Q4 2024 Anterix Inc Earnings Call
Good morning, everyone and welcome to city and Terex fiscal 'twenty 'twenty, four fourth quarter Investor update call.
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At this time I'd like to turn the floor over to Todd Becker really.
Vice President Investor Relations and corporate communications.
Please go ahead.
Thank you operator, and Hello, everyone I'm, Natasha Vecchiarelli, Vice President of Investor Relations and corporate Communications and I Welcome you to our fourth quarter fiscal year 'twenty for Investor update call.
Joining us today are Rob Schwartz, President and CEO, Ryan Gerbrandt C. L L. Kim Gray CFO and Chris gotten the Kid, Chief regulatory and Communications Officer.
Before turning the call over to Rob I'd like to remind you that during this conference call. We may make forward looking statements regarding future events, such as our commercial outlook and guidance.
Statements are based on current expectations and assumptions and are subject to risks and uncertainties investors are cautioned not to place undue reliance on forward looking statements.
We encourage you to review the company's SEC filings, including without limitation, the company's Form 10-K, and 10-Q, which identify specific risk factors that may cause actual results or events to differ materially from those described in these forward looking statements.
These files can be accessed on our website.
Additionally, we do not assume any obligation to update any forward looking statements with that I'll turn the call over to Rob.
Thank you Joshua and good morning, everyone and thank you for joining us.
We are excited to speak with you all today on the heels of grid announcement and the completion of our fiscal year.
As I'm sure. Many of you have seen yesterday afternoon, we announced a $102 $5 million spectrum with Oncor electric delivery company.
As excited as we already shared the details of this new transaction I'm equally excited to share what it represents for HRS is growing and foundational role in helping with your central monetization of our nation's electric grid and importantly, what it represents for <unk> shareholders.
Of course, joining six other utilities 15 states deploying 900 megahertz private wireless broadband networks.
This not only highlights growing industry support for the <unk>.
Benefits of this technology for utilities and the communities they serve but it also validates our expanding role as a trusted partner for the broader energy ecosystem.
The 900 megahertz private LTE solution is being woven into the foundational fabric of our nation's electric grid.
We set out to do more than just a spectrum company.
We previously shared our vision to help solve the critical challenges at the utility sector by harnessing the power of wireless broadband we are now executing on that vision with our current and future utility customers. The executive leadership of our utility strategic Advisory Board innovative technology companies, who are active ecosystem and the ongoing collaborative.
Work with the Department of Energy National Labs, we are collectively driving a foundation of evolution of our nation's grid.
And this industry wide evolution could not have come at a more important time.
The electric industry is facing considerable challenges, including unprecedented growing electricity demand cyber security events extreme weather conditions decarbonization requirements and the need to connect and control new sources of energy.
So what the industry is now realizing more broadly.
Is that a modernized grid requires modernize communications traditional resilient and secure wireless broadband communications.
Just last week at the annual conference of the Edison Electric Institute.
She representing all U S industrial and flex.
It is visible from the keynote speech by Nvidia CEO panels and private sessions. If there is a growing recognition that broadband communications is a foundational component to addressing critical issues.
These include managing the demand growth from data centers, and industrial electrification utilizing AI to bring necessary network efficiencies deploying cyber and physical security protections mitigating wildfires and harnessing edge processing power available companies like Nvidia for next generation metering and other smart distributions.
Systems.
Connectivity will be at the heart of these timing of initiatives and the criticality of private wireless broadband networks.
It's being understood today.
Our agreement with Oncor underscores that further.
This news is exciting for Texas as well.
Encore now joins with their other utility partners excel and LCR rate, bringing the power of 900 megahertz private wireless broadband to almost 80% of the counties in the state.
Why is this important because Texas has seen growth of population enterprise and resulting electric load growth across the state.
We see an opportunity to provide all the utilities across the state with the advanced communication tools, they need to support their growing requirements.
And for tariffs and our shareholders. This is a big day in our ongoing effort to grow in Turks and to help transform utility communications.
And while it may take longer than we all would like we've been told repeatedly by industry insiders that we built to position and it's critical and valuable sector, probably faster than almost any company in recent history.
We've delivered significant milestones over just the past four years since our FCC rulemaking building a market for spectrum, creating an ecosystem of solutions working with policymakers at all levels of government with Troy your entire pipeline of opportunities forging long standing relationships with 7 million Youtube.
<unk> in 15 states, including finalizing our first nine figure deal and now creating opportunities for additional products and services beyond spectrum.
While we are playing and the opportunities we see within the sector are expanding but I'm more excited than ever to continue to fortis path and the opportunities that lie ahead.
And with that I'll pass it over to Ryan in return for some concluding remarks.
Thanks, Rob and Hello, everyone.
As Rob shared today marks another monumental dad and terex with the recent signing of our largest agreements to date with encore for 900 megahertz broadband licenses in our service territory in Texas.
Headquartered in Dallas Oncor operates the largest transmission and distribution system in Texas operating more than 143000 circuit miles of transmission and distribution lines.
It delivers electricity to more than 4 million homes and businesses across the distribution service territory that has an estimated population of 13 million people.
The new licenses will enable encore to move to next generation broadband and provide mission critical data and voice services within Oncor service territory. The network is expected to provide a host of capabilities that will benefit oncor and their customers, including enhanced data transmission overall communication operational intelligence and resilience.
Under the sales agreement on Terex will assign six megahertz broadband spectrum to encore and 95, Texas counties. Following FCC issuance of the broadband license to on Terex.
With that we will have addressed another FCC deemed complex system.
The Encore agreement includes total payments of $102 $5 million with 44 million expected within the first 12 months after signing and the balanced by fiscal year end 2026.
I'd like to spend the rest of my time with you today discussing our enteric evolution over the past year.
We've never seen ourselves is simply another vendor to this unique industry. Our goal has and continues to be a trusted long term partner to our customers are active ecosystem members and to the entire industry.
As Rob highlighted in this last year with all our stakeholders, including the National Labs, we have collectively work to lay the foundation for an evolved electric grid, one that will support all the necessary operational benefits as well as the timely integration of distributed energy and the use of artificial intelligence, all while being more cyber secured resilient.
We saw this as a long term partnership approach on full display at this year's distribute checks were over 17000 utility industry participants gathered to demonstrate and share thought leadership on the technologies and solutions that will propel our industry forward.
Indian Terex booths alone, we had 40 of our ecosystem members showcasing how their solutions built on 900 megahertz private wireless are advancing resilience cyber and physical security clean energy mobile workforce grid edge applications advanced metering and much more.
These are just a sampling of the defining use cases shaping the market for utility private broadband wireless. We are an addition, working directly with our existing and prospective customers to explore innovative ways to meet these and future new opportunities collectively.
Under the leadership of our senior Vice President of product innovation with <unk>, we continue to collaborate with inherits active ecosystem members to pursue the discovery and development of pioneering outcomes driven products and solutions that hardest utility own 900 megahertz, we are actively evaluating opportunities within the <unk>.
And solutions space as we believe in Terex can produce complementary value across the industry for utilities ecosystem members and our shareholders.
Two examples of product leadership were also on display at distribute tech first what the suite of newly integrated end user modems and gateways leveraging the new multi band module from our ecosystem members seek wants communications developed with <unk> and our collaborators for our asked USA GE ever Nova in Red.
Which provides L. T connectivity at 900 megahertz N C P rest for grid devices.
We also showcased catalysts and terex as first commercial platform solution, providing connectivity and some management that helps utilities realize the benefits of private broadband networks.
The utility broadband future is now and a terex is at the heart of it we look forward to sharing more on these activities and opportunity soon.
And now more broadly as we had announced previously FRE the world's preeminent U utility research and development organization launched a seminal white paper, which in Texas utility strategic Advisory Board with Aster contribute insights. The paper provides important perspectives and lessons learned to date on advancing resilience.
Clean energy via modern communications technologies, recognizing quote that it is crucial to acknowledged that tomorrow's grid is no longer an aspiration. It is an expectation and that is secure utility telecommunications network plays a strategic role in achieving these goals and quote.
I encourage you to read this industry paper, which is available on our website.
Additionally, at Terex was invited to participate in two initiatives that are part of the nationwide strategic push toward enhancing cyber security and resiliency of the grid for the utility industry.
These two projects are led by the U S Department of Energy's National Laboratories, and effort, where I chair acts and other industry partners will help develop tools and technologies to reduce cyber risks to our nation's energy infrastructure.
We are honored to have been selected alongside a number of industry leaders to aid in these important projects and believe that our inclusion in these initiatives is yet another proof point of our leadership in the industry.
You can find more details on these opportunities and our press releases issued in March and April and are also available on our website.
Individually each of these occurrences demonstrates the position that Antero has earned within the utility sector combined they illustrate what our entire team is working to achieve.
The creation of long term value for our customers, our citizens and our shareholders.
Before I hand, it over to Chris to share another ecosystem wide effort I wanted to give you a quick update on our demonstrated intense or D. I scorecard.
As a reminder, our D. I scorecard includes tracking 'twenty measurable indicators for each prospective customer in our pipeline.
Scoring each indicator based on our assessment of its relative importance and then calculating a combined demonstrated intact or D. I score for each of these prospective customers as we track and score these individual indicators with weighted scores. It is the sum of the analysis. So let us know whether the D. I threshold has been crossed and in turn inform.
Our competence level that a utility is demonstrating its intent to proceed with deploying 900 megahertz spectrum.
This intensive tangible at times publicly visible and is measurable however, crossing the threshold does not mean that the contract is eminent only that we've seen significant signs of customer intact.
We've seen one new utility prospect cross the D I thresholds as well as the conversion of oncor to a customer who crossed the threshold of demonstrating the highest intent earlier. This year. Therefore, maintaining the last reported total of 18 utilities in that highest category of D I, representing approximately $1 billion in potential.
Contracted proceeds.
Notably as our D. I info graphic shows since our last update in February we've seen continued measureable progress across a number of our accounts both from those that fall above and below our highest level of demonstrated intent threshold.
With that I'll turn it over to Chris.
Thank you Ryan and good morning, everyone I'm going to continue the theme of and Terex embracing collaboration working within and across the entire utility ecosystem on a project that could have widespread benefits earlier in the fourth quarter in conjunction with a broad group of utilities and trade associations include.
Amarin, the enterprise wireless alliance ever G Lower Colorado River Authority, Portland General Electric San Diego gas and electric Southern communication services, the utility broadband Alliance and Excel energy, we collectively petition the FCC to modify the 900 megahertz rules to prevent.
<unk> the flexibility to grow the broadband segment from three by three to five by five megahertz using a voluntary mechanism.
Some of you may recall this is an option the FCC considered and it sort of in its original 900 megahertz rulemaking, but would you deem premature in 2020.
As our customers look ahead to the future of utility private broadband many of them are are attracted by having the optionality of more broadband spectrum as they explore and consider future deployment of additional use cases as well as potentially using the network to serve other entities within their footprint.
More than 30 utilities trade associations and technology companies filed comments in support of the multiparty five by five petition this.
This includes utilities directly serving nearly 30 million electricity customers trade associations, whose members served more than 80% of all U S electricity customers and technology leaders, who are driving innovation and creating jobs across our nation at.
That's one organization wrote the opportunity for a five by five megahertz broadband system will further advance and facilitate the integration of distributed energy resources enhanced physical grid reliability and security and enhanced real time system monitoring.
The support throughout the record further echos and validates the message that antero that in Terex has been sharing with utilities regulators and investors over the last several years that the 900 megahertz private wireless broadband Revolution will address the most critical communications needs of utilities and advance the evolution of.
Our nation's grid.
While we cannot provide any guarantee that the FCC will adopt this proposal we are truly encouraged by the broad support across the entire ecosystem that is in the FCC's record.
We anticipate that this petition will be a multiyear process, which is commensurate with the value. It represents to the utility sector to our ecosystem members and two anthrax.
I'll now turn it over to Tim.
Thanks, Chris and Ericsson's financial record and the now concluded 2020 for fiscal year is one we are proud of.
We detailed these results in our 10-K, which was recently filed and is available on our website.
But I'll spend a few moments reviewing some of the key highlights that contributed to our success.
We signed two new commercial contracts representing over $64 million in contract proceeds.
We also received over $106 million in cash associated with signed customer contracts.
We announced a robust share repurchase program to buyback up to $250 million of our stock.
And through our buyback programs, we returned over $24 million to our shareholders in fiscal 'twenty four.
And finally, we continue to receive fair market value for our spectrum transactions, including the recently announced $102 5 million dollar Oncor transaction, which represented roughly $9 3 million Pops across 95 counties.
As a result of these transactions before buybacks, we delivered approximately $50 million of positive free cash flow for the full fiscal year.
This helps to reinforce our strong financial position as we ended our fiscal year with more than $60 million in cash and no debt on our balance sheet.
As I've consistently said over the past few years.
<unk> is a cash flow story.
And the deal, we just announced reinforces that point.
With the cash on our balance sheet and roughly $186 million in contracted payments to be received over the next several years. We're clearly in a solid position to continue to return value to our shareholders.
With industry forces driving the need for better and more robust communications systems.
Terex is well positioned to continue delivering 900 megahertz private broadband solutions.
With that I'll turn it over to Rob.
Thanks, Tim before we conclude I want to express my gratitude to our incredible <unk> team for their tenacity creativity and camaraderie.
Our team's commitment and hard work has proven once again they are our most valuable asset.
Thanks to their efforts we have successfully completed this significant milestone transaction.
To close I want to highlight how confident I am position, both financially and strategically with vis oncor announcement, we now have about $186 million and contracted cash payable as some of the most credit worthy entities combined with our year end $60 million cash position and no debt.
We're also proud that over the past two years, we've repurchased approximately one 2 million shares for about $40 million and combined puts us in a great place financially.
And with our growing position that we've established in this sector, our pipeline of potential customers or product opportunities.
Dominantly Terex team I'm equally excited about our strategic positioning for the future.
Speaker Change: With that I'll turn it over to the operator to open the call for questions.
Ladies and gentlemen at this time, we'll begin the question and answer session.
To ask a question you May press Star and then one using a touchtone telephone to withdraw your question you May press star and two.
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Once again that is star and then one to join the question here.
We will pause momentarily to assemble the roster.
And our first question today comes from George Sutton from Craig Hallum. Please go ahead with your question.
Okay.
Thank you Mike Congratulations on a wonderful transaction so I.
I wondered if we could just think through the predictive factor so that for future opportunities. We can try to predict these a little bit better.
So encore was obviously another member.
And you were also encouraged I think after the lower Colorado got side that you would have some additional opportunities in Texas was there anything else that would have pointed to the.
Speaker Change: The potential for this deal a little bit better for us and I'm also curious about the tiny given that they.
Went to the highest level of intent earlier in the year, which would suggest a relatively fast deal cycle.
Thanks, George and good morning, I'll start with an apology.
Getting over a bug and you can probably hear my voice it doesn't want to participate and called it as much as I do.
So it relationship.
The timing of oncor and the broader market.
Yeah, We we've said in the past and it's it's.
Worth restating.
Speaker Change: We really approached this.
Very broadly from a sales funnel standpoint in other words, we talk about the scope of the opportunity in a number of utilities are working at any given time.
Because of its true in classic sales, but even more so with these kind of customers. These utilities have so many pressing issues going on and so predicting the timing of how long it takes them to get through the cycle.
From a standing start to finish.
Always challenging for us and do we break even for them it could be reached.
But there's a couple of factors just getting specifically to encore and then maybe Brian wants to add some color to it specifically, but.
We haven't we haven't concept when you talk about sort of a neighborhood affect what's happening is we're seeing that when utilities move forward those around in those influenced by them become more aware of the opportunity to move forward private LTE, but also the necessity.
And so when you talk broadly about Texas for example, what Youre well aware of what happened.
Back in 'twenty, one with the winter storm and looked at that was.
As of billions of dollars of loss and hundreds of lives lost and so the impact of these things that are beyond that you've got wildfires now in Texas.
About the country and so the use cases that are being demonstrated by our two our utility relationships now across the country.
Are becoming more and more well known and unfortunately, the demand side is growing and growing and so those that is driving.
The timing both locally within regions, but also nationally.
I wish I could give you more specifics about precisely when deals will will happen that's not the precision that that either we are often the customer has to what do you want any more color there yeah happy to Hey, George Good morning.
I mean, I think what we see now even through these seven transactions. In addition to everything else. We've seen the 60 plus in the pipeline. It's never been just one thing either kind of lead to these these positive indicators of movement that we can point to and I think they're in line similar complexity you know in terms of how we see these things evolved keep in mind I mean encore.
As we stated you know a complex system you know a significant 900 megahertz incumbent so clearly you know we've had engagement and conversations with them going back you know well into time, not always about transactions, but certainly with a deeper understanding and appreciation of what we're doing and paying attention to what's happening around them.
Rob touched on it a bit but you know kind of the regional the community effect I don't think it'd be understated.
Kind of looking towards that point in time, where we start seeing the impact of the the individual deals that we have and the effect both at the macro level you know that creates momentum in its own right and you know this.
So I'd say it in a positive light you know an industry of followers.
We're recapturing momentum based on the first to go that we absolutely see play out in regional levels as well already where you know the reasons that you know an individual territory like Texas might move forward, our unique necessarily to an individual utility they tend to be more pervasive across the region and the regulatory environment and it was consistent across the region and.
That builds confidence in each of these utilities and underscores the critical importance of having infrastructure like broadband to support the initiatives that theyre trying to put together. So it's a combination of things you know also I would say it is reflected you mentioned kind of the transition of them and in the GI scorecard part of the reason why we're tracking that.
'twenty metrics. There you know is to keep you know in some of those are public and some of them are private but keep visibility to the things that we believe matter over a longer duration of time as we are focusing our teams and our efforts to keep the ball moving on all of these opportunities.
Yes.
So just further on the regional neighborhood concept and.
This is a question I would have in the past asked Morgan O'brien.
When we think of the network of network opportunities does this.
When we start to put contiguous spaces together does this help promote that network of network theme can you give us an update there.
Yeah. Thanks George.
Very much so.
Vince you quickly.
There's a long list of use cases to be sure that we put into a lot of our materials published.
But to me the obvious compelling one is mutually right. So we try to just talking about these crises that have occurred.
The rooms versus other things that occur mutual aid is the concept that really plays into what Ryan said. These utilities work together. So when you say that there are utilities that border.
No storms come through Georgia, there are hundreds of trucks that low into that area from neighboring utilities in order to be able to help.
There and restore service as fast as possible that's the union between the utilities and the benefit but I understand that the communications and those trucks today is not interoperable like those are two way radio systems legacy systems that are or our unique discrete systems and frequencies, but getting on a collective system and that starts with.
Voice communications.
What's the frontline the important workers that are going out to restore services, but it didnt gets into.
Cyber mutual aid, which is a topic that you talked about it you've got us into marketing student gets into.
Understanding the data patterns of how to optimize the utilization of Ocala.
Speaker Change: Transmission goes across these boundaries as well and transmission is often.
The most challenging weakest link up how we're solving the energy challenges that are occurring with growing demand aspects of the marketplace I'm sure you've all seen a lot of the right now about the datacenter demand because of the growing AI requirements.
Utilities have to look at that not as just a point problem, but it's a full network problem from generation to distribution and consumption of that tower and so a more effective management of that entire network not just within one service territory, but across our service territories and across the nation in Texas specifically.
All of the ERCOT footprint, that's the regulator it overseas that area and so knowing how to more efficiently.
Generally manage the power transmission and also manage the consumption of them I mentioned some of the stuff that went on because it's an electric car as an example.
You know that the desire to put large processing power large compute.
On the edge.
The network they call it a M E metering that we see them on the sides of our houses today, but seem that would be a large processing AI power to both control things that are happening within your house, but also within the neighborhood and being able to say how can we be more efficient because power is all about peak consumption and so.
We can lower the peak consumption by using the generators.
That are attached to these networks by using the battery storage and solar in a more efficient way, we can better feed the new usage of power like data centers and an industrialized.
Users within that we can enterprise.
And George it's Chris I would sort of pile on and just say.
When we talk about the network of networks, we're talking about scale and scope and to some extent that scale and scope and mutual aid us as Rob referenced store in an understanding of of network performance, but it's also scale and scope in in research and development and scale and scope.
Speaker Change: And in buying power and things like that.
You know one of the neat.
Facts that that was introduced to us in the in the in the recent past was when you look at our six and now seven customers collectively combined they're larger than U S. Cellular right. So so now they themselves are driving a level of scale and it'll be.
Scale and deployment and it'll be scale and as I said like research and development and axis. So.
You know, we see this network of network being both national and to the point you raised.
Regional but the benefits will flow across a wide range of needs for the utilities.
Alright, great move forward thanks, guys.
Thanks George.
Our next question comes from Walter <unk> from Light shed. Please go ahead with your question.
Yes, Hi, Al This is Joe on for Walter.
Kind of a follow on so so when these these service territories overlap I get that the licenses don't match the specific county lines did.
Did the utilities have any way to achieve that 100% coverage.
Their transmission footprint like can are you able to.
Design of a shared model or some sort of solution or D with C. B R. S.
Closely aligned to that territory.
Joe Thanks for the question a great Segway I hate to the last question because really when you look at the nation spectrum footprint, which as everyone knows we have spectrum in every county of the nation.
We look at it as a contiguous.
Eventual coverage as we build out the nation. So when we are bordering utilities.
The Ameren energy could be on Cornell CRA as examples.
Those utilities.
Already worked together before leaving this business I talked about mutual waiting and other things, but as they get into the wireless. This is LTE like fortune five G involving from there. It's built to have the capability of sharing infrastructure right. When you take your phone to Europe and warm across countries and seamlessly use it that's what it's built for and so.
Absolutely, we'll have sharing between utilities and so if theres a county that the LCR ahus and an uncle or doesn't they'll likely find ways to share that but to be clear as Ryan talked about all the opportunities for <unk> to continue to develop products and services. That's a capability that has.
The scale and scope that Chris talked about and so for us to be able to on a centralized basis play a role in helping coordinate and creating value and that value can be for the utilities to be sharing it and therefore deferring the cost and lowering the cost to consumers that value can be sharing those networks with third parties, because theres opportunities to be able to say.
They are like minded users like possibly gas companies will be used for utilities that could also leverage that infrastructure investment to meet critical communications and so on.
Yeah, well those those themes will tightened tremendously as these networks get built and they get interconnected.
Using the.
The off the shelf capabilities of LTE, but then as we add more and more layers of capabilities and services to be able to create that seamless usage across utility networks.
And then.
Another question on the on the five by five update.
If that does go through what would be the next steps kind of leverage that opportunity and then kind of a question I guess for Chris.
Since I'm not I don't understand all the politics and in utility World doesn't.
Speaker Change: Doesn't matter who wins the election is there.
Potentially more support from.
One side versus the other.
Great great.
Yeah, great great questions I'll start I'll start with the the ladder and then and then back up.
What we are pursuing both with our three by three opportunity and then and then going forward hopefully with a five by five opportunity. It's it is really a political in fact, our first report and order was a five O vote. So we Havent you know Republicans and Democrats and it was led by.
By a Republican Commission.
Over the last several years all of the great work out of the FCC has been led by our chairwoman Rosa Warsaw and a Democratic Commission.
And so we don't see sort of a.
Any impact sort of in terms of political impact of the of the election now what we have learned what everyone knows is that.
You know the regulatory bodies and government slowdown around an election, but next step.
It's to hopefully secure a notice of proposed rule, making out of the FCC I think we've we've put together a really collectively a really compelling case for them to move forward because it is an intersection of of the utility goals of government.
The resilient all of the things Rob Ryan everybody has talked about the resiliency the de carbonization. So it fits all of that and then you combine that with really smart spectrum policy, which obviously the commission embrace that and a three by three and contemplated it with regard to the five five so again I think we've made a very compelling case.
And then but we just have to work to do to make sure. It's on the radar screen of the commission.
And and then to move afford it is gonna be a multiyear process that is normal, but but we believe that this is a you know a very valuable opportunity for the entire ecosystem and so we're excited to move forward.
And and you know 111 core point is.
When we filed last time it was the enterprise wires Alliance in and then tariffs you know this time at the co petitioners span you know as I referenced I mean, just the trade associations alone represent 80% of the electricity consumers in the country. So so having that broad.
Rod.
Swath of of support and then when you add in you know you go beyond the co petitioners, you really do get to a who's who of of of utility representation.
Thanks.
Once again, if you would like to ask a question. Please press star and then one so withdraw your questions you May press star and two.
Our next question comes from Griffin Boss from B Riley Securities. Please go ahead with your question.
Hi, Good morning, Thanks for taking my question. So I just want to be clear jumping back to the last last question related to the overlapping service territories. So L. C. R. A an XL arc they will coordinate with encore for potential network access and that's overlapping counties and then so is that sort of that.
The template that would be used across the country are in other parts of the country with other utilities.
So without getting into anything that's under an NDA.
Broadly we continue to play a role in helping our existing customers coordinate.
To ensure that they can utilize the territories.
Concept is historically known as roaming right.
Simplicity standpoint, so again, it's a technology that's it's a function of its native in the L. T technology, and so but the scale and scope benefit. We bring is that as you can think about a utility that has neighbors on all sides not just on one side and some of these cases.
We are developing.
Now in 15 states, but hopefully soon across the whole nation.
We will play the role to help orchestrate that national National aspect of how can you go from one territory to another and be able to manage those borders but Ron do you want add to that yeah, Let me add a little bit Griffin.
This isn't a particularly unique to any particular territory.
I mean as much as we like to think of as kind of a footprint that utilities as being you know very absolute and finite reality is theyre not.
Utilities, you have relatively fuzzy borders even operate different kinds of service territories, where they might have transmission or they might have actual electric who consumers and frankly, even where they might have gas consumers.
And you know what they look to do when they're building new systems and it was obviously to optimize where the maximum value will be that they can realize given the use case that they go through but they have a long history of kind of cooperating in a lot of those footprints with all of these neighboring utilities.
And in fact, you know we talked a little bit about some of the developments that we've been making with the ecosystem.
The utility strategic Advisory Board that helps gives us visibility and guidance to where some of the strategic direction goes and needs for the industry.
The message to share the processes to share.
A major component of some of the things that are being explored in those conversations already because it is it is a pretty common nature feature of what we're trying to do.
And our role in our ability to be able to help influence and design and then implement those kinds of capabilities. You know is exactly the kind of things that we're focused on you know across the sector and things that really need to get done at a national level to be able to provide the maximum value across as large incentive of constituents as possible. So hope hope.
That helps.
Yeah, absolutely not that thanks for the color I appreciate it and then what was the clearing price prior auctions in the area served by on car get do you have that data.
Oh, not at our fingertips, we can share, but I'm sure Natasha can follow up with your growth in <unk>.
<unk> as you know, there's a lot of different comparables over the historical auctions in some of the more recent private transactions as well but.
Just to sort of rounded out the price stayed I think if.
As Tim indicated.
As we think it is fair market value.
Good good value based on the $102 5 million, representing about that $9 3 million Pops across their particular 95 counties as you want as you understand.
Spectrum pricing is just like real estate and so if you're looking for an acre of land in any one of those counties versus another county around the nation.
Expensive places like San Francisco, and New York.
The places are very differently and so you really have to get down to the county level to understand the mix of counties within one particular utility that we transact with versus another and so that's the that's the way we look at it and that's the way it really most utilities have approached it.
Has had prior spectrum auctions.
Mhm, Yeah, no sure got it okay well thanks for taking my question I'll follow up with Natasha Hopper.
Yeah.
Thank you.
Yeah.
And ladies and gentlemen at this time in showing no additional questions I'd like to turn the floor back over to management for any closing remarks.
Thank you Ann and thanks, everyone for your participation this morning.
Again, we couldn't be any more excited to go to share all of this good news both the progress this past year.
Getting off to such a great start this particular year. So we appreciate your support and patience and look forward to sharing more progress with you all soon thank you.
Thank you ladies and.
Ladies and gentlemen that does conclude today's conference call and presentation. We do thank you for joining you may now disconnect your lines.