Joshua Frantz

Joshua Frantz from Goldman Sachs asked how Altice USA's competitive strategy differs against large, well-capitalized rivals versus smaller fiber overbuilders. He also questioned if the company would increase marketing spend to boost subscriber trends, potentially impacting profitability goals.

Answer

CEO & Chairman Dennis Mathew explained that their hyper-local strategies are improving win-share against all competitor types, citing a 13% connect lift in targeted areas. He noted they are willing to invest where needed but are doing so surgically, balancing ARPU and volume. Mathew added that a new marketing team and the use of AI are driving greater efficiency and effectiveness in marketing spend.

Joshua Frantz of Goldman Sachs inquired about the specific drivers behind the increased leasing activity and sought perspective on the 5G deployment cycle's length compared to previous 3G and 4G cycles.

Answer

Interim President and CEO Daniel Schlanger explained that the higher leasing activity is broad-based across all customers and the company's footprint, driven by carriers needing to augment network capacity to handle subscriber growth and increased churn. He added that the 5G cycle is expected to be as long as, or potentially longer than, the 10-12 year 4G cycle due to the compounding growth in data traffic.