker Change: Although capital spending on new fiber builds is expected to be lower in 2024, we will not be slowing down our sales efforts.

Colleen Thompson: Okay, just as a reminder, we will not be answering questions related to the strategic review of US Cellular today. Operator, we are ready for the first question.

Speaker Change: We will be very focused on ramping up broadband penetration and revenues across all of our deployed fiber addresses during 2024.

Operator, we are ready for the first question.

Operator: Thank you. As a reminder, to ask a question, please press star followed by one on your telephone keypad. Our first question comes from Ric Prentiss from Raymond James. Please go ahead. Your line is open.

Speaker Change: Before turning over the call I want to once again. Thank the team we have an amazing group of associates, who navigated a dynamic and challenging year.

Our first question comes from Ric Prentiss from Raymond James. Please go ahead. Your line is open.

Ric Prentiss: Thanks. Good morning everybody.

Good morning, Ric. Hey, a couple of questions. First, people were a little surprised that there is a shelf filing at USM, I guess, it says it's a mix shelf preferred maybe some depositary shares. Explain to us what's the purpose of that shelf filing and then I have two other quick follow ups. Yes, Ric. Sure. First off, the shelf filing we made, we've made a shelf filing actually both at TDS and at US Cellular. Right now, we're giving ourselves flexibility to keep all our options open. This is really an administrative at this point and it's in conjunction with replenishing our shelves. And specifically at US Cellular our shelf was set to expire in May and we're getting ahead of it with the 10-K filing. So at this point, we don't really have any specific current intentions to use it now.

Vicki L. Villacrez: Good morning, Ric.

The team has demonstrated time and again, they can execute and pivot as the business evolves. We ended the year with a lot of momentum and I look forward to what 2024 brings.

Ric Prentiss: Hey, a couple of questions. First, people were a little surprised that there is a shelf filing at USM, I guess, it says it's a mix shelf preferred maybe some depositary shares. Explain to us what's the purpose of that shelf filing and then I have two other quick follow ups.

Hey, a. Couple of questions first. I mean people were a little surprised that there is a shelf filing.

Couple of questions first. I mean people were a little surprised that there is a shelf filing.

I mean people were a little surprised that there is a shelf filing.

At U S for I guess, it says it's a mix shelf. Preferred maybe some depositary shares explain to us what's the purpose of that show up in that two other quick follow ups.

I'll now turn the call back to Colleen.

Preferred maybe some depositary shares explain to us what's the purpose of that show up in that two other quick follow ups.

Colleen Thompson: Okay. Just as a reminder, we will not be answering questions related to the strategic review of U S cellular today.

Yes, Rick. Sure. First off the shelf filing we made we've made a shelf filing actually both at <unk> and at <unk> right now, we're giving ourselves flexibility to keep all our options open this is really in.

Colleen Thompson: Operator, we are ready for the first question.

Vicki L. Villacrez: Yes, Ric. Sure. First off, the shelf filing we made, we've made a shelf filing actually both at TDS and at US Cellular. Right now, we're giving ourselves flexibility to keep all our options open. This is really an administrative at this point and it's in conjunction with replenishing our shelves. And specifically at US Cellular our shelf was set to expire in May and we're getting ahead of it with the 10-K filing. So at this point, we don't really have any specific current intentions to use it now.

Sure. First off the shelf filing we made we've made a shelf filing actually both at <unk> and at <unk> right now, we're giving ourselves flexibility to keep all our options open this is really in.

First off the shelf filing we made we've made a shelf filing actually both at <unk> and at <unk> right now, we're giving ourselves flexibility to keep all our options open this is really in.

Colleen Thompson: Thank you as a reminder to ask a question. Please press star followed by one on your telephone keypad.

Colleen Thompson: Our first question comes from Ric Prentiss from Raymond James. Please go ahead. Your line is open.

Ric Prentiss: Thanks, Good morning, everybody.

Administrative. At this point and it's in conjunction with replenishing our shelves. And specifically at U S. Cellular are shelf was set to expire in may and we're getting ahead of it with the 10-K filing. So at this point, we don't really have any specific current intentions to use it now. Okay.

Ric Prentiss: Good morning, Rick.

At this point and it's in conjunction with replenishing our shelves. And specifically at U S. Cellular are shelf was set to expire in may and we're getting ahead of it with the 10-K filing. So at this point, we don't really have any specific current intentions to use it now. Okay.

Ric Prentiss: Hey, a.

Ric Prentiss: Couple of questions first.

Ric Prentiss: Little surprised that there was a shelf filing.

And specifically at U S. Cellular are shelf was set to expire in may and we're getting ahead of it with the 10-K filing. So at this point, we don't really have any specific current intentions to use it now. Okay.

Ric Prentiss: U S for I guess, I'd say, its a mix shelf.

Ric Prentiss: Preferred maybe some depositary shares explain to us what's the purpose of that show up in that two other quick follow ups.

So at this point, we don't really have any specific current intentions to use it now. Okay.

Okay.

Yes, Rick.

Ric Prentiss: The second question is, LT and Doug you talked about churn and gross adds on the postpaid side. Looking at slide seven obviously, there had been a tick up seasonally on the churn side. I think you also mentioned you're going to focus in '24 on retention. How should we think about churn going into '24 because third and fourth quarter indicative of kind of what we think is happening in the competitive universe or you're going to really be attempting to get back to prior year levels?

First off the shelf filing we made we've made a shelf filing actually both at <unk> and at U S. Cellular right now, we're giving ourselves flexibility to keep all our options open this is really in.

You talked and Doug you talked about churn and gross adds on the postpaid side. Looking at slide seven obviously, there had been a tick up.

Looking at slide seven obviously, there had been a tick up.

Seasonally on the churn side I think you also mentioned youre going to focus in 'twenty, four and retention how should we think about churn going into 'twenty fours, because third and fourth quarter indicative of kind of what we think is happening in the competitive universe or you're going to really be attempting to get back to prior year levels.

Ric Prentiss: Administrative.

Speaker Change: At this point and it's in conjunction with replenishing our shelves.

Speaker Change: And specifically at US sailor, our shelf was set to expire in May and we're getting ahead of it with the 10-K filing.

Speaker Change: So at this point, we don't really have any specific current intentions to use it now.

Doug Chambers: Yes, good morning Ric, so a few things with that. One is when you look at the fourth quarter churn about half of that increase about five basis points is due to some involuntary churn that got pushed from Q3 to Q4 based on some systems issues we had with our collections SKU so that's one time that's not going to recur. And as LT mentioned during his remarks, we're very focused on retention in 2024 and investing a lot of our promotional dollars in retaining our existing customers. So our expectation, our goal in 2024 is to bring churn down. I will say early in '24 we're seeing some good signs and we're highly focused on postpaid handset churn in particular.

Speaker Change: Okay.

Speaker Change: Second question is.

Speaker Change: You talked and Doug you talked about churn and gross adds on the postpaid side.

Speaker Change: Looking at slide seven obviously, there had been a tick up.

Speaker Change: Seasonally on the churn side, you also mentioned youre going to focus in 'twenty four and retention.

We're very focused on retention in 2024, and industrial a lot of our promotional dollars in retaining our existing customers. So our expectation our goal in 2020 for us to bring churn down I will say early in 'twenty four we're seeing some good signs in the Arctic.

Speaker Change: How should we think about churn going into 'twenty fours, because third and fourth quarter indicative of kind of what we think is happening with competitive universe or you're going to really be attempting to get back to prior year levels.

Speaker Change: Yes. Good morning, So a few things with that one is when you look at the fourth quarter churn about half of that increase by five basis points is due to some involuntary churn that got pushed from Q3 to Q4 based on some systems issues, we had with our collections Q. So thats one time, that's not going to recur and as well as he mentioned during his remarks.

Chip.

Highly focused on postpaid handset churn in particular.

Laurent Therivel: Okay. And on the tower segment, obviously, some pressure there, capex spending in the industry has kind of slowed down a little bit. I know in the past we've talked about why not put in place a tower segment reporting, an anchor contract between US and our wireless and US Cellular towers. Could you update us as far as thinking about why not put in place a contractual relationship between US Cellular towers and US Cellular wireless? Hey, Ric so kind of two questions there. I mean, the first is from a slowdown perspective, this is industry wide, not surprising. As we've heard both the other wireless carriers report pullback in Capex, they're primarily complete with their rollout and so everybody is pulling back a bit from a spend perspective and that affects new tenancies and effects amendments and you've also seen that in all the other tower companies earnings results and so we're not immune to that. Long term, we do remain really bullish on our towers. We have I believe strong MLAs in place with all the wireless carriers. My sense is that I mean without knowing their strategy, my sense is Dish is taking a breather after hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive further capacity expansion in the wireless industry, there is no new spectrum on the horizon. We can talk about this and a different topic [inaudible] even have spectrum authority right now and so there's no new spectrum on the horizon so the way to add capacity is going to be more radios or work hours and that means more long term growth of the tower segment. And so we remain optimistic about it even though we did see a bit of a slowdown in '23 and we expect that slowdown to increase in '24.

Yes. On the tower segment, obviously, some pressure there capex spending in the industry has kind of slowed down a little bit. In the past we've talked about. Put in place a tower segment reporting. Right, a banker contract between us and our wireless and U S cellular towers.

On the tower segment, obviously, some pressure there capex spending in the industry has kind of slowed down a little bit. In the past we've talked about. Put in place a tower segment reporting. Right, a banker contract between us and our wireless and U S cellular towers.

In the past we've talked about. Put in place a tower segment reporting. Right, a banker contract between us and our wireless and U S cellular towers.

Speaker Change: We're very focused on retention in 2024, and industrial a lot of our promotional dollars and retaining our existing customers. So our expectation our goal in 2020 for us to bring churn down I will say.

Put in place a tower segment reporting.

Right, a banker contract between us and our wireless and U S cellular towers.

To us as far as thinking about why not put in place. The actual relationship between U S cellular towers and U S cellular wireless. Eric So kind of two questions. There I mean, the first student from a.

The actual relationship between U S cellular towers and U S cellular wireless. Eric So kind of two questions. There I mean, the first student from a.

Speaker Change: Early in 'twenty four we're seeing some good signs in the order to keep.

Eric So kind of two questions. There I mean, the first student from a.

Speaker Change: Highly focused on postpaid handset churn in particular.

Speaker Change: Okay and.

Slowdown perspective, this is industry wide. Not surprising. As we've as we've heard both.

Speaker Change: Yes.

Speaker Change: On the tower segment, obviously, some pressure there capex spending in the industry has kind of slowed down a little bit.

Not surprising. As we've as we've heard both.

As we've as we've heard both.

All the other wireless carriers.

Speaker Change: I know in the past we've talked about.

Speaker Change: Put in place a tower segment reporting.

The pullback in Capex primarily for being.

Speaker Change: Right anchored contract between us and our wireless and U S. Cellular towers can you update us as far as thinking about why not put in place.

Okay.

so everybody is pulling back a bit from a spend perspective and that affects new tenancies and effects amendments and you've also seen that in all the other tower companies earnings results and so we're not immune to that. Long term, we do remain really bullish on our towers. We have I believe strong MLAs in place with all the wireless carriers. My sense is that I mean without knowing their strategy, my sense is Dish is taking a breather after hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive further capacity expansion in the wireless industry,

Speaker Change: Actual relationship between U S cellular towers and U S cellular wireless.

The earnings results and so we're good. Not immune to that. Long term, we do remain really bullish on our towers, we have I believe strong MLA in place with all the wireless carriers. My sense is that I mean without knowing their strategy. My sense is dish is taking a breather. After hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

Not immune to that. Long term, we do remain really bullish on our towers, we have I believe strong MLA in place with all the wireless carriers. My sense is that I mean without knowing their strategy. My sense is dish is taking a breather. After hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

Eric: Eric So.

Long term, we do remain really bullish on our towers, we have I believe strong MLA in place with all the wireless carriers. My sense is that I mean without knowing their strategy. My sense is dish is taking a breather. After hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

Eric: Two questions. There I mean, the first is from a slowdown perspective this is industry wide.

Eric: Not surprising.

My sense is that I mean without knowing their strategy. My sense is dish is taking a breather. After hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

Eric: As we've as we've heard both.

Eric: Paul the other wireless carriers report.

After hitting their last build out obligation, but they've got more to come. If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

The pullback in Capex, there, primarily complete with their mid band rollout.

If I fast forward, what's going to drive. Further capacity expansion in the wireless industry.

Eric: So everybody's pulling back a bit from a spend perspective and that affects new tenancies and effects of amendments and you've also seen that in all the other tower companies.

Further capacity expansion in the wireless industry.

there is no new spectrum on the horizon. We can talk about this and a different topic [inaudible] even have spectrum authority right now and so there's no new spectrum on the horizon so the way to add capacity is going to be more radios or work hours and that means more long term growth of the tower segment. And so we remain optimistic about it even though we did see a bit of a slowdown in '23 and we expect that slowdown to increase in '24. And as far as your question about separate segment reporting, we continue to evaluate it.

Eric: Our earnings results and so we're not immune to that.

Eric: Long term, we do remain really bullish on our towers, we have I believe strong MLA in place with all the wireless carriers.

My sense is that I mean without knowing their strategy. My sense is dish is taking a breather.

Even though we did see a bit of a slowdown in 'twenty three and we expect that slowdown to increase in 'twenty four and as far as your question about separate segment reporting we continue to evaluate it.

After hitting their last.

And as far as your question about separate segment reporting, we continue to evaluate it. Frankly and to be transparent on this, this is one of those things that once you do it you can't dial it back. And so we're trying to be deliberate and disciplined about what information we provide and when and how we provide it. We have heard you and others in terms of a desire to have more information on our towers and we provided that and so we continue to provide more detail on that tower business. Separate segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

Eric: Build out obligation, but they've got more to come.

Frankly and to be transparent on this, this is one of those things that once you do it you can't dial it back. And so we're trying to be deliberate and disciplined about what information we provide and when and how we provide it. We have heard you and others in terms of a desire to have more information on our towers and we provided that and so we continue to provide more detail on that tower business. Separate segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

Eric: If I fast forward, what's going to drive further.

Eric: Capacity expansion in the wireless industry.

And so we're trying to be deliberate and disciplined about what information, we provide and when and how we provide it. We have heard you and others in terms of a desire to have more information on our towers and we provided that and so we've continued we continue to provide more detail. On that tower business. <unk> segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

Eric: There is no new spectrum on the horizon, we can talk about this and I've done a different and different topic. I mean, yes, you see it doesn't even have spectrum authority right now and so there's just no new spectrum on the horizon. So the way to add capacity is going to be more radios or work hours and that means more long term growth of the tower segment and so we remain optimistic about it.

We have heard you and others in terms of a desire to have more information on our towers and we provided that and so we've continued we continue to provide more detail. On that tower business. <unk> segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

On that tower business. <unk> segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

<unk> segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

Even though we did see a bit of a slowdown in 'twenty, three and we expect that to slow down or increase in 'twenty four and as far as your question about separate segment reporting we continue to evaluate it.

Ric Prentiss: Great, thanks.

The seawell.

Thanks Ric. Next question. Our next question comes from Simon Flannery from Morgan Stanley. Please go ahead. Your line is open.

Vicki L. Villacrez: Thanks Ric. Next question.

Operator: Our next question comes from Simon Flannery from Morgan Stanley. Please go ahead. Your line is open.

Frankly and to be transparent on this this is this is one of those things that once you do it you can't dial it back.

Simon Flannery: Great. Thank you very much. Good morning. To start off, do you have any sizing of any exposure to ACP across the businesses?

To start off do you have any sizing of any exposure to ACP across the businesses. Okay.

Eric: And so we're trying to be deliberate and disciplined about what information, we provide and when and how we provide it.

Eric: We have heard you and others in terms of a desire to have more information on our towers and we provided that and so we've continued we continue to provide more detail.

Okay.

Doug Chambers: Good morning Simon. Yes, we do. So we're under indexed in ACP, we have about 20,000 ACP customers and so we just don't have a lot there. Our marketing teams are working on giving those customers a soft landing to the extent that ACP does go away, which is the current expectation and so the short answer is minimal exposure.

Eric: On that tower business.

And so. We just don't have a lot there our marketing teams are working on giving those customers a soft landing. That ACP does go away, which is the current expectation and so.

Eric: Segment reporting is not something that we're ready to pull the trigger on just yet but that may be something we do in the future.

We just don't have a lot there our marketing teams are working on giving those customers a soft landing. That ACP does go away, which is the current expectation and so.

Eric: Great.

Eric: The seawell.

That ACP does go away, which is the current expectation and so.

Eric: Thanks, Rick Thanks, Greg next question. Our next question comes from Simon Flannery from Morgan Stanley. Please go ahead. Your line is open.

The short answer is minimal exposure.

Vicki L. Villacrez: Yes, Simon, the TDS Telecom side, very similar story. We have about 19,000 customers enrolled in ACP and we too are following the SEC's direction in terms of winding down that program. We're working with all of those customers in order to try to find the right broadband product for them. There might be a little exposure there to customers who may not land with us, but we actually also see this as an opportunity. There is ACP customers of other companies that might be looking for a new provider and we'd be happy to serve them and we've got efforts in place to try to attract those customers. So impact would be minimal and anything is included in our guidance.

Simon Flannery: Great. Thank you very much good morning.

Simon Flannery: To start off do you have any sizing of any exposure to ACP across the businesses.

Simon Flannery: Okay.

Simon Flannery: Good morning, Simon Yes reduced so we're under indexed in ACP, we have about 20000 ACP customers.

<unk> to. To customers, who may not land with us, but we actually also see this as an opportunity there as ACP customers of other companies that might be looking for a new provider and we'd be happy to serve them and we've got efforts in place to try to attract those customers. So impact would be minimal and anything is included in our guidance.

To customers, who may not land with us, but we actually also see this as an opportunity there as ACP customers of other companies that might be looking for a new provider and we'd be happy to serve them and we've got efforts in place to try to attract those customers. So impact would be minimal and anything is included in our guidance.

Simon Flannery: And so.

Simon Flannery: We just don't have a lot there our marketing teams are working on giving those customers a soft landing to the extent that ACP does go away, which is the current expectation and so.

Simon Flannery: Short answer is minimal exposure.

Yes, Simon on the Tds Telecom side very similar story, we have about 19000 customers enrolled and ACP and we too are following the FTC's direction in terms of winding down that program. We're working with all of those customers in order to try to find the right broadband product for them there might be a little exposure there.

Simon Flannery: Great. That's very helpful. And then on the wireless affiliates, just looking at the guidance, it seems like the expectation is for fairly similar contribution to EBITDA in '24 versus '23, is that right and any comments on the trends there or any growth expectations on that?

Looking at the guidance it seems like the expectation is for fairly similar contribution to EBITDA and 24 versus <unk> 23 is that right. Any comments on the trends there or any. Growth expectations on that.

Any comments on the trends there or any. Growth expectations on that.

Growth expectations on that.

Simon Flannery: <unk> to.

Doug Chambers: Yeah, you're exactly right Simon. We're expecting that to be relatively flat in '24 relative to what you saw in '23 so no significant changes there and obviously we don't directly control those entities or the distributions, but our expectation is pretty flat.

Simon Flannery: To customers, who may not land with us, but we actually also see this as an opportunity there as ACP customers of other companies that might be looking for a new provider and we'd be happy to serve them and we've got efforts in place to try to attract those customers. So impacts would be minimal and anything is included in our guidance.

Simon Flannery: Great. And then just the last one on the bead timing, I know LT you talked about the program on the 5G. In working with your states, I know we're going through sort of challenge processes and so forth but what's your latest view on when we'll actually see actual awards take place and when we'll know more about the FWA role and so forth.

Speaker Change: Great. That's very helpful and then on the wireless affiliates.

Speaker Change: Looking at the guidance it seems like the expectation is for fairly similar contribution to EBITDA and 24 versus <unk> 23 is that right and any comments on the trends there or any growth.

Working with your states. I know, we're going through sort of challenge processes, and so forth but. What's your latest view on when we'll actually see.

I know, we're going through sort of challenge processes, and so forth but. What's your latest view on when we'll actually see.

What's your latest view on when we'll actually see.

actual awards take place and when we'll know more about the FWA role and so forth. So I think dollars Simon will probably start to flow late this year. I think the majority of dollars will probably start coming in in 2025. I also expect to have a bit of call It a sequenced or you could call it take two on funding plans. My expectation is that states will first come out with quite aggressive plan in terms of expectations of fiber build out, expectations of low cost pricing plans, expectations of a whole bunch of other let's call it overhead associated with those plans. It'll be interesting to see how much uptake they get. Is round one of bead going to be a tremendous success or is round one going to be art off all over again? I think that's a question that still needs to be answered. Based on our conversations, I still feel quite optimistic about the long term role of fixed wireless that we can play, particularly for our more rural states. It's unclear to me if that will be kind of part of the first round with some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

actual awards take place and when we'll know more about the FWA role and so forth.

Speaker Change: Growth expectations on that.

Speaker Change: Yes, Youre exactly right Simon we're expecting that to be relatively flat in 'twenty four relative to what you saw in 2003, So no significant changes there and obviously, we don't we don't directly control those entities or the distributions, but our expectation is pretty flat.

Laurent Therivel: So I think dollars Simon will probably start to flow late this year. I think the majority of dollars will probably start coming in in 2025. I also expect to have a bit of call It a sequenced or you could call it take two on funding plans. My expectation is that states will first come out with quite aggressive plan in terms of expectations of fiber build out, expectations of low cost pricing plans, expectations of a whole bunch of other let's call it overhead associated with those plans. It'll be interesting to see how much uptake they get. Is round one of bead going to be a tremendous success or is round one going to be art off all over again? I think that's a question that still needs to be answered. Based on our conversations, I still feel quite optimistic about the long term role of fixed wireless that we can play, particularly for our more rural states. It's unclear to me if that will be kind of part of the first round with some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

So I think dollars Simon will probably start to flow late this year. I think the majority of dollars, we're probably start coming in in 2025. I also expect to have a bit of. Call It a sequenced. Or you could take.

I think the majority of dollars, we're probably start coming in in 2025. I also expect to have a bit of. Call It a sequenced. Or you could take.

I also expect to have a bit of. Call It a sequenced. Or you could take.

Speaker Change: Great and then just the last one on the bead timing I know LTE you talked about the program on the <unk> and.

Call It a sequenced. Or you could take.

Or you could take.

Take two on funding plans. My expectation is that. States will first come out with quite aggressive plan in terms of expectations of fiber build out expectations of low cost pricing plans.

Speaker Change: And working with your states.

Speaker Change: I know, we're going through sort of challenged processes and so forth, but what's your latest view on when we'll actually see.

My expectation is that. States will first come out with quite aggressive plan in terms of expectations of fiber build out expectations of low cost pricing plans.

States will first come out with quite aggressive plan in terms of expectations of fiber build out expectations of low cost pricing plans.

Speaker Change: Actual awards take place and when.

Speaker Change: No more about the <unk> role and so forth.

Speaker Change: Yes.

Speaker Change: Okay.

Expectations of a whole bunch of other let's call it overhead associated with those plans. It'll be interesting to see how much uptake Vega right is this is there is round one a bead going to be a tremendous successor as round one would be if you're going to be art off all over again.

Speaker Change: I think dollars Simon will probably start to flow late this year.

It'll be interesting to see how much uptake Vega right is this is there is round one a bead going to be a tremendous successor as round one would be if you're going to be art off all over again.

I think the majority of dollars, we're probably start coming in in 2025.

Speaker Change: I also expect to have a bit of.

Speaker Change: Call It a sequenced.

I think that's a question that still needs to be answered based on our conversations. Still feel quite optimistic about the long term role of fixed wireless that. We can play, particularly far more rural states it's up. Unclear to me if that will be kind of part of the first round. With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

Speaker Change: Or you could.

Speaker Change: Take two on funding plans.

Still feel quite optimistic about the long term role of fixed wireless that. We can play, particularly far more rural states it's up. Unclear to me if that will be kind of part of the first round. With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

Speaker Change: My expectation is that.

States will first come out with.

We can play, particularly far more rural states it's up. Unclear to me if that will be kind of part of the first round. With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

Speaker Change: Is quite aggressive plan in terms of expectations of fiber build out expectations of low cost pricing plans.

Unclear to me if that will be kind of part of the first round. With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

Speaker Change: Expectations of a whole bunch of other let's call it overhead associated with those plans.

Simon Flannery: Great. Thanks a lot.

Vicki L. Villacrez: Okay, next question.

Speaker Change: It'll be interesting to see how much uptake Vega.

Operator: Our next question comes from Michael Rollins from Citi. Please go ahead. Your line is open.

Speaker Change: Is this round one a bead going to be a tremendous successor as round, one would be to going to be art off all over again.

Michael Rollins: Thanks, and good morning. Just following upon on the bead topic, when you look at US Cellular as well as TDS, can you frame the type of financial capacity you have to go after beat opportunities and if there are significant wins, how does that influence capital allocation for each side?

Speaker Change: I think that's a question that still needs to be answered based on our conversations I still feel quite optimistic about the long term role of fixed wireless.

You look at U S cellular. As well as Tds. Can you frame the type of financial capacity you have to go after beat opportunities and. If there are significant. Wins. How does that influence capital allocation for each side.

As well as Tds. Can you frame the type of financial capacity you have to go after beat opportunities and. If there are significant. Wins. How does that influence capital allocation for each side.

Can you frame the type of financial capacity you have to go after beat opportunities and. If there are significant. Wins. How does that influence capital allocation for each side.

We can play, particularly far more rural states.

Speaker Change: It's unclear to me if that will be kind of part of the first round.

If there are significant. Wins. How does that influence capital allocation for each side.

Wins. How does that influence capital allocation for each side.

Speaker Change: With some of the states that we're talking about or if it's going to be later, but I wouldn't expect meaningful dollars to flow until next year.

How does that influence capital allocation for each side.

LT, do you want me to take that first for TDS? Sure, go ahead Michelle.

Michelle Brukwicki: LT, do you want me to take that first for TDS?

Speaker Change: Great. Thanks, a lot.

Hey, Mike. Let me take that first for Tds sure go ahead Joe.

Let me take that first for Tds sure go ahead Joe.

Speaker Change: Okay next question.

Laurent Therivel: Sure, go ahead Michelle.

Speaker Change: Our next question comes from Michael Rollins from Citi. Please go ahead. Your line is open.

Michelle Brukwicki: Yes, so hi, Mike. For TDS Telecom, there is an important distinction here. So they're the two federal broadband programs. The first one is the enhanced ATM program and the second one is bead and it's our understanding that if addresses are under the enhanced ATM program, which we opted into in almost all of our states, those addresses also cannot be funded by bead, which makes sense that you won't have to federal programs funding the same addresses. So because we've opted to be a large participant in the EA cam program at TDS Telecom, we actually don't plan to be a bead participant. So for capital allocation our competing priorities are our fiber expansion program and the enhanced a cam program and bead does not enter into that equation in any significant way.

For Tds Telecom. There is an important distinction here so they're the two federal broadband programs. The first one is the enhanced ATM program and the second one is speed. And it's our understanding that if addresses are under the enhanced ATM program, which we opted into in almost all of our states. Those addresses also cannot be funded by bead, which makes sense that you won't have to federal programs funding. The same addresses so because we've opted to be a large participant in the EAA.

Michael Rollins: Thanks, and good morning, just following upon on the bead topic. When you look at U S cellular.

There is an important distinction here so they're the two federal broadband programs. The first one is the enhanced ATM program and the second one is speed. And it's our understanding that if addresses are under the enhanced ATM program, which we opted into in almost all of our states. Those addresses also cannot be funded by bead, which makes sense that you won't have to federal programs funding. The same addresses so because we've opted to be a large participant in the EAA.

Michael Rollins: As well as Tds Ken.

And it's our understanding that if addresses are under the enhanced ATM program, which we opted into in almost all of our states. Those addresses also cannot be funded by bead, which makes sense that you won't have to federal programs funding. The same addresses so because we've opted to be a large participant in the EAA.

Michael Rollins: Can you frame the type of financial capacity you have to go after <unk> opportunities and.

Michael Rollins: If there are significant.

Michael Rollins: Wins.

Michael Rollins: Does that influence capital allocation for each side.

Speaker Change: Thank you.

Mike: Hey, Mike.

Program at Tds Telecom, we actually don't plan to be a bead participant. So for capital allocation our. Our competing priorities, our fiber expansion program and the enhanced a cam program and B does not enter into that equation in any significant way.

Mike: We did take that first for Tds sure go ahead Joe.

Joe: Yes, So hi, Mike.

So for capital allocation our. Our competing priorities, our fiber expansion program and the enhanced a cam program and B does not enter into that equation in any significant way.

Joe: For Tds Telecom.

Our competing priorities, our fiber expansion program and the enhanced a cam program and B does not enter into that equation in any significant way.

Joe: An important distinction here so they're the two federal broadband programs. The first one is the enhanced ATM program and the second one is speed.

Joe: And it's our understanding that if addresses are under the enhanced ATM program, which we opted into in almost all of our states. Those addresses also cannot be funded by bead, which makes sense that you won't have to federal programs funding. The same addresses so because we've opted to be a large participant in the EAA.

Laurent Therivel: So let me tackle it from a from a fixed wireless perspective, Mike. So the first place I would point to is where there are going to be bead opportunities that can be served within the radius of our current tower build. Where we can do that it's a pretty simple equation. We utilize existing mobile capacity, we've leveraged that capacity towards serving a fixed wireless need and if we can do that with the support of bead dollars all the better. And so for those homes and businesses, we think we have a really compelling return on capital equation that comes along with that. What percentage of those are going to be I have no clue. Right, we kind of have to wait and see what the states come out with.

So let me tackle it from a from a fixed wireless perspective, Mike So first.

The first place I would point to is where there are going to be opportunities that can be served within the radius of our current tower built. Where we can do that it's a pretty simple equation. We utilize. Existing mobile capacity. We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation.

Where we can do that it's a pretty simple equation. We utilize. Existing mobile capacity. We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation.

Joe: Cam program at Tds Telecom, we actually don't plan to be a bead participant so.

We utilize. Existing mobile capacity. We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation.

Existing mobile capacity. We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation.

So for capital allocation our.

We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation.

Joe: Our competing priorities, our fiber expansion program and the enhanced a cam program and B does not enter into that equation in any significant way.

Joe: Okay.

Joe: So let me type of lift from the fixed wireless perspective, Mike So first.

comes along with that. What percentage of those are going to be I have no clue. Right, we kind of have to wait and see what the states come out with. There is a second set of homes obviously that are not currently reached by either fiber or by sufficiently strong enough mobile signals that

comes along with that. What percentage of those are going to be I have no clue. Right, we kind of have to wait and see what the states come out with.

Right, we kind of have to wait and see what the what the states come out with.

Joe: The first place I would point to is where there are going to be opportunities that can be served within the radius of our current tower built.

There is a second. Second set of homes, obviously that are that are not currently reached by either fiber whereby. Sufficient sufficiently strong enough mobile signal.

Second set of homes, obviously that are that are not currently reached by either fiber whereby. Sufficient sufficiently strong enough mobile signal.

There is a second set of homes obviously that are not currently reached by either fiber or by sufficiently strong enough mobile signals that we can deliver a compelling fixed wireless product and for that you need to put a new tower in. The reason that we've advocated for bead and the reason I'll go back to our sequencing point that I made earlier, I expect that bead will create a significantly denser fiber grid, completely irrespective of fixed wireless so that will bring our overall cost down to serve. And I've mentioned this number before but our cost to put a tower in rural America is between $650,000 to $1 million. If with bead dollars I can bring that down to 100 or 200K, then that could create a pretty compelling investment opportunity.

Joe: Where we can do that it's a pretty simple equation.

Sufficient sufficiently strong enough mobile signal.

Joe: Utilize.

we can deliver a compelling fixed wireless product and for that you need to put a new tower in. The reason that we've advocated for bead and the reason I'll go back to our sequencing point that I made earlier, I expect that bead will create a significantly denser fiber grid, completely irrespective of fixed wireless so that will bring our overall cost down to serve. And I've mentioned this number before but our cost to put a tower in rural America is between $650,000 to $1 million. If with bead dollars I can bring that down to 100 or 200K, then that could create a pretty compelling investment opportunity.

Joe: Existing mobile capacity.

Joe: We've leveraged at that capacity towards serving our fixed wireless need and if we can do that with the support of <unk>, all the better and so for those homes and businesses. We think we have a really compelling return on capital equation. When it comes along with that what percentage of those are going to be I have no clue.

The reason that we've advocated for feed is and. And the reason I'll go back to our sequencing point that I made earlier. I expect the bead will create a significantly denser fiber grid completely irrespective of fixed wireless. That will bring our overall cost down to serve. And if I can I've mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

And the reason I'll go back to our sequencing point that I made earlier. I expect the bead will create a significantly denser fiber grid completely irrespective of fixed wireless. That will bring our overall cost down to serve. And if I can I've mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

I expect the bead will create a significantly denser fiber grid completely irrespective of fixed wireless. That will bring our overall cost down to serve. And if I can I've mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

Joe: Alright, we kind of have to wait and see what the what the states come out with.

That will bring our overall cost down to serve. And if I can I've mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

There is a second.

Joe: Second set of homes, obviously that are that are not currently reached by either fiber whereby.

And if I can I've mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

A sufficient sufficiently strong enough mobile signal.

If with be dollars I can bring that down to 100 or 200 K. It could create a pretty compelling investment opportunity. Al.

Joe: We can deliver a compelling fixed wireless product and for that you need to put a new tower.

It could create a pretty compelling investment opportunity. Al.

Joe: The reason that we've advocated for feed is and the reason I am.

Al.

From an overall high level guidance, I'll point you to the priority that I finished our conversation with about 2024, which is we're laser focused on return on capital. So if there are bead opportunities in '24 or in '25 that would help us expand return on capital, meaning we can have really efficient use of our internal capital spend and we can drive attractive returns on it, we will participate. If it's not a good use of capital, we won't. And I've also made that really clear to both to states and to NTIA. These programs have to be structured in a way that it is a positive return on capital equation, not just for US. Cellular but for anyone that is going to participate. So if we were to expand our capital spend in the future because of bead, it would be because we see returns that are over and above the current ones that we would expect as part of our long term plan.

Joe: I'll go back to our sequencing point that I made earlier.

From an overall high level guidance. Point, you to the priority that I finished our conversation with about 2024, which is we're laser focused on return on capital. So if there are bead opportunities in 24, or 25 would help us expand return on capital, meaning we can have really efficient use of our internal capital spend.

Point, you to the priority that I finished our conversation with about 2024, which is we're laser focused on return on capital. So if there are bead opportunities in 24, or 25 would help us expand return on capital, meaning we can have really efficient use of our internal capital spend.

Joe: I expect the bead will create a significantly denser fiber grid completely irrespective of fixed wireless so that will bring our overall cost down to serve.

So if there are bead opportunities in 24, or 25 would help us expand return on capital, meaning we can have really efficient use of our internal capital spend.

Speaker Change: And if I can.

Speaker Change: Mentioned this number before but our cost to put a tower in rural America is between 652 1.650 million and $2 million.

We can drive attractive returns on it we will participate.

If it's not a good use of capital we won't and I've also made that really clear to both to states. And to NTIA. These programs have to be structured in a way that it is a positive return on capital equation not just for U S. Cellular for anyone that is going to participate in so if we were to expand our capital spend in the future because of <unk>. It would be because we see returns that are over and above the current <unk>. So we would expect as part of our long term plan.

Speaker Change: If would be dollars I can bring that down to 100 or 200 K then.

Speaker Change: And that could create a pretty compelling investment opportunity.

And to NTIA. These programs have to be structured in a way that it is a positive return on capital equation not just for U S. Cellular for anyone that is going to participate in so if we were to expand our capital spend in the future because of <unk>. It would be because we see returns that are over and above the current <unk>. So we would expect as part of our long term plan.

All right.

Speaker Change: I'll point to you though.

Speaker Change: From an overall high level guidance.

Speaker Change: Point, you to the priority that I finished our conversation with about 2024, which is we're laser focused on return on capital.

Speaker Change: So if there are bead opportunities in 24 or 25 that help us expand return on capital, meaning we can have really efficient use of our internal capital spend.

So we would expect as part of our long term plan.

Michael Rollins: Thanks, and just one other for you LT, going back to slide seven, just looking at the trajectory of a postpaid handset gross ads, I'm wondering if you can unpack a bit more of what's happening on the gross ad brunt for US Cellular and are there opportunities to start to bend the curve on this and get greater output on that front? Thanks. Yes, I mean the thing that has driven the slowdown in gross ads it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace, in the markets where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there are still not everywhere.

Speaker Change: We can drive attractive returns on it we will participate.

Speaker Change: If it's not a good use of capital we won't and I've also made that really clear to both the states.

Postpaid. Handset gross adds and I'm wondering if you can unpack a bit more of what's happening on the gross head Brian for U S cellular. And are there opportunities to start to bend the curve on this and.

Handset gross adds and I'm wondering if you can unpack a bit more of what's happening on the gross head Brian for U S cellular. And are there opportunities to start to bend the curve on this and.

Speaker Change: And to NTIA. These programs have to be structured in a way that it is a positive return on capital equation not just for U S. Cellular for anyone that is going to participate in so if we were to expand our capital spend in the future because of <unk>. It would be because we see returns that are over and above the current <unk>.

And are there opportunities to start to bend the curve on this and.

Get greater output on that front. Thanks. Yes. I mean the <unk>. Thing that has driven the slowdown in gross adds it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace. We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Laurent Therivel: Yes, I mean the thing that has driven the slowdown in gross ads it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace, in the markets where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there are still not everywhere. And their market share is still only in the 3% to 4% but their share of gross ads is about 15%. And so how are they able to do this? Well, it's really twofold. The first is they offload almost 90% depending on which statistics you look at, let's call it 90% of their traffic is offloaded to Wi-Fi. For us, that number is about 80%. So 80% of the usage of our devices is done on Wi-Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of a cable device user is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is on cellular sort of double the usage on the cellular network. And so their overall network economics are quite attractive. And then you couple that with their ability to essentially cross subsidize their plans with profits from their wireline business, different people can agree whether or not prof with a wireless is a profitable business for the cable and wireless players or not but these are smart people and they are driven by economics, and so they wouldn't be in the business if they didn't find a way to make money. And I think they are either making money on wireless even with the price competition they are putting in place or at the very least, they are breaking even and they're seeing the benefit on churn. And so, the combination of better offload economics, coupled with being able to cross subsidize with their wireless plans, it makes a difference.

Yes. I mean the <unk>. Thing that has driven the slowdown in gross adds it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace. We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Speaker Change: So we would expect as part of our long term plan.

I mean the <unk>. Thing that has driven the slowdown in gross adds it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace. We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Thing that has driven the slowdown in gross adds it's a pretty simple equation and it's in the expansion and the rise of the cable wireless players. If I rewind three years, they had a share of essentially zero in our marketplace. We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Thanks, and just one other for you LTE going back to slide seven I'm, just looking at the trajectory.

Speaker Change: Postpaid.

If I rewind three years, they had a share of essentially zero in our marketplace. We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Speaker Change: Handset gross adds and I'm wondering if you can unpack a bit more of what's happening on the gross head Brian for U S cellular.

We're in the markets, where we operate across our footprint. Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

Speaker Change: And are there opportunities to start to bend the curve on this and.

And their market share is still only in the 3% to 4% but their share of gross ads is about 15%. And so how are they able to do this? Well, it's really twofold. The first is they offload almost 90% depending on which statistics you look at, let's call it 90% of their traffic is offloaded to Wi-Fi. For us, that number is about 80%. So 80% of the usage of our devices is done on Wi-Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of a cable device user is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is on cellular sort of double the usage on the cellular network. And so their overall network economics are quite attractive. And then you couple that with their ability to essentially cross subsidize their plans with profits from their wireline business, different people can agree whether or not prof with a wireless is a profitable business for the cable and wireless players or not but

Speaker Change: Get greater output on that front. Thanks.

But their share of gross adds is about 15%. And so how are they able to do this well. Really twofold. The first is the offload almost 90% depending on. Which which statistics you look at let's call it 90% of their traffic is offloaded to Wi Fi. For us that number is about 80%. So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Speaker Change: Yes.

Brian: I mean the <unk>.

And so how are they able to do this well. Really twofold. The first is the offload almost 90% depending on. Which which statistics you look at let's call it 90% of their traffic is offloaded to Wi Fi. For us that number is about 80%. So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: Thing that has driven the slowdown in gross adds it's a pretty simple equation in the expansion and the rise of the cable wireless players.

Really twofold. The first is the offload almost 90% depending on. Which which statistics you look at let's call it 90% of their traffic is offloaded to Wi Fi. For us that number is about 80%. So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Which which statistics you look at let's call it 90% of their traffic is offloaded to Wi Fi. For us that number is about 80%. So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: If I rewind three years, they had a share of essentially zero in our marketplace.

Brian: We're in the markets, where we operate across our footprint.

For us that number is about 80%. So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Even though we see cable competing by now and about two thirds of our footprint there is still not everywhere.

So 80% of the usage of our devices as Donlin Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective. Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: And our market share is still only in the 3% to 4%.

Brian: But their share of gross adds is about 15%.

Brian: And so how are they able to do this well.

Whereas 20% of our usage is Australia sort of double the usage on the cellular network. And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: Really twofold. The first is the offload almost 90% depending on.

And so their overall network economics are quite attractive. Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: Which which statistics you look at let's call it 90% of their traffic is offloaded to Wi Fi.

Couple that with their ability to essentially cross subsidize their plans. With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

With profits from their wireline business. Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: For us that number is about 80%.

Brian: So 80% of the usage of our devices has done on Wi Fi versus 20% is on cellular and that doesn't sound like a big difference until you think about it from a usage on cellular perspective, and then you say, okay, well, 10% of our cable device users is on cellular and they have to turnaround and pay for that from a wholesale rate perspective.

Different people can agree whether or not. Prof with a wireless is a profitable business for the cable wireless players or not but.

Prof with a wireless is a profitable business for the cable wireless players or not but.

these are smart people and they are driven by economics, and so they wouldn't be in the business if they didn't find a way to make money. And I think they are either making money on wireless even with the price competition they are putting in place or at the very least, they are breaking even and they're seeing the benefit on churn. And so, the combination of better offload economics, coupled with being able to cross subsidize with their wireless plans, it makes a difference. We've got spectrum in our markets offering a $29 plan for the month with one line free, so you're talking 15 bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And that's affected us, it's affected everybody in the industry. I mean that is the major driver of change that has occurred and so how do you deal with that? Well, I mean the first is and we talked about this earlier in the call, we're really investing in retaining our customers, investing in trying to provide a great customer experience, investing significantly in our digital platform that's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: Whereas 20% of our usage is Australia sort of double the usage on the cellular network.

The combination of better offload economics, coupled with being able to cross subsidize with their wireless plans. It makes a difference. We've got spectrum in our markets. Offering $29 plan for the month. With one line free so youre talking 15 Bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: And so their overall network economics are quite attractive.

Brian: Couple that with their ability to essentially cross subsidize their plans.

We've got spectrum in our markets. Offering $29 plan for the month. With one line free so youre talking 15 Bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: With profits from their wireline business.

Offering $29 plan for the month. With one line free so youre talking 15 Bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

We've got spectrum in our markets offering a $29 plan for the month with one line free, so you're talking 15 bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And that's affected us, it's affected everybody in the industry. I mean that is the major driver of change that has occurred and so how do you deal with that? Well, I mean the first is and we talked about this earlier in the call, we're really investing in retaining our customers, investing in trying to provide a great customer experience, investing significantly in our digital platform that's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place. We went through the holidays with existing team has new pricing and you can expect us to pull set in and out throughout the year and so step one will be to really continue to invest in customer retention.

Brian: Different people can agree whether or not.

With one line free so youre talking 15 Bucks a month unlimited on the Verizon network. That's significant price pressure that's been put in place over time. And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: Prof with a wireless is a profitable business for the cable wireless players or not but.

Brian: These are smart people and they are driven by economics, and so they wouldn't be in the business and they didn't find a way to make money and I think they are either making money on wireless even with the price competition you are putting in place or at the very least they're breaking even and they're seeing the benefit on churn and so.

That's significant price pressure that's been put in place over time. And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

And thats affected us affected everybody in the industry I mean that is the that is the major driver of change that has occurred and so how do you deal with it well I mean the <unk>. First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

First is and we talked about this earlier in the call. It we're really investing in retaining our customers. Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: The combination of better offload economics, coupled with being able to cross subsidize with their wireless plans that makes a difference.

Invest in trying to provide a great customer experience invest significantly in our digital platform. That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: And we've got spectrum in our markets.

That's there to ensure that customers have a smooth and seamless experience. We've put aggressive promotions in place.

Brian: Offering at $29 plan for the month.

We've put aggressive promotions in place.

Brian: With one line free so youre talking 15 Bucks a month unlimited on the Verizon network.

We went through the holidays with existing team has new pricing and you can expect us to pull set in and out throughout the year and so step one will be to really continue to invest in customer retention.

Brian: That's significant price pressure that's been put in place over time.

Brian: And that's affected us affected everybody in the industry.

Brian: It is the that is the major driver of change.

And the second step, and this is a big one for us, is to continue to enhance our network experience. We talked about rolling out mid band. Everywhere will be modernized for 5G. We see better customer results in higher customer perception of our network. Everywhere where we rollout mid-band, we see the same thing and so we've pivoted our capital spending, by and large we haven't completed it but we've slowed the rest of our 5G modernization. By now you've already got 80% of our traffic being carried on 5G modernized sites. So we've pivoted the capital spend towards mid-band and that mid-band investment will create a better customer experience. And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue. But that's the fundamental change Mike in the industry over the last couple of years has been the rise of cable wireless. I don't see that changing in the near term. I continue to think that we offer a really attractive alternative of a great network and an attractive price. We're going to keep doing that, we're going to keep competing but that's what's driven the challenges in gross ads and that's what we're doing to address it in the future.

Brian: It has occurred and so how do you deal with it well I mean the <unk>.

<unk> talked about rolling out mid band. Everywhere will be modernized for five G. We see better customer results in higher customer perception of our network. Everywhere, where we rollout midband, we see the same thing and so we pivoted our capital spending. By and large we haven't completed it but we've slowed the rest of our <unk> modernization by now you've already got 80% of our traffic being carried on <unk> modernized sites. So we've pivoted the capital spend towards mid band mid band investment will create a better customer experience. And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue.

Brian: First is and we talked about this earlier in the call, we're really investing in retaining our customers.

Everywhere will be modernized for five G. We see better customer results in higher customer perception of our network. Everywhere, where we rollout midband, we see the same thing and so we pivoted our capital spending. By and large we haven't completed it but we've slowed the rest of our <unk> modernization by now you've already got 80% of our traffic being carried on <unk> modernized sites. So we've pivoted the capital spend towards mid band mid band investment will create a better customer experience. And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue.

Brian: Invest in trying to provide a great customer experience invest significantly in our digital platform.

Everywhere, where we rollout midband, we see the same thing and so we pivoted our capital spending. By and large we haven't completed it but we've slowed the rest of our <unk> modernization by now you've already got 80% of our traffic being carried on <unk> modernized sites. So we've pivoted the capital spend towards mid band mid band investment will create a better customer experience. And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue.

Brian: That's there to ensure that customers had a smooth and seamless experience.

Brian: We've put aggressive promotions in place.

By and large we haven't completed it but we've slowed the rest of our <unk> modernization by now you've already got 80% of our traffic being carried on <unk> modernized sites. So we've pivoted the capital spend towards mid band mid band investment will create a better customer experience. And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue.

Brian: We went through the holidays with existing team has new pricing and you can expect us to pull set in and out throughout the year and so step one will be to really continue to invest in customer retention.

Brian: And the second step and this is a big one for US is to continue to enhance our network experience.

And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point, it's always been network comprised that operates in our industry, we expect that to continue.

Brian: We talked about rolling out mid band.

Brian: Everywhere it will be modernized for five G. We see better customer results in higher customer perception of our network.

But that's the fundamental change Mike in the industry over the last couple of years has been the rise of cable wireless. I don't see that changing in the near term. I continue to think that we offer a really attractive alternative of a great network and an attractive price. We're going to keep doing that, we're going to keep competing but that's what's driven the challenges in gross ads and that's what we're doing to address it in the future.

But that's that's the fundamental change Mike in the industry has been over the last couple of years has been the rise of cable wireless. I don't see that changing in the near term. I continue to think that we offer a really attractive alternatives of a great network and an attractive price, we're going to keep doing that we're going to keep competing. But that's what's that's what's driven the challenges in gross adds and that's what we're doing to address it in the future.

Everywhere, where we rollout mid band, we see the same thing and so we pivoted our capital spending.

I don't see that changing in the near term. I continue to think that we offer a really attractive alternatives of a great network and an attractive price, we're going to keep doing that we're going to keep competing. But that's what's that's what's driven the challenges in gross adds and that's what we're doing to address it in the future.

Brian: By and large we haven't completed it but we've slowed the rest of our <unk> modernization by now you've already got 80% of our traffic being carried on <unk> modernized sites. So we've pivoted the capital spend towards Midland.

I continue to think that we offer a really attractive alternatives of a great network and an attractive price, we're going to keep doing that we're going to keep competing. But that's what's that's what's driven the challenges in gross adds and that's what we're doing to address it in the future.

But that's what's that's what's driven the challenges in gross adds and that's what we're doing to address it in the future.

Brian: Mid band investment will create a better customer experience.

Michael Rollins: Thanks, and one other quick one. You mentioned the overlap with cable in terms of the competitive nature against the wireless footprint that you have, what's the overlap competitively with the big three wireless national providers? You mean the 60% some odd that I quoted in terms of the percentage of our markets where we compete against them and you are asking what that number would be for AT&T, Verizon, T-Mobile? Yeah, for each of them, what's the percent overlap against each of those three national wireless players. Yeah, it's substantially all. Its greater than 90% for all of the big three.

Brian: And we think it will compete well in the marketplace and the combination of a good network experience with an attractive price point.

Competitive nature against the wireless footprint that you have what's the overlap competitively with the big three wireless national providers. So we see them in you mean the. 60% some odd that I quoted in terms of the percentage of our markets, where we compete against them and you are asking what the comp what the what that number would be for AT&T Verizon T mobile, yes for each of them whats the percent overlap against each of those three national wireless players.

Brian: Been network comprised that operates in our industry, we expect that to continue.

Laurent Therivel: You mean the 60% some odd that I quoted in terms of the percentage of our markets where we compete against them and you are asking what that number would be for AT&T, Verizon, T-Mobile?

Brian: But that's that's the fundamental change Mike in the industry has been over the last couple of years has been the rise of cable wireless.

So we see them in you mean the. 60% some odd that I quoted in terms of the percentage of our markets, where we compete against them and you are asking what the comp what the what that number would be for AT&T Verizon T mobile, yes for each of them whats the percent overlap against each of those three national wireless players.

60% some odd that I quoted in terms of the percentage of our markets, where we compete against them and you are asking what the comp what the what that number would be for AT&T Verizon T mobile, yes for each of them whats the percent overlap against each of those three national wireless players.

Brian: Don't see that changing.

Brian: In the near term.

Continue to think that we offer a really attractive alternatives of a great network and an attractive price, we're going to keep doing that we're going to keep competing.

Michael Rollins: Yeah, for each of them, what's the percent overlap against each of those three national wireless players.

Brian: But that's what's that's what's driven the challenges in gross adds and that's what we're doing to address it in the future.

Laurent Therivel: Yeah, it's substantially all. It's greater than 90% for all of the big three.

Yes, it's substantially all its greater than 90% for all of the big three.

Speaker Change: Thanks, and one other quick one you mentioned the overlap with cable in terms of the <unk>.

Michael Rollins: Thanks, that's helpful. Thanks for taking my questions.

Thanks for taking my questions.

Speaker Change: <unk> made sure against the wireless footprint that you have what's the overlap competitively with the big three wireless national providers.

Laurent Therivel: Absolutely, have a good day.

Operator: Our last question will come from Sergey Dluzhevskiy from Gamco Investors. Please go ahead. Your line is open.

Speaker Change: So we see them in you mean, the 60% some odd that I quoted in terms of the percentage of our markets, where we compete against them and you are asking what the comp what the what that number would be for AT&T Verizon T mobile yes.

Good morning guys. Good morning Sergey. My first question is for LT on fixed wireless, so is the C band being deployed and in general our mid band being deployed for you, how does that [inaudible] approach to fixed wireless over medium term and also what is the addressable market that you see this fixed wireless now that you have all your spectrum that you can deploy over the next few years and also how do you think about the capacity for fixed wireless for next year?

Good morning guys. Good morning Sergey.

Sergey Dluzhevskiy: Good morning guys.

Michelle Brukwicki: Good morning Sergey.

Sergey Dluzhevskiy: My first question is for LT on fixed wireless, so the C band being deployed and in general the mid band being deployed for you, how does that [inaudible] approach to fixed wireless over medium term and also what is the addressable market that you see this fixed wireless now that you have all your spectrum that you can deploy over the next few years and also how do you think about the capacity for fixed wireless for next year?

Morning. My first question is for LTE on fixed wireless so the C band being deployed.

My first question is for LTE on fixed wireless so the C band being deployed.

Uh huh. In general our mid band back then. North Korea. How does that in Brazil approach to fixed wireless over medium term and also what is the addressable market. See there is fixed. Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

In general our mid band back then. North Korea. How does that in Brazil approach to fixed wireless over medium term and also what is the addressable market. See there is fixed. Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

Speaker Change: For each of them whats the percent overlap against each of those three national wireless players.

North Korea. How does that in Brazil approach to fixed wireless over medium term and also what is the addressable market. See there is fixed. Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

How does that in Brazil approach to fixed wireless over medium term and also what is the addressable market. See there is fixed. Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

Yes, it's substantially all its greater than 90% for all of the big three.

Speaker Change: Thanks, that's helpful. Thanks for taking my questions.

See there is fixed. Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

Fixed wireless miles of you have all your spectrum. Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

Speaker Change: Absolutely have a good day.

Yeah. Deploy over the next few years and also. About the question is for fixed wireless or next year.

Speaker Change: Okay.

Deploy over the next few years and also. About the question is for fixed wireless or next year.

Speaker Change: Our last question will come from Sergey <unk> from Gamco investors. Please go ahead. Your line is open.

About the question is for fixed wireless or next year.

Laurent Therivel: Yeah, thanks Sergey. So let me start with the overall market opportunity. I've referenced this number in the past, it hasn't changed. We see the overall opportunity for this business at around 400,000 subscribers. That's a combination of two factors and it's a combination of the market dynamics where we believe this product is competitive versus the network dynamics of--I mean this is a product that rides on top of the investments that have been made in mobility. I've been transparent about this in the past. This is not a product that pays for itself right. It doesn't pay for all the capital requirements that are needed to put new radios and new towers in place and so you put capacity in place for the mobile subscriber and then you pivot that capacity where you have it available and you serve the needs of fixed wireless. So you put those two things together, we see a market opportunity of about 400,000.

Sergey: Good morning, guys.

Sergey: Good morning, Chris good.

So let me start with the overall market opportunity I've referenced this number in the past that Hasnt changed we see the overall opportunity for this business at around 400000 subscribers. That's a combination of two factors. And it's a combination of. The market dynamics. Where we believe this product is competitive. Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: Good morning.

My first question is for LTE on fixed wireless so this C band being deployed.

Sergey: Uh huh.

Sergey: In general <unk> made them back.

That's a combination of two factors. And it's a combination of. The market dynamics. Where we believe this product is competitive. Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: North Korea.

And it's a combination of. The market dynamics. Where we believe this product is competitive. Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: How does that impact the approach to fixed wireless over medium term and also what is the addressable market.

The market dynamics. Where we believe this product is competitive. Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Where we believe this product is competitive. Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: See there is a fixed.

Versus the network dynamics. I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: Fixed wireless miles of you have all your spectrum.

I mean this is a product that rides on top of the investments that have been made in mobility. <unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Sergey: That becomes the core over the next few years and also how do we think about the capacity needs for fixed wireless over the next few years.

<unk> been transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all capital requirements that are needed.

Yeah. Thanks Sergei.

Speaker Change: So let me start with the overall market opportunity I've referenced this number in the past that Hasnt changed we see the overall opportunity for this business at around 400000 subscribers.

put new radios and new towers in place and so you put capacity in place for the mobile subscriber and then you pivot that capacity where you have it available and you serve the needs of fixed wireless. So you put those two things together, we see a market opportunity of about 400,000. Usually, you would see growth rates starting to slow as you reach the kind of customer scale that we've reached. So when you first rollout a product, the first 5,000, the first 10,000 customers you see fantastic growth but then as you start hitting scale, the numbers become more challenging. The real impact of mid-band for us is all of a sudden we can offer a drastically faster product that competes not just in rural areas, not just in underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 megs on a mid band enabled product and so that competes extremely well against cable.

And then you pivot back capacity, where you have available and you serve the needs of fixed wireless. So you put those two things together, we see a market opportunity of about 400000. But usually. You would see growth rates starting to slow. As you reach the kind of customer scale that we've reached so when you first rollout of products. The first five thousands in the first 10. 10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

That's a combination of two factors.

Speaker Change: It's a combination of the.

The market dynamics.

But usually. You would see growth rates starting to slow. As you reach the kind of customer scale that we've reached so when you first rollout of products. The first five thousands in the first 10. 10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Speaker Change: We believe this product is competitive.

You would see growth rates starting to slow. As you reach the kind of customer scale that we've reached so when you first rollout of products. The first five thousands in the first 10. 10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Speaker Change: Versus the network dynamics of.

Usually, you would see growth rates starting to slow as you reach the kind of customer scale that we've reached. So when you first rollout a product, the first 5,000, the first 10,000 customers you see fantastic growth but then as you start hitting scale, the numbers become more challenging. The real impact of mid-band for us is all of a sudden we can offer a drastically faster product that competes not just in rural areas, not just in underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 megs on a mid band enabled product and so that competes extremely well against cable.

As you reach the kind of customer scale that we've reached so when you first rollout of products. The first five thousands in the first 10. 10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

This is a product that rides on top of the investments that have been made in mobility.

The first five thousands in the first 10. 10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Speaker Change: As I've said.

Speaker Change: Transparent about this in the past this is not a product that pays for itself right. It doesn't pay for all the capital requirements that are needed to put new radios and new towers in place and so you put capacity in place for the mobile subscriber and then you pivot that capacity, where you have an available and you serve the needs of fixed wireless. So you put those two things together, we see a market opportunity.

10000 customers you see fantastic growth right, but then as you start hitting scale. <unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

<unk> become more challenging. Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Mid band for US is we can offer a drastically faster. Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Faster product. <unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

<unk> is not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or nothing. We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

Speaker Change: You have about 400000.

Speaker Change: Usually.

Speaker Change: You would see growth rates starting to slow.

We can offer 300 beds. On a mid band enabled product. So that competes extremely well.

On a mid band enabled product. So that competes extremely well.

As you reach the kind of customer scale that we've reached so when you first roll out of product.

So that competes extremely well.

And so we expect that mid band product to be the key driver of growth going into 2024 and in 2025 and it opens up new geographies for us. As I mentioned, we should have 30% of our towers carrying almost 50% of our traffic fired up with mid band by the end of the year. We'll be doing that on a steady cadence and every time we upgrade a product or we upgrade a tower with mid band that shows up for our stores as an opportunity to sell an enhanced broadband product to our fixed wireless customers. And so the net impact of it all is that we expect that that attractive growth that we've seen in fixed wireless could continue notwithstanding the fact that that business continues to scale to larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and the impact of mid band.

Speaker Change: <unk> 5000 in the first 10000 customers you see fantastic growth right, but then as you start hitting scale the numbers become more challenging.

Speaker Change: Impact of mid band for US is all of a sudden we can offer a drastically faster product that competes.

And it opens up new geographies for us. As I mentioned, we should have 30% of our towers carrying almost 50% of our traffic fired up with mid band by the end of the year, we're doing that on a steady cadence and every time, we upgraded product upgrade of tower with mid band that shows up in for our stores as a opportunity to sell an enhanced broadband product to <unk>. Wireless customers and so the net impact of it all is that we expect that that attractive growth that we've seen in fixed wireless to continue notwithstanding the fact that that business continues to scale. To larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and have the impact of fixed wire I mean, excuse me of mid band.

As I mentioned, we should have 30% of our towers carrying almost 50% of our traffic fired up with mid band by the end of the year, we're doing that on a steady cadence and every time, we upgraded product upgrade of tower with mid band that shows up in for our stores as a opportunity to sell an enhanced broadband product to <unk>. Wireless customers and so the net impact of it all is that we expect that that attractive growth that we've seen in fixed wireless to continue notwithstanding the fact that that business continues to scale. To larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and have the impact of fixed wire I mean, excuse me of mid band.

Speaker Change: Not just in rural areas not just in an underserved and not just where the competitor is DSL or satellite or or nothing.

Speaker Change: We can offer 300 Meg.

Speaker Change: On a mid band enabled product and so that competes extremely well against cable.

Wireless customers and so the net impact of it all is that we expect that that attractive growth that we've seen in fixed wireless to continue notwithstanding the fact that that business continues to scale. To larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and have the impact of fixed wire I mean, excuse me of mid band.

And so we expect that mid band product to be the key driver of growth going into 2024 and in 2025.

To larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and have the impact of fixed wire I mean, excuse me of mid band.

Speaker Change: And it opens up new geographies for us.

Speaker Change: As I mentioned, we should have 30% of our towers carrying almost 50% of our traffic fired up with mid band by the end of the year, we'll be doing that on a steady cadence and every time, we upgraded product will be upgraded tower with mid band that shows up in for our stores as a opportunity to sell an enhanced broadband product to our fixed.

Sergey Dluzhevskiy: Yes, thank you. My second question is for Doug. You've made some progress on the cost optimization program, but it's still [inaudible] for you in 2024. If you could provide more color on maybe [inaudible] categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them?

My second question is for Doug. Yeah. <unk> made some progress on the cost optimization program, but still. For you in 2024, if you could provide more color on maybe reached close categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them. Yes, well.

Yeah. <unk> made some progress on the cost optimization program, but still. For you in 2024, if you could provide more color on maybe reached close categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them.

<unk> made some progress on the cost optimization program, but still. For you in 2024, if you could provide more color on maybe reached close categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them.

For you in 2024, if you could provide more color on maybe reached close categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them.

Speaker Change: Wireless customers and so the net impact of it all is that we expect that that attractive growth that we've seen in fixed wireless to continue notwithstanding the fact that that business continues to scale.

Yes, well.

Doug Chambers: Sergey, first of all, you see the progress we've made on that and when you look at our 2022 margin compared to our 2023 margin, we went from 25% to 27% as we talked about in our remarks. The program is working and just to emphasize, we have this program organized across our business. We have 12 campuses, we have accountability from all of our leaders and everybody is deliberating on this program, so it's been really successful. We'll continue to go across the whole business for savings, we still have opportunities in really all of our areas, but as far as where most of the dollars are, it sort of follows our P&L right. So we have a lot of dollars of course in engineering opex that will continue to provide significant savings as well market in IT. So we really are proud of what we've done so far, there's more to do and it's going to be across the business.

Speaker Change: To larger and larger numbers. So hopefully that gives you a sense about how we're thinking about it and have the impact of fixed wire I mean excuse me.

Speaker Change: <unk>.

Speaker Change: Yes. Thank you.

Speaker Change: And my second question is for Doug.

Speaker Change: Hugh.

Doug: Made some progress on the cost optimization program, but it's still a.

All of our leaders and everybody has deliberated on this program. So it's been really successful we'll continue to. Go across the whole business for savings, we still have opportunities in <unk>. Really all of our areas, but as far as where most of the dollars are it sort of follows our P&L right. So we have a lot of dollars of course in engineering Opex that will continue to provide significant savings. Well market in it so. We've. Yes. Really proud of what we've done so far.

Our focus for you in 2024, if you could provide more color on maybe reached close categories do you see as opportunities for more meaningful cost reduction over the next 12 to 18 months, how should we think about them.

Go across the whole business for savings, we still have opportunities in <unk>. Really all of our areas, but as far as where most of the dollars are it sort of follows our P&L right. So we have a lot of dollars of course in engineering Opex that will continue to provide significant savings. Well market in it so. We've. Yes. Really proud of what we've done so far.

Really all of our areas, but as far as where most of the dollars are it sort of follows our P&L right. So we have a lot of dollars of course in engineering Opex that will continue to provide significant savings. Well market in it so. We've. Yes. Really proud of what we've done so far.

Yes sure.

Speaker Change: First of all you see the progress we've made on that and when you look at our 2022 margin compared to our 2023 margin went from 25% to 27% as we talked about.

Well market in it so. We've. Yes. Really proud of what we've done so far.

Speaker Change: Marks the programs working and just to emphasize we have this program organized across our business. We have 12 campuses. We have accountability from all of our leaders and everybody has deliberated on this program. So it's been really successful we'll continue to.

We've. Yes. Really proud of what we've done so far.

Yes. Really proud of what we've done so far.

Really proud of what we've done so far.

there's more to do and it's going to be across the business. Sergey, I'll just chime in. And thank you for directing the cost question to the CFO, but CEO occasionally has something to do with it too so

there's more to do and it's going to be across the business.

Laurent Therivel: Sergey, I'll just chime in. And thank you for directing the cost question to the CFO, but CEO occasionally has something to do with it too so I won't dump it all on Doug. One thing that we've seen a lot of success with is our efforts around automation and our efforts around transparency and flexibility for our customers. And so the example I'll give there is the upgraded bill that we provided to our customers. So we've rolled out a new bill format, the first change that we made was almost a year ago where we changed our approach to proration.

I'll just chime in and thank you for directing the cost question to the CFO, but CEO occasionally has something to do with it too so.

Speaker Change: Go across the whole business for savings, we still have opportunities.

I won't dump it all on Doug. One thing that we've seen a lot of success with is our efforts around automation and our efforts around transparency and flexibility for our customers. And so the example I'll give there is the upgraded bill that we provided to our customers. So we've rolled out a new bill format, the first change that we made was almost a year ago where we changed our approach to proration.

One thing that we've seen a lot of we've seen a lot of success with our efforts around automation and our efforts around transparency and flexibility for our customers and so the example, I'll give there is the upgraded bill that we provided to our customers. So we both we've rolled out a new bill format. The first change that we made was almost a year ago, where we changed our approach to proration.

Speaker Change: Really all of our areas, but as far as where most of the dollars are it sort of follows our P&L right. So we have a lot of dollars of course in engineering Opex that will continue to provide significant savings.

Speaker Change: Well market in it so.

Speaker Change: We've.

The first change that we made was almost a year ago, where we changed our approach to proration.

Speaker Change: We really are proud of what we've done so far.

There is more to do and it's going to be across the business.

The second thing that we've done is we've recently launched an entirely new format for our customers providing them a lot of transparency, what they can expect, how the bill breaks down, what they can expect the following months. It's all automated. That is significantly driven down cost of care, that's significantly reduced what I would call service driven visits to our stores. We still love to see our customers in our stores so those don't bother me but it helps our customers walking in the store with intent to buy rather than with a billing question.

Speaker Change: I'll just chime in and thank you for directing the cost question to the CFO, but CEO occasionally has something to do with it too so.

Speaker Change: I don't dump it all on Doug.

Speaker Change: One thing that we've seen a lot of we've seen a lot of successes is our efforts around automation and our efforts around transparency and flexibility for our customers and so the example, I'll give there is the upgraded bill that we provided to our customers. So we both we've rolled out a new bill format.

Service driven visits to our stores, we still love to see our customers in our stores. So theres no bother me. But it helps our customers walking in the store with intent to buy rather than with a billing question.

But it helps our customers walking in the store with intent to buy rather than with a billing question.

Speaker Change: The first change that we made was almost a year ago, where we changed our approach to proration.

So simple moves like that, moves that are focused on transparency, moves that are focused on flexibility, they're upfront investments that we make but they would also bring down cost, but they bring down costs without any kind of a negative experience on the customer. In fact, it's a positive experience on the customer and you can probably expect to see more of those automation and digital investments from us in this year and beyond.

Speaker Change: The second thing that we've done is we've recently launched an entirely new format for our customers providing them a lot of transparency what they can expect how the bill breaks down what they can expect the following months. It's all automated that is significantly driven down cost of care, that's significantly reduced what I would call.

In this year and beyond. Got it.

Got it.

Sergey Dluzhevskiy: Got it. And my last question a question on this call is for Michelle. So you've made a significant investment [inaudible] expanding your fiber footprint and you're still continuing your fiber build. I guess given where you are right now in terms of [inaudible], how do you feel about the conversion of your [inaudible] fiber customers. And also maybe if you could provide more color as far as what has been working lately for you in terms of conversion of pricings into paying customers and what still needs to be improved in your opinion in 2024.

Service driven visits to our stores, we still love to see our customers in our stores. So theres no bother me.

So you've made a significant investment by us expanding. Fiber footprint and Youre still continuing or is your fiber build I guess, given where you are right now in terms of both things. How do you feel about conversion of your best things in Japan fiber customers. And also maybe if you could provide more color as far as what have you been working lately for you in terms of conversion the pricings into paying customers and what still needs to be improved in your opinion in 2024.

Fiber footprint and Youre still continuing or is your fiber build I guess, given where you are right now in terms of both things. How do you feel about conversion of your best things in Japan fiber customers. And also maybe if you could provide more color as far as what have you been working lately for you in terms of conversion the pricings into paying customers and what still needs to be improved in your opinion in 2024.

Speaker Change: But it helps our customers walking in the store with intent to buy rather than with a billing questions.

Speaker Change: And so simple moves like that moves that are focused on transparency moves that are focused on flexibility our upfront investments that we make but they would also bring down costs, but they bring down costs without any kind of a negative experience on the customer in fact, it's a positive experience on a customer and you can probably expect to see more of those automation and digital investments from us.

How do you feel about conversion of your best things in Japan fiber customers. And also maybe if you could provide more color as far as what have you been working lately for you in terms of conversion the pricings into paying customers and what still needs to be improved in your opinion in 2024.

And also maybe if you could provide more color as far as what have you been working lately for you in terms of conversion the pricings into paying customers and what still needs to be improved in your opinion in 2024.

Speaker Change: In this year and beyond.

Speaker Change: Got it.

Michelle Brukwicki: Hi Sergey, thanks for the question. So yes, we have had a lot of success in continuing to grow our footprint and getting our build really progressing in 2023, we had our biggest year yet. And what we're seeing in terms of customer sales and conversions into our service address is actually becoming paying service addresses is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching.

Speaker Change: Last question a question on this call.

Yes, we have had a lot of success in continuing to grow our footprint and getting our build. Really progressing in 2023, we had our biggest year yet. And what we're seeing in terms of. Customer sales and conversions into our service address is actually becoming paying service addresses. <unk> is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so.

Michel So you've made a significant investment by us expanding fiber.

<unk> fiber footprint and Youre still continuing or is your fiber build I guess, given where you are right now in terms of both things.

Really progressing in 2023, we had our biggest year yet. And what we're seeing in terms of. Customer sales and conversions into our service address is actually becoming paying service addresses. <unk> is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so.

And what we're seeing in terms of. Customer sales and conversions into our service address is actually becoming paying service addresses. <unk> is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so.

Customer sales and conversions into our service address is actually becoming paying service addresses. <unk> is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so.

Michel: How do you feel about conversion of your best things in Japan fiber customers.

Michel: Uh huh.

Michel: And also maybe if you could provide more color as far as what has been working lately for you in terms of conversion of <unk> bank customers and what's still needs to be improved in your opinion in 2024.

<unk> is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so.

So in our broadband penetration, we do have a chart in one of our slides that shows you how we expect that broadband penetration to ramp over the first few years after addresses get launched. In year one, we expect it to be about 25% to 30%. So of the addresses that we launched about 20% or 30% of those addresses turn into paying customers and that's what were seeing and then slowly over the next few years that continues to build until you get to about a steady state of what we expect about 40% broadband penetration in those markets. So a few of our markets have been launched and around for long enough to be able to get to steady state. And in all of those early markets, we are all over the 40% broadband penetration that we had been looking for. So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

Michel: Hi, Sergey Thanks for the question so.

Sergey: Yes, we have had a lot of success in continuing to grow our footprint and getting our build.

Sergey: No.

Speaker Change: Really progressing in 2023, we had our biggest year yet.

Speaker Change: And what we're seeing in terms of customers.

<unk> paying customers and Thats, what were seeing and then slowly over the next few years that continues to build until you get to about a steady state of what we expect about 40% broadband penetration in those markets. So a few of our markets have been launched and around for long enough to be able to get to. Steady state. And in all of those early markets. We are all over the 40% broadband penetration that we had been looking for. So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

Speaker Change: Customer sales and conversions into our service address is actually becoming paying service addresses.

Speaker Change: Is meeting and exceeding what we had expected to see and this is happening generally across all of the markets that we've been launching so in our broadband penetration. We do have a chart in one of our slides that shows you. How we expect that broadband penetration to ramp over the first few years after addresses get launched in year one.

Steady state. And in all of those early markets. We are all over the 40% broadband penetration that we had been looking for. So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

And in all of those early markets. We are all over the 40% broadband penetration that we had been looking for. So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

Speaker Change: We expect it to be about 25% to 30% so of the addresses that we launch about 20% or 30% of those addresses turned into paying customers and thats what were seeing and then slowly over the next few years that continues to build until you get to about a steady state of what we expect about 40% broadband penetration.

Great, thank you. We have no further questions, I'll turn the call back over to Colleen Thompson for closing remarks.

Sergey Dluzhevskiy: Great, thank you.

Operator: We have no further questions, I'll turn the call back over to Colleen Thompson for closing remarks.

We have no further questions I'll turn the call back over to Colleen Thompson for closing remarks.

Colleen Thompson: Okay, thanks everyone for your time today. Please reach out to IR with any additional questions and have a great weekend.

Speaker Change: <unk> in those markets. So a few of our markets have been.

Operator: This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: <unk> and around for long enough to be able to get to steady state and in all of those early markets. We are all over the 40% broadband penetration that we had been looking for.

Okay.

[music].

Speaker Change: So we're really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.

[music].

Speaker Change: Alright, thank you.

We have no further questions I'll turn the call back over to Colleen Thompson for closing remarks.

Colleen Thompson: Okay. Thanks, everyone for your time today, please reach out to IR with any additional questions and have a great weekend.

Speaker Change: This concludes today's conference call. Thank you for your participation you may now disconnect.

Speaker Change: Okay.

Speaker Change:

Speaker Change: Yeah.

Q4 2023 United States Cellular Corp Earnings Call

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