Hello, and thank you for standing by. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the TDS and U.S. Cellular Fourth Quarter 2022 Operating Results Conference Call. All lines have been placed on mute to prevent any background noise [Operator Instructions]. I would now like to turn the conference over to Colleen Thompson, Vice President, Corporate Relations. Please go ahead.

Good morning, and thank you for joining us. We want to make you all aware of the presentation we have prepared to accompany our comments this morning, which you can find on the Investor Relations sections of the TDS and U.S. Cellular Web sites. With me today and offering prepared comments are from TDS, Vicki Villacrez, Executive Vice President and Chief Financial Officer; from U.S. Cellular, LT Therivel, President and Chief Executive Officer; Doug Chambers, Executive Vice President, Chief Financial Officer and Treasurer; and from TDS Telecom, Michelle Brukwicki, Senior Vice President of Finance and Chief Financial Officer. This call is being simultaneously webcast on the TDS and U.S. Cellular Investor Relations Web sites. Please see the Web sites for slides referred to on this call, including non-GAAP reconciliations. We provide guidance for both adjusted operating income before depreciation and amortization or OIBDA and adjusted earnings before interest, taxes, depreciation and amortization or EBITDA, to highlight the contributions of U.S. Cellular's wireless partnerships. TDS and U.S. Cellular filed our SEC Forms 8-K, including the press releases and our 10-Ks yesterday. As shown on Slide 2, the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the safe harbor paragraphs in our press releases and the extended version included in our SEC filings. In terms of our upcoming IR schedule on Slide 3, in early March, we will be attending the Raymond James Institutional Investors Conference in Orlando and the Morgan Stanley TMT Conference in San Francisco, and then we will also be attending the New Street's second annual Fiber to the Future Conference on March 28th. And as always, we have an open door or video call policy, so please reach out if you're interested in speaking with us. I will now turn the call over to Vicki Villacrez. Vicki?

Okay. Thank you, Colleen, and good morning, everyone. This year end call is important as it gives us the opportunity to reflect upon our accomplishments over the past year, recognizing all the actions that both business units have taken to strengthen their competitive positions and plans to support our long term strategic objective of higher returns. I'll remind you that our mission at TDS is to provide outstanding communication services to all our customers and to meet the needs of our shareholders, our people and our communities. We continued to make substantial investments in our businesses in 2022, pressuring free cash flow. However, we made substantial progress towards our net worth goals as both business units will talk to. And while investing still remains a high priority, we will moderate our CapEx spend in 2023 across the enterprise. Turning to Slide 4. Our balance sheet remains healthy at year end with approximately $1.5 billion in available sources of liquidity, including cash, term loans, revolvers and asset securitization facility, and we have long dated maturities and preferred equity, extending any sizable maturities to very far in the future. We believe that we have the right mix of both long term maturities and shorter term financings to help fund our investments while appropriately managing through the current interest rate environment. Both business units are continuing their rigorous multiyear cost discipline programs taking place throughout their organization, focusing on both OpEx and CapEx, which should contribute favorably to cash flow going forward. I also want to highlight that during the quarter, Slide 5, we once again repurchased a modest amount of stock in both companies and for the full year 2022, we repurchased $40 million of stock at TDS and $14 million at U.S. Cellular. Importantly, we remain committed to our dividend and we raised it once again for the 49th consecutive year. This stretch of 49 years puts us with an elite group of companies that have this many consecutive years of dividend increases for their shareholders. And now I'll turn the call over to LT.

Thanks, Vicki. Good morning, everybody. Hope everyone is doing well. Just a quick add. We repurchased $43 million worth of stock at U.S. Cellular. I think Vicki's number got cut off, at least I heard 14, it's 43, just for everybody to note. Okay. I'm on Slide 7, a fair amount to be proud of in 2022, I don't think it's a surprise. Last year was a challenging year, both from a subscriber standpoint and with an aggressive competitive environment and shifts in the macro economy. Based on that competitive pressure, we did a lot of testing and innovation on a number of different promotional approaches. And our goal and we've talked about this in the past has always been to balance subscriber goals with financial goals. So midyear, we pivoted to providing much more aggressive offers for existing customers, and the goal there was to drive higher upgrade rates. And we launched flat rate pricing in a subset of markets in the second quarter and the third quarter, and we expanded that offering across the entire footprint in November. And those moves drove steady quarter-over-quarter subscriber improvements. And back to that concept to balance our postpaid ARPU growth was one of the best in the industry, and that was really a highlight for us in the year. We're seeing good initial adoption of those flat rate plans. On average, nearly a quarter of our customers that are choosing flat rate are choosing higher tier unlimited plans. And customers on flat rate pay full price for their device nothing to exchange for that reduced pricing, and that helps lower our promotional expenses and mitigates the financial impact of this lower planned pricing. Both flat rate pricing along with our new and existing offers has led to a meaningful improvement in…

Thanks, LT. Good morning. Let's start with a review of the customer results on Slide 9. Postpaid handset gross additions decreased year-over-year by $20,000 and net additions correspondingly declined $18,000 largely due to the continued highly competitive environment, a decrease in the switcher pool and an increase in involuntary churn. Connected device gross additions increased by 9,000 and net additions increased by 13,000, driven by fixed wireless customer growth. As LT mentioned, we continue to see momentum in fixed wireless with our base of customers up 57% from the end of 2021 and 17% from the third quarter of 2022. Postpaid handset churn increased from the prior year, driven by higher involuntary churn and throughout 2022, the frequency of non-pay customers increased to pre-pandemic norms. This was offset by a decrease in voluntary churn, partially driven by the growth in the percentage of in-contract customers. Now let's turn to the financial results, starting on Slide 11. Total operating revenues for the fourth quarter decreased 2% from the prior year. Retail service revenues were relatively flat as higher average revenue per user was offset by a decrease in average postpaid connections. Inbound roaming revenue declined 54% due primarily to lower negotiated rates with other carriers, which also has the impact of decreasing our roaming expense. Overall, roaming expense declined at higher amounts than roaming revenue in the fourth quarter and the full year 2022. Equipment sales revenues decreased by 4% due primarily to a decline in the average revenue per unit as a result of our promotional offers. Our postpaid ARPU and ARPA results are presented on Slide 12. LT mentioned the strong increase in ARPU and this increase, along with the increase in ARPA was driven primarily by favorable plan and product offering mix, an increase in cost recovery surcharges…

Thanks, Doug. Good morning, everyone. I'm pleased to report on TDS Telecom's fourth quarter and full year results, and I'm also proud to highlight the progress we made in 2022 towards reaching our longer term 2026 goals that we shared with you last year. At TDS Telecom, we are grounded in our mission, and that mission is to create a better world by providing high quality communication services, connecting people and businesses, supporting education and strengthening communities. Our goal is to be the preferred broadband provider in the markets we serve. On Slide 18, you can see our strategic areas of focus that will help us achieve this goal. Investments in these strategic priorities will drive profitability and improved returns over time, ultimately strengthening TDS Telecom's financial and market position. So what exactly are we doing? We're growing our scale and revenue primarily through our fiber market expansion, and we're continuously streamlining and automating our operations to reduce legacy costs. We keep this customer at the center of everything we do, continuously investing in customer experience improvements. And finally, the foundation of our entire business is our highly engaged, resilient and dedicated workforce. We invest in our people to ensure we can attract and retain top talent. So moving to Slide 19. Let me update you on our progress towards achieving our longer term goals, and I'll tell you the headline is we are on track. There are certain metrics we're monitoring to ensure we're moving at a pace to reach our 2026 targets. I'll highlight those three metrics for you now. The first metric is number of service addresses. We are targeting 1.2 million marketable fiber service addresses by 2026. We ended 2022 with 582,000, so we are halfway there. The second metric is the percent of service addresses…

Okay. Operator, we are ready for the first question.

Our first question will come from the line of Rick Prentiss with Raymond James.

A couple of questions, if I could. First, for U.S. Cellular. LT, you laid out with kind of the '23 guidance. If we think back to '22 guidance, you did pivot midyear and you've addressed kind of the more competitive marketplace, the aggressive promotions. It sounds like the '23 guidance assumes that competitive pressure continues as opposed to maybe a pivot that might be needed in the middle of the year? Just trying to compare how we started '22 guidance with how we're starting '23 guidance.

Rick, I'd say that the way you've characterized it is accurate. We take the trends and essentially the moves that we made in the market in the second half of ‘22, meaning a more aggressive approach to upgrade, pulsed in and out. You may notice we only did it here about a week or two ago, we actually pulled our existing famous new promotions and we've replaced them with no hidden requirements to offer that's specifically designed to appeal to kind of multiline customers. At the same time, we also have our flat rate pricing in place, which we think is highly competitive in the marketplace. So with those moves -- those kinds of moves in response to the competitive environment, you can expect to see in 2023. And we've seen the benefit of it, right? If you look quarter-over-quarter, we've seen continued positive movement in our net add performance. And so in general, yes, I think you can probably expect think of 2023 in a similar fashion to second half, both in terms of our view on the competitive environment as well as the moves that we're doing to compete well in it.

There's been a lot of debate about the industry level of adds coming back down to a more normalized level versus what maybe happened? What's your view of the industry level on the wireless adds area?

Let me hit it to, Doug. I think you've got a sense of this. Go ahead, Doug.

Yes, Rick, we're projecting about 1.5% for an industry increase during 2023. So above the population growth below where it's been, so kind of in between those two data points.

And we're sitting here in February, you've instituted the -- getting more people under contract. How is that playing out? Sometimes, I think you've said in the past maybe six to nine months, that should hopefully benefit into churn. Are we seeing that, have you got enough data points to get comfortable? And does that mean as we think about Q3 ending, we're not going to have negative postpaid phone adds or we won’t as negative? Just trying to think through the churn action with the contract and how you set up with the postpaid phone for the year?

So Rick, I mean, we've stayed away from kind of projecting specific net add performance or when we're positive or when we're not. In general, what I'll tell you is that the moves that we've made to get people more under contract, get more upgrades. We're starting to see some positive signs on the consumer side when it comes to improved churn. We offset that a little bit in the fourth quarter with some higher B2B churn, and you don't really see that in the numbers. In general, we expect to see that churn continue to improve throughout the year because of getting more customers under contract, couple that with what we believe will be improved gross add performance due in no small part to flat rate. And we do expect to see that general momentum year-over-year of improved net adds continue. I mean, important to highlight, we showed a pretty dramatic improvement every quarter when it comes to net adds quarter-over-quarter. Q1 is always a tricky quarter relative to Q4. So I don't necessarily expect that you can just draw a straight line. But in general, I think the moves that we have in the marketplace are resonating and I expect them to continue to drive positive performance.

Last one from me. Vicki, I appreciate the comments about CapEx moderating to the market like sharing that from the standpoint of free cash flow monitoring and in this interest rate environment. But circling back to CapEx, what it means to wireless. LT, do customers understand what 5G means, what 5G gives them? And if not, what will it take to help customers understand what 5G means?

An interesting question. I mean I think that there's a couple of different ways you could think about answering that. You've got, on one hand, when you look at how the industry has talked about 5G, I sometimes wonder if customers are a little numb to all the various competing messages in the marketplace. They hear best this and fast is that and brought at this. And I do wonder sometimes how it's resonating with customers. We're pleased, I will tell you with the rate of our 5G build out and what we've been able to deliver in terms of capabilities to customers. And so we talked earlier about the specific metrics and over 50% of our sites modernized, carrying over 80% of our traffic. We do see our customers give us feedback that where we modernize the network, not only are the network performance metrics better but the perception is meaningfully better, right? And so that would be the flip side to the coin of our customers getting numb to it. I think that customers are numb to claims. I don't think they're numb to the performance that we're bringing. And so we see it in the performance and we see it in the perception scores, that's an important distinction, right? Because, I mean, I'm chuckling, Mike Irizarry is sitting here next to me, right? Engineers will always say, well, the numbers are a lot better. And then you'll say, okay, but do customers care. The perception where we modernize our network says that, yes, customers care. That the speed performance that we're able to deliver is meaningfully better. We're in the early stages of our 5G SA launch. And so I think as we roll out SA, customers will start to see meaningfully improved experience. And we also talk about mid band. So as we roll out mid band, that will result in a meaningfully better experience. So now I'll just kind of loop back to how you led off the question, which was around capital. And what we're doing is we're balancing the feedback that we're getting back from customers in terms of what is meaningful for them with a prudent and targeted approach to where we spend capital. And so we feel very good about how we're managing the balance of spending the money where we need to and getting the customer feedback and the customer metrics in a place that we're pleased. So hopefully, that gives you a sense of how we’re tackling it.

Your next question comes from the line of Simon Flannery with Morgan Stanley.

If I can start, LT, with fixed wireless, good to hear the momentum is going well. You've obviously got the C-band coming on later this year. So what's your latest thought on where you want to deploy this product? Is it still going to be kind of an ex-urban rural kind of a product or do you think we might see a broader footprint? We've seen quite a lot of suburban success with T-Mobile and Verizon, a lot of B2B interest as well. And then both for you and on the wireline side, just latest thoughts on the BEAT program. Do you think that's something that you have a lot of interest in participating in either on the wireless or wireline side?

Let's start with fixed wireless. So our approach really is -- I mean, I suppose from a deployment perspective, it's a little bit different. It's almost the inverse of what T-Mobile is doing, but I actually don't think we view the market that differently. And so let me just explain where we've seen huge success in this product is in rural and then, let's call it, the bridge between rural and suburban. And recall that right now what we're deploying is really, it's basically a low band product. We have a couple of mid-band -- a couple of millimeter wave trials. But the vast majority of our sales of this product thus far have been on low band. And we feel proud of the experience that we're delivering, but that is not a particularly high speed experience. To me, it speaks to the opportunity that's in front of us, because when we do put -- when we do start launching this on mid band, we'll be able to deliver a product tentatively, we're looking at 300 megs down. And when you deliver that, that opens up, I think, a whole new market opportunity for us. And so if I think about 2023, still, we see a lot of growth potential ahead just on low band. That product will be rural, call it suburban. We see a lot of opportunity when there's a cable monopoly. This product works very well against cable. As we launch mid band starting in 2023, we'll then, I think, be able to move from suburban to more closer to urban areas, because we'll have a highly competitive product. The one place, and I've been consistent about this. The one place I don't see this humping is where there's robust fiber to the home. We'll still obviously…

So Simon, generally from the TDS Telecom perspective, we agree with everything that LT said, but we do have a little bit of a unique perspective from the wireline side. So for us, there's actually two federal programs that are in front of us. The first one is the A-CAM program. We already participate in that. We're already almost halfway through that program. And the SEC is considering a proposal to take the addresses that are under that program. And they require higher speeds be provided to those addresses in exchange for more years of revenue support on the back end of that program. From our perspective, that would be a great development that would help us get those faster speeds. They're talking the same speed as the BEAD program, a 100 down 20 up. That would be a great opportunity to get those speeds faster to the customers that are already part of that A-CAM program. And that program is already established, it's already running. And that's something that we could pivot into very, very quickly. So that's one track for us that we see as a great opportunity. But then the BEAD program is also another opportunity for us. And we do believe that there are going to be other areas that we can take fiber under the BEAD program, and we would be excited to participate in that program. We agree with what LT said that it's probably going to take until 2024 until money and funds start flowing under that program. We've got to get through the mapping challenge first this year. And our companies are working hard with the FCC on that. But yes, the combination of A-CAM and BEAD, we really think those are going to be two important opportunities to continuing to get higher, faster, better broadband, likely all through fiber out to the most rural areas of our serving territories. But there are going to be places where it, like LT said, probably doesn't make sense to take fiber all the way out. And if there are opportunities for us to work with U.S. Cellular and partner in order to best serve those customers, we're certainly already talking about that as well, and we'll pursue that as an opportunity.

And you talked about accelerating the fiber build this year. I think Lumen had talked about a higher cost to pass going up to about $1,200. Have you got any color on what's kind of developing there? There's concerns about inflation, labor supply or that stuff, any color there would be great?

Yes. So we are planning to keep scaling up and keep delivering more addresses in 2023. We're shooting for 175,000 service addresses under the program this year compared to the $133,000 that we delivered in 2022. Each year, we keep developing a nice increase in address delivery. So yes, we are going to keep accelerating that program on our path to our $1.2 million by 2026. In terms of the actual cost of the build, that's already all factored into our business cases. Over the last year, 18 months, we did start to see some of our contract RFP proposals come in with slightly higher costs. But we were really diligent in working with those vendors and trying to find opportunities where we can reduce some build costs in those markets. And so when you factor everything into the business case, that's why you'll hear me talk a lot about does the business case still hang together, can we still achieve the low to mid double digit returns that we're looking for. Even with all of those cost factors adjusted in that we've all seen over the last 12 to 18 months, we're still getting those really attractive returns out of those business cases. And all of that is already factored into our guidance and our CapEx expectations.

Your next question comes from the line of Phil Cusick with JPMorgan.

It's Jerome on for Phil. Congrats on the quarter. I was hoping to drill down into the solid low single digit to mid single digit ARPU growth we've seen on the postpaid business. Kind of what's driving your ability to grow ARPU despite the heavy promotional environment and pausing price hikes, et cetera? And then as we look at 2023, how should investors think about ARPU growth moving forward?

So with respect to ARPU growth, one thing that drove it during the year was moving customers up the stack. We started the year with 32% of our handsets on our top two tier plans ended the year with 41% on top two tier plans. A lot of that was driven by strong efforts by our sales team, but also promotional requirements that we had tied to our new and existing offers. So that was really a tailwind for ARPU. We're doing much better in device protection revenue, the profitability of that product. We've been migrating customers to a new provider where we earn a better margin as well as we slightly increased the penetration of that project. We also had some cost recoveries surcharges that went in at the beginning of 2022 that helped as well. So all that led to the 4% increase. I would say, looking to 2023, building an ARPU is still a goal, that growth rate is not likely to sustain at that level. One of the reasons is flat rate pricing. Obviously, we have a lower rate flat rate pricing. But in exchange for that, we don't support that with the same level of promotion. So there is an offset there from a profitability standpoint. But just looking at ARPU, flat rate pricing alone is a bit dilutive. But we're still focused on moving customers up the stack. Like I said, 41%. We have a long runway to go to sell our higher value plans to our customers, and are optimistic about that. So that's sort of an overview of how we think about 2023.

Your next question comes from the line of Michael Rollins with Citi.

Just two questions, if I could. One is -- so looking at Slide 16 and just taking a step back, the service revenue guidance is for a slight decline. Can you unpack that a bit more in terms of the impact of roaming relative to what's happening in terms of the core business and the up-tiering opportunities, the competitive landscape? And then as you think about service revenues over time, is there a conviction that U.S. Cellular can positively grow these wireless service revenues on a one to three year time frame? And I'll follow up with one other if I could.

So the service revenue guidance, yes, you hit on it. Roaming revenue has been declining. It will continue to decline that's impacting service revenue. But it's important to remember the reason for that is that we're driving rates down. And there's an offsetting impact on roaming expense whereby roaming expenses going down. So from a profitability standpoint, it's actually slightly accretive this year and we project as well into 2023 when you go down to the operating cash flow line. So that's actually a positive. But on the revenue line alone, there is a decrease there. The other thing with service revenue, we lost connections during 2022. There's obviously a carryover impact of that into 2023 that's factored into the guidance. We're certainly offsetting that with some increased B&G revenue, particularly in IoT wholesale as well as some tower revenue and some other areas. But all that factored in as where we ended up on service revenues. And over time, absolutely, our goal is to grow service revenue. And that's a key priority and starts with growing our base of connections and that's a key motivator for implementing flat rate pricing and having a really compelling one in two line and up all the way to three, four line price point for our customers and to grow that base and yield service revenue growth over time.

And then just looking at the investment opportunities that you've been describing in fiber and wireless. What are your latest thoughts on the opportunity to monetize the tower business, or your wireless investments in whatever term would be in the debt interest with the operating strategy and for shareholders?

So Mike, I mean it's something we can't consistently evaluate, right? We want to make sure that the assets that we have and the capabilities that we have can generate more value to us moving forward and put together than they can in isolation and sold. And we continue to believe that, that is the case. And I'll use the towers as a good example. Our tower portfolio drove double digit revenue percentage growth year-over-year. We expect to see continued revenue growth in that portfolio. I mentioned earlier the co-location rates, just over 1.5 versus industry average 2.3. We've got a lot of growth on the tower side. And interestingly enough, and this is de minimis right now from a revenue perspective, but it gives you a sense about the opportunity here. And the last quarter was the first time we actually sold not just access to the tower but also access to the shelter. And we're discussing generator access, we're discussing backhaul access. Those are things that we can market to a potential tenant that our tower competitors cannot. And the reason they can't is because they don't operate a wireless network in conjunction with a tower portfolio. So having the assets together benefits the tower business and drives more growth in the tower business. Similarly, right, if I fast forward and take a look at the build on 5G and even getting to 6G, we talked about being in a good place with our network build and being able to be a little bit more conservative with capital in the next year. But in the long run, as you move 5G to 6G, what is 6G going to be? Obviously, the standards are still being worked out, but you're talking at a high level, denser networks and more intelligence at the edge. And if you have denser networks and more intelligence at the edge, it means you're going to need to be touching your towers a lot more. And the fact that I don't have to beg permission and by the way, pay out the notes to a tower landlord makes Mike's network costs lower. And so we continue to evaluate it. It's a question we ask ourselves every quarter. We want to make sure we're comfortable with the answer. But we remain comfortable in the answer that those assets are better together and drive more growth together and that is revenue growth with cash flow growth as well.

Your next question will come from the line of Sergey Dluzhevskiy with GAMCO Investors.

My first question is for LT on the fixed wireless side, as C-band spectrum becomes available and you start deployment. How do you plan to prioritize the fixed wireless build in terms of geographies or types of markets? And also, how are you thinking about the capacity needs for fixed wireless business versus capacity needs of your core mobile business to make sure that you have sufficient capacity, and the core mobile business doesn't suffer?

The beautiful thing about that fixed wireless business is that with the exception of a few very, very targeted builds here and there is that, that business builds on the investments that we make to support our core mobility business. And so although we have a few targeted builds where we kind of have to -- where we look to increase capacity to support the needs of our fixed wireless customers, that's very much on the margin. The bulk of that business is driven by the underlying investments made to support our mobility business. And what that means is that the revenues that, that fixed wireless business generates have really attractive margins and those attractive margins turn into attractive cash flows. Thus far, we have not seen meaningful capacity challenges driven by fixed wireless. We've been able to architect the network. Mike and team have done some really creative things to make sure that we're in a good place from a capacity perspective. And you mentioned the C-band deployment and the 3.45 deployment also, which will happen kind of throughout 2023. That will add more capacity and it will enable us to serve and support those customers more effectively. So we don't see meaningful capacity challenges arising from this business. The build of the business will continue to be driven and the prioritization of the business will continue to be driven by the core mobility business. And that's why we continue to be really bullish about the economics. I referenced this when I talked about BEAD. I mean if you were building a -- if you're going to go build a tower in rural America, and you were only going to subsidize that if you're only going to pay for that tower with fixed wireless customers, you need in the range of 200 to 250 customers within a 7-kilometer range of that tower, that's pretty dense for rural America. And so it's difficult to make the economics standalone on fixed wireless. But the beautiful part is we don't have to. We have a core mobility business that subsidizes it. And so that capacity and the capacity demand for that business worked out pretty nicely, and we expect that to continue since we also have the mid band spectrum coming online.

My second question is for Doug. You mentioned continued cost optimization efforts. And obviously, U.S. Cellular’s margins continue to be under pressure for various reasons, part of it is competitive intensity in the market, part of it is your counter moves. All of that is putting pressure on margins. But what are some of the cost efficiency initiatives that you have in place for 2023 and beyond that you think could provide meaningful offset to some of those pressures? What are some of the larger buckets of cost savings that you see over the next few years?

Yes, it's really across the business, Sergey. So every single area we're seeing and we have a significant amount of savings built into our budget. But examples are, we've been driving backhaul where way down, sell side rents, we have a program to drive those down. We saved quite a bit of money with our marketing media agencies over the past years, and we'll continue that going forward. With respect to network maintenance and network software, we've done quite a bit with respect to renegotiating contracts with our vendors on those. So if you look at the big buckets of spend, and that's where we're placing the main focus. But it's really across the business that we're driving savings and we've been doing it in a -- through a formalized program since 2017, and we haven't bought up.

And my last question is both for LT and Michelle. So I believe earlier this year at the investor conference, management mentioned that in 2023, U.S. Cellular and TDS Telecom will step up their collaboration efforts, including an MVNO relationship, you're selling each other's products, potentially applying for big funding or just broadly government funding together. Could you provide more color on these initiatives as far as what you have already been doing kind of in 2023? And what forms of collaboration or partnership do you see as the greatest value creating opportunity for both companies over medium term?

Michelle, do you want to tackle that one?

Yes, I can start and LT, you can certainly feel free to jump in. So yes, thanks, Sergey. Yes, we did mention a couple -- a few weeks ago, I guess, it was some collaboration efforts that we're doing together. On the MVNO front, TDS Telecom is working our way through all of the details of how we can get an MVNO product launch, so that we can get wireless into our bundle of services that we offer to our customers. We hope to get that product launched sometime during 2023 hopefully by midyear. And certainly, we would want to partner with U.S. Cellular under where our territories overlap. However, our territories don't overlap perfectly. About 40% of our addresses can be covered by the U.S. cellular wireless network. So we will have to also supplement and partner with other wireless carriers as well. So we are in the process of working through that. We also mentioned earlier at one of the conferences, and we're still working on the ability to do some cross selling. So selling TDS Telecom broadband through U.S. Cellular retail stores in certain geographies, we're working through the details of that as well and seeing if that could be an uplift opportunity for both companies. And so we'll probably start that in a small way and test that out, do some learnings and then see if that could be expanded into anything bigger. And as I mentioned earlier, on the BEAD program, we don't have all of the state program details yet. Those are still coming. But once we get those, we'll be a little bit more, I guess, firm in our discussions with each other. But we've already started high level discussions about how can we partner in some of those most rural areas in order to reach customers in the most economical way possible through a combination of fiber and fixed wireless. So I think those are the primary things that we're doing and talking about together this year. But LT, is there anything else that you'd like to add?

No, I think you nailed it, Michelle. MVNO, co-selling and BEAD are the three big opportunities. So I think you covered it. Thanks, everybody. It was a good chatting with you. Colleen?

Okay, that was our last question. Thanks again, everyone, for your time today. Again, please reach out to IR if you have any additional questions. Have a good weekend.

Ladies and gentlemen, that will conclude today's call. Thank you all for joining.