Q4 2024 United States Cellular Corp Earnings Call

124 operating results conference call all lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question. During this time simply press. The Star then the number one on your telephone keypad to withdraw your question Press Star one again.

Laurent Therivel: The spectrum transactions reflect sales prices that are in excess of both appraised value and book value of their respective licenses. That further demonstrates that the licenses and the bandwidth they provide have significant value to other carriers, which in turn will allow those carriers to provide an improved experience to their customers. With regard to the T-Mobile transaction and our two large spectrum transactions, all three are progressing as expected. We are having ongoing interactions with the regulators to respond to their requests, importantly, we still believe we are on track for a mid-2025 close for the T-Mobile transaction. This is important, as the spectrum deals that we announced in the Q4 are contingent upon the close of that transaction, as well as a number of other factors.

Speaker Change: I would now like to turn the conference over to Colleen Thomson Vice President Corporate Relations. Please go ahead.

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

Speaker Change: With me today and offering prepared comments are from Tds sticky Villa <unk>.

Walter Thompson: Executive Vice President and Chief Financial Officer, Walter Thompson, President and Chief Executive Officer from U S. Cellular LTE cerebral president and Chief Executive Officer, Doug Chambers, Executive Vice President and Chief Financial Officer, and Treasurer and from Tds Telecom, Chris Basta, Vice President of Finance and Chief Financial Officer.

Laurent Therivel: As a quick reminder, I want to touch on what the remaining business at UScellular will look like after the close of the announced transactions. Let's start with the tower business. Today, we have about 4,400 owned towers with 2,444 co-locators. With the new MLA that we put in place with T-Mobile, we'll be adding at least another 2,015 incremental co-locations on our towers. That further strengthens that business. We remain bullish on the long-term outlook for our tower business, as the long-term capacity needs of the industry will likely require further densification and drive demand for towers. One other thing to keep in mind is we will likely not have a clear line of sight on which additional towers T-Mobile will choose to locate on until up to 30 months after the transaction closes.

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

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

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

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

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

Walter Thompson: And with that I will now turn the call over to Vicki deliberate picky. Okay. Thank you, calling and Hello, everyone. This morning, we'll take a quick look back at last year and also share with you our 2025 priorities and goals.

Laurent Therivel: Therefore, it'll take some time before we know exactly how many towers we have with no co-locators, and what we choose to do with these naked towers, retain them, decommission them, sell them, or transfer them to third parties. Now, also remaining will be our equity method investment interests in various partnerships, and those produce attractive cash flows. For context, there were $169 million of cash distributions from our unconsolidated entities in 2024. Lastly, we'll have our remaining spectrum portfolio. That represents about 30% of our existing spectrum portfolio today, of which the vast majority is C-band spectrum. We believe the attributes of these C-band licenses are attractive. C-band is beachfront mid-band spectrum for 5G, and there's an existing infrastructure ecosystem, so carriers are easily able to put that spectrum to use.

Walter Thompson: 2024, it was a significant year for the organization and I'm very pleased with our accomplishments.

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

First to position the company for long term success, we look to optimize our portfolio to focus on where we can grow and win as evidenced by multiple announcements related to the strategic review of alternatives at U S. Cellular along with the sale of one that got it solutions and several small car.

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

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

Walter Thompson: Our ILEC and cable companies at Tds Telecom.

And with that I will now turn the call over to Vicki Democrats sticky okay. Thank you Colin and Hello, everyone. This morning, we'll take a quick look back at last year and also share with you our 2025 priorities and goals.

Walter Thompson: As you will hear today, both of our businesses made significant investments in 2024 to improve their competitive positions and enhance the customer experience with the five G. Mid band deployment at U S cellular and the fiber program at Tds Telecom, where we have increased our footprint nearly.

Speaker Change: 2024, it was a significant year for the organization and I'm very pleased with our accomplishments.

Speaker Change: First to position the company for long term success, we look to optimize our portfolio to focus on where we can grow and win as evidenced by multiple announcements related to the strategic review of alternatives at U S. Cellular along with the sale of one that guy to solutions and several small car.

Walter Thompson: 30% over the past three years. These investments were made with financial discipline as capital expenditures were down 24% for the full year on a consolidated level contributing to an increase in free cash flow in 2024.

Laurent Therivel: Although there are build-out requirements associated with this band, the first one doesn't apply to these licenses until 2029, so there's plenty of time for us to opportunistically monetize the spectrum. Turning to our 2024 results. Given the industry environment, UScellular had a very solid year of financial and operating results. We executed on our plan to improve our subscriber trajectory and advance our mid-band deployment while remaining financially disciplined. We delivered on the guidance that we set at the beginning of the year, and we made meaningful year-over-year progress in retail subscriber results. That includes nice growth in fixed wireless, which as you may have seen earlier this week, surpassed 150,000 customers. I'm especially pleased with the improvements in the year-over-year postpaid handset results in H2 2024. Doug's going to touch on that in a few minutes.

Walter Thompson: Also in 2020 for both businesses maintained their rigorous cost reduction programs, resulting in expanded margins and adjusted EBITDA being up 7% for the full year on a consolidated basis.

Speaker Change: Our ILEC and cable companies at Tds Telecom.

Speaker Change: As you will hear today, both of our businesses made significant investments in 2024 to improve their competitive positions and enhance the customer experience with the five G. Mid band deployment at U S cellular and the fiber program at Tds Telecom, where we have increased our footprint nearly.

Walter Thompson: We further strengthened our balance sheet at U S cellular which paid down over $200 million in debt. We were also free cash flow positive and consistently drove year over year improvements in our bank leverage ratios operating below three times in the second half of the year at both companies.

Speaker Change: 30% over the past three years. These investments were made with financial discipline as capital expenditures were down 24% for the full year on a consolidated level contributing to an increase in free cash flow in 2024.

Walter Thompson: We ended the year unlocking significant value for our shareholders and I'm pleased with the progress we've made to position us for the future.

Laurent Therivel: However, despite those improvements, net retail subscriber adds were still negative. The challenges of the competitive environment, coupled with the size and lack of scale of our business, still remain. That's why we feel the transaction with T-Mobile is the best path forward for our customers and for the business overall. For the full year, all cash expense categories were down. That's despite increased data usage by customers, which rose 37% year over year. As of year-end, we've rolled out mid-band to sites which cover close to 50% of our data traffic. Looking forward to 2025, our operational priorities are not changing. We'll continue to invest in our customers, both through retention activities, that includes the continuation of US Days, and acquisition strategies. As a reminder, US Days are periods where highly attractive promotional offers are made available to our existing customers.

Speaker Change: Also in 2020 for both businesses maintained their rigorous cost reduction programs, resulting in expanded margins and adjusted EBITDA being up 7% for the full year on a consolidated basis.

Walter Thompson: Now want to introduce Walter Carlson Tds Board Chair, who was recently named Tds, President and CEO.

Speaker Change: Walter It's a pleasure to have you join us this morning.

Walter Thompson: Thank you Vicky and good morning.

Speaker Change: We further strengthened our balance sheet at U S cellular which paid down over $200 million in debt. We were also free cash flow positive and consistently drove year over year improvements in our bank leverage ratios operating below three times in the second half of the year at both companies.

Speaker Change: I'm pleased to be with you today.

Speaker Change: I joined the <unk> management team earlier this month.

Speaker Change: And I am honored to succeed in this role.

Speaker Change: I thought it was important to be on this call to share with you our priorities for 2025.

Speaker Change: We have important priorities. This year as you can see on slide four.

Speaker Change: We ended the year unlocking significant value for our shareholders and I'm pleased with the progress we've made to position us for the future.

Speaker Change: Accomplishing these objectives is critical and our entire team is focused on them to position the enterprise for.

Speaker Change: We're a very bright future.

Speaker Change: Now want to introduce Walter Carlson Tds Board Chair, who was recently named Tds, President and CEO.

Speaker Change: Our first priority is to close the T mobile transaction.

Speaker Change: You will hear much more from LTE on this.

Speaker Change: Walter It's a pleasure to have you join us this morning.

Speaker Change: Closing this transaction is the first step in the company's transformation.

Laurent Therivel: We'll also continue to invest in our Built For Us brand. That focuses on a subject that matters to customers, healthy and responsible use of technology. Finally, we'll continue rolling out mid-band spectrum across our footprint, expanding capacity and speed, and enhancing our customers' overall 5G experience. That rollout is working. Last month, UScellular ranked first in the North Central region according to the J.D. Power 2025 U.S. Wireless Network Quality Performance Study. Financially, during 2024, we increased both profitability and free cash flow. We strengthened our balance sheet by paying down over $200 million in debt. This is an excellent result given the significant strategic actions that were affected throughout the year. Our focus this year will be to diligently work to close those pending transactions while remaining laser focused on operating and investing in our business, our customers, and our associates.

Walter: Thank you Vicky and good morning.

Vicky: I'm pleased to be with you today.

Speaker Change: And following the closing of the T mobile transaction, we will focus on closing the other announced spectrum transactions.

Speaker Change: He joined the Tds management team earlier this month.

Speaker Change: And I am honored to succeed in this role.

Speaker Change: I thought it was important to be on this call to share with you our priorities for 2025.

Speaker Change: Our second priority is to make sure the assets remaining at U S. Cellular are highly successful former.

Speaker Change: We have important priorities. This year as you can see on slide four.

Speaker Change: Foremost among these are U S. Cellular's owned towers, and we expect to take steps to further strengthen and solidify that business.

Speaker Change: Accomplishing these objectives is critical and our entire team is focused on them to position the underpriced.

Speaker Change: Third we intend for our telecom business to remain focused on its fiber strategy.

Speaker Change: A very bright future.

Speaker Change: Our first priority is to close the T mobile transaction.

Speaker Change: As you will hear from Chris.

Chris: We have increased our projected capital spend at telecom to pursue highly desirable fiber opportunities.

Speaker Change: You will hear much more from <unk> on this.

Speaker Change: Closing this transaction is the first step in the company's transformation.

Chris: Our fourth priority is to wisely use the proceeds from the T mobile and other transactions to optimize the company's capital structure and to free up capital, while striking the right balance between reinvestment in our core businesses and.

Speaker Change: And following the closing of the T mobile transaction, we will focus on closing the other announced spectrum transactions.

Speaker Change: Our second priority is to make sure the assets remaining at U S cellular or highly successful.

Laurent Therivel: Speaking of associates, I want to provide a huge thank you to our teams for their unrelenting focus on our customers and our business. Now let me turn it over to Doug to talk through the results in a little bit more detail.

Chris: And shareholder returns.

Speaker Change: Foremost among these are U S. Cellular's owned towers, and we expect to take steps to further strengthen and solidify that business.

Chris: And finally last but far from least we will prioritize the culture of the GDS.

Doug Chambers: Thanks, LT. Good morning. Turning to postpaid subscriber results on slide 9, we ended 2024 on a high note. Postpaid handset gross additions increased year-over-year by 16%, and postpaid handset churn decreased 14 basis points, primarily driven by a decrease in voluntary churn. Postpaid handset net adds are still negative, we believe the efforts that we are making in caring for our customers, investing in our network, and offering compelling promotions to both new and existing customers are all helping to drive improvements in postpaid handset results. Moving to consolidated financial results starting on slide 12. For Q4, service revenues declined 2%, primarily driven by declines in the average retail subscriber base.

Chris: Tds is dedicated to serving its customers associates communities and shareholders.

Speaker Change: Third we intend for our telecom business to remain focused on its fiber strategy.

Chris: We will continue to do so in 2025 and going forward.

Speaker Change: As you will hear from Chris.

Speaker Change: We have increased our projected capital spend at telecom to pursue highly desirable fiber opportunities.

Chris: We are focused on optimizing the right assets, the right talent and the right capital structure to best position the enterprise going forward.

Our fourth priority is to wisely use the proceeds from the T mobile and other transactions to optimize the company's capital structure and to free up capital, while striking the right balance between reinvestment in our core businesses and.

Speaker Change: Now, it's time to hear from our business units.

Speaker Change: Thank you Walter and good morning, everyone as I reflect on 2024 was certainly a momentous year at U S cellular.

Speaker Change: And shareholder returns.

Speaker Change: We were able to improve subscriber results drive strong financials, while we also executed a strategic review of the business. We established a series of transactions that unlock significant value for our stakeholders and puts the business that remains.

Speaker Change: And finally last but far from least we will prioritize the culture of GDS.

Speaker Change: Tds is dedicated to serving its customers associates communities and shareholders.

Speaker Change: Strong position moving forward.

Speaker Change: The agreement to sell the wireless business to T mobile that we entered into in the second quarter combined with various spectrum transactions that we announced in the fourth quarter should deliver substantial proceeds.

Speaker Change: We will continue to do so in 2025 and going forward.

Doug Chambers: Loss on equipment or equipment sales less cost of equipment sold increased $13 million in Q4, primarily driven by increased promotional expenses as we maintained attractive acquisition and retention offers throughout Q4 2024, which drove favorable year-over-year retail subscriber results. As a result, adjusted operating income before depreciation and amortization declined 14%, and adjusted EBITDA, which incorporates the earnings from our equity method investments along with interest and dividend income, declined 11%. For the full year, despite a 2% decline in service revenues driven by decreases in average retail subscribers, adjusted OIBDA and adjusted EBITDA both increased 3%, or $27 million and $32 million respectively. This profitability improvement resulted from the impact of our shutdown of the CDMA network in Q1 2024 and the favorable impacts of our cost optimization initiatives.

Speaker Change: We are focused on optimizing the right assets, the right talent and the right capital structure to best position the enterprise going forward.

Speaker Change: And as we mentioned when we announced the deal we anticipate being in a position to return capital to shareholders.

Speaker Change: Now, it's time to hear from our business units.

Speaker Change: Naturally any decisions around that will be made by the board of directors in due course.

Speaker Change: T.

Speaker Change: Thank you Walter good morning, everyone as I reflect on 2020 for certainly a momentous year at U S cellular.

Speaker Change: The spectrum transactions reflect sales prices that are in excess of both appraised value and book value with respect of licenses.

Speaker Change: We were able to improve subscriber results and drive strong financials. While we also executed a strategic review of the business. We established a series of transactions that unlock significant value for our stakeholders and puts the business that remains strong.

Speaker Change: Further demonstrate the licenses and the bandwidth they provide a significant value to other carriers, which in turn will allow those carriers to provide an improved experience to their customers.

Speaker Change: Strong position moving forward.

Speaker Change: And with regard to the T mobile transaction and our two large spectrum transactions all three are progressing as expected.

Speaker Change: The agreement to sell the wireless business. The T mobile that we entered into in the second quarter combined with the various spectrum transactions that we announced in the fourth quarter should deliver substantial proceeds.

Speaker Change: We're having ongoing interactions with the regulators to respond to their requests and importantly, we still believe we're on track for a mid 2025 close for the T mobile transaction.

Speaker Change: And as we mentioned when we announced the deal we anticipate being in a position to return capital to shareholders.

Speaker Change: Naturally any decisions around that will be made by the board of directors in due course.

Speaker Change: And this is important as the spectrum deal that we announced in the fourth quarter are contingent upon the close of that transaction as well as a number of other factors.

Speaker Change: The spectrum transactions reflect sales prices that are in excess of both appraised value and book value irrespective licenses.

Doug Chambers: As it relates to capital expenditures and 5G deployment, we largely completed our 5G coverage build in 2022. In 2023 and 2024 dedicated a substantial majority of our 5G related capital expenditures to the deployment of our mid-band network to enhance speed and capacity. In 2025, we expect our 5G investments to continue to be dedicated to mid-band deployment. We expect total capital expenditures to decline relative to 2024 levels as we progress further into our 5G deployment cycle. Free cash flow in 2024 was $280 million, an $88 million increase over 2023, primarily attributable to the profitability improvement, a decrease in capital expenditures, and an increase in distributions from our equity method investments.

Speaker Change: As a quick reminder, I want to touch on what the remaining business at U S. Cellular will look like after the close of the announced transactions.

Speaker Change: This further demonstrates the licenses and the bandwidth they provide a significant value to other carriers, which in turn will allow those carriers to provide an improved experience to their customers.

Speaker Change: Let's start with the tower business.

Speaker Change: Today, we have about 4400 owned towers with 2000 and 444 co locators.

Speaker Change: And with regard to the T mobile transaction and our two large spectrum transactions all three are progressing as expected.

Speaker Change: The new MLA that we put in place with T mobile will be adding at least another 2015 incremental co locations on our towers further strengthen that business.

Speaker Change: We're having ongoing interactions with the regulators to respond to their requests and importantly, we still believe we're on track for a mid 2025 close for the T mobile transaction.

Speaker Change: We remain bullish on the long term outlook for our tower business.

<unk> term capacity needs in the industry will likely require further densification and drive demand for towers.

Speaker Change: As important as the spectrum deal that we announced in the fourth quarter are contingent upon the close of that transaction as well as a number of other factors.

Speaker Change: One other thing to keep in mind is we will likely not have a clear line of sight on which additional towers T mobile will choose to locate on.

Speaker Change: As a quick reminder, I want to touch on what the remaining business at U S. Cellular will look like after the close of the announced transactions.

Speaker Change: So up to 30 months after the transaction closes.

Doug Chambers: As mentioned, the pending transaction related to the sale of our wireless operations and select spectrum to T-Mobile is subject to regulatory approvals and other closing conditions, therefore close of this transaction is not a certainty. However, as LT mentioned, we still expect to obtain such regulatory approvals and meet such closing conditions in mid-2025 and complete the sale transaction with T-Mobile at that time. Accordingly, we are not issuing financial guidance for UScellular for 2025. Slides 15 and 16 provide perspective on expected cash proceeds from the pending transactions and factors which may impact such proceeds. Of course, the stated transaction price is $4.4 billion, $100 million of this purchase price is contingent upon UScellular achieving certain operating and financial targets prior to close.

Speaker Change: Well, let's start with the tower business.

Speaker Change: Today, we have about 4400 owned towers with 2000 and 444 co locators.

Speaker Change: Therefore, it will take some time before we know exactly how many towers, we have with no co locators.

Speaker Change: The new MLA that we put in place with T mobile will be adding at least another 2015 incremental co locations on our towers further strengthen that business.

Speaker Change: And what we choose to do with these naked towers retain.

Speaker Change: Decommission them sell them or transfer them to third parties.

Speaker Change: I'll also remaining will be our equity method investment interests in various partnerships those produce attractive cash flows.

Speaker Change: We remain bullish on the long term outlook for our tower business.

Speaker Change: For context, there were $169 million of cash distributions from our unconsolidated entities in 2024.

Speaker Change: <unk> term capacity needs in the industry will likely require further densification and drive demand for towers.

Speaker Change: One other thing to keep in mind is we will likely not have a clear line of sight on which additional towers T mobile will choose to locate on.

Speaker Change: And lastly, we will have our remaining spectrum portfolio that represents about 30% of our existing spectrum spectrum portfolio today of.

Speaker Change: So up to 30 months after the transaction closes.

Speaker Change: Of which the vast majority of C band spectrum.

Speaker Change: We believe the attributes of the C band licenses are attractive.

Speaker Change: Therefore, it will take some time before we know exactly how many towers, we have with no co locators and.

Speaker Change: C band is beachfront mid band spectrum for <unk> and there was an existing infrastructure ecosystem. So carriers are easily able to put that spectrum to use.

Speaker Change: And what we choose to do with these naked towers retained.

Speaker Change: Decommission sell them or transfer them to third parties.

Doug Chambers: $400 million of the purchase price is related to spectrum owned by two of our partners whose interest we have agreed to purchase. Transfers of these interests are pending regulatory approval, and the transfers of the underlying licenses to T-Mobile are contingent upon the receipt of such regulatory approval. Upon transaction close, T-Mobile will conduct a debt exchange offer pursuant to which holders of UScellular unsecured senior notes with a total principal balance of $2.044 billion at 31 December 2024, will be offered to exchange their UScellular debt for T-Mobile debt. The amount of debt the respective holders elect to exchange will correspondingly reduce transaction proceeds. In addition, UScellular is expected to repay its term loans, export credit financing agreement, receivable securitization agreement, and revolving line of credit.

Speaker Change: Although there are build out requirements associated with this band the first one it doesn't apply to these licenses until 2029. So there's plenty of time for us to Opportunistically monetize the spectrum.

Speaker Change: I'll also remaining will be our equity method investment interests in various partnerships those produce attractive cash flows.

Speaker Change: For context, there were $169 million of cash distributions from our unconsolidated entities in 2024.

Speaker Change: Turning to our 2024 results given the industry environment U S. Cellular had a very solid year of financial and operating results.

Speaker Change: And lastly, we'll have our remaining spectrum portfolio that represents about 30% more existing spectrum spectrum portfolio today.

Speaker Change: We executed on our plan to improve our subscriber trajectory and advance our mid band deployment, while remaining financially disciplined.

Speaker Change: Of which the vast majority of C band spectrum.

Speaker Change: We believe the attributes of the C band licenses are attractive.

Speaker Change: We delivered on the guidance that we set at the beginning of the year and we made meaningful year over year progress in retail subscriber results.

C band is beachfront mid band spectrum for <unk> and there is an existing infrastructure ecosystem. So carriers are easily able to put that spectrum to use.

Speaker Change: That includes a nice growth in fixed wireless, which as you may have seen earlier this week surpassed 150000 customers.

Speaker Change: Although there are build out requirements associated with this band the first one it doesn't apply to these licenses until 2029. So there's plenty of time for us to Opportunistically monetize the spectrum.

Speaker Change: I'm, especially pleased with the improvements in the year over year postpaid handset handset results in the second half of 2024.

Speaker Change: I was going to touch on that in a few minutes.

Speaker Change: Turning to our 2024 results given the industry environment U S. Cellular had a very solid year of financial and operating results.

Speaker Change: However, despite those improvements net retail subscriber adds were still negative.

Doug Chambers: At 31 December 2024, the cumulative principal amount of this debt that requires repayment upon close was $875 million. As it relates to employee liabilities, UScellular expects the following cash obligations. First, T-Mobile has agreed to make offers to a significant number of UScellular employees upon close. For these employees that are ultimately hired by T-Mobile upon close, UScellular is obligated to pay these employees accrued wages, bonuses, and other benefits that were earned prior to the close date. Second, UScellular expects to have severance obligations for employees that are neither employed by T-Mobile nor retained by the remaining UScellular business. These obligations are expected to include cash obligations of severance, accrued bonus, and other benefits, and may include cash obligations to settle the accelerated vesting of certain stock-based awards.

Speaker Change: The challenges of the competitive environment, coupled with the size and lack of scale of our business still remain.

Speaker Change: We executed on our plan to improve our subscriber trajectory and advance our mid band deployment, while remaining financially disciplined.

Speaker Change: And that's why we feel the transaction with T. Mobile is the best path forward for our customers and for the business overall.

Speaker Change: We delivered on the guidance that we set at the beginning of the year and we made meaningful year over year progress in retail subscriber results.

Speaker Change: For the full year, all cash expense categories were down and that's the spice increased data usage by customers, which rose 37% year over year.

Speaker Change: That includes a nice growth in fixed wireless, which as you may have seen earlier this week surpassed 150000 customers.

Speaker Change: As of year end, we've rolled out mid band to site, which cover close to 50% of our data traffic.

Speaker Change: I'm, especially pleased with the improvements in the year over year postpaid handset handset results in the second half of 2024.

Speaker Change: Now looking forward to 2025 or.

Speaker Change: Our operational priorities are not changing we'll continue to invest in our customers. Both through retention activities that includes the continuation of us days and acquisition strategies and as a reminder, <unk> for periods were highly attractive promotional offers are made available to our existing customers.

Speaker Change: Doug is going to touch on that in a few minutes.

Speaker Change: However, despite those improvements net retail subscriber adds were still negative.

Speaker Change: The challenges of the competitive environment, coupled with the size and lack of scale of our business still remain.

And that's why we feel the transaction with T. Mobile is the best path forward for our customers and for the business overall.

Speaker Change: We'll also continue to invest in our built for US brand that focuses on a subject matters to customers healthy and responsible use of technology.

Speaker Change: For the full year, all cash expense categories were down and that's despite increased data usage by customers, which rose 37% year over year.

Doug Chambers: US Cellular also expects to incur cash income tax obligations related to the gain on sale in the T-Mobile transaction in the range of $225 to 325 million. The spectrum transactions with Verizon and AT&T are contingent upon the close of the sale of the wireless business and select spectrum to T-Mobile, regulatory approval, and other closing conditions. The spectrum transaction with AT&T has a similar contingency related to one of US Cellular's designated entities with $232 million of the spectrum in this deal subject to US Cellular's purchase of its partner's ownership interest, which as noted previously, is pending regulatory approval. Further, US Cellular expects to incur cash income tax obligations related to the gain on sale of spectrum in these transactions with Verizon and AT&T in the range of $325 to 375 million.

Speaker Change: And finally, we will continue rolling out mid band spectrum across our footprint expanding capacity and speed and enhancing our customers' overall <unk> experience.

Speaker Change: As of year end, we've rolled out mid band to sites, which cover close to 50% of our data traffic.

Speaker Change: And at Rollouts working last month U S. Cellular ranked first in the north Central region. According to J D power 2025 U S wireless network quality performance study.

Speaker Change: Now looking forward to 2025.

Speaker Change: Our operational priorities are not changing we will continue to invest in our customers. Both through retention activities that includes the continuation of us days and acquisition strategies.

Speaker Change: Financially during 2024, we increase both profitability and free cash flow and we strengthened our balance sheet by paying down over $200 million in debt.

Speaker Change: As a reminder, <unk> for periods were highly attractive promotional offers are made available to our existing customers.

Speaker Change: This is an excellent result, given the significant strategic actions that were affected throughout the year.

Speaker Change: We'll also continue to invest in our built for US brand that focuses on a subject that matters to customers healthy and responsible use of technology.

Speaker Change: Our focus this year will be to diligently work to close those pending transactions.

Speaker Change: All remaining laser focused on operating and investing in our business our customers and our associates.

Speaker Change: And finally, we will continue rolling out mid band spectrum across our footprint expanding capacity and speed and enhancing our customers' overall <unk> experience.

Speaker Change: Speaking of associates I want to provide a huge thank you to our team for their unrelenting focus on our customers and our business now.

Speaker Change: And that Rollouts working last month U S. Cellular ranked first in the north Central region. According to J D power 2025 U S wireless network quality performance study.

Speaker Change: Now, let me turn it over to Doug to talk through the results in a little bit more detail.

Doug Chambers: Lastly, US Cellular expects to incur additional legal, advisory, and investment banking fees in 2025 and 2026 at and through the respective close dates of the T-Mobile and spectrum transactions. As discussed by LT, in periods after the close of the T-Mobile transaction, US Cellular expects to incur decommissioning costs related to certain naked towers. US Cellular is still evaluating the targeted capital structure for the remaining US Cellular business, which is also expected to impact cash available at US Cellular after close of the respective transactions. This is a summary of the significant factors that are expected to impact net proceeds from the pending transactions, along with various dependencies and contingencies. I will now turn the call over to Kristina Bothfeld. Kristina?

Doug: Thanks, <unk> good morning, turning to postpaid subscriber results on slide nine we ended 2024 on a high note postpaid handset gross additions increased year over year by 16% and postpaid handset churn decreased 14 basis points, primarily driven by a decrease in voluntary churn.

Speaker Change: Financially during 2024, we increase both profitability and free cash flow and we strengthened our balance sheet by paying down over $200 million in debt.

Speaker Change: This is an excellent result, given the significant strategic actions that were affected throughout the year.

Speaker Change: Our focus this year will be to diligently work to close those pending transactions, while remaining laser focused on operating and investing in our business our customers and our associates.

Doug: Although postpaid handset net adds are still negative we believe the efforts that we're making in caring for our customers investing in our network and offering compelling promotions to both new and existing customers are all helping to drive improvements in postpaid handset results.

Speaker Change: Speaking of associates I want to provide a huge thank you to our team for their unrelenting focus on our customers and our business.

Speaker Change: Now, let me turn it over to Doug to talk through the results in a little bit more detail.

Doug: Moving to consolidated financial results starting on slide 12 for the fourth quarter service revenues declined 2%, primarily driven by declines in the average retail subscriber base.

Thanks, <unk> good morning, turning to postpaid subscriber results in slide nine we ended 2024 on a high note postpaid handset gross additions increased year over year by 16% and postpaid handset churn decreased 14 basis points, primarily driven by a decrease in voluntary churn.

Kristina Bothfeld: Thank you, Doug. Good morning, everyone. I'm happy to be here today to share TDS Telecom's 2024 accomplishments shown on slide 19. Over the past year, we've made significant progress executing on a number of initiatives that support our long-term vision and goals. We've advanced our fiber strategies, growing the number of fiber service addresses by 129,000 in 2024, surpassing our goal of 125,000. We now have more than 50% of our addresses served by fiber, and we plan to significantly increase that number, as you'll see in a few slides. Our fiber strategy is working. In 2024, we increased residential revenues by 6% as we saw growth in both broadband connections and average revenue per connection. The growth in broadband connections was driven by investments in our fiber markets. This top-line growth, coupled with continued cost management, drove a 23% increase in adjusted EBITDA year over year.

Loss on equipment for equipment sales less cost of equipment sold increased $13 million in the fourth quarter, primarily driven by increased promotional expenses as we maintained attractive acquisition and retention offers throughout the fourth quarter of 2024, which drove favorable year over year retail subscriber results.

Speaker Change: Although postpaid handset net adds are still negative we believe the efforts that we're making in caring for our customers investing in our network and offering compelling promotions to both new and existing customers are all helping to drive improvements in postpaid handset results.

Doug: As a result, adjusted operating income before depreciation and amortization declined 14% and adjusted EBITDA, which incorporates the earnings from our equity method investments along with interest and dividend income declined 11%.

Speaker Change: Moving to consolidated financial results starting on slide 12 for the fourth quarter service revenues declined 2%, primarily driven by declines in the average retail subscriber base.

Doug: For the full year, despite a 2% decline in service revenues driven by decreases in average retail subscribers adjusted OIBDA and adjusted EBITDA, both increased 3% or $27 million and 32 million respectively.

Speaker Change: Loss on equipment for equipment sales less cost of equipment sold increased $13 million in the fourth quarter, primarily driven by increased promotional expenses as we maintained attractive acquisition and retention offers throughout the fourth quarter of 2024, which drove favorable year over year retail subscriber results.

Doug: This profitability improvement resulted from the impact of our shutdown of the CDMA network in the first quarter of 2024, and the favorable impacts of our cost optimization initiatives.

Kristina Bothfeld: Lastly, we spent 2024 planning and engineering for Enhanced ACAM, which is a multi-year program with construction starting in 2025. This will bring faster broadband speeds to our customers and further reduce our reliance on copper technology. Turning to slide 20, throughout 2024, as we delivered new fiber service addresses, the teams were focused on ramping up sales and marketing to drive increased penetration to those newly launched addresses. We made progress in increasing the number of door-to-door sales reps, which has helped improve net adds. Our Q4 was the strongest quarter of the year, adding 7,900 residential broadband net adds. On slide 21, you can see we grew total service addresses 6% year over year.

Speaker Change: Yeah.

Speaker Change: As a result, adjusted operating income before depreciation and amortization declined 14% and adjusted EBITDA, which incorporates the earnings from our equity method investments along with interest and dividend income declined 11%.

Doug: As it relates to capital expenditures in <unk> deployment, we largely completed our <unk> coverage build in 2022.

Doug: And in 2023, and 2024 dedicated a substantial majority of our <unk> related capital expenditures through the deployment of our mid band network to enhance speed and capacity.

Speaker Change: For the full year, despite a 2% decline in service revenues driven by decreases in average retail subscribers adjusted OIBDA and adjusted EBITDA, both increased 3% or $27 million and $32 million respectively.

Doug: In 2025, we expect our <unk> investments to continue to be dedicated to mid band deployment and we expect total capital expenditures to decline relative to 2024 levels as we progress further into our <unk> deployment cycle.

Speaker Change: This profitability improvement resulted from the impact of our shutdown of the CDMA network in the first quarter of 2024, and the favorable impacts of our cost optimization initiatives.

Doug: Free cash flow in 2024 was $280 million and $88 million increase over 2023, primarily attributable to the profitability improvement or decrease in capital expenditures and an increase in distributions from our equity method investments.

Kristina Bothfeld: Shown on the right side of the slide, we are seeing increased take rates for higher broadband speeds, with 81% of residential broadband customers taking 100 Mb or higher and 22% taking 1 Gb or higher at the end of the quarter. When looking at new customers that we added in the quarter, 52% took speeds of 1 Gb or higher. Demand for faster speeds remains strong. Our broadband investments are producing positive results. As shown on slide 22, average residential revenue per connection was up 5% year over year, due primarily to price increases. Looking at the chart on the right, we grew residential revenue 6% year over year, with expansion markets generating $114 million compared to $75 million last year. On slide 23, I'll touch on the financial highlights.

Speaker Change: As it relates to capital expenditures and five G deployment, we largely completed our <unk> coverage build in 2022 and.

Speaker Change: And in 2023, and 2024 dedicated a substantial majority of our <unk> related capital expenditures through the deployment of our mid band network to enhance speed and capacity.

Doug: As mentioned the pending transaction related to the sale of our wireless operations and.

Doug: Select spectrum to T mobile is subject to regulatory approvals and other closing conditions and therefore close of this transaction is not a certainty however.

Speaker Change: In 2025, we expect our <unk> investments to continue to be dedicated to mid band deployment and we expect total capital expenditures to decline relative to 2024 levels as we progress further into our <unk> deployment cycle.

Doug: However, as <unk> mentioned, we still expect to obtain such regulatory approvals and meet such closing conditions in mid 2025.

Doug: And complete the sale transaction with T mobile at that time.

Free cash flow in 2024 was 280 million and $88 million increase over 2023, primarily attributable through the profitability improvement or decrease in capital expenditures and an increase in distributions from our equity method investments.

Doug: Accordingly, we are not issuing financial guidance for U S cellular for 2025.

Doug: Slides 15, and 16 provide perspective on expected cash proceeds from the pending transactions and factors, which may impact such proceeds of.

Kristina Bothfeld: Total operating revenues increased 1% in Q4 and 3% for the full year, driven by price increases and growth in broadband connections, partially offset by declining commercial revenue and declines in residential video and voice connections, which have accelerated over the last year. Cash expenses increased 1% in the quarter while decreasing 4% for the full year. In Q4, we started to invest more in sales and marketing to improve broadband penetration rates, as previously discussed. As a result, adjusted EBITDA growth moderated in Q4 compared to the full year. We remain very focused on disciplined cost management, which contributed to the full year adjusted EBITDA improvement of 23%. Full year capital expenditures of $324 million were down as planned as we focused on driving broadband penetration and paced our spending commensurate with our financial capacity.

Speaker Change: As mentioned the pending transaction related to the sale of our wireless operations and.

Doug: Of course, the state of the transaction price is four 4 billion and $100 million of this purchase price is contingent upon U S cellular achieving certain operating and financial targets prior to close.

Speaker Change: Select spectrum to T mobile is subject to regulatory approvals and other closing conditions and therefore close of this transaction is not a certainty.

Doug: Also $400 million of the purchase price is related to spectrum owned by two of our partners, whose interest we have agreed to purchase.

Speaker Change: However, as <unk> mentioned, we still expect to obtain such regulatory approvals.

Speaker Change: Such closing conditions in mid 2025 and.

Doug: Transfers of these interests are pending regulatory approval and the transfers of the underlying licenses to T. Mobile are contingent upon the receipt of regulatory approval.

Speaker Change: And complete the sale transaction with T mobile at that time Accordingly, we are not issuing financial guidance for U S cellular for 2025.

Speaker Change: Slides 15, and 16 provide perspective on expected cash proceeds from the pending transactions and factors, which may impact such proceeds.

Doug: Upon transaction close T mobile will conduct conduct a debt exchange offer pursuant to which holders of U S. Cellular unsecured senior notes with a total principal balance of 2.044 billion. At December 31, 2024 will be offered to exchange their U S cellular debt.

Speaker Change: Of course, the state of the transaction price is four 4 billion and $100 million of this purchase price is contingent upon U S cellular achieving certain operating and financial targets prior to close.

T mobile that the.

Doug: The amount of debt the respective holders elect to exchange will correspondingly reduce transaction proceeds.

Speaker Change: Also $400 million of the purchase price is related to spectrum owned by two of our partners, whose interest we have agreed to purchase.

Kristina Bothfeld: Turning to slide 24, I'm very pleased to share with you our new long-term fiber goals. We've updated our goals to reflect our ongoing fiber expansion and EA-CAM programs. As a reminder, with the EA-CAM program, we will receive approximately $90 million of annual regulatory revenue for 15 years in exchange for bringing higher speeds to some of the most rural geographies in our footprint. Our latest engineering plans estimate bringing fiber to approximately 300,000 addresses, including those funded by the EA-CAM program and those passed along the road. We are now targeting 1.8 million marketable fiber service addresses, a 50% increase from our previous target of 1.2 million. We ended the year at 928,000 fiber service addresses. We are also targeting 80% of total addresses to be served by fiber, up from our previous goal of 60%. We ended 2024 with 52% fiber.

Doug: In addition, U S. Cellular is expected to repay the term loans export credit financing agreement receivable securitization agreement and revolving line of credit at December 31, 2020 for the cumulative principle amount of this debt that requires repayment upon close was 875.

Speaker Change: Transfers of these interests are pending regulatory approval and the transfers of the underlying licenses to T. Mobile are contingent upon the receipt of regulatory approval.

Speaker Change: Upon transaction close T mobile will conduct conduct a debt exchange offer pursuant to which holders of U S. Cellular unsecured senior notes with a total principal balance of 2.044 billion. At December 31, 2024 will be offered to exchange their U S cellular debt for.

Doug: Million.

Doug: As it relates to employee liabilities USA expects the following cash obligations first T. Mobile has agreed to make offers to a significant number of U S cellular employees upon close.

Speaker Change: T mobile that.

For these employees that are ultimately hired by T. Mobile upon close U S. Cellular is obligated to pay these employees accrued wages bonuses and other benefits that were earned prior to the close date.

Speaker Change: The amount of debt the respective holders electric exchange will correspondingly reduce transaction proceeds.

Speaker Change: In addition, U S. Cellular is expected to repay its term loans export credit financing agreement receivable securitization agreement and revolving line of credit at December 31, 2020 for the cumulative principle amount of this stack that requires repayment upon close was 875.

Doug: Second U S cellular expects to have severance obligations for employees that are neither employed by T mobile nor retained by the remaining U S cellular business.

Kristina Bothfeld: Finally, we are expecting to offer speeds of 1 gig or higher to at least 95% of our footprint. Yes, that is 95% of our footprint, up from our previous goal of 80%. We finished 2024 with 74% at gig speeds. We will use a combination of fiber and coax technologies to achieve this goal. On the right side of the slide, you can see the service address mix at year-end and the projected service address mix once these goals are met. We are planning to reduce the addresses served by copper in our footprint to just 5% over time. On the next slide, you can see our 2025 priorities that support our vision of becoming a fiber-centric company. First is continuing our fiber program. As you can see, we are targeting to deliver 150,000 fiber service addresses in 2025.

Doug: These obligations are expected to include cash obligations of severance crude bonus and other benefits.

Speaker Change: As it.

Doug: And they include cash obligations to settle the accelerated vesting of certain stock based awards.

Speaker Change: Hits to employee liabilities U S cellular expects the following cash obligations.

Speaker Change: T Mobile has agreed to make offers to a significant number of U S cellular employees upon close for.

Doug: U S. Cellular are also expects to incur cash income tax obligations related to the gain on sale in the T mobile transaction and the range of $225 million to $325 million.

Speaker Change: These employees that are ultimately hired by T. Mobile upon close U S. Cellular is obligated to pay these employees accrued wages bonuses and other benefits that were earned prior to the close date.

Doug: The spectrum transactions with Verizon and AT&T are contingent upon the close of the sale of the wireless business and select spectrum to T mobile regulatory approval and other closing conditions the spectrum transaction with AT&T as a similar contingency related to one of U S cellular's designated entities.

Speaker Change: U S cellular expects to have severance obligations for employees that are neither employed by T mobile nor retained by the remaining U S cellular business.

Speaker Change: These obligations are expected to include cash obligations of severance accrued bonus and other benefits.

Doug: With 232 million of the spectrum in this deal subject to U S. Cellular's purchase of its partners' ownership interest, which as noted previously is pending regulatory approval.

Speaker Change: And they include cash obligations to settle the accelerated vesting of certain stock based awards.

Kristina Bothfeld: We expect to use our internal construction crews for approximately one-third of fiber service address delivery in 2025. We estimate cost savings as high as 30% from using our internal crews versus external contractors, and there are also intangible benefits related to these associates being part of our culture and living and working in our communities. The teams will also be focused on sales execution. During 2025, we will invest heavily in sales and marketing programs to drive increased penetration in our fiber markets, including staffing up our door-to-door sales teams, both internally as well as augmenting with third-party vendors. We expect penetration to continue to grow as we sell into the markets we've previously launched. Also supporting sales, in Q4, we launched TDS Mobile, our MVNO product, in limited markets. During 2025, we intend to fully launch TDS Mobile across our entire footprint.

Speaker Change: U S. Cellular are also expects to incur cash income tax obligations related to the gain on sale in the T mobile transaction and the range of $225 million to $325 million.

Doug: Further U S cellular expects to incur cash income tax obligations related to the gain on sale of spectrum in these transactions with Verizon and AT&T in the range of $325 million to $375 million.

Speaker Change: The spectrum transactions with Verizon and AT&T are contingent upon the close of the sale of the wireless business and select spectrum to T mobile regulatory approval and other closing conditions the spectrum transaction with AT&T as a similar contingency related to one of U S cellular's designated entities.

Doug: Lastly, U S cellular expects to incur additional legal advisory and investment banking fees in 2025, and 2026 at <unk> through the respective close dates of the T mobile and spectrum transactions.

Doug: In addition, as discussed by LP in periods. After the close of the T mobile transaction USA expects to incur decommissioning costs related to certain naked towers.

Speaker Change: With $232 million of the spectrum in this deal subject to U S. Cellular's purchase of its partners ownership interest, which as noted previously is pending regulatory approval.

Doug: U S. Cellular is still evaluating the targeted capital structure for the remaining U S. Cellular business, which is also expected to impact cash available at U S. Cellular after close of the respective transactions.

Speaker Change: Further U S cellular expects to incur cash income tax obligations related to the gain on sale of spectrum in these transactions with Verizon and AT&T in the range of $325 million to $375 million.

Kristina Bothfeld: We believe that adding mobile to our product portfolio is complementary to our broadband offerings and enables us to offer a full suite of competitive products and services to our customers. Lastly, a top priority for 2025 is to execute on our transformation efforts. We've been transforming into a fiber company in a meaningful way for several years now. We're now also focused on streamlining our operations to enhance elements of our customer experience and further improve our margins and cost structure in the future. On slide 26, we have provided guidance for 2025. We are forecasting total telecom revenues of $1.03 to 1.07 billion. This reflects top line growth where we have made fiber investments offset by industry-wide pressures in video, voice, and wholesale revenues, along with the full year impact from divestitures. Additionally, we expect average residential revenue per connection growth to moderate in 2025.

Again. This is a summary of the significant factors that are expected to impact net proceeds from the pending transactions along with various dependencies and contingencies.

Speaker Change: Lastly, U S cellular expects to incur additional legal advisory and investment banking fees in 2025, and 2026 at end through the respective close dates of the T mobile and spectrum transactions.

I will now turn the call over to Chris thoughtful Chris. Thank you Doug Good morning, everyone I'm happy to be here today to share Tds Telecom 2024 accomplishments shown on slide 19 over the past year, we've made significant progress executing on a number of initiatives that support our long term vision and goals, we've advanced our fiber strategy.

Speaker Change: In addition, as discussed by LP in periods. After the close of the T mobile transaction USA expects to incur decommissioning costs related to certain naked towers.

Speaker Change: U S. Cellular is still evaluating the targeted capital structure for the remaining U S. Cellular business, which is also expected to impact cash available at U S. Cellular after close of the respective transactions.

Doug: Growing the number of fiber service addresses by 129000 in 2024, surpassing our goal of 125000.

Now have more than 50% of our Addison served by fiber and we plan to significantly increase that number as youll see in a few slides.

Speaker Change: Again. This is a summary of the significant factors that are expected to impact net proceeds from the pending transactions along with various dependencies and contingencies.

Doug: Our fiber strategy is working in 2024, we increased residential revenues by 6% as we saw growth in both broadband connections and average revenue per connection.

Speaker Change: I will now turn the call over to Chris thoughtful Chris. Thank you Doug Good morning, everyone I'm happy to be here today to share Tds Telecom 2024 accomplishments shown on slide 19 over the past year, we've made significant progress executing on a number of initiatives that support our long term vision and goals, we've advanced our fiber strategy.

Kristina Bothfeld: Adjusted EBITDA is projected to be between $320 million and $360 million in 2025. Our 2025 priorities, along with the recent divestitures, will put pressure on adjusted EBITDA this year. We are investing in ramping up our sales and marketing efforts, as well as fully staffing and scaling our internal construction teams. Additionally, we are investing in transformation initiatives to drive future cost savings and efficiencies. In 2025, we plan to deliver 150,000 fiber service addresses, up from what we delivered in 2024, and we expect capital expenditures to be in the range of $375 to 425 million, up from the $324 million in 2024. The increased spend is primarily related to EA-CAM, which will bring fiber deeper into our markets. One more note on 2025 guidance. The ILEC and cable divestitures completed in 2024 affect year-over-year comparisons.

Doug: The growth in broadband connections was driven by investments in our fiber markets.

Doug: Topline growth coupled with continued cost management drove a 23% increase in adjusted EBITDA year over year.

Doug: And lastly, we spend 2020 for planning and engineering for enhanced ATM, which is a multiyear program with construction starting in 2025. This will bring faster broadband speeds to our customers and further reduce our reliance on copper technology.

Speaker Change: Growing the number of fiber service addresses by 129000 in 2024, surpassing our goal of 125000.

Speaker Change: Now have more than 50% of our addresses served by fiber and we plan to significantly increase that number as youll see in a few slides.

Doug: Turning to slide 20.

Speaker Change: Our fiber strategy is working in 2024, we increased residential revenues by 6% as we saw growth in both broadband connections and average revenue per connection.

Doug: Throughout 2024, as we deliver new fiber service addresses the teams are focused on ramping up sales and marketing to drive increased penetration to those newly launched addresses.

Speaker Change: The growth in broadband connections was driven by investments in our fiber market.

Doug: We made progress in increasing the number of door to door sales reps, which has helped improve net ads.

Speaker Change: Topline growth coupled with continued cost management drove a 23% increase in adjusted EBITDA year over year.

Doug: Our fourth quarter was the strongest quarter of the year, adding 7900 residential broadband net adds.

Kristina Bothfeld: In aggregate, the companies that were divested contributed $16 million in annual revenues. Going forward, we will continue to look for opportunities to optimize our portfolio, especially in copper markets where there's not an economic path to fiber. Before turning over the call, I want to thank the entire TDS Telecom team. Thanks to all your efforts, we ended the year strong with a lot of momentum. We are excited about 2025 and the opportunities ahead. I'll now turn the call back to Walter for closing remarks.

Speaker Change: And lastly, we spent 2020 for planning and engineering for enhanced ATM, which is a multiyear program with construction starting in 2025. This will bring faster broadband speeds to our customers and further reduce our reliance on copper technology.

Doug: On Slide 21, you can see we grew total service addresses 6% year over year.

Doug: Shown on the right side of the slide we are seeing increased take rates for higher broadband speeds with 81% of residential broadband customers, taking 100, Meg or higher and 22%, taking one gig or higher at the end of the quarter.

Speaker Change: Turning to slide 20.

Speaker Change: Throughout 2024, as we deliver new fiber service addresses the teams were focused on ramping up sales and marketing to drive increased penetration to those newly launched addresses.

Doug: When looking at new customers that we added in the quarter, 52% took speeds of one gig or higher.

Walter Carlson: As you just heard from the business units, we have an extraordinarily busy and exciting year ahead of us. I am proud to be part of this talented team. I do want to recognize and thank Ted for his 40 years of service to this organization as CEO. As many of you know, Ted will continue on with the enterprise as Vice Chair. Ted's contributions to the company over the past 51 years are remarkable, and I'm very pleased to be working side by side with him through this transformation of TDS. With that, I'll turn it back over to Colleen for Q&A.

Doug: Demand for faster speeds remained strong.

Speaker Change: We made progress in increasing the number of door to door sales reps, which has helped improve net ads.

Doug: Our broadband investments are producing positive results.

Speaker Change: Our fourth quarter was the strongest quarter of the year, adding 7900 residential broadband net adds.

Doug: As shown on slide 22 average residential revenue per connection was up 5% year over year due primarily to price increases.

Speaker Change: On Slide 21, you can see we grew total service addresses 6% year over year.

Doug: Looking at the chart on the right. We grew residential revenues, 6% year over year with expansion markets generating $114 million compared to $75 million last year.

Speaker Change: Shown on the right side of the slide we are seeing increased take rates for higher broadband speeds with 81% of residential broadband customers, taking 100, Meg or higher and 22%, taking one gig or higher at the end of the quarter.

Doug: On slide 23, I'll touch on the financial highlights.

Doug: Total operating revenues increased 1% in the fourth quarter and 3% for the full year.

When looking at new customers that we added in the quarter, 52% took speeds of one gig or higher.

Doug: Driven by price increases and growth in broadband connections, partially offset by decline in commercial revenue and declines in residential video and voice connection which have accelerated over the last year.

Vicki Villacrez: Okay, Regina, we are now ready for the first question.

Speaker Change: Demand for faster speeds remained strong.

Operator: We'll take our first question from the line of Ric Prentiss with Raymond James. Please go ahead.

Speaker Change: Our broadband investments are producing positive results.

Speaker Change: As shown on slide 22 average residential revenue per connection was up 5% year over year due primarily to price increases.

Ric Prentiss: Thanks. Good morning, everybody.

Doug: Yeah.

Doug: Cash expenses increased 1% in the quarter, while decreasing 4% for the full year in the fourth quarter, we started to invest more in sales and marketing to improve broadband penetration rate as previously discussed.

Vicki Villacrez: Good morning, Ric.

Walter Carlson: Good morning.

Ric Prentiss: Hey, Walter, welcome. A couple of quick ones for you, Walter. Why was now the right time to take on the role? Obviously, thanks for those top priorities, but what changes with you at the helm? Why now and what changes? I'll have one for USM and TDS.

Looking at the chart on the right. We grew residential revenues, 6% year over year with expansion markets generating $114 million compared to $75 million last year.

Doug: As a result, adjusted EBITDA growth moderated in the fourth quarter compared to the full year.

Speaker Change: On slide 23, I'll touch on the financial highlights.

Doug: We remain very focused on disciplined cost management, which contributed to the full year adjusted EBITDA improvement of 23%.

Walter Carlson: Why now? I think that the TDS Board has been engaged in a succession planning review over a number of years. As you heard in this call, we are at a truly transformative time with the sale of the wireless operations and spectrum to T-Mobile and to the other entities that are buying that spectrum. This is a transformative time, and I think the board felt that with this transformation, now is the right time to make a change at the executive level. As I mentioned, Ted's not going away. He's staying on as vice chair, and he will have important roles. To the second part of the question, what changes? I think that there will be great continuity, Ric, in terms of the mission and the businesses that we will own post these transactions.

Speaker Change: Total operating revenues increased 1% in the court in the fourth quarter and 3% for the full year.

Doug: Full year capital expenditures of $324 million were down as planned.

Speaker Change: Driven by price increases and growth in broadband connections, partially offset by decline in commercial revenue and declines in residential video and voice connection which has accelerated over the last year.

Doug: As we focus on driving broadband penetration and pace, our spending commensurate with our financial capacity.

Doug: Turning to slide 24, I'm very pleased to share with you our new long term fiber goals, we've updated our goals to reflect our ongoing fiber expansion and E. I can't programs as a reminder, with the a Cam program, we will receive approximately $90 million of annual regulatory revenue for 15 years.

Speaker Change: Yeah.

Speaker Change: Cash expenses increased 1% in the quarter, while decreasing 4% for the full year in the fourth quarter, we started to invest more in sales and marketing to improve broadband penetration rate as previously discussed.

Speaker Change: As a result, adjusted EBITDA growth moderated in the fourth quarter compared to the full year.

Doug: In exchange for bringing higher speeds to some of the most rural geographies in our footprint.

Speaker Change: We remain very focused on disciplined cost management, which contributed to the full year adjusted EBITDA improvement of 23%.

Doug: Our latest engineering plans estimate, bringing fiber to approximately 300000 addresses.

Speaker Change: Full year capital expenditures of $324 million were down as planned.

Doug: Including those funded by the U can program and those passed along the road.

As we focused on driving broadband penetration and pace, our spending commensurate with our financial capacity.

Doug: We are now targeting $1 8 million marketable fiber service addresses a 50% increase from our previous target of $1 2 million. We ended the year at 928000 fiber service addresses.

Walter Carlson: We own two, what I believe to be very outstanding businesses, the fiber business and the tower business. I don't view that so much as a change, but as a course correction as we exit the wireless operations.

Speaker Change: Turning to slide 24, I'm very pleased to share with you our new long term fiber goals, we've updated our goals to reflect our ongoing fiber expansion and E. A cam program.

Doug: We are also targeting 80% of total addresses to be served by fiber up from our previous goal of 60%. We ended 2024 with 52% fiber.

Speaker Change: As a reminder, with the a Cam program, we will receive approximately $90 million of annual regulatory revenue for 15 years in exchange for bringing higher speeds to some of the most rural geographies in our footprint.

Ric Prentiss: Makes sense. Thanks for that. Speaking of towers, LT and Doug, I've pushed for a long time the tower reporting, so we appreciate that. Also, thanks for that slide detailing the cash costs around the transactions. That's very helpful. On the tower side, there's a next step that we look at since we've covered the tower space since January of 1999. Straight line adjustment, amortization of prepaid rent, and moving possibly to a REIT-style AFFO reporting, is that something still on the path as you guys move through this transformative time?

Doug: And finally, we are expecting to offer speeds of one gig or higher to at least 95% of our footprint. Yes that is 95% of our footprint up from our previous goal of 80%. We finished 2024 with 74% at gig speeds, we will use a combination of fiber and coax technologies to achieve this goal.

Speaker Change: Our latest engineering plans estimate bringing fiber to approximately 300000 addresses include.

Speaker Change: Including those funded by the U can program and those passed along the road.

Speaker Change: We are now targeting $1 8 million marketable fiber service addresses.

Doug: On the right side of the slide you can see the service address mix at year end and the projected service address next once these goals are met we are planning to reduce the addresses served by copper in our footprint to get 5% overtime.

Speaker Change: 50% increase from our previous target of $1 2 million. We ended the year at 928000 fiber service addresses.

Speaker Change: We are also targeting 80% of total addresses to be served by fiber up from our previous goal of 60%. We ended 2024 with 52% fiber.

Doug Chambers: Yeah. Good morning, Ric. It is in our plans. It's something that post-close of the T-Mobile transaction, we would plan to provide AFFO reporting. It will become important then. We'll have a significant straight line GAAP adjustments in revenue that we'll need to show those adjustments. It is our intention to move to AFFO reporting post T-Mobile close.

Doug: Okay.

Doug: On the next slide you can see our 2025 priorities that support our vision of becoming a fiber centric company.

Speaker Change: And finally, we are expecting to offer speeds of one gig or higher to at least 95% of our footprint. Yes that is 95% of our footprint up from our previous goal of 80%. We finished 2024 with 74% at gig speeds, we will use a combination of fiber and coax technologies to achieve this goal.

Doug: Or is it continuing our fiber program as you can see we are targeting to deliver 150000 fiber service addresses in 2025.

Doug: We expect to use our internal construction crews for approximately one third of fiber service that has delivery in 2025, we estimate cost savings as high as 30% from using our internal versus.

Ric Prentiss: That's great.

Vicki Villacrez: Hey, Ric, let me just clarify as well. You asked about the REIT structure, right? There's a variety of different hurdles that you have to cross in order to be able to structure your tower business as a REIT. Right now, from a corporate governance, corporate organization, enterprise organization perspective, we're not in a place to structure ourselves as a REIT. That doesn't mean that can't change in the future. I just wanted, when Doug said that is in our plans, I want to make sure I clarify. Reporting AFFO is organizing ourselves as a REIT is not right now on the roadmap.

Speaker Change: On the right side of the slide you can see the service address mix at year end and the projected service address next once these goals are met we are planning to reduce the addresses served by copper in our footprint to just 5% overtime.

Doug: Versus external contractors and there are also intangible benefits related to these associates being part of our culture and living and working in our communities.

Doug: The teams will also be focused on sales execution. During 2025, we will invest heavily in sales and marketing programs to drive increased penetration in our fiber markets, including staffing up our door to door sales team, both internally as well as augmenting with third party vendors.

Speaker Change: Okay.

Speaker Change: On the next slide you can see our 2025 priorities that support our vision of becoming a fiber centric company.

First it continuing our fiber program as you can see we are targeting to deliver 150000 fiber service addresses in 2025.

Doug: We expect penetration to continue to grow as we sell into the market. We've previously launched.

Speaker Change: We expect to use our internal construction crews for approximately one third of fiber service that just delivery in 2025, we estimate cost savings as high as 30% from using our internal crudes versus external contractors and there are also intangible benefits related to these associates being part of our culture and living and working in our communities.

Doug: Also supporting sales in the fourth quarter, we launched Tds mobile our <unk> product in limited markets. During 2025, we intend to fully launched Tds mobile across our entire footprint, we believe that adding mobile to our product portfolio is complementary to our broadband offerings and enables us to offer a full suite of <unk>.

Ric Prentiss: Okay. Makes sense. Good to have a roadmap. On TDS Telecom side, obviously a significant increase in the service addresses target, 50% up, 1.2 to 1.8. Give us a sense of what is the definition of long term. How many years are we thinking about? What's the pacing of it? Why not 2 million or why not 2.5 million? Why is 1.8 the right number?

Speaker Change: The teams will also be focused on sales execution. During 2025, we will invest heavily in sales and marketing programs to drive increased penetration in our fiber markets, including staffing up our door to door sales team both internally as well as augmenting with third party vendors we expect.

Doug: Competitive products and services to our customers.

Doug: And lastly, a top priority for 2025 is to execute on our transformation efforts, we've been transforming into a fiber company in a meaningful way for several years now. We're now also focused on streamlining our operations to enhance elements of our customer experience and further improve our margins and cost structure in the future.

Kristina Bothfeld: Yep. Thanks, Ric, for your question. We are extremely excited about these new goals. Really what these goals represent is two big fiber build programs at TDS Telecom. One being EA-CAM, which we said is 300,000 addresses and reaching our most rural parts of our geographies. The second is our ongoing fiber expansion program. As you recall, we launched fiber services in nearly 100 communities prior to the end of 2023. We're still building out those communities. Really what these goals represent is largely completing those two programs, our expansion programs and building out to those 100 communities, as well as the EA-CAM programs. We're going to continue to pace our spending commensurate with our financial capacity and objectives.

Speaker Change: Penetration to continue to grow as we sell into the market. We've previously launched.

Speaker Change: Also supporting sales in the fourth quarter, we launched Tds mobile our nvme product eliminate market. During 2025, we intend to fully launched Tds mobile across our entire footprint, we believe that adding mobile to our product portfolio is complementary to our broadband offerings and enables us to offer a full suite of <unk>.

Doug: On slide 26, we have provided guidance for 2025.

Doug: We are forecasting total telecom revenues of 1.03 billion to 1.07 billion. This reflects topline growth, where we have made fiber investment offset by industry wide pressures and video voice and wholesale revenues along with a full year impact from divestitures.

Speaker Change: Competitive products and services to our customers.

Doug: We expect average residential revenue per connection growth to moderate in 2025.

Speaker Change: And lastly, a top priority for 2025 is to execute on our transformation efforts, we've been transforming into a fiber company in a meaningful way for several years now. We're now also focused on streamlining our operations to enhance elements of our customer experience and further improve our margins and cost structure in the future.

Doug: Adjusted EBITDA is projected to be between $320 million and $360 million in 2025.

Doug: Our 2025 priorities along with the recent divestitures will put pressure on adjusted EBITDA. This year, we are investing and ramping up our sales and marketing efforts as well as fully staffing and scaling our internal construction team. Additionally, we are investing in transformation initiatives to drive future cost savings and efficiencies.

Ric Prentiss: Long term could mean the end of the decade, or what are we thinking the long-term path is?

Speaker Change: On slide 26, we have provided guidance for 2025.

Vicki Villacrez: Again, Ric, this is Vicki. I'll jump in here. This is doubling down on our commitment to the community builds we already have in progress. Depending on the pacing of the build on a per market basis, some of those finish up in 2 years, some of those finish up in 3 years. Some of these finish up, have a longer build, the larger communities might have larger builds. It is commensurate with our construction schedules and also as we see progress going forward and are able to fund with our capacity. I would say over the next 5 years is really a reasonable long-term goal.

Speaker Change: We are forecasting total telecom revenues of 1.03 billion to 1.07 billion. This reflects topline growth, where we have made fiber investment offset by industry wide pressures and video voice and wholesale revenues along with a full year impact from divestitures.

Doug: In 2025, we plan to deliver 150000 fiber service addresses up from what we delivered in 2024, and we expect capital expenditures to be in the range of $375 million to $425 million up from the $324 million in 2020 for the increased spend is primarily related to E I can which will.

Additionally, we expect average residential revenue per connection growth to moderate in 2025.

Speaker Change: Adjusted EBITDA is projected to be between $320 million and $360 million in 2025.

Doug: Bring fiber deeper into our markets.

Doug: One more note on 2025 guidance the ILEC in cable divestitures completed in 2024 effect year over year comparison in aggregate. The companies that were divested contributed $16 million in annual revenues.

Speaker Change: Our 2025 priorities along with our recent divestitures will put pressure on adjusted EBITDA. This year, we are investing and ramping up our sales and marketing efforts as well as fully staffing and scaling our internal construction teams. Additionally, we are investing in transformation initiatives to drive future cost savings and efficiencies.

Doug: Going forward, we will continue to look for opportunities to optimize our portfolio, especially in copper markets, where there's not an economic path to fiber.

Ric Prentiss: Great. Again, Walter, welcome and look forward to working with you closer.

Walter Carlson: Same here. Thank you.

Speaker Change: In 2025, we plan to deliver 150000 fiber service addresses up from what we delivered in 2024, and we expect capital expenditures to be in the range of $375 million to $425 million up from the $324 million in 2024.

Colleen Thompson: Okay, next question.

Doug: Before turning over the call I want to thank the entire Tds Telecom team. Thanks for all your efforts. We ended the year strong with a lot of momentum. We are excited about 2025 and the opportunities ahead.

Operator: Our next question comes from the line of Sebastiano Petti at JPMorgan. Please go ahead.

Sebastiano Petti: Good morning. Thanks for the question and congratulations, Walter, as well. Just appreciate the color on the TDS. EBITDA for the year will be a little bit burdened by some of the investments that you're making in the sales force to drive penetration as well as some of the difficult comps from some of the divestitures that you did announce. Not asking for 2026 guidance and beyond, but should we anticipate that these are now more ongoing run rate costs within the system trying to drive this increased penetration? Or should we see perhaps a recovery, for lack of better term, as we extrapolate forward beyond 2025? That's on the TDS side. I guess on the C-band on the UScellular side, just thinking about C-band and just thinking about your wireless portfolio overall, I guess maybe for L.T. or Doug.

Walter Thompson: I'll now turn the call back to Walter for closing remarks.

Speaker Change: The increased spend is primarily related to E com, which will bring fiber deeper into our markets.

Doug: Yeah.

Speaker Change: As you just heard from the business units, we have an extraordinarily busy and exciting year ahead of us.

Speaker Change: One more note on 2025 guidance the ILEC in cable divestitures completed in 2024 effect year over year comparison in aggregate. The companies that were divested contributed $16 million in annual revenues.

Doug: I am proud to be part of this talented team.

Doug: I do want to recognize and thank Ted for his 40 years of service to this organization as CEO.

Speaker Change: Going forward, we will continue to look for opportunities to optimize our portfolio, especially in copper markets, where there's not an economic path to fiber.

Doug: And as many of you know Ted will continue on with the enterprise as Vice chair.

Speaker Change: Before turning over the call I want to thank the entire Tds Telecom team. Thanks for all your efforts. We ended the year strong with a lot of momentum. We are excited about 2025 and the opportunities ahead I'll now turn the call back to Walter for closing remarks.

Doug: <unk> contributions to the company over the past 51 years, a remarkable and I'm very pleased to be working side by side with them through this transformation of pdfs.

Colleen Thomson: With that I'll turn it back over to Colleen for Q&A.

Speaker Change: Yeah.

Sebastiano Petti: As you're thinking about quote unquote, opportunistically monetizing the remainder of your spectrum, predominantly C-band, you do have some time before those build-out requirements are needed. In any way, are you thinking about the FCC's potential changes to the spectrum cap coming out of the FCC, and maybe does that factor into your view of potential monetization of the C-band or the timing, given that maybe it opens up the bidding process to additional parties? Just any color you might think about that would be helpful. Thank you.

Colleen Thomson: Okay. Regina we are now ready for the first question.

Speaker Change: As you just heard from the business units, we have an extraordinarily busy and exciting year ahead of us.

Regina: We will take our first question from the line of Ric Prentiss with Raymond James. Please go ahead.

Speaker Change: I am proud to be part of this talented team.

Ric Prentiss: Thanks, Good morning, everybody.

Speaker Change: I do want to recognize and thank Ted for his 40 years of service to this organization as CEO.

Speaker Change: Good morning, Brian Good morning.

Ric Prentiss: Hey, Walter welcome.

Speaker Change: Couple of quick ones for you Walter why was now the right time to take on the role and obviously, thanks for those top priorities, but what changes with you at the homes. So why now and what changes and then I'll have one for.

Speaker Change: And as many of you know Ted will continue on with the enterprise as Vice chair.

Speaker Change: <unk> contributions to the company over the past 51 years are remarkable and I'm very pleased to be working side by side with him through this transformation of Tds.

Ric Prentiss: Yes.

Ric Prentiss: So why now I think the Tds Board has been engaged in a <unk>.

Kristina Bothfeld: Hi, Sebastiano. Thank you for your question. I'll take the first one regarding TDS Telecom guidance for 2025 and kind of outlook beyond that. First, I want to say that we're very pleased with our growth in 2024. As you saw, it was 23% adjusted EBITDA growth year over year. This beat even our own internal expectations. I do want to acknowledge that some of that growth in 2024 was due to spending that was deferred from 2024 to 2025. That is affecting year over year comparison. Also, you heard me say that we're investing in a few key areas to support our 2025 priorities. One is sales and marketing to drive penetration. Another is internal construction crews to drive more addresses at the same amount of capital for lower capital costs. Lastly is the transformation efforts.

Speaker Change: With that I'll turn it back over to Colleen for Q&A.

Ric Prentiss: Session planning review over a number of years.

Ric Prentiss: And as you've heard in this call we are truly transformative time.

Regina: Okay. Regina we are now ready for the first question.

Speaker Change: We will take our first question from the line of Ric Prentiss with Raymond James. Please go ahead.

Ric Prentiss: With the sale of the wireless operations and spectrum.

Ric Prentiss: Thanks, Good morning, everybody.

Ric Prentiss: The PD team.

Ric Prentiss: T mobile into the other entities that are buying that spectrum. So this is a transformative time.

Speaker Change: Good morning, good morning, good morning.

Speaker Change: Hey, Walter welcome.

Speaker Change: Couple of quick ones for you Walter why was now the right time to take on the role and obviously, thanks for those top priorities, but what changes with you at the helm. So why now and what changes and then I'll have one for.

Ric Prentiss: I think the board felt that with this transformation now was the right time to make a change at the executive level.

Speaker Change: Mentioned, Ted is not going away he is staying on as vice chair.

Speaker Change: Yes.

Speaker Change: We'll have important roles so to the second part of the question what changes.

Speaker Change: So why now I think the Tds Board has been engaged in a <unk>.

Kristina Bothfeld: We're investing to drive future margin improvement and expansion, as well as improve our customer experience. All of these put pressure on adjusted EBITDA in the near term, but they're all to drive future growth. Yes, we don't give guidance beyond 2025, but all the investments we're making are to drive future growth.

Speaker Change: That there will be.

Speaker Change: <unk>.

Speaker Change: Succession planning review over a number of years.

Speaker Change: Great continuity Rick.

Speaker Change: In terms of the mission and the businesses that we will own post these transactions. So we own two what I believe to be very outs.

Speaker Change: As you've heard in this call we are truly transformative time.

The sale of the wireless operations and spectrum.

Speaker Change: Outstanding businesses.

Speaker Change: <unk>.

Speaker Change: T mobile into the other entities that are buying spectrum. So this is a transformative time.

Speaker Change: Our fiber business and the tower business.

Laurent Therivel: Hey, Sebastiano, I'll tackle question two. This is L.T. Certainly what you talked about with the spectrum cap could adjust the way potential acquirers think about our spectrum. There's an implication of your question that I want to make sure I clarify, which is, hey, did you wait to sell the spectrum in order to have that spectrum cap or adjustments to that spectrum cap come in place? The answer is no. It doesn't necessarily change the way we're thinking about monetization of that spectrum. When we reached out to start the spectrum sale process, we were in discussions with over 20 companies. Most of those companies have absolutely no problem at all with the spectrum cap. We sold some of our spectrum to those companies that have no problems with the spectrum cap.

Speaker Change: I don't view that so much has changed.

Speaker Change: I think the board felt that with this transformation now was the right time to make a change at the executive level.

Speaker Change: As a course correction.

Speaker Change: Exit the wireless operations.

Speaker Change: Okay. Thanks for that.

Speaker Change: Mentioned, Ted is not going away he is staying on as vice chair.

Speaker Change: Taking of towers.

Speaker Change: Doug push for a long time to tell our reporting so we appreciate that and also thanks for the slide detailing the cash.

Speaker Change: We will have important roles so to the second part of the question what changes.

Speaker Change: Cash costs around the transactions, that's very helpful. But on the tower side. There's a next step that we look at since we covered the tower space since January of 19 behind.

Speaker Change: Think that there will be.

Speaker Change:

Speaker Change: Great continuity rig.

Speaker Change: In terms of the mission and the businesses that we will own post these transactions. So we own two what I believe to be very outstanding.

Speaker Change: Straight line.

Speaker Change: Line adjustment amortization of prepaid rent and moving possibly to a REIT style.

Speaker Change: Outstanding businesses.

Speaker Change: Our reporting is that something still on the path as you guys move through this transformative time.

Speaker Change: Our fiber business and the tower business.

I don't view that so much has changed.

Greg: Yeah. Good morning, Greg It is in our plans.

Speaker Change: As a course correction.

Speaker Change: The wireless operations.

Greg: It's something that post close of the T. Mobile transaction, we would plan to provide <unk> reporting that it will become important then we'll have <unk>.

Speaker Change: Okay. Thanks for that.

Speaker Change: Taking of towers.

Speaker Change: Doug push for a long time to tell our reporting so we appreciate that and also thanks for the slide detailing the cash.

Laurent Therivel: That wasn't what drove our decision making, and it won't be what drives our decision making moving forward. What will drive it is, do we get good value for our spectrum? What you saw was the spectrum that we sold was sold for over book and over market. We're pleased with how we did that. We think we're still sitting on very valuable spectrum. Opportunistic does not mean waiting for the spectrum cap. Opportunistic means waiting for what we believe to be a fair offer and a good opportunity to sell it.

Greg: <unk> straight line GAAP adjustments in revenue that we'll need to.

Speaker Change: Cash costs around the transactions that's very helpful.

Greg: So those adjustments and it is our intention to move to <unk> reporting post T mobile close.

Speaker Change: Our side, there's a next step that we look at it since we covered the tower space since January of 19 behind.

Greg: Hey, Rick when you just categorize well you asked about the REIT structure right I mean, there's a variety of different hurdles that you have to cross in order to be able to structure. Your tower business as a REIT right now from a corporate governance corporate organization Enterprise organization perspective, we're not in a place too.

Speaker Change: Straight line.

Speaker Change: Late line adjustment amortization of prepaid rent and moving possibly to a REIT style.

All reporting is that something still on the path as you guys move through this transformative time.

Laurent Therivel: I will briefly talk about the spectrum cap, which is that I am encouraged by some of the conversations from Chairman Carr and from the rest of the FCC when it comes to how they are thinking about spectrum, how they're thinking about spectrum transactions, and how they're thinking about freeing up more spectrum for use by industry. This is an FCC that appears to understand the importance of investment and investment in the private sector, putting money behind spectrum, putting money behind radios, and putting capital to work to connect people. I'm encouraged by the moves. I certainly think they're the right things to do to encourage investment. No, that's not driving our decision making when it comes to monetizing it.

Yeah. Good morning, Greg It is in our plans.

Speaker Change: It's something that post closing of the T. Mobile transaction, we would plan to provide <unk> reporting that it will become important then we will have a significant straight line GAAP adjustments and revenue that will need to show those adjustments and it is our intention to move to <unk> report.

Greg: Structure ourselves as a REIT.

That doesn't mean, they can't change in the future, but I just wondered when Doug said that isn't our plans I want to make sure I clarify reporting <unk> is organized organizing ourselves as a REIT is not right now on the road.

Speaker Change: Okay makes sense because they have a roadmap and then on Tds Telecom side, obviously, a significant increase in the service addresses target.

Speaker Change: During post T mobile close.

Speaker Change: Hey, Rick when he just got horizon, well you asked about the REIT structure right I mean, there's a variety of different hurdles that you have to cross in order to be able to structure. Your tower business as a REIT right now from a corporate governance corporate organization Enterprise organization perspective, we're not in a place to.

Greg: 50% up one 2% one eight.

Speaker Change: Give us a sense of.

Speaker Change: What is the definition of long time long term how many years are we thinking about what's the pacing of it and why not $2 million or why not $2 5 million why why is one eight the right number.

Speaker Change: To structure ourselves as a REIT.

Sebastiano Petti: Very helpful. Thank you.

Speaker Change: Yeah. Thanks, Rick for your question. We are extremely excited about these new goals and really what these goals represent is too big programs Big fiber build program that telecom, one being a cam, which we said is 300000 addresses and reaching our most rural parts of of our geographies.

Speaker Change: That doesn't mean that can't change in the future, but I just wondered when Doug said that is in our plans I want to make sure I clarify reporting <unk> is organized organizing ourselves as a REIT is not right now on the revenue.

Operator: Our next question comes from the line of Sergey Dluzhevskiy with Gamco Investors. Please go ahead.

Sergey Dluzhevskiy: Good morning. Thank you guys for taking the questions. My first question is for Walter. Walter, congratulations again on assuming the CEO position. You talked a little bit about the company's 2025 priorities. Maybe if you could share your medium to long term vision for the company. Where do you see TDS and its companies in 3 to 5 years?

Speaker Change: Okay makes it makes sense because they have a roadmap and then on Tds Telecom side, obviously, a significant increase on the service addresses target.

Speaker Change: The second is our ongoing fiber expansion program. So as you recall, we launched a fiber services and nearly 100 communities. Prior to the end of 2023, we're still building out those communities. So really what vehicles represent is largely completing those two programs are expansion programs and building out to those hundred commute.

50% up one two to $1 eight.

Speaker Change: There was a sense of what is the definition of long time long term. How many years are we thinking about what's the pacing of it and why not $2 million or why not $2 5 million why is one eight the right number.

Walter Carlson: Sergey, first of all, nice to meet you over the phone. Look forward to meeting you in person. I did want to set out the 2025 priorities very clearly and spend my time in the prepared remarks on that. Those are, in my mind, the predicates to what I believe the 3 to 5 year and longer time horizon should be. If we make these steps in 2025, we will be positioned extremely well for longer term growth in both our towers and our fiber business. I think that TDS has a history of being opportunistic, looking to grow, looking to leverage its skills and talents of its individuals, in its areas of concentration. We will remain focused on delighting our customers in the field of communications. I think, 3 to 5 years, you'll see much more of that.

Speaker Change: As well as the a Cam program and we're going to continue to pace, our spending commensurate with our financial capacity and objectives.

Speaker Change: Yes. Thanks, Rick for your question. We are extremely excited about these new goals and really what these goals represent is too big programs big fiber build programs at telecom, one being a cam, which we said is 300000 addresses and reaching our most rural parts of our geographies.

Speaker Change: So long term could be the end of the decade or what are we thinking long term path is.

Again, Rick this is Vicki I'll jump in here.

Speaker Change: The second is our ongoing fiber expansion program. So as you recall, we launched a fiber services and nearly 100 communities. Prior to the end of 2023, we're still building out those communities. So really what vehicles represent is largely completing those two programs are expansion programs and building out to those hundred community.

Speaker Change: This is doubling down on our commitment to the community builds we already have in progress and depending on the pacing of the bill on a per market basis. Some of those finish up in two years. Some of those finish up in three years. Some of these finish up you don't have a longer build the larger community.

Speaker Change: As well as the a Cam program and we're going to continue to pace, our spending commensurate with our financial capacity and objectives.

Speaker Change: It might have larger bill. So it is it is commensurate with our construction schedules and also as we.

Speaker Change: We see progress going forward and are.

Speaker Change: So long term could be the end of the decade or what are we thinking.

Speaker Change: We are able to fund with our with our capacity so.

Speaker Change: A long term path is.

Sergey Dluzhevskiy: Got it. Great. My second question is for LT. LT, if you could share your initial thoughts on the capital allocation priorities for former UScellular. I understand that it might be a little bit early for that, just high-level thoughts. Do you see potentially this is a dividend-paying company given the predictable cash flows from the tower business and wireless partnerships? Also how you guys are thinking about CapEx requirements and how aggressive potentially you could be on the new tower builds once the spectrum transactions close.

Speaker Change: I would say over the next five years is is really a reasonable long term goal.

Speaker Change: Again, Rick this is Vicki I'll jump in here.

Vicki: This is doubling down on our commitment to the community builds we already have in progress and depending on the pacing of the bill on a per market basis. Some of those finish up in two years. Some of those finish up in three years. Some of these finish up you don't have a longer build the larger communities.

Walter Thompson: Great and again, Walter welcome and look forward to working with you closer.

Speaker Change: Same here thank you.

Speaker Change: Our next question comes.

Speaker Change: Our next question comes from the line of Sebastiano Petti at J P. Morgan. Please go ahead.

Sebastiano Petti: Good morning, Thanks for the question and congratulations Walter as well.

Vicki: Might have larger bill. So it is it is commensurate with our construction schedules and also as we.

Speaker Change: Just I appreciate the color.

Speaker Change: On the Tds.

Speaker Change: EBITDA for the year will be a little bit burdened by some of the investments that youre, making in the sales force to drive penetration.

Vicki: We see progress going forward and are.

Speaker Change: Penetration as well as well as some of the difficult comps from some of the divestitures that you did announce.

Vicki: We are able to fund with our with our capacity so.

Laurent Therivel: Yeah, Sergey, appreciate the question. It's certainly premature to provide any specific guidance. I can give you some high-level thoughts on kind of how I see the company progressing. Let me just kind of give you a little bit of color on why we can't be more specific. A big driver, as Doug mentioned, is we still have a pretty huge swing when it comes to understanding which towers T-Mobile is going to select to be on. If they end up being on towers that have a large number of existing co-locators, well, that means that we have highly profitable towers, but we have a larger number of naked towers since we've got to think through decommissioning and so on. That could have a pretty significant impact on 2025, 2026, even 2027, because they've got 30 months to make that decision.

Vicki: I would say over the next five years is is really a reasonable long term goal.

Speaker Change: Not asking for 2026 guidance and beyond but should we anticipate that.

Speaker Change: These are now Morris.

Vicki: Great and again, Walter welcome and look forward to working with you closer.

Speaker Change: Ongoing run rate costs within the system and trying to drive this increased penetration or should we see perhaps a recovery for lack of a better term as we extrapolate forward beyond 2025.

Walter Carlson: Same here thank you.

Speaker Change: Our next question comes.

Speaker Change: Our next question comes from the line of Sebastiano Petti at J P. Morgan. Please go ahead.

On the Tds side, and then I guess on the Cds.

Sebastiano Petti: Good morning, Thanks for the question and congratulations Walter as well.

Speaker Change: On the C bench.

Uhm side, just thinking about <unk> and just thinking about your wireless portfolio overall, I guess, maybe for LTE or Doug.

Speaker Change: Just I appreciate the color.

Speaker Change: On the Tds.

Speaker Change: EBITDA for the year will be a little bit burdened by some of the investments that youre, making in the sales force to drive.

Speaker Change: As youre thinking about quote unquote opportunistically monetizing the remainder of your spectrum predominantly C band.

Speaker Change: Penetration as well as well as some of the difficult comps from some of the divestitures that you did announce like not asking for 2026 guidance and beyond but should we anticipate that.

Speaker Change: You do have some time before theres buildout requirements are needed, but in any way or are you thinking about the FCC's potential changes to the spectrum cap coming out of the out of the FCC and maybe.

Speaker Change: These are now Morris.

Laurent Therivel: That could have a significant impact on the financials for those years. Conversely, let's say that they end up on mostly towers where we do not have current co-locators. That means our co-location rate will be lower, right? We'll have more towers with just one co-locator on it, but we'll have less naked towers to decommission, we'll have less one-time hits in those years. That's why we can't necessarily be more specific about our approach to capital structure. Now that being said, either way, regardless of which towers or which collection of towers T-Mobile ends up being on, the tower business generates very attractive cash flows. The equity partnerships create attractive cash flows. We certainly will have available cash at UScellular. You mentioned new tower builds. I'm not particularly bullish on the build to suit business.

Speaker Change: Ongoing run rate costs within the system and trying to drive this increased penetration or should we see perhaps a recovery for lack of a better term as we extrapolate forward beyond 2025, that's on the Tds side, and then I guess on the Cds on the seabed.

Speaker Change: Does that factor into your view of potential monetization of the C band or the timing given that maybe and opens up.

Speaker Change: The bidding process to additional parties just any color you might think about that would be helpful. Thank you.

Speaker Change: <unk> on the USF side, just thinking about C band or just thinking about your wireless portfolio overall is maybe for LTE or Doug.

Sebastiano Petti: Hi, Sebastiano. Thank you for your question I'll take the first one regarding Tds telecom guidance for 2025 and kind of outlook beyond that so first I want to say that we're very pleased with our growth in 2024 as you saw it was 23% adjusted EBITDA growth year over year, the beat even our own internal expectations and I do want to acknowledge that some of that.

Speaker Change: As youre thinking about quote unquote opportunistically monetizing the remainder of your spectrum predominantly C band.

Speaker Change: You do have some time before those build out requirements are needed but.

Sebastiano Petti: Growth in 2024 was due to spending that was deferred from 24 to 25. So that is affecting year over year comparison also you heard me say that we're investing in a few key areas to support our 2025 priorities. One is sales and marketing to drive penetration. Another is internal construction crews to drive more addresses.

Speaker Change: Any way or are you thinking about the FCC's potential changes to the spectrum cap coming out of the out of the FCC and maybe.

Speaker Change: Does that factor into your view of potential monetization of the C band or the timing given that maybe and opens up.

Speaker Change: The bidding process to additional parties just any color you might think about that would be helpful. Thank you.

Sebastiano Petti: At the same amount of capital.

Sebastiano Petti: For lower capital costs, and lastly is the transformation efforts, we're investing to drive future margin improvement and expansion as well as improve our customer experience. So all of these put pressure on adjusted EBITDA in the near term, but they're all to drive future growth and so yes, we don't give guidance beyond 2025, but we're all.

So Betsy I know thank you for your question I'll take the first one regarding Tds telecom guidance for 2025 and kind of outlook beyond that so first I want to say that we're very pleased with our growth in 2024 as you saw it was 23% adjusted EBITDA growth year over year. This beat even our own internal expectations and I do want to acknowledge that some of that.

Laurent Therivel: I don't think that's a great use of capital. However, we're going to be opportunistic, and so if there are carrier customers, those will be our primary customers moving forward, right? If there are carrier customers who want to invest with us to expand their network, it's certainly something we'll be open to. We'll certainly be open to inorganic growth. If there's opportunities to buy new tower portfolios, something that we'll look at. Do I think that we'll be in a position to return capital from the transaction back to shareholders? Absolutely, I do. I want to be really clear. That still requires board vote, board approval, so that's not a decided factor. Yes, I think that we'll be in a place to send cash from the transaction back. The remaining business will be generating really attractive cash flows.

Sebastiano Petti: The investments, we're making are to drive future growth.

Speaker Change: In 2024 was due to spending that was deferred from 24 to 25, so that is affecting year over year comparison.

Sebastiano Petti: And so this is John I'll tackle question to this is LTE. So.

Speaker Change: So you heard me say that we're investing in a few key areas to support our 2025 priorities. One is sales and marketing to drive penetration. Another is internal construction crews to drive more addresses at the same amount of capital for lower capital costs, and lastly is the transformation efforts, we're investing to drive.

Speaker Change: I mean, certainly what you talked about with the spectrum cap could.

Speaker Change: Just the way potential acquirers think about our spectrum.

Speaker Change: But there is an implication of your question I don't want to make sure I clarify which is <unk>.

Speaker Change: So you did you wait to sell the spectrum.

Speaker Change: Future margin improvement and expansion as well as improve our customer experience. So all of these put pressure on adjusted EBITDA in the near term, but they're all to drive future growth and so yes, we don't give guidance beyond 2025, but where all the investments, we're making are to drive future growth.

Speaker Change: In order to.

Speaker Change: Have that spectrum cap or adjustments to that spectrum cap come in place and the answer is no.

Speaker Change: And it doesn't necessarily change the way, we're thinking about monetization of that spectrum.

Laurent Therivel: To me, we'll then have a decision to make if we find great ways to invest those cash flows, whether it's M&A, or whether it's some kind of a new build to suit model that has better economics than what the current models prompt, we'll invest there. If not, I could see us being in a position to establish a more regular dividend moving forward. Again, that's a decision for the board at that time, and we're probably a couple years away from making that decision.

Speaker Change: When we reached out to start the spectrum sale process, where we were in discussions with over 20 companies.

Speaker Change: Thanks, John I'll tackle question to this is LTE so.

Speaker Change: And most of those companies have absolutely no problem at all with the spectrum cap.

Speaker Change: I mean, certainly what you talked about with the spectrum cap could.

Speaker Change: So some of our spectrum for those companies that have no problems with the spectrum cap.

Speaker Change: Just the way potential acquirers think about our spectrum.

Speaker Change: And so that wasn't what drove our decision, making and it won't be what drives our decision, making moving forward what will drive it is do we get good value for our spectrum.

Speaker Change: But there is an implication of your question I don't want to make sure I clarify which is <unk>.

Sergey Dluzhevskiy: Got it. Great. My last question is for Kristina Bothfeld. Obviously, you're planning to pass another 150,000 locations with fiber in 2025, and you're making efforts to improve your sales and marketing activities, and making those investments. Considering where you are in your fiber build and looking at the results for Q4, how do you feel about the level of net additions that you're getting in terms of conversion of passings into paying customers? What has been working well for you lately, and what still needs to be improved during 2025 to achieve better conversion?

Speaker Change: So you did you weeks to sell the spectrum.

Speaker Change: What you saw was we the spectrum that we sold was sold for over book and over market.

Speaker Change: In order to.

Speaker Change: The spectrum cap or adjustments to that spectrum cap come in place and the answer is no.

Speaker Change: We're pleased with how we did that we think we are still sitting on very valuable spectrum.

Speaker Change: And it doesn't necessarily change the way, we're thinking about monetization of that spectrum.

Speaker Change: And opportunistic does not mean.

Speaker Change: Waiting for the spectrum cap opportunistic beans waiting for what we believe to be a fair offer at a good opportunity to sell it.

Speaker Change: When we reached out to start the spectrum sale process, where we are in discussions with over 20 companies.

Speaker Change: And most of those companies have absolutely no problem at all with the spectrum cap.

Speaker Change: I will briefly talk about the spectrum cap, which is that I am encouraged by some of the conversations from Jeremy car and for the rest of the FCC. When it comes to how they are thinking about spectrum, how they're thinking about spectrum transactions and how they're thinking about freeing up more spectrum for.

Speaker Change: So some of our spectrum for those companies that have no problems with the spectrum cap.

Speaker Change: And so that wasn't what drove our decision, making and it won't be what drives our decision, making moving forward what will drive it is do we get good value for our spectrum.

Kristina Bothfeld: Yep. Thank you, Sergey, for the question. Yeah, really you saw this in 2024, where we had slower net adds than we thought in our expansion markets in Q2 and Q3. We really diagnosed that problem with not having enough salespeople and door-to-door sales folks.

Speaker Change: For use by industry.

Speaker Change: What you saw was we the spectrum that we sold was sold for over book and over market.

Speaker Change: This is an FCC that appears to understand the importance of investment.

Speaker Change: Investment in the private sector, putting money behind.

Speaker Change: We're pleased with how we did that we think we're still sitting on very valuable spectrum.

Speaker Change: Spectrum, putting money behind radios, and putting capital to work to connect people and so I'm encouraged by the moves.

Speaker Change: And opportunistic does not mean.

Waiting for the spectrum cap opportunistic beans are waiting for what we believe to be a fair offer at a good opportunity to sell it.

Kristina Bothfeld: Historically, we've always staffed our own internal teams, and we realized that we just couldn't do that anymore. We needed to bring in external parties to help augment that sales force, and we started to do that in Q4, and we started to see that nice ramp in our net adds. We are hyper-focused on ensuring that we have the right sales and marketing programs, including fully staffing up our door-to-door sales teams to continue that momentum into 2025 and beyond.

Speaker Change: Certainly think they are the right things to do to encourage investment.

Speaker Change: No that's not driving our decision, making when it comes to monetize again.

Speaker Change: I will briefly talk about the spectrum cap, which is that I am encouraged by some of the conversations Jeremy car and for the rest of the FCC. When it comes to how they are thinking about the spectrum out there thinking about spectrum transactions and how theyre thinking about freeing up more spectrum.

Speaker Change: Very helpful. Thank you.

Speaker Change: You bet.

Speaker Change: Our next question comes from the line of Sergey <unk> with Gamco investors. Please go ahead.

Speaker Change: Good morning, Thank you guys for taking the questions.

Speaker Change: My first question is for Walter.

Speaker Change: For use by industry.

Speaker Change: This is an FCC that appears to understand the importance of investment.

Speaker Change: Situations again.

Sergey Dluzhevskiy: Got it. Thank you.

Speaker Change: Assuming the CEO position.

Operator: Our final question will come from the line of Vikash Harlalka with New Street Research. Please go ahead.

Speaker Change: You talked a little bit about the company's 2025 for you or just maybe if you could share.

Speaker Change: Investment in the private sector, putting money behind.

Speaker Change: Spectrum, putting money behind radios, and putting capital to work to connect people and so I'm encouraged by the moves.

Vikash Harlalka: Hi. Thanks so much for taking my question. First on TDS, my back of the envelope math suggests that you need to expand your current footprint by about 400,000 to 500,000 locations. Then you mentioned that you're building about 300,000 locations for ECAM. Are most of those CAM locations part of these expansions or it's only a small part of the ECAM locations in this additional location?

Speaker Change: Medium term vision for the company, where do you see today's 700 companies seem three to five years.

Speaker Change: I certainly think they are the right things to do to encourage investment.

Speaker Change: Sergey first of all nice to meet you over the phone and look forward to meeting you in person.

Speaker Change: No that's not driving our decision, making when it comes to monetize again.

Speaker Change:

Speaker Change: I did want to set out the 2025 priorities very clearly.

Speaker Change: Very helpful. Thank you.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Our next question comes from the line of Sergey <unk> with Gamco investors. Please go ahead.

Speaker Change: And I'll spend my time.

Speaker Change: Prepared remarks on that those are.

Speaker Change: Good morning, Thank you guys for taking the questions.

Speaker Change: And my <unk>.

Speaker Change: Mind, the credit goods to what I believe the three to five year and longer time horizon should be if we.

Speaker Change:

Kristina Bothfeld: Yep. No, your math is exactly right. There's two pieces of the program. One is the ongoing fiber expansion program. Those are additional incremental addresses that add to our footprint. You're right in the ballpark. We've tended to pace around 100,000 a year, historically. Then the second part of the program is our Enhanced ACAM program. This is bringing fiber into our ILEC copper markets. It's converting copper addresses to fiber addresses. It's not adding incremental footprint, but adding more fiber addresses and bringing higher speeds to some of our most rural geographies. We're very excited about these programs.

Speaker Change: First question is for Walter.

Speaker Change: Congratulations again on assuming.

Speaker Change: Assuming the CEO position.

Speaker Change: We make these steps in 2025, we will be positioned extremely well for longer term growth in both our towers and our fiber business and I think that Tds has a history of.

Speaker Change: You talked a little bit about the company's 2025 for you or just maybe if you could share.

Speaker Change: Medium term vision for the company, where do you see today's 700 companies three to five years.

Speaker Change: Being opportunistic looking to grow looking to leverage its skills and talents of its individuals.

Speaker Change: Sergey first of all nice to meet you over the phone and look forward to meeting you in person.

Speaker Change: I did want to set out the 2025 priorities very clearly.

Speaker Change: And its areas of concentration and we will remain focused on delighting our customers in the field of the communications and I think three to five years youll see much more of it.

Speaker Change: I'll spend my time.

Speaker Change: Prepared remarks on that those are.

Speaker Change: Hi.

Speaker Change: Mined.

Speaker Change: The credit goods to what I believe the three to five year and longer time horizon should be.

Speaker Change: Got it great.

Vikash Harlalka: Got it. My question on this is, these additional locations that you're building outside of ECAM, the additional organic fiber locations, are these locations mostly on the edge of your current footprint, or are you looking to go beyond? What is the profile of these locations that you're looking to build and who are the main competitors in that footprint? Lastly on this, what would it cost to build these locations, and how are you looking to fund it?

Speaker Change: My second question is for L T.

Speaker Change: If we make these steps in 2025, we will be positioned extremely well for longer term growth in both our towers and our fiber business and I think that Tds has a history of.

Speaker Change: If you could share your initial thoughts.

Speaker Change: Capital allocation priorities for pro forma either so I understand that it might be a little bit.

Speaker Change: Totally for that but.

Speaker Change: Being opportunistic looking to grow looking to leverage its skills and talents of its individuals.

Speaker Change: Just high level thoughts.

Speaker Change: Do you see potentially this is a dividend paying company, giving us a predictable cash flows from the tower business and violence partnerships and also how you guys are thinking about capex requirements in Congress that potentially you could be on the new tower builds ones with respect to transactions growth.

Speaker Change: And its areas of concentration and we will remain focused on delighting our customers in the field of communications.

Kristina Bothfeld: Yep. Back, a few years ago, when we first really started this fiber expansion program, we hand selected nearly 100 communities for various characteristics. One of them was being favorable competitive landscape, where there was very little LEC incumbent fiber. Another was very high growth percentages, like household formation and growth opportunities. Another was clustering opportunities. Really, if you look at where we've been building, it's largely in Wisconsin and the Pacific Northwest in various clusters. We're just continuing to build out in those communities that we hand selected, we initially planted the flags at the end of 2023, and we're continuing to build those out. These are all outside of our incumbent footprint and are all expansion territories.

Speaker Change: Three to five years Youll see much more of it.

Speaker Change: Yes, Sergey I appreciate the question I mean, it's certainly premature to provide any specific guidance I can give you some high level thoughts.

Got it great.

Speaker Change: My second question is for L T.

Speaker Change: L. T. If you could share your initial thoughts on the capital allocation priorities for pro forma either so I understand that it might be a little bit totally but.

Speaker Change: How I see the company progressing.

Speaker Change: And let me just kind of give you a little bit of color on why we can't be more specific.

Speaker Change: A big driver as Doug mentioned is we still have a pretty.

Speaker Change: Just high level thoughts and do you see potentially this is a dividend paying company, giving us a predictable cash flows from the tower business in wireless partnerships and also how you guys are thinking about capex requirements in Congress that potentially you could be on the new tower builds once as expected.

Speaker Change: Huge swing when it comes to understanding which towers T mobile is going to select to be on.

If they end up being on towers that have a large number of existing co locators.

Kristina Bothfeld: That's kind of the types of markets, and we still feel very good about the competitive landscape in those areas and our ability to win in those markets. In terms of build costs, that's something that we don't share, but what I will say is that our teams are extremely dedicated to keep our build costs as low as possible. That's one of the reasons why we've invested in internal construction crews. As you heard me say, that's going to account for a third of our address delivery in 2025, and we see as high as 30% savings versus external contractors where we use ICCs, internal construction crews, which we call ICCs, versus external contractors. We're also very innovative with our build designs and constantly thinking of new ways to build high quality networks with lower input costs, so lower labor and materials costs.

Speaker Change: Well that means that we have highly profitable towers, but we have a larger number of naked towers, because we've got to think through decommissioning and so on that could have a pretty significant impact on 2025 2026 in 2027, because they've got 30 wants to make that decision.

Speaker Change: Excellent.

Speaker Change: Yes, I appreciate the question I mean, it's certainly premature to provide any specific guidance I can give you some high level thoughts.

Speaker Change: How I see the company progressing.

Speaker Change: To have a significant impact on the financials for those years.

Speaker Change: And let me just kind of give you a little bit of color on why we can't be more specific.

Speaker Change: Conversely, let's say that they end up on mostly towers, where we do not have current co locators.

Speaker Change: A big driver as Doug mentioned is we still have a pretty.

Speaker Change: Huge swing when it.

Speaker Change: Means our co location rate will be lower because we will have more towers with just one co locator on it.

Speaker Change: Understanding which towers T mobile is going to select to be on.

Speaker Change: We will have less naked towers to decommission and so we'll have less one time hits in those years and so that's why we're being why.

Speaker Change: If they end up being on towers that have a large number of existing co locators.

Speaker Change: While we can't necessarily be more specific.

Speaker Change: Well that means that we have highly profitable towers, but we have a larger number of naked towers. Since we've got to think through decommissioning and so on that could have a pretty significant impact on 2025 2026 in 2027, because they've got 30 wants to make that decision.

Speaker Change: About our approach to capital structure.

Vicki Villacrez: Good morning. This is Vicki. I'll jump in here as well. These builds that Kristina is discussing really is in our greenfield expansion new markets. This is part of our total footprint expansion that I spoke to, that we've seen a 30% footprint expansion over the last 3 years. New communities, good profile in growth in new homes. That's great. In terms of funding, again, the pacing of this program, and the completion of these builds, is always dependent on a number of different factors in every market. It also is dependent on our growth, in EBITDA over time and the pacing of the capital spending. I would tell you that we do anticipate, with the deals that we have on the table, that is our number 1 priority that we're focused on right now, to get those closed.

Speaker Change: Now that being said.

Speaker Change: Either way.

Speaker Change: Regardless of which towers are which which collection of towers T mobile ends up being on the.

Speaker Change: Can have a significant impact on the financials for those years.

Speaker Change: The tower business generates very attractive cash flows the equity partnerships create attractive cash flows and so we certainly will have available cash at U S. Cellular.

Speaker Change: Conversely, let's say that they end up on mostly towers, where we do not have current co locators.

Speaker Change: It means our colocation rate will be lower because we will have more towers with just one co locator on it.

Speaker Change: You mentioned new tower builds.

Speaker Change: I'm, not potentially bullish or not not particularly bullish on the build to suit business.

Speaker Change: We will have less naked towers to decommission and so we will have less one time hits in those years and so that's why we're being while we can't necessarily be more specific.

Speaker Change: Don't think Thats, a great use of capital.

Speaker Change: However.

Speaker Change: We're going to be opportunistic and so if there are carrier customers. So this will be our primary customers moving forward right. If the carrier they are carrier customers.

Speaker Change: About our approach to capital structure.

Speaker Change: Now that being said.

Speaker Change: Who want to invest with us to expand their network and certainly something we'll be open to.

Speaker Change: Either way.

Speaker Change: Regardless of which towers are which which collection of towers T mobile ends up being on the.

Speaker Change: We will certainly be open to inorganic growth. So if there's opportunities to buy a new tower portfolio as something to look at.

Speaker Change: The tower business generates very attractive cash flows the equity partnerships create attractive cash flows and so we certainly will have available cash at U S. Cellular.

And so do I think that will be in a position to return capital from the transaction back to shareholders, absolutely I do I want to be really clear that still requires board vote board approvals. So that's not a decided factor, but yes, I think that will be in a place to.

Vicki Villacrez: We expect multiple closings and any use of proceeds at the TDS level would certainly be an opportunity to continue funding and perhaps accelerating our program over time.

Speaker Change: You mentioned new tower builds.

I'm not potentially bullish I'm, not particularly bullish on the build to suit business.

Don't think that's a great use of capital.

Speaker Change: To send cash from the transaction back.

Speaker Change: However.

Speaker Change: We're gonna be opportunistic and so if there are carrier customers. So those will be our primary customers moving forward right. If the carrier they are carrier customers.

Vikash Harlalka: Got it. Thank you. On the UScellular side, just a couple quick ones. We expected the wireless partnerships to happen, the transaction related to the partnerships to happen around the same time as maybe the deals with AT&T and Verizon. What stopped you from cleaning up those partnerships? Is that something that you wanted to do, or is that not on the table?

Speaker Change: The remaining business will be generating really attractive cash flows and to me. We will then have a decision to make if we find great ways to invest those cash flows whether it's M&A.

Speaker Change: Who want to invest with us to expand their network and certainly something we'll be open to it.

Speaker Change: Or whether it's some kind of a new built to suit model that has better economics than what the current models prompt.

Speaker Change: We will certainly be open to inorganic growth. So if there's opportunities to buy a new tower portfolio is something that we'll look at.

Speaker Change: We will invest there if not I could see us being in a position to establish a more regular dividend moving forward, but again, that's a decision for the board at that time, and we're probably a couple of years away from making that decision.

Speaker Change: And so do I think that will be in a position to return capital from the transaction back to shareholders, absolutely ideal I want to be really clear that still requires board vote for approval. So that's not a decided factor, but yes, I think that will be in a place to go.

Laurent Therivel: Hey, Vikash. Vikash, am I pronouncing your name correctly?

Vikash Harlalka: Yes, that's correct.

Laurent Therivel: All right, great. Hey, Vikash, it's L.T. You mentioned clean up. I don't feel the need to clean up anything that generates really attractive cash flows on an ongoing basis that we don't have to put hardly any operational energy behind. We view these as very attractive financial assets. We're always open to a transaction if the post-tax returns are better than the long-term returns that we're modeling. I'm not sure I agree with your phrase clean up. I don't see anything that needs cleaning. We feel pretty good about those assets.

Speaker Change: Got it great.

unknown: And my last question is for Chris.

Speaker Change: Obviously youre planning to pass another 160000 locations with fiber in 2025, Youre, making efforts too.

Speaker Change: To send cash from the transaction back.

Speaker Change: The remaining business will be generating really attractive cash flows and to me. We'll then have a decision to make if we find great ways to invest those cash flows whether it's M&A.

unknown: Improve.

Your sales Mark Thanks juices.

unknown: And making those investments considering where you are your fiber builds and looking at the results was a <unk>.

Speaker Change: Or whether it's some kind of a new build to suit model, but it was better economics than what the current models prompt.

Fourth quarter, how do you feel about the level of net additions that you're getting in terms of conversion of basically with some to bank customers.

Speaker Change: We will invest there if not I could see us being in a position to establish a more regular dividend moving forward, but again, that's a decision for the board at that time, and we're probably a couple of years away from making that decision.

unknown: <unk> has been working well for you lately it was still needs to be improved during 2025.

Vikash Harlalka: Got it. That is helpful. Last question, why didn't C-band sell in one of those transactions, given that all three carriers have C-band in their network?

unknown: To achieve a better conversion.

Speaker Change: Got it great.

Speaker Change: Yep. Thank you start getting to the question and yeah. So really you saw in 2024, where we really you know we had slower net adds than we thought in our expansion markets in Q2, and Q3, and we really diagnose that problem with not having enough sales people and door to door sales folks and historically.

Speaker Change: And my last question is for Chris.

Speaker Change: Obviously, you are planning to pass another 160000 locations with fiber in 2025, Youre, making efforts too.

Laurent Therivel: It really comes down to value. As you can see from the transactions that we announced, we received bids, and we accepted bids that were ahead of our book value and ahead of our market value. As you can sense from my statement, we did not receive those bids in C-Band. It doesn't mean there wasn't interest. There were plenty of conversations. We still feel very confident that we're going to be able to monetize that in the future. It came down to the value that we were offered and what we're looking for that spectrum in the long run.

Speaker Change: Improve.

Speaker Change: Your sales and marketing activities.

Speaker Change: And making those investments considering where you are your fiber build so I'm looking at the results was a <unk>.

Speaker Change: We've always staffed our own internal teams and we realize that we just can't do that anymore, we needed to bring in external parties to help augment that salesforce and we started to do that in Q4 and started to see that nice ramp and our net ads and so that is we are hyper focused on ensuring that we have the right sales and marketing programs, including staff.

Speaker Change: Fourth quarter, how do you feel about the level of net additions that you're getting in terms of conversion both basically since the bank customers.

Speaker Change: He has been working well for you lately it was still needs to be improved during 2025.

To achieve a better conversion.

<unk> staffing up our door to door sales teams to continue that momentum into 2025 and beyond.

Vikash Harlalka: That's very helpful. Thank you so much.

Speaker Change: Yep. Thank you start getting to the question.

Laurent Therivel: You bet. It's great to meet you.

Speaker Change: And so really you saw it in 2024, where we really you know we had slower net adds than we thought in our expansion markets in Q2, and Q3, and we really diagnose that problem with not having enough sales people and door to door sales folks and historically, we've always staffed our own internal teams.

Operator: That will conclude our question and answer session, and I'll hand the call back over to Colleen Thompson for any closing remarks.

Speaker Change: Got it thank you.

Speaker Change: Our final question will come from the line of <unk> <unk> with New Street Research. Please go ahead.

Colleen Thompson: Okay. Thanks, everyone, for your time today. Please reach out to IR with additional questions. Have a great weekend.

Speaker Change: Hi, Thanks, so much for taking my question.

Operator: This will conclude today's meeting. Thank you all for joining. You may now disconnect.

Speaker Change: First on.

Speaker Change: Mike.

Speaker Change: Of the envelope math suggests that you need to expand your footprint by about 400 to 500000 locations and then you mentioned that you are.

Speaker Change: We realize that we just don't do that anymore, we need to bring in external parties to help augment that salesforce and we started to do that in Q4 and started to see that nice ramp and our net ads and so that is we are hyper focused on ensuring that we have the right sales and marketing programs, including staff fully staffing up our door to door sales team.

Speaker Change: We're building about 300000 locations, where we can.

Speaker Change: Are most of those locations as part of the expansion or.

Speaker Change: It is only a small part of that your talent location.

Speaker Change: Location Yep no. Your math is exactly right. So there's two pieces of the program. One is the ongoing fiber expansion program. Those are additional incremental addresses that add to our footprint.

Speaker Change: Can you that momentum into 2025 and beyond.

Speaker Change: Got it thank you.

Speaker Change: Our final question will come from the line of <unk> <unk> with New Street Research. Please go ahead.

Speaker Change: And you're right in the ballpark.

<unk> tended to pay.

Speaker Change: Hi, Thanks, so much for taking my question.

Paced around 100000, a year historically.

Speaker Change: First on Tds.

Speaker Change: And then the second part of the program is our enhanced ATM program. This is bringing fiber into our ILEC copper markets. So it's converting copper addresses to fiber addresses so it's not adding incremental footprint, but adding more fiber.

Speaker Change: Back of the envelope math suggests that you need to expand your footprint by about 400 to 500000 locations and then you mentioned that you're building about 300000 locations.

Speaker Change: Are most of those locations as part of the expansion or.

Speaker Change: <unk> addresses and bringing higher speeds to some of our most rural geographies.

Speaker Change: It is only a small part of the town location.

Additional locations Yeah, no. Your math is exactly right. So there's two pieces of the program. One is the ongoing fiber expansion program. Those are additional incremental addresses that add to our footprint and you're right in the ballpark, we've tended to a pace of around 100000 a year historically.

Speaker Change: Very excited about these programs.

Speaker Change: Got it and so my question is.

Speaker Change: Yes.

Speaker Change: These additional locations that youre building outside of <unk>.

Speaker Change: Total organic fiber location at these locations mostly on the edge of your current footprint or are you looking to go beyond and then what is the profile of the locations that you're looking to develop like what are the main competitors in that footprint and lastly on the.

Speaker Change: And then the second part of the program is our enhanced ATM program. This is bringing fiber into our ILEC copper markets. So it converting copper addresses to fiber at or so so it's not adding incremental footprint, but adding more fiber.

Speaker Change: What would it cost to build these locations and how are you looking to fund it.

Speaker Change: Yep, So back a few years ago. When we first really started that's fiber expansion program. We hand selected nearly 100 communities for various characteristics one of them was being favorable competitive landscape, where there is very little luck incumbent fiber another was very high growth.

Speaker Change: Addresses and bringing higher speeds to some of our most rural geographies. So we're very excited about these programs.

Speaker Change: Got it and so my question is.

Speaker Change: Yeah.

Speaker Change: These additional locations that youre building outside of <unk>.

Speaker Change: Percentages like household formation and growth opportunities another with clustering opportunities and so really if you look at where we've been building is largely in Wisconsin, and the Pacific Northwest and <unk>.

Speaker Change: Organic fiber location or dislocations, mostly on the edge of your current footprint.

Speaker Change: Footprint or are you looking to go beyond that and then what is the profile of B locations that Youre looking at development what are the main competitors in that footprint and lastly on the.

Speaker Change: <unk> clusters, and so we're just continuing to build out in the communities that we handful elected we initially planned into flagged at the end of 2023, and we're continuing to build those out but these are all outside of our incumbent footprint and are all expansion territory. So that's kind of the types of markets and we still feel very good about the competitive landscape.

Speaker Change: Uh huh.

Speaker Change: Would it cost to build these locations and how are you looking on it.

Speaker Change: Yep, So back a few years ago. When we first really started that's fiber expansion program. We hand selected nearly 100 communities for various characteristics one of them was being favorable competitive landscape, where there is very little luck incumbent fiber.

Speaker Change: Areas and.

Speaker Change: And our ability to win in those markets.

Speaker Change: In terms of build costs, that's something that we don't share, but what I will say is that our teams are extremely dedicated to keep our build cost as low as possible and that's one of the reasons why we've invested in internal construction crews as you've heard me say that's going to account for a third of our address delivery in 2025, and we see as high as 30% savings versus external content.

Speaker Change: There was very high growth.

Speaker Change: Percentages like household formation and growth opportunities another with clustering opportunities and so really if you look at where we've been building its largely in Wisconsin, and the Pacific northwest and various clusters and so we're just continuing to build out in the communities that we handful elected we initially planned into flagged at the end of 2023.

Speaker Change: There is where we use itc's internal construction crews, which we call itc's versus external contractors.

Speaker Change: And we're continuing to build those out but these are all outside of our incumbent footprint and are all expansion territory. So that's kind of the types of markets and we still feel very good about the competitive landscape in those areas and.

Speaker Change: Also very innovative with our build designs.

Speaker Change: And constantly.

Speaker Change: Thinking of new ways to.

Speaker Change: Build high quality networks with lower input costs, lower labor and materials cost yeah. Good morning. This is vicki I'll jump in here as well.

Speaker Change: And our ability to win in those markets.

Speaker Change: In terms of build costs, that's something that we don't share, but what I will say is that our teams are extremely dedicated to keep our build costs as low as possible. That's one of the reasons why we've invested in internal construction crews and you've heard me say that's going to account for a third of our address delivery in 2025, and we see as high as 30% savings versus external tranche.

Speaker Change: These bills that Chris's discussing really is in our greenfield expansion new markets and this is part of our total footprint expansion that I spoke to that we've seen a 30% footprint expansion over the last three years. So.

Speaker Change: New communities good.

Speaker Change: <unk>, where we use itc's internal construction crews, which we call as he sees versus external contractors.

Speaker Change: Our profile and growth in new homes. So that's great.

Speaker Change: Also very innovative with our build designs and constantly.

Speaker Change: In terms of funding again, the pacing of this program are in and are in the completion of these builds.

Speaker Change: Thinking of new ways to build.

Vicki: Build high quality networks with lower input costs, so lower labor and materials cost yeah. Good morning. This is vicki I'll jump in here as well.

Speaker Change: As always dependent on a number of different factors in every market. It also is dependent on our growth.

Vicki: These beliefs that Chris's discussing really is in our greenfield expansion new markets and this is part of our total footprint expansion that I spoke to.

Speaker Change: EBITDA over time, and the pacing of the capital spending.

Speaker Change: But I, but I, but I would tell you that we do.

Speaker Change: We anticipate with the deals that we have on the table that is our number one priority that we're focused on right now to get the to get those closed we expect multiple closings and any use of proceeds.

Speaker Change: We've seen a 30% footprint expansion over the last three years so.

Speaker Change: New communities good.

Speaker Change: Profile and growth in new homes, So that's great.

Speaker Change: At Tds level would certainly be an opportunity.

In terms of funding again, the pacing of this program are in and are in the completion of these builds.

Speaker Change: To fund continue funding and perhaps accelerating our program over time.

Speaker Change: As always dependent on a number of different factors in every market. It also is dependent on our growth in EBITDA over time, and the pacing of the capital spending.

Speaker Change: Got it. Thank you and then on the U S on Pi.

Speaker Change: Couple of quick ones.

Speaker Change: <unk>.

Speaker Change: We expect that the wireless partnerships to happen.

Speaker Change: Transaction related to the partnerships can happen anytime you would it be deals with AT&T and Verizon what stopped you from cleaning up those partnerships is that something that you wanted to do or is that.

Speaker Change: But I, but I, but I would tell you that you know we do.

Speaker Change: Anticipate with the deals that we have on the table that is our number one priority that we're focused on right now to get the to get those closed we expect multiple closings and any use of proceeds.

Speaker Change: Not on.

On the table.

Speaker Change: However, the call from I pronouncing your name correctly.

Speaker Change: Yes, that's correct alright, Greg <unk>.

Speaker Change: I mean, you mentioned clean up.

At Tds level would certainly be an opportunity.

Speaker Change: Don't feel the need to clean up anything that generates really attractive cash flows on an ongoing basis. So we don't have to put hardly any operational energy behind we view these as very attractive.

Speaker Change: To fund continue funding and perhaps accelerating our program over time.

Speaker Change: Got it. Thank you and then on the U S on site.

Speaker Change: Couple of quick ones.

Speaker Change: Financial assets.

Speaker Change: <unk>.

Speaker Change: We're always open to a transaction if the post tax returns are better than the long term returns that we're modeling.

Speaker Change: We expect them to be the wireless partnerships to happen.

Speaker Change: Transaction related to the partnerships can happen anytime.

Speaker Change: Deals with AT&T and Verizon what stopped you from cleaning up those partnerships is that something that you wanted to do or is that.

Speaker Change: I'm not sure I agree with your phrase clean up right.

Speaker Change: I don't see anything that needs cleaning that we feel pretty good about those assets.

Speaker Change: Not.

Speaker Change: On the table.

Speaker Change: Got it that's helpful and last question.

Speaker Change: The call from I pronouncing your name correctly.

Greg: Yes, that's correct alright, Greg <unk>.

Speaker Change: Why don't I have been sort of selling one of each one of those transactions.

Speaker Change: I mean, you mentioned clean up.

Speaker Change: Given the wholesale carrier networks.

Speaker Change: Don't feel the need to clean up anything that generates really attractive cash flows on an ongoing basis. So we don't have to put hardly any operational energy behind we view these as very attractive.

Speaker Change: It really comes down to value it.

Speaker Change: As you can see from the transactions that we announced.

We received bids and we accepted bids that were ahead of our book value and ahead of our.

Natural assets.

Speaker Change: We're always open to a transaction if the post tax returns are better than the long term returns that we're modeling.

Speaker Change: Market value and.

Speaker Change: As you can sense from my statement, we did not receive those goods and see that.

Speaker Change: But I'm not sure I agree with your phrase clean up right.

Speaker Change: It doesn't mean there wasn't interest there are plenty of conversations we still feel very confident that we're going to be able to monetize that in the future.

Speaker Change: I don't see anything that needs cleaning that we feel pretty good about those assets.

Speaker Change: Got it that's helpful and last question.

Speaker Change: But it came down to the value that we were offered and what we're looking for for that spectrum in the long run.

Speaker Change: Why then.

Speaker Change: And sort of selling one of these one of the transaction.

Speaker Change: That's very helpful. Thank you so much.

Speaker Change: The wholesale carrier networks.

Speaker Change: It's great to meet you.

Speaker Change: Networks.

Speaker Change: And that will conclude our question and answer session and I'll hand, the call back over to Colin Thompson for any closing remarks. Okay. Thanks, everyone for your time today, please reach out to IR with additional questions have a great weekend.

Speaker Change: It really comes down to value.

Speaker Change: It's a as you can see from the transactions that we announced.

Speaker Change: We received bids and we accepted bids that were ahead of our book value and ahead of our.

Speaker Change: This will conclude today's meeting. Thank you all for joining you may now disconnect.

Speaker Change: Market value and.

Speaker Change: As you can sense from my statement, we did not receive those goods and see that.

Speaker Change: It doesn't mean there wasn't interest there are plenty of conversations we still feel very confident that we're going to be able to monetize that in the future.

Speaker Change: But it came down to the value that we were offered and what we're looking for for that spectrum in the long run.

Speaker Change: That's very helpful. Thank you so much.

Speaker Change: You bet, it's great to meet you.

Speaker Change: And that will conclude our question and answer session and I'll hand, the call back over to Colleen Thompson for any closing remarks.

Colleen Thompson: Thanks, everyone for your time today, please reach out to IR with additional questions have a great weekend.

Colleen Thompson: This will conclude today's meeting. Thank you all for joining you may now disconnect.

Colleen Thompson: Okay.

Colleen Thompson:

Colleen Thompson:

Colleen Thompson: [noise].