Mike Funk

Management declined to estimate CCI's escrow recovery, noting the number of claimants is unknown but Crown Castle is among the largest contributors and claimants.

CEO confirmed ongoing commercial conversations with AT&T and all customers, eager for DISH spectrum to be put to work, but nothing specific to share.

CEO said no widespread impact from carrier self-deployment. Post-pandemic tower build costs have risen significantly, making economics challenging for spot small cells. Carriers are actually asking CCI about new macro tower builds.

CEO confirmed lawsuit filed, industry lobbying through WIA, and multiple other enforcement activities. Court process could take a year or longer; limited short-term updates expected.

CFO said execution risk on post-close AFFO guidance is being reduced each quarter, with biggest benefit coming at simplification to one business. Systems and automation being phased in over next several years.

CEO said no material changes in carrier activity or densification plans, with leasing continuing strong.

CEO said buyback execution will depend on market conditions at close. Framework includes debt reduction, dividend at 75-80% AFFO, and share repurchases from remaining proceeds and ongoing free cash flow.

CFO said overlap is primarily on corporate side (IT, accounting, business support), not maintenance or operations, with simplification from three businesses to one being the main efficiency driver.

Steve confirmed near-record services year (best since early 2000s when AMT owned construction firms). Larger construction management component this year. Healthy pipeline building for 2026. On AT&T spectrum acquisition: carriers typically want to deploy acquired spectrum but deferred 2026 specifics to February guidance.

Steve noted EU 2030 mid-band coverage targets provide significant runway. Some market consolidation with modest AMT exposure. Germany spectrum extensions unlocking investment. Rod added: ~3.5% organic new business, ~2.5% CPI escalators, churn below 100bps for key customer, mid-single-digit OTBG very reliable and durable.

Steve said no pervasive trend, each site has its own story. Carrier mid-band deployment: one at ~85%, one ~70%, one ~50%. Relatively small slowdown in conversion rate, not a major catalyst. No comparison to prior G cycles; just a slow start to the year.

Steve said US demand unaffected, tariff risk is future-looking with equipment already in warehouses. Emerging markets more susceptible to global macro shocks. Rod highlighted FX as key uncertainty: spot rates imply $120M revenue upside and $0.10+ AFFO per share vs outlook, but too early to count on. Refinancing risk largely mitigated with floating rate debt in low single digits.

Steve confirmed services growth is broad-based across colocations and amendments, not dependent on a single carrier RAN upgrade. Construction services component is regional for one carrier but represents a steady cadence regardless of that carrier's specific activity levels.

CEO laid out internal and external evidence including enterprise IT budgets, OEM backlogs and data center silicon trends; CFO added the bottom up planning approach.

Adaire cited interconnection density, cloud on-ramps, and metro location as pricing accelerators. Noted auto-renew contracts with price increments and ATR program enabling upsell at renewal.

Keith confirmed lower borrowing costs than Analyst Day assumptions and increasing interest capitalization ($14M Q2 → $27M Q3 → $20-30M Q4). Adaire highlighted connectivity as secret sauce with fabric at 110 terabits provisioned.

Keith explained the 3% stabilized growth reflects high starting price points, emerging market competition, and impact of moving DC2 out of stabilized into expansion pool.

Adaire detailed enterprise AI adoption with flexible data strategy, privacy-first approach, low-latency networks for inference, and growing demand for AI factories and distributed inferencing.

Scott said 10 launches are booked with two providers at a cadence of every month or two, not betting on Blue Origin for the initial 45 satellites.

Andy reaffirmed the $21-$23M per-satellite range including launch and direct labor, holding over the life of the constellation with room to fall over time.

Abel explained edge compute and AI spectrum management features arriving in year-end production batches to dynamically allocate power and spectrum.

Scott reaffirmed the prepayment/commitment strategy is unchanged but declined to detail whether contracts are for capacity or subscribers.

Confirmed 10-15% share estimate remains reasonable. Emphasized churn improvement will reduce the marketing dollars needed to drive net adds, making growth more capital efficient.

Schulman said at least half of net adds will come from churn improvements, reducing spend needed. Consumer churn improved from 95 bps in Q4 to 90 bps in Q1 to 85 bps by end of March. Has substantial war chest to defend base if competitive intensity increases.

Schulman said Verizon has a 'pretty good idea' of what's driving churn and how to address each driver, needing to hit them one by one. Evidence of improvement should start appearing this quarter though a full turnaround will take time. The company will become 'much scrappier.' On AI, Schulman said he spent significant time with AI CEOs before joining Verizon and holds a very strong perspective. He called AI 'the only technology I've seen in my lifetime where it does a step function improvement every 2 to 3 months,' expects 300-600% model capability improvement over the next year, and sees AI as both efficiency tool and value proposition enhancer, enabling proactive churn prediction, customized micro-segment offers, and upgrade anticipation. He called AI infrastructure 'today, a very large opportunity' for not just Verizon but American industry, signaling continued AI Connect investment with details in January.

Hans declined to give specific subscriber acquisition cost numbers, saying it wouldn't be appropriate. He characterized the spend as a total envelope for customer investment including acquisition, retention, and media that is managed dynamically across Sampath, himself, and Tony on a weekly basis to optimize return on investment and customer lifetime value. He emphasized the allocation approach has improved dramatically over the years from an overall budget to dynamic management, but discipline is maintained so Verizon does not overshoot on any category. No specific retention-versus-acquisition split or H2 model was provided.

Power confirmed pushing escalators to minimum 3%, as high as 4%+ or CPI-linked; Mercier noted 0-1MW contracts are shorter-term rolling at inflation/CPI naturally.

Power noted expiring rates decline through 2029, getting as low as ~$124/kw, while new signings are at healthier market rates in tight supply-demand markets.

Mercier explained H1 outperformance included ~100bps from shell/PBB space renewals not expected to repeat in H2, though 0-1MW and >1MW spreads remain strong.