Mike Rollins

Confirmed colocation mix is already rising and said the company is agnostic between comprehensive and pay-by-the-drink agreements.

Smith gave specific mechanics and ownership percentages, and said no material difference to attributable AFFO per share is expected.

Rod walked through the math: ~6% ex-DISH, ~4% ex-FX, ~5% ex-interest headwind, at lower end of mid- to upper single-digit long-term AFFO per share growth target.

Steve emphasized discipline: willing counterparty, constructive regulatory environment, and economics must all align. No strategic imperative to overpay given existing scale.

Rod declined to separate organic vs initiative-driven margin expansion. 2026 tower cash margins expected flat despite absorbing ~60bps DISH churn pressure. Steve added it's a stretch target representing improvement over baseline operating leverage. AI could provide incremental upside beyond the 200-300bp target.

Steve confirmed the 200-300bps target covers the four named initiatives (land, supply chain, standard of care, technology). AI upside not yet quantified and could accelerate targets further. Margin expansion to be measured on tower side specifically, not including data center and services dilution.

Steve declined to specify EchoStar's growth contribution. On long-term US guide: robust pipeline from three major carriers, spot on for first several years since 2021. USM and DISH exits were not in original viewshed; will be factored into 2026 guidance in February. Medium-to-long-term mid-single-digit US organic growth unchanged.

Steve said nothing in recent events changes the long-term growth algorithm. Mobile data growth drives tower demand. AI could be additional tailwind not yet in assumptions. Mid-single-digit organic growth in developed markets, slightly higher in emerging markets. More specific 2026 color in February.

Steve emphasized the pipeline remains healthy, volume and pricing consistent, just slower book-to-bill conversion from one non-MLA customer. Difference is only a few million dollars within the year. Rod quantified: new biz target adjusted from $165M to ~$160M, OTBG revised to 'approximately 4.3%' from '≥4.3%'.

Steve said COO Bud evaluating total addressable spend: direct expenses, O&M, SG&A, growth CapEx, supply chain. Goal is continuously increasing gross margin in tower business, bending cost curve so expenses grow slower than revenue. Committed to sharing targets by year-end. Rod added full-year SG&A expected roughly flat excluding bad debt.

Steve noted limited tower overlap in most US markets making colocation the most cost-effective option. Rural coverage expansion sees more new builds. Preferred partner status and customer service help win share at RF design phase. Densification infill may have less flexibility due to geographic constraints.

Rod cited potential services revenue drift lower in Q3/Q4 due to reduced visibility, cash tax timing differences, and maintenance CapEx variability as factors that could moderate from Q1 run rate. Prudent to hold outlook given proximity to original guide and macro backdrop.

Steve confirmed the 2023-2027 average ~5% US OTBG guide remains intact. Rod added that 2025 US OTBG of ~4.3% includes ~2pp churn with roughly half from Sprint (non-recurring next year), making 2025 the inflection point.

Steve explained OTBG stepping down modestly due to contracted use fee cadence and commencement timing on non-contracted leasing, not demand softening. Robust pipeline across all three national carriers with mix shifting toward colocations.

Attributed lower churn to better base data, cohort treatments, convergence, and suppressed device switching; expected rising device costs to suppress demand; deferred capital-allocation decisions to the board's September meeting while signaling a bias to buy back an undervalued stock.

Stankey described two dimensions: open RAN for wireless supply chain cost management, and core network reengineering to offer software-based API control. Drew analogy to hyperscaler compute/storage provisioning model.

Stankey explained growth is driven by new converged customers (new fiber + new wireless) with below-average line sizes that will grow over time. Also cited Internet Air helping win multi-location business bids.

McElfresh acknowledged the mature, penetrated wireless market with switching activity between competitors. AT&T sees incremental opportunity in underpenetrated segments including value-conscious 55+ and small-medium businesses, driven by convergence.

McElfresh said the convergence strategy is pulling existing wireless accounts plus establishing new accounts in growth segments. The Lumen footprint with 25% fiber penetration and ~20% wireless attach creates immediate expansion opportunity.

Stankey viewed LEO as complementary technology where AT&T is a natural integrator, noting physical limitations of spot beams vs terrestrial cell sites with 300+ MHz of spectrum.

Stankey said some open access opportunities exist but stressed focus on executing the 60M+ organic/Lumen/GigaPower plan, noting stressed overbuilders may present patient acquisition opportunities.

Desroches flagged Q3 2024 had a $90M noncash benefit creating a tough comp, and AT&T is planning for continued competitive activity in H2.

Stankey said AT&T will continue finding ARPU opportunities where utility has improved, while being sensitive to macro conditions. Fiber margins will keep improving.

Stankey explained network modernization opens new fixed wireless geographies with better-than-expected yields, and the team is climbing the learning curve on targeting the right use cases.

Stankey attributed resale growth primarily to DISH migration decisions plus success in other MVNO accounts generating volume.

Stankey acknowledged moderation but declined to break out the volume vs ARPU split, saying AT&T will do both as it manages the subscription business.

Management said there is no straight-line link between services and leasing, kept the leasing guide unchanged, and noted contracted organic growth rose from 80% to 90%.

CFO said only real difference would be leverage levels and cash distribution, not operations. CEO agreed from experience leading private European tower company. On repricing, CFO said multiple levers exist including escalators, space pricing, and market-specific rates.

CEO cited headwinds (5G coverage cycle maturing, new carrier CEOs focused on cost) vs tailwinds (spectrum auctions, higher-band frequencies driving densification). CFO said current leasing activity plus demand drivers support 3.5% as low point.

CEO confirmed EchoStar agreement runs through February 1936 and expects full payment on contractual terms.

CEO said focus is on maximizing existing portfolio revenue and profitability, with fiber sale as #1 priority, while accelerating efficiency activities already showing in results.

CEO confirmed first-leg AFFO target of $2.3-2.4B at close is achievable, but second-leg efficiency gains from systems/process upgrades cannot yet be quantified or timed.

CEO open to negotiating Sprint churn cleanup but noted total churn including Sprint remains in normal 1-2% historical range, so living with it is not a bad outcome.

CEO said no shift in colo/amendment mix, just continued good activity. Carrier competitive pressure increasing, which is historically good for tower companies.

CEO noted sequential increase in applications driven by mid-band C-band spectrum deployments and 5G overlays, but not enough to change 4.5% growth outlook.

CFO confirmed fiber segment expected to generate approximately $250 million positive free cash flow in 2025, similar to 2024.

Management framed portfolio optimization as ongoing and reiterated the stock looks undervalued.

Moderate Q1 backlog increase, not extreme outlier. Applications replenishing faster than being consumed. Suggests steady US leasing activity for remainder of 2026.

SBA focused on clearly communicating asset quality, growth prospects, and cash flow consistency. Cannot speak to how external parties value the company outside public shareholder base.

2026 likely the organic growth bottom. T-Mobile cycling down while Verizon ramping up. AT&T MLA front-end loaded structure normalizing in couple of years. Remaining churn: Sprint less than $20M over next couple years, USM over 5 years, Oi wireline pulled into 2026 and done.

Regulatory market share scrutiny a factor but not a major hurdle. Millicom delays occurred even in markets where SBA had no presence, suggesting efficiency issues in some jurisdictions.

Long-term nature of Verizon agreement gives confidence in sustained mid-single-digit organic growth. Expectation is smooth implementation over course of agreement, though Verizon could accelerate.

Normalized AFFO per share growth target is mid to high single digits, but interest rate headwind on refinancing $12.5B debt (avg 3.7%) is the biggest issue. Next three maturities have one-handle coupons. Several years from reaching normalized growth rate.

Brazil will see slower growth for next few years due to Oi/Nextel consolidation rationalization. Central America largely through churn. Straight-line revenue reversal is natural portfolio maturation.

Cavanagh expects leverage to remain 6.0-6.5x, comfortable levering up for meaningful investments. Year-end target below 6.5x including Millicom deal funding.

Cavanagh explained most decommissioning fees have already been incurred as equipment was removed ahead of the lease churn dates. Remaining fees will not be material to results.

Skiadas itemized the drivers: volume growth, easing promo amortization, perks up like 40%, prepaid revenue growth and lapping second-half 2025 pricing.

Schulman introduced AI Connect publicly for the first time, confirmed both dark and lit fiber, and said margins are equal to or greater than existing structures.

Schulman explained account-centric approach is driving improvements. New accounts have more lines, higher new-to-Verizon mix. ARPA decline in Q1 largely from network outage credits. Expects account net adds and ARPA to improve through 2026 and 2027.

Schulman identified three waves of efficiency as Verizon's multiyear cost transformation roadmap. Wave 1 (2026, described on today's call): take out pockets of underperformance, structural inefficiencies, unnecessary management layering, and resources on deprioritized areas. Wave 2: eliminate complexity by simplifying the end-to-end customer experience and value proposition, complexity adds significant internal cost. Wave 3: automate the processes that remain after complexity reduction. On values-based pricing, Schulman said he believes there is opportunity to add more value and capture better ARPUs over time, but it requires first rebuilding brand trust by 'stop doing things customers hate,' fixing the end-to-end experience, and then layering in incremental value such as broadband gig-plus offerings. He committed that Verizon will not take price increases without corresponding value, and characterized this transformation as setting up long-term sustainable growth rather than capturing short-term value at the expense of customer loyalty. Verizon has a 3-year plan with 12-month concrete metrics and a 3-year vision. Schulman said Verizon is 'just at the beginning of our efficiency journey' and sees billions more in savings beyond the 2026 $5 billion target as it looks into 2027 and 2028.

Schulman described himself as 'a very big believer in convergence' and said combining mobility with fiber delivers mobility churn nearly 40% below traditional mobility, the single largest near-term growth opportunity. Post-Frontier the combined footprint will reach ~29 million fiber passings and Verizon's wireless share significantly under-indexes in Frontier's territory, creating cross-sell runway. He committed to continued investment in fiber, FWA, and broadband footprint expansion through build, M&A, and partnerships like Tillman. On portfolio optimization, he said Verizon is focusing on broadband, mobility, and also AI infrastructure (which he called 'booming'), but that parts of the business are 'costing us billions of dollars of margin' and will be aggressively sunset or exited. Specifics will be laid out in January.

Hans said Verizon's convergence differentiator is its combined mobility plus fiber base, which will expand materially with the Frontier close. He emphasized high mobility attach on the Fios base and even bigger convergence opportunity inside the Frontier footprint post-close. On EBITDA, Hans said you see the cost takeout, growth, and operating leverage falling straight to the bottom line with continued focus on the three KPIs: wireless service revenue, EBITDA, cash flow. Tony added that Q2 EBITDA was up over $500 million, about $1 billion year to date, despite elevated upgrade activity. H1 wireless service revenue is up 2.4% and cost takeout is accelerating across AI customer care, HCL managed services, copper decommissioning, wireline deal discipline, and the fully completed voluntary separation program.

Hans said Verizon has no impact from immigration policy changes and the Q1 federal government pressure was limited to wireless reductions from new administration efficiency work. All other business segments, large enterprise, SMB, remained strong and continued to take share. Sampath reiterated the 8-8.5 million postpaid phone industry growth estimate for 2025, with more than 50% being prepaid-to-postpaid migration where Verizon plays only through partners not direct retail. Immigration could affect lower-end prepaid where Verizon has low participation; despite lower immigration in recent quarters Verizon is actually seeing its best prepaid performance in a long time by winning at the higher end of prepaid.

Hans framed upgrades as stabilizing after multi-quarter decline, consumer devices now live well past 40 months. Sampath confirmed Q4 upgrade rate rose 10bps year-on-year and said 2024 was the bottom; 2025 plan assumes mid-single-digit growth driven by 40+ month device age and a large cohort coming off three-year DPP contracts. Tony walked through the 2025 EBITDA acceleration of ~$1.3B at the midpoint, powered by strong service revenue growth, healthy customer economics ex-promo amortization, continued cost transformation (customer care AI, managed services legacy takeout), and full-year VSP benefit. On cash flow, Tony confirmed $17.5-18.5B free cash flow guidance with drivers similar to 2024, ongoing working capital focus beyond handsets, improving interest expense after paying down ~$7B of debt, and higher cash taxes from bonus depreciation that Verizon will manage within the guide.

Steve highlighted 30% of line adds from existing customers, TMO MVNO launch for enterprise, premium plan adoption at 30%, and new Mobile+ with device protection as industry-first differentiator.

Steve said year-over-year voluntary churn improvement, strong five-year price guarantee adoption, and continued gig-plus mix shift. On wireless, highlighted 65M passings, $200B TAM, 15% penetrated with long runway. About 50% of H2 residential postpaid connects were free lines creating monetization opportunity.

Jason framed the transition: near-term ARPU pressure and free wireless lines dilute convergence, but free-to-paid conversion in second half of 2026 becomes a tailwind.

Dave said ARPU growth unlikely in early 2026 with no broadband rate increase planned. Active migration of base to lower EDPs with free mobile. Confident ARPU growth returns post-transition.

Dave confirmed competitive environment remains intense with fixed wireless and fiber. Early go-to-market results encouraging with 5-year guarantee and gig-plus speed uptake.

Dave confirmed focus on upgrading existing broadband base into wireless while also competing aggressively for new customers with BYOD and new packages.

Dave identified mobile substitution as the incremental competitive pressure beyond the existing fiber and fixed wireless dynamics.