Michael Rollins

Michael Rollins asked if 2026 is expected to be the bottom for organic lease growth, with collective factors driving more activity in subsequent years. He also inquired about the remaining consolidation churn, both domestically and internationally, after addressing current issues, to achieve a smoother organic growth path.

Answer

Brendan Cavanagh, President and CEO, stated that 2026 is likely the bottom for organic lease growth, attributing the slight dip to cyclicality in carrier activity (e.g., T-Mobile slowing, Verizon picking up) and the front-end loaded nature of the AT&T MLA. He expects a return to the 2%-3% organic lease-up range in a normalized environment. Regarding churn, he indicated that most major consolidation events (DISH, Sprint, UScellular in the U.S.; Oi wireline internationally) are either resolved or in their final stages, with minimal material remaining churn expected beyond the next year or two.

Michael Rollins asked if 2026 represents the bottom for organic lease-up and if collective factors will drive more activity in the coming years. He also inquired about the remaining consolidation churn, both domestically and internationally, to achieve a smoother organic growth path.

Answer

Brendan Cavanagh, President and CEO, indicated that 2026 is likely the bottom for organic lease-up, attributing current levels to cyclical carrier activity (e.g., Verizon pickup offsetting T-Mobile slowdown) and the front-end loaded AT&T MLA. He expressed confidence in returning to the 2%-3% organic lease-up range. Regarding churn, he stated that most major consolidation events are behind them, with Sprint's last big year and Oi Wireline churn pulled forward, expecting a market improvement in the next one to two years.

Michael Rollins (Citigroup) asked how the new Verizon MLA influences SBA's conviction on achieving mid-single-digit domestic leasing growth over multiple years. He also inquired about regulatory delays encountered in international M&A, specifically with Millicom, and their implications for future consolidation opportunities in various markets.

Answer

Brendan Cavanagh, President and CEO of SBA, affirmed that the Verizon MLA's long-term, predictable contributions bolster confidence in achieving mid-single-digit domestic organic growth, particularly from Verizon. Regarding regulatory delays for Millicom, he clarified these were international and sometimes occurred even without significant market share. Mr. Cavanagh noted that high market share can complicate add-on acquisitions but doesn't view it as a major hurdle for future deals, as it's integrated into their evaluation process.

Michael Rollins from Citigroup Inc. asked about the fair long-term annual growth rate for AFFO per share and what stage the company is in to achieve that rate, considering headwinds like churn and rising interest rates.

Answer

President and CEO Brendan Cavanagh stated that normalizing for interest rate headwinds, a mid-to-high single-digit AFFO per share growth rate would be very achievable. He identified refinancing low-cost debt at higher rates as the biggest headwind, suggesting it will take several years to work through. He noted the next three debt maturities all have coupons in the 1% range, highlighting the significant impact of refinancing.

Michael Rollins asked for an update on the visibility for international organic growth and churn dynamics, particularly in Latin America. He also questioned the implications of negative straight-line revenue and whether it signals potential for significant lease renewals.

Answer

President and CEO Brendan Cavanagh explained that international churn will likely remain elevated for the next few years, especially in Brazil due to carrier consolidation, which also temporarily slows new lease-up. Regarding straight-line revenue, he clarified that its negative turn is a normal function of a maturing lease portfolio and does not inherently signal anything specific about renewals, as it's an accounting reversal of previously booked non-cash revenue.

Michael Rollins asked if rising merger-related churn is leading to a significant increase in fees for abandoned equipment and requested an update on SBA's target debt leverage and capital allocation priorities.

Answer

President and CEO Brendan Cavanagh responded that while there are decommissioning fees, much of that revenue has already been recognized in prior periods, and he does not expect it to be a meaningful contributor going forward. On capital allocation, he stated that the company will likely remain in the 6.0x to 6.5x net debt to adjusted EBITDA range, driven by available investment opportunities rather than a specific target. He affirmed they would be comfortable levering up for a significant deal but expect to end the year below 6.5x.

Michael Rollins asked if the rising leasing activity increases the likelihood of new comprehensive Master Lease Agreements (MLAs) with domestic carriers. He also inquired about the company's philosophy on using fixed versus CPI-based escalators in lease renewals.

Answer

President and CEO Brendan Cavanagh responded that while the company is open to comprehensive MLAs if they are mutually beneficial, there is no specific push to sign more of them. Regarding escalators, he noted that they rarely change on the embedded lease base. For new leases, the company typically negotiates fixed-rate escalators on a case-by-case basis rather than using a CPI-linked structure.

Michael Rollins inquired about the 200-300 basis point cash margin expansion target by 2030, asking how much is organic operating leverage versus accelerated efficiency initiatives, and if this target fully incorporates previously discussed efficiency efforts, including potential AI upside.

Answer

Rodney Smith, EVP, CFO, and Treasurer, American Tower, explained that the margin expansion is a continuation of long-term cost management, now pivoting to global operations and direct expenses, absorbing Dish churn and CoreSite margin adjustments. Steven Vondran, President and CEO, American Tower, confirmed the target encapsulates the four new initiatives but noted AI could offer incremental upside, which is not yet quantified.

Michael Rollins asked for clarification on the 200-300 basis point cash margin expansion target by 2030, specifically how much is organic versus from accelerated activities, and if this target fully incorporates recent efficiency efforts.

Answer

Rodney Smith, EVP, CFO, and Treasurer, explained that the 2026 cash EBITDA margin guidance of 66.8% is slightly down due to contributions from lower-margin data centers and services, DISH churn, and a non-recurring CoreSite property tax benefit in 2025. He stated the 200-300 basis point expansion is a continuation of historical cost management, now pivoting to direct expenses. Steven Vondran, President and CEO, confirmed it encapsulates the four new initiatives, with potential incremental upside from AI, and advised focusing on tower-specific margin expansion.

Michael Rollins inquired about EchoStar's anticipated contribution to growth over the next few years, American Tower's long-term domestic leasing growth guidance (excluding EchoStar), and the possibility of new multi-year guidance.

Answer

President and CEO Steve Vondran declined to give specific future contributions for EchoStar, deferring to next year's guidance. He affirmed confidence in the long-term U.S. organic growth guide, driven by mobile data consumption, but noted that unforeseen events like the T-Mobile/U.S. Cellular deal and Dish spectrum sale would be factored into 2026/2027 guidance. He emphasized that the long-term algorithm of mid-single-digit organic growth in developed markets remains unchanged.

Michael Rollins asked about EchoStar's anticipated contribution to growth over the next couple of years based on contractual minimums, whether American Tower is on track for its long-term domestic leasing growth guidance, and if new multi-year guidance would be provided given industry changes.

Answer

President and CEO Steve Vondran declined to give specific future contributions for EchoStar, deferring to February's guidance. He acknowledged that the original long-term U.S. organic growth guide (from 2021) did not foresee events like T-Mobile buying U.S. Cellular or Dish selling spectrum, and these will be factored into 2026/2027 guidance. Vondran reiterated that the long-term growth algorithm (mid-single digits for developed markets, higher for emerging) remains unchanged, driven by mobile data consumption, potentially boosted by AI, and that a new multi-year guide is not planned beyond the existing algorithm.

Michael Rollins asked for details on the U.S. leasing environment, questioning the contrast between rising applications and a commencement delay from one customer, and its impact on H2 2025 and 2026. He also inquired about progress on internal efficiency initiatives.

Answer

President & CEO Steven Vondran clarified the commencement delay is a minor timing issue with a single customer and not indicative of a weakening pipeline, which remains healthy. He set a year-end deadline for new efficiency targets aimed at long-term margin improvement. EVP, CFO & Treasurer Rod Smith added that the timing issue slightly lowered the full-year new business forecast to ~$160M and adjusted the U.S. organic tenant billings growth guide to "approximately 4.3%".

Michael Rollins questioned the competitive landscape for U.S. colocation opportunities and whether American Tower could improve its win rate. He also asked for factors that might cause full-year EBITDA to fall back into the guidance range, given that the annualized Q1 result is currently above it.

Answer

CEO Steven Vondran explained that colocation competition varies by geography and that win rates are influenced by providing excellent customer service during the network design phase. CFO Rod Smith noted that while Q1 was strong, the full-year outlook remains prudent due to the timing of items like cash taxes and maintenance CapEx, as well as a potential moderation in services revenue later in the year.

Michael Rollins from Citigroup inquired about the U.S. leasing environment, specifically the mix of colocation versus amendments and its impact on 2025 organic tenant billings growth, and sought an update on the company's multiyear growth outlook through 2027.

Answer

CEO Steven Vondran confirmed the long-term 2023-2027 growth guidance remains intact. He explained that the modest 2025 step-down in U.S. organic growth is due to the cadence of contracted use fees, not a softening of demand, noting a robust pipeline with a rising mix of colocations. CFO Rod Smith added that the guidance of greater than or equal to 4.3% growth is consistent with their multiyear average target of around 5% and that non-recurring Sprint churn will cease to be a headwind after Q3 2025, creating a positive inflection point for growth.

Michael Rollins with Citi asked Array Digital Infrastructure to clarify the growth rate embedded in its 2026 revenue guidance, specifically for same-store growth, excluding T-Mobile MLA committed and interim sites, and accounting for existing leases, new colocation, amendments, and normal course churn. For TDS Telecom, Rollins inquired about the future of its video business, seeking insights into customer lifetime value, churn, margin, and economics for standalone broadband versus bundled video customers. He also asked if the company might eventually consider letting others handle video (streaming) to optimize its broadband P&L.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, stated that excluding DISH revenue, Array expects approximately 6% same-store growth in 2026, which includes existing leases, new colocation, amendments, and normal course churn, but excludes all T-Mobile activity. Ken Dixon, President and CEO of TDS Telecom, affirmed the company's commitment to its video business, highlighting its strong margins and critical role in attracting bundled customers and reducing churn. He also mentioned the launch of a mobile product in 2025 to offer a quad-play, indicating a continued focus on bundling rather than outsourcing video.

Michael Rollins inquired about the embedded same-store growth rate within Array's 2026 revenue guidance, specifically for existing leases, new colocation, amendments, and normal churn, excluding T-Mobile activity. He also asked about TDS Telecom's long-term video strategy, including the economics of standalone broadband versus bundled video customers, and whether the company might consider outsourcing video to focus solely on broadband.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, indicated an expected same-store growth rate of approximately 6% for Array in 2026, excluding DISH revenue. Ken Dixon, President and CEO of TDS Telecom, affirmed the company's commitment to its video business, citing strong margins and its importance for attracting bundled customers and reducing churn. He also mentioned the launch of a mobile product in 2025 to offer a quad-play bundle, with plans for stronger mobile bundling in 2026.

Michael Rollins asked for perspective on the potential and timing for turning around UScellular's postpaid phone gross additions and the path to positive net adds. He also asked if TDS Telecom has considered shifting its fiber strategy from a retail to a wholesale business model.

Answer

UScellular CEO LT Therivel outlined a two-pronged approach: improving churn through retention programs and boosting gross adds with more aggressive promotions, noting early positive results from recent changes. He also emphasized the long-term importance of the enterprise segment. TDS Telecom CFO Michelle Brukwicki responded that their strategy remains focused on owning their networks and serving retail customers directly, and they are not currently considering a wholesale-centric model.

Michael Rollins from Citi asked Array Digital about the embedded same-store growth rate in its 2026 revenue guidance, specifically excluding T-Mobile committed and interim sites, and including existing leases, new colocation/amendment, and normal churn. For TDS Telecom, he inquired about the future of its video offering, seeking insights into customer lifetime value, churn, and margin economics for standalone broadband customers versus those who bundle video. He also explored whether TDS might eventually consider outsourcing video to focus on a more efficient broadband business model.

Answer

Anthony Carlson, President and CEO of Array Digital Infrastructure, stated that Array Digital expects approximately 6% same-store growth in 2026, excluding DISH revenue and all T-Mobile activity, and accounting for existing leases, new colocation/amendment, and normal churn. Ken Dixon, President and CEO of TDS Telecom, affirmed the importance of the video business, citing strong margins and its critical role in attracting bundled customers and reducing churn. He also mentioned the launch of a mobile product in 2025 to offer a quad-play, indicating no plans to outsource video.

Michael Rollins asked about Array Digital Infrastructure's embedded revenue growth rate for 2026, excluding T-Mobile MLA committed and interim sites, and including normal course churn. He also inquired about TDS Telecom's strategy for video services, specifically discerning customer lifetime value, churn, and margin differences between standalone broadband and video bundles, and considering outsourcing video for more efficient broadband operations.

Answer

Anthony Carlson (President and CEO, Array Digital Infrastructure) stated that Array expects approximately 6% same-store revenue growth in 2026, excluding Dish revenue and T-Mobile activity, which includes existing leases, new colocation/amendment leases, and normal churn. Ken Dixon (President and CEO, TDS Telecom) affirmed the importance of the video business for strong margins and as a critical part of the value proposition for bundled customers, noting that some customers choose TDS for broadband only if video is offered. He also mentioned the mobile product launch for a quad-play offering and plans to bundle mobile stronger in 2026.

Michael Rollins asked about the remaining duplicative costs and timing of savings from the Sprint integration, the burn rate for the data center portfolio, and the drivers and trends for Heritage Cogent's corporate and NetCentric businesses.

Answer

CEO Dave Schaeffer stated that the vast majority of targeted cost savings (over $230 million of $240 million) have been achieved, with a small tail remaining. Integration expenses, which peaked at $5 million/month, are now closer to $3 million/month and are expected to end by year-end. He detailed that the infrastructure business, including data centers, has a negative EBITDA of about $140 million, with roughly 20% associated with data centers, which Cogent aims to sell. NetCentric growth is driven by IPv4, Waves, and core transit, while Heritage Cogent's corporate business growth primarily comes from DIA services.

Michael Rollins asked for specifics on remaining duplicative costs from the Sprint integration, the timing of associated savings, and the burn rate for the data center portfolio targeted for monetization. He also inquired about the drivers of revenue change in the Heritage Cogent corporate and NetCentric businesses.

Answer

CEO Dave Schaeffer stated that Cogent Communications has achieved over $230 million of its $240 million targeted cost savings, with a small tail remaining. Incremental integration expenses, which peaked at $5 million/month, are now closer to $3 million/month and are expected to end by year-end. He detailed that the infrastructure business, including data centers, has a negative EBITDA of $140 million, partially offset by $60 million from IPv4 securitization, resulting in a -$80 million EBITDA for the silo. Approximately 20% of the negative costs are associated with data centers. For Heritage Cogent, corporate business growth is primarily driven by DIA, while NetCentric growth is attributed to IPv4, Wavelengths, and core transit products.

Michael Rollins from Citigroup Inc. asked for more detail on revenue growth opportunities across the Corporate, NetCentric, and Enterprise customer verticals and requested a deeper explanation of the path to reducing net debt leverage, including the evolution of both the debt (numerator) and EBITDA (denominator).

Answer

Dave Schaeffer, Founder & CEO, reiterated the focus on high-margin on-net services, which dominate the NetCentric segment and are a key part of the corporate strategy. He explained that deleveraging will come from three areas: aggregate revenue growth returning to 6-8%, margin expansion of 200 bps annually driving EBITDA growth, and the natural reduction of leverage as EBITDA grows. CFO Thaddeus Weed clarified the leverage calculation, noting the numerator is net debt as of the balance sheet date and the denominator is historical LTM cash EBITDA, avoiding double counting.

Michael Rollins from Citigroup asked about the drivers behind slower year-over-year internet traffic growth and its implications for pricing and transit revenue. He also inquired about any changes in customer behavior following recent tariff announcements and the potential impact of a slower macroeconomic environment on Cogent's business.

Answer

CEO David Schaeffer noted that traffic growth has moderated to about 8%, aligning with industry trends, due to slowing broadband adoption and video consumption growth. He expects pricing declines to remain consistent at 22-23% annually. Schaeffer stated that while tariffs create an initial shock for customers buying equipment, he does not anticipate a material impact on Cogent's business. He acknowledged that corporate customers are more cautious in the current macro environment but believes Cogent's utility-like service is resilient.

Michael Rollins inquired about the progress of integrating acquired Sprint revenues within the corporate, enterprise, and NetCentric segments and their respective growth prospects over the next few years.

Answer

CEO David Schaeffer explained that the NetCentric segment is currently growing and will accelerate with wavelength and IPv4 sales. He projected the corporate segment will see a couple more quarters of decline due to grooming low-margin services before returning to growth. The enterprise segment's revenue decline is expected to last longer, into early 2026, due to the complex grooming of international off-net circuits.

Michael Rollins requested a breakdown of the year-over-year revenue decline, asking for the growth of 'heritage' Cogent businesses versus the shrinkage from acquired Sprint assets. He also asked for a normalized run-rate for cost of service and whether there was a specific target dollar amount and date for asset monetization to support the capital allocation plan.

Answer

CEO David Schaeffer detailed the intentional revenue shrinkage from non-core, low-margin, and bad inherited deals. He stated the core Cogent corporate business is growing around 4% annually, while NetCentric is growing about 10%. He suggested the Q2 cost of service level was a better baseline than the noisy Q3. While declining to give a specific monetization target, he expressed comfort that organic EBITDA growth and asset sales (ranking data centers as most probable) would support capital returns and deleveraging.

Michael Rollins asked about the fixed-to-mobile convergence (FMC) opportunity, including current converged take rates, potential volume growth, and whether it requires substantial discounting. He also sought a fair range for Liberty Latin America's multi-year annual rebased revenue growth.

Answer

CEO Balan Nair explained that FMC is a significant benefit, driving migration from prepaid to postpaid and linking postpaid mobile with fixed broadband, which increases ARPU and reduces churn. He highlighted the high opportunity in Puerto Rico. For multi-year rebased revenue growth, Mr. Nair indicated respectable single-digit growth for mobile, flattish to slight growth for fixed (broadband growth offset by legacy products), and good growth for B2B (cloud services offsetting voice decline). He noted roaming as a continuous headwind but emphasized EBITDA expansion through cost cutting and focus on higher-margin products.

Michael Rollins asked for an understanding of the fixed-to-mobile convergence (FMC) opportunity, including current converged take rates in major markets, potential volume growth, and whether achieving this growth requires substantial discounting. He also sought a fair range for Liberty Latin America's annual rebased revenue growth on a multi-year basis.

Answer

CEO Balan Nair explained that FMC is a significant benefit, involving migration from prepaid to postpaid and linking postpaid mobile with fixed broadband, leading to higher ARPU and lower churn. He highlighted the opportunity in Puerto Rico given high fixed broadband and lower mobile postpaid penetration. For revenue growth, Mr. Nair indicated respectable single-digit growth for mobile, flattish to slight growth for fixed (due to legacy product headwinds), and good growth in B2B (driven by cloud services offsetting voice declines), with roaming also presenting a headwind. He emphasized investing in growing products and managing challenged ones to drive EBITDA expansion through cost cutting and higher-margin products.

Michael Rollins asked for clarification on the 2025 outlook, questioning if the $45 million monthly EBITDA target for Puerto Rico implies a $540 million annual run rate and whether 2025 will mark a return to positive rebased revenue growth for the entire company.

Answer

CEO Balan Nair advised against a simple straight-line calculation for 2025 Puerto Rico EBITDA, stating the $45 million monthly figure is a target to be reached by late 2024, with growth expected from that base throughout 2025. He expressed strong confidence in achieving positive rebased revenue growth for the consolidated company in 2025, citing momentum and strategic initiatives across all five business segments, including recovery in Puerto Rico, network upgrades in the Caribbean, and a shift to recurring revenue in the Networks business.

Michael Rollins inquired about Equinix's efforts to improve churn, specifically how much is within the company's control versus customer workload optimization, and sought clarification on the drivers behind the 6% stabilized revenue growth relative to recent history.

Answer

Adaire Fox-Martin, CEO and President, addressed churn, stating that it has been at the lower end of the guided range due to better data access, new predictive tools, earlier identification of 'available to renew' (ATR) customers, and proactive engagement by the customer success team, leading to renewals and upsells. Keith Taylor, Chief Financial Officer, explained the 6% stabilized growth was driven by increased volume through stabilized assets (82% utilized), higher density per cabinet, and one-time Q4 price increases, while reiterating a general expectation of 3%-5% growth for stabilized assets.

Michael Rollins inquired about Equinix's efforts to improve churn, distinguishing between company-controlled factors and customer optimization, and sought clarification on the drivers behind the 6% stabilized revenue growth.

Answer

Adaire Fox-Martin, CEO and President, detailed churn reduction through earlier identification of 'available to renew' (ATR) customers, proactive engagement by customer success teams (leading to 60% of existing customers adding services in Q4), and predictive tools. She acknowledged a portion of churn is unaddressable. Keith Taylor, CFO, attributed stabilized asset growth to increased volume, higher density per cabinet, and Q4 price increases, while reiterating a typical 3%-5% growth range for stabilized assets.

Michael Rollins inquired about the demand for 'larger footprint retail' deployments and the potential for significant pre-leasing for these. He also sought clarification on the Q4 revenue guidance range, specifically regarding the non-recurring xScale revenue component and the implications if those bookings shift to 2026.

Answer

Adaire Fox-Martin, President and CEO of Equinix, noted a healthy mix of large footprint deals in Q3, alongside strong retail and interconnection growth. She confirmed that customers requiring contiguous capacity are utilizing the pre-sale process. Keith Taylor, CFO of Equinix, explained that the Q4 revenue guidance includes a meaningful step-up in non-recurring xScale fees, with roughly two-thirds of the non-recurring component attributed to a large potential transaction. The expanded guidance range accounts for the fluidity of contracting timing, with the intention to close the transaction in Q4 2025, but acknowledging the possibility of it shifting to Q1 2026.

Michael Rollins inquired about the demand for larger footprint retail deployments, the potential for significant pre-leasing in this segment, and sought clarification on the Q4 revenue guidance range, specifically the non-recurring revenue component related to xScale bookings.

Answer

Adaire Fox-Martin, President and CEO of Equinix, noted a healthy mix of large footprint deals in Q3 and confirmed that pre-sale is used to secure contiguous capacity for customers in high-demand markets. Keith Taylor, CFO of Equinix, explained the Q4 revenue step-up includes over $60 million from recurring revenue and approximately $90 million from non-recurring revenue, with two-thirds of the latter attributed to a large potential xScale transaction for a full 240-megawatt buildout (half of which is embedded in current guidance). The expanded guidance range accounts for potential timing shifts if the deal closes in Q1 2026 instead of Q4 2025.

Michael Rollins from Citi inquired about opportunities to improve MRR churn and the outlook for xScale leasing for the remainder of 2025 and into 2026, including available inventory.

Answer

CEO Adair Fox-Martin stated that Q2 churn was an anomaly due to a bankruptcy and is expected to return to the 2-2.5% range. She noted that adding new capacity is a key lever to manage churn. On xScale, she confirmed the pipeline supports a back-half loaded step-up in non-recurring revenue (NRR). CFO Keith Taylor added that NRR is projected to be ~4.5% of revenue in Q3 and rise to ~6% in Q4, underscoring the accelerating recurring revenue model.

Michael Rollins from Citi inquired about opportunities to improve MRR churn and the outlook for xScale leasing for the remainder of 2025 and into 2026, including available inventory.

Answer

CEO Adair Fox-Martin stated that while Q2 churn was elevated by a specific bankruptcy, it's expected to return to the 2-2.5% range. She noted that the key lever to improve churn is adding new capacity to meet demand. On xScale, she confirmed a strong, albeit back-end loaded, pipeline for H2 2025. CFO Keith Taylor added that 85% of open and announced xScale capacity is already leased or pre-leased, and he detailed the expected quarterly progression of non-recurring revenue, confirming its lumpy nature.

Michael Rollins asked for an update on Equinix's progress in pursuing larger deal sizes and the potential impact this could have on key performance indicators (KPIs).

Answer

CEO and President Adaire Fox-Martin stated that Q1 saw a solid mix of deal profiles, including an increase in volume from smaller retail deals and a continued increase in large-footprint transactions. She noted that power density per cabinet is increasing for both service providers and enterprises, which is a key consideration in the 'Build Bolder' strategy and the evolution of data center design.

Michael Rollins asked for an update on customer segmentation and potential underpenetrated verticals. He also requested a breakdown of the 7-8% constant currency revenue growth guidance for 2025, asking for the contribution from cabinet growth versus pricing/MRR per cabinet expansion.

Answer

CEO Adaire Fox-Martin explained that the initial focus of segmentation was on optimizing account coverage and cost-to-serve, and that the company is now focused on net new logo acquisition, particularly through the channel. CFO Keith Taylor broke down the revenue drivers, stating that Equinix anticipates increased gross bookings from higher density deals, which boosts MRR per cabinet. He expects continued net positive pricing actions and good visibility into cabinet additions throughout 2025.

Michael Rollins inquired about the expectation for inference to scale in 2026, asking for further context on what this will look like for both the industry and Digital Realty.

Answer

President and CEO Andy Power explained that inference is playing out in both hyperscale and enterprise segments, with hyperscalers prioritizing capacity in cloud-zonal markets and designing buildings with mixed air and liquid cooling for combined cloud and AI use cases. He noted that enterprise AI is a long-tail demand, but Digital Realty is seeing more enterprises using AI cases, contributing to strong 0-1 MW and interconnection performance.

Michael Rollins asked for further context on the expectation for AI inference to scale in 2026, and what that might look like for both the industry and Digital Realty.

Answer

President and CEO Andy Power explained that inference is playing out in both hyperscale and enterprise segments, with hyperscalers prioritizing capacity in cloud-zonal markets and designing for mixed air/liquid cooling. He noted that enterprise AI is a long-tail demand, but Digital Realty saw record 0-1 MW and interconnection performance, with increasing enterprise AI use cases.

Michael Rollins from Citi asked for context on why the EMEA and APAC regions appear to be trailing the U.S. in AI adoption and what potential catalysts could accelerate AI-related demand in those international markets.

Answer

CEO Andy Power clarified that while the quarter was strong globally, the largest AI deployments have been U.S.-heavy, which he attributes to U.S. hyperscalers starting in their home market, similar to the initial cloud rollout. He expects AI demand to globalize over time, potentially accelerated by U.S. government actions promoting American AI technology abroad.

Michael Rollins from Citigroup inquired about opportunities to compress development timelines, particularly in power-constrained markets, and whether doing so would drive more sales.

Answer

CEO Andrew Power confirmed that compressing timelines is a key factor in winning deals. He outlined several enablers: a strong balance sheet with ample liquidity, established supply chains, and a highly pre-leased development pipeline in prime markets. He also noted that recently acquired land is competitively advantaged with nearer-term power availability, allowing the company to meet critical customer needs more quickly.

Michael Rollins from Citigroup asked if the strong performance in the sub-1 megawatt business is due to a rising market tide or market share gains, and whether the company's enhanced liquidity is for organic growth or potential M&A.

Answer

CEO Andrew Power stated the company is focused on using its ample liquidity for organic development. On the sub-1 megawatt business, he highlighted broad-based momentum that he expects to continue. CRO Colin McLean added that the performance reflects their full-spectrum strategy, with strong demand from both large enterprises and service providers, and a landmark year for the channel business.

Michael Rollins asked about the risk of record leasing activity pulling forward future demand and inquired about the readiness of the development pipeline, specifically how much capacity is powered and ready to sell.

Answer

President and CEO Andy Power responded that the record quarter was not a massive pull-forward of demand, citing immediately adjacent, similarly-sized capacity blocks in key markets like Manassas and Ashburn. He clarified that while not all of the 3+ gigawatt pipeline is powered today, power deliveries are approaching rapidly, and the company continues to acquire new land to extend its runway.

Michael Rollins from Citi asked for a characterization of the current leasing environment, including any shifts in carrier approaches to densification, co-location, or amendment strategies, especially given new spectrum access. He also sought more detail on what factors would drive organic growth higher than the projected 3.5% low point in future years.

Answer

Chris Hillabrant, President and CEO, described the market dynamics as having headwinds from the cyclical 5G coverage deployment and new MNO CEOs focusing on cost reductions, counterbalanced by tailwinds from new frequency bands becoming available and planned FCC spectrum auctions (800 MHz starting 2027) which will drive higher densification. Sunit Patel, CFO, added that continued mobile data demand growth, recent spectrum acquisitions by MNOs, and visibility into current leasing activity support the expectation that 3.5% will be a low point for organic growth.

Michael Rollins inquired about the current leasing environment, any shifts in carrier approaches to densification, co-location, or amendment strategies, especially with new spectrum access, and what factors will drive organic growth higher than the projected 3.5% low point in the coming years.

Answer

Chris Hillabrant, President and CEO, noted headwinds from the cyclical 5G coverage deployment and new MNO CEO strategies, but highlighted tailwinds from new frequency bands and planned FCC spectrum auctions, which will drive higher densification. Sunit Patel, CFO, reiterated confidence in mobile data demand growth, recent spectrum acquisitions by MNOs, and future FCC auctions, stating that current leasing activity provides visibility for growth beyond the 3.5% low point.

Michael Rollins from Citi asked for an update on the pro-forma Crown Castle post-divestiture, specifically questioning the potential for a "second leg" of efficiencies beyond initial targets and the timeline for achieving these savings.

Answer

Interim President and CEO Daniel Schlanger stated that the company expects to achieve its initial AFFO target of $2.3 billion to $2.4 billion by the time the transaction closes. Regarding a "second leg" of efficiencies from system and process updates, he noted that while this is a focus, the company is not yet in a position to quantify the potential amount or timing of these future improvements.

Michael Rollins asked for details on the current mix of colocation versus amendment activity and the nature of carrier conversations. He also inquired about any creative strategies to mitigate the upcoming Sprint-related churn.

Answer

Interim CEO Daniel Schlanger responded that there has been no significant shift in the mix between colocation and amendments, just a continuation of good activity levels. He noted that increased competitive pressure among carriers is generally positive for tower investment. Regarding Sprint churn, he stated that while the company would explore mutually beneficial solutions, the expected churn level remains within the historical 1-2% annual range and is a manageable outcome.

Michael Rollins inquired about the specific drivers of the 2025 tower leasing activity and the expected free cash flow from the fiber business before the sale closes.

Answer

CEO Steven Moskowitz noted that leasing activity is driven by carriers deploying mid-band spectrum for 5G, with most revenue secured by master lease agreements, supporting the stable outlook. CFO Dan Schlanger projected the fiber business would generate approximately $250 million in positive free cash flow during 2025 while being operated as a discontinued operation.

Michael Rollins asked about the expected initial returns for the remaining greenfield small cells, the marginal returns for colocation nodes, and whether recent customer conversations provided insight into future small cell demand.

Answer

CFO Dan Schlanger stated that remaining greenfield nodes meet the new, higher return threshold (above the previous 6-7% range) and that colocation nodes yield incremental returns around 20%. CEO Steven Moskowitz noted that carriers are currently focused on completing their C-band overlays through 2026-2027, and Crown Castle is positioned to negotiate new agreements in about a year after executing its current backlog.

Michael Rollins asked about the new $2.5 billion PCF deals, specifically how they compare in terms of margins and returns to the initial $1 billion deals, and requested clarification on the timing of CapEx investments and cash receipts given the significant volume of these transactions.

Answer

Chris Stansbury, CFO, explained that the recent PCF deals have a similar economic profile to previous ones as they utilize existing network conduit. He deferred detailed timing of CapEx and cash receipts to the upcoming Investor Day but highlighted a significant reduction in capital intensity, with underlying CapEx outside of pre-funded PCF deals being roughly half of the previous year, which is expected to improve ROIC.

Michael Rollins asked about the $2.5 billion PCF deals, specifically how their margins and returns compare to earlier deals, and requested clarification on the timing of CapEx investments and cash receipts given the scale of these transactions.

Answer

Chris Stansbury, CFO, explained that the recent PCF deals have a similar economic profile to previous ones as they utilize existing network conduit. He noted that the sale of the consumer business reduced capital intensity by almost 25%. For 2026, $1 billion of the projected CapEx is for pre-funded PCF deals, effectively reducing the underlying CapEx outside PCF to about $2 billion, roughly half of the previous year, which drives improved ROIC. More details will be provided at Investor Day.

Michael Rollins asked for clarification on the drivers of the North American Enterprise revenue decline, questioning how much was due to operational progress versus anomalies, and inquired about the future revenue trajectory given tougher public sector comps.

Answer

EVP & CFO Chris Stansbury explained that the strategic 'Grow' bucket's 8.5% growth is a key positive, while the 'Harvest' bucket's strength was a temporary anomaly from public sector work that suppressed the overall decline. He stated that while the business segment could pivot to growth sooner, the total company revenue growth target remains 2029, contingent on resource allocation to growth areas.

Michael Rollins of Citigroup inquired about the drivers behind the 10% year-over-year growth in Lumen's 'Grow' business revenue, seeking a breakdown between new and existing customers, and asked about the status of the previously mentioned legacy TDM revenue churn.

Answer

EVP and CFO Chris Stansbury attributed the 'Grow' revenue strength to underlying demand for non-PCF dark fiber, waves, and IP as businesses prepare for AI. While he could not break down the new versus existing customer contribution, he confirmed the trend is expected to continue. Regarding the legacy disconnects, Stansbury noted some occurred in Q1 with the balance being finalized, emphasizing the actions are at worst EBITDA-neutral and likely margin-accretive.

Michael Rollins asked how the 15% sales growth in Lumen's North American business is translating to progress in the large enterprise and mid-market verticals, and whether recent sequential revenue growth in certain product categories was recurring or one-time in nature.

Answer

CFO Christopher Stansbury explained that the 'Grow' product revenue was positively impacted by the State of California PCF initiative turning up. He emphasized that the 'Grow' product category now constitutes nearly half of sales, reflecting a strategic focus on customer experience and growth products. Stansbury acknowledged that 2024 was challenged by customer disconnects but stated that the company has new initiatives to drive improvements in 2025.

Michael Rollins of Citi asked whether recent hyperscaler customer announcements were part of the new $3 billion in Private Connectivity Fabric (PCF) sales or the prior $5 billion, and inquired about the drivers behind improved business sales and if PCF deals are attracting more business.

Answer

President and CEO Kate Johnson confirmed the four major tech customer stories are part of the total $8.5 billion in PCF sales, without differentiating the tranches. She stated these wins act as a 'magnet' for more business by creating an ecosystem with all three major clouds. Johnson attributed the sales uptick in IP and waves to customers recognizing the need for network expansion for AI-related workloads, noting that 'every AI strategy needs a network strategy.'

Michael Rollins inquired about Charter's pricing strategies, specifically the sustainability of everyday value pricing versus promotional stacks, and the implications of competitors' high mobile penetration targets for Charter.

Answer

President and CEO Chris Winfrey explained that Charter's new pricing and packaging, introduced in September 2024, lowers promotional and retail internet prices while offering price blocks for 2-3 years. This strategy aims to maintain or grow customer relationship ARPU through higher product penetration, offering significant savings with mobile and video bundles. He highlighted Charter's structural advantage in mobile, with 90% of traffic on a faster network and ubiquitous product offerings. CFO Jessica Fischer detailed expected ARPU trends, noting slower internet ARPU growth, mobile ARPU potentially bottoming out, and video ARPU declines due to streaming app allocation and skinnier tiers.

Michael Rollins (Citi Research) asked about Charter Communications' current pricing strategies, specifically their approach to everyday value pricing versus promotional offers, and the sustainability of their long-standing strategy.

Answer

Chris Winfrey, President and CEO, explained that Charter's strategy, introduced in September 2024, involves lower promotional and retail internet prices with 2-3 year price locks, aiming for higher customer relationship ARPU through increased product penetration. Jessica Fischer, CFO, added that they expect internet ARPU to grow slower this year, mobile ARPU to have bottomed out sequentially, and video ARPU to continue declining due to streaming app allocation, bundled revenue allocation, and a mix shift to skinnier tiers, while programming cost per video sub is expected to be up in low single digits.

Michael Rollins of Citigroup asked CEO Dan Schulman about the opportunity for Verizon and the industry to inject more value into services to capture better ARPUs over time, as an alternative to "empty price increases," and when Verizon might pursue this strategy. He also asked CFO Tony Skiadas about identified cost savings beyond 2026, specifically for 2027 and 2028, to support top-line strategy and new capital allocation targets.

Answer

CEO Dan Schulman affirmed the opportunity to add value, linking it to rebuilding brand trust by eliminating customer pain points and fixing the end-to-end experience. He outlined three waves of efficiency: removing underperformance/structural inefficiencies, reducing business complexity, and automating remaining processes, with billions more in savings expected beyond 2026. He emphasized that price increases must be accompanied by value, citing broadband offerings as an example, to ensure long-term sustainable growth rather than short-term gains at the expense of customer satisfaction and churn.

Michael Rollins asked CEO Dan Schulman about the opportunity for Verizon and the industry to inject more value into services to capture better Average Revenue Per User (ARPU) over time, as an alternative to 'empty price increases,' and when Verizon plans to pursue this strategy. He also asked about identified cost savings for 2027 and 2028, beyond the 2026 targets, to support top-line growth and new capital allocation goals.

Answer

CEO Dan Schulman affirmed the opportunity to add value and capture better ARPU, but emphasized that it must be built on brand trust. Verizon's three-year plan focuses on stopping practices customers dislike, fixing the end-to-end experience to regain trust, and then introducing incremental value. He clarified that Verizon will not implement price increases without corresponding value, but sees areas like Gig+ broadband as real value additions that can justify appropriate pricing without risking customer churn. Regarding cost savings, Schulman outlined three waves: first, addressing underperformance, structural inefficiencies, and unnecessary management layers (currently underway); second, reducing complexity in the business and value propositions to lower internal costs; and third, automating processes once complexity is removed. He expressed confidence in these identified waves of efficiency, expecting billions more in savings beyond 2026 into 2027 and 2028.

Michael Rollins from Citigroup asked about the opportunity for Verizon and the industry to inject more value into services to capture better ARPUs over time, as an alternative to 'empty price increases,' and when Verizon might pursue this strategy. He also asked CFO Tony Skiadas to detail identified cost savings beyond 2026, specifically for 2027 and 2028, to support top-line growth and new capital allocation targets.

Answer

CEO Dan Schulman affirmed the opportunity to add value, linking it to rebuilding brand trust by eliminating customer pain points and improving the end-to-end experience. He stated that price increases would only occur with corresponding value, citing broadband Gig+ as an example. For cost savings, CEO Dan Schulman outlined three waves: addressing underperformance/inefficiencies (2026), reducing business complexity, and then automating remaining processes, indicating billions more in savings for 2027 and 2028.

Michael Rollins of Citigroup asked for an update on the uptake and differentiation of Verizon's converged bundles, and for details on the factors that would drive performance to the high or low end of the updated full-year EBITDA guidance.

Answer

Chairman and CEO Hans Vestberg highlighted that Verizon's key differentiator in convergence is its 'owner's economics' in both mobility and broadband, an advantage that will grow with the Frontier acquisition. EVP & CFO Tony Skiadas detailed that the strong EBITDA performance and guidance raise are driven by service revenue growth and significant cost-saving initiatives, including AI in customer care, managed services transformation, and copper decommissioning, while maintaining financial discipline.

Michael Rollins asked for Verizon's view on postpaid phone industry growth, the potential impact from changes in immigration policy, and if further impacts from federal government accounts are expected.

Answer

CEO Hans Vestberg stated that the company has not seen any impact from immigration policy changes and that the federal government impact was isolated to wireless efficiency efforts. Consumer Group CEO Sowmyanarayan Sampath maintained the industry growth forecast of 8-8.5 million postpaid phones, noting that over half is pre-to-post migration, a segment where Verizon does not directly compete, thus limiting any potential impact.

Michael Rollins of Citigroup asked for more context on the Q4 customer upgrade environment and the assumptions for 2025. He also requested details on the drivers for accelerated EBITDA growth and the bridge items between EBITDA and free cash flow for the 2025 guidance.

Answer

CEO Hans Vestberg and Consumer Group CEO Sowmyanarayan Sampath noted that after a long period of decline, upgrade rates saw a modest increase in Q4, with 2024 likely being the trough. They expect mid-single-digit growth in 2025, driven by device aging (over 40 months) and a large cohort of customers coming off 3-year contracts. CFO Tony Skiadas explained that the accelerated EBITDA growth is due to strong service revenue, ongoing cost transformation benefits (including the voluntary separation program), and operating leverage, which more than offset promo amortization headwinds. For free cash flow, he cited EBITDA growth, efficient CapEx, lower interest expense, and working capital focus as key drivers.

Michael Rollins asked for more context on the customer upgrade environment in Q4 and the assumptions behind the 2025 guidance. He also requested details on the drivers for accelerated EBITDA growth and the key bridge items between EBITDA and free cash flow for 2025.

Answer

Consumer Group CEO Sowmyanarayan Sampath noted that 2024 was the low point for upgrades and expects a mid-single-digit increase in 2025, driven by device age and expiring contracts. CFO Tony Skiadas explained that accelerated EBITDA growth is due to strong service revenue, cost initiatives, and operating leverage. The free cash flow bridge includes this EBITDA growth, CapEx, lower interest, and higher cash taxes.

Michael Rollins (Citi) asked about the macro factors influencing AT&T's postpaid phone growth in 2026, including population growth, immigration, demographics, business segments, and prepaid-to-postpaid transfers. He also inquired about AT&T's strategy to sustain financial performance amidst competitor promotional changes and whether the 2-3% wireless service revenue growth guide reflects different price and volume contributions than initially anticipated.

Answer

COO Jeff McElfresh acknowledged the mature wireless market and high switching activity but stated AT&T's plays have delivered customer and margin growth. He highlighted opportunities in under-penetrated segments like value-conscious customers and small/medium businesses, driven by the convergence strategy. McElfresh noted that the Lumen acquisition offers immediate growth opportunities with low penetration rates. He confirmed the competitive intensity is expected to continue, and the current playbook is proven.

Michael Rollins asked about the macro factors influencing AT&T's postpaid phone growth in 2026, including population growth, immigration, demographics, business trends, and prepaid to postpaid transfers. He also inquired about AT&T's response to competitors' promotional changes to sustain financial performance and the contributing factors (price and volume) to the 2-3% wireless service revenue growth guide.

Answer

COO Jeff McElfresh acknowledged the mature wireless industry's high switching activity. He highlighted AT&T's convergence strategy as a driver for growth in under-penetrated segments like 55+ and small/medium businesses, which helps withstand competitive dynamics. McElfresh noted that the Lumen footprint offers immediate growth opportunities. The 2-3% wireless service revenue growth guide incorporates continued competitive intensity and AT&T's proven go-to-market strategy.

Michael Rollins asked for AT&T's updated views on whether LEO satellites pose competitive threats to its mobile and broadband services, and how these constellations might impact the future competitive landscape. He also inquired about AT&T's plans for offering its own direct-to-device satellite services to customers.

Answer

Chairman and CEO John Stankey reiterated his excitement for LEO technology, viewing it as complementary to terrestrial networks and a source of innovation for network resilience. He sees AT&T as a natural integrator of this technology, leveraging its customer relationships and brand. Stankey highlighted AT&T's close relationship with AST SpaceMobile, supporting their direct-to-device approach. He argued that LEO is unlikely to fully replace terrestrial wireless due to the extensive capital, engineering, and physical limitations (e.g., capacity, indoor coverage, latency) required for high-performance, AI-ready networks, especially compared to dense fiber and cell site infrastructure.

Michael Rollins asked if Low Earth Orbit (LEO) satellites pose competitive threats to AT&T's mobile services, particularly with direct-to-device access and technology improvements, and to broadband for home and business. He also requested an update on AT&T's plans to offer its own direct-to-device satellite offering to customers.

Answer

Chairman and CEO John Stankey viewed LEO technology as exciting and complementary, not a complete replacement for terrestrial networks. He sees AT&T as a natural integrator and purveyor of LEO products, highlighting the close relationship with AST SpaceMobile for direct-to-device compatibility. Stankey emphasized the difficulty of LEO replacing dense terrestrial networks for AI demands, low latency, and indoor coverage due to physical limitations and extensive existing capital deployment. He reiterated the importance of fiber for high-performing, scalable, and low-marginal-cost networks.

Michael Rollins from Citigroup Inc. sought clarification on the revised mobility EBITDA growth guidance, asking about potential pressures in the second half of the year. Additionally, he asked for an update on opportunities to expand the fiber footprint through open access programs beyond the newly outlined 60 million location target.

Answer

CFO Pascal Desroches explained the cautious second-half mobility EBITDA outlook is based on planning for a continued active market and a difficult comparison in Q3 due to a one-time benefit in the prior year. CEO John Stankey added that on fiber, the primary focus is executing the current 60M+ location plan, including the Lumen assets. He stated that while they will patiently evaluate opportunities with fragmented overbuilders, the immediate priority is the scaled footprint they control.

Michael Rollins of Citigroup inquired about the penetration and financial prospects for AT&T's fixed wireless service and asked about the opportunities to continue improving ARPU for both postpaid phone and fiber subscribers.

Answer

CEO John Stankey attributed the acceleration in fixed wireless net adds to network modernization opening up new territories and improved operational execution. On ARPU, he stated that AT&T will continue to seek pricing adjustments where value has increased, particularly for its superior fiber product, while remaining mindful of the macroeconomic landscape. He emphasized that the superior fiber product provides a long runway for margin improvement.

Michael Rollins requested more context on the outlook for a 'healthy wireless market' and further normalization of net adds, asking about the expected mix between volume growth and ARPU. He also asked what drove the significant increase in reseller subs and its expected contribution to 2025 service revenue growth.

Answer

CEO John Stankey reiterated that the company expects continued market normalization and will pursue both volume growth and ARPU management by moving customers to higher-value plans and adjusting pricing where needed. He confirmed that a significant contributor to the reseller growth was their role as a provider for DISH's network migration, along with success in other MVNO accounts.

Michael Rollins asked for a preview of potential changes for EchoStar between the current call and the Q4 earnings call, and at what point the company can unplug radios to stop meeting minimum use requirements and save money.

Answer

Charlie Ergen, CEO and Chairman of EchoStar, outlined a pivot towards being a capital-rich, asset-light company and a return to long-term thinking in day-to-day operations. He emphasized a focus on long-term cash generation, increased competitiveness, and leveraging the hybrid MNO model. Regarding unplugging radios, Charlie Ergen stated that discussions with regulators are ongoing and it would be inappropriate to discuss further at this time.

Michael Rollins asked for a preview of potential changes for EchoStar between the current call and the fourth-quarter earnings call, particularly regarding the company's strategic pivot. He also inquired about the timeline for unplugging radios and saving money from minimum use requirements, given the shift away from being a wireless network operator.

Answer

Charlie Ergen, CEO and Chairman of EchoStar, outlined two pivots: becoming a capital-rich, asset-light company and shifting to long-term thinking in day-to-day operations. He suggested a potential short-term step backward for long-term gain, emphasizing competitiveness, focus on long-term cash, and a differentiated hybrid MNO model. Ergen stated that discussions with regulators regarding unplugging radios are ongoing and it would be inappropriate to discuss specifics at this time, but more information would be available early next year.

Michael Rollins asked for details on the drivers of wireless ARPU growth, specifically intake ARPU versus the base, and questioned how the company balances accelerating customer growth with managing the wireless segment's EBITDA burn in 2025.

Answer

President and CEO Hamid Akhavan explained that wireless ARPU is rising as the company attracts higher-quality customers who adopt higher-priced plans. He acknowledged that accelerated customer acquisition would negatively impact near-term OIBDA, but framed it as a positive investment in profitable growth that the company is prepared to make, given its strong capital position.

Michael Rollins asked for the drivers behind the Retail Wireless segment's EBITDA loss, the path to profitability, a breakdown of 5G revenue between spectrum leases and retail operations, and the long-term margin outlook for the business.

Answer

EVP and Principal Financial Officer Paul Orban identified device subsidy costs as the primary driver of the OIBDA loss. He explained that 5G MNO revenue includes intercompany charges for on-net subs, which will grow and replace external MVNO costs over time. Both Orban and President and CEO Hamid Akhavan stated that margins are expected to improve with scale, but deferred providing specific long-term targets as they are currently revising financial models based on recent positive developments.

Michael Rollins from Citibank inquired about the evolution of broadband ARPU, customer migration to new plans, and the impact on retention and revenue. He also asked if the 2.5% convergence revenue growth is expected to improve with new offers.

Answer

Dave Watson, CEO of Comcast, explained that ARPU growth is unlikely in early 2026 due to aggressive customer migration to new pricing, all-in packages, and free mobile lines, noting no broadband rate increase is planned for early next year. Jason Armstrong, CFO of Comcast, added that while current strategies create ARPU pressure and are an investment year for wireless, they position the company for future growth with a stable broadband base and monetized free wireless lines. Mike Cavanagh, President of Comcast, highlighted increasing fiber pricing and data usage as positive long-term backdrops for broadband revenue growth.

Michael Rollins asked about the evolution of broadband ARPU, customer migration to new plans, and the opportunities for better retention versus the cost on the revenue side. He also inquired about the anticipated improvement in convergence revenue growth with new offers and promotions.

Answer

Dave Watson (CEO, Comcast) explained that ARPU growth is unlikely in early 2026 due to aggressive customer migration to new pricing, including free mobile lines, and the decision not to take a broadband rate increase. Jason Armstrong (CFO, Comcast) added that while these strategies create near-term ARPU pressure, they position the company for future growth as free lines convert to paying relationships. Mike Cavanagh (President, Comcast) noted the positive backdrop of increasing fiber pricing and continued data usage for long-term broadband revenue growth.

Michael Rollins asked about the early results from Comcast's new broadband go-to-market strategy and how the competitive landscape affects the potential pace of improvement.

Answer

David Watson, CEO of Connectivity & Platforms, noted the competitive landscape remains intense but highlighted encouraging early results, such as half of eligible new customers choosing the five-year price guarantee. President Michael Cavanagh added that the strategic goal is to build a loyal, lower-churn customer base prepared for a long-term competitive environment with multiple providers.

Michael Rollins inquired about the early results of Comcast's new broadband go-to-market strategy, the current competitive landscape, and the anticipated timeline for improving quarterly broadband performance.

Answer

David Watson, CEO of Connectivity & Platforms, described the competitive environment as intense but noted encouraging early signs from the new strategy, such as strong uptake of the five-year price guarantee and premium speed tiers. President Michael Cavanagh emphasized the company's urgency and strategic goal to build a more loyal, lower-churn customer base that is well-positioned for long-term, multi-provider competition.

Michael Rollins asked for clarification on broadband customer losses, questioning the split between slowing industry growth and market share shifts, and inquired about a potential mix shift in mobile gross additions between new and existing broadband customers.

Answer

David Watson, President and CEO of Comcast Cable, attributed the competitive intensity to fixed wireless and ongoing fiber overbuilds, noting a slight uptick in churn driven by mobile substitution. He stated the churn increase was broad-based across segments. For mobile, he highlighted the significant opportunity in upgrading the existing broadband base, which is a key focus, while also competing for new customers with attractive 'bring your own device' and new premium plan offerings.

Michael Rollins of Citigroup Inc. requested more detail on the drivers behind the improved constant currency organic growth in the 2025 guidance. He also asked about the factors that established 3x net debt to EBITDA as the appropriate leverage target.

Answer

EVP & CFO Steve Howden attributed the improved organic growth outlook to stronger leasing activity in Nigeria and Brazil, coupled with recurring cost-saving initiatives boosting EBITDA. He explained that the 3x leverage target is considered a comfortable, risk-adjusted level for the markets IHS operates in, balancing capital efficiency with financial stability.

Michael Rollins inquired about the organic growth profile of the divested Rwanda assets compared to the remaining portfolio, the company's long-term financial growth algorithm, and the potential timing and form of future capital returns to shareholders.

Answer

CFO Steve Howden described the Rwanda business as having a ~2.05x lease-up rate with double-digit growth potential, similar to other SSA markets excluding South Africa. He outlined the company's growth algorithm: grow revenue at double digits organically, with EBITDA growing faster than revenue, and ALFCF growing faster than EBITDA. Regarding capital returns, he emphasized that debt paydown remains the immediate priority, with discussions on buybacks or dividends likely toward the end of 2025 or early 2026.

Michael Rollins of Citigroup Inc. requested details on constant currency growth drivers by region, the composition of the 2025 organic growth guidance, the breakdown of the 2025 CapEx forecast, and the outlook for future portfolio churn.

Answer

CFO Steve Howden outlined the drivers for 2025 organic growth, highlighting an expected increase in colocations, and clarified that approximately one-third of the 2025 CapEx guidance is for maintenance. Regarding churn, he noted the previously disclosed MTN Nigeria impact but otherwise described leasing trends as positive. CEO Sam Darwish reinforced this by stating major contracts are renewed into the 2030s, ensuring strong revenue visibility.

Michael Rollins of Citigroup asked about IHS's long-term asset mix strategy, questioning how potential asset sales align with the original goal of diversifying away from Africa, and what the Board is hearing from investors about other potential strategic actions.

Answer

CFO Steve Howden acknowledged the long-term goal to reduce Nigeria's portfolio contribution to below 50%, though M&A is currently on hold. He emphasized the immediate priority is shareholder value creation. CEO Sam Darwish added that while diversification is key, Nigeria's high organic growth is a significant factor in the ongoing strategic review.

Michael Rollins of Citi requested perspective on the multi-year growth and margin progression for the newly defined Kinetic, Fiber Infrastructure, and Uniti Solutions segments. He also followed up with a question about the drivers behind the strong ARPU trajectory in the Kinetic Fiber business.

Answer

Senior EVP & CFO Paul Bullington projected mid-single-digit growth for Fiber Infrastructure and a turn towards growth for Kinetic. Drew Smith, CFO & Treasurer of Windstream, noted that Uniti Solutions revenue is declining in the mid-teens but is expected to stabilize by 2028. On ARPU, President & CEO Kenny Gunderman confirmed the strength, attributing it to market pricing power and significant opportunities to upsell customers to higher speeds, with only 20-25% of the base currently on max speeds.

Michael Rollins of Citigroup inquired about the key drivers behind the sustained momentum in 5G broadband (FWA) and whether the service could evolve from a 'fallow capacity' model to one requiring dedicated investment.

Answer

CEO Mike Sievert identified word-of-mouth, driven by high customer satisfaction and strong performance, as the primary growth driver. COO Srini Gopalan affirmed that the 'fallow capacity' model remains the core strategy, as they continuously find new efficiencies. While the current 12 million subscriber target is based on this model, Sievert confirmed they are exploring both enhancing fallow capacity utilization and the potential for smart, dedicated capital investments for future growth.

Michael Rollins of Citi inquired about the key drivers behind the sustained momentum in 5G broadband (FWA) and whether there is evidence of the strategy shifting from a 'fallow capacity' model to one involving dedicated capacity investments.

Answer

President & CEO Mike Sievert credited the momentum primarily to strong word-of-mouth driven by high customer satisfaction, with users enjoying average speeds of 200-250 Mbps. COO Srini Gopalan affirmed that the 'fallow capacity' model remains the core strategy, as network innovations continuously unlock more capacity. Sievert confirmed the 12 million FWA subscriber target is based on this model, but said teams are actively exploring both enhancing fallow capacity and making smart, dedicated capital investments for growth.

Michael Rollins asked for a preview of the long-term strategic questions CEO Mike Sievert aims to address over the next year. He also inquired about the success of fixed wireless access (FWA) within the business and SMB segments and its potential as a future growth opportunity.

Answer

CEO G. Sievert explained his strategic focus is on 'Horizon 3' opportunities, leveraging T-Mobile's assets to create new value streams around AI, 5G Advanced, and new business models. President of T-Mobile Business Group Callie Field added that FWA is a significant and growing opportunity in the business sector for primary and secondary connectivity, serving as an entry point for selling a broader portfolio of modern solutions to enterprises and SMBs.

Michael Rollins from Citi requested an update on T-Mobile's progress in smaller markets (SMRA) and the business segment, and asked for an explanation of the better-than-expected postpaid phone ARPU growth.

Answer

Executive Jon Freier reported record win share in SMRA, driven by top-ranked Net Promoter Scores. Executive Callie Field highlighted record enterprise activations and wins with customers like American Airlines and Lowe's. CFO Peter Osvaldik noted ARPU strength but pivoted to ARPA, which saw a guidance increase to 3% year-over-year growth, as the key metric reflecting deeper customer relationships.

Michael Rollins inquired about the competitive landscape for Optimum's broadband business, specifically the impacts from fiber and fixed wireless access (FWA), and whether customer behavior is shifting towards value-oriented products. He also asked if broadband losses could decrease on a year-over-year basis in the coming quarters.

Answer

Executive Dennis Mathew acknowledged the intense competitive environment from both telco fiber and FWA. He noted that macroeconomic pressures are driving customers toward value, prompting the launch of a new income-constrained product and a hyper-local playbook. Mathew highlighted that churn is at a three-year low and that the company is competing more effectively in markets with mature fiber overbuilders, which supports the potential for improved subscriber trends.

Michael Rollins inquired about the broadband performance differences between the East and West regions, the potential for under-penetration in the West, and the current competitive landscape.

Answer

CEO Dennis Mathew explained that the West faces increased fiber overbuild (now at 45%) and more fixed wireless competition. He highlighted that performance in the East is improving due to better churn management and go-to-market strategies. Mathew noted that hyperlocal pricing tests in the West have yielded a 20% improvement in sales and installs, demonstrating a new, surgical approach to winning back market share lost under previous one-size-fits-all strategies. He expressed confidence in their product suite, including multi-gig speeds and mobile bundles, to compete effectively.

Michael Rollins inquired about the factors contributing to the flattening of copper business revenue and how the company's operational success is influencing its ongoing strategic review.

Answer

CFO Scott Beasley explained that copper ARPU has been supported by passing on inflationary cost increases and discontinuing the lowest-priced copper internet plans. CEO Nick Jeffery stated that the company's strong performance in penetration, revenue, and EBITDA growth provides increasing strategic optionality. He confirmed the review is intensively considering all options, including partnerships, JVs, and M&A, noting that Frontier's position as the largest pure-play fiber provider is a scarce and valuable asset in a converging market.

Michael Rollins inquired about the timeline for the ongoing strategic review and its potential impact on the investor day. He also asked about the competitive landscape and whether base fiber penetration could surpass the 45% target.

Answer

President and CEO Nick Jeffery stated the strategic review is intensive and ongoing, covering options from operational optimization to M&A. He confirmed the investor update is delayed from Q2 to incorporate potential insights from the review. Jeffery also noted that reaching 45% penetration in mature base markets, despite full competition, underscores the product's superiority and suggests further growth is possible.

Inquired about the factors driving Liberty Broadband's NAV discount, the board's strategy to shrink it, and the potential synergies in a theoretical combination with Charter.

Answer

The executive attributed the NAV discount to market factors like fewer arbitrage funds and higher borrowing costs. The strategy is to use share repurchases in the interim, with the ultimate resolution being a combination with the operating company. Such a transaction would create synergies by eliminating Liberty's corporate overhead and leveraging Charter's scale for GCI's operations.

Michael Rollins asked about the factors driving Liberty Broadband's net asset value (NAV) discount and the board's strategy for closing it. He also followed up on the potential synergies that could be realized in a theoretical combination of Liberty Broadband and Charter.

Answer

Gregory Maffei, President and CEO, attributed the NAV discount to market factors like fewer arbitrage funds and higher borrowing costs. He stated the primary interim tool is share repurchases, while the ultimate solution is typically a spin-off and combination with the operating company. He confirmed a combination would yield synergies, including eliminating corporate overhead and creating purchasing efficiencies for GCI through Charter.