David Barden

David Barden questioned SBA's Brazilian REAL forecast of BRL 5.2 for 2026, contrasting it with American Tower's BRL 5.5, and asked why SBA is not physically turning off DISH's network or tearing down gear given their non-payment, instead of just filing a lawsuit.

Answer

Marc Montagner, CFO, explained that the BRL 5.2 forecast is SBA's best estimate, acknowledging the internal debate and varying external forecasts, but expects the Real to be strong in 2026 due to high short-term interest rates and Brazil being a net exporter. Brendan Cavanagh, President and CEO, stated that SBA is fully evaluating all rights and opportunities to enforce its position regarding DISH, following the law, but could not provide further details on specific actions.

David Barden inquired about SBA's Brazilian real forecast of BRL 5.2 for 2026, contrasting it with American Tower's BRL 5.5, and asked for the rationale behind SBA's assumption. He also questioned the strategy regarding DISH's non-payment, specifically why the company isn't physically disconnecting services.

Answer

Marc Montagner, CFO, explained that SBA's BRL 5.2 forecast is an estimate, acknowledging the variability in expert opinions (Central Bank at BRL 5.5, economists varying, spot at BRL 5.14). He cited Brazil's strong export surplus and high short-term interest rates (15%) as reasons for expecting a strong real, closer to BRL 5.0. Brendan Cavanagh, President and CEO, stated that SBA is following the law and fully evaluating all rights and opportunities to enforce its position regarding DISH, but could not provide further details on specific actions.

David Barden (Bank of America Corporation) asked about the implications of SBA's move towards investment-grade debt, particularly concerning refinancing costs and overall financial strategy. He also questioned whether direct-to-cell/satellite programs (Verizon, AT&T, T-Mobile/Starlink) are likely to reduce traditional tower spending in rural areas or if SBA sees a different dynamic.

Answer

Brendan Cavanagh, President and CEO of SBA, explained the investment-grade rating is a maturation process, consistent with lower leverage. It requires moving towards less secured debt but little operational change. He noted small cost savings (50-75 bps vs. high-yield, narrower vs. ABS) but significant benefits from market depth and longer tenors. On direct-to-cell, Mr. Cavanagh acknowledged carriers pushing into rural areas for FWA and regulatory reasons. He suggested direct-to-cell will cover economically inefficient areas but also provides data on concentrated usage, indicating where traditional macro towers are still needed.

David Barden asked if SBA is seeing demand related to the BEAD broadband program for fixed wireless access solutions and whether conversations around DISH's tower demand have changed following its recent refinancing.

Answer

President and CEO Brendan Cavanagh stated that SBA has not seen direct demand related to the BEAD program, which has been heavily fiber-oriented, though he is supportive of expanding it to include wireless. Regarding DISH, he noted that activity has been quiet and that SBA does not expect a large contribution in 2025, as DISH appears to be focused on its finances following its buildout extension. He speculated that a change to that extension could alter their plans.

David Barden questioned the scope of the Millicom deal, asking why assets were acquired in only five of its markets. He also asked about the strategic shift to a 98% fixed-rate debt profile and whether the balance sheet is now set for the next couple of years.

Answer

President and CEO Brendan Cavanagh clarified that the transaction included all of Millicom's Central American markets, where SBA already operates, not its South American ones. He and CFO Marc Montagner explained there was no change in debt philosophy; the high fixed-rate percentage is a result of opportunistic forward-starting hedges on floating-rate debt and a zeroed-out revolver. They confirmed the balance sheet is stable for the next 24 months, with only one minor maturity.

David Barden questioned the capital allocation strategy regarding emerging markets, specifically the concept of capital recycling and whether market valuations or currencies have impacted divestment plans. He also asked about the long-term view on satellite technology (2030, 6G, LEO constellations) and its potential disruptive impact on terrestrial wireless, comparing it to the AI evolution.

Answer

Steven Vondran, President and CEO, American Tower, stated the goal is to establish a real estate portfolio for industry-leading AFFO per share, with a pivot to developed markets for CapEx. He noted that while smaller emerging market countries are evaluated for accretive divestment, they are not a distraction due to operational changes. Regarding satellites, he expressed confidence that they will be complementary to terrestrial networks, with towers remaining the most cost-effective way to deliver mass data, citing the AST SpaceMobile investment for insights. Rodney Smith, EVP, CFO, and Treasurer, American Tower, added that past divestments (India, other businesses, AST SpaceMobile stake) demonstrate active portfolio management for delevering and share buybacks.

David Barden asked about the capital recycling strategy, specifically the pivot away from emerging markets, whether currency or valuations have hindered actions, or if any initiatives are underway. He also inquired about the potential impact of satellite (LEO constellations) on the terrestrial wireless business by 2030, considering 6G and AI evolution.

Answer

Steven Vondran, President and CEO, stated the goal is industry-leading AFFO per share, with a pivot of development CapEx to developed markets. He confirmed ongoing evaluation of smaller emerging markets for value realization, not fire sales, and noted operating model changes reduce distractions. Regarding satellites, he explained the AST SpaceMobile investment provides a board seat for monitoring, believing satellites will be complementary to terrestrial networks, with 6G likely designed for integration. However, towers will remain the cheapest and best way to deliver mass mobile data. Rodney Smith, EVP, CFO, and Treasurer, cited past examples of active portfolio management, including the India sale, other market exits, and the recent sale of half the AST SpaceMobile stake to fund share repurchases while retaining a board seat.

David Barden asked about Dish's current payment status and the conditions under which American Tower would consider taking a reserve, the potential tower implications for space-based players with terrestrial spectrum, and whether the threat to the WISP market poses a churn risk.

Answer

President and CEO Steve Vondran confirmed Dish is current on payments, and a lawsuit was filed to ensure no interruption, making reserves premature. He noted that space-based players might deploy terrestrial sites if offering direct service, which would be an upside not currently in guidance. He also stated that WISP churn is typically small and accounted for within the normal 1-2% churn range, with no expectation of falling outside this range.

David Barden followed up on Dish/EchoStar, asking about the circumstances under which American Tower would take a reserve given the lawsuit, and the potential tower implications for a space-based player now owning terrestrial spectrum. He also asked if the threat to the WISP market from SpaceX deployments, fixed wireless access, and BEAD funding poses a churn threat.

Answer

President and CEO Steve Vondran confirmed EchoStar is current, so no reserves are being taken, and the lawsuit aims to prevent interruption. For space-based players, Vondran noted that if they offer direct service, they might complement satellite networks with terrestrial sites due to penetration issues, which would be an unforecasted upside. Regarding WISPs, Vondran acknowledged they are a small percentage of revenue and some struggle, but doesn't expect their churn to exceed the normal 1-2% range.

David Barden asked for specific details on CoreSite's record leasing numbers, including the actual leasing figures, historical context, and the book-to-bill situation. He also asked for confirmation that the new adjusted attributable AFFO metric will be the primary anchor for future growth discussions.

Answer

Steven Vondran, President and CEO, did not disclose a specific leasing number for CoreSite but stated it is significantly higher than pre-acquisition levels. Rod Smith, EVP, CFO and Treasurer, added that the leasing backlog is up approximately 75% to around $70 million since the acquisition. Smith also confirmed that the new adjusted attributable AFFO metric will be reported as a key comparable as long as the India sale impacts base-year numbers.

David Barden asked about Array Digital Infrastructure's strategy for monetizing naked towers emerging from T-Mobile's site selections and the unconsolidated investment interests (non-controlling interests) largely with Verizon. He questioned whether these are considered anchor tenants of a going concern business or assets for sale, and if Array would underwrite the industry standard of 0.1 incremental tenant per tower per year for naked towers.

Answer

Anthony Carlson (President and CEO, Array Digital Infrastructure) stated that Array likes the cash flow from non-controlling investment interests and is not in a hurry to sell them, though they would entertain attractive offers. For naked towers, he believes there is significant latent value, viewing them as an option, and aims to reduce holding costs to realize potential long-term leasing opportunities. He declined to take a position on underwriting the 0.1 incremental tenant per tower per year, citing the newness of the portfolio without UScellular tenancy.

David Barden from New Street Research questioned Array Digital's strategy for monetizing the "naked towers" expected to emerge from T-Mobile's site selection process by 2028. He also asked about the company's posture on monetizing its unconsolidated investment interests, primarily with Verizon, inquiring if they are considered anchor tenants for a going concern or potential sale assets. Finally, he asked if Array Digital would underwrite the industry standard of 0.1 incremental tenant per tower per year for these naked towers.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, stated that Array Digital likes the cash flow from its non-controlling investment interests and is not in a hurry to sell them, though they would entertain attractive offers. Regarding naked towers, he believes there is significant latent value in most, viewing them as an option, and aims to reduce holding costs to realize potential long-term leasing opportunities. He declined to take a position on underwriting 0.1 incremental tenant per tower per year, citing the newness of the situation without UScellular tenancy.

David Barden with New Street Research questioned Array Digital Infrastructure's strategy for monetizing the "naked towers" expected to emerge from T-Mobile's site selection process by 2028. He also asked about the company's posture on monetizing its unconsolidated investment interests, primarily with Verizon, inquiring if they are considered anchor tenants or potential sale assets. Barden further asked if Array would underwrite the industry standard of 0.1 incremental tenant per tower per year for these naked towers.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, stated that the company likes the cash flow from its non-controlling investment interests and is not in a hurry to sell them, though it would entertain attractive offers. Regarding naked towers, he believes there is significant latent value in most, viewing them as an option with substantial long-term lease-up opportunity, and aims to reduce holding costs. Carlson declined to take a position on underwriting the industry standard of 0.1 incremental tenant per tower per year, citing the newness of the portfolio situation without UScellular tenancy.

David Barden asked about Array's strategy for monetizing naked towers that may emerge from T-Mobile's site selections and its unconsolidated investment interests, particularly with Verizon. He questioned whether these are viewed as anchor tenants or potential sale assets. He also asked if Array would underwrite the industry standard of 0.1 incremental tenant per tower per year for naked towers.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, stated that Array values the cash flow from its non-controlling investment interests and is not in a hurry to sell them, though they would consider attractive offers. Regarding naked towers, he believes they hold significant latent value and Array aims to reduce holding costs to realize long-term leasing opportunities. He declined to underwrite the industry standard of 0.1 incremental tenant per tower per year at this time, citing the newness of the situation without UScellular tenancy.

David Barden inquired about CEO Dave Schaeffer's new contract, specifically how his incentives and views on dividends might change. He also asked CFO Tad Weed about the specifics of the planned secured financing, including what assets would be secured, the amount, and expected rates. Additionally, he sought details on Cogent's WAVE market advantages, particularly regarding price and provisioning time, and the process to further improve provisioning speed.

Answer

CEO Dave Schaeffer clarified that the vast majority (80%) of his compensation remains equity-based, with long-term vesting, and he remains committed to shareholder returns after deleveraging. CFO Tad Weed stated that secured financing negotiations are ongoing, with terms and rates still being finalized, but the new debt is expected to price similarly to existing secured debt. Dave Schaeffer highlighted Cogent's WAVE advantages, including a 20%-30% price discount, broad footprint, route diversity, and reliability. He noted that provisioning time is currently 30 days, significantly faster than industry averages, with further improvements expected through process refinement and addressing pluggable optics lead times.

David Barden asked CEO Dave Schaeffer about his new contract, specifically how the introduction of cash compensation might alter his incentives regarding business strategy and dividends, given his historical stock-based compensation. He also asked CFO Tad Weed for details on the planned secured financing, including what assets would be secured, the amount, and expected interest rates, and inquired about Wavelength market advantages and provisioning time improvements.

Answer

CEO Dave Schaeffer clarified that the majority (80%) of his compensation remains equity-based, vesting in 2029, and his new cash component is a fraction of his total pay, not altering his commitment to shareholder returns or deleveraging to a 4x net leverage target before materially changing capital return strategy. CFO Tad Weed stated that secured financing terms, including rates, are still under negotiation, but CEO Dave Schaeffer expects pricing to be indicative of current secured debt. Schaeffer also detailed Wavelength market advantages, including a 20%-30% price discount, broad footprint, and route diversity, and explained that further reducing the 30-day provisioning time will involve process refinement and addressing pluggable optics lead times.

David Barden asked about the IPv4 leasing business, probing the price elasticity of demand following a price increase and slowing volume growth. He also requested a retort to a competitor's claim that the public internet is insufficient for the AI era and that the opportunity is moving away from players like Cogent.

Answer

CEO David Schaeffer stated that IPv4 demand remains robust despite a temporary adjustment period after the price hike, and he expects volumes to reaccelerate. In response to the competitive question, Schaeffer asserted that the internet's traffic growth is accelerating, not declining, driven by data collection for AI. He argued that Cogent is well-positioned by offering a hierarchy of services, from the most cost-effective public internet to more secure, private wavelengths, to meet diverse customer needs.

David Barden asked about the process when a carrier defaults on payments, specifically regarding equipment removal obligations, and the potential impact of the upcoming C-Band/upper C-Band auction's proximity to the radio altimeter band on deployment speed and the tower industry, with a follow-up on the timing for DISH's equipment removal.

Answer

Chris Hillabrant, President and CEO, stated that if a customer defaults and the contract is terminated, it becomes their obligation to remove equipment. He noted that while there were initial hiccups with C-Band deployment due to altimeter interference concerns, the industry and government rapidly found solutions. He expressed support for new spectrum auctions, believing they will benefit all tower companies. Sunit Patel, CFO, declined to provide specifics on the timing of DISH's equipment removal due to contractual complexities.

David Barden from New Street Research asked about the process when a carrier defaults on payments, specifically what actions Crown Castle takes regarding equipment removal and how this is accounted for. He also inquired about Crown Castle's view on the potential impact of the next major spectrum auction (upper C-Band, proximity to radio altimeter band) on the tower industry.

Answer

Chris Hillabrant, President and CEO, explained that if a customer defaults and the contract is terminated, it becomes the customer's obligation to remove their equipment as per the contract terms. He noted that such a situation (a carrier walking away from obligations) is unprecedented in his nearly 30 years in the industry. Regarding the C-Band auction, Chris Hillabrant acknowledged past interference concerns with altimeters but highlighted that the industry and FAA successfully found solutions, providing valuable lessons for future spectrum deployments. He emphasized that new spectrum auctions, like the 800 MHz planned for 2027, will ultimately benefit all tower companies by driving deployment.

David Barden questioned how Master Lease Agreements (MLAs) would be a competitive differentiator, the rationale for proactively canceling small cell nodes during a strategic review, and whether the review extends beyond the fiber business.

Answer

CEO Steven Moskowitz positioned MLAs as a 'win-win' that provides stable growth and simplifies carrier processes. He explained the node cancellation was a necessary, disciplined capital decision made as a fiduciary, regardless of the strategic review's timing. He firmly reiterated that the strategic review is focused solely on the fiber business to determine the best path for shareholder value.

David Barden sought clarification on the $212 valuation price for SpaceX stock in the recent AWS-3 unpaired deal, asking for information to support this valuation for public investors. He also inquired about the tax implications of the asset sales, specifically the potential for a 1033 stepped-up basis to reduce taxes below market expectations, and whether this was contingent on the outcome of tower litigations.

Answer

Charlie Ergen, CEO and Chairman of EchoStar, reiterated confidence in SpaceX's valuation, citing its management, industry leadership, and growth in broadband and device connectivity. Hamid Akhavan, President and CEO of EchoStar Capital, clarified that EchoStar is not an insider to SpaceX and views are based on public information, confirming the $7 billion-$10 billion range for unoptimized taxes and liabilities. Paul Gaske, COO of EchoStar, added that while some impairment charge items have already been deducted, the company is working to mitigate tax exposure, and the 1033 provision is not contingent on litigation outcomes.

David Barden asked for information supporting the $212 valuation price for SpaceX stock in the recent deal, details on the tax implications of asset sales, and whether the 1033 stepped-up basis theory could reduce the estimated $7 billion to $10 billion tax and liability range.

Answer

Charlie Ergen, CEO and Chairman of EchoStar, justified the SpaceX valuation by citing its management, market leadership in launch and satellite manufacturing, and growth potential in broadband and connected devices. Hamid Akhavan, President and CEO of EchoStar Capital, reiterated the $7 billion to $10 billion range for unoptimized taxes and liabilities. Paul Gaske, COO of EchoStar, confirmed that the impairment charge's tax benefit is included in this range and clarified that 1033 applicability is not contingent on litigation outcomes.

David Barden asked if AT&T is now out of the M&A acquisition game and solely focused on organic growth, considering recent deals, leverage targets, and shareholder returns. He also inquired about AT&T's board's succession plan, specifically if John Stankey would transition to Chairman, yielding the CEO title.

Answer

Chairman and CEO John Stankey stated that AT&T possesses all necessary assets for success over the next five years, emphasizing an internal focus on organic investment, operational improvement, and retiring legacy infrastructure. He indicated that the company's current focus is on executing these internal plays. Stankey declined to comment on succession plans, reiterating that the management team is focused on current business operations and execution.

David Barden asked if AT&T, considering its recent Lumen and EchoStar deals, leverage targets, and capital return plans, is now "out of the M&A acquisition game" and focused solely on organic growth. He followed up by asking about AT&T's board and CEO succession plan, specifically regarding John Stankey's potential transition to Chairman only.

Answer

Chairman and CEO John Stankey affirmed that AT&T has all the necessary assets to be successful over the next five years, with the current focus entirely on organic investment, operational improvement, customer service, and transitioning away from legacy infrastructure. He emphasized that the company's priorities are internal execution and not external M&A. Stankey declined to comment on succession planning, stating the management team is focused on current business operations.

David Barden asked for the informational value in the observation that mobile net adds among fiber customers equaled total net adds for the quarter. He also questioned if a recent real estate deal was included in the $16 billion free cash flow guidance and how future real estate sales from copper decommissioning might contribute.

Answer

CEO John Stankey advised against over-analyzing the timing of mobile net adds within the fiber base, stating the strategy targets the entire unaddressed base, not just new installs. CFO Pascal Desroches clarified the real estate deal is a financing transaction and will not run through free cash flow, which is driven by EBITDA growth, lower interest, and stable working capital.

David Barden of Bank of America asked for perspective on how AI model efficiencies, like DeepSeek, impact the 'tokens to watts to dollars' framework and Digital Realty's demand outlook from hyperscalers.

Answer

CEO Andrew Power stated that despite efficiency gains, top customers have consistently indicated no change in their significant AI infrastructure investment plans, with CapEx outlooks remaining robust. CTO Chris Sharp added that AI democratization and new features will drive higher utilization and demand, believing that Jevons paradox (efficiency increasing demand) will outpace Moore's law.

David Barden asked for help defining the 'new normal' for quarterly bookings after a volatile year and questioned what is driving non-AI demand, given that AI has consistently accounted for 50% of record bookings.

Answer

President and CEO Andy Power highlighted that core demand from enterprise digital transformation and hybrid IT remains massive, pointing to a record $66 million in 0-1 megawatt and interconnection bookings and 149 new logos. While cautioning against expecting another record quarter in Q4, he emphasized the growing backlog, now 20% of annualized revenue, as the key indicator of sustainable future growth.

David Barden probed the rationale behind slowing the Canadian fiber build, asking what dire outcome BCE fears from the CRTC allowing competitors to resell its network. He also asked directly if telecom towers are being considered for monetization as part of the noncore asset review.

Answer

Mirko Bibic, President and CEO, stated that there is significant untapped value in BCE's telecom infrastructure and that financial advisors have been retained to explore options, but clarified this is separate from the $7 billion noncore asset target. He explained the fiber build slowdown is not a complete stop but a strategic reallocation of capital, as the company prefers to compete against other facility-based network builders rather than being forced to enable resellers on its own infrastructure.

David Barden requested an outlook on wireless ARPU for the second half of the year, asking for potential good, base, and bad case scenarios. He also asked if BCE's decisions to cut CapEx and employment in response to regulatory actions have yielded any positive results.

Answer

CEO Mirko Bibic described the wireless market as facing intense competitive pressure but noted that Bell took steps in early July to reset pricing to more sustainable levels. However, he stated it was 'too early to call' the impact on ARPU for the rest of the year. Regarding the second question, he reiterated BCE's focus on its core strategy of fiber, premium wireless, bundling, and AI, without directly commenting on the outcome of its responses to regulatory decisions.

David Barden inquired about the net cash flow impact from PCF construction contracts in 2025 and 2026, their contribution to the 2026 EBITDA target, and the potential for Lumen to pursue fiber securitization deals.

Answer

CFO Christopher Stansbury stated that the PCF revenue contribution to 2026 EBITDA will be minimal, with growth primarily driven by modernization efforts and product mix improvements. He confirmed the PCF deals fill a funding gap but declined to provide specific cash flow details, noting guidance excludes new deals or refinancings. Regarding securitization, he acknowledged it as a future opportunity but not a top priority compared to other debt structure initiatives.

David Barden of Bank of America questioned if the cash flow from the new $3 billion PCF deal was sufficient for significant deleveraging, asking if Lumen was using upfront payments for balance sheet management before funding the projects. He also requested more clarity on the 2025 EBITDA trajectory.

Answer

EVP and CFO Chris Stansbury was adamant that Lumen is not using customer prepayments to delever and then re-raising debt to fund builds. He explained that cash on hand, combined with cash from the total $8 billion in deals, provides ample liquidity to both fund the transformation and delever. Regarding 2025, he declined to give specific guidance but noted that current street estimates are likely 'a little high' and that 2026 should be a 'significant inflection point.'

David Barden requested a summary of the expected aggregate impact of the Vistar, Lumos, Metronet, and U.S. Cellular transactions on future EBITDA and free cash flow. He also asked for clarity on T-Mobile's exposure to immigration trends within its prepaid, wholesale, and retail subscriber bases.

Answer

CFO Peter Osvaldik stated it was premature to provide an aggregate financial impact for the pending deals but reiterated they are all value accretive and not included in the current guidance. On immigration, President of Consumer Group Jon Freier explained that T-Mobile's prepaid business is stable and insulated from immigration flows because it focuses on high-value monthly subscriptions, not transactional services, noting they saw no outsized impact during the 2022 immigration peak.

David Barden from Bank of America inquired about the potential timing of Deutsche Telekom increasing its ownership stake in T-Mobile and whether the full-year postpaid phone net add guidance implies conservatism for Q4.

Answer

President and CEO G. Sievert deferred questions on Deutsche Telekom's specific timing to DT but affirmed their supportive relationship. CFO Peter Osvaldik noted the full-year guidance of approximately 3 million postpaid phone adds is achievable, acknowledging that the two biggest months of Q4 are still ahead, which warrants a cautious but ambitious stance. Sievert added that quarter-to-date trends are strong.

David Barden asked for clarification on what revenue streams remain in the 'Other' revenue category after recent reclassifications. He also posed a hypothetical question about the potential impact of a major cable merger on Verizon's MVNO business and followed up on the cash tax outlook.

Answer

CFO Tony Skiadas clarified that the 'Other' revenue line now primarily consists of USF, other fees, and MVNO relationships. He confirmed cash taxes would be higher but are managed within the free cash flow guidance. CEO Hans Vestberg declined to speculate on M&A, stating that MVNO relationships are important, accretive, and built on the strength of Verizon's network.

David Barden of Bank of America asked for clarification on what remains in the 'other' revenue category after recent reclassifications. He also posed a hypothetical question about the potential impact on Verizon's MVNO business if major cable companies were to merge.

Answer

CFO Tony Skiadas explained that the 'other' revenue line now primarily consists of USF and other fees, as well as the company's MVNO relationships. CEO Hans Vestberg declined to speculate on hypothetical mergers but emphasized that MVNO relationships are very important, treated like large enterprise accounts, and are accretive to Verizon's strategy of maximizing profitable connections on its network. He expressed confidence in Verizon's position due to having the best network.

David Barden asked for an update on the state-by-state regulatory approval process for the Windstream merger, an explanation for why a one-time revenue benefit did not fully flow through to EBITDA, and clarification on the hyperscaler sales process.

Answer

CEO Kenneth Gunderman addressed the regulatory process, stating progress is excellent with no surprising issues, and the original H2 2025 closing timeline now appears conservative. On the hyperscaler sales process, he described it as less of a traditional sale; hyperscalers secure land and power first, then seek reliable fiber partners who can build quickly, prioritizing execution over lowest cost. CFO Paul Bullington explained the revenue guidance increase was from a one-time lease-up at Uniti Leasing, and while it did increase that segment's EBITDA, it was offset by higher corporate SG&A expenses, resulting in no change to consolidated adjusted EBITDA guidance.

David Barden from Bank of America sought clarification on the new 'cabinet equivalent' disclosure and questioned the heavy strategic focus on the xScale program, given its small revenue contribution, asking if it signaled a narrative shift.

Answer

CFO Keith Taylor explained the 'cabinet equivalent' adjustment reflects how high-power density deployments consume infrastructure, thus reducing the number of available physical cabinets. CEO and President Adaire Fox-Martin positioned the xScale focus as an 'and, not an or' strategy, calling it a 'multiplier' for the core business that provides a complete product set to serve all customer needs, from hyperscale AI training to enterprise private AI. Keith Taylor added that xScale's AFFO contribution will grow significantly over time.

David Barden questioned the logic of the financing, likening it to a securitization where cash outflows could increase despite deleveraging. He also asked for perspective on how government immigration policy changes will impact industry growth.

Answer

Chief Financial Officer Glenn Brandt resisted the 'securitization' label, emphasizing it is an equity transaction and that the company is very pleased with the overall financial balance of the deal. President and CEO Tony Staffieri acknowledged the impact of immigration curbs but noted Rogers still achieved leading market share by executing across all segments, and that organic market growth from rising penetration remains healthy.