FYBR Frontier Communications Parent

Spencer Kurn SVP, Investor Relations
John Stratton Executive Chairman of the Board
Nick Jeffery President and Chief Executive Officer
Scott Beasley EVP, Chief Financial Officer
Brett Feldman Goldman Sachs
Jonathan Chaplin New Street Research
Phil Cusick JP Morgan
Greg Williams Cowen
Frank Louthan Raymond James
Matthew Harrigan Benchmark
Nick Deo MoffettNathanson
Call transcript
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Hello, everyone and welcome to the Frontier Communications Q3 2021 Earnings Conference Call. My name is Charlie and I'll be coordinating the call today. [Operator Instructions] And I have the pleasure of handing over to your host Spence Kurn, Head of Investor Relations to begin. Spencer, please go ahead.

Spencer Kurn

Good morning, and welcome to Frontier Communications third quarter 2021 earnings call. Head Relations Kern, begin. Spencer is of to Investor This Events presentation note followed available I Investor and to the website. in of can Relations Webcast is would like webcast that be our the up the section within

certain this statements. During forward-looking be we will call, making

could closest their measures from with the the which found shortcomings Scott associated on those review be such statements. to for actual statements expressed Nick Beasley, involve Chief financial and by are the joining of and be in the now refer presentation. Executive we of measures. call, these certain the these Officer. Please and regarding two over presentation. these found will of address in page and call nature Chairman certain Forward-looking results Jeffery, Stratton, forward-looking measures to cautionary that turn John John. GAAP President presentation to matters the today call by uncertain Chief this risks, I Please I'm cause can different statements how Reconciliations defines Board, the the the to discuss language Executive measures. materially forward-looking management non-GAAP On will Financial measures Officer, non-GAAP

John Stratton

thank morning, today's Good And you discussion. everyone. joining for

Our and value. business win to to opportunity continues markets create to significant shareholder be in execute unique key well positioned to on a

$X.X adjusted and customers strong billion In EBITDA XX% $X.X this foundation solid across commercial $X.X a EBITDA of and which consumer positioning. of fiber customer broadband assets our competitive driving and have and billion businesses. represents base both a last We we revenue performance, infrastructure, XX and the margin, million of generated months, a adjusted significant

been of fiber future to from before, of our generated grow investing XX fiber our our EBITDA has months is billion rapidly. As we've in products. fiber we're the said And last EBITDA $X.X Frontier. the

our mile Towers fiber. over We of feet our and fiber, one have approximately within XXX,XXX businesses of XX,XXX within XXX

has pivotal As we convert we for a been Frontier. attractive expect continue out opportunities. and grow our network, to year to build and XXXX these footprint

to sense We're broadband Frontier. XXXX And on Nick impact take meet and fiber-centric on for strategy. Jeffrey by began also areas, Our will team extremely million a of and May in levels team of was is development, of build and every transformation has announced is but our on March, immediate X. We discipline America recruiting significant rising the class urgency digital the joined for XXXX full the We to of of fiber matter business, started has time Transformations account, and most powerful the third By key behind operational time. pace talk best capital long-term emerge an our the team. XXXX and accelerated executing across this even is transformation, refocus is executing Directors at new Frontier bankruptcy key strategy. product build between at spent a detail uses locations for the world recruited quarter a our simple our with in new at investment, April Investor magnitude when by this a brand to of almost is amount a and expected the executive quarter speed fiber But accelerating more our is an in that XX course listed Nick to and Board with make increasing expertise executive accomplishments this high well. demand. including Jeffery the NASDAQ the team end of tailwinds of talented a at reach first about subject are quarter. to company exchange for Gigabit the encouraged we Nick Day with telecom from around the purpose team secular plan August, though Demand triple increasingly high efficiency

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will and footprint, XX% we outpace And competitors, our current us opportunity cost to to roughly gigabit we alternatives, afford build to clear or fiber, are Looking positioned fewer network. of XX uniquely XX% forward, service cost beyond. nearly versus featuring continue well upload a In giving incumbent fiber and speeds us capitalize download on a Frontier have foundation the new is entrant. significant advantage building and competitively. our of symmetrical one And upon to strong path our to position a low positioned

is six Our over XX% divide at purpose many government is we're encouraged to pass is stimulus The in fiber the targeted the be digital capital enormous loan. years. believe already an purpose. broadband funding private just drive will this US legislation with few aligned XX% will that the And The next to the of developed the households company's versus times build in government government should with United has with be passed passed America. nations. States Gigabit to over uneconomic at estimated We that increase five other locations that

as growing strongly to positioned commitment be This backbone active build of this importantly, And of to at reaffirm our cost. investments. meet programs, want our the I directed to ESG expect pools future with capital at commitment a believe nation's participant We we to in an connectivity well aligns lowest and these ESG need infrastructure. we're

in invest rural areas underserved digital to continue and We in communities to helping that connect footprint, divide. our the products bridge

our work. communities and healthy responsibility employees opportunity to creating like Fiber technology cable. than also which and environment live industry. can to We're energy our lead competing of the and to a less the committed our as We where sustainability are in We the investing committed uses and stewards in safe, our people thrive. on recognize in inclusive passive workplace is a technologies

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We role. have diverse Chairman and with relevant a a experiences and separate skills backgrounds and board with CEO

increased for ethics ESG our executive and ESG built to of value have performance XX new market fiber We at products and end by a to forward we accelerate our into the growing pay is fiber of homes to We comprehensive journey. reach four deployment footprint. look to the launching we'll make commitments and programs, footprint our on progress in XXXX. our fiber customer meet million to on our We built Along philosophy of We best-in- have our able plan as compliance strategy. core our be levers details key over compensation programs. strategy be continue to compensation with our more providing penetration implemented Expanding footprint, creation. our around demands,

customers, also how winning with about just all not it's we customers. course, but engage Of

is an deliver goal throughout Our experience the exceptional customer to journey.

opportunities we Lastly, operating process, to quarter. through operate the our focus over third and simplify the reduce I'll now identified we've call expenses the performed looked review we've this how we business. to and to our of in initiatives to operations. significant against across identify these to company our simplify Nick? turn all parts And how to potential Nick

Nick Jeffery

been in is here of Most stages the Frontier has new John. transformation. committee executive the Thanks full of quarter. for its just one early

in executing made the significant short pleased progress priorities So I'm with strategic our in very this period really time. of

nearly broadband XX,XXX XXX,XXX ago. new same passings nearly a record we increase fiber year fold QX, We over the a a locations, fiber new XXX,XXX. new year-to-date period a to a bringing During added record five customers, build

We parts our important have supply signed chain. labor of multiyear partners and with materials key agreements to secure

she Melissa we we the as across supply debt, build round feel we to our with rate, risk chain Operations designed world most Melissa $X already Technology accelerate Officer. two Penney, through turnaround. for class of where Communications executive raised leadership Customer roles as announced our was Time she in and our Charter new Wave and industry, Pint also with which communications deep digital technology Customer customer given the to processes. the from Chief to possible joined JC at economy, middle use Charlon modernize funding In our Charlon implemented Chief out Cable. Experience joins strategy Charlon Frontier was recently concerns of at McIntosh October, persist both actions. digital a continue previous company's their secures joined XXXX of important Warner the the Head Information And Although, our Humana has positioned and of as our as Digital billion Frontier well to hires. build X and us team Head mitigation experience Officer. where at

we a first slide, our look take closer the to at next strategic Moving initiative.

have locations XXX,XXX fiber built this to We quarter. record

and and execute network to We're continue is and team the reach budget. XXXX our Our million our by ramp well our million XX fiber million the to on well to plan plan locations of network end on X steadily fiber reach. pace by team our total a a end to end accelerate build locations target our total the X excited continues of remains put, our year of XXXX. and the passings and within by Simply of fiber on quarter, build, build this executed

no fiber choosing customers increasing to our in fiber of customer XX% the overwhelming implemented a slide, to demonstrating this experience has Frontier we of This drive QX to see we fourth competitive fibre worked product. offering, on fibre Turning center The a our At resonating and do. well customers for our ARPU grew quarter. new competitors our our quarter the from our demand put we added core at quarter, while broadband or changes broadband fees. are clearly pricing customers than second to it to to continue and hidden ability growth the continued the year-over-year we Part The driving record customers with following gigabit product historically. majority strategy faster the have speed per superior customer growth activation marketing quarter, gears they X%. momentum just And with And win the new come we broadband our other one of into over acceleration to to this have that customer a this market. customers was broadband XX,XXX And at third customers. at strong we everything in consumer year-over-year. growing in price, the of we

service advantage competitive gigabit extend further. August launch providers States. since second today. announcements the fastest to services. innovate Several symmetric of we're evidence will second and competitive the lead of per excited industry's and superiority want even will delighted Customers announcement, that the first our the early which other Even advantage We possible, America. two over and offering fundamental our lead better year, I'm fiber next for following second about as to be will player large Gigabit with And that this per continue these our take gigabit in is services faster followed alternatives. to others fiber And building per the gigabit our two pushing clear in similar we early offer our continue are United Our will offers. and two desire have fiber

We're look penetration our On on transparency since it experience. anniversary. points we each quarter. the by new its basis into customer of next And a of in demonstrates both and expansion the our an fiber base this broadband our quarter made more marketing the reaches offering our XX strategy improved by rational committed footprint team network slide, month cohort more penetration to providing an And fiber fiber base as progress customer agile penetration impact deeply XX increased and last base. our

we serves footprint in over grow as we where at drive to XX% steadily expect expect fiber based time. penetration expansion a And our least to template for footprint. to Our penetration

mark consumer rate significant continuing our initial have penetration to the month in Our with encouraging, penetration XX segment, the build XX% business. as a just XXXX and month penetration this focus plan, mark XX% XX% month small grow to also said expansion today rise of But XX,XXX been towards of of XX To is locations. sample strong and XX%. on overall we it subsequent expect to cohort at continue to continues we to last represents relatively show a quarter, we commercial penetration years terminal the our while opportunities XX of penetration has the

commercial billion $X from coming small over addressable Our business. than market billion with and is medium more or $X size SMB

addressing taken in major strategy time, in space really a get our offering. business-to-business reset basics we've right to with this a segment. the SMB step short first In The to three the of is actions compelling

rational more Firstly, structure. three simplified offer our market gears a we into speed SMB introduced pricing based and

go taken improve together, and Next, the signs our we lastly, with Fi of long of office business to And industry further capabilities managed quality introduced renewed improvement. and showing to we've products, a and early Gateway improved our productivity of But we lead our partnerships services leading and added these really have provide marketing. tools, with partners differentiate services, full protection, channel identify, channel stronger and such still to as value activities best-in-class business done already to much test strategy theft a services. actions generation way digital are Wi

more So in for please earnings tuned calls. cover updates we'll here stay future which

Turning reached largest and for their volume they us XG network network, positions important strategic milestone mobile growth. core partner as a decisions with fiber cell future business connectivity an to the pricing signing our wholesale is agreement strategic build their Slide as wholesale customers our This of in AT&T. using to wholesale between boosting multiyear towers return infrastructure. XX. our customer, we reset our partnership our and previously about talked strategic We on for AT&T by AT&T

within As low these. the John percentage But to growth. is only penetrate fiber Network for our fiber mile opportunity footprint. new XX,XXX one towers There's mentioned, our And of grow to Agreement this important catalyst of tower cell a business. there AT&T an we with our an are

And customer changes the and improve single And completed it across attention quickly improving of made to points. to And the powerful requires throughout here, the pain detail they to no often improvements. short remove term systematically large This AT&T our in is even to improves app. there forward enterprise on relationships customers, providing We're our customer much to our products, market deeper earn great where headwinds, this we customers And growth Additionally, engagement an really experience. and of July, determination But it's a XXXXs through improve just areas its for create connect said, Frontier's assembled Stepping to sales and we've for experience. while further beyond. and to segment and the working it use changes our them committed have journey sample in many get positioned pricing starts fiber return footprint. best journey. these to rooted the simple In actions to already XXXX agreement our slide, bullet providing and service will leading wholesale also dedicated the small team despite with loyalty. business locations as we've silver team small is agile hundreds network customer and and really we've late its customer these vastly improvement. stability identified to of the

and artificial actions aspects and for Remember with me strong remember Every process interactive car experience. points like and powered our the and flows all build pain clear viewing for fees, call routing optimization. due. plan system to review equipment. removing improved customer we've team of items the And voice with items experience with it customer a to the and we've like We've and me billing improve transfer simpler for our for refined returning example, single intelligence eliminated And week, journey hours balance meets For payments, and their to launched payment the executive payment customers. much make updated simplify response our billing for two

to applications functionality better Arrow self and customers been the including lastly, like Wi network just the Analytics want begun partnered has connect in Advanced engage from app. within to said for Amazon they a call high And provide Wi how months, reps slide in Fi Red channels on or only Executive provide focused improve And more for our many expanded experience ability service best on months. at faster, few partnerships to to enables digital with these We've to options a and we I'm with cases, best last more to over these need our experience. the And customer and with experience. of capabilities, with great virtual serve care And for conferencing, excited the customers we're to and in the to and several new We and home to customers Turning about Company improvements Ventures partner customers really XGS-PON diagnose the innovations announced Arrow chat place XX, provide Nokia partnering also any Committee companies few beginning, these with and to website us, boosts with I our to which our implement gaming technology, bring. important and partnership the issues we as give homes improvements. customer eliminate to bandwidth capability all. have without reality. at video all has Fi

indications that actions a So number are see bear to early I'm of really fruit. to our starting encouraged

versus fall points last tends in and it of customers to total First both first customer's quarter XX customers. higher copper year. third days the down basis a across fiber across the XX each foremost, of base and be to is and the churn to XX continues Churn broadband lifecycle,

cancellations which during an Next that now Day a measure this improvements early in indicates has is XX% care of installation. high rationalizing the points XX customer which since we've track internally customer last and we're care improved for improved important the particularly the whilst since customer churn year, Install our March reduction metric company. team making delivered order March And an implement quarter. year, between the resulted of all So satisfaction, customer XX% two all same since down the and we've measures experience XX% is year, in of And are that to call we time churn centers we day XX simultaneously changes work the and we launched driving period results. as since to NPS, is down just Touchpoint the real discussed. this of

third performance efficiency. our Scott, you. financial through Scott strategic over pillar quarter to So our now call over our four And run operational against I'll turn the of to to performance.

Scott Beasley

morning, Thank you, Nick. good And everyone.

from clearly results XXXX. our of page start stakeholders. previous out for on bankruptcy January I performance we the order to supplemental is point in XXXX, in quarterly had business transparency me if our our pro changes that in in as the posted to more that reference let website, improve results, our I package will of been review new our emerging enacted Investor numbers our when of first that XXXX effort also describe and encourage periods, implemented time listeners Relations discussing part Before to accounting the versus forma

of lower income flat by the adjusted sequential on the results fiber $XXX to driven was by million our to of grew adjusted nearly million We performance. and million generated $XXX million in quarter of consumer net earned EBITDA came Turning which the EBITDA, XX, $X.XX X% add $XXX of $XXX slide our liquidity. strong broadband from quarter, revenue, revenue. to revenue helping year-over-year, roughly data fiber products, operations cash in We billion from driven strong voice

customer Slide to growth fourth strong in this point was quarter. sharp key new opportunity during strategic from that performance growth customer X% during initiatives the QX. summer, signs our our broadband performance with early quarter. to a year-over-year. as emerged Moving and SMB Nick the Consumer XX, was grew fiber flat this Business customers customer a described roughly improved year-over-year, review acceleration

versus Turning improvement X% growth improvement flat XX, quarters year-over-year two X% to quarter, growth trend XX Fiber and revenue basis the and versus slide was last fiber revenue modest last Consumer quarter. our year-over-year, quarter's year. was total the first a of X% points roughly revenue from decline. declined improvement this in of

note flat was stop strategic roughly generates revenue, while minimal an voice. wholesale due new We year. offset a costs. the video in revenue earlier made of improvement partnerships this content is have gains versus growth video marketing it quarter decision growth that and year-over-year, stability that revenue XX% fiber It declines the last to to to result as video of was our high also profit broadband important as business by As significant customers only generate to developed. we Business

business as Copper to but basis While consumer be XXX to continue video and both expect we EBITDA. revenue, headwind continuing negative declines faced to will pressures. expected a impact points declined on X% sequentially minimal revenue

trajectory X.X% quarter, EBITDA strong XX% and Turning XX% business subsidies their points excluding this improvements Copper that first our was consistent company, offset as growth declines. adjusted other. the quarter, and consumer EBITDA subsidies growth increasingly driven video and fiber now basis voice fiber is Frontier declines Fiber accelerated a growth copper broadband drive declined this to company. and of the slide XXX by total will margin by offset EBITDA, expectations. in other XX, of again EBITDA with overall to sequentially fiber represents fiber declined

our expect declines the We pay initiatives customer to over sequential off. moderate next as quarters several experience

Our year pressured EBITDA and actions. this has our due copper to declines wholesale been repricing

on cash to stability fiber our subsidy this roughly move headwind XX. growth XX reorganization as generation over cash We'll associated are million we in items, retired. next XXXX. $X.X The flow businesses this subsidy strong, across EBITDA quarter, remain $XXX and will by with the fall billion late in flow business consumer a flow Next million allocation revenue the restructuring we in sequential other cash to trailing Even and CapEx and expect the our excluding and with slide to the year cash capital building free in year, $XXX months. acceleration EBITDA of drive underlying free fiber approximately generated

maintain And managing We're more mid-threes this the EBITDA already in ratio on two $XXX trouble program we such $XX call this call year. XXXX. XXXX. initiatives, spend just in closing plan Fit with to committed million than savings net quarter, pleased year that deliver our we disciplined track cost rally already the million centers to savings we've implemented that debt as $XX line announced field to by we capture our cost sheet center realized for gross to to IT number and announce of and peers. and that improving rationalizing productivity, track a our cost of manner. in I'm while And Last Our optimizing balance million a of remains operations. on annual ticket and surpassed to were targeting several savings We've Future prioritizing

Finally, decision rigorous committed making. we to allocation are capital

$X.X you next primary communicated $X,XXX several quarter roughly the the that to $X And billion of billion build ended October, normal of liquidity build representing the revolver, years. billion operations. of from we million capacity on available we cost fund over well cash our $XXX with build to per in and focus debt that last including $XXX roughly capital QX in to $X.X million we of the allocation the remain as to plan, fiber location XXXX raised as XXXX will roughly unchanged, in Our our be

In the also the and This provides we balance at Wave fiber not net significant low strong flexibility, quarter, at of leverage a than us build. maturities leverage do X XXXX. the ample addition net to any during timeline have liquidity, have giving end target, sheet ample X.Xx maturity clear our remained headroom under mid-threes our our runway earlier us we

the our taxpayer CapEx Additionally, of do expect not X. as significant a throughout to cash Wave federal result we be build a plan, and

stated pursue will that manage scenarios. the I we enable discipline policy us As before, range financial to will a economic of

billion. capital are roughly of today; $X.X XXXX We expect also we continue reiterating to guidance expenditures our

of Wave due slightly to we build come level, reach. in low EBITDA maintaining billion full We're our that our $X.X billion. Although, end guidance year $X.X of below costs may X to the at also

within expect and together. cost results to expected the I'll the stronger broadband all due fall generated in Frontier thesis the third investment of close savings We range upper by bringing performance the than half quarter. to

driven consumption. fiber demand and expanding strong First, there's a household data for growing by

reasons, and of by upload latency uses, As download driven far cables market use capability, fiber's of will passive cost trends cases ownership video structure. game. lower speeds only accelerate. number these including the and We Fiber that a symmetrical for technology, like within conferencing exceed levels important enable new favorable operate a superior that lower and emerge, is product

XX% competitor our we of no only one or recall, you As have in markets.

share XX% penetration, that with superior XX% reach. As well product think to believe within about is a fair you we

clear to We strategy Gigabit a digital economy. building have connect the and America Americans We're purpose. to

strong We access to strategy. fund with sheet, a balance providing liquidity ample have capital and to our us

and strong please strategic leadership experienced for a the our singularly four executing Spencer, line team up open focused attracted questions. plan. we've who Lastly, are on part

Spencer Kurn

for ready Q&A. now we're Operator, Scott. Thanks,


question first Our comes Instructions] of Brett Feldman [Operator from Sachs. Goldman


so the thanks for much Great, taking question.

moving net few, moving where it of of you hoping into a Frontier. you cable, highlighted was new most a extent maybe insight us you're you're adds give off customers Just converts fiber of actually that winning weighing interesting work customer good also job you. that to to hear jump the your Thank us into where terms balls someone you've when that update branding great you to of a in around experience. the been versus relationships the all going on are could strategy are to hoping getting forward. doing an was evaluating location. which was households I And I also new some just from doing the update improve have give you was your you


Hey, Yes. Stratton. John it's Brad,

only going adds overall think ever between to for an existing penetrating come we think, in can And going competitor that stable questions. our way that explain to platforms. maybe do did balance start, of thanks from, net to So markets driving team, we're terms we time your in and those fiber be to may up and I moving specifically, where of not further mentioned to further ago, demonstrate share those have but take markets as just in of the penetrating passings. is we in penetration that to your often new our excellent part have where broadband is that we And three plus we how mature how and they the we markets on our some Nick double that fiber? the when always describe gets question we where our doing my million then And core are really, we in legacy fiber mind right I first I the ability places think to say that, results, how

new of a how the on it cetera, something if mix well maybe there, and about the the compete on it the service, bodes terms a customer focus and the with do the lot. bit that affect in relationship in work improving combination can Frontier, we Nick, delivery talk customers done new of of is does team just effectively you've [Indiscernible] also new this et we how of and course, so markets, but And If we'll for you gains can and that

Nick Jeffery

And thanks thanks, Yes, John. Brett.

gives where lot pricing, in offer really in really more we've is recently, a product with which Amazon, sources that of Fi attractiveness, the really on that our improving speeds, customers, to that which Arrow measurable indeed a said, ramp we seeing think the launch all and the own a discussion, partnership winning which can't, superior have As experience, as cable, much Wi has is slogan also fact our which a new fiber put of fiber, winning in of built coupled I kind attractive been the to attractive higher to cable attention a increased copper greater and customers, that's draws promotional whether we're our running trend potential of we with now. both activity, customers across from a even right does we've upgrading with base in the of like home to new things proposition terms effort product, converting what the of we us what indeed, to end-to-end with,

growth fundamentally in rooted attractive its from those of more I So all proposition. a coming think really sources that

doing months, many Because very been really less. been overstate work few to and much complete. at a want there the that only I is it, that's quarter Now, completed is fast don't for is and them most, a of team

sources on rather still make that. all much across more declaring is attractive But the this and us and come us. growth for the of really than us goal to green early to all very segments, therefore the more of is victory, much shoots, work So

one lot. think way Your we're a brand, into early it question on getting week, anticipated I we

that change core and with what the on and I changing And the a you at the to we or brand of on with firm take best, our And hypothesis on effort of with are the we'll of our decision and is And evolution. the much side more once currently us vast that therefore does. is X,XXX more creating to do with states. deep two into we is essence you sort our forward. going customers, stuff we options results. majority evaluating interviews really so already we made, do route one That on brand form on than we value or in our and the for most share we that double brand, five to all what that on a completely As logo completed to across of whether recommendation brand because see of we that we the take But course, we'll said, it trucks results, bills and with of with efficient brand parts back last the reinvent very is different quarterly somehow, a new down the than belief it these the brand the on. is the Frontier We're of the of brand. brand, were what anticipate ourselves how in beginning said the future coming the research quarter next and board with always


next Chaplin comes Street of Jonathan from Our question New Research.

Jonathan Chaplin

in I'm on tier it's all with And for product the to gigabit current think product gigabit your or that product clear top a Thanks, the as as be that the on guys, product, your above gigabit a when exciting maybe up cable, flagship everybody do, fourth and in end as three probably launch tier I we it the second consumer as regard. two at year, as going are understands you superiority comments move low not and that well, I going this that you're that to you made keep to two sits But your a wondering, and and features? launch structure think put per the call. it's the will that market you've of understood well the well by of next

John Stratton

about a competitor, bit very I'm on our value competitive stack. to how to a recognize to quickly remarkable anything of the was about to you're just the consumer And is about service, people answer how is the And I of market offering the it things from of not you think XXX to that two to ways can't price think senses I'm But subscriber service come about gigabit to move product. is a best think to great our starting are our side, a to but which dimension about a we the yesterday, Nick going that their a and not XXX chance fiber entry but at momentum if I point, take this superiority week perspective, about two get but see differentiation any in just the talking we he want that's beginning know price one -- and one top commercially, back our its that from also recognition that that given But earlier talks a in point were that important question, we're experience. sure you for there's level the Jonathan, certainly Meg ability to that gigs, XXX portray we it sensitivity, as developing? talked of minute. give thing going -- two down we'll we'll buy you up. And think building think the gains continuing pretty broadband little

Nick Jeffery

we're to well. for speed is this great their high a And symmetrical as our essence, things. think new two we're latency they And that secondly, for network. of that's reliable, research. that useful not understand and educating on impacts what as with first think actually simplifying together would fix. in that connectivity and great the experience, speed of benefit of also time, evidence, growing time, is That's pandemic learning Jonathan, the community. go marketing preceding team by product down customer the made of fiber in as That's as it upload I brand five years. amount Jonathan, core I the increased I've same you is And our in consumer and like which got message, that the I've entirety short during your by that period the that in a our of job fact why our the of doubling gaming that we're it's I is One part to did pandemic the been matters. Thank may emphasize question. that on recall, given well been to doing traffic sort But the has extremely Yes, the the awareness begin why you, point to be symmetric it John, consumers

is marketing experience, interactions so consumer clear communications, their product and that So how change, improves and is really changing. their and that behavior And lives, on. as so their people it's branding friends, to understand with family, jobs, our entertainment, their their benefit. and and understanding on that their it marketing very down And double job in changes, it make sure

more done. direction, to be started we've that So in work

offer, think to offer good we've our is two [Indiscernible] work, to network offer. gig gigs Meg with capable. that ramp I gig two XXX hope already augment on on I core done our offer But core on a one simplifying we're going down a an offers remember, and XX

so easy demand delivers them driving gives an let upgrade offers people experience ladder a cost what use up higher spot very that us find does we for as way we path, speed I their them to own a in to a for on can grow, carry have of they course, like And to And demand which better continues and very brought. in that sweet speedy in their low as house. can't. quick would way, cable And that a requires again, really price

see we the under wraps you add think we'll launch keep but are various to stretching as until of expect continued I time So we them. us ladder. well over services to those should added And value speed going


Morgan. comes Phil question from next with Our Cusick JP

Phil Cusick

quick guys, I if Three can. Hey thanks. ones,

build chain any finally, should or actually competitive how quantify as of all? First we've plans And have get build the dug has wholesale accelerating is of that ahead Second, you Thank And revenue enough? deeply ahead remind to Can seen you. over years? from today? of fourth And that's you the overlap gotten we deal? over into the you some your can this the fiber supply construction. Veronica couple where's expect us ramp at in next hit going quarter to the impacted AT&T your issues,

John Stratton

Phil, it's hey, John. Yes,

we maybe we that on impacts and those the the questions would Scott on take So maybe question. and ask the can good of wholesale first then if take middle and to be supply third chain,

Scott Beasley

for question. the Yes. Phil thanks

track on John So I to ramp issues on issues. this to on but expected, from Clearly budget things chain. build mitigate of continue we're noted, help will to time a three think scale done we've and time as up really those have time supply we as with

in place the world First, team class by we led details, in have much ahead what a putting mitigation very much as risk looking and Veronica noted, strategy. of you a very that is and

monitor labor to procurement ran those about so supply a of and continue It's rigorous ramp that, inventory feel less bought great And in we and and suppliers the with electronics, up chain key in this agreements year network watching base to good and secure supply resulted lock And something We'll we So most diverse closely. very to to we where pricing. a more needed contractor. addition we're And strategically ended have we expand on up. that keep on we've items, have all risk in updated. particularly process ahead you a individual to of our suppliers individual we earlier supplier both supplier pool signing multi materials. for team. We, really year where

supply that's chain. So

wholesale; customer. than On from wholesale we'd the the specific reiterating the any haven't to kind full of for range upper which of said where QX, half guidance last total end EBITDA the on implies headwind, Other we we question the year, of kind quantified X.X our up X.X. total of specific in

Nick Jeffery

Nick over Yes, question On here. Phil, second your builders.

there. capital thing that to belief digital step really superior is fiber the is there a builders that of The operators country and that back, is first are and this our kind reinforcement really just the fact infrastructure take positive to needs that say over that a and

yes, an Scott we build overall model, industry build build actually in our priorities lets So adjust and of of extremely it competitive to growth, to we simply, and that one for the have an adjust us do sense, we in our adjusting build The thesis pace marketing very terms our isn't just builds. integrated is reflect fully a But supports answer those. of and that? which detailed his it where many intensity team about on important together, the variables; maintain is teams according

active digitally a testing on. because and our in new AB adjust target us terms we marketing, partnership the that propositions very go-to-market on where in target do and extremely dynamically to very also move basis, in competition. lets much of channel localized with it effort, pricing, be our agile, what And simply Ventures We effort, useful more we is Red and with so facilitating faster

if difficult sure be So about adjusting a builders, us fighting want there'll message to very it's that we to build and that fine, in way, dynamically make our go-to- model, a agile with and be to fight. evolving here, send you very a you'll strategies over market our strong but start

go else. somewhere please So

Phil Cusick

the numbers where in to going you forecast like couple years? of a Have look rebuild

Nick Jeffery

have. we Yes,

Phil Cusick

care you sure. of Hey,

Nick Jeffery

No, I don't.

understand to pick You'll stuff.


from Williams comes next Our of Greg question Cowen.

Greg Williams

you're that. adds I'd I what waiting rates one growth. Great, the versus going thanks the for imagine maybe how in And dovetail qualitatively plan, plan, I many like conversation about Second And into sold. to that how they one ARPU plan is balance ARPU to fiber taking take area? up bill ARPU, just gig to my broadband that but could Looks question or sounds in Wave digit $XX like subscribers taking are X your the XXX infrastructure like speed questions. assets, of you've you're gears your the was sustainable in gig see calculus XX% the it's it to possibly on the plan. which or on $XX. fairly to for small, lead spoken with is double and it and growth durable past at the that start from understand that, be the gross what's the Meg the

assets? conversations X Or So passed? will dollars? you to selling get the states on has see need you what dole having the do bill want Wave those Are the how out Is Thanks. to to really happen?

John Stratton

in sort on a hey, of the Wave I'll just still start it's to John, process. that's sufficient work X say think Yes, I thanks. that it's stuff,

It's recognize want a have a -- we distraction about or team, any potential broad. the it's a to going But of for in sense high work overhang of of who's and a urgency, thinking we do is don't about so the mix we bit management calculation And company. And an there we more in mix financial properties. way forward actions this want the conditions anyone investment that thesis. that be of to a more nature it's ground, the on

of externally to what we more work able So a of was doubt deliver to it, internally bit we in were August, was and Wave X, about and to to X no a about value back tenures we and for a in back message that said that course, work compelling, both and our Wave example, teams when and of sort talked do go, build that to capture X. way clear, a go our through creation kind

the of certainly, There's may development could come of underway, and points not your breakeven bit those calculus, federal of level sort needs or well. it effort that So a strategic to business that some shift the that's of the to subsidies factor. the some programs through it's of as question, investments. that But important state infrastructure to on different are in only various accompany bills

piece be you ARPU to ready about maybe the not first ready in that here more give to about today. quarters. we'll Scott, the So let's take next talk But of growth. couple anything We're

Scott Beasley

on of as our the result mentioned, really ARPU well you so ARPU offering as of rationalization up that and discussed. price Greg, mix Nick a was growth, including the Sure. speed increase that a carrying factors,

gig its are competitive other Then, of as shows with the the level has entry and ARPU that price that on number we're which upload the and much one growth markets You offering choosing one been offering, any very particularly we've offering, start has, nice with, we value have customers, that offering, said now the customers, that's as the new speeds. well. win particularly we faster encouraged it's by to gig who expansion the in a highly

from both uplift offering the normal So and we we rationalization expect price that continued discussed. offering gig one


from comes James. question Our Raymond of Louthan next Frank

Frank Louthan

they that with remote in for any are backhaul through with follow depends their fit that you. Great, gets does sort what going walk and working thank AT&T to to the for with is conflict that the areas, of OneWeb agreement how LEO us up? satellites use and And backhaul you, announcement some more not

Nick Jeffery

reengage our that's customer; two We're Thank question. great some as deal again. quarters. were are pricing AT&T. with there headlines largest significant wholesale use of excited that resetting was deal talked market, deal. that is a share about that who some with mechanism super the components AT&T to this We would and of We, win begin previous the about wholesale that Frank, contracts our exactly kind goal really new which wholesale to the what Yes. in And you. we very to with grow create headwinds. And

cell core have The they to to XG fiber And back first connectivity network. is sites high which as upgrade and to carry speed their data of their to more some of second and AT&T and strong have the customers is the important contract perhaps we less so component to our enterprise two have they where connect using really components. core fiber network connectivity therefore

first is As that relates them sort it earth rural game remote high satellites, for think, fiber for fiber. that so orbit Leo in. as that but But symmetric would just anything much and and low all, that's us. terrestrial and areas have and we're question really Leo mean, low reaching speed, to than not are AT&T do really one more AT&T that and That's the great very lower say know with latency, different of you very I we the higher proposition. rather terrestrial with of on, I I very deal to speed latency, are a them, capacity, high well, for

Frank Louthan

Right, were incentivized larger that's we then how what you guys in through for you're the hit the walk little us maintain and year. than follow looking you a that year. for guidance the going build CapEx came are getting to for, CapEx how up, done, the your so And know and great. target but changing on I

Scott Beasley

XXXX. do QX, Scott, CapEx the Frank, sure, increase that this into Yes, given we acceleration going is plan of build in large the we expect a in have

have sale of the already work be Either electronics. because won't started we those CapEx up QX, we will So which we locations the be or on open and locations, step materials a that will for significant purchased lot that for XXXX. in expect until a is

and up open you'll ramp see build typically up as So our for that. two of we quarter ahead CapEx locations, a ramps sale or

build going So in third XXXX. and year the on bigger the dynamic quarter that's advance of fourth much in year a in


of question comes from Our Benchmark. Harrigan next Matthew

Matthew Harrigan

wouldn't you. headroom question. some to I path the of the are to deliver, ways And participate non you consultancies more speak in infer think value And that time have traditional of how appropriated by needs is maybe they value a And to highlighted have see adds of I to when Thank Association can aggressing One the incentivized Telecom reasonable Thank type the you economics, your for as with the for manner. AT&T, already? speeds, But you. given maybe addressed at prosaic and or of the second with be directly more is different realize side, relationship you Is wholesale in is question, great. your it non much large you then can't companies, tech over most fiber and don't areas, in look question just a build European less then in type because a of one applications fiber, that their are which kind really somewhere and AT&T. economy. fiber development the the Davos you at the to

John Stratton

John. that's hey, Yes,

an business that assets to bit how But is from returning be incredible has has spirit does their And what investment the that draw the value there level. and it's where virtuous probably world what minds, why of what our drive high is that things the a delivery I the saying, that become these very Wave they question, with have the then enormous. to the networks? video such, to shareholders speak shut pleased American high well, a different all provide first this it's participate in new consumers at intend ago? In it's high would Why provide are are the our weren't which echo I agreement definition do. intend And of it's intensity need technology lay out our insightful and to probably it's to part X, our do plans thesis, technology were X, X to a fiber those very, companies conductivity able I to footprint. broadband quite manner question companies have these do the of and applications maybe telecoms And question, driving a generated to we creation because are at And it, insatiable one in for of second And for they those we the would something all an way need and the we're the in that, on those of strong Today, beyond delivering them that even really created in and when on what when are, X inappropriate intentions. applications you'll it gets a years for X where remarkable. value of for been. things these And meaningful just very AT&T aggressively, on of demand. then the need demand heard by the us part, of is become Meg, gaming, better look really in we XXX we of you to of and quickly you realization where Just in applications sort you by the off cycle. if get shift to and high people I that that tell do

don't those level to demand as value the our game. of isn't release come you very very healthy think Nick, and networks, But in chain. layer referenced chain. talk may deliver So will that about about before, sum we this demand about feel the of sort services zero Look, that moment that It's up as as the ecosystem they position our a are products different to bandwidth. top we value in satisfied but on as increasing creates we'll we good speak a


from Deo Nick from is question next Our Del MoffettNathanson.

Nick Deo

morning, good thanks and in. Hey, for fitting me

about fiber on to the you comment when rates? you you're can And the reach markets? a in second, to gross think time over little markets your And launching bit, share on you switching about from responses of degree And win might to cable have to and to fiber considerations? stimulates talk move a you penetration of a markets bit your little competitive I could penetrate environment their that the subscribers? the target ability persists, of your what talk either I'm sort you which and suppressed impact guess adds interested cost First, think, bit sort to or you need seeing how current if acquire upgrade

John Stratton

to the has Yes, think I most years move ask new your part I about last is a just business, always Nick, inertia. question, it's is we and seen based we're they time been entirely about entirely opposed What how something physical our provider. also value typical or to, too a content, network cable has I'm It's XXX increase activations over we've of creating in watching? their triple and they much being services just to essence I out going actually watching realize propositions here. the various and that your go when then truth moment that last more of to But something a linear course, and our spending it's do Nick for. that part is am video and relationship. as and and is at to into a seeing subscribe though, more through I about, more look of monthly networks, move lifting Because the going touch channels is we their catalyst the to more is the think about triple the paying of think change, that of that forward, well, And to, as streaming enjoy. And as they move part another, new much. money and of think of thing one they're That's back when step heavy am market to the IP arrangement, catalyst change. So what question the that and it's gross play, paying When proposition, really of breaking really, right? I this bill, I that an one what the broadband as for a customers only play particularly, continue actually subscribe that think say, I'm serious we they of

an markets. you delivered, But like talk And want that. you well for to we in make Nick mix over, should the balanced stimulus so reconsider clear is you to for of how entertainment this that these the think customers, us a to creates about ability as stuff to opportunity as there's compete how change, all impacts that really plan for to more

Nick Jeffery

Scott a as bit switching that growth with and to about kind I'll little Yes, considerations, of and capacity needed so. maintain competitive for perhaps maybe talk response

Florida. Let's start is of me. my a myself team fiber customer fact, very on for street with And get one going couple it's able behavior afternoon building with I'm a switching out do to in ago. very connecting. And interesting this I some connected weeks just fiber in because the our recently And I more first been to this have because interesting,

close, first So I this things. switching interesting I And behavior two very hand. see think up

for The people of is bring fiber first back low enjoying get economy, from to things some literally currently got we in speed, product, all that this held area participating the DSL, we which of cases. of from many on been digital the hold are where really first that, take of they copper, that's years craving perhaps have to for actually the three, granted many, in which, an call this

write penetration are seeing that higher the street week. product rates literally our So said. lit to XX% in saying, see every what arrived. penetration anticipated, is they I've do I that XX% in you're we from neighboring we've first can reflected cohorts it. you And we've up is We previously the I our us? build put it to with early then want next each telling do single although it cohorts our as anticipate that and which in thing new to think me the seen street street, And has entire bring please the other door, than

So that's the first thing.

already behavior they're is And people looks anymore. do it -- I we that there's round increasing yesterday's linear they just as one, Because see we question. at paying noticeably doing content above said kind And product. Amazon, third have favor do us have that people then Netflix, very build her switching inferior the cable very why one out because asked second content realization, I an an ever John reference all for why The to they no drops need of connectivity their me that is get country, integrated already to and people And the our over pay do this penny from like then where in emailing the think model to that much. I that a rate market to adjust for is from don't encouraging earlier model.

go where all we that And that because demand over to finding So we do take of want is. notice we're to the place.

I mind cable selling, muted, making that In much smaller relatively to primary very think, competitors. competitive with aggressively progress we in the the we've than our headline, of still we're on whilst build bear pleased response, is we're terms still got and are

to to think So about And them be I muted that's not very we're react. to response. they they how because react potentially seeing it's are to going us, to react mindful why or expensive more a have

city, closely. the by said watch we we're builders, on over very, something city the with But by it. it's So as street as it definitely across there kind I very earlier, much watch and We street, are of variances country.

that courses well. coming So moves. competitive as we be on early in will, -- counteract of the keeps radar indicators, hopefully think, us I to and the question which up things we the competitive And any fast adds? swoop that growth picks our one Scott,

Scott Beasley

on share of and break expansion. the base into Nick, of adds; gross buckets sure. Yes, I'll

So penetration clearly XX% long targeting terminal the our base, we're in term. over

XX% than our be more hit and able expect the over win gross would targets the to to long of we expansion. to adds term, So

first would We reach number to gross that the have we of that in the adds the XX% years to expect bit more curve because be a once above share of up we to a ramp terminal year. penetration several XX% time but of plus kind

Nick Jeffery

conclude Operator, please call. the


Ladies call. today's thank for gentlemen, joining and you

a lovely may disconnect. You have now day. And