Q1 2024 EchoStar Corp Earnings Call

Operator: Greetings, and welcome to EchoStar Corporation's first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone today should require operator assistance during the call, please press star zero from your telephone keypad.

Greetings welcome to Echostar Corporation's first quarter 2024 earnings conference call.

Operator: At the simulcast its roots are in listen only mode.

Operator: And answer session will follow the formal presentation.

Operator: If anyone should require operator assistance during the call. Please press star zero from your telephone keypad.

Operator: Please note, this conference is being recorded. At this time, I'll now turn the call over to Dean Manson. Dean, you may now begin your presentation.

Operator: Please note this conference is being recorded.

Operator: At this time I'll now turn the call over to Dean Matt Dean Manson Dean you May now begin your presentation.

Dean A. Manson: Thank you, Rob. Welcome to EchoStar's first quarter 2024 earnings call. We will begin with opening remarks from Hamid Akhavan, President and CEO, followed by Paul Orban, EVP and Principal Financial Officer, Gary Shandman, EVP and Group President of Video Services, Paul Gaske, COO of Hughes, and John Swearingen, President of Technology and COO. We request that any participant producing a report not identify other participants or their firms in such reports. We also do not allow audio recording, which we ask that you respect.

Dean A. Manson: Thank you Rob and welcome to Echostar is first quarter 2024 earnings call. We will begin with opening remarks from Hamid Akhavan, President and CEO, followed by Paul Orban, EVP and principal financial Officer, Gary Shannon EVP and group President of video services, Paul Gaskins C O L Hughes and <unk>.

Dean A. Manson: John Swearing-in President of Technology and C L.

Dean A. Manson: We request that any participant producing a report and identify other participants or their firms in such reports. We also do not allow audio recording which we ask that you respect all statements. We make during this call other than statements of historical fact constitute forward looking statements made pursuant to the safe Harbor provided by the private Securities Litigation Reform Act of 1994.

Dean A. Manson: All statements we make during this call, other than statements of historical fact, constitute forward-looking statements made pursuant to the safe harbor provided by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that could cause our actual results to be materially different from historical results and from any future results expressed or implied by the forward-looking statements. For a list of those factors and risks, please refer to our quarterly report, Form 10-Q, for the quarter ended March 31, 2024, filed on May 8 and our subsequent filings made with the SEC.

Dean A. Manson: These forward looking statements involve known and unknown risks uncertainties and other factors that could cause our actual results to be materially different from historical results and for any future results expressed or implied by the forward looking statements for a list of those factors and risks. Please refer to our quarterly report 10-Q for the quarter ended March 31.

Dean A. Manson: 2024 filed on May eight and our subsequent filings made with the SEC.

Dean A. Manson: All cautionary statements we make during the call should be understood as being applicable to any forward-looking statements we make, wherever they appear. You should carefully consider the risks described in our reports and should not place any undue reliance on any forward-looking statements. As we assume no responsibility for updating any forward-looking statements, we refer to OIBDA and free cash flow during this call. The comparable gap measure and a reconciliation for OIBDA are presented in our earnings release, and for free cash flow, those things are presented in our 10-Q. With that, I'll turn it over to Hamid.

Dean A. Manson: All cautionary statements, we make during the call should be understood as being applicable to any forward looking statements. We make wherever they appear you should carefully consider the risks described in our reports and should not place any undue reliance on any forward looking statements. We assume no responsibility for updating any forward looking statements.

Hamid: We refer to OIBDA and free cash flow during this call the comparable GAAP measure and a reconciliation for OIBDA is presented in our earnings release and for free cash flow of those things are presented in our 10-Q.

Hamid: With that I'll turn it over to Amit.

Hamid Akhavan: Thank you, Dean. Welcome, everyone.

Hamid: Dean welcome everyone. We appreciate you joining us today.

Hamid Akhavan: We appreciate you joining us today. We're just over four months into the merger between DISH and EchoStar, and operations are progressing as planned for the year. Given the nature of earnings calls, our prepared remarks will focus mainly on the operating business. However, we understand that most of you are also interested in hearing about our efforts to refinance our maturing debt obligations and improve our cash flow position. To that end, we continue to work on a number of avenues. We have received a variety of offers and are pursuing those which can support a long-term objective. The complex and delicate nature of this process demands time and confidentiality.

Hamid Akhavan: We are just over four months into the merger between dish and Echostar and operations are progressing to plan for the year.

Hamid Akhavan: Given the nature of earnings calls our prepared remarks will focus mainly on the operating business.

Hamid Akhavan: However, we understand that most of you are also interested in hearing about our efforts to refinance our maturing debt obligations.

Hamid Akhavan: And improve our cash flow position.

Hamid Akhavan: So that and we continue to work on a number of avenues. We have fielded a variety of offers and are pursuing those which can support our long term objectives.

Hamid Akhavan: The complex and delicate nature of this process demands timing confidentiality.

Hamid Akhavan: We will certainly have more to share in due course.

Hamid Akhavan: We will certainly have more to share in due course. As for the operating business, in the first quarter, we met our budget targets in nearly all important metrics in each of our business units. We will elaborate on some of those results during this call today. To start, as I shared on our last call, our 2024 operating plan targets a positive operating-free cash flow. This includes efficiencies, optimizations, and synergies, which result in a reduction in our annual total operating expenses of $1 billion.

Hamid Akhavan: As for the operating business in the first quarter, we met our budget targets in nearly all important metrics in each of our business units, we will elaborate on some of those results. During this call today too.

Hamid Akhavan: To start as I shared on our last call our 2024 operating plan targets.

Hamid Akhavan: Positive operating free cash flow. This includes efficiencies optimizations and synergies, which result in a reduction in our annual total operating expenses of $1 billion.

Hamid Akhavan: Our first quarter results keep us on track for achieving that objective. We have sharpened our leadership and operating business on three distinct go-to-market business units. This allows for greater accountability and profitability-focused management while providing our business leaders with greater flexibility when it's needed. We have tightened our focus on selectively acquiring and retaining higher-value subscribers, and our efforts are already showing up in Q1 numbers. Overall, ARPU is increasing in every business unit, while churn is down in pay TV and retail wireless.

Hamid Akhavan: Our first quarter results keeps us on track for achieving that objective.

Hamid Akhavan: Yes, sharpened our leadership and operating business on three distinct go to market business units.

Hamid Akhavan: This allows for greater accountability and profitability focused management, while providing our business leaders greater flexibility when it's needed we.

Hamid Akhavan: We have tightened our focus on selectively acquiring and retaining higher value subscribers and our efforts are already showing up in Q1 numbers overall, our buoys increasing in every business unit, while churn is down in pay TV in retail wireless.

Hamid Akhavan: As we work to improve our operating profitability, we have not lost our focus on it and edge on innovation. Our teams are hard at work developing and enhancing our catalog of offerings for consumer and enterprise customers with many first time wins in new sectors and channels.

Hamid Akhavan: As we work to improve our operating profitability, we have not lost our focus and edge on innovation. Our teams are hard at work developing and enhancing our catalog of offerings for consumer and enterprise customers, with many first-time wins in new sectors and channels. We have a state-of-the-art open RAN wireless network, which is now serving hundreds of thousands of happy customers and demonstrating its power and speed in trials. Our new Jupiter-3 broadband satellite, the largest ever in commercial operation, is attracting new customers at the fastest rate in many years, and the pay TV business unit's operational efficiency has improved year over year. We are pleased by our start to the year and plan to maintain the momentum through the rest of the year. With that, I will turn it over to Paul Orban.

Paul W. Orban: We have a state of the art open ran wireless network, which is now serving hundreds of thousands of happy customers and demonstrating its power and the speed in trials.

Paul W. Orban: Our new Jupiter three broadband satellite the largest ever international operation is attracting new customers at the fastest rate in many years and the pay TV business units operational efficiency has improved year over year.

Paul W. Orban: We are pleased by our start to the year and plan to maintain the momentum through the rest of the year.

Hamid Akhavan: With that I will turn it over to Paul Orban for additional commentary on our Q1 numbers.

Paul W. Orban: Hey, thank you, Hamid. As with the last call, I will briefly touch on the Going Concern qualification. Please read the financial statements contained in our 10-Q to see the precise disclosure. As a reminder, this evaluation is a technical accounting determination that requires us to consider our current cash position and project our cash position one year from today. And it does not allow us to consider any new funding sources unless that financing is committed as of today.

Paul W. Orban: Hey, Thank you Amit as with the last call I will briefly touch on the going concern qualification. Please read the financial statements contained in our 10-Q, you'll see the precise disclosure.

Paul W. Orban: As a reminder, this evaluation is a technical accounting determination at.

Paul W. Orban: That requires us to consider our current cash position and project our cash position one year from today and it does not allow us to consider any new funding sources unless that financing is committed as of today.

Paul W. Orban: As of the end of the first quarter, our cash and cash equivalents and marketable investment securities totaled $766 million. On February 16th, we completed the purchase of S&R Management's ownership interest in S&R HOCO for $442 million, resulting in SNR now being wholly owned by EchoStar.

Paul W. Orban: As of the end of the first quarter, our cash and cash equivalents and marketable investment securities totaled $766 million.

Paul W. Orban: On February 16th we completed the purchase of SNR managements ownership interest in SNR holdco for $442 million.

Paul W. Orban: Resulting in F&I are now being wholly owned by Echostar.

Paul W. Orban: On March 15th, we paid off our $1 billion debt maturity with cash on hand. We have roughly $2 billion of debt maturing in November 2024, and we do not currently have the necessary cash on hand or projected future cash flows to fund fourth quarter operations or the November 2024 debt maturing. To address our capital needs, as Hamid mentioned, we are in discussions with funding sources at all levels in our capital structure.

Paul W. Orban: At March 15th we paid off our $1 billion debt maturity with cash on hand, we.

Paul W. Orban: We have roughly $2 billion of debt maturing.

Paul W. Orban: In November 2024, and we do not currently have the necessary cash on hand, our projected future cash flows to fund fourth quarter operations or the November 24 debt maturity.

Paul W. Orban: To address our capital needs as Hamid mentioned, we are in discussions with funding sources at all levels and our capital structure.

Paul W. Orban: As I highlighted our teams are focused on maintaining positive operating cash flow defined as free cash flow, excluding debt service payments and onetime payments related to the construction of our Echostar 25 satellite.

Paul W. Orban: As Hamid highlighted, our teams are focused on maintaining positive operating cash flow. The fund has free cash flow, excluding debt service payments and one-time payments related to the construction of our AquaStar 25 satellite. We are on track to meet this goal in 2024, in part, by continuing to execute our plan to remove $1 billion of operating expenses from the business, which includes Merger Center. We continue to manage all of our brands with a focus on financial discipline and a goal to onboard high-quality and highly profitable subscribers. We are seeing the results in reported dish and retail wireless churn.

Paul W. Orban: We are on track to meet this goal in 2024 and part by continuing to execute our plan to remove $1 billion of operating expenses from the business, which includes merger synergies.

Paul W. Orban: We continue to manage all of our brands with a focus on financial discipline and a goal to onboard high quality and highly profitable subscribers.

Paul W. Orban: We are seeing the results in our reported dish and retail wireless churn.

Paul W. Orban: Now, let's review our financial performance from the first quarter. Revenue was $4 billion in the first quarter of 2024. That's down 8% year over year, primarily due to subscriber declines across pay TV, retail, wireless, broadband, and satellite. OEBD was $470 million, down $231 million year-over-year, driven by the ramp and operating costs for the network as we have more sites online as well as decreased margin from having fewer subscribers, as previously mentioned.

Speaker Change: Now, let's review our financial performance from the first quarter.

Paul W. Orban: Revenue was $4 billion in the first quarter of 2024, that's down 8% year over year, primarily due to subscriber declines across pay TV retail wireless and broadband and satellite services.

Paul W. Orban: OIBDA was $470 million down $231 million year over year.

Paul W. Orban: Driven by the ramp in operating cost for the network as we have more sites online as well as decreased margin from having fewer subscribers year over year as previously mentioned.

Paul W. Orban: Free cash flow was negative $226 million, that's down 66 million year over year, we had a decrease in capital spend for the network of $281 million, which was in line with our prior guidance.

Paul W. Orban: Pre-cash flow was negative $226 million; it's down 66 million year over year. We had a decrease in capital spent on the network of $281 million, which was in line with the prior guidance. The decrease in capital spend was largely offset by the decrease in OIDA and was also negatively impacted by working capital items, which we expect to reverse in Q2. Without these working capital changes, we are flat to last year. As I discussed last call, we do expect CapEx for the year to be roughly half of what it was in 2023, with that electric vehicle.

Paul W. Orban: A decrease of capital spend was largely offset by the decrease in OIBDA and was also negatively impacted by working capital items, which we expect to reverse in Q2.

Paul W. Orban: Absent these working capital changes were flat to last year.

Paul W. Orban: As I discussed last call, we do expect capex for the year to be roughly half of what it was in 2023.

Paul W. Orban: With that I'd like to turn it over to Gary to discuss our pay TV unit.

Gary Schanman: Thank you, Paul. On the pay TV side, we finished Q1 with approximately 8.2 million customers. We're seeing positive signs of increased operational efficiency in the business, and our focus on customer loyalty and improved quality subscriber acquisition enabled us to reduce churn across our video services business versus last year, while also increasing ARPU by 4.6% per subscriber. All in, the improved churn, ARPU, and a significantly lower variable cost achieved by our savings for growth efforts resulted in higher per sub profitability.

Speaker Change: Thank you Paul on the pay TV side, we finished Q1 with approximately $8 2 million customers. We're seeing positive signs of increased operational efficiency in the business and our focus on customer loyalty and improve quality subscriber acquisition enabled us to reduce churn across our video services business versus last year, while also increasing ARPA.

Gary Schanman: Four 6% per subscriber all in the improved churn Arco and significant lower variable costs achieved by our savings for growth efforts resulted in higher per sub profitability in.

Gary Schanman: In particular, our media sales revenue per subscriber continues to grow year over year, and our ability to deliver linear, programmatic, and addressable advertising at scale is one of our strengths. And we're really excited to have launched Dish Connected, a new, first-of-its-kind service that allows us to deliver programmatic advertising to our set-top-box-based customers. We continue to experience competitive pressure from programmers who ship content from traditional pay TV to their own direct-to-consumer services, and this was evident throughout Q1, during the college football bowl season, the NFL playoffs, and both the men's and women's NCAA basketball tournaments.

Gary Schanman: In particular, our media sales revenue per subscriber continues to grow year over year, and our ability to deliver linear programmatic and addressable advertising at scale is one of our strengths and we're really excited to have launched disconnected a new first of its kind service that allows us to deliver programmatic advertising to our set top box based customers.

Gary Schanman: We continue to experience competitive pressure from programmers, who ship content from traditional pay TV to their own direct to consumer services and this was evident throughout Q1 during the college football Bowl season, NFL playoffs, and both the men's and women's NCAA basketball tournament. This has been most pronounced as Max.

Gary Schanman: This has been most pronounced as Max continues to offer NBA and NHL playoffs for free. Noteworthy also, and worth mentioning, is the pending launch of the Disney-Fox-Warner Bros. Sports JV, which we find fundamentally anti-competitive and warrants an examination by the government.

Gary Schanman: <unk> continues to offer NBA and NHL playoffs are free.

Gary Schanman: Noteworthy also in worth mentioning is the pending launch of the Disney Fox Warner Brothers Sports, JV, which we find fundamentally anti competitive and warrants an examination by the government.

Gary Schanman: In regards to Dish TV, we finished the quarter with approximately 6.3 million subscribers, with Q1 churn significantly lower compared to the same period in 2020. Our Q1 subscriber numbers for Dish TV were again negatively impacted by ongoing local broadcaster disputes. However, on that note, I'm pleased to report that we did settle a 17-month dispute with Cox Media Group last month, and we look forward to a less disruptive year in 20

Gary Schanman: In regards to dish TV <unk>, we finished the quarter with approximately $6 3 million subscribers with Q1 churn significantly lower compared to the same period in 2023.

Gary Schanman: Our Q1 subscriber numbers for dish TV were again negatively impacted by ongoing local broadcaster disputes. However on that note I am pleased to report that we did settle a 17 month dispute with Cox Media group last month, and we look forward to a less disruptive year in 2024.

Gary Schanman: We're happy with our initial success in cross selling boost in Hughes net to our dish TV base. This TV cross sell accounted for 9% of Hughes <unk> gross adds in Q1, and we're working on ways to further integrate our products to improve the customer experience and our value proposition.

Gary Schanman: We're happy with our initial success in cross-selling Boost and HughesNet to our Dish TV base. Dish TV cross-sell accounted for 9% of HughesNet's gross ads in Q1, and we're working on ways to further integrate our products to improve the customer experience and our value proposition. Regarding the swing business, one of the industry's only profitable streaming services, we finished the quarter with approximately 1.9 million subscribers, a loss of approximately 135,000 in Q1, about 100,000 better year over year.

Gary Schanman: Regarding the swim business one of the industry's only profitable streaming services. We finished the quarter with approximately $1 9 million subscribers a loss of approximately 135000 in Q1 about 100000 better year over year.

Gary Schanman: This improved churn is due to our purposeful focus on high-quality, profitable subscribers and an improved customer experience. In fact, our increased product performance and 2023 features have led to an increase of 18% year-over-year viewership per subscriber. And we are already seeing early signs of higher engagement driven by new Q1 launches, including our rewards program, which is our new watch and win loyalty program for both Sling and free stream fast users; and our Arcade, which is the first streaming TV-integrated watch-and-play casual gaming service.

Gary Schanman: This improved churn is due to our purposeful focus on high quality profitable subscribers and an improved customer experience.

Gary Schanman: In fact, our increased product performance and 2023 features have led to an increase of 18% year over year viewership per subscriber and we are already seeing early signs of higher engagement driven by new Q1 launches, including our rewards program, which is our new Washington win loyalty program for both sling and free stream fast users.

Gary Schanman: Our arcade, which is the first streaming.

Gary Schanman: <unk> TV integrated Washington play casual gaming service.

Gary Schanman: Our new Sports 3-Day Replay, which is a new feature for our DVR users that lets them watch the past three days of sports content, and we launched Fast Industries' first free DVR on Sling FreeStream. With arcade rewards and free DVR, our FreeStream service is unique in the market and emerging as a significant and efficient funnel for new customer acquisition and additional media sales. I'm pleased with the momentum that we're building and look forward to where we take our business in 2024. Now I'd like to turn it over to Paul Gaske, who will cover broadband and satellite services.

Gary Schanman: Our new sports three day replay, which is a new feature for our DVR users that lets them watched the past three days of sports content and we launched the fast industries first free DVR on sling free stream with arcade rewards and free DVR, our free steam services unique in the market and emerging as a significant and efficient funnel for new.

Paul Gaske: <unk> acquisition and additional media sales I'm pleased with the momentum that we're building and look forward to where we take our business in 2024.

Paul Gaske: Now I'd like to turn it over to Paul <unk>, who will cover broadband and satellite services.

Paul Gaske: Thank you, Gary. Our broadband and satellite services segment operates in both the consumer and enterprise markets. Our consumer business under the Husenet brand expanded acquisition of subscribers on the Jupiter 3 satellite during the first quarter. We are pleased with the initial response to the new service plans introduced with the additional capacity of Jupiter 3. We also began upgrading existing subscribers on Jupiter 1 and 2, enabling them to benefit from the greater speeds and data provided by the new plan. Our focus remains on attracting the highest-value subscribers and reducing churn in 2024. As a result, our subscriber losses decreased to 26,000, the lowest reduction in 10 quarters.

Paul Gaske: Thank you Gary our broadband and satellite services segment operates in both the consumer and enterprise markets, our consumer business under the Hughesnet brand expanded acquisition of subscribers on the Jupiter three satellite during the first quarter. We are pleased with the initial response to the new service plans introduced with the additional capacity of <unk>.

Paul Gaske: Free.

Paul Gaske: We also began upgrading existing subscribers on Jupiter, one and two and enabling them to benefit from the greater speeds in data provided by the new plants.

Paul Gaske: Our focus remains on tracking the highest value subscribers and reducing churn in 2024.

Paul Gaske: As a result, our subscriber losses decreased.

Paul Gaske: 26000, the lowest reduction in 10 quarters.

Paul Gaske: We finished Q1 with approximately 978,000 satellite broadband subscribers. We continue to work on expanding our Hughes Enterprise business on several fronts, and we expect Hughes to cross over the 50% threshold of its revenues coming from enterprises this year. In our Hughes-managed LEO business, we began initial shipments late last year of a Hughes-manufactured user terminal based on our unique flat panel electronically steered antenna, also known as an ESA. The ESA, which is manufactured in our U.S. based facility.

Paul Gaske: We finished Q1 with approximately 978000 satellite broadband subscribers.

Paul Gaske: We continue to work on expanding our Hughes enterprise business on several fronts and we expect used to cross over the 50% threshold of its revenues coming from enterprise this year.

Paul Gaske: In our Hughes managed Leo business. We began initial shipments late last year of a huge manufactured user terminal based on our unique flat panel electronically steered antenna also known as an either.

Paul Gaske: <unk>, which is manufactured in our U S. Based facility, we received very positive feedback from the marketplace on the performance and value of our Isa.

Paul Gaske: We've received very positive feedback from the marketplace on the performance and value of our ESA. As mentioned on our last call, Gartner upgraded us from a challenger to a leader position in the 2023 Gartner Magic Quadrant. We're one of a few companies that has the ability to deliver best-in-class enterprise services on a global scale, allowing us to address the broad managed services market. In one example of such opportunities, Hughes Defense teamed with Boost Wireless and was selected as one of the few providers to supply 5G connectivity and devices under the umbrella of a $2.7 billion 10-year IDIQ contract with the DoD.

Paul Gaske: As mentioned on our last call Gartner upgraded us from a challenger to our leader position in the 2023 Gartner Magic quadrant.

Paul Gaske: We're one of a few companies.

Paul Gaske: That has the ability to deliver best in class Enterprise services on a global scale.

Paul Gaske: Allowing us to address broad managed services market.

Paul Gaske: And one example of such opportunities huge defense teamed with boost wireless and were selected as one of the few providers to supply <unk> connectivity and devices under the umbrella of a $2 7 billion dollar 10 year I'd IQ contract with the Dod.

Paul Gaske: Lastly, our entry into the in flight Communications business is progressing as we complete key development milestones and prepare to provide service to airline customers such as Delta Airlines.

Paul Gaske: Lastly, our entry into the inflight communications business is progressing as we complete key development milestones and prepare to provide service to airline customers such as Delta Air Lines. With that, I'll turn it back to Hamid for an update on our retail wireless business.

Paul Gaske: With that I will turn it back to <unk> for an update on our retail wireless business.

Hamid Akhavan: Thank you, Paul. As has previously been shared, I've taken the helm of our retail wireless business unit. As we search for a new leader of the segment, I'm happy to report that we have hit a number of new promising developments. We finished the quarter with approximately 7.3 million subscribers, and while it's not broken out in our numbers, Boost Mobile was net positive in subscriber growth for the month of March. We are not quite where we want to be, but we are encouraged by our record churn performance, the lowest churn we have had since acquiring the Boost business.

Hamid Akhavan: Thank you Paul.

Hamid Akhavan: <unk> has previously been shared I've taken the helm of our retail wireless business unit as we search for a new leader of the segment I'm happy to report that we have hit a number of new promising developments.

Hamid Akhavan: We finished the quarter with approximately $7 3 million subscribers and while it's not broken out in our numbers boost mobile was net positive in subscriber growth for the month of March we are not quite where we want to be but we are encouraged by our record churn performance. The lowest churn we have had since acquiring the boost business the accomplished.

Hamid Akhavan: We accomplished this while still maintaining what we believe is the highest output in the prepaid market, which rose slightly during the past quarter. As in all our business units, our focus has been on acquiring the highest quality subscribers, improving the customer experience, and optimizing our network. Our new family plans, as well as our tax season offers, received a positive response and will continue to expand our customer base through additional competitive offers, flexible service options, and the economic benefits of using our own network.

Hamid Akhavan: <unk> wireless still maintaining what we believe is the highest ARPA in the prepaid market.

Hamid Akhavan: Which rose slightly during the past quarter.

Hamid Akhavan: All of our business units, our focus has been on acquiring the highest quality subscribers, improving the customer experience and optimizing our network.

Hamid Akhavan: Our new family plans as well as our tax season offers received a positive response and we will continue to expand our customer base through additional competitive offers flexible service options and the economic benefits of using our own network we.

Hamid Akhavan: We intend to build on this positive momentum, particularly as we hit critical selling seasons in the back half of the year. To further capitalize on our owner economics, we successfully initiated a migration of hundreds of thousands of customers from our partner networks to our own boost network. This on-net subscriber base will continue to grow throughout the year. In spite of this momentum in our prepaid business, we realize we have work to do to improve our offerings and execution in the postpaid space, a key objective for the back half of the year.

Hamid Akhavan: We intend to build upon this positive momentum, particularly as we hit critical selling seasons in the back half of the year. So.

Hamid Akhavan: To further capitalize on our on owner economics, we successfully initiated in migration of hundreds of thousands of customers from our partner networks through our own network.

Hamid Akhavan: On net subscriber base will continue to grow throughout the year in spite of this momentum in our prepaid business. We realize we have to work we have work to do to improve our offerings and execution in our postpaid space a key objective for the back half of the year.

Hamid Akhavan: With the expiration of government funding on June 1 for the HCP program, we are actively working with our HCP customers to transition them to appropriate plans within our GenMobile and BoostMobile brands, including the National Lifeline program. Ensuring Americans have access to high-speed internet and mobile services is important to the development of our society, and we believe these are essential services in today's world. We will do what we can to the best of our means to support the continuation of service for these individuals.

Hamid Akhavan: With the expiration of government funding on June one.

Hamid Akhavan: The ACP program, we are actively working with our ACP customers to transition them to appropriate plans within our gen mobile and boost mobile brands, including the National Lifeline program, ensuring Americans have access to high speed Internet and mobile services is important to the development of our society and we believe these are essential services in today's <unk>.

Hamid Akhavan: World You will do what we can to the best of our means to support the continuation of service for these individuals. Nonetheless, we expect to lose some customers with the exploration of the program, but we do not expect these losses to have a material impact on our operations or financial performance, Let me now hand there.

Hamid Akhavan: Nonetheless, we expect to lose some customers with the expiration of the program, but we do not expect these losses to have a material impact on our operations or financial performance. Let me now hand the call to John to discuss our network deployment progress. Thank you, Hamid.

Hamid Akhavan: Call to John to cover our network deployment progress.

John: Thank you.

John W. Swieringa: The team has been hard at work executing on our network deployment plan and operating our first-of-its-kind Open RAN cloud-native network. As Hamid mentioned, we are actively transitioning existing customers with network-compatible devices to our own network and adding new customers as well. Among other tactics, we've enabled first of its kind over-the-air migrations with minimal customer impact.

John: The team has been hard at work executing on our network deployment plans and operating our first of its kind open ran cloud native network.

John W. Swieringa: As Hamid mentioned, we are actively transitioning existing customers with network compatible devices to our own network and adding new customers as well.

John W. Swieringa: Among other tactics, we've enabled first of its kind over the air migrations with minimal customer impact.

John W. Swieringa: Throughout this process, we've been pleased with the performance of the network and our ability to take greater advantage of owner economics while we are still in the early stages of commercializing our network. Our on-net customers are experiencing accessibility, retainability, and throughput performance on par with competitive services. We also addressed a key product gap for our customers in the first quarter with our launch of our global roaming service. During Q1, five out of 10 devices sold and activated at Boost were compatible with our network, and three of those five activated directly on it. We now have network-compatible devices available from all of our major OEMs, and options are available at a wide variety of price points.

John W. Swieringa: Throughout this process, we've been pleased with the performance of the network and our ability to take greater advantage of owner economics.

John W. Swieringa: While we are still in the early stages of commercializing our network. Our on net customers are experiencing accessibility retain ability and throughput performance on par with competitive services.

John W. Swieringa: We also addressed the key product gap for our customers in the first quarter with our launch of global roaming services.

John W. Swieringa: During Q1, five out of 10 devices sold and activated a boost where compatible with our network and.

John W. Swieringa: And three of those five activated directly on net.

John W. Swieringa: We now have network compatible devices available from all of our major Oems and options available in a wide variety of price points.

John W. Swieringa: As the number of network compatible devices in our <unk> voice coverage continues to grow throughout the year, we expect device activations on our network to increase.

John W. Swieringa: As the number of network-compatible devices and our 5G voice coverage continue to grow throughout the year, we expect device activations on our network to increase. In March, we completed our network drive test and filed the results with the FCC, certifying that our 5G network provides download speeds of 35 megabits per second or greater to more than 70% of the U.S. population. This was an important and final component of our 2023 5G Network Deployment Committee.

John W. Swieringa: In March we completed our network drive test and filed the results with the FCC.

John W. Swieringa: Our defying that our fiber network provides download speeds of 35, megabits per second or greater to more than 70% of the U S population.

John W. Swieringa: This was an important and final component of our 2023 <unk> network deployment commitment.

John W. Swieringa: It confirms the Boost Network is delivering high-quality service to our customers, which is a major achievement and testament to the hard work our team put into building the world's first Open RAN network and doing that in record time. We are focused on expanding and optimizing the Boost Network to compete against the incumbents and on meeting our 2025 FCC milestone. In Q1, we invested $391 million, which is comparable to $672 million in Q1 of 2020.

John W. Swieringa: Confirms the boost network is delivering high quality service to our customers.

John W. Swieringa: Which is a major achievement and testament to the hard work of our team put into building. The world's first open ran network and doing that in record time.

John W. Swieringa: We are focused on expanding and optimizing the boost network to compete against the incumbents and on meeting our 2025 FCC milestones.

John W. Swieringa: In Q1, we invested $391 million, which is comparable to $672 million in Q1 of 2023.

John W. Swieringa: Our immediate focus has been on capital investments and optimizations required to have a competitive network for boost customers within our existing and future bond our footprint.

John W. Swieringa: Our immediate focus has been on capital investments and optimizations required to have a competitive network for boost customers within our existing and future Vonner footprint. This is a logical progression for us as we move from an accelerated build to running and optimizing our markets with a P&L mindset. Now I'd like to turn it back to Hamid.

Hamid Akhavan: This is a logical progression for us as we move from an accelerated build to running and optimizing our markets with a P&L mindset now.

Hamid Akhavan: Now I'd like to turn it back to Amy Thank.

Hamid Akhavan: Thank you, John. In summary, we fully appreciate that liquidity is the most prominent objective at the moment, which is driving our share performance. While we focus significant attention on this critical activity, we are laser focused on operating the business with greater efficiency and developing these long-term opportunities. We feel good about the prospects and trajectories of our two established business units, namely DISH and Hughes. Both business units are on track to deliver significantly higher efficiencies than Dash.

Hamid Akhavan: Thank you John.

Hamid Akhavan: In summary, we fully appreciate that liquidity is the most prominent objective at the moment, which is driving our share performance.

Hamid Akhavan: While we focus significant attention on this critical activity.

Hamid Akhavan: Laser focus on operating the business with greater efficiency and developing these long term opportunities we feel good about the prospects and trajectories in our two established business units, namely dish and Hughes both business units are on track to deliver significantly higher efficiencies than last year.

Hamid Akhavan: As for our Nascent Retail Wireless Business Unit, it is getting its footing in the marketplace, starting with high on-net customer satisfaction, its lowest historical churn, and the highest ARPU in a pre-paid sector. We realize that we are facing an over-saturated consumer market with a slow expansion in share of wallet from consumers and the competitive nature of the postpaid segment, but we are yet to tap some of the advantages that an agile, non-legacy, and lightly utilized infrastructure affords us. All in all, I'm encouraged by the operating momentum we have established early in the year, which will help us as we tackle the significant challenges ahead. With that, we'll open it up for Q&A.

Hamid Akhavan: For our nascent retail wireless business unit. It is getting its footing in the marketplace, starting with high unmet customer satisfaction, its lowest historical churn and the highest <unk> in the prepaid segment. We realized we are facing an over saturated consumer market with a slow expansion and share of wallet from consumers and the competitive nature of the pulse.

Hamid Akhavan: <unk> segment, where we have yet to tap some of the advantages that an agile non legacy and likely utilize infrastructure affords us all in all I'm encouraged by the operating momentum we have established early in the year, which will help us as we tackle this significant challenges ahead.

Speaker Change: With that we'll open it for Q&A.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session from members of the analyst community.

Operator: Thank you. At this time, we'll be conducting a question and answer session for members of the analyst community. To ask a question today, press star 1 on your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.

Operator: Ask a question today, you May press star one from your telephone keypad and a confirmation tone will indicate your line is in the question queue.

Operator: You May press star two if you'd like to remove your question from the queue.

Operator: For participants using speaker equipment may be necessary to pick up your handset before pressing the star keys.

Operator: One moment, please, while we assemble a queue for questions. Thank you. Thank you. Our first question is from the line of Rick Prentiss with Raymond James. I'm pleased to see you with your question.

Operator: One moment, please while we assemble the queue for questions. Thank you.

Richard Hamilton Prentiss: Thank you. Our first question is from the line of Ric Prentiss with Raymond James. Please proceed with your question.

Speaker Change: All right everybody.

Richard Hamilton Prentiss: A couple of questions from my side. Hamid, you mentioned an oversaturated wireless market out there. Can you update us as far as what your thinking is on fixed wireless? That certainly seems to be a not-so-saturated market or one that wireless is taking a share from. Maybe easier to market with less cost than competing in the postpaid side. And related, the 5G private network wholesale aspect. Can you update us on that? Then I'll have a quick follow-up.

Richard Hamilton Prentiss: Couple of questions from my side, I mean, as you mentioned and over saturated wireless market out there.

Richard Hamilton Prentiss: Can you update us as far as what you're thinking is on fixed wireless.

Richard Hamilton Prentiss: It seems to me.

Richard Hamilton Prentiss: So saturated market one that wireless is taking share from.

Richard Hamilton Prentiss: Maybe easier to market with less cost.

Richard Hamilton Prentiss: Competing in the postpaid side and related.

Richard Hamilton Prentiss: The <unk> private network wholesale aspect can you update us on that and then all of a quick follow up.

Hamid Akhavan: Sure, thank you Rick. It's good to hear from you.

Speaker Change: Sure. Thanks, Thank you Rick.

Speaker Change: To hear from you.

Hamid Akhavan: The fixed wireless is something that certainly isn't the future in the cards for us like everybody else is focused on at the moment.

Speaker Change: A higher priority.

Speaker Change: For us is to make sure that we get are.

Hamid Akhavan: Prepaid and postpaid business on solid footing and migrate customers on net a greatest economic advantage for us is.

Hamid Akhavan: You know, the fixed wireless is something that certainly is in the future in the cards for us like everybody else is focused on. At the moment, a higher priority for us is to make sure that we get our prepaid and postpaid business on solid footing and migrate customers on net. The greatest economic advantage for us is, you know, loading up the network that we have now. And then certainly we have access to a number of additional opportunities to focus on right after that. I don't see us doing that this year.

Hamid Akhavan: We're loading up the network that we have now and then certainly we have access to a number of additional opportunities.

Hamid Akhavan: To focus on right after that I don't see us doing that this year.

Hamid Akhavan: For the rest of the year, we are solidly booked with optimizing our.

Hamid Akhavan: Economics of bringing customers on net as well.

Hamid Akhavan: You know, for the rest of the year, we are solidly booked with optimizing our, you know, economics of bringing customers on net. As for the, you know, fixed wireless, there's also opportunities for 12 gigahertz for fixed wireless and CBRS at 345 to 355. You know, we have access to that spectrum, and we think that those could potentially offer even more advantageous fixed wireless options with, you know, greater bandwidth, greater availability, you know, just better suited for that purpose.

Hamid Akhavan: Fixed wireless.

Hamid Akhavan: There's also opportunities for 12 gigahertz for fixed.

Hamid Akhavan: Wireless and <unk> at 345 to 355, we have access to those spectrum and we think that those probably potentially can offer even more advantageous fixed.

Hamid Akhavan: Fixed wireless offering options with.

Hamid Akhavan: Greater bandwidth greater availability.

Hamid Akhavan: Just better suited for that for that purpose. So we have in our arsenal those capabilities, which we need to develop so it would be it.

Hamid Akhavan: So we have in our arsenal, you know, those capabilities which we need to develop. So it'd be a business modeling and trade-off to see which one is best and maybe all of them. But certainly on the boost side, on the mobile side, we will not have an offering in the market for fixed wireless this year.

Hamid Akhavan: It would be a business modeling and tradeoff to see which one is best and maybe all of them, but certainly on the on the boost side on the on the.

Hamid Akhavan: Mobile side, we will not have an offering in the market for the fixed wireless this year.

Hamid Akhavan: I think you had a second part related to wholesale fiber.

Hamid Akhavan: Yes.

Hamid Akhavan: Again wholesale Esa.

Hamid Akhavan: Other opportunities for <unk> that we have some opportunities already in the works you have heard US about you know obviously that we'd be island, yet you know that we have done a private or a <unk> that is expanding to become two bases and we certainly think that has the potential to be far far larger than we are in good contact with the officials.

Hamid Akhavan: And we certainly think that it has the potential to be far, far larger, and we are in good contact with the officials and leaders of the government who seem to, you know, want to expand it. We are subject to their budget cycles, obviously. And, you know, but related to that, we just announced that we were one of the few suppliers. And for their purposes. So I'll leave it at that. But I think we have a lot of prospects in that area. But priority one right now this year is to get our, you know, basic prepaid and postpaid business significantly ramped up and brought on net.

Hamid Akhavan: Officials.

Hamid Akhavan: And leaders of the government that did seem to want to expand that we are subject to their budget cycles. Obviously.

Hamid Akhavan: But related to that we just announced that we were one of the few suppliers.

Hamid Akhavan: I think it was five or six suppliers altogether that got selected for a Dod Award.

Hamid Akhavan: The 10 year program that they have and I think the total.

Hamid Akhavan: Program is $2 7 billion.

Hamid Akhavan: We certainly expect to get our fair share of that and to US a fair share to me personally a fair share is something that should be proportionate to our ability to deliver on <unk> and Oran.

Hamid Akhavan: The way that it's envisioned has been beneficial too.

Hamid Akhavan: To the government.

Hamid Akhavan: For their purposes, so I'll leave it at that but I think we have a lot of prospects in that area.

Hamid Akhavan: But priority one right now this year is to get our.

Hamid Akhavan: Basic prepaid and postpaid business.

Hamid Akhavan: Significantly ramped up and brought on net.

Speaker Change: Makes sense.

Hamid Akhavan: I think in the financing World, obviously like you said, it's complicated and delicate.

Richard Hamilton Prentiss: I think in the financing world, obviously, like you said, it's complicated and delicate, but can you update us at least as far as how much unencumbered spectrum you have out there that we could consider that as a possible solution? And I think in past calls Charlie has mentioned that it's inevitable that a DISH TV and DIRECTV combination might occur at some point. Update us on kind of your view on that now that you're in the CEO role. What would it take to get to that inevitable? Is that something that could still be in the cards? And what would allow it to maybe proceed better?

Richard Hamilton Prentiss: Can you update us at least as far as how much unencumbered spectrum.

Richard Hamilton Prentiss: Have out there that we could consider that as a possible solution and I think in past calls.

Richard Hamilton Prentiss: Charlie has mentioned that it's inevitable that a dish TV Directv combination might occur at some point update us kind of your view on that now that you're in the seat.

Richard Hamilton Prentiss: CEO role what would it take to get to that inevitable is that something that's still in the cards.

Richard Hamilton Prentiss: Allowance, so maybe we're seeing better.

Hamid Akhavan: So it would be very difficult for me to go through the details of the spectrum ownership and covenants and other relationships here. I think there's some information in the public domain available for you guys to search through that.

Richard Hamilton Prentiss: So it would be too risky.

Hamid Akhavan: It would be very difficult for me to go through the details of the spectrum ownership in.

Hamid Akhavan: Covenants and other relationships here I think there is some information in the public available for you guys to search through that.

Hamid Akhavan: Some of it may be in our queue and some of it in other sources, but it suffices to say that we have a significant amount of spectrum. The vast majority of spectrum value in a business is not encumbered, so I think far more than the value of the obligations we have, and I will just leave it at that, you know, at this level. Otherwise, it would take too long for me to go through all this.

Hamid Akhavan: Some of it may be in our Q and some of it.

Hamid Akhavan: Sources, but.

Hamid Akhavan: Suffices to say that we have significant amount of spectrum. The vast majority of the spectrum you into business is not encumbered.

Hamid Akhavan: So I think the far more than the value of the obligations we have.

Hamid Akhavan: Just leave it at that.

Hamid Akhavan: This level otherwise it would be it would take too long for me to go through the <unk>.

Hamid Akhavan: Correct.

Richard Hamilton Prentiss: And then DirecTV, DishTV, inevitable. Is there something along the path that can show us how to get there? The question was, sorry, could you repeat that part of the question, Rick?

Hamid Akhavan: And then Directv dish TV inevitable or is there something on the path for our future growth.

Speaker Change: Question. The question was I'm, sorry could you repeat that part of the question Rick Sorry, Yes, Charlie just mentioned that dish TV and Directv as an inevitable combination at some point as you sit in the role now is that still something you could see as an inevitability and what would allow us to maybe become closer to fruition. If it's something that is of interest.

Hamid Akhavan: Yeah, Charlie has mentioned that DishTV and DirecTV would be an inevitable combination at some point. As you sit in the role now, is that still something you could see as an inevitability? And what would allow it to maybe become closer to fruition if it's something that is of interest?

Hamid Akhavan: You know, for any sort of transaction, obviously, it takes more than one party to speak, so I can't speak to how inevitable it is. I would say that, you know, obviously, there's significant synergy there when you look at the two businesses being in the same space, and both businesses are in a space where we are under attack by, you know, content providers and a number of other challenges.

Hamid Akhavan: Any sort of transaction, obviously it takes more than one party to speak so I can't speak.

Speaker Change: Inevitable is up.

Hamid Akhavan: I would say that.

Hamid Akhavan: You know obviously the significant synergy there when you look at the two businesses being in the same space and both businesses are in a space, where we are under attack by the.

Hamid Akhavan: The content providers and a number of other challenges I think that that opportunity certainly has always been there and is there. It's a matter of us getting to finding the right time and economics to look at it.

Hamid Akhavan: I think that that opportunity certainly has always been there and is there. It's a matter of us getting to, you know, finding the right time and economics to look at it. And right now, my focus, more than anything else, is to address the two significant challenges ahead of us. One is, as I mentioned, just immediate financing needs, and the second is getting our business operational to the point where, you know, post-financing challenges are overcome, and you have a business that is sustainable and is generating, you know, significant economic value. And those two priorities right now are taking, I would say, 99% of my time. At the right time, I'll look at other opportunities through the M&A lens. Great

Richard Hamilton Prentiss: Great. I appreciate the answers.

Hamid Akhavan: And right now my focus more than anything else is to address the two significant challenges ahead of US one is as I mentioned, just immediate financing needs and second is getting our business.

Richard Hamilton Prentiss: Operationally to the point, where.

Richard Hamilton Prentiss: Post financing challenges overcome having.

Richard Hamilton Prentiss: Having a business that is sustainable and is generating.

Richard Hamilton Prentiss: Significant economic value.

Richard Hamilton Prentiss: And those those two priorities right now are taking I would say, 99% of my time at the right time, we'll look at other opportunities through M&A lens.

Speaker Change: Alright, I appreciate the answers take care.

Richard Hamilton Prentiss: Okay.

David William Barden: Our next question is from the line of David Barden with Bank of America. Please proceed with your question.

Richard Hamilton Prentiss: Our next question is from the line of David Barden with Bank of America. Please proceed with your questions.

David William Barden: Hey guys, thanks so much for taking the questions. We appreciate it. Obviously, we get relatively few opportunities to engage with you guys about the business, so I want to ask some bigger picture questions. Hamid, you've got a $4 billion equity market cap, and you've got bonds in 2026, so they're maturing and trading at $0.60, and these two things seem incompatible. So can you, I mean, at a high level, walk us through the strategy where DISH doesn't or shouldn't file for bankruptcy?

David William Barden: Hey, guys. Thanks, so much for taking my questions I. Appreciate it obviously, we get relatively few opportunities to engage with you guys about the business. So I wanted to ask some bigger picture questions.

David William Barden: I mean, you've got a $4 billion equity market cap and you've got bonds in 2026 of their maturing trading at 60 cents on the dollar and these two things seem incompatible.

David William Barden: So can you I mean at a high level walk us through the strategy, where dish doesn't or shouldn't be.

David William Barden: While for bankruptcy.

David William Barden: and given where you are with the funding situation. You know, what are the facts and circumstances that present themselves that inform you that management's fiduciary obligation has shifted away from equity and towards the bondholders. Thank you.

David William Barden: And given where you are with the funding situation.

David William Barden: What are the facts and circumstances.

David William Barden: That presents themselves that informs you that managements.

David William Barden: Fiduciary obligation has shifted away from equity.

David William Barden: And towards the bondholders. Thank you.

David William Barden: So looking at the bigger picture as you mentioned.

Hamid Akhavan: So, looking at the bigger picture, as you mentioned, I look at the balance sheet of the business, and I see a significant asset value on the balance sheet relative to the liabilities. And to me, the art here and the science here is how can you take advantage of a strong balance sheet, not from a cash perspective, but certainly from an equity to debt to debt perspective, you know, value of assets to debt perspective, and turn that into liquidity to execute on the operation of the business. I mean, that's what the job at hand is at a very high level, you know.

Hamid Akhavan: I look at the balance sheet of the business.

Hamid Akhavan: Significant asset value on the balance sheet relative to the liabilities.

Hamid Akhavan: To me the the arts here in this in the science here is how can you take advantage of a strong.

Hamid Akhavan: <unk> balance sheet from a cash perspective, certainly from an equity to debt to debt perspective value of assets to debt perspective, and turn that into liquidity to execute on the operation of the business I mean, that's what I mean.

Hamid Akhavan: Very high level.

Hamid Akhavan: The job at hand, so in our conversations and discussions with capital sources.

Hamid Akhavan: So in our conversations and discussions with capital sources, you know, we try to make sure that in the, you know, short to mid-term horizon, at least, we have access to, you know, cash and capital to continue to develop our operating business. We're proud of our operating business. I think our operating business, the two business units that are more established, are generating cash, and they both have significant prospects. I mean, the huge business, as you mentioned, is a very promising business, and it's spearheading our enterprise business. We haven't talked about direct-to-satellite reception yet.

Hamid Akhavan: Trying to make sure that in the.

Hamid Akhavan: Short to midterm horizon at least we have access.

Hamid Akhavan: Access to cash and capital to continue to develop our operating business. We are proud of the operating business I think our operating business due to the two business units that are more established are generating cash and they both have significant prospects.

Hamid Akhavan: The Hughes business as you mentioned is it.

Hamid Akhavan: It's a very.

Hamid Akhavan: Promising business and is spearheading our enterprise business, we haven't talked about director satellite via one of the only companies on Earth that can unilaterally Act.

Hamid Akhavan: We are one of the only companies on earth that can unilaterally activate that business model. We have a spectrum right around the world matching the U.S., and we have prospects of developing that business that would be a very, very significant enhancement to our existing business globally in terms of valuation, in terms of operating business, and operating cash. So I guess our, you know, recipe is very simple, candidly.

Hamid Akhavan: Activate that business model, we have a spectrum rights around the world match in U S.

Hamid Akhavan: We have prospects of developing that business that would be a very very significant and.

Hamid Akhavan: Enhancement to our existing business globally.

Hamid Akhavan: In terms of valuation in terms of operating business up any cash.

Hamid Akhavan: So I guess, our recipes very simple candidly can we push the maturities out can we.

Hamid Akhavan: Can we push the maturities out? Can we, you know, get to the point where we have access to, you know, renew those maturities and push them out so that we have enough cash to operate the business? We're very bullish about our prospects for our operating business if we have the capital to execute. In the short term, I mean, while we're working on that financing, we're not sitting on our hands and, you know, letting those opportunities expire.

Hamid Akhavan: Get to the point, where we we have access to renew deals maturity and push them out so that we have enough cash to operate the business. We're very bullish about our prospects of our operating business. If we have the capital to execute in a short term.

Hamid Akhavan: While we're working on that financing, we we're not we're not sitting on our hands on letting those opportunities expire we continue to develop them.

Hamid Akhavan: We continue to develop them, you know, so hopefully, post the, you know, challenges with financing, we'll have a good business to go forward. You know, so that's the way I look at it. I mean, at the moment, my focus, I mean, I'm very bullish on, you know, what we do. So I'm not about to change my position on anything that, on any roadmap ahead of us. And I don't know how to answer any, you know, better your questions about my fiduciary.

Hamid Akhavan: So hopefully post close.

Hamid Akhavan: Close to challenges on financing, we will have a good business to go forward.

Hamid Akhavan: So thats the way I look at it I mean at the moment on my focus I mean, I'm very bullish on what we do so.

Hamid Akhavan: I'm not about to change my position on anything that.

Hamid Akhavan: On any roadmap ahead of us and I don't know how to answer.

Hamid Akhavan: Better your questions about my fiduciary, we are executing to the best of our ability in the best interest of all constituents that would be our shareholders or bondholders bondholders would certainly want to have a sustainable business to get there and to the point, where they can that they can maximize what they have today.

Hamid Akhavan: And we are executing to the best of our ability in the best interest of all stakeholders. You know, that would be our shareholders, our bondholders. I mean, the bondholders would certainly want to have a sustainable business to get there to the point where, you know, they can maximize what they have today. You know, we have a lot of customers and employees that are also I'm responsible for, and you know, we try, I do, this management team is doing the best they can to maximize the benefit for all stakeholders.

Hamid Akhavan: A lot of customers and employees that are also I'm responsible for and we try.

Hamid Akhavan: When this management team is doing the best they can to maximize the benefit for all constituents.

Hamid Akhavan: Okay.

Hamid Akhavan: Alright.

Hamid Akhavan: Okay.

David William Barden: Unknown Speaker 0 I do the, [inaudible] Unknown Speaker, which would be mobile and corporate. Where's the income from an outcome?

Hamid Akhavan: Okay, if I do that.

David William Barden: Matt.

David William Barden: Year pick the path to $4 billion.

David William Barden: Requests which would be.

David William Barden: Mobile.

David William Barden: Corporate.

David William Barden: They've been coming from and how quickly.

David William Barden: Hey, David, you're gonna have to restate that question there. It was all garbled. Obviously, you're not on our network.

Speaker Change: Hey, David Youre going to have to restate that question. There. It was all garbled, obviously youre not on our network.

Operator: Transcribed by https://otter.ai Okay, to call attention to the positive with respect to where it comes from and...

David William Barden: Yeah.

Operator: Okay.

Operator: Yes.

Operator: Hello.

Operator: With respect to.

Operator: Comes from them.

David William Barden: I think we need to go to the next question.

Speaker Change: We can hear you Bob Brian I think we need to go to the next quarter apologize we can't hear you that you have.

David William Barden: Audio is.

Operator: Our next question is coming from the line of Jonathan Chaplin with New Street Research. Please proceed with your question.

David William Barden: Our next question is from coming from the line of Jonathan Chaplin with New Street Research. Please proceed with your question.

Jonathan Chaplin: Thanks, guys. Hamid, last quarter on the call, you said you were hoping to sort of wrap up the negotiations with bondholders, and put new cash on the balance sheet in one fell swoop rather than doing things incrementally. And I think the goal was to sort of come out of the process with two to three years of liquidity runway to just focus on running the business. I'm wondering how the DBS bondholder lawsuit complicates that, if it does, and if the lawsuit, because it's attempting to unravel the transaction, makes it more difficult to raise capital against Spectrum either at EchoStar or at Dish Network Corp. And then separately, a question for maybe John, That'd be great.

Jonathan Chaplin: Thanks, guys.

Jonathan Chaplin: Last quarter on the call. You said you were hoping to sort of wrap up the negotiations with bondholders new cash on the balance sheet.

Jonathan Chaplin: 111 fell swoop, rather than doing things incrementally and I think the goal is to sort of come out of the process with two to three.

Jonathan Chaplin: Liquidity runway to just focus on running the business I am wondering how DBS bondholder more suite complicates that.

Jonathan Chaplin: If it does and it's the law suit because its attempting to unravel the transaction.

Jonathan Chaplin: Makes it more difficult to raise capital again spectrum, either echostar or dish network costs.

Jonathan Chaplin: And then separately a question for maybe John if you could give us a sense of how much of your traffic is now riding of your own network.

John: And what that might get to by the end of the year as you migrate subscribers over that'd be great. Thanks.

Hamid Akhavan: Great. I'll answer the first part before passing to John. Look, our goal is still clear. We really would like to create a runway of several years to, you know, fully develop our opportunities. I mean, most of the opportunities in front of us are not opportunities that can, you know, mature and get to full valuation in less than a year or two.

Jonathan Chaplin: Great.

Speaker Change: So the first part before passing to John.

Hamid Akhavan: Our goal is still clear, we really would like to create a runway of several years to fully develop our opportunities I mean, most of the opportunities in front of us are not opportunities that can mature and get to full valuation and invest in a year or two so we really need a longer runway and thats our object.

John W. Swieringa: So we really need a longer runway, and that's our objective. We hope to, you know, have a capital structure that affords us that time window and capital. Now, obviously, time will tell whether we achieve that objective or not, but that's what we hope to do, and we're actively working on it. As it comes to the lawsuit, it really doesn't change anything in our calculus and in our plans. You know, everything that we have done with respect to, you know, the movement of the assets or any other actions we have taken, you know, has been reviewed, and we are fully confident that we are compliant with every right we have.

John W. Swieringa: We hope to.

John W. Swieringa: Have a capital structure that affords us that time window and capital obviously time will tell whether we get the objective or not but that's that's what we hope to do and we're working on actively on.

John W. Swieringa: As it comes to the lawsuit.

John W. Swieringa: It really doesn't change anything in our calculus any of our plans.

John W. Swieringa: Everything that we had done everything we have done with respect to.

John W. Swieringa: Moving to other assets or any other actions we have taken.

John W. Swieringa: It has been reviewed and we are fully confident that we are complying with every right. We have and there is no.

John W. Swieringa: And there's no – that the lawsuit will not change the course for us or any of our prospects. I think one can expect that these kinds of lawsuits show up in any sort of transaction. At least to the people who have been close to our situation, this is probably not a surprise. So I will leave it at that. Again, in summary, it's a fact that these things happen, and we had kind of that in mind.

John W. Swieringa: The lawsuit.

John W. Swieringa: Are not change of course for us or any of our prospects I think one can expect that these kind of losses show up in any sort of transaction.

John W. Swieringa: In this.

John W. Swieringa: At least for the people who have been close to our situation. This is probably not a surprise.

John W. Swieringa: So I will leave it at that again in summary.

John W. Swieringa: It's the fact that if these things happen and.

John W. Swieringa: We had kind of had that in mind I will pass it to John for the second part of the question. Thanks, Amit and Hey, Jonathan I thought you might ask a question about this.

John W. Swieringa: I will pass that to John for the second part of the question. Thanks, Hamid. And hey, Jonathan, I thought you might ask a question about this. [inaudible] We're focused on loading the network, gaining owner's economics. In my prepared remarks, I commented that about half the devices that we're activating on the network are being activated by users.

John W. Swieringa: So.

John: We're focused on loading the network gaining owners' economics.

John W. Swieringa: Prepared remarks, I commented that about half the devices that we're activating on the network.

John: Are compatible.

John W. Swieringa: and then we need to cross that with the 200 million plus pops of Bonner coverage that we have to be able to get activations and upgrades on that. We're bending our business towards boosting distribution in M&O markets.

John: And then we need to cross that with the 200 million plus Pops of Bonder coverage that we have.

John: To be able to get Activations and upgrades on net.

Speaker Change: Pending our business towards boost distribution and.

John: Mmm markets, we expect that to ramp significantly certainly as more devices become available.

John W. Swieringa: We expect that to ramp significantly, certainly as more devices become available, and we really get moving with the optimization work that we need to do across some of the markets that we launched more recently, which include New York, New Jersey, Chicago, to name a few big ones. We're not going to provide a projection on traffic, but it's ramping significantly. It's doubling on us, doubling again, and we're sort of on our way, and we're bullish about getting the boost base moved over. Within the confines of our activation volumes, our upgrade volumes, foot traffic, and those sorts of things, I think Hamid mentioned that we're preparing for, [inaudible]

John W. Swieringa: And we really get moving with the optimization work that we need to do across some of the markets that we launched more recently, which includes New York, New Jersey, Chicago to name a few big ones.

John W. Swieringa: We're not going to provide a projection on.

John W. Swieringa: Traffic, but it's ramping significantly.

John W. Swieringa: Yes.

John W. Swieringa: Doubling on us doubling again, we're sort of on our way.

John W. Swieringa: We're bullish about getting the booz space moves up moved over.

John W. Swieringa: Within the confines of our activation volumes, our upgrade volumes foot traffic and those sorts of things I think you had mentioned that we're preparing for.

John W. Swieringa: Fresh activity in.

John W. Swieringa: In the second half of the year and we should expect to see more ramping them in terms of network, but we're again happy with what we're seeing from customers.

John W. Swieringa: Net if you told me that could be where I am today 180 days ago I would have taken it.

Speaker Change: And just one other follow up Jon the extra drive testing that you submitted to the SEC does that just submitting the filing basically and the process entirely or are you waiting for some kind of response from them.

John W. Swieringa: And just one other follow-up question, John, the active driving testing that you submitted to the FCC. Does submitting the filing basically end the process entirely? Or are you waiting for some kind of response from them?

Speaker Change: Our understanding is that the process is complete.

John W. Swieringa: Our understanding is that the process is complete. Got it.

John W. Swieringa: Got it. Awesome. Great. Thanks, guys. Our next question is from the line of John Hodick with UBS. Let's just see what your question is. Great, thank you. Maybe for Hamid, just a follow up on the commentary on boost subs in March.

Speaker Change: Got it awesome great. Thanks, guys.

John Christopher Hodulik: Our next question is from the line of John Hodick with UBS. But we'll just use your question.

John Christopher Hodulik: Our next question is from the line of John <unk> with.

John Christopher Hodulik: <unk> UBS. Please proceed with your questions.

John Christopher Hodulik: Great. Thank you maybe for me just.

John Christopher Hodulik: A follow up on the commentary on boost subs in March.

John Christopher Hodulik: And I guess, what's really driving it or are you seeing better gross adds churn coming down just any of the competitive dynamics youre seeing in the.

John Christopher Hodulik: Prepaid market and then do you expect these trends to continue as we as we scale up as we move through the year just sort of any commentary forward looking commentary you have on what.

John Christopher Hodulik: What net adds could could do over the next couple of quarters would be great. Thanks.

John Christopher Hodulik: Thanks. So I'll start; I'll answer it in reverse.

Speaker Change: So all the estrogen in reverse.

Hamid Akhavan: Yes, we do expect this trend to continue. We are we are The progress we saw in March, in my view, is not a one-time hit. We expect that business to continue to keep its edge and perform better. I think we made a number of changes early in the year, and even 4Quarter, which puts more emphasis on maintaining and developing the prepaid business, which was actually a pretty good business, has been a home base for us, but had been somewhat under-attended simply because there's been over-emphasis.

John Christopher Hodulik: Yes, we do expect this trend to continue we are.

Hamid Akhavan: We are.

Hamid Akhavan: The progress we saw in March.

Hamid Akhavan: And my view is not a one time hit we expect that business to continue to <unk>.

Hamid Akhavan: <unk> agents perform better.

Hamid Akhavan: I think the we made a number of changes early in the year.

Hamid Akhavan: Fourth quarter that puts it more.

Hamid Akhavan: Puts more emphasis on.

Hamid Akhavan: Maintaining and developing the prepaid business, which was actually a pretty good business has been a home base for us but had been somewhat under attended at the.

Hamid Akhavan: Simply because.

Hamid Akhavan: Theres been an overemphasis on the postpaid business at the expense of the prepaid business. So we kind of bring it back now both of them to par level.

Hamid Akhavan: Attention we.

Hamid Akhavan: We have been.

Hamid Akhavan: Increasing our.

Hamid Akhavan: Incentive to the to the dealers, we have been doing a better job of.

Hamid Akhavan: [inaudible] Incentive to the dealers. We have been doing a better job of targeting higher-value customers, not taking low-calorie customers, using credit checks better, doing ID checks better, doing a number of things that would basically improve our execution on the prepaid. And those things are lasting. Those are not one-time hits.

Hamid Akhavan: Targeting higher value customers.

Hamid Akhavan: Not taking low calorie customers.

Hamid Akhavan: Using.

Hamid Akhavan: Credit checks better doing it checks better doing doing a number of things.

Hamid Akhavan: That would basically improve our execution on the prepaid and those things are lasting those or not.

Hamid Akhavan: So yes, we are encouraged. The churn has come down to historically low levels, and ARPA is increasing. We expect to keep it in that, on our track. The postpaid business, I didn't mention much about it here, simply because our initial approach to the market was rushed, he came. It was one of those cases where the company had to spend a significant amount of attention and time developing the infrastructure. The coverage that was paramount as a minimum viable product and requirements for the spectrum That was primarily the focus of the business, and not as much focus had been given to the go-to market for the postpaid. The product did not meet all of our expectations in terms of feature sets and, you know, activations and support.

Hamid Akhavan: One time hits, so yes, we are encouraged.

Hamid Akhavan: The churn has come down historically, low and <unk> increasingly we expect to keep it in that.

Hamid Akhavan: The postpaid business.

Hamid Akhavan: <unk> mentioned much about it here simply because.

Hamid Akhavan: Initial approach to market was rushed.

Hamid Akhavan: It came.

Hamid Akhavan: It was one of those cases the company has spent.

Hamid Akhavan: Significant amount of attention and time developing the infrastructure.

Hamid Akhavan: The coverage that was that was paramount as a minimum viable product requirements for the spectrum.

Hamid Akhavan: That was primarily the focus of the business and not as much focus has been given to the go to market for the postpaid.

Hamid Akhavan: Did not meet all of our expectation in terms of feature sets and Activations and support.

Hamid Akhavan: We have been working on improving those things and including our offers. And we do expect to do a better job in the second half of the year with the postpaid. We have not, we definitely want to, we realize that that is a critical part of the business that we need to succeed in, and we intend to do that. But the right thing to do was to push that out a bit, get the basics right.

Hamid Akhavan: We have been working on improving those things and including our offers and we do expect to do a better job on our second half of the year with the postpaid and we have not.

Hamid Akhavan: Definitely we realize that that is that is a critical.

Hamid Akhavan: Part of the business that we need to succeeding and we intend to do that but the right thing to do was to push that out a bit get get the basics right. For instance, we don't have that global roaming that has that is that is a requirement for postpaid that we were not taking at the moment.

Hamid Akhavan: For instance, we did not have, you know, global roaming. That is a requirement for postpaid that we were not taking at that moment. This is all going to come back. We expect both businesses, both prepaid and postpaid, to do even better in the second half.

Hamid Akhavan: This is all going to come back.

Hamid Akhavan: We expect both business, both prepaid and postpaid.

Hamid Akhavan: To do even better second half of the year.

Amit: Got it thanks Amit.

Michael Ian Rollins: Thank you. The next questions are from the line of Michael Rollins with Citibank. Please just use your questions.

Hamid Akhavan: Thank you. The next question is from the line of Michael Rollins with Citibank. Please proceed with your question.

Michael Ian Rollins: Thanks.

Michael Ian Rollins: Good afternoon. Just a couple of things. First, just curious, going back to the subject of build, where is DISH on meeting the 2025 milestones? And is it expected to invest to meet those milestones? Or do you plan on asking for an extension to maybe give you more time for that, given some of the comments that you've made in the past? And secondly, with respect to cost cutting, can you share where you are on that billion of annualized savings that you're targeting? And are there incremental investments that also need to be considered that could offset some portion of those savings as we look at the expense trends over the course of the year?

Michael Ian Rollins: Good afternoon, just a couple of things first just.

Michael Ian Rollins: Just curious going back to the subjective build.

Michael Ian Rollins: Where is dish on meeting the 2025 milestones and the expectation to invest to meet those milestones or do you plan on asking for an extension to maybe give you more time for that given some of the comments that you've made in the past.

Michael Ian Rollins: And secondly, with respect to the cost cutting can you share where you are on that $1 billion of annualized savings that you're targeting.

Michael Ian Rollins: And are there incremental investments that also need to be considered that could offset some portion of those savings as we look at the expense trends over the course of this year.

Michael Ian Rollins: Greg two part questions.

Hamid Akhavan: Great, two-part question. As for the first part, you know... As John and I both mentioned, we are focused on meeting our 2025 FEC milestone, as well as the rest of our financing needs, which include the capital required to meet those milestones. Some are tied together, but we are certainly focused on those objectives for the build-out.

Hamid Akhavan: As for the first part.

Hamid Akhavan: As John and I. Both mentioned we are focused on meeting our 2025 FCC milestone is what are the risks in our financing needs, which includes the capital required to meet those milestones are somewhat tied together, but.

Hamid Akhavan: We are certainly.

Hamid Akhavan: <unk> focused on those objectives.

Hamid Akhavan: As it comes to the $1 billion, I'll pass that to Paul, who can comment further on it. Hey, Michael. This is Paul.

Hamid Akhavan: The build out.

Paul Gaske: As it comes to the $1 billion.

Hamid Akhavan: Pass that to Paul who can comment further on it hey, Thanks. Michael This is positive question here, so the $1 billion ramps throughout the year. So we'll exit the year at a run rate of $1 billion.

Paul W. Orban: That's a good question here. So the $1 billion ramps throughout the year, so we'll exit the year at a run rate of $1 billion. And to answer the question about whether there are any material investments that we need to make to achieve that, the answer is no.

Paul Gaske: And to answer the question about are there any material investments that we need to make to achieve that and the answer is yes.

Paul W. Orban: And are there also investments that you're going to make, whether it's in marketing and sales and other components of the expense base that will offset some of these billion-dollar savings over the course of the year?

Paul Gaske: And are there also investments you can make whether it's in marketing and sales and other components of the expense base that will offset some of these $1 billion savings over the course of the year.

Paul W. Orban: See, it's a very large list of optimizations. None of the optimizations fundamentally impact our ability to develop our business in the future and or deprive the prioritizes our strategic Growth opportunities. So there is nothing structural or fundamental.

Paul W. Orban: Steve.

Paul W. Orban: It's a very large list of optimization as none of the optimizations, none of the optimization fundamentally.

Paul W. Orban: Impact our ability to develop our business in the future.

Paul W. Orban: Or Detroit D prioritizes our strategic.

Paul W. Orban: We just had a number of synergies here and opportunities. Some of it had to do with marketing where we didn't need to spend, for instance, if we, I mean, I go to marketing because that's where you hit on first. If we were not on the post-paid side of the business, on retail wireless, for instance, we were not optimized in our marketing approach.

Paul W. Orban: Growth opportunities, so theres nothing structural or fundamental we just had a number of synergies here and opportunities. Some of it has to do with marketing, where we didn't need to spend for instance, if we go.

Paul W. Orban: Go to marketing because that's where you hit offers.

Paul W. Orban: If we are not on a postpaid side of the business on retail wireless for instance, we're not optimizing our marketing approach, we kind of scaled that back for time being until we get our.

Paul W. Orban: We kind of scaled that back for the time being till we got our offers and execution right. We were attracting customers to our sites, but we were not just able to convert them. That was just not an efficient way to spend marketing.

Paul W. Orban: <unk> offers an execution right, we were attracting customers to our sites, we would not just able to convert them.

Paul W. Orban: That was just not an efficient way to spend marketing, but theres a significant amount of efficiencies on moving customers from off net to on net debt.

Paul W. Orban: But there's a significant amount of efficiencies in moving customers from off-net to on-net that vastly reduces our cost in certain areas, paying to the partners. This is an acceleration of the plan for us that John has talked about. So I had a schedule trying to do that, accelerating some of those technical aspects. John talked about migration, and automatic migration over the year, something that others haven't done.

Paul W. Orban: Vastly reduces our cost in certain areas paying to the partners. This is an acceleration of the plan for us that John has talked about so we're ahead of schedule trying to do that accelerating some of those technical aspects John talked about migration automatic migration over the year something that others haven't done it and we are really.

Paul W. Orban: And we are really, by necessity here, we are really good at doing that. And the team has managed to develop that and accelerate that. We had no leakage and no loss trying to bring customers from off-net to on-net. That generates a significant amount of synergies. You can go across the business and find duplications between the marriage companies.

Paul W. Orban: As necessity here, we are really good at doing that.

Paul W. Orban: And the team has managed to develop that and accelerate that we had no leakage of no loss trying to bring customers on from off net to automate that generates significant amount of synergies.

Paul W. Orban: You can go across the business and duplications between the mirrors companies. We have taken advantage of that very quickly upfront early in the year. We immediately took advantage of that and by the way there is more to come I mean, Paul myself and the rest of the management and TV. We don't believe that $1 billion was the end of it we think there's significantly more opportunities without even.

Paul W. Orban: We have taken advantage of that very quickly up front. Early in the year, we immediately took advantage of it. And, by the way, there's more to come.

Paul W. Orban: I mean, myself and the rest of the management team, we don't believe that a billion dollars was the end of it. We think there are significantly more opportunities without even touching any of the other aspects of the business. The other thing we have done is, as we mentioned in the prepared remarks, we are focusing on higher-value customers. We are now a lot more diligent about looking at every customer segment that we acquire and shifting our attention to higher-value customers, as opposed to kind of spreading our acquisition to spread across all value chain customers.

Paul W. Orban: Touching any of the other aspects of the business jet anything we have done is if you noticed that we mentioned in our most of it in the prepared remarks, we are focusing on higher value customers. We are now a lot more diligent about looking at every customer segments that we acquire and <unk>.

Paul W. Orban: Shifting our attention to higher value customers as opposed to kind of spread across our acquisitions spread across all value chain customers. So, leaving some customers behind that we think there will be good.

Paul W. Orban: So leaving some customers behind, we think there will be good, you know, good from a perspective of, you know, ads, gross ad numbers, but not great from a perspective of return on capital. So we're putting that behind us and emphasizing higher-value customers. So I'm not, in some of the areas where we've talked about our subs being down, our customers being down, those are intentional. Not all of it, but certainly many of those are intentional.

Paul W. Orban: Good from our perspective, as gross add numbers, but not great from a restrictive or return on capital.

Paul W. Orban: So we are putting that behind them emphasizing higher value customers. So I'm not in some of the areas, where we've talked about.

Paul W. Orban: Subs are down our customers are down.

Paul W. Orban: Not all of it but certainly many of those are intentional, we're just leaving them behind.

Paul W. Orban: We're just leaving that behind in order to focus on higher-value customers, so improving our execution. The bottom line is that we believe we are on target to meet the $1 billion that we have budgeted. We are on budget for the first quarter in nearly all metrics of the business, and we expect to finish the year achieving all those savings. And we are not done looking at additional opportunities as we get to the second half of the year in order to be ready for the following year.

Paul W. Orban: In order to focus on higher value customers are improving our execution net net of it is that we are on we believe we are on target to meet that 1 billion that we had budgeted we are on budget for the first quarter.

Paul W. Orban: Nearly all metrics of the business.

Paul W. Orban: And we expect to finish the year, achieving all of those savings and we're not done looking at additional opportunities as we get to the second half of the year in order to be ready for the following year.

Speaker Change: Thank you.

Walter Paul Piecyk: Our next question is from the line of Walter Piecyk with LightShed. Please proceed with your question. Unknown Speaker

Paul W. Orban: Our next question is from the line of Walter <unk> with Lakehead. Please proceed with your question.

Walter Paul Piecyk: Yes.

Walter Paul Piecyk: Thanks. I just want to go back to Michael's question and the first one, at least, and see if you can unpack it a little bit more with regard to the third deadline. Can you make some sense in terms of the individual licenses, like percentage of pops or megahertz per pop, that you've hit those deadlines? And I guess, more importantly, probably something the bondholders should consider. At what point is it too late in terms of getting the financing required? [inaudible] You know, these licenses that we have across the spectrum for this for this third deadline.

Walter Paul Piecyk: Thanks, I just wanted to go back to Michael's question.

Walter Paul Piecyk: First one of the ladies and see if you can unpack it a little bit more with regard to the third deadline.

Walter Paul Piecyk: Can you give some sense in terms of.

Walter Paul Piecyk: The individual licenses like percentage of Pops or megahertz pop.

Walter Paul Piecyk: You've hit those deadlines.

Walter Paul Piecyk: And I guess more importantly.

Walter Paul Piecyk:

Walter Paul Piecyk: It's something the bondholder should consider at what point.

Walter Paul Piecyk: Is it too late in terms of getting the financing required.

Walter Paul Piecyk: To fulfill the deadlines for all of those licenses.

Walter Paul Piecyk: In terms of the financing or refinancing the stuff that's coming due in November is there is there kind of a date on the counter where it's like look you waited. This long now even if we spend a ton of money without any relief from the FCC.

Walter Paul Piecyk: Can't hit it on X percent of.

Walter Paul Piecyk: These licenses that we have across the spectrum for this for this third deadline.

John W. Swieringa: Hey Walt, this is John. I'll take the first part of that and then see if Hamid has anything he wants to add.

Walter Paul Piecyk: Hey, Walt this is John I'll take the first part of that and then see if the need is there anything he wants to add.

John W. Swieringa: As you know, we've been in an... Accelerated Deployment Mode for years now. We know how to acquire sites, we know how to do careful planning, we know how to get teams activated and moving in the field to get coverage layers up quickly. As it relates to the 600 megahertz, we've been in planning mode. As you know, it's a different kind of build, right?

John: As you know we've been in.

John W. Swieringa: Accelerated deployment mode for years now we know how to acquire sites, we know how to do careful planning.

John W. Swieringa: We know how to get teams activated and moving in the field to.

John W. Swieringa: To get coverage layer up quickly.

John W. Swieringa: As it relates to the 600 megahertz, we've been in planning mode. As you know, it's a different kind of built right you need to capture the flag in every single license area.

John W. Swieringa: You need to capture the flag in every single license area versus the coverage based on the general population. But we've got the sites identified, we've got backups, and we know where the team is. I am keeping my eyes on a few markets up in the north where it gets cold, but generally, we've got the time we need to execute on the 600 MHz for 25 and also the unpaired band 70 uplink, which is a little bit after that.

John W. Swieringa: Versus.

John W. Swieringa: Coverage.

John W. Swieringa: Based on general population.

John W. Swieringa: We've got the sites identified we've got backups, we're the team is.

Speaker Change: Ready to roll on us.

John W. Swieringa: I am keeping my eyes on a few markets up in the north where it gets cold, but I mean generally that we've got the time, we need to execute on the 600 megahertz for 25 and also the unpaired van 70, ethylene, which is a little bit after that.

Hamid Akhavan: I'll add a bit more color to John's response. Obviously, financing has to happen, it cannot be, we don't have an infinite amount of time to get the financing lined up to meet the obligations, so they are related. At the moment, we can meet the obligations, certainly focused on it. Obviously, the financing has to come at the right time. We have that in mind in our discussions with the bondholders, and sources of capital.

Speaker Change: I'll add a bit more color to johns.

Hamid Akhavan: Bonds.

Hamid Akhavan: Obviously financing has to happen.

Hamid Akhavan: It cannot be we don't have.

Hamid Akhavan: The amount of time to get the financing lined up to meet the obligations. So there are related.

Hamid Akhavan: At the moment, we have we can meet the obligations certainly focused on it obviously the financing has to come at the right time, we have that in mind us in our discussions with the bondholders and.

Hamid Akhavan: Cost of capital.

Hamid Akhavan: <unk>.

Hamid Akhavan: I can't comment any further on that. Generally, we don't comment on our obligations publicly, but the issues are all interrelated, you know; we are focused on building, making the build, and meeting our obligations, again, conditioned on, as you mentioned, financing coming at the right time. There is no specific date that I can offer you, but that is something that we certainly have in mind as we progress.

Speaker Change: I can't comment any further on that.

Hamid Akhavan: Generally we don't comment on our obligations publicly but.

Hamid Akhavan: The issues are all interrelated, we are focused on building, making the build in meeting our obligations again conditioned on as you mentioned financing coming at the right time. There is no specific date that I can offer you, but that is something that we certainly have in mind as we progress.

Hamid Akhavan: I mean, do you think the bondholders fully appreciate... the risk to them as a result, did they have a date in mind where they understood the risk to them in terms of underlying asset value?

Hamid Akhavan: I mean do you think the bondholders fully appreciate.

Hamid Akhavan: The risk to them as a result, do they have a date in mind, where they they understand the risk to them in terms of underlying asset value.

Hamid Akhavan: I mean, that's a good question for the bondholders. I certainly will not be able to answer on their behalf, but I think you're raising a good question. I think it's a good question, but it's certainly not for me. It's certainly for the bondholders to respond.

Hamid Akhavan: I mean, that's a good question for our bondholders.

Hamid Akhavan: I, certainly will not be able to answer on their behalf.

Hamid Akhavan: But I think you're raising a good question.

Hamid Akhavan: I think it's a good question, but it's certainly not for me, it's certainly for the bondholders to respond.

Walter Paul Piecyk: and just just an operational Hamid on the wireless side. I mean, what do you think it takes to get consumers to recognize the value proposition? Is there anything? I mean, obviously, Amazon, when they first launched, it kind of, you know, it kind of came and went. Not, I would say, the perfect launch, I guess, but is there an opportunity to exploit that distribution channel going forward to try and get some better recognition of the product and get some actual sales onto the network, more material sales on the network?

Hamid Akhavan: And just the operational on the on the wireless side I mean, what do you what do you think it takes to.

Walter Paul Piecyk: To get consumers to recognize the value proposition is there anything.

Walter Paul Piecyk: Knew that I mean, obviously, you're Amazon when they first launched a kind of kind of came and went and not I would say the perfect launch I guess, but is there an opportunity to exploit that distribution channel going forward to try and get some better recognition of the product and get some actual sales onto the network more material sales on the network.

Hamid Akhavan: Right, so look, I have been part of the mobile business for all of my life and every generation of it. I've been front and center.

Hamid Akhavan: So look I have been part of the mobile business for all of my life in every generation of it.

Speaker Change: Front and center.

Hamid Akhavan: And I can say that.

Speaker Change: We are realistic about what it takes to win in a saturated market.

Hamid Akhavan: And I can say that we are realistic about what it takes to win in a saturated market, but there are also incredible advantages to having an unutilized national network. A couple of times, I've told people that nothing is more dangerous in the mobile business than having an unutilized network. Um, I think there are many ways we can approach this market. We've already paid to develop this network, and you can imagine that I have the operating expenses and capital expenses already. [inaudible] Can we sharpen our go-to-market strategy in a way that others can't? We have some ideas, and hopefully, we can execute on them. I would not say one should read too much into our initial entry.

Hamid Akhavan: But there's also incredible advantages to having a.

Hamid Akhavan: Unutilized National network.

Hamid Akhavan: A couple of times I've told people is nothing is more dangerous than mobile business that having the Unutilized network.

Hamid Akhavan: I think there's many ways. We can approach this market we have already paid to develop this network and.

Hamid Akhavan: You can imagine that I have the operating expenses and capital expenses already incurred or incur and so.

Hamid Akhavan: Can we sharpen our go to market in a way that others can't or we have some ideas and hopefully we can execute on them.

Hamid Akhavan: I would not say one should read too much on our initial entry we are still very excited incredibly excited about Amazon as a channel.

Hamid Akhavan: We are still very excited, incredibly excited about Amazon as a channel, other channels that are exciting, other developments that are happening. The right thing to do is, for us, the right thing to do was... re-evaluating where we are and how we approach it. I don't want to have an approach to the market that is either unprofitable or unsuccessful, but we believe we have a lot of arrows in our quiver to use. We have not yet pulled out.

Hamid Akhavan: Other channels that are exciting development that is happening.

Hamid Akhavan: It's the right thing to do is for US the right thing to do was.

Hamid Akhavan: Reevaluating, where we are and how we approach it I don't want to have a.

Hamid Akhavan: Approach to market that is either unprofitable or unsuccessful, but.

Hamid Akhavan: We believe we have a lot of arrows in our quiver to to use we have not yet.

Hamid Akhavan: I pulled out so time will tell.

Hamid Akhavan: So time will tell, you know, our approach to the postpaid market will start back half of this year. It will be continuing work like everybody else, you know, in perpetuity. That's going to be, you know, hand-to-hand combat in the market.

Hamid Akhavan: Our approach to a postpaid market.

Hamid Akhavan: We'll start back half of this year it will be continuing work like everybody else in perpetuity, that's going to be.

Hamid Akhavan: Hand to hand combat in the market, but we think we have enough tools to compete the other thing you have to look at it U S market is the richest market in the world for mobile communication and we are just about to enter age of AI, where everybody thinks that.

Hamid Akhavan: But we think we have enough tools to compete. The other thing you have to look at is that the U.S. market is the richest market in the world for mobile communication. And we are just about to enter the age of AI where everybody thinks that, you know, connectivity and data is going to go to the next level that nobody has ever seen. So we feel we are prepared with the infrastructure that is underutilized, incredibly agile, and ready for AI.

Hamid Akhavan: Connectivity and data is going to go to the next level that nobody has ever seen so we feel we are prepared with the infrastructure that is underutilized incredibly agile ready for AI there are.

Hamid Akhavan: There are, you know, enterprises and partners that are talking to us every day about their vision of where they can take us, where they can go with us, and we are, we are excited about it. The other thing about it is that, ever since I started working for the Bell System, I knew one thing: for no other reason than just having choice, 20% of every telecommunications carrier will change their supplier if they're given another choice.

Hamid Akhavan: Enterprises and partners that are talking to us every day about the vision of where they can take where they can go with us.

Hamid Akhavan: And we're we're excited about it the other thing about it is that.

Hamid Akhavan: Even for a.

Hamid Akhavan: Zonian telecommunications ever since I started working for the Bell system, a new one thing for no. Other reason than just having choice 20% of every.

Hamid Akhavan: Every telecommunication carrier who changed their supplier if the human and another choice.

Hamid Akhavan: It's, and we are not looking for a dominant market share. Our profitability and sustainability will be incredibly good, even with a, you know, a modest share of the market as a fourth player, in spite of our significant advantages in terms of infrastructure and technology that nobody else has. Long answer to a short question: what we are excited about where we are, we just need time and capital. I mean, the roadmap for success is clear, that we just need a timeline and the capital to execute on it. So with that, operator, I think we'll take one more question.

Hamid Akhavan: And we are not looking for a dominant market share or profitability and sustainability will be incredibly good even with a.

Hamid Akhavan: A modest share of the market as a fourth player in spite of our significant advantages in terms of infrastructure and technology that nobody else has today long answer to a short question, but we are excited about where we are we just need time and capital I mean, it's not.

Hamid Akhavan: The roadmap for success is clear.

Hamid Akhavan: You just need a timeline of the capital to execute on it so with that operator, I think we'll take one more question.

Operator: Thank you. Yes, that question is coming from the line of Sebastiano Petty with J.P. Morgan.

Hamid Akhavan: Thank you. Your first question is coming from the line of Sebastiano Petti with Jpmorgan.

Sebastiano Carmine Petti: Hi, Thank you for taking the question just a couple of quick follow ups I mean to Jon's question earlier about the trajectory of net additions I mean, you just did on the wireless side you did just talk about improvements in the back half as you get through whatever potential headwind ACP may pose not pose.

Sebastiano Carmine Petti: Hi, thank you for taking the question. Just a couple quick follow-ups.

Sebastiano Carmine Petti: I mean, to John's question earlier about the trajectory of NetEditions, I mean, Hamid, you just talked about the wireless side, you just talked about improvements in the back half. As you get through whatever potential headwind ACP may pose or not pose, can we get to positive growth as we kind of exit the year? Or is that the goal we should be anticipating as we get to the other side, you know, maybe into 2025 as your efforts continue to ramp up?

Sebastiano Carmine Petti: Can we get some positive growth as we kind of exit the year or is that the goal we should be anticipating as we get to the other side maybe into 2025 as your efforts continue to ramp and then Relatedly again also following up on an earlier question on the cost savings side can you help us a little bit with the geography of that $1 billion of cost savings is worth.

Hamid Akhavan: And then, relatedly, again, also following up on an earlier question on the cost saving side, can you help us a little bit with the geography of that $1 billion of cost savings as we think about the business units? Obviously, pay TV has subscriber declines, and there's, you know, some variable costs associated with that. But And when you think about the retail side, but on the retail wireless side, you're probably making some investments to, you know, focus on these improved or higher-value subscribers.

Hamid Akhavan: Thinking about the business units, obviously pay TV subscriber declines and there is some variable costs associated with that but.

Hamid Akhavan: And you're thinking about the retail side, but on the retail wireless side.

Hamid Akhavan: And making some investments too.

Hamid Akhavan: Our focus on these improved or higher value subscribers, probably marketing cost cost of service that is probably also a cost of service as you load the network.

Hamid Akhavan: <unk> expense or scale the network. So help us think about maybe geography wise across your business units, where should we be thinking about these $1 billion of savings.

Hamid Akhavan: And there's probably marketing costs, cost of service there. There's probably also cost of service as you load the network to an extent or scale the network. So help us think about, maybe geography-wise across your business units, where should we be thinking about these $1 billion of savings, you know, kind of appearing or hitting the bottom line. Thank you.

Hamid Akhavan: The PRA are hitting the bottom line. Thank you.

Paul W. Orban: I'll take the easy part of the question, and I'll pass the difficult part to Paul. Yes, we do expect and plan on having positive growth, net positive growth, in the retail wireless business this year. You know, that in our view, the business will have turned around by the end of the year, and we are already seeing the first installment of that in March coming out of the first quarter.

Speaker Change: I'll take the easy part of the question and I'll pass the difficult part to Paul.

Paul W. Orban: Yes, we do expect.

Paul W. Orban: The plan on having a positive growth net positive growth on the retail wireless business for this year.

Paul W. Orban: So.

Paul W. Orban: You know that this is our view.

Paul W. Orban: The business will have turned around by end of the year and we are already seeing it.

Paul W. Orban: First installment of that in March coming out of the first quarter.

Paul W. Orban: The churn is low and is lowest it's been since the business was acquired.

Paul W. Orban: The churn is low and is as low as it's been since the business was acquired. The actions we have taken to reduce churn were not one-time lucky actions, and there was no market support to suggest that that churn was accidental. So that is our target and goal to get to growth this year. And we see it at the moment, as we sit here today, that that is clearly visible. Now, I'll pass the second part to Paul.

Paul Gaske: The actions, we have taken to reduce churn we're not the onetime lucky actions and there was no market support to <unk>.

Paul Gaske: Suggested that churn was accidental.

Paul Gaske: So that will that will be that is our target and goal to get to a growth this year and we see it.

Paul Gaske: At the moment, where we sit here today that is clearly visible to us.

Paul W. Orban: Now I'll pass the second part to Paul.

Paul W. Orban: So, thanks for the question. That's a good question. I want to be clear, though, that the $1 billion does not include any cost reduction related to variable costs or a decline in the subscriber base. It's totally excluded. We will obviously see that in the first... From a standpoint of where it hits, it's across all segments, all of our areas are tightening their belts, and we're using cost-cutting measures across the board, and it happens in all lines in the P&L, so whether it's cost of sales, cost of goods, or G&A. Thank you.

Paul Gaske: So thanks for the question. That's a good question I want to be clear, though that the 1 billion does not include any cost reduction related to variable costs a decline in the subscriber base is totally excluded from that we'll obviously see that in various segments.

Paul W. Orban: From a standpoint of where it hit its across all segments. All of our areas are tightening their belts and were using cost cutting measures across the board and it happens at all captions in the P&L, so whether it's cost of sales cost of goods our G&A.

Paul W. Orban: Again I think.

Paul W. Orban: Q1 numbers and you should continue to see that going forward.

Hamid Akhavan: And I want to mention that we have the least cut from the where we face the market, and we have not endangered any strategic objectives or strategic opportunities that we have. I'm heavily focused on making sure that we position the business for long-term growth. We have a number of excellent long-term opportunities right now in our shop that we are nurturing and developing, and these cost optimizations are not coming at the expense of the future of the business. I can attest to that.

Paul W. Orban: And I'm going to mention that we have the least cut from the where.

Hamid Akhavan: We face the market and we have not endangered any strategic objectives are of strategic opportunities that we have heavily focused on making sure that we position the business for long term growth. We have a number of excellent long term opportunities right now in our <unk>.

Hamid Akhavan: Sure that we are nurturing and developing.

Hamid Akhavan: These cost optimizations are not coming at the expense of the future of the business.

Hamid Akhavan: I can attest to that.

Hamid Akhavan: Okay, thank you. Thank you all for your interest. We look forward to updating you.

Speaker Change: Okay. Thank you. Thank you all for your interest and we look forward to updating you again next quarter. Thank you everyone.

Operator: We look forward to updating you again next quarter. Thank you. This will conclude today's conference. We will disconnect your lines at this time, and we thank you for your participation.

Operator: Yes.

Speaker Change: Thank you. This will conclude today's conference you may disconnect. Your lines at this time and we thank you for your participation.