Core Viewpoint - Kyivstar is undertaking a large-scale network modernization project aimed at enhancing service quality, expanding 4G capacity, and preparing for 5G rollout throughout 2025-2026 [1][2]. Group 1: Network Modernization - The modernization project includes replacing outdated equipment, updating radio modules, and implementing technical measures to improve infrastructure and customer experience [1][3]. - The focus is on telecom sites with the highest traffic, which will lead to increased network capacity and faster data transmission speeds [3][4]. - Initial results show an average increase of about 30% in data transfer speed and roughly 50% in network capacity at upgraded sites [4]. Group 2: Service Quality and Recognition - The modernization efforts are expected to deliver substantially higher service quality and unlock new opportunities for customers [2]. - Kyivstar has been recognized as Ukraine's Best Mobile Network by Ookla, receiving awards for Best Mobile Coverage, Fastest Mobile Network, and Best Mobile Network based on H2 2024 and H1 2025 results [6]. Group 3: Investment and Future Plans - Kyivstar Group, in collaboration with VEON, has committed to investing USD 1 billion in Ukraine from 2023 to 2027, focusing on infrastructure, technology development, and strategic acquisitions [8][9]. - The company serves approximately 22.4 million mobile subscribers and over 1.1 million fixed-line internet customers as of June 30, 2025 [9].

Company Overview - BCE Inc. is Canada's leading integrated telecommunications and media provider, operating primarily through Bell Canada and Bell Media [2][3] - The company offers a diverse range of services including wireless networks, broadband internet, television, and content distribution, serving both consumer and enterprise markets [2][4] Market Positioning - BCE leverages its extensive last-mile copper and fibre assets, along with ongoing upgrades to fibre-to-the-premises (FTTP) and 5G wireless, to enhance its market positioning [5][25] - The company captures approximately 30% of the national wireless subscriber market, placing it among the "Big Three" wireless carriers in Canada [37][40] Financial Performance - BCE's market capitalization is approximately CA$31.6 billion, with annual revenues ranging from CA$23 to CA$24 billion [10][11] - The company generates steady cash flows driven by recurring subscription revenues, with a dividend yield around 5.5% to 5.8% [14][41] Revenue Streams - BCE's revenue is derived from multiple lines including consumer wireless subscriptions, broadband and video packages, enterprise connectivity, and media advertising [11][18] - The integration of network and content allows for cross-selling opportunities, enhancing average revenue per user (ARPU) [5][48] Strategic Assets - Bell Media's content rights and distribution capabilities are key strategic assets, allowing BCE to bundle exclusive content with connectivity services [21][48] - The company's operational strength lies in combining network ownership with content distribution, which helps defend ARPU and reduce churn [25][48] Leadership and Governance - BCE's leadership is focused on aligning long-term capital expenditure with evolving content strategies and regulatory compliance [34][32] - The executive team, led by CEO Mirko Bibic, oversees both telecom and media franchises, ensuring integrated decision-making [32][42] Industry Dynamics - BCE operates in a highly regulated sector, with spectrum licensing and cultural content obligations influencing its strategies [7][24] - The competitive landscape includes challenges from digital-first players and global streaming services, necessitating optimization of content spend and local programming [23][24]

Core Points - Kinetic has received preliminary approval for federal grants under the Broadband Equity Access and Deployment (BEAD) program, which will provide multi-gigabit fiber connections to approximately 52,000 rural homes and businesses across four states, with nearly 50,000 in Georgia [1][2] - The total amount of the grants is $156.6 million, pending final approval by the National Telecommunications and Information Administration [2][7] - Kinetic's expansion efforts are supported by public-private partnerships, which have been crucial for extending fiber services to economically challenging areas [2][4] Company Expansion Plans - Kinetic currently offers gigabit and multi-gigabit broadband services to over 370,000 homes and businesses in Georgia, with about 20% of these locations benefiting from public-private partnerships [3] - The company is executing a multi-year, multi-billion-dollar network modernization project aimed at expanding fiber broadband service throughout its 18-state footprint, with fiber now passing over 1.7 million homes and serving an additional 2.1 million locations [4][5] - Kinetic aims to extend fiber to over 3.5 million homes by 2029, which will cover approximately 75% of its operational footprint [6] Financial and Operational Context - The BEAD awards for Georgia include $147.3 million for 49,346 locations, $5 million for 1,395 locations in Arkansas, $2 million for 280 locations in New Mexico, and $2.3 million for 943 locations in North Carolina [7] - The merger between Windstream and Uniti Group, Inc. has positioned Kinetic to accelerate its fiber broadband build plans across all 18 states [5]

Financial Data and Key Metrics Changes - Revenue reached an all-time high of $221 million in Q2 2025, representing a 15% increase year over year and exceeding guidance [15][23] - Adjusted EBITDA increased by 47% year over year to $32 million, aligning with the high end of guidance [17][23] - Non-GAAP gross margin was 52.1%, slightly below guidance due to a higher mix of hardware and professional services [16][23] Business Line Data and Key Metrics Changes - Cloud and Edge business revenue grew by 24% year over year to $137 million, with adjusted EBITDA for the segment increasing by 43% [18][19] - IP Optical Networks revenue was $84 million, a 2% increase year over year, with adjusted EBITDA showing a loss of $5 million [19][20] - Sales to service providers increased by 18% year over year, while enterprise revenue rose by 7% year over year [8][19] Market Data and Key Metrics Changes - Strong demand in North America, particularly from service providers and enterprise markets, including U.S. federal agencies [6][7] - IP Optical sales in North America grew over 45% year over year, driven by critical infrastructure projects [13] - Sales in Asia Pacific, particularly India, saw over 40% growth year over year, supported by major operators investing in network modernization [12][13] Company Strategy and Development Direction - The company is in a multi-year investment period to modernize communication networks across service providers and enterprise verticals [24][25] - Focus on leveraging the entire voice and IP networking portfolio to differentiate offerings against larger competitors [24][25] - Continued innovation in cloud-native voice and edge routing solutions to capture market share [6][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a robust demand picture for the second half of the year, projecting revenue growth of 15% to 20% compared to the first half [23][30] - Anticipated strong performance in Q4, similar to previous years, due to timing of enterprise deals and service provider projects [23][30] - Potential pressure on operating expenses and gross margins due to a weakening U.S. dollar [25][26] Other Important Information - The company announced a new stock repurchase program to buy back up to $50 million of common stock [22] - Cash from operations was a usage of $1 million, with a closing cash balance of $62 million [20] - The company expects a cash tax saving of approximately $15 million to $20 million for 2025 due to recent tax legislation [21] Q&A Session Summary Question: Clarification on gross margins being below expectations - Management explained that the lower gross margins were primarily due to a shift towards more hardware in the cloud and edge segment and increased professional services [34][35] Question: Insights on revenue guidance for Q3 - Management indicated that while Q3 revenue is expected to be flat sequentially, it will still show year-over-year growth [36][38] Question: Outlook on the separation of cloud and edge businesses - Management expressed confidence in the synergy between the two business segments, highlighting successful integration in projects with Verizon [39][40] Question: Commentary on classified replacement opportunities - Management noted a correlation between fiber upgrades and modernization of voice services, emphasizing cost savings from parallel upgrades [46][47] Question: CapEx spending environment - Management acknowledged a positive outlook for CapEx due to recent tax legislation allowing for immediate expensing of R&D investments [49][50] Question: FX impact on operations - Management confirmed that the weakening U.S. dollar had a minor impact in Q2 but could pose a headwind of approximately $2 million per quarter moving forward [60][61] Question: Details on Verizon's contribution to revenue - Management confirmed that Verizon accounted for over 20% of total sales in Q2, with expectations for continued strong performance [70][71] Question: Deferred revenue trends - Management explained that the increase in deferred revenue is indicative of future revenue growth, particularly from maintenance contracts [92][94] Question: Gross margin expectations for Q3 - Management projected an increase in gross margin for Q3 due to a favorable mix of software over hardware [62][63]

Financial Data and Key Metrics Changes - Total revenues and adjusted EBITDA each grew by 3.5% year over year during Q2 2025 [15] - Adjusted EPS was $0.54, up approximately 6% from $0.51 the prior year [15] - Free cash flow for Q2 was $4.4 billion, an increase from $4.0 billion the previous year [15] - Capital investment was $5.1 billion, showing modest year-over-year growth [15] Business Line Data and Key Metrics Changes - Mobility service revenue grew by 3.5%, with EBITDA growth of 3.2% year over year [18] - The company added 401,000 postpaid phone customers in Q2, exceeding expectations [18] - Consumer Wireline revenue grew by 5.8%, driven by approximately 19% growth in fiber revenue [22] - Fiber customer additions were 243,000 in Q2, with a convergence rate of 40.9% for fiber and 5G services [23] Market Data and Key Metrics Changes - The company reported a significant increase in Internet Air net additions, exceeding 200,000 for the first time [24] - The mobility subscriber growth is increasingly driven by customers taking both wireless and broadband services [19] - The company expects to reach approximately 50 million customer locations by 2030, doubling its fiber reach [10] Company Strategy and Development Direction - The company aims to become the best connectivity provider in America, focusing on customer-first strategies and advanced technologies [3][4] - Plans to accelerate fiber deployment to 4 million new locations per year by the end of 2026 [10] - The company is transitioning away from legacy copper infrastructure, targeting to discontinue service across the majority of its copper footprint by 2029 [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing strong customer demand and improved operating efficiencies [12][14] - The company anticipates a competitive environment in the second half of the year but remains optimistic about its performance [20] - Management highlighted favorable policy tailwinds for investment, comparing the current environment to the Telecommunications Act of 1996 [11][90] Other Important Information - The company plans to contribute $1.5 billion to its pension plan by the end of next year, enhancing the plan's funded status [12] - The company expects to realize $6.5 billion to $8 billion in cash tax savings from 2025 to 2027 due to recent tax legislation [32] - The company intends to accelerate share repurchases, expecting to buy back $4 billion of stock by year-end [34] Q&A Session Questions and Answers Question: Wireless churn and cost savings from decommissioning wire centers - Management acknowledged the 17 basis point increase in phone churn and noted that they expect a competitive environment in the second half of the year [38][39] - They highlighted ongoing cost savings from legacy transformation and expect to continue driving costs down as more wirelines come offline [41][42] Question: Impact of churn on pricing strategy and spectrum acquisition budget - Management stated that pricing is not the primary issue affecting churn and emphasized their strategy of tying prices to value [48] - They confirmed that they are constantly evaluating spectrum options and have the flexibility to make strategic acquisitions if opportunities arise [51][54] Question: Fiber build returns and mobility customer quality - Management expressed confidence in the profitability of their fiber builds and noted that the returns from new customers are improving due to converged services [60][62] - They emphasized that they are focused on acquiring high-value customers and improving lifetime values [63][66] Question: Mobility margins and macroeconomic impacts - Management indicated that while growth-related spending may be lumpy, they expect operating leverage to remain strong and margins to perform well [88] - They highlighted favorable investment policies and incentives that support organic growth in the telecom sector [90]

Financial Data and Key Metrics Changes - In Q1 2025, Ribbon generated revenues of $181 million, an increase of 1% year over year [19] - Non-GAAP gross margin for Q1 was 48.6%, lower than expected due to higher sales in India and increased hardware shipments [19] - Adjusted EBITDA for Q1 was $6 million, a decrease of $6 million year over year, primarily due to tighter margins across segments [20] - Non-GAAP net loss for Q1 was $5 million compared to a $1 million loss in the prior year, resulting in a non-GAAP diluted loss per share of $0.03 [21] Business Line Data and Key Metrics Changes - Cloud and Edge segment revenues in Q1 were $108 million, a 6% year-over-year increase, with product and professional services revenue increasing 17% [22] - IP Optical segment revenues in Q1 were $74 million, a 6% decrease year over year; excluding Eastern Europe, sales were up 25% [23] - Cloud and Edge non-GAAP gross margins were 62.5%, down 350 basis points from the prior year due to a higher mix of professional services and hardware revenue [22] Market Data and Key Metrics Changes - Sales in India for the IP Optical segment increased 80% year over year, with strong performance in Southeast Asia and North America [15][18] - Service provider sales increased more than 10% year over year in Q1, with a significant increase in sales in the U.S. and India [8] - The backlog grew by 35% year over year, indicating strong demand and a book-to-bill ratio of 1.2 times [7] Company Strategy and Development Direction - The company is focusing on modernizing voice and data networks, with a strong emphasis on cloud technologies and AI deployments [5][6] - Ribbon is investing in new product development, particularly in routing platforms to support TDM elimination and IP over optical networks [31][32] - The company aims to improve gross margins in Q2 with a better product mix and regional profile [10][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong demand in the first half of 2025, projecting sales growth of 5% to 8% year over year [7] - The company anticipates a strong second quarter with sales growth of more than 10% year over year, driven by delayed enterprise deals and ongoing projects with U.S. Federal agencies [35] - Management noted that while there is uncertainty regarding U.S. tariffs, they do not expect a material impact on business operations [34] Other Important Information - Cash from operations was a usage of $4 million in Q1, with a closing cash balance of $74 million [24] - Total capital expenditures in Q1 were $12 million, with expectations for full-year CapEx to remain consistent with prior years [25] Q&A Session Summary Question: Any pull-ins due to tariff uncertainty? - Management indicated no strong evidence of pull-ins related to tariff uncertainty, with bookings consistent across the quarter [38] Question: Customer plans regarding potential tariffs? - Customers have not indicated changes in strategy or plans due to tariffs, and most service providers do not expect significant impacts [40] Question: Update on AT&T's Neptune ramp? - Management could not provide specific details but remains a strategic partner to AT&T and expects growth in IP optical in North America [42] Question: Benefits from retiring copper networks? - The company is involved in both eliminating copper and maintaining services through media gateways and software solutions [46] Question: Growth expectations for Cloud and Edge products? - Management expects Cloud and Edge sales to grow approximately 20% year over year in Q2, with IP Optical projected to grow 5% to 10% [49]