Capital Allocation
Q: How will extra cash be used?
A: Management raised full year free cash flow guidance partly due to $1.5B–$2.0B tax benefits, and they plan to use the cash for disciplined investments—buybacks, fiber expansion, and debt reduction—with a holistic view on capital allocation.

Margin Growth
Q: What’s driving margin improvement?
A: They are enhancing margins by cutting costs through AI initiatives and reducing headcount by 3.7%, leading to sustainable earnings improvements in business segments.

EBITDA & Convergence
Q: How is EBITDA performing?
A: EBITDA increased by over $500M in the quarter and nearly $1B year-to-date, driven by disciplined convergence across mobility and broadband along with robust cost savings.

Broadband Trends
Q: What’s the outlook for broadband adds?
A: Management expects broadband performance to pick up in the second half due to efficient fixed wireless access and near completion of 80–90% C-band deployment, with MDU solutions scaling in 2026.

Fixed Wireless Pace
Q: How’s fixed wireless deployment proceeding?
A: The C-band build-out is on schedule, maintaining a steady pace that underpins fixed wireless access opportunities without extra investment, as planned.

Wireless Net Adds
Q: Are net add levels sustainable?
A: Strong sales execution and the best value guarantee led to a record +19% gross add growth, though management remains focused on profitable, not just volume, growth.

Consumer ARPA & Upgrades
Q: Why are ARPA and upgrades slowing?
A: ARPA growth is moderating due to a broader mix of adjacent services, and while promotions boosted upgrades temporarily, they are expected to stabilize at mid single digits year-over-year.

Frontier Acquisition
Q: When will the Frontier deal close?
A: The pending acquisition remains on track for Q1 2026 with no changes to the original timeline.

Spectrum Strategy
Q: What is the plan for spectrum purchases?
A: They remain confident in their current spectrum portfolio and will only pursue additional spectrum if its benefits outweigh building on existing assets.

Acquisition Cost
Q: How are acquisition costs trending?
A: While specific numbers weren’t shared, management is dynamically balancing retention and acquisition spend to optimize customer lifetime value.

Cost Efficiency & Churn
Q: What’s behind current churn and cost savings?
A: Ongoing AI-driven customer care enhancements and operational efficiency—highlighted by a 3.7% reduction in headcount—are key to managing churn and reducing costs.

Go-to-Market Strategy
Q: Is the value proposition shifting?
A: They are further refining a segmented growth approach across 8–9 brands, using targeted promotions for different economic segments while staying financially disciplined.

BEAD Opportunities
Q: How will BEAD program changes affect growth?
A: Revised BEAD rules now offer new opportunities for incremental network investments with government support, aligning with previous opportunities in network expansion.