Q3 2024 Verizon Communications Inc Earnings Call and Business Update Call

Unknown Executive: Okay. Testing one, two. Yep.

Hey.

Speaker Change: Testing one two yep good morning, Hello, everybody welcome to the Essex House and welcome to our event. This morning and for everybody on the webcast. Thank you for listening in I got a couple of items that I need to cover upfront first and I'm missing the clicker or is there a clicker okay. There we go.

Unknown Executive: Good morning. Hello, everybody. Welcome to the Essex House and welcome to our event this morning, and for everybody on the webcast. Thank you for listening in. Got a couple of items that I need to cover up, but first I'm missing the clicker. Is there a clicker? Okay, there we go. We have a website with the Safe Harbor Statement. A couple of items. Also, we have some non-GAAP disclosures or non-GAAP items in the presentation; the recommendations of those are provided on the website. Next slide, please.

Speaker Change: Safe Harbor statements. So our presentation today contains suit for us.

Speaker Change:

Speaker Change: Things about statements there were forward looking and contains risks and uncertainties. Those are covered on our website with the safe Harbor statement couple of items also we have some non-GAAP disclosures of non-GAAP items in the presentation. The reconciliations of those are provided on the website next side, please and one administrative item for today.

Unknown Executive: And a one administrative item for today. The camera is going to be focused on the stage during live Q&A. For the folks in the audience, ask that you announce your name and your firm when called on for Q&A. With that, we're really excited for the content today.

Speaker Change: The camera is going to be focused on the stage during live Q&A for the folks in the audience asked that you announce your name and your firm when called on for Q&A with that we're really excited for the content today. So let me hand, it over to Hans and we'll get going Hans.

Hans Vestberg: So let me hand it over to Hans, and we'll get going.

Unknown Executive: Hans. It's on the table.

Speaker Change: Okay.

Hans: So on the table in the morning.

Hans Vestberg: Good morning. And welcome to Verizon's third quarter earnings call as well as a broadband update. Very happy to see so many in the room. A lot of course also happy for everyone joining on the webcast. Let me kick this off. We have an agenda that is pretty simple. We're going to talk about the highlights on the third quarter. Then we're going to do some a little bit of a strategy to update. And we're going to end up with a Tony talking about the results in capital allocation. So let me start by talking about the third quarter.

Hans: And welcome.

Hans: To Marias on third quarter earnings call as well as in broadband update very happy to see so many in the room, but of course also have if where everyone joining on the webcast lately.

Hans: Let me kick this off.

Hans: We have an agenda that is for example, when I talk about the highlights of the third quarter, then we're going to do some <unk>.

Hans: They were strategic updates.

Hans: And we want to end up with.

Hans: Phone and talk about results and capital allocation.

Hans: So let me start by tour.

Hans: Looking ahead to third quarter, and maybe before I start with the third quarter.

Hans Vestberg: And maybe before I start with the third quarter. You're mentioning the hurricanes that have been going through our southern part of our country and have devastating impacts. Verizon, of course, has worked tirelessly that the communications up is so essential that communication is working for public safety. But also for the communities that are affected initially in some of the states. We have challenges, especially in power. But I think that our team did a fantastic job to get our networks up pretty quickly. So again, these are things that are happening constantly around the world right now when hurricanes and national disasters.

Speaker Change: He was mentioning the hurricanes that has been going through our southern portion of our country and had devastating impacts.

Speaker Change: Verizon of course has worked tirelessly to see that the communications up is so essential that communication is working for public safety, but also for the communities that are affected.

Speaker Change: Initially in some of their states.

Speaker Change: We hadn't challenged areas, especially with empower.

Speaker Change: I think that our team did a fantastic job to get their networks up pretty quickly. So again. This is things that are happening constantly around the world right now and Hurricanes and natural disasters for US building the networks, there's you're always doing.

Hans Vestberg: For us, building the networks as you're always doing is extremely important to see the resilience and on the network during these times.

Speaker Change: It's extremely important to seeing their resilience and on the network. During these times so.

Hans Vestberg: So starting with that, talking a little bit about the results. I haven't tied today. That means it's a good result. It is a good result. I'm really pleased with what I've seen them. I've talked to you so many times that there are years when you're a CEO where you're performing better than others. And I know that 22 wasn't the highlight of my career as Verizon. But god damn, what we have done great jobs since then. Stocking in 23 in the mid-year of starting change in the products and all of that. And then coming around with all right now.

Speaker Change: Starting with that talk a little bit about the results.

Speaker Change: I haven't tied today that means there's a good result.

Speaker Change: It is a good result, I'm really pleased what I've seen them and I'll talk to you with so many times that there are years. When you are a CEO, where you're you're performing better than others and I know that went into wasn't the highlight.

Speaker Change: Well my carrier garage song.

Speaker Change: Goddamn, what we have done great job. Since then starting in 'twenty, three and a mid year or starting change into products and all of that and then coming around where we are right now looking at the financial growing two 7% and our wireless service revenue was great.

Hans Vestberg: Look at the financial growing 2.7%, and the wider service revenue is great. I'm also proud to report the biggest profit in the history of Verizon. From $12.5 billion in the water, which is really good. And it's multifactors. And of course, the team's hitting on there done a great job. I proud of that. Continue to create good cash flow. 6 billion in the water. Continue with a really strong cash flow generation. As that is part of our measurement and how we measure ourselves.

Speaker Change: I'm also proud.

Speaker Change: To report there.

Speaker Change: Biggest profit EBITDA in the history of all the rice on $12 billion in the quarter, which is really going down its multi factors and of course it teams anything over there and done a great job.

Speaker Change: Proud of that continued to create good cash flow 6 billion in the quarter continue.

Speaker Change: Really strong cash flow generation.

Speaker Change: As that is part of our.

Speaker Change: Our measurement on how we how we measure ourselves on the operational side, we started getting an even better balance on on the postpaid side. We were 239000 net adds positive sand, but we'll talk about what happened in the consumer but I already know going to tell him. He did a great job in the.

Hans Vestberg: On the operational side, we started getting an even better balance on the post-paid side. We were 239,000 net ads, positive sample. We'll talk about what happened in the consumer. But I already know I'm going to tell him he did a great job in the post-paid, but also in the pre-paid. We were turnaround pre-paid, and we got a lot of questions over the years. Now we're on the post in the 80,000 exact link. And of course, the business side did a great job on wireless again. Kyle and his team is consistent in between 125,000 to 150,000 net ads every quarter.

Speaker Change: Postpaid, but also in the prepaid we work turnaround prepaid where I've got lots of questions over the years now around passing the 80000 X safely and of course, the business side did a great job of wireless again, Kyle and his team is concept consistently between 125 to 150.

Speaker Change: <unk> thousand net adds every quarter.

Hans Vestberg: And I'm really pleased with that.

Speaker Change: I'm really pleased with that the broadband side I promised you know for quite a long time as soon as I get into four to 5 million.

Hans Vestberg: The broadband side, I promised you now for a quite a long time. As soon as I get them to 4 to 5 million fixed-wise access subscribers, I'm going to come back to what we're going to do after that. For slides now, I haven't talked about that. But first of all, I'm going to take a picture of that. That we're 15 months ahead on the target with outline when we bought the C-Bound. We got fixed-wise access. Again, a great product, a great work. The same time, for the ones that remember, we were a little bit weaker on files in the second quarter because it was a little bit of movements in the market with ACP and all of that.

Speaker Change: <unk> fixed wireless access subscribers are going to come back to what we're going to do after that.

Speaker Change: Slides down I wouldn't talk about that but first of all I'm going to take a victory lap that we're 15 months ahead of the target we outlined when we bought the C band.

Speaker Change: Our fixed wireless access again, a great product great work at the same time.

Speaker Change: For the ones that remember, we were a little bit weaker on fires in the second quarter, because it was a little bit of movements in the market with ACP and all of that now we're back to normal again. The team is doing great work with fires all in all.

Hans Vestberg: And now we're back to normal again. The team is doing great work with files. All in all, a great quarter for broadband.

Speaker Change: Great quarter for broadband and we continue with the private networks and the mobile edge compute we announced two deals this quarter, but we'll have way more FIFA and MSG Madison Square Garden room, all of buying private networks using our capabilities in dense.

Hans Vestberg: And we continue with the private networks and the mobile edge compute. We're now to the East East quarter, but we have way more. C-Fi and MSG, Madison Square Garden Group. All of our private networks using our capabilities in dense areas, so see that they can fulfill their fans or the customers' experience. Williams. All in all, we feel good about the full-year financial guidance that we gave early in the year. We even said if you have read the press list, which I hope that all of you have done, that when it comes to the wider service revenue and in detail, we are at the midpoint or above on both of them for the full-year.

Speaker Change: Dense areas, you'll see that they can fulfill their fans or the customers experiences.

Speaker Change: All in all we feel good about the full year financial guidance that we gave early in the air.

Speaker Change: We even said if you haven't read the press release, which I hope that all of you have done.

Speaker Change: When it comes to wireless service revenue and indeed, we are at mean point all about on both of them for the full year. That's how good we feel about the performance all foreign yeah. That's what I have to say by the third quarter, Tony will come back in and go a little bit deeper.

Hans Vestberg: That's how good we feel about the performance so far in here.

Tony Skiadas: That's what I have to say about the third quarter. Tony will come back and go a little bit deeper.

Hans Vestberg: If I then come in to talk a bit about the strategy, some of this is given for you, but for me it's a journey where we are today. It's a long journey with a lot of things, and we are a very organized structure company what we are doing. Last time we told you that our network, the last five years, grew 129%. If you haven't built it with our own Fiverr, with the transport networks we have done and all these fundamentals that Kyle and Joe has built, we can't handle all these data and have the best network in the nation when it comes to wireless and broadband.

Tony: If I then come in to talk immediately go out this rapidly. Some of this is given for <unk> for me, it's a journey, where we are today.

Tony: A long journey with a lot of things and we are very organized structure and company and what we're doing the first phase.

Tony: I I call it sort of building the foundation some of you remember the heavy investment in fiber the Verizon intelligent edge network all of that was enormously important.

Tony: For today's work I mean on the table in front of you have your consumer connection report, that's what we give out twice a year when all the stats what's happening in the network last time, we told you that our network. The last five years grew Han and 29% if you haven't built it with our own fiber.

Tony: The transport networks, we have done in all these fundamentals that Kyle and Joe was built we couldn't handle all these data and have the best network in the nation when it comes to wireless and broadband so the fundamentals when Dean will go to market when consumer and business is really paying off today and you see it when our product is taught resonate.

Hans Vestberg: The fundamentals we did with the go-to-market, with consumer and business, is really paying off today. You see it when our product has started resonating with the market is because we have Kyle and Sam, both of them thinking about how to meet the customer demands and what the customer needs to have. All in all, that was important.

Tony: When a market is of course, we have Kyle and website, but both of them thinking about how to meet the customer demands and what the customer needs to have so all in all that was an important second phase all of you remember we sold we bought a lot of assets we have.

Hans Vestberg: The second phase, all of you remember, we sold a lot of assets. We sold everything in Verizon Media Group; we bought the Track Phone that is paying off right now. We also bought the C-band, enormously important. You're going to hear Joe talking about the C-band, but we all know where we deployed the C-band; we have greatest financial success and customer impact. So very important movements we did in that. But we also launched a lot of new products, fixed-wise access, My Plan, My Home and a lot of other things that we now have at the base going into 25.

Tony: So everything in Verizon Media group, we sold we bought the Tracfone and it's paying off right. Now we're also more to C band enormous important you're going to hear.

Tony: Joe talking about the C band, but we all know we're redeploying. This event, we have a greatest financial success and customer impact. So very important movements, we didn't in that but we'll also launch a lot of new products fixed wireless access my plan My home and a lot of other things that we now have as a base going into <unk>.

Tony: Define.

Hans Vestberg: And now we're also extending our time with a couple of larger investments we're doing all the way from frontier, but also what we wanted to talk to in a second.

Tony: Now we're also extending our Tam.

Tony: With a couple of larger investments, we're doing all the way from frontier, but also wanted to talk to in a second so for me. This journey is now in a moment, where we have the right assets.

Hans Vestberg: So for me this journey is now in a moment where we have the right assets, we have the right team, and we have great products for our customers. Only the last, I would say, six months, we have done all of these strategic movements in order to strengthen ourselves to continue to be clearly the number one in the market and extending that. You have seen them all, the customer first offerings we have done, resonating with our customers. We're going to hear Sam, but talk about them. The refreshed brand, we did in June, that takes time to get the impact, but we see the positive movement with the refreshed brand that is supporting our new products.

Have the right team.

Tony: And we have great products for our customers.

That.

Tony: Only the last I would say six months, we have done all of these strategic movements in order to strengthen ourselves to continue to be clearly the number one in the market and extending that you have seen them all the customer first offerings, we have done resonating with our customers, we're going to hear sand, but talk about them.

The refreshed brand.

Tony: We did in June that takes time to get the impact, but we see the positive movements, where they refresh brand that is supporting our new product really happy with that and hopefully some of you are looking at the commercial side the digitally on television and see how we are trying to recapture and rethinking the way, we're showing up for our customers.

Hans Vestberg: Really happy with that, and hopefully some of you are looking at commercials either digitally or on TV and see how we're trying to recapture and rethinking the way we're showing up for our customers. We have the plan, Frontier acquisition, we talked about that in a separate session, we're excited about that and adding to our expanded time. We did a tower transaction in just two seconds on that. Of course, it was cash in, but more importantly, we only do the deal when we can see a deal that actually creating more opportunities for us. Both by having a cost level that is predictable for us, very important.

Tony: The plan frontier acquisition with talked about that in a separate session. We're excited about that.

And adding to our expanded Tam we did the tower transaction in just two seconds on that of course is was cashing, but more importantly, we're only doing a deal when we can see a deal that actually creating more more opportunities for us both by having a cost level that is predictable for us very important.

Hans Vestberg: I like owner's economics in the network, and second, we're also creating more competition in the market. We're suddenly creating, with the strategy reporting, vertical bridge, another strong partner in the market, giving more optionality and seeing that we can have a predictable cost for our tower releases, which is one of the few things we're doing, having 100% ownership on. We also, yesterday, I think announced that we're buying some spec from you with seller. It's going to take time until that comes into fruition because it's hanging on another acquisition, so I don't think it's going to be cash out until 26.

Tony: Owner's economics in the network and second also creating more competition in the market, where suddenly creating with the with these sweaty reporting vertical bridge another strong partner in the market, giving more optionality and seeing that we can have a predictable cost for our tower tower leases, which is one of the few things, but don't having 100% owner.

Tony: Upon.

Tony: We also just yesterday I think announced that we're buying some spectrum U S. Cellular is going to take time until that come into fruition because he is hanging on another acquisition.

Tony: So I don't think it's going to be cash out onto in 'twenty six.

Hans Vestberg: It's just adding capacity; it's a buy versus build in that region, so we're adding capacity there.

Tony: It's just adding capacity is a buy versus build in that region. So we're adding capacity there.

Hans Vestberg: And then we will not speak so much about AI today, but I hope you're going to ask some questions to Kyle because not only see the efficiencies that somebody's talking about in the customer care and personalization. We see with our compute storage, with our power and the mobile edge compute, we see great opportunities when it comes to AI and revenues for us. And we will talk a little bit about here, but we'll also do it in the future, coming back a little bit more structure and talk about what we're doing, but we're already right now seeing good attractions on what we're doing on the front end of it.

Tony: And then we will not speak so much about AI today, but I hope you're going to ask some question to Kyle because not only see the inefficiencies that somebody is talking about in the customer care and and personalization, we see with our compute storage with our.

Tony: With our power and the mobile edge compute we see great opportunities.

Tony: When it comes to AI and revenues for Us and we will talk a little bit was here, but we also do it in the future coming back a little bit more structure into what we're doing but we're already right now see a good interactions on what we're doing on the front end of it all and all that sums it up where we're at today I think we have an unmatched value proposition.

Hans Vestberg: All in all, that sums it up where we're all today. I think we're having our match value proposition, all the way from our best mobility, America's best mobile networks. We created a satellite partnership recently. We have my plan, plus all the business and business offerings, strong offering, and then on the broadband side, all the way from FIOS to fixed wireless access. We're now almost 12 million broadband customers, 11.9. The fixed wireless access is generating more than 550 million per quarter in revenue, started three years ago. So we can see that we can build on this network, where we build the network once, and we want as many profitable connections on top of it.

Tony: All the way from our best mobility America's Best Mobile networks.

Tony: We created a satellite partnership recently, we have my plan plus all of the pieces of business offerings strong offering and then on the broadband side all the way from fires to fixed wireless access.

Tony: Now, we're almost 12 million broadband customers 11 nine.

Tony: Fixed wireless access again, raising more than 550 million per quarter in revenue started three years ago. So we can see that we can build on this network, where we build the network once and we want as many profitable connections on top of it it started paying off we're not so we're.

Hans Vestberg: It starts to pay off with up. So we're uniquely positioned in the market with all the economics.

Tony: We're uniquely positioned in the market with owners economics. So all that said, we're all way in the quarter were all were going as a company. We know also that were hit sort of targets on broadband. So we're going to talk today about what we're doing next so our broadband targets going forward is basically we're going to say that we're going to double the fixed wire.

Hans Vestberg: So all that said, we're all in the quarter, we're all going as a company. We know also that we're hit sort of targets on broadband. So we're going to talk today about what we're doing next. So our broadband targets going forward is basically going to say that we're going to double the fixed wireless access targets by 2028 to 8.9 million fixed wireless access subscribers. Joe will talk a little bit about what we're doing and how we continue. And I expect that Joe, our head on network, continue to have a capacitive way beyond and continue to build for us.

Tony: Access targets by 2028 to eight 9 million fixed wireless access subscribers.

Tony: Joe will talk a little bit what we're doing and how we continue and I expect that Joe our head on network continue to have capacity way beyond and continue to build for us. So we are ready to capture this opportunity that we're great at.

Hans Vestberg: So we are ready to capture these opportunities that were created.

Hans Vestberg: We're also going to talk about our acceleration on FIOS. We think that's a great opportunity for us to do that. This is moment. We will, as we have close the frontier acquisition, have more than 30 million passings, fiber passing. And we'll also see a clear path of somewhat to 35 to 40 million, 35 to 40 million passings after frontier and what we're doing ourselves. And if we combine that with our fixed wireless access, I think in the future we're going to cover more than 100 million. So clearly the broadband, together with the mobility, together with our offerings.

Tony: We're also going to talk about our.

Tony: Our exploration on fires, we think that's a great opportunity for us to do that at this moment we will.

Tony: We're close to frontier acquisition have more than $30 million.

Tony: Passing fiber passing to <unk> and <unk>.

Tony: We will also see a clear path of somewhat of $35 million to $40 million 35 to 40 million passing.

Tony: The author frontier and what we're doing ourselves and if you combine that with our fixed wireless access.

Tony: I think in the future, we're going to cover more than 100 million households, So clearly the broadband together with mobility it together with our offerings.

Hans Vestberg: We're putting ourselves up to possibilities of continuous sustainable growth on our service revenue. But also continue to expand our indeed time and cash flow.

Tony: We're putting ourself off the possibility to continue driving.

Tony: Sustainable growth on our service revenue, but also continued to expand RMB thing and cash flow and the ones that have been following us we're not even all of those three all the things. We're national those are the three things that management are matching on the board has decided and those are the three things that are actually driving the most.

Hans Vestberg: And the ones that have been following us for a long time, you know, those three other things were mentioned on. Those are the three things that management or mentioned on the board has decided. Those are the three things that are actually driving the most shareholder value. And that's what we're focused on here right now.

Tony: Shareholder value and that's what we're focused on here right now so I will let my team now explain a little bit about where we are and how we're going to execute on these targets and then we're going to hear some butt.

Hans Vestberg: So I will let my team now explain a little bit about where we are and how we're going to execute on these targets. And then we're going to hear Sam and Tony talk about the financials and the situation.

Speaker Change: And told them to talk about the financials and the situations. So, but that's now going to hand over to Joe Russo. Thank you Ross appreciate it very much good morning, everybody.

Joseph Russo: So by that, they're going to hand over to your Rousseau. Thank you. I appreciate it. Very much.

Joseph Russo: Good morning, everybody. The one thing I want to first say up front is the network and technology team is super confident that the investments I'm going to talk about over the next few slides. Coupled with the best engineers in the industry, is going to continue to deliver on the best, most reliable, highest performing networks for our customers. And give that experience to more and more Americans across the country. It's easy to make claims about being the largest this through the fastest that. But that's not what my team and I are about. We're about building the best, most reliable networks.

Joe Russo: The one thing I want to first say upfront as the network and technology team is super confident that the investments I'm going to talk about over the next few slides coupled with the best engineers in the industry is going to continue to deliver on the best most reliable highest performing networks for our customers and.

Joe Russo: Give that experience to more and more Americans across the country.

Joe Russo: It's easy to make claims about being the largest this through the fastest that but that's not what my team and I are about.

Joe Russo: We're about building the best most reliable networks and that takes hard work and a lot of strategic investments that I'll talk a little bit about today, but that's hard work around testing and optimizing the network each and every day its strategic investments in things like generators and.

Joseph Russo: And that takes hard work and a lot of strategic investments that I'll talk a little bit about today. But that's hard work around testing and optimizing the network each and every day. It's strategic investments in things like generators and mobile assets for when there's emergencies. And this is why, as Haan said, following the hurricanes, Helena and Milton, the Verizon network outperformed the rest of the industry. And I'm super proud that we were there when our customers and first responders and businesses needed us the most.

Joe Russo: Mobile assets for when Theres emergencies, and this is why as Hans said following the Hurricanes Hill, Helena and Milton the Verizon network outperformed the rest of the industry and I'm Super proud that we were there when our customers and first responders and businesses needed us the most.

Joseph Russo: So, before I dive into the broadband plans, I first want to congratulate Kyle and Sam Pat for hitting our 4-5 million fixed wireless access target 15 months ahead of schedule. And that took a ton of work from a lot of people within the organization, but one of the things I'm very proud of from the network and technology team is that we built the coverage and capacity well ahead of schedule for them to deliver on that target. And as we look forward to the, there we go, as we look forward to this new doubling of our fixed wireless access subscribers, my team's objective isn't changed; it's to build the coverage and capacity well ahead of schedule, and we're already doing that.

Joe Russo: So before I dive into the broadband plans I first want to congratulate Kyle and Sam path for hitting our four to 5 million fixed wireless access target 15 months ahead of schedule and that took a ton of work from a lot of people within the organization, but one of the things I'm very proud of from the network and technology team.

Joe Russo: Is that we built the coverage and capacity well ahead of schedule for them to deliver on that target.

Joe Russo: And as we look forward to the.

Joe Russo: As we look forward to this new doubling of our fixed wireless access subscribers. My team's objective isn't changed is to build the coverage and capacity well ahead of schedule and we're already doing that.

Joseph Russo: We expect that to cover another 30 million homes over the next four years on our award-winning multipurpose network, we have to do a few things. The first is we will take a mobility-first approach, and I'll talk more about that in a minute. But getting to 90 million homes and businesses covered with fixed wireless access will be accomplished with three key things we're doing today. The first is our aggressive deployment of CBAN and millimeter wave we call ultra-wide band. The second is a new MDEU solution that's been in trial, and we'll be rolling out in 2025 to serve MDEUs with up to one gig internet service with our millimeter wave technology.

Joe Russo: We expect that to cover another 30 million homes over the next four years on our award winning multi purpose network. We have to do a few things. The first is we will take a mobility first approach and I'll talk more about that in a minute, but getting to 90 million homes and business.

Joe Russo: As covered with fixed wireless access.

Joe Russo: Will be accomplished with three key things we're doing today. The first is our aggressive deployment of C band and millimeter wave, we call ultra wide band.

Joe Russo: The second is a new MDU solution, that's been in trial and we'll be rolling out in 2025 to serve empty used with up to one gig Internet service with our millimeter wave technology.

Joseph Russo: And the third is technology advances and the use of our vast small cell network in order to add even more ultra-wide band coverage and capacity between now and 2028.

Joe Russo: And the third is technology advances in the use of our vast small cell network.

Joe Russo: In order to add even more ultra wide band coverage and capacity between now and 2028.

Joseph Russo: So I'm going to ship gears a little bit to fiber. So I'm looking forward to the pending acquisition of Frontier and bringing these two great fiber assets together. The combined wireline footprint has approximately 48 million homes and businesses, of which 25 million of those are already served with fiber. And I know one thing: with our 20-year experience in building fiber across this country, that we will continue to deploy FIOS in the new footprint after closing. Post-close, we will take the appropriate pace to build based on the following criteria. The first is the profitability of the build.

Joe Russo: So I'm going to shift gears, a little bit to fiber.

Joe Russo: So I'm looking forward to the pending acquisition of frontier and bringing these two great fiber assets together.

Joe Russo: Combined wireline footprint has approximately 48 million homes and businesses of which 25 million of those are already served with fiber.

Joe Russo: And I know one thing with our 20 year experience in building fiber across this country that we will continue to deploy files in the new footprint after closing.

Joe Russo: Post close we will take the appropriate pace to build based on the following criteria.

The first is the profitability of the bill.

Joseph Russo: The second is the competitive environment that we see that we're operating in. And the third is our capital allocation priorities. But over time I want to be clear, my objective is to bring FIOS to 35 to 40 million homes across the country.

Joe Russo: The second is the competitive environment that we see that we're operating in and the third is our capital allocation priorities.

Joe Russo: But over time I want to be clear my objective is to bearing files to 35 to 40 million homes across the country.

Joe Russo: So I want to bring the whole network strategy together for you.

Joseph Russo: So I want to bring the whole network strategy together for you. The first is we build a shared multipurpose network with owners' economics to serve as many profitable connections as possible. That strategy is built on the foundation we call the Intelligent Edge Network. Microsoft, which is rooted in our rich fiber assets of both in the ultra long haul network and in the metro networks across the country. It also encompasses our converged IP core and our own and operated Verizon Cloud platform and our mobile edge computing platform that serves both today's and tomorrow's technologies. This foundation gives my team and I the capability to provide that best, most reliable, highest performing network to two access technologies.

Joe Russo: The first is.

Joe Russo: We built a shared multi purpose network with owners economics to serve as many profitable connections as possible.

Joe Russo: That strategy is built on the foundation, we call the intelligent edge network.

Joe Russo: Which is rooted in our rich fiber assets, both in the ultra long haul network and in the Metro networks across the country.

Joe Russo: It also encompasses our converged IP core and our owned and operated Verizon cloud platform.

Joe Russo: In our mobile edge computing platform that serves both today's and Tomorrow's technologies.

Joe Russo: This foundation gives my team and I had the capability to provide that best most reliable highest performing network to to access technologies.

Joseph Russo: The first is the radio access network, and again, as I mentioned, we take a mobility first approach. What that means is I deploy coverage and capacity to enhance the mobile experience for our customers and to find new revenue streams. The good news is we pull through fixed wireless access when we do that, and as we've said, we've been awful successful in that space. Customers just love that product. So we will be accelerating our ultra wide band deployment. I expect that the beyond by the end of this year will have past will have covered 70% of our plan footprint, and by the end of next year, through acceleration, we will get to 80 to 90% of that plan footprint covered.

Joe Russo: The first is the radio access network and again as I mentioned, we take a mobility first approach what that means is I deploy coverage and capacity to enhance the mobile experience for our customers and to find new revenue streams. The good news is we pull through fixed wireless access when we do that and as we've said.

Been awfully successful in that space customers, just love that product.

Joe Russo: So we will be accelerating our ultra wideband deployment I expect that to be up by the end of this year. We will have passed will have covered 70% of our plant footprint and by the end of next year through acceleration, we will get to 80% to 90% of that plant footprint cover.

Joseph Russo: We also have just recently launched our 100% virtualized 5G core network with standalone and slicing capabilities, and we'll talk a little bit more towards the end of this year how we're going to put those to use in the market. And then finally we are the only company in this country that's actually running virtualized brand at scale. 40% of my C band sites are now virtualized in the network.

Joe Russo: We also have just recently launched our 100% Virtualized <unk> core network with Standalone and slicing capabilities, and we'll talk a little bit more towards the end of this year, how we're going to put those to us.

Joe Russo: In the market.

Joe Russo: And then finally, we are the only company in this country, that's actually running Virtualized ran at scale, 40% of my C. Band sites are now virtualized in the network.

Joseph Russo: Shifting over to the fiber access network. So I've been building files for 20 years or so now, and we're on track this year to pass approximately 500,000 prems. Frontier, as you know, is on their way to pass 10 million prems by the end of 2026, and we are in 2025 targeting an expansion of our files build up to 650,000 prems. Both close, I see that pace growing to up to 1 million plus prems per year. But what excites me more than anything after 20 years of doing this is our business case on files is getting better and better.

Joe Russo: Shifting over to the fiber access network so.

Joe Russo: So I've been building files for 20 years, or so now and we're on track this year to pass approximately 500000 prints.

Speaker Change: Frontier as you know is on their way to pass 10 million premises by the end of 2026.

Speaker Change: And we are in 2025 targeting an expansion of our <unk> build up to 650000 prints.

Speaker Change: Most close I see that pace growing to up to 1 million plus <unk> per year.

Speaker Change: But what excites me more than anything after 20 years of doing this is our business case on files is getting better and better.

Joseph Russo: And that starts with the fact that customers demand high quality broadband services more now than ever. So what we see is when I do a build today, we see higher and faster penetration rates than we have with prior builds, and we pull through mobility benefits on both churn and our food. But I'm also finding new and creative ways to bring down the cost of deploying fiber, and that comes in three big chunks. The first is partnerships with companies like Corning and Comscope where they're delivering technology to do both reduction in the amount of fiber I have to deploy to serve homes and the techniques and technologies that make it easier for my team to deploy.

Speaker Change: And that starts with the fact that customers demand high quality broadband services more now than ever. So what we see is when I do a build today, we see higher and faster penetration rates that we have with prior built.

Speaker Change: And we pull through mobility benefits on both churn and ARPA.

Speaker Change: But I'm also finding new and creative ways to bring down the cost of deploying fiber.

Speaker Change: And that comes in three big chunks. The first is partnerships with companies like Corning and Commscope.

Speaker Change: Where they're delivering technology to do both reduction in the amount of fiber I have to deploy to serve homes and the techniques and technologies that make it easier for my team to deploy.

Joseph Russo: The second is, we've made with Shankar's help 20 years of systems and tools improvements through the whole process of building, designing, operating the network, and we're seeing great benefits from those systems and tools enhancements in the reduction of rework and efficiency of our build and operating of the network. And then the third is, we've made some strategic decisions of how to get legacy costs. Out of our network without having to deploy fiber to the entire wire center. So I can use other techniques to move customers to new technologies and remove legacy equipment without having to deploy fiber across an entire footprint.

Speaker Change: The second is we've made with shrunk ourselves 20 years of systems and tools improvements through the whole process of building designing operating the network and we're seeing great benefits from those systems and tools enhancements in the reduction of rework and efficiency of our.

Speaker Change: Build and operating of the network.

Speaker Change: And then the third is we've made some strategic decisions of how to get legacy cost out of our network without having to deploy fiber to the entire wire center.

Speaker Change: So I can use other techniques to move customers to new technologies and remove legacy equipment without having to deploy fiber across an entire footprint.

Joseph Russo: But our network strategy is clear: to build and operate the best, most reliable, highest performing network, to power and empower how our customers live, work, and play. Let me leave you with this. My goal is to ensure more and more Americans have access to that best, most reliable network experience. By expanding the best mobile and broadband networks through a disciplined capital approach. We do that by building the best networks. And over time, that includes a 5G ultra wide band network that will serve 300 plus million Americans with 5G advanced features for today's and tomorrow's technology.

But our network strategy is clear to build and operate the best most reliable highest performing network to power and empower how our customers live work and play.

Speaker Change: Let me leave you with this.

Speaker Change: My goal is to ensure more and more Americans have access to that best most reliable network experience by expanding the best mobile and broadband networks through a disciplined capital approach.

Speaker Change: We do that by building the best networks and over time that includes a five <unk> Ultra wideband network that will serve 300 plus million Americans with five D. Advanced features for today's and Tomorrow's technology.

Joseph Russo: And a fixed wireless access and file files network that will serve over 100 million homes and businesses.

Speaker Change: And our fixed wireless access and five five hours network that will serve over 100 million homes and businesses.

Speaker Change: So I'm going to turn it over now to Sam path, who will talk through how he'll ensure more customers get access to those great network experiences. Thanks Tampa.

Sowmyanarayan Sampath: So I'm going to turn it over now to Sam Pat, who will talk through how he'll ensure more customers get access to those great network experiences. Thanks, Sam Pat. Joe, thank you.

Speaker Change: Joe. Thank you very good morning to all of you.

Sowmyanarayan Sampath: Very good morning to all of you. There are two things that Joe spoke about that really excites me. The first one is America's best wireless network continues to get bigger and even better. And the second one is our ability to offer broadband to 100 million homes and businesses over a period of time. So, with that, let me get into how we go about this. Verizon is in a very unique position right now because we have two engines of growth: mobility and broadband. Both these segments, both these businesses have secular tailwinds. There's huge demand for both of the products.

Speaker Change: Things that Joe Sparks spoke about that really excites me.

Sam path: First one is America's best Wireless network continues to get bigger and even better and the second one is our ability to offer broadband to 100 million homes and businesses over a period of time, so with that let me get into how we go about this Verizon is in a very unique position right now because we have.

Two engines of growth mobility and broadband both these segments. Both these businesses have secular tailwind there's huge demand for both the product and more importantly, Verizon has a good position and a lot of opportunity to grow and scientific let's start with mobility mobility. We are number one if we look at.

Sowmyanarayan Sampath: And more importantly, Verizon has a good position and a lot of opportunity to grow and quantify. Let's start with mobility. Look at mobility. We are number one. If you look at our share position, our total revenue, and it starts with our post paid business. We are seeing continued momentum in our post paid business with this quarter. And then second is my plan. My plan, as I say, is on plan. Customers love it. They like the structure of it. They like the ability to get access to unique offering. And it's truly differentiated in the market. And you saw us.

Sam path: Our share position, our total revenue and it starts with our postpaid business. We are seeing continued momentum in our postpaid business with this quarter, we would've had seven quarters of consecutive year on year postpaid phone gross add momentum that we have in the business and why did that happen. Some of it has to do with our sales engine that we've <unk>.

Sam path: And re engineered get back to the local market structure local sales incentives local marketing and then second is my plan.

Sam path: My plan as I say is on plan customers love it they liked the structure of it they like the ability to get access to unique offering and is truly differentiated in the market.

Sam path: And you saw we had a strong quarter 81000 phone net adds in space we.

Sowmyanarayan Sampath: We had a strong quarter, 81,000 phone net ads in the space. We will be post paid phone net ad positive with second number without second number this year as well as promised enough plan to do that.

Sam path: We will be postpaid phone net add positive with second number without second number this year as well as promised in our plan to do that next we turn our attention to our value business are prepaid and we bought trackball and we've integrated Tracfone and we had really strong momentum in our business. We had 80000 net add positive or not.

Sowmyanarayan Sampath: Next, we turn our attention to our value business or prepaid. And we bought Track Phone, we've integrated Track Phone and we had really strong momentum in our business. We had 80,000 net ad positive in our business, best in many quarters. And a lot of that comes down to a core performance of our brands. We saw almost all our brands have very strong performance and momentum in the space. Two are exclusive distribution with Total Wireless has scaled up really well and you can see those stores everywhere. And third is our unique distribution positions that we have within Walmart.

Sam path: Business best in many quarters and lot of that comes down to our core performance of our brands. We saw almost all our brand had very strong performance and momentum in this space to an exclusive distribution with total wireless has scaled up really well and you can see those stores everywhere and third is our.

Sam path: Distribution position that we have within Walmart and Youre going to see continued progress and continued momentum in our value business going forward.

Sowmyanarayan Sampath: And you're going to see continued progress and continued momentum in our value business going forward.

Sowmyanarayan Sampath: That brings me to a third topic, which is shown now that we have a post-paid engine working well, a value turnaround in progress. I can turn my attention to the churn. There is nothing structurally that prevents Verizon from being an industry leader in retention and lower churn. We've been in that position before. We know how it feels, and more importantly, we know how we get there. In short term, we made some trade-offs, some strategic trade-offs that Hans and I feel very good about to drive shareholder value. We had some pricing actions that do drive some churn in the space.

Speaker Change: Brings me to a third topic, which is John now that we have a postpaid engine working well our value turnaround in progress I can turn my attention to the tune that is nothing structurally that prevents Verizon from being an industry leader in retention and lower churn we've been in that position before we know how it feels and.

Speaker Change: More importantly, we know how we get that in the short term we made some trade offs, some strategic tradeoffs that Hans and I feel very good about to drive shareholder value. We had some pricing actions that do drive some churn in this space, but on balance we feel very good about how we executed those and often John its way less than some of our business case it had come in.

Sowmyanarayan Sampath: But on balance, we feel very good about how we executed those. And often churn is way less than some of our business cases had come in. The second is we are very disciplined about our retention spend. You see that in our upgrade numbers. It has to be demand-led. Customers have to want it. And we link our retention promotion to the plans and the price plans that they have there. But over a period of time, you should expect lower churn from us. From a couple of things, the first one is a better experience. You know, we are using AI significantly both at stores, at our call centers.

Speaker Change: The second is we are very disciplined about our retention spend you see that in our upgrade numbers. We it has to be demand led customers have wanted and we link our retention retention promotions to the plans and the price plan said they happen, but over a period of time, you should expect lower churn from us from a couple of things the first one.

Is better experience, we're using AI significantly both at stores at our call centers secondary my planning, but as more and more of our base gets into the mine plant construct and takes more book that helps the John Curtis My access of Verizon access our loyalty program, which I'll cover in a bit that's going to give us traction in that and then.

Sowmyanarayan Sampath: Second is my plan in Perks, as more and more of our base gets into the my plan construct and takes more perks that helps with the churn. Third is my access of Verizon Access, a loyalty program, which I'll cover in a bit that's going to give us traction in that. And then the last one, which is probably the biggest lever, is going to be more mobile press home customers. When those two customers come together, we see a huge reduction in churn. And that's going to apply to a larger base as we expand our broadband offering mobile.

Speaker Change: Last one which is probably the biggest lever is going to be more mobile platform customers. When those two customers come together, we see huge reduction in churn and that's going to apply to a larger base as we expand our broadband offering movies.

Sowmyanarayan Sampath: The fourth is margin-ocritive add-on services, you know, in form of perks, in form of adjacent services. It's a continuous growth and it's being very innovative every time we do that. We are teaching the same approach we have to mobility to a broadband space. It first starts with momentum in sales. You saw that this quarter, strong momentum in sales on FIOS and FWA, similar tactics, similar promotions, but the construct is that same momentum we have in the same energy we bring to our broadband business as well. My home has been a very successful launch. A lot of our base tends to like the perks; they are taking on new customers. When they come on board, they take on perks, and they like their ability to share their perks between mobile and home.

Speaker Change: The fourth is margin accretive add on services.

Speaker Change: Pharma books in pharma I just in services, it's a continuous growth and it's being very innovative every time, we do that.

Speaker Change: We are taking the same approach we have to mobility to our broadband space. It first starts with momentum in sales you saw that this quarter strong momentum in sales and files and F. W. A similar tactics similar promotions, but the construct is that same momentum we have in the same energy they bring to our broadband business as well my home has been up.

Speaker Change: Very successful launch a lot of our base tends to like the Perps.

Speaker Change: On a new customers when they come onboard they take on quotes and they like the ability to share that books between mobile at home and also a sustained growth in our pool look when you build a long term sustainable subscription business like we've done you have to balance be in Q over a period of time I've spoken about this 80 20 contribution to service revenue because that's the big measure we measure it.

Sowmyanarayan Sampath: And also sustained growth in RPU. Look, when you build a long-term, sustainable subscription business like we've done, you have to balance P & Q. Over the period of time, I've spoken about this AD-20 contribution to service revenue, because that's the big measure we measure ourselves on: the service revenue. I think with a positive phone, net act, trajectory, strong FWA in FIOS performance, we are on track to get to that AD-20 mix over a period of time.

Speaker Change: Cell phone as service revenue.

Speaker Change: I think with a positive for net add trajectory strong FW and <unk> pharma.

Speaker Change: We are on track to get to that 80 20 mix over a period of time.

Sowmyanarayan Sampath: Now, we are in a very unique position. I think the only company, the only carrier, who has a scaled position in both FWA and in the FIOS business. Both these are top products. When you combine them together, you get access to 100 million homes and businesses in the country. No other carrier offers that amount of coverage and that we offer in terms of serving our customers.

Speaker Change: Now we are in a very unique position I think the only company the only carrier who has a scale position in both <unk> and in the fiber business.

Speaker Change: Both of these are top products when you combine them together you get access to 100 million homes and businesses in the country. No. Other carrier offers that amount of coverage and that we offer in terms of serving our customers, let's dig into each of these one by one the first is F. W. A GA spoke about moving from 60 million to 90 million.

Sowmyanarayan Sampath: Let's dig into each of these one by one. The first is FWA. Joe just spoke about moving from 60 million to 90 million homes and businesses covered, but what's interesting about the FW basis, it's a quality prime customer base. Our FIOS score on FWA is not of 700. So, it's a really strong customer base there does. And the reason is, it's a high-price value equation. There's a huge segment of the market who love that. And because of that, you see very high NPS scores. I mean, think about it. You could finish this; you could go to a store in five minutes, buy it, and 10 minutes after that, you could be in your apartment connected with the 5G Verizon FWA product.

Speaker Change: Homes and businesses covered but what's interesting about the FW basis, it's a quality drive customer base. Our FICO score on FW is north of 700. So it's a really strong customer base and the reason is it's a high price value equation. There's a huge segment of the market, who love that and because of that you see very high NPS.

Speaker Change: Cause I mean think about it you could finish this you could go to a store and five minute by it in 10 minutes off that you could be any apartment connected with the five G. Verizon FW product.

Sowmyanarayan Sampath: It's a huge competitive advantage. High NPS is a competitive advantage. Our pricing construct is a competitive advantage. We do not like promotions that roll off. You get a customer on one price point, and in two years you, the price changes. It's a noisy customer. And that's one of the reasons why it's a huge competitive advantage because we continue to lead with that.

Speaker Change: It's a huge competitive advantage high NPS as a competitive advantage a pricing construct as a competitive advantage, we do not like promotions that roll off you get a customer in one price point and in two years you the price changes it a nice customer and that's one of the reasons why it's a huge competitive advantage for us because we continue to lead with that.

Sowmyanarayan Sampath: And then you have FIOS. Joe spoke about 20 years. He's been working a little longer than 20 years in the FIOS business. Look, we are the OG FIOS players. Some people think it's a new thing. We've been in this thing for 20 plus years. And every year, we find that the new cohorts that we bring on have better penetration than some of our older cohorts, even. Because we get better. Joe gets better with the build. We get better with selling it, with targeting it, using digital to bear in those pieces to do that. But what's interesting is it's a wide-level experience.

Speaker Change: And then you have fiver.

Speaker Change: You spoke about 20 years, he's been working a little longer than 20 years in the fiber business, where the <unk> fiber players. Some people think it's a new thing we've been in this thing for 20 plus years and every year, we find that our core the new cohorts that we bring on have better penetration than some of our older cohorts, even because we get better Joe gets backed up with the build we get.

Speaker Change: Better with selling it with targeting it using digitally to bear in those pieces to do that but what's interesting is it's a white glove experience.

Sowmyanarayan Sampath: Very, very high NPS scores that we have. Very low-chance. And most of the majority of our customers who come in take a Dig Plus plan. Again, that's a competitive advantage, you know, around high NPS, high customer satisfaction.

Speaker Change: That is very high NPS scores that we have very low churn and most a majority of our customers have come in and take a gig plus plan again, that's a competitive advantage around high NPS high customer satisfaction, so or a period of time with 100 million premises covered we have a differentiated offering we have an offering that is steel.

Sowmyanarayan Sampath: So, over a period of time, with 100 million premises covered, we have a differentiated offering. We have an offering that is tiered. We have an offer that is segmented, FWA, and Fiber. And customers will choose. At the end of the day, we want customers to choose what's right for them.

Speaker Change: We have an offer that is segmented FW and fiber and customers will choose at the end of the day, we want customers to choose what's right for them and we're going to be very transparent on what the pricing is and what our value prop is to grow that.

Sowmyanarayan Sampath: Matt, and talking of value prop, I want to spend some time talking about the Verizon model of convergence. The Verizon model of Convergence is margin-occurative, it is revenue-occurative and has very attractive Royk. And at the end of the day, it is demand-led. I do not believe in giving away one product to sell the other, or giving away one product to hold on to the other. We think we have the best wireless network, we have the best broadband offering; customers want it, and they're willing to pay a very fair price for it. We do have some advantages for customer when they take both of those products together.

Speaker Change: And talking of value prop I want to spend some time talking about the Verizon model of convergence.

Speaker Change: The Verizon model of convergence is <unk>.

Speaker Change: Margin accretive it is revenue accretive and has very attractive ROIC.

Speaker Change: End of the day it is demand led.

Speaker Change: I do not believe in giving away one product to sell the other are giving us a one product to hold on to the other we think we have the best wireless network, we have the best broadband offering customers want it and they're willing to pay a very fair price for it we do have some advantages for a customer when they take both of those products together, but at the end of the day. It is demand led.

Sowmyanarayan Sampath: But at the end of the day, it is demand-led. The customer wants to buy the best from both of us to do that.

Speaker Change: The customer wants to buy the best from both of US to do that now let me talk a little bit about how this convergence comes to life. How convergence comes to light. The first one as you see on the page is my home and my plan.

Sowmyanarayan Sampath: Now, let me talk a little bit about how this Convergence comes to life, how Convergence comes to life. The first one, as you see on the page, is my home and my plan. We launch both, and it's not a coincidence that both the offerings look very similar. You buy a base connectivity, then you have access to these really unique perks. I mean, it's becoming a pretty big business for us, and customers can share perks across both those plans. The second is our app. My Verizon app, we have a single app now for mobility and home, so once you get a mobility customer, they see a home piece, and they can try out the home, and they can buy the home, and then vice versa to do that.

Speaker Change: We launched book and it's not a coincidence that bought the offerings look very similar you know your buyer base connectivity. Then you have access to these really unique books I mean, it's becoming a pretty big business for us and customers can shape books across the board those plans. The second is our app.

Speaker Change: My Verizon App, we have a single App now for both no fault mobility and home. So once you get them mobility customer they see a home piece and they can try out the home. They can buy the home and then vice versa to do that and also home Wi Fi can control everything in a single App and that does very well the third thing is transparent pricing.

Sowmyanarayan Sampath: And also home Wi-Fi can control everything in a single app, and it does very well. The third thing is transparent pricing. It is very clear to customers what their savings are, and we're going to keep innovating in this space. Because at the end of the day, customers want the best products, but they also want clear pricing upfront, and we do that every single time with our constructs that we have there. Fourth is distribution. We have a large distribution of stores and a digital footprint, and you can see over a period of time, we are able to distribute our files offering through our store network as well, and that's a huge upside to the business case.

Speaker Change: It is very clear to customers what their savings are and you got to keep innovating in this space.

Speaker Change: At the end of the customers want the best product, but they also want clear pricing upfront and we do that every single time with our contracts that we have.

Speaker Change: What is distribution, we have a large distribution of stores and our digital footprint and you can see over a period of time, we are able to distribute our files offering through our store network as well and that's a huge upside to the business case. So you'll see that we are building the Verizon model of convergence, which is demand led and it's accretive to us but witnessed.

Sowmyanarayan Sampath: So you see that we are building the Verizon model of convergence, which is demand-let, and it's creative to us.

Sowmyanarayan Sampath: But where does the value come for Verizon and shareholders? Two big buckets, Revenue. The first one is we will see penetration well, not a 40% in our business. And as I said, every new cohort that we bring in actually gets to that a little faster than the previous cohort. We do that space. And once we do that, once we acquire Frontier, and when we close on Frontier, we will have that as well. And then, as your builds out new networks, we will see similar penetration levels as we do that. The second is, in some of our big markets, where we have fiber, our wireless market share is 500 basis points of 5% better than if we don't have fiber.

Speaker Change: The value come for Verizon and shareholders two big buckets revenue. The first one is we will see penetration well north of 40% in our business and as I said every new cohort that we bring and actually get to that a little faster than the previous cohort, we do that space and once we do that once we acquire frontier and when we close on Friday, we will have.

Speaker Change: That as well and then as your build out new networks, we will see similar penetration levels as we do that the second is in some of our big markets, where we have fiber or wireless market share is 500 basis points or 5% better than if you don't have fiber. So we can cross sell mobility to frontier base when we close it.

Sowmyanarayan Sampath: So we can cross-sell mobility to our Frontier base when we close it to our new cohorts of fiber that are coming in. But also customers who have access to fiber, but don't have fiber today, we'll be able to cross-sell them.

Speaker Change: Two our new cohorts of fiber that are coming in but also customers who have access to fiber, but don't have five but today, we will be able to cross sell them so to revenue upside opportunity for us as we build out.

Sowmyanarayan Sampath: So two revenue offsides the opportunity for us as we build out our converged offering. The second is John, a couple of data points. We see a 50% reduction in mobility, John, when we bundle with fiber. And that's a huge lever for us, even broader longer term on how we take John down in space. The second is fiber, which is already world class, one of the best in the world, will go down another 40% when we bundle mobility in fiber. That's a very unique position for us, and we see John benefits on FWA as well. So what we are essentially building here is one of the world's best franchises for broadband, with FWA as well as with fiber, with best-in-class metrics.

Speaker Change: Converged offering the second as John.

Speaker Change: A couple of data points, we see a 50% reduction in mobility joined when we bundle with fiber.

And that's a huge lever for us even broader longer term on how we take churn down in space. The second is a fiber churn, which is already world class one of the best in the World will go down another 40% when we bundled mobility and fiber that's a very unique position for us and we see John benefits on <unk> as well so what we are essentially <unk>.

Speaker Change: Building here is one of the was best franchises for broadband with FW eight as well as with fiber with best in class metrics, but more importantly demand led and that's the Verizon model of convergence.

Sowmyanarayan Sampath: But more importantly, it's demand led, and that's the Verizon model of conversion. Chris, talking about demand-led, a lot of the reason it's demand-led actually comes from our unique value prop. Let me start with this. You know, the bottom of layer is our connectivity layer. Best network, Joe always says we will be the most reliable network. That's where our value comes from. It's the same network we have for broadband, for post-paid through my plan, and our prepaid value brands as well. And we keep tearing these. We have segments that go after that. And over a period of time, we'll have new sources of revenue.

Speaker Change: Talking about demand led lot of the reason its demand led actually comes from our unique value prop let me start with this.

Speaker Change: The bottom of layer is a connectivity layer best network, Joe always says we will be the most reliable network, that's where our value comes from it's the same network. We have for broadband for postpaid through my plant and prepaid value brands as well.

Speaker Change: We keep hearing these we have segments that go after it and over a period of time, we'll have new sources of revenue let me touch on two of these the first is Netflix lighting.

Sowmyanarayan Sampath: Let me touch on two of these. The first is network slicing. You know, it's a new currency. It's something that, you know, we should talk a little more about soon. And that will have upside opportunity for us. Second is satellite connectivity. That's another new form of connectivity. And then new ways to monetize our overall connectivity network. Then, on top of that, you get to our entertainment and adjacent services. We call them perks because you have to be a Verizon customer to get them. That's the perk you get for being a Verizon customer. And we right now have seven million perks, subscriptions on our network.

Speaker Change: It's a new currency, it's something that you should we should talk a little more about soon and that will have upside opportunity for us secondly satellite connectivity. That's another new form of connectivity and then new ways to monetize our overall connectivity network then on top of that you get to entertainment and adjacent services, we call them books because you've.

Speaker Change: Have to be a verizon customer to get them.

Speaker Change: If you get for being a Verizon customer and we right now have 7 million, perhaps gets coupons on our network and then guess what they're going to double by 2025. So we have a large revenue stream that customers find very compelling it reduces John for us and it's very margin rich for us. So it covers a lot of pieces.

Sowmyanarayan Sampath: And then guess what? They're going to double by 2025. So we have a large revenue stream that customers find very compelling. It reduces churn for us. And it's very margin-rich for us. So it covers a lot of pieces for us.

Speaker Change: For us we're not stopping still.

Sowmyanarayan Sampath: And we're not stopping still. You know, we're going to keep innovating. But to be on our network, to be part of our perks, it's going to have to be compelling. It's going to have to be exclusive to Verizon. And something our customers want. And they can save money with it. On top, we have our loyalty program. Verizon Access. Or, if you're a customer, it's just my access. Because it's your access. Because it gives you access to two things. One is always on deals with some of the best premium brands out there. But second is once in a lifetime; my kids call it bucket list type opportunities they have.

Speaker Change: Going to keep innovating, but to be on our network to be part of our books, it's going to have to be compelling it's going to have to be exclusive to Verizon and something our customers want and they can save money with it.

Speaker Change: On top we have our loyalty program Verizon access or if you are a customer. It's just my access because it's your access because it gives you access to two things one is always on deals with some of the best premium brands out there, but second is once in a lifetime.

Speaker Change: Kids call it bucket list type.

Speaker Change: Opportunities. They have for example, you can skydive with the Broncos are you can go to London to watch the <unk>.

Sowmyanarayan Sampath: You know, for example, you can skydive with the Bronco, or you can go to London to watch the, you know, the Jacksonville Jaguars. Or you can actually toss a coin, you know, for the opening game. These are once-in-a-lifetime events for NFL, NHL, NBA, and some of the best musical acts out there. I don't know if we get scored tickets for Taylor Swift, but definitely check in on the Verizon.

Speaker Change: Jacksonville Jaguars are and can actually thought the Cline and offer the opening game. These are once in a lifetime event for NFL NHL NBA and some of the best musical acts of their I don't know if can get scored tickets for Taylor Swift, but definitely check in on the Verizon My access flat to do that.

Sowmyanarayan Sampath: My access plan to do that.

Sowmyanarayan Sampath: As I wrap up, I want to leave you with two thoughts. The first is we at Verizon right now have two engines for growth. Two engines that have secular growth in front of them. Two engines that have tailwinds. And where we have a unique market position, but huge opportunity as well. You're going to see us do the Verizon model of convergence, which is demand led, which is give customers choice, give be transparent about pricing. And offer them a huge set of services on top of that. We're going to deepen our relationship with our customers and extract value for them and for ourselves in the process.

Speaker Change: As I wrap up I want to leave you with two thoughts there.

Speaker Change: The first is we at Verizon right now have two.

Speaker Change: Two engines for growth.

Two engines that have secular growth in front of them to engines that have failed wins and where we have unique market position, but huge opportunity as well.

Speaker Change: Youre going to see us do the Verizon model of convergence.

Speaker Change: Which is demand led which is give customers choice give the transplant about pricing and offer them a huge set of services on top of that we're going to deepen our relationship with our customers and extract value for them and for ourselves and the process. The second is <unk>.

Sowmyanarayan Sampath: The second is over the last seven quarters; you've seen our vision and execution on the business. You're going to give you a lot of confidence; you're going to get from that that we will execute on that for our mobility business, our broadband business, and the Verizon converge business.

Speaker Change: Over the last seven quarters, you've seen our vision and execution on the business.

Speaker Change: Youre going to give you a lot of confidence you're going to get from that that we will execute on that for our mobility business, our broadband business and the Verizon converged business with that I'm going to pass it over to Tony to talk about two things at <unk> update and more importantly capital allocation Tony take it away.

Tony Skiadas: With that, I'm going to pass it over to Tony to talk about two things: a three-Q update and, more importantly, capital allocation. Tony, take it away. Thanks, Sampath, and good morning. So, our execution, as Sampath said, is really strong, and it's fueling the momentum in our business.

Tony: Thank you.

Tony: Thanks, Sam and good morning.

So our execution a Champ has said is really strong and it's fueling the momentum in our business our third quarter results before we get into it I do want to talk about the third quarter our ability to demonstrate.

Tony Skiadas: Our third quarter results; you know, before we get into it, I do want to talk about the third quarter. Our ability to demonstrate customer growth and financial growth once again, is a hallmark to our testament of execution day in and day out. And we delivered the highest ever reported adjusted EBITDA in our quarter. We're on track, as Hans mentioned, with our 2024 guidance, and at or above the midpoint of our guided range for both wireless service revenue and adjusted EBITDA. If I go to the operational metrics from Ability, if you think about business and consumer, gross ad and churn both improved year over year, and that drove phone ad ads of 239,000 in the third quarter. That's a significant improvement year over year.

Tony: Demonstrate customer growth and financial growth. Once again is a hallmark to arc Testament of execution day in and day out and we delivered the highest ever reported adjusted EBITDA in a quarter. We're on track as Hans bathroom, with our 2020 for guidance and at or above the midpoint of our guided range for.

Tony: Both wireless service revenue and adjusted EBITDA.

Speaker Change: If I go to the operational metrics from ability if you think about business and consumer gross adds and churn both improved year over year and that drove phone net adds of 239000 in the third quarter, that's a significant improvement year over year and as Sam mentioned, we expect the consumer business.

Tony Skiadas: And as Sampath mentioned, we expect the consumer business to have positive post-paid phone ad ads for the full year, and that's with and without the second number offering. And that's in addition to the continued strength in phone ad ads from our business segment, and that's quarter after quarter of strong growth. If you think about broadband, we have almost 12 million subscribers in our base, and Fios and FWA are both growing. On broadband, we had 389,000 ads in the quarter; that's another strong quarter for us. And inside of that, if you think about FWA, we've grown our FWA subscriber base over 1.5 million in that time period.

Positive postpaid phone net adds for the full year, and that's with and without the second number offering.

Speaker Change: And that's in addition to the continued strength and phone net adds from our business segment and that quarter after quarter of <unk>.

Speaker Change: <unk> growth.

Speaker Change: If you think about broadband we have almost 12 million subscribers in our base and fires and SWA are both growing on.

Speaker Change: On broadband we had 389000 net adds in a quarter, that's another strong quarter for us.

Speaker Change: And inside of that if you think about FW as we've grown our FW subscriber base over $1.5 million in that time period and as you heard from the team today, there's much more opportunity for us to expand further.

Tony Skiadas: And, as you heard from the team today, there's much more opportunity for us to expand further.

Tony Skiadas: If we move to the financials, Hans talked about how we're measured: service revenue, EBITDA, and free cash flow. If I start with service revenue, our service revenue is very healthy. Our wireless service revenue is up 3.1% near-to-date or $1.8 billion. Our EBITDA continues to be strong, and even in a quarter where we delivered a very strong 12.5 billion of adjusted EBITDA, we took actions around revenue and cost efficiencies to set us up for 2025. That strong EBITDA led to free cash flow of 14.5 billion year-to-date, and that's consistent with the prior year. And that includes an increase of $2.5 billion in cash taxes.

Speaker Change: If we move to the financials I've talked about how we're measured service revenue EBITDA and free cash flow if I start with service revenue. Our service revenue is very healthy our wireless service revenue was up three 1% year to date or one $8 billion.

Speaker Change: Our EBITDA continues to be strong and even in a quarter, where we delivered a very strong 12 5 billion of adjusted EBITDA, We took actions around revenue and cost efficiencies to set us up for 2025.

Speaker Change: That strong EBITDA led to free cash flow of $14 5 billion year to date.

Speaker Change: And that's consistent with the prior year and that includes an increase of $2 $5 billion in cash taxes. The cash generation of the business continues to be very strong and we have ample flexibility and funding to execute on our capital allocation priorities.

Tony Skiadas: The cash generation of the business continues to be very strong, and we have ample flexibility and funding to execute on our capital allocation priorities. The business is performing well, and we have good momentum as we close 2024 and head into 2025.

Speaker Change: The business is performing well and we have good momentum as we close 2024 and head into 2025.

Tony Skiadas: And if I shift over to capital allocation, as many of you know, we have four capital allocation priorities, and they remain unchanged. Our first capital allocation priorities invest in the business, and that includes investments in our network infrastructure. If you think about CBAN, if you think about BIOS, it includes M&A to accelerate a strategy. If you think about depending acquisition of frontier. And it also includes being opportunistic with wireless spectrum, as evidenced by the deal we signed last week with U.S. Cellular. As we said before, we're back to BAU levels of capital spend, and we're on track with our 2024 capital program.

And if I shift over to capital allocation as many of you know we have four capital allocation priorities and they remain unchanged.

Speaker Change: Our first capital allocation priority is to invest in the business.

Speaker Change: And that includes investments in our network infrastructure. If you think about C. Band. If you think about bias. It includes M&A to accelerate our strategy. If you think about depending acquisition of frontier.

Speaker Change: And it also includes being opportunistic with wireless spectrum as evidenced by the deal we signed last week with U S. Cellular.

Speaker Change: As we said before we're back to be a new levels of capital spend and we're on track with our 2024 capital program.

Tony Skiadas: If we look ahead to 2025 in terms of guidance for 2025, we expect 2025 capital expenditures to be in a range of 17.5 to 18.5 billion for the next year. And that's an all-in number that includes all of our growth initiatives. So this includes C-band and the continuation of rolling out C-band. Joe talked about having 80% to 90% of our sites on C-band by the end of 2025. It includes our FIOS continued open for sale expansion, up to 650,000 new open for sale on FIOS. And it includes the broadband and the use solution, the multi dwelling solution that Joe mentioned.

Speaker Change: If we look ahead to 2025 in terms of guidance for 2025.

Speaker Change: We expect 2025 capital expenditures to be in a range of 17 five to $18 5 billion for the next year and that's an all in number that includes all of our growth initiatives.

Speaker Change: So that includes C band and the continuation of Rolling out C band, Joe talked about having 80% to 90% of our sites on C band by the end of 2025. It includes our files continued open for sale expansion up to 650000, new open for sale.

Speaker Change: On files.

Speaker Change: And it includes the broadband MDU solution that multi dwelling solution that Joe mentioned all of these things are included in.

Tony Skiadas: All of these things are included in that 17.5 to 18.5 number. And that range gives us the flexibility to both invest for growth and be disciplined and efficient with our capital spend.

Speaker Change: And that 17, and a half to 18 and a half number and that range gives us the flexibility to both invest for growth and be disciplined and efficient with our capital spend.

Tony Skiadas: Our second priority is our commitment to the dividend. And as you've seen recently, we've raised the dividend for the 18th consecutive year. That's an accomplishment we're extremely proud of. And as we said many times, our goal is to put the board of physicians for further dividend increases.

Speaker Change: Our second priority is our commitment to the dividend and as you've seen recently, we've raised the dividend for the 18th consecutive year.

Speaker Change: That's an accomplishment we're extremely proud of and as we said many times. Our goal is to put the board a position for further dividend increases.

Tony Skiadas: Our third capital allocation priorities having a strong balance sheet. We've made significant progress delivering the balance sheet since the acquisition of C-band. As of the end of the third quarter, our unsecured leverage stands at 2.50 times. That's the ratio of net unsecured debt to adjusted EBITDA. Our focus is to continue to pay down debt between now and the closing of the Frontier deal. And today we're announcing an update to our long-term leverage target of 2.0 to 2.25 times. Given our cash flows and overall financial strength, this is the appropriate range for a business to provide flexibility to invest for growth and return capital to shareholders.

Speaker Change: Our third capital allocation priority is having a strong balance sheet, we've made significant progress delevering the balance sheet since the acquisition of C band.

Speaker Change: As of the end of the third quarter, our unsecured leverage stands at 2.50 times that the ratio of net unsecured debt to adjusted EBITDA.

Speaker Change: Our focus is to continue to pay down debt between now and the closing of the frontier deal.

Speaker Change: And today, we're announcing an update to our long term leverage target of 2.0 to 2.25 times.

Speaker Change: Given our cash flows and overall financial strength. This is the appropriate range for our business to provide flexibility to invest for growth and return capital to shareholders.

Tony Skiadas: Our fourth capital allocation priority is share buybacks. And, as we said many times, we will consider share buybacks when our unsecured leverage metric reaches 2.25 times. And that target is unchanged. As we work towards that target, we continue to focus on generating strong cash flows and paying down debt. Our capital allocation strategy is disciplined and deliberate. And as you've seen from our track record, we'll continue to focus on operational execution and performance and deliver on our commitments.

Speaker Change: Our fourth capital allocation priority is share buybacks and as we've said many times, we will consider share buybacks, but our unsecured leverage metric reaches two and a quarter times and that target is unchanged as.

Speaker Change: As we work towards that target, we continue to focus on generating strong cash flows.

And paying down debt.

Speaker Change: Our capital allocation strategy is disciplined.

Speaker Change: And deliberate.

Speaker Change: And as you've seen from our track record will continue to focus on operational execution and performance and deliver on our commitments.

Tony Skiadas: We're excited about the opportunities we have ahead.

Speaker Change: We're excited about the opportunities we have ahead and with that I'll turn it back to Hans.

Hans Vestberg: And with that, I'll turn it back to Hans.

Hans Vestberg: Thank you, Tony.

Hans Bathroom: Thank you Tony.

Hans Bathroom: Let me summarize all this before we come to Q&A.

Hans Vestberg: Let me summarize up this before we come to Q&A. I think you hopefully got the feeling that we are setting us up well for 25 and beyond to continue the leadership in this market and extend it. So we talk about the networks that we're building. It should be the best and the best performing. I think that's been a focus. And really now, when we see ban coming quickly and our fire has been out, we feel really good about it. It's been important for us to focus the last couple of years on the D-Frain Shade in Valley proposition for our customers.

Hans Bathroom: I think you hopefully got the feeling that we are setting us up well for 25 and beyond to continue the leadership in this market and extend it so.

Hans Bathroom: We're talking about the networks that we're building it should be the best in the best performing I think that's been a focus and are really now in the C band coming quickly and our fiber build out.

Hans Bathroom: We feel really good about it.

Hans Bathroom: It's been important process focus the last couple of years on the differentiated value proposition for our customers. We know that the more important services than ever to have mobility and broadband is a necessity for every organization every person on this planet and in the United States with differentiated offerings and we are doing.

Hans Vestberg: We know that they're more important services than ever, so I haven't been able to build it in broadband. It's a necessity for every organization, every person on this planet, and in the United States. The D-Frain Shade and offerings that we're doing are enormously important, and they come from deep research, what our customer really wants. And, of course, together with a refreshed brand, should support us for the continuation. Tony talked about our capital education, and you'll see not to be very proven by the capital education. We promised to come down to BAU levels; we're on BAU levels.

Hans Bathroom: Or enormous importance and they come from deep research, what our customer really wants and of course together with a refreshed brand should support us fully continuation.

Speaker Change: Tony talked about capital allocation and you have seen us be very prudent capital allocation.

Speaker Change: Promise to come down to be a U levels, where MBA you levels. We had the high co authors C band because we saw a grateful that you wanted to quickly come out went up.

Hans Vestberg: We had the high-corporancy band, because we saw a great opportunity to quickly come out with that, and that's where we're coming down. We're now doing investment to expand our total investment market. With the same offering, the same network. That's a strategy we have. We stay there, and we see that we can continue to grow well and continue to create profitability and cash flow. So that's the overall strategy. And we are measuring three things. The wire service revenue, the adjusting the beta and the cash flow. And we are very committed to holding team here to continue to grow the service revenue, and expand the EBITDA and cash flow.

Speaker Change: And that were coming down we're now doing investment to expand our total addressable market with the same offering the same network that that distracted where have we stay there and we see that we can continue to grow well and continue to create profitability and cash flow.

That's the overall strategy and we are measured on three things the wireless service revenue.

Speaker Change: Adjusted EBITDA and the cash flow and we are very committed and the whole team here to continue to grow the service revenue and expand the EBITDA and cash flow going into 'twenty, five and onwards with the investments we're doing right now and where we stand with our strategy, where we stand with our assets with them with our offering so.

Hans Vestberg: We're going into 25 and onwards with the investments we're doing right now. And we're with Stan with our strategy; we're with Stan with our offering. So all in all, we feel very positive where we're all right now. We feel positive where the market is and our products.

Speaker Change: All in all.

Speaker Change: We feel very positive where we all right now, we've been possibly where marketplace and our products.

Brady Connor: By that, I want to close, and we're going to have an open Q&A. Brady will help us to manage that. I have my whole management team here, and we even have a picture of them. If you don't know who they are, they're sitting to the left here for the ones on the webcast. You can see them here. So they are all here. So I'm going to diligently distribute the answers to them. Probably I'm going to take some myself. Any questions? You might have for us. Rating on it, do it. Remember, present yourself when you're going to answer.

Speaker Change: By that I am going to close and we're going to have the open Q&A Brady will help us to manage that I have my whole management team here and we even have a picture of some of them. If you don't know who they are they're shifting to the left here for nuance on the webcast you can see them here. So they are all here so.

Speaker Change: Diligently distribute with the answers to them are probably going to take some myself.

Speaker Change: Questions you might have for us.

Speaker Change: Riding on it and do it I remember present yourself when you're going to answer so webcast audience know who's asking any question okay.

Simon Flannery: So that webcast audience knows who's asking any questions. Okay. So I love the folks in the front row, but we're going to go back right to start with Simon. And again, just please announce your name and for ever since we're not on the camera. Great. Thanks very much. Simon, finally, Morgan Stanley. Hans, I was interested in your latest thoughts on the bead program. You're clearly leaning into broadband. We're starting to see some of the states open up their processes. So how do you think about that? As an opportunity beyond this? And then the other question will be around these markets like the Northeast, where you have fixed wireless and fiber.

Brady: Okay. So I love the folks in the front row, but we're gonna go back right to start with Simon.

Speaker Change: And again, just please announce your name and firm it since we're not on the camera great. Thanks, very much Simon Flannery of Morgan Stanley.

Simon Flannery: I was interested in your latest thoughts on the bead program Youre clearly leaning into broadband we're starting to see some of the states open up their processes. So how do you think about that.

Simon Flannery: As an opportunity beyond this and then the other question would be around these markets like the northeast, where you have fixed wireless and fiber how would you start to bifurcate that opportunity.

Simon Flannery: How do you start to buy for kit that opportunity? Because I'm thinking in the past, if you had fiber, you hadn't really don't fix wireless, but does that start to blend the blade?

Simon Flannery: In the past you. If you had five or you haven't really don't fixed wireless, but does not start to blend.

Hans Vestberg: I'm going to take some help from Joel later on, but I'm going to start myself first. The bead program is, of course, contemplating and everything we have here. In the fire's footprint, it's obvious we will go for it when it makes sense for us. Both from a return on investment. And so we, in our fires footprint, this is going to be a great opportunity for us, for sure. And we will be active on it. On the second one, when it comes to fiber or fires versus fixed wireless access. I think I hope that you heard from Joel.

Speaker Change: I'm going to take some help from Joel later on but I'm going to start myself first the beam program is of course to contemplate that and everything we have here in the fires footprint is all viewers will go for it when it makes sense for us both from a return on investment and so.

Speaker Change: So we in our fiber footprint theres going to be grateful bitumen as possible for sure and we will be active on it.

Speaker Change: On the second one when it comes to fiber or Fi ores versus fixed wireless access I think I hope that you heard from Joe our scrap duty on fixed wireless access is a secondary business case on mobility. So we first of all we deploy our C band for mobility and the agreement.

Hans Vestberg: Our strategy on fixed wireless access is a second their business case on mobility. So we, first of all, deploy our C-band for mobility. And the agreement that Joel and I have in the whole team is that we build mobility for two reasons. Revenue and relation as well as customer satisfaction. And then we get the second, their fixed wireless access opportunity. So it's not really thinking about where we do fire or what we do Fixed Wireless Access. We do fires, and we do mobility. Then we create opportunities. And I always love what we are doing because we give optionality to our customers.

Speaker Change: Joe and I have and the whole team is that we build mobility for two reasons revenue generation as well as customer satisfaction.

Speaker Change: And then we get the secondary fixed wireless access opportunity. So it's not really thinking about when we do file or something we would do fixed wireless access we do files and we do and we do mobility than we create opportunities in and I always loves what we are doing because we give optionality for our customers don't customers.

Joseph Russo: Our customers are just keen to get fires. But there's others that really feel that fixed wireless access is a solution they want to have because of simplicity. So we are going to create optionality. And you saw the consumers lie that a sample show with a customer offering framework, I think it's called, where actually everything is in the same mode that regardless when to take. So that's how we think about. Do you want to add something?

Speaker Change: Cadence to get files, but theres, others that really feel the fixed wireless access is the solution. They want to have because of simplicity. So we're going to create optionality and you saw the consumer side that are some bunch of where the customer offering framework I think it's called.

Speaker Change: We're actually everything is the same model regardless of what it takes so that's how we're thinking what do you want to add something yes, he wants to add something.

Joseph Russo: Yes, you want to add something. Please come up here. Yeah, just on bead. So we've built a very good process for managing subsidies. And we've been already receiving and winning subsidies in our files footprint. So as bead starts to get deployed, we'll deploy those same kind of standards and processes to participate. When I think about the 35 to 40 million, it'll be a very, very small percent that we think is bead. And we, you know, foresee that getting 35 to 40 million will be with or without bead funding. Yeah. Thank you. Okay, we're going to work our way up.

Speaker Change: Please come up here okay.

Speaker Change: Yes, just on beef. So we've built a very good process for managing subsidies and we've been already receiving and winning subsidies in our files footprint.

Speaker Change: So as bead starts to get deployed.

We'll deploy those same kind of standards and processes to participate.

When I think about the $35 million to $40 million.

Speaker Change: It'll be a very very small percent that we think is bead.

Speaker Change: And we foresee that getting $35 million to $40 million will be with or without b need funding.

Thank you next.

Speaker Change: We're going to work our way up I'm going to go second row will go public on the hand over here.

Unknown Executive: I'm going to go second row. We'll go Hudlick on the end over here. Thank you, I didn't think you'd see me behind these tall guys.

Speaker Change: Thank you had into huge CB behind these tall guys.

First starting with fixed wireless thank you guys for the new targets.

Unknown Executive: First, starting with Fix Wireless. Thank you guys for the new targets. You know, just on the quick math, it seems like the cadence is slowing a bit. You guys are doing like 360, 360,000 a quarter. It looks like it that slows to just sort of doing it radibly to under 300,000. I just want to make sure if that's sort of what we should do. We should expect to see if there's something different in the numbers. And then, you know, these new initiatives are great. You guys did 1.7% service revenue growth this quarter. Obviously, you don't want to give 25 guidance full guidance here, but should we expect an acceleration in service revenue growth from the issues?

Speaker Change: Just on the quick math it seems like the cadence is slowing a bit you guys are doing like 360 sooner and 60000 a quarter. It looks like it that slows. This just sort of doing it ratably to under 300000 I just want to make sure. If that's sort of what we should expect to see or if there's something different in the numbers and then.

Speaker Change: These new initiatives are great you guys did 1.7% service revenue growth. This quarter. Obviously, you don't want to get 25 guidance full guidance here, but should we expect an acceleration in service revenue growth from these niches on the future guidance I want to leave that to Tony.

Hans Vestberg: On the future guidance, I'm going to leave that to Tony. On the first question, I'm going to start. I think you, to some extent, you're right. So think about this. We have had a target to create and get between 350,000 to 400,000 new growth. I haven't been subscribed to every quarter. And I think we've had that from not sure how many quarters. Sometimes up to 400, sometimes a little bit north of 350. What is happening right now is two things. First of all, the Fix Wireless access is going into it in a second sort of transformation because the seed ban is not going to suburb and rural.

Speaker Change: On the first question I'm going to start I think to some extent Joe right. So think about this we haven't had a target to create and get between 350 to 400000, new broadband subscribers every quarter and I think we've had that but I'm not sure how many quarters, sometimes off this for hundreds and sometimes a little bit north of 350, what is happening right now.

Speaker Change: Two things first of all the fixed wireless access is going into it in a second social transformation because the C band is not going to suburban rural and of course, there are opportunities equally big but the density is way less so are we going to see for a while it is going to be a little bit less.

Hans Vestberg: And of course, the opportunity is equally big, but the density is way less. So we're going to see for a while that all of this is going to be a little bit less. And the second one is, as we're ramping up the files, you saw that we're doing some 450 to 500 with the 650. It's a ramp up. So, in the short term, I think you're going to be in the lower end of the 350. And then I think when you see the ramping up of both of them, you're going to see a little bit different.

Speaker Change: Second one is as we're ramping up the files you saw that we're doing some $4 50 to 506, if there is a ramp up so in the short term I think youre going to be in the lower end of the 350, and then I think when you see the ramping up of both of them you're going to see a little bit different. So I wouldn't say that we have changed anything over on the pace it used to.

Tony Skiadas: So I wouldn't say that we have changed anything over on the pace. It's just a technicality of how we build right now and how we ramping up files and actually going suburb and rural with our seed ban. So those sort of things.

Speaker Change: <unk> taken a calathea all how it builds right now and how we're ramping up vials and actually going suburb in the room with our C band. So those sort of things Tony do you want to talk about guidance 25, now you're so great.

Tony Skiadas: Tony, if you want to talk about guidance, 25 now? Sure. Good, great. I'm eager to hear. Hey, John. Thanks for the question. So, as we said this morning, we're on track with our service revenue. We said we'd be at or above the midpoint on service revenue. If we think about next year, I'm not going to guide on 25 right now. But in terms of puts and takes, we've taken a lot of actions to position ourselves for sustained growth. So this includes the P and Q that you heard from San Pat. So volume improvement in pricing, and it also includes fixed wireless access.

Speaker Change: Eager to hear John Thanks for the question. So as we said this morning, we're on track with our service revenue and we said we'd be at or above the mid point on service revenue. If we think about next year I'm not going to guide on twenty-five right now, but in terms of puts and takes we've taken a lot of actions to position ourselves for sustained growth. So that includes the pea in Q that you heard from sand Paso volume improvements.

Speaker Change: And pricing and it also includes fixed wireless access and you see the great growth that we've seen up fixed wireless access prepaid has now stand Pat mentioned turned positive. So that's been a headwind. This year, we would expect that to start to turn next year, we're still facing headwinds with promo amortization. So those are the puts and takes as we head into next year and we'll bring it back in January alright, thanks, guys.

Tony Skiadas: And you see the great growth that we've seen on fixed wireless access prepaid has now, San Pat mentioned, turned positive. So that's been a headwind this year. We would expect that to start to turn next year. We're still facing headwinds with program harmonization. So those are the puts and takes as we head into next year.

Tony Skiadas: We'll bring it back to in January. That's right. Thanks. All right.

Speaker Change: Yeah.

Speaker Change: We're working our way up to the front row, we're going to go we'll go Barton here on the in the first half person.

Frank Louthan: We're working our way up to the front row. We're going to go. We'll go barding here on the end. The first tall person. You don't have to sound so excited about that, Brady. It's a burden from Bank America. Thanks, Hans. So if my base case is that the tax regime remains the same. Cash taxes are going up. CapEx is going up. Working capital, if the iPhone becomes a bigger thing, it's not going down. Might go up. Local assumptions here continue. No, those are so much assumptions. And then then you're going to do the frontier deal.

Speaker Change: You don't have to stand so excited about that.

Speaker Change: Dave Barden from Bank of America. Thanks, Hans.

Dave Barden: So if my base case is that the tax regime remains the same cash.

Dave Barden: Cash taxes are going up.

Capex is going up.

Dave Barden: Our working capital if the iPhone becomes a bigger thing, it's not going down might go up.

Speaker Change: A lot of assumptions here continue.

Speaker Change: Which assumptions and then.

Speaker Change: Do the frontier deal.

Frank Louthan: and their not free cash will positive.

Speaker Change: And they're not free cash flow positive so is the message financially.

Frank Louthan: So, is the message financially to you and Tony that 2024 is the high watermark for free cash flow, it Verizon, because it doesn't seem like there's a lot of dials to turn to kind of make it get a lot better.

Speaker Change: To you Tony.

Speaker Change: 24 is the high watermark for free cash flow at Verizon because it doesn't seem like there's a lot of dials to turn to kind of make it get a lot better.

Hans Vestberg: And the second question, if I could, would be, there's some agitators at Frontier that want you guys to pay a higher price, bit against your cells in that process. And you spoke a lot about how important it is to have this hundred million homes passed in the Verizon version of convergence. What are you willing to always find headwinds? We have a lot of oil tailwinds as well in cash flow, and we will be very focused on that. So, well, I will let Tony go through the puts and take some of that. On the frontier deal, I'm a first of all, if you have read the props in which a problem I've done, it was a competitive process who were after a better and final, we gave the best and final.

Speaker Change: And the second question, if I could would be theres, some agitators and frontier.

Speaker Change: That wont.

Want you guys to pay a higher price bid against yourselves.

Speaker Change: In that process.

Speaker Change: And.

Speaker Change: And you spoke a lot about how important it is to have this 100 million homes passed in the Verizon version of convergence.

Speaker Change: What are you willing to do to get that deal done.

Okay I'll leave that kept on occasion with you, but I think that of course, you can always find hand, the wins, we have a lot of tailwind as well in cash flow and we've been very focused on that so I will let Tony will go through the puts and takes on that on the frontier deal first of all.

Speaker Change: If you read the proxy, which a problem down at.

Speaker Change: It was a competitive process, we were asked for a best and final we gave him the best and find them.

Hans Vestberg: We have a signed agreement and a contract for a merger, nice up the frontiers, share all this making note. We always have different types of strategies. We would continue to have that. This fits it in well right now. We're going to see what's going to happen, but we feel really confident that this is a despair and good for all stakeholders.

Speaker Change: We have a signed agreement and a contract for a merger nice off the volunteers.

Speaker Change: All this will make the vote.

Speaker Change: We always have different type of strategies. We will continue to have that these are fit anywhere right now are.

Speaker Change: We're going to see what's going to happen, but we feel really confident that this is a.

Speaker Change: Is fair and good for all stakeholders Tony.

Tony Skiadas: Tony. It did.

Speaker Change: Tony.

Hey, Dave So we're not going to guide on free cash flow, but a few things I mean, the same puts and takes that we shared at the beginning of the year still remain intact. So see the EBIT growth and that's the focus for next year interest you know in terms of deleveraging will have to see where rates go.

Tony Skiadas: So, we're not going to guide on free cash flow, but a few things. I mean, you know, the same puts and takes that we share at the beginning of the year still remain intact. So, you see the EBITDA growth, and that's the focus for next year. Interest, you know, in terms of the leveraging, we'll have to see where rates go. That'll have an impact. And then cash taxes, as you mentioned, they're up this year. We'll have to see what happens on the legislative front. They're going to be up, you know, we said two and a half billion so far this year.

Speaker Change: That'll have a that impact and then cash taxes as you mentioned they are up this year, we'll have to see what happens on the legislative front, we're going to be up we said $2 5 billion. So far this year, we will see where that goes in working capital were not seeing a big upgrade cycle right now the upgrades were down 10% right now and customers are choosing to hang onto their phones, a lot longer and that's by.

Tony Skiadas: We'll see where that goes. And, you know, working capital, we're not seeing a big upgrade cycle right now. The upgrades are down 10 percent. Right now, customers are choosing to hang on to their phones a lot longer, and that's by choice. The average upgrade rate in sandpads can correct me, but it's probably 40 months or so. So, that has been changed. So, we're going to continue to stay disciplined and segmented in our approach.

Speaker Change: Choice the average upgrade rate and stand path can correct me, but it's probably 40 months or so so that hasn't changed so we're going to continue to stay disciplined and segmented in our approach and that will come back on our thoughts on cash flow back in the in January.

Tony Skiadas: And then we'll come back on our thoughts and cash flow back in January. Thanks. Thank you.

Speaker Change: Thank you next I'm going front row over here to Peter next.

Peter Supino: Next, I'm going front roll over here to Peter next. Hi, thanks, Brady. Thanks, Hans. Peter Sapino with Wolf Research, question on fiber. And really about the rate of expansion, your target plus a lot of other publicly available targets. And I guess you've been about how many private fiber pastings that are in the country summed over 100 million homes. Population density observations; nobody has information. Leaders to think that maybe you should be in a hurry to build as many homes as you can. And yet, your current velocity of expansion is still much slower than others: a couple of other companies.

Pete: Thanks Pete.

Speaker Change: Peter Zaffino with Wolfe research question on fiber.

Peter Zaffino: And really about the rate of expansion.

Peter Zaffino: Your target plus a lot of other publicly available targets.

Peter Zaffino: And I guess, two and about how many private fiber passing as there are in the country.

Speaker Change: Summed over 100 million homes.

Speaker Change: Population density observations nobody is perfect information.

Lead us to think that maybe you should be in a hurry to build as many homes as you can.

Speaker Change: And yet your current velocity of expansion is still much slower than others. A couple of other companies wondering how you think about the speed at which you want to pursue the targets that you laid out here today. Thanks. Thank you I think he must broadband.

Hans Vestberg: Wondering how you think about the speed at which you want to pursue the targets that you laid out here today. Thanks. Thank you. I think about broadband. That's the thinking I have, and the team has that as well. That means that we include both or files as well as the fixed rights access as broadband solutions. And as you've seen lately, we're doing well, both of them. And that's how we think about our customers, and we create optionality. So I think that nobody else is building on a pace that we are doing in the combination of it.

Speaker Change: That's the thinking I have and the team has done this well that means that we include both or files as well as the fixed wireless access as broadband solutions and as you have seen lately.

Speaker Change: Doing well both of them and that's how we're thinking about our customers and we create optionality. So I think that nobody else is building on the pace that we are doing in the combination of that.

Hans Vestberg: That's how we're thinking. And remember, we build a network once, and then at the edge of the network, we decide what type of file is something. It's fixed-wise access. And then we get the best return on investment on the investment capital because we do it once. So that's the thinking we have, and that's how we serve our customers. So I feel good about the pace we have and how we're deploying this again with a financial mind behind it to see that we get the best return on an investment for our shareholders. On the first one, I assume my team always wants to beat the targets.

Speaker Change: How are we thinking and remember we build a network once and then at the edge of the network, we decided what type of connections we have sometimes vials sometime its 40, sometimes five days something is fixed wireless access and then we get the best return on investment on the invested capital because we will do it wrong. So that's the thinking we'll have and that's how we serve our customers. So I feel.

Speaker Change: Good about the pace we have.

Speaker Change: How we're deploying this again.

Speaker Change: Financial mind in behind it you'll see it doesn't get the best return on investment for our shareholders.

Speaker Change: Anybody want to add something to that Okay. Then you don't need to.

Speaker Change: To come back in the middle of the room here, we'll do a gym and then sebastiano.

Speaker Change: Thanks, Jim Schneider Goldman Sachs. Just a couple of quick questions on the network side. If I could first is on just in terms of longer term of fixed wireless targets do those sort of include or not include any dedicated spin.

Speaker Change: Spending purely for fixed wireless and you said its mobility led but it doesn't include any of that and talk about the part of that which is small cells. If any and then maybe tactically for 2025 can you maybe talk about the drivers of the Capex increase how much of that increase is coming on the wireless side on macro cells, how much of that is coming from <unk>.

Labor et cetera.

Speaker Change: First question is no. There's no success based fixed wireless access in the plan that we're presenting today.

Speaker Change: That's an optionality for the future right now again, we believe in our design principles.

Speaker Change: That makes the operation easier it makes it easy for a customer it makes it better for our captain that doesn't exclude it in the future that we will have success based fixed wireless access.

And then of course I'm sure that you're always building more capacity, so Kyle and Sam.

Speaker Change: And but it has an opportunity to leverage on that but in this plan. Its mobility first in all Arsema. The second question is about.

Speaker Change: The increase or there'd be a new level you have right now how much is macro you heard about what we said we were trying to go to 80% to 90% of our plan radios, having C band and then you'll see the fires up to 650 I think those are two important one there are other things coming down to some extent in abnormal because web.

Speaker Change: Hum pretty far on the Ford E. We see much more traffic when the five D.

We have gone very far on our small cell with millimeter wave that is capturing a lot of traffic in dense areas. That's a little bit smaller today that doesn't mean, we don't believe in it. We think is super important. So I think those are the puts and takes into capex.

Speaker Change: I'll just add on small cells and I mentioned it during but we started probably about six months ago now deploying C band on small cells and have seen really good success with putting that technology on our vast small cell network, giving us more coverage.

Speaker Change: And certainly more capacity for both mobile and fixed wireless access. So my view is that will continue in this four year build program.

Speaker Change: We'll leverage what we've done both with our millimeter wave small cells and we had a pretty significant small cell network even for the forging network.

Speaker Change: Leveraging now see ban on those is really proven to be a great tool to add coverage and capacity and one other thing that is increasing which he mentioned was of course the MDU solution. We have now for fixed wireless access using millimeter wave we.

Speaker Change: We have talked about it we're going to put that in commercial use in next year. So that's of course also an opportunity but of course really great great return on investment.

Speaker Change: Okay.

Speaker Change: And then we'll go up here front rotary Greg.

Speaker Change: Yeah.

Speaker Change: Hi, Sebastiana Petty JP Morgan I guess, just following up on Jim and kind of Dave's question as well, but help us think about the shape of capex over the next several years because of 17 and a half on a standalone basis against 17 five to $18 5 billion includes the MD use the ultra wideband build as well as the 650 is a range between 70 and alternate and half yes.

Yes, so within that range is there any maybe perhaps milestones or things like that that are more elevated next year that they begin to peel off like the MDU or the ultra wideband build should we think about it as being more steady state over the next several years as I said I think that this is a b U level that we have in a steady state I'm not going to guide for future years.

Speaker Change: I always said that if we see an opportunity where we can grow faster and we can invest more in case, because we will explain that to if we go outside the normal.

Speaker Change: Others.

Speaker Change: Right now we don't see that remember we have talked about theres no auctions with spectrum coming out at the moment, usually that is triggering or a new we don't even think sixties annual of the plan of records. We have right now so there's a lot of things that usually catapult the higher investment level, we don't see them right. Now. So b are you at this level, we are right now 17th.

Speaker Change: And then off operating and all that that's the way we're going to spend it but ultimately if we see opportunities remember the capital allocation priorities.

Speaker Change: Pending the misses, but who also want to explain that as something Additionally, we can get and that we can share with the shareholders, but right now the Mia you levels or what you see from US right now the big triggering events that you sometimes have it's when it come five he was going to go over the spectrum auction.

Speaker Change: I don't have visibility on anything on that at the moment. Okay. Thank you and then maybe one for Sam path.

Speaker Change: I mean, what underlies the confidence as we kind of think about the 80 20 service revenue growth and the sustainability.

Speaker Change: I guess the volume side of the equation as you kind of think about maybe tougher comps on the gross outside.

Speaker Change: IP dynamics.

Help us maybe think about the levers of sustained consumer volumes. Yeah look I think it comes back we've had seven quarters of strong growth side year on year growth coming into this and all the efforts that we've put in whether it's local marketing going back to market structure sales incentive my plan and just better execution.

Speaker Change: On the ground, we will continue to see gross had improvement in our business going forward.

So I think that a machine that we've gotten back to the right phase and Youre going to see continued growth in the second comes down to John you know as I mentioned, there's nothing structurally that prevents us from getting back to leadership position on customer retention and John.

Speaker Change: We made some salt shotguns strategic tradeoffs, which are the right things to do but over a period of time, Sean will start coming down mobile plus home offerings converged offerings is probably the biggest lever that we have that but then my plan some of our loyalty programs and then just better execution on the churn piece as well so you're going to see both things coming and continued progression on.

Speaker Change: Gross add momentum and then better to you and when you put both of them together, that's how we're going to sustain a net add growth over a period of time to do that the second is on the price side. If we've had four or five price increases depending on how you count it over the last year and in every case. The journey has been left them less than what we thought coming in so customers like our product they like our offering.

Speaker Change: And youre going to see continued ways in which we can earn the trust of the customer the last one is that it.

Speaker Change: Another type of price increase which is earned price increase if you look at the chart that I had the customer offering framework, we aren't able to upsell our customers upsell them on the type of plan, but also upsell them on books and other things we have 7 million books in our business right now that's going to double this time next year, so youre going to see a lot of momentum on the price side just by ability.

Speaker Change: Two on those price ups that we have so a combination of gross ads better churn and also ability to upsell our customers both on connectivity and some of the other offerings that we have when you put all of that and I get really comfortable about the 80 20 framework that we laid out that we are going to on a glide path to get there great. Thank you.

Speaker Change: Yeah, We're gonna go Greg in the front row over here and then we'll start mixing around.

Speaker Change: Sure. Thanks.

Speaker Change: Another capex question, but more situated on the b to B opportunity.

Speaker Change: One of your peers has been putting out a few press releases on Gen AI fiber.

Speaker Change: And you have a lot of fiber both in footprint and from the one fiber build in your own XO acquisition. So I'm just curious on your latest thinking is on the economics and the opportunities there. Thank.

Speaker Change: They're going to ask Kai to comment on that if we talk about the gen AI opportunities.

Speaker Change: Talked about a three pronged gen AI threat that it will have we have employee experience improvements.

Speaker Change: Right now already in the market when it comes to a call agents et cetera, we have our personalization of our customers and then we have a revenue opportunity and as I alluded to given the assets we have in our <unk>.

Speaker Change: In our network, we see great opportunities for having a chance to earn business, there, which we're already Don Mcneeley, Kyle you can talk a little bit more about it.

Speaker Change: As you as you rightly bring up the investments we've made before and say one fiber all the other fiber all the Ceos and everything we've done where we're kind of re imagining those assets right. Now is how do we and how we can sell into this and I actually right now we're already selling into it were getting a lot of good.

Speaker Change: Orders from Hyperscale or was either on dark fiber or lift and.

Speaker Change: And we can we're going to see that growing but we have more than that not just the fiber is the power space and cooling, which you know is in.

Speaker Change: Really high demand and we have a lot of Leighton.

Speaker Change: Assets in that area. So at the moment, we're putting it together, we're kind of talked to somebody before we're going to measure twice and cut once we're not we're figuring out exactly how we're going to go into this market. It's a huge market. We can't cover it all but there are certain segments, we might be better off than others and that will be back to you pretty soon talk to you about it it's a great opportunity for us.

Speaker Change: Got it thanks.

Speaker Change: Okay, we're going to go we're going to go over here you go Brandon and then microns.

Speaker Change: Thanks, Brandon <unk> with Keybanc I was hoping you could maybe unpack the fixed wireless targets in the homes passed from from a perspective of maybe a proportion of MD used for single family tier one tier two tier three markets and percentage of millimeter wave or C band.

Speaker Change: That's the one packing in that one.

Speaker Change: I'm not sure you want to do with it or something but of course, we as I said before the C band deployment go through a suburban or rural and because we're starting it in urban areas, because that's where we got the spectrum first.

Speaker Change: That's another opportunity is a great opportunity with less intensity. So I think that that's one thing that's happened in the MDU is just adding to coming back to some other places when dense areas, where we can do them new solutions. So I think it's a combination of the mall I'm not sure. It's a special distribution or something if somebody wants to it.

When you deploy our technology from a mobility point of view and then we get all the opportunities around it again, there's no succession based sort of.

Speaker Change: Our capex here for fixed wireless access comes along with everything else, we're doing but again, it's a great investment mobility is performing that there when we have C band both from churn them from step ups and then we fixed wireless access so it makes it one of the sands for Austin deployed in the right way, we refined our revenue and that's when you're always doing anything else you want to add.

Speaker Change: Sure Okay.

Speaker Change: I understand the question, but you know.

Speaker Change: This is sort of we have the framework in a plane plan of record how are we deploying it and it comes along with that and then both Kyle and sand Pat.

Speaker Change: Our selling into those.

Speaker Change: Open for sale that is coming out from under them to use or from the.

Speaker Change: C band deployment.

Speaker Change: Thanks, Mike Rollins from Citi wanted to follow up on this question, but maybe in a different way. So the mobility first just can you take ultra wide band to 80% to 90% of population and presumably households.

Speaker Change: But end of next year and May be 90, plus percent overtime, but the FWS target is roughly like 60% of homes what holds that percentage back.

Speaker Change: Relative to the 90, plus and what would be the catalyst to try to unlock that additional 30 points of penetration and then just a second question. If I could when you look at building fiber and the team mentioned some of the progress in building and dynamics, what's the base case for penetration.

Speaker Change: <unk> and <unk> from the fiber builds let's say over a five year period.

Speaker Change: On the first one I assumed my team always wants to beat the targets. We gave you want oriented team is working to really beat them do it better and faster you saw what we did last time, we said $4 million to $5 million, we beat that target when 15 months. So I think the team and are building ahead, so but right now that's a target is always a time.

Sowmyanarayan Sampath: We give you one target; the team is working to really beat and do it better and faster. You saw what we did last time. We said 4 to 5 million. We beat that target with 15 months. So I think the team and are building ahead. So, but right now, that's a target. It's always a time lag from when you deploy the technology and when you get the revenue and the subscribers.

Speaker Change: Now from when you deploy the technology and when you get the revenue and the subscribers I guess those answer your questions.

Sowmyanarayan Sampath: I guess those are two questions. On the second question, Sampath, I think you can answer on that. So you can answer on the first one if you want to correct me. No, I will not do that today. Look on the second way you think about first is penetration. You know, just been in this business for 20 years. We see penetration well, not of 40% in our space as we do that space. I think now we get more comfort because we'll have more mobility to bear into that space as well. So well, not of 40% penetration.

Speaker Change: Second question, Sam, but I think you can answer that so he can answer on the first one if you want to correct me no.

Speaker Change: Okay.

Speaker Change: On the second the way you think about first is penetration.

Just had been in this business for 20 years, we will see penetration well north of 40% in our space as we do that space I think now we get more comfort because you'll have more mobility to bear into that space as well, so well not a 40% penetration will do that but the second thing we are seeing it every new cohort actually bringing to the market tends to have.

Sowmyanarayan Sampath: We do that. But the second thing we are seeing is every new cohort that we bring in to the market tends to have better one-year penetration than the previous cohort. So it gives us more confidence that, and you would think, you know, when we get to the end of our build, we are getting to the less attractive. But that's not the case. Our first year penetration is actually better this year than it was last year and other. Some has to do with the way we market and the way Joe and my team work together to presel some of the capacity to do that.

Speaker Change: A better one year penetration than the previous cohort. So it gives us more confidence that you would think you know when we get to the end of a build there of getting to the less attractive, but that's not the case a first your penetration is actually better this year than was locked in some has to do with the way the market and the way join my team worked together to presell some of that capacity to do that in terms of Aqua I know, we don't report.

Sowmyanarayan Sampath: In terms of our point, we don't report a specific broadband; our number. But look, we tend to do very well. We are industry leading. If you look at frontier frontiers, our numbers. We'll have continuous growth on top of that because we will our customers on broadband sit in the my home framework where they come, they buy the connectivity piece and look, majority of our customers take the one gig plus plan coming in. So that gives us a boost in our food, and then we start selling perks and other adjacent services on top of that. So we'll see good comfortable our food growth with a gig plus plan, our food growth on that and then not of 40% penetration pretty much across our five footprint as well.

Speaker Change: Specific broadband Aqua number, but look we tend to do very well we had industry, leading if you look at frontier frontier is awkward numbers we.

Speaker Change: Have continuous growth on top of that because we would our customers on broadband fit into my home framework, where they come they buy the connectivity piece and the majority of our customers take the one gig plus plant coming in so that gives us a boost in Aqua and then we start selling books and other adjacent services on top of that so we've seen good comfortable ARPA growth.

Speaker Change: With a gig plus plan Aqua growth on that and then not a 40% penetration is pretty much across our fiber footprint as well.

Frank Louthan: Thank you. Okay, let's go. We're going to go Frank back here in the back row, and then we'll come back up to Tim in the front row over here. Great. Frank loud and with Raymond James. So, on the fixed wireless, what is sort of the outlook for that on the business side? Are those eight, nine, eight, 10 million subs include business type two replacement? Comment on that and then getting to 35 million or so homes pass with wireless. It's a pretty high percentage. Can you get there without additional M&A, or does that include B or other government subsidy?

Speaker Change: Thank you Nick.

Speaker Change: Okay. Let's go we're going to have Frank back here in the back row, and then we'll come back up to Tim on the front row over here.

Speaker Change: Alright, great Frank Louthan with Raymond James.

Frank Louthan: On the fixed wireless what is sort of the outlook for for that on the business side is that are those 898 10 million subs include business type two replacement you comment on that and then getting to $35 million or so homes passed with wireless is a pretty high percentage.

Speaker Change: Get there with or without additional M&A or is that include bead or other government subsidy.

Frank Louthan: The second one, it doesn't include any M&A, and besides the one who have planned to have announced and B, as you said, there's no, there's small pieces that will not rock the boat. We will make our numbers regardless of being or not. We will, of course, participate in being that we can do. On the business side, those are in the number eight to nine. Yes, business side is included, and I have to say one of the things that Kyle and I are more surprised than others is. Of course, the success we have had on the business side.

Speaker Change: The second one and doesn't include any M&A.

Speaker Change: And besides that one would have planned.

Speaker Change: Sure.

Speaker Change: Announced and being that.

Speaker Change: You always said Theres no theres small pieces that will not rock the boat, we will make our numbers, regardless of whether or not we will of course participating meaning we can too.

Speaker Change: On the business side those are in the number eight to nine years be decided is included and I have to say one all of the things that Kyle and I are more surprised than others as of course as a chest, whereas on the basis side, maybe you should talk about it I don't think so I was actually on the business side.

Kyle Malady: Maybe you should talk about it on things by access on the business side. Kyle. Frank, thanks for the question. We continue to see this as a great opportunity, like I said before. We actually did a little bit better with this product than we thought we might, and what's interesting is enterprises, small businesses are figuring out different ways to use this connectivity. It's just not for broadband like you would see in a consumer world. So we think people are going to continue to innovate with it. And so these new open for sales, the Jonas team are putting together for us.

Speaker Change: Listen Frank Thanks for the question we.

Speaker Change: We continue to see this as a great opportunity like I said before.

Speaker Change: We actually did a little bit better with this product and we thought we might and what's interesting is enterprise or small businesses are figuring out different ways to use. This connectivity is just not for broadband like you would see in the consumer world. So we think people are going to continue to innovate with it and so this new these new open for sales of Jones team, we're putting together for US we feel we can we can.

Kyle Malady: We feel we can accelerate and really sell into this thing. I'm also excited about what you hear about the using millimeter way for M.D.U. A lot of these M.D.U.s also have stores or businesses in them. And so we'll be able to leverage that investment as well to increase our market share in this area. So a lot of work to do, but we're really happy with the plans that Joe has put out for us to sell into. And the good thing from a sort of a utility point of view menu on the customers that Kyle have, they're using the fixed files access on certain hours.

Speaker Change: We can accelerate and really sell into this thing I'm also excited about the what you hear about the using millimeter wave for them to you a lot of these under use also have stores or businesses in them and so we'll be able to leverage that that investment as well to to increase our market share.

Speaker Change: In this area so a lot of work to do but.

Speaker Change: But we're really happy with the plans that you've put out for us to sell into and a good thing from a sort of a utility point of view many of the customers that Kyle have they're using a fixed wireless access on certain hours. The consumers are another hours. So this is just using the utility even better that we can sell in in and we can monetize all hours of the day.

Kyle Malady: The consumers are another hour. So this is just using the utility even better that we can sell it in and we can monetize all hours of the day. Thanks.

Speaker Change: We don't efforts.

Speaker Change: Next to him up here to Tim in the front row.

Tim Moran: Come up here to Tim in the front row. Thank you, Tim Moran, Oppenheimer.

Tim Moran: Thank you Tim Moran Oppenheimer, we're seeing pretty unprecedented improvements in technology across the board satellite.

Hans Vestberg: We're seeing pretty unprecedented improvements in technology across the board: satellite, AI. What you're talking about here would stand alone. Can these be material drivers to the business model, both maybe just talk a little bit about incremental revenue from all of these and maybe the ability to use AI to automate it and digitize a lot more. And I guess, and specifically, you satellite direct to phone, direct to mobile, you know, can that be a real needle mover in terms of overall, you know, growth rates for the company. Thanks. I think AI is definitely over a time frame.

Tim Moran: I you know what you're talking about you would stand alone can these be material drivers to the business model. Both maybe just talk a little bit about incremental revenue from all of these and maybe the ability to use AI to automate and digitize a lot more and I guess specifically.

Tim Moran: You sounded like direct phone director mobile.

Tim Moran: Can that be a real needle mover in terms of overall growth rates for the company.

Speaker Change: I think AI is definitely over a time frame out how kind and I think what they are generally the way iron, especially in the beginning right now we see large language modules going to the big data centers out to the market all the time.

Hans Vestberg: So how kind of I think about AI generated AI especially in the beginning right now, we see large language modules going to the big data centers out to the market all the time. As soon as they're going to be an application that you're going to use as enterprise, you're going to put it much closer. For the main reason of the transport cost for privacy, for security, and in some cases, also latency, maybe not equally much. But then you're going to see a big opportunity for us, given what Kyle talked about. We will come back a little bit more specific on it, but definitely, but it's going to take some time from all these large language models to be real product and sitting in the edge of the network.

Speaker Change: As soon as they are going to be an application that youre going to use as enterprises are going to put in much closer for the main reason of the transport cost for privacy for security and in some cases also latency maybe not equal in March.

Speaker Change: And then you're going to see a big opportunity for us given what our Kyle talked about and we will come back a little bit more specific on it but definitely but it's going to take some time from all these large language more than it can be a real product and seating in the agile network.

Hans Vestberg: So that's the slicing. Is another area we talked about. We believe that we probably start more in the business side, and then we'll come to the consumer side, and that's we see as an opportunity as well. On the satellite, a little bit too early to see how large opportunity can be, I have to say, because of course, we're going to offer satellite to our customers in the white spaces, where we are not allowed to build, for example, and see a direct device. A little bit too early on the consumer to say consumer side to see if that's a business case.

Speaker Change: That's the slicing is another area, we've talked about we believe that we can probably start more in the business side and then we'll come to the consumer side and that's where she is an opportune desk.

Speaker Change: On the satellite little bit too early to see how large opportunity can be.

Speaker Change: To say because of course, we want to offer satellite to our customers in the in the white spaces, where we're not allowed to mail for example.

Speaker Change: As a direct to device.

Speaker Change: Little bit too early on the consumer to say consumers wanting to see if that's a business case on.

Unknown Executive: On the business side, yes, we can see that already for remote and the price of things like that. So those three or new revenue opportunities on top of everything we're talking about here. Okay, we're doing fine on time. So we're going to get everybody to just be patient.

Speaker Change: On the visa side, yes, we can see that already for remote enterprise.

Speaker Change: So things like that so those three are new revenue opportunities on top of everything we're talking about here.

Speaker Change: Okay. We're doing fine on time, so we're going to get to everybody. So just be patient. So we're gonna go front row with Walker here.

Walter Piecyk: So we're going to go front row with Walt right here. Walt, I say, from light shed. So the two to three and a half percent growth, you had historically, there was a lot of doubts whether sand path is going to deliver on the units. Obviously, it's going to come down to the fourth quarter, but it looks like the queue of the PNQ is happening just had a price increase, which should accelerate the post paid growth in the fourth quarter at a time when people are concerned about the economy. So you've got, it seems like some decent strength there.

Speaker Change: Well probably see for merchant.

Speaker Change: So the two to three 5% growth you had historically there was a lot of doubts whether sand path is going to deliver on the units obviously, it's going to come down in the fourth quarter, but it looks like the Q of the PS and Qs happening just had a price increase which should accelerate the postpaid growth in the fourth quarter at a time when people were concerned about the.

Speaker Change: Economy right. So you've got it seems like some.

Speaker Change: Some decent strength, there now you're investing in <unk> and.

Walter Piecyk: Now you're investing in fiber; you're investing in fixed wireless. Who knows where inflation is, but is a board now expecting you to deliver higher than this 3% growth? Again, you've got post paid working. Now you're talking about prepaid growing; you're making new investments. And shouldn't the expectation be that that total wireless number, not 2025 guy Tony, but like, you know, at some point, getting to a what is considered, I mean, T Mobile is considered a growth company. What are they doing? Like 4% 5% growth, like so delivering that type of growth. That's my first question.

Speaker Change: In fiber you're investing in fixed wireless.

Speaker Change: Who knows where inflation is but has the board now expecting you to deliver higher than this 3% growth again, you've got postpaid working now you're talking about prepaid growing you're making new investments shouldn't your expectation be that that <unk>.

Speaker Change: Total wireless number not 'twenty twenty-five guy and Tony but like you know at some point.

Speaker Change: Getting to a what is considered I mean T. Mobile has considered a growth company and what are they doing like 4%, 5% growth like so.

Speaker Change: Delivering that type of growth.

Speaker Change: My first question.

Hans Vestberg: It was a good question, Walter. There was a lot of things to unpack there, but ultimately you're right on many things we're doing. You're right, we're trying to turn everything right, but we also had some headwinds, you know, that with a pro-modization, for example, that is a headwind for us. But all in all, our focus is to really do right and do more value for our customers. And I think we are, have proven now the last six, seven quarters that we talked about, that we can do it. Not going to go into confirming any of your growth numbers or percentages, but we are incentivized to grow our wild service revenue.

Speaker Change: Yeah. It was a good question, but also a lot of things to unpack there, but ultimately youre right on many things we're doing you're right. We're trying to turn everything right. But also had some headwinds you know that when the program amortization works all the letters of handling for us so but all in all our focus is to really do right and do more value for our customers and.

Speaker Change: I think we are a proven out the last six seven quarters I've talked about that we can do it not going to go into confirming and you'll have your growth numbers or percentages, but we are incentivized to grow our wireless service revenue that that.

Hans Vestberg: That's part of all the team sitting there, and all the VPMers; they are incentivized to do that. So, of course, our focus is going to be that because we have a leverage wonder. If we grow, it basically falls down even more to the bottom line, and then we can both improve our cash flow and our, and adjust the beat. So all the things you're saying is, what we're doing, not going to commit to any numbers, but clearly that is to grow faster over time or be sustainable. That's very important for us because that is how we return both cash flow to our shareholders and continue to be an attractive stop to invest in.

Speaker Change: That's part of it all the team safe thing there and all the V P Myers.

Speaker Change: They are incentivized to do that so of course, our pumps is going to be that of course, we have a leverage walnuts. If we grow it basically falls down even more to the bottom line and then we can both improve our cash flow and our <unk>.

And adjusted EBITDA. So all the things you're saying is what we're doing on not going to commit to any numbers, but clearly that is to grow faster. All the time will be sustainable that's very important for us because that is how we return both cash flow to our shareholders and continue to be an attractive stock to investing.

Hans Vestberg: Okay, and then just one quick one, because you know I like care about the Apple stuff. I think Tony was very clear on where the current upgrade rates are, but the new narrative is, oh, even though AI sucks now, it's going to be better over the next couple of years, just kind of your viewpoint on, because you have to manage cash based on upgrades. Over the next two years, do you think, you know, AI is something that is going to stimulate the upgrade rates within the wireless, but there's Verizon or just probably in the industry.

Speaker Change: And then just one quick one because you know I only care about the Apple stuff I think Tony was very clear on where the current upgrade rates are but the new narrative is oh, even though AI sucks now it's going to be better over the next couple of years.

Speaker Change: Kind of your viewpoint on because you have to manage cash rate based on upgrades over the next two years do you think.

Speaker Change: AI is something that is going to stimulate.

Speaker Change: The upgrade rates within the wireless whether it's Verizon or just broadly in the industry.

Hans Vestberg: Thanks. It's a little bit to say, and many of the AI applications, of course, are very helpful, but when it comes to consumer devices. We also need to think about the processing power for this application if you want to do something really innovative. It's very disciplined in how we do promotions. We're going to have the right promotions with the right customers at the right moment in the right segment with the right type of value. So we will continue the work we've started somewhere in 23 with segmenting approach on everything we're doing. Remember, I look at this as a customer sort of investment that we have all the way from promotions, retention, and media.

Speaker Change: It's a little bit too early to say among many of the application of course is very helpful.

Speaker Change: But when it comes to consumer devices will also need to think about the processing power.

Speaker Change: Ladies application if you want to do something really innovative so things may be too early to call that I used to say historically when we've seen so called cycles.

Speaker Change: Industry is has been 45 D or hardware redesign those are the things that has triggered it now we're talking about is a software side I was going to do it it's too early for us to say at least so far and I look at my colleagues here, we haven't seen that we haven't seen that is creating the.

Speaker Change: Cycle.

Speaker Change: It's too early to say, we're going to be if it's going to happen. We're going to be continued very disciplined in how we do promotions, we're going to have the right promotions when the right customers at the right moment in the right segment with the right type of value. So we will continue that work will start in somewhere in 'twenty three with segmenting approach on everything we're doing.

Speaker Change: Remember I look at this as a customer.

Speaker Change: Customer socal.

Speaker Change: Investment.

Speaker Change: That will have all the way from promotions retention and media for me, that's one bucket, how do I drive the market and that tight while its ross, but he's very flexible actually Leslie is here in marketing Salmonella Chylous here, we sit down all the time as he should we put more retention and share with you more in promotions should we do more on media that is.

Hans Vestberg: For me, that's one bucket; how I drive the market. And that tight budget for us, but it's very flexible as it is here in marketing. Somebody, Kyle, is here; we sit down all the time and see if we put more retention, we do more on promotions, we do more on media. That is an ongoing work for us that is dynamic nowadays. Historically, it has been a bit more static. But where the market is right now, this is super important to be good at this. And then AI comes in so you can be even better to see that our customer segment here needs more offerings here, we need to come from here, need more media, we need more retention.

Speaker Change: And ongoing work for us that is dynamic nowadays historically has been a little bit more static, but where the market is right. Now this is super important to be good at this and then AI comes in so you can be even better to see that we have towards our customers segment here means more offerings here, we need to come from here need more need that many more retention.

Hans Vestberg: All that is a new word where we are in a world where wireless and broadband is such a necessity. Everybody needs to have it if you're a business or if you're an individual consumer. And we have the best products in both of them; we just need to see that we are creating the value for our customers, and we can go with them upwards. This is something we spend enormous lot of time on because we are getting into a new phase of our industry where I think that I don't think we have ever been as good position as we are right.

Speaker Change: All that is a new world, where we are in a world where wireless and broadband is such a necessity everybody needs to have it if you're a business or if you're in the video consumer and we have the best products in both of them. We just need to see that we are creating value for our customers and we can go with them upwards. This is something we spend.

Speaker Change: Almost all the time on because we're getting into it a new face all the ore industry, where I think that I don't think we have ever been as good a position as well right now.

Hans Vestberg: Now.

Unknown Executive: All right, we're going to go. There's still hands up, okay? We're going to go, Connor and over here, and then Cookkin. They're going to come back to LaRotte, and then we'll finish with Jonathan and John. So maybe I guess to start with on six twilight lists, I mean, I don't know if this understanding is Craig, but feels like the approach of the two-market strategy is mutually exclusive between five or six twilight lists in the sense that, you know, I don't think that's the approach, some of your peers are taking where fixed wireless is, you know, top of the funnel, you upgrade people to fiber and, you know, it becomes a different path.

Speaker Change: All right, we're going to go there's still hands up okay. We're going to go we're going to come in over here and then cook in there where it come back to Lamont and I will finish with Jonathan and John.

Okay.

Speaker Change: So maybe I guess to start with them fixed wireless I mean, I don't know if this understanding is correct, but it just feels like the approach of the go to market strategy is mutually exclusive between fiber and fixed wireless in the sense that I.

Speaker Change: I don't think that's the approach some of your peers are taking their fixed wireless is top of the funnel you upgrade people to fiber and it becomes a different path for you. It seemed like a tam opportunity, where you expand the market. So firstly I wonder given understanding of.

Connor: For you, it seems like a time opportunity where you expand the market. So first, I want to give an understanding of, you know, whether that's the go-to-market approach. Yeah, we can't confirm that one. Yes, that's the issue. And we want the great optionality, and that's how we build the networks. Different customers want fiber of iOS, and others want fixed wireless access. We want to create that opportunity. Got it. And then if you don't want to loop me south on any other segments, because they like one product and the other, we are trying to address both of them.

Speaker Change: Whether that's the go to market approach.

Speaker Change: I can confirm that one.

Speaker Change: That they said that when we want to create optionality and that's how we build the networks.

Speaker Change: Different customers want fiber of iOS and others want fixed wireless access we want to create that opportunity.

And then if they don't want to Miss out on any other segments of course, they like one product and the other we are trying to address both of them and that was it.

Hans Vestberg: That's what the plan you see here. And then from a capital allocation perspective, I mean, when you think about your peers, they're obviously using a slightly different approach when it comes to investing in fiber with JB's and, you know, maybe more localized kind of an approach in different parts of the country using these JB's. And you've followed a more of an on-balance sheet approach. Is that an option you have in the future to look at some of these structures? Or is this something that you've made a deliberate choice on? This is... No, it's not the deliberate choice.

Speaker Change: Can you see here.

Speaker Change: And then from a capital allocation perspective, I mean, when you think about your peers, they're obviously using a slightly different approach when it comes to investing in fiber with <unk>.

Speaker Change: Maybe more localized kind of an approach in different parts of the country using these jv's and you follow the motive and on balance sheet approach.

Speaker Change: Is that an option you have in the future to look at some of these structures or is this something that you've made a deliberate choice. This is now is not the deliberate choice at this <unk>.

Hans Vestberg: We look into everything, and it's an option, but again, it has to be a good return on investment. So far, we haven't found in a third-party model where we don't own the capital and somebody else owns the capital. That is really attracting with our return on capital, because we have one of the best in return on capital in the industry. And we want to see that that continues. So, so far, it has to be an organic. We're doing it. But nothing is excluded here. I mean, I usually say that the CEO; you can never say that.

Speaker Change: We will look into everything and it's an option, but again it has to be in the.

Speaker Change: A good return on the investment so far we haven't fallen in a third party models, where we don't own the capitola and someone else on the capital that is really attractive with our return on capital because we have one of the best into return on capital in the industry and we wanted to see that that continues or so.

Speaker Change: Far it has been organic we're doing it.

Speaker Change: But nothing is excluded him and I used to say that the CEO you can never say that they'll never going to do it or and then suddenly you do it then everyone and say you told north, but so I cannot exclude it but so far we haven't found any of those models that we think is attractive in our capital allocation and a return to our shareholders.

Hans Vestberg: But never going to do it or... And then something you do it, then everybody's saying you're told most enough. But, so I can't even exclude it. But so far, we haven't found any of those models that we think use attractive in our capital education and our return to our shareholders.

Sowmyanarayan Sampath: Next, we'll go to cook in next. Thanks, Chuck, I'm wrong with ever-core eyesight. Maybe for a stand-path, I had a question about your Perks portfolio. And the 7 million subscriptions you mentioned is pretty impressive. Fairly ambitious targets to double that going forward. Are you happy with the portfolio now? Do you see that changing? And as you expand that, does your relationship wholesale partnerships? Does that dynamic change in your economics evolve, especially with entertainment partners that you have? I think when we started launching my plan, our sales teams are getting used to this. It was selling motion.

Speaker Change: Thanks.

Speaker Change: We will go to Cook index.

Speaker Change: Thanks, Chuck I'm wrong with Evercore ISI.

Speaker Change: For stand path I had a question about your perks portfolio.

Speaker Change: And the 7 million subscriptions you mentioned.

It's pretty impressive fairly ambitious targets to double that going forward.

Speaker Change: Are you happy with the portfolio now do you see that changing and as you expand that does your relationship wholesale partnerships does that dynamic change in your economics evolve, especially with entertainment partners that you have.

Speaker Change: I think when we started launching my plan. Our sales teams are getting used to this it is selling most of our customers also getting used to it. So if you look at our attach rate. It has grown significantly from when we launch at the beginning of the year again, beginning of the year to where we are now it seems they're getting more comfortable in that so that's why we get the 7 million, we'll double that at $10. A pop you can do the math.

Sowmyanarayan Sampath: Our customers are also getting used to it. If you look at our attach rate, it has grown significantly from when we launch the beginning of the year. Again, the beginning of the year to where we are now, teams are getting more comfortable in that. So that's why we get to 7 million. We'll double that. You know, at $10 a pop, you can do the map on where it goes. What we tend to find is the perks that do well for us or ones that are exclusive to us, ones that have maximum savings, and then one just have a very strong value prop for the customer.

Where it goes what we tend to find is the books that do well for us are ones that are exclusive to us once that have maximum savings and then one just have a very strong value prop for the customer. So you will not see us have a very long tail on that because what it does is it doesn't focus the attention of the sales teams and our digital efforts to do that.

Sowmyanarayan Sampath: So you will not see us have a very long tail on that. Because what it does is it doesn't focus the attention of the sales teams, and I ditched the efforts to do that. So we'll continue with our approach of having fewer, deeper relationships. Like right now, we have deep relations with Apple, with Disney, with Netflix, with Max, some of our own perks as well. And also it has to be a margin of creative to us as well. You know, we've been quite open about this. This is a margin play as much as it's a revenue play for us.

Speaker Change: So we'll continue with that approach of having fewer deeper relationships like right now we have deep relations with Apple with Disney with Netflix, It's Mac some of our own books as well and also it has to be margin accretive to us as well we've been quite open about this this is a margin play as much as it is a revenue play for us so fewer more concentrate.

Sowmyanarayan Sampath: So fewer, more concentrated Perks makes a lot more sense. And that, in the effect, kind of answers your second part of the question. We tend to have more leverage over our partners, and that drives better economics for us in the process. But we're really excited about getting to double this Perk portfolio with a pretty margin-rich pool that we have right now. And then, as they were also some, but that some of the combinations, we are unique. We're the only one can do those combinations that we have had. For example, Max and Netflix in the market, nobody can combine that.

It books makes a lot more sense and that effort kind of answer the second part of the question. We tend to have more leverage over our partners and that drives better economics for us in the process, but we are really excited about getting to double this book portfolio with a pretty margin rich pool that we have right now and then adding more sand, but that some of the combinations we are.

Speaker Change: Where we are the only one can do those combinations that we have added for example, maxon Netflix in the market and nobody can combine that that's all we have negotiated so we'll have this flexibility and exclusive of anything to do it and that's what that is what is driving quite a lot of things and all in all every park will have savings for.

Sowmyanarayan Sampath: That's how we have negotiate, so we have this flexibility and exclusivity to do it. And that's what is driving quite a lot of things. And all in all, every perk we have is a saving with for our customer. And of course, it's also a saving for our partners because ultimately they're wholesaling to us. They don't have the cost of acquisition. But again, we all want to do it when we; it's crazy for us as well. Have to be a crazy for the customer. Have to be a crazy for the task. And then we have to go forward.

Speaker Change: Our customer and of course, it's also saving for our partners because ultimately.

Speaker Change: They are wholesaling to us they don't have the cost of acquisition, but again, we don't want to do it when we it's a great thing for us.

One has to be accretive what a customer has to be accretive to us and then we never before done in creating a very unique model in and sometimes you might think this is a BRCA simple, but I'm looking at Shanghai witness our head of it you have to imagine who can come into the store and actually be a net.

Sowmyanarayan Sampath: And creating a very unique model. And sometimes we, you might think this is a pretty simple, but I'm looking at Chanko with this or head to IT. Just imagine it can come into a store and actually be a Netflix customer and move over to be a Netflix customer to a Verizon. We take care of all of that back end. The only thing you need to remember is a password. And sometimes that might be a problem; I know. But, so you just imagine how much work we have done to make this a unique offering that is hard to replicate.

Speaker Change: Fleet customer and move all going to be a netflix customer drove her iPhone, we take care of all of that back and the only thing you need to remember is your password and sometimes that might be a problem I know, but so just imagine how much work we're down to make this a unique offering that is hard to replicate first of all some of them are exclusive and number two you need.

Sowmyanarayan Sampath: First of all, some of them are exclusive. And number two, you need to replicate a lot of things behind. Because if you're going to go home and then you log on and cancel and everything, I can tell you the heat rate is... Lowe, extreme Lowe, and that's why we have worked so much with a customer experience here to do this in a right way. And I think that Sampath and Lesley and Shankar and the whole team have thought about how we'll make this simple for our customer. So I think this is just the beginning of us using the distribution as a strategy.

Speaker Change: To replicate a lot of things behind because if youre going to go home and Daniel golf and analog on cans and I already I can tell you the hit rate is.

Speaker Change: Hello.

Speaker Change: And that's why we're at work so much with a customer experience here to do this in the right way and I think that same pattern unless layer in Shanghai and our whole team has talked about how we can make these simple for our customers. So I think this is just a big evening of us using the distribution of the strategy. We have the network. We have the distribution, but you're also going to continue to do the right thing for our customers.

Sowmyanarayan Sampath: We have the network, we have the distribution; we're just going to continue to do the right thing for our customers. And that's going to pay off long term for us.

Speaker Change: And that's going to pay off long term for us.

Unknown Executive: All right, so the clock is ticking down. We have time for one more.

Speaker Change: Alright, so the clock is ticking down we have time for one more we're going to launch here in the back.

Laurent Dune: We're going to go Laurent here. Here in the back. Sorry, Sampath, I have one more question for you. Laurent Dune from Bernstein. You mentioned the 500 basis point incremental penetration of wireless and where you have fiber. Can you give us some color on correlation versus causation for that number? And secondly, how important is that observation? Or more explicitly? Is any of that the expectation of incremental wireless built into your fiber business case going to 35 to 40 million passes? Let me answer the second part first. Look, we feel comfortable between Joe, Tony, and I on this 35 to 40. Is fiber economics getting better over time?

Speaker Change: Sure.

Speaker Change: Sorry, one more question for you.

Yeah.

Speaker Change #100: Laurent <unk> from Bernstein.

Speaker Change #101: You mentioned, the 500 basis point incremental penetration of wireless and where you have fiber can you give us some color on correlation versus causation for that number and secondly.

Speaker Change #101: How important is that observation.

Speaker Change #101: Or more explicitly is any of that into the expectation of incremental wireless built into your fiber business case.

Speaker Change #102: Going to 35 to 40 million passes yes, let me answer the second part first.

Speaker Change #103: We feel comfortable between Georgia and Eni on this 35 to 40 is favored economics is getting better all the time two reasons. The first one is cost as Joe said, we're getting better on technology better systems able to take cost out of the process second is penetration.

Sowmyanarayan Sampath: Two reasons. The first one is cost, as Joe said. We're getting better on technology, better systems able to take cost out of the process. Second is penetration. You know, a north of 40% penetration, but also how quickly we get to that north of 40% that's another important factor. Another important factor, Laurent, is the first year penetration; how quickly we get to first year penetration. And as I said, we keep getting better every year on how quickly we get to Year One penetration and that. So those are some of the factors that make fiber really attractive. On top of that.

Speaker Change #103: Not a 40% penetration, but also how quickly we get to that north of 40%. That's another important factor. Another important fact learn is the first year penetration how quickly we get to first year penetration and as I said, we keep getting better every year on how quickly we get to year one penetration in that so those are some of the factors that make fiber really attractive on top of that.

Sowmyanarayan Sampath: Now you have the mobile plus home benefits that historically we've not had enough time on, so that's kind of a cherry on top of the whole Sunday in terms of why fiber economics looks really strong going forward to do that. To answer the first part of the question, if we see 500 basis points of 5% better wireless market share in T01 large T01 markets where we have fiber. Look, I think there is a lot of it is driven by causation because you have better brand variable to spend more money on marketing in those local markets to also distribution.

Speaker Change #103: Now you have the mobile platform benefits that historically, we've not had have not spent enough time on so that's kind of a cherry on top of the whole Sunday in terms of why fiber economics looks really strong going forward to do that once your first part of the question. If we see 500 basis points or 5% better on wireless market share in tier one large tier one market.

Speaker Change #103: Where we have fiber.

Speaker Change #103: I think that is a lot of.

Speaker Change #103: It is driven by causation because you have better brand, we are able to spend more money on marketing in those local markets, who is also a distribution historically, we have not had our stores get involved and file sales now we have a sales motion with all our stores, especially in the northeast get more involved in the fire sale you saw that this quarter, we launched it this quarter.

Sowmyanarayan Sampath: Historically, we've not had our stores get involved in fire sale. Now we have a sales motion where all our stores, especially in the Northeast, get more involved in the fire sale. You saw that this quarter, we actually launched this quarter when you do that. So better marketing, we're able to double down efforts, but also you tend to get the cross-sell opportunity in that. So I think a lot of it is causation going forward. So there will be upside in our mobility case as we continue to get to 35 to 40 million homes of fiber definitely.

When you do that so better marketing, they're able to double down effort, but also you tend to get the cross sell opportunity in that so I think a lot of it is causation going forward. So that will be upside in our mobility case as we continue to get the 35 to 40 million homes of fiber indefinitely.

Thank you. I guess we are wrapping up. First of all. Thank you, everyone, on the webcast, everyone coming here face to face in New York. Hopefully, we got more insights, both our third quarter, but also to our expanded broadband strategy, and for sure we're back with more information as we have more quarters to come and other activities. So once again, thank you so much, guys, for coming. Thank you.

Speaker Change #104: John Thank you I guess way, we're wrapping up.

Speaker Change #105: First of all thank everyone on the webcast everyone coming here.

Speaker Change #105: Face to face in New York.

Speaker Change #105: Hopefully you got more insights both of our third quarter, but also to our expanded broadband wrapped it in for sure and back with more information as we have.

Speaker Change #105: More quarters to come and other activities. So once again. Thank you so much guys for coming thank you.