Summary of Telephone and Data Systems Conference Call Company Overview - **Company**: Array Digital Infrastructure, a tower company that emerged from UScellular after selling its wireless operations to T-Mobile on August 1, 2025. The company retained 4,400 towers and approximately 30% of its spectrum, along with minority stakes in wireless operating companies, generating annual income of about $150 million to $160 million [4][18]. Core Strategies and Financial Performance - **Revenue Growth**: Array reported a 12% revenue growth in Q2 2025, with a 7% growth when excluding application fees. Colocation applications increased over 100% in the first half of 2025 compared to the same period in 2024 [8][15][30]. - **Colocation Focus**: The company is focusing on colocation growth, particularly with T-Mobile committing to colocate on 2,015 sites, which is expected to increase cash revenue by 50% starting August 1, 2025 [9][11]. - **Operational Efficiency**: Array has brought its sales team in-house, which has contributed to improved performance. The company operates with a lean organizational structure, relying on TDS for back-office functions [12][13]. Market Position and Competitive Advantage - **Rural Focus**: Array's towers are primarily located in rural areas, with one-third of them lacking competing towers within a two-mile radius. This positioning is advantageous as carriers expand their mid-band footprint [14][15]. - **Spectrum Value**: The company retains valuable C-band spectrum, which is immediately deployable and attractive to carriers. The first build-out deadline for this spectrum is in 2029, with a second in 2031 [18]. Future Outlook and Industry Trends - **Colocation Demand**: The demand for colocation is expected to remain robust, driven by carrier investments and mid-band rollouts. The company anticipates continued growth in colocations and amendment activities [15][16]. - **Spectrum Transactions**: Array has pending spectrum transactions with AT&T and Verizon, expected to close by the end of 2025 and in Q3 2026, respectively. The company plans to declare special dividends upon closing these transactions [19][22]. Financial Strategy and Leverage - **Leverage Ratio**: Array is comfortable with a leverage ratio of three times, which allows for future flexibility in investments. The company has been upgraded to investment grade by S&P and has received positive news from Moody's regarding credit ratings [24][25]. Additional Considerations - **REIT Status**: Array is not a REIT due to asset and income tests that it does not meet. The company is exploring structural changes to potentially become a REIT in the future, which is seen as desirable for shareholders [22][23]. - **Long-term Investments**: In the short to medium term, Array is not planning significant capital investments but may consider opportunities in established rural clusters in the long term [20]. This summary encapsulates the key points discussed during the conference call, highlighting Array Digital Infrastructure's strategic focus, financial performance, market positioning, and future outlook.

Summary of Array Digital Infrastructure Conference Call Company Overview - **Company**: Array Digital Infrastructure (NYSE:AD) - **Industry**: Telecommunications Infrastructure - **Background**: Array Digital Infrastructure is the fourth listed tower company in the U.S., evolving from US Cellular after selling its wireless operations to T-Mobile, retaining 4,400 towers and 30% of its spectrum [4][5]. Core Points and Arguments Business Strategy - **Operational Focus**: The company emphasizes operational efficiency, particularly in colocation growth, which has seen a revenue increase of 12% in Q2 2025, excluding application fees [8][30]. - **Colocation Growth**: The company is set to increase cash revenue by 50% through a deal with T-Mobile, which involves colocating on 2,015 sites [9][12]. - **Ground Lease Management**: Efforts are being made to extend ground leases and reduce expenses related to "naked towers" (towers without colocators) through rent abatement programs [11][12]. Market Position and Differentiation - **Scale and Efficiency**: Array Digital Infrastructure operates with a lean organizational structure, relying on shared services from its parent company, TDS, which allows for operational efficiency [13][14]. - **Rural Focus**: The company’s towers are strategically located in rural areas, with one-third of them lacking competing towers within a two-mile radius, positioning them well for carrier expansion [15]. Colocation and Amendment Demand - **Robust Demand**: Colocation applications increased over 100% in the first half of 2025 compared to the same period in 2024, driven by carrier investments in rural areas [16][30]. - **Mid-Band Rollouts**: Continued amendment activity is expected as carriers progress with mid-band rollouts, with the company positioned at the tail end of this build-out [17][18]. Spectrum Management - **Spectrum Value**: Array retains significant C-band spectrum, which is highly valuable and deployable, with build-out deadlines extending to 2029 and 2031 [20]. - **Pending Transactions**: Two spectrum transactions with AT&T and Verizon are expected to close soon, with special dividends anticipated upon completion [21]. Financial Strategy - **Leverage and Credit Rating**: The company is comfortable with a leverage ratio of three times, maintaining a solid balance sheet and investment-grade credit ratings from S&P and Moody's [26][27]. - **Future Flexibility**: The current leverage allows for future investment opportunities while ensuring financial stability [27]. Other Important Insights - **Non-REIT Structure**: Array Digital Infrastructure is not a REIT due to asset and income tests related to its spectrum and partnership investments, but it is exploring options to potentially restructure in the future [24][25]. - **Long-Term Investment Plans**: While there are no immediate plans for capital investment in build-to-suit projects, the company remains open to future opportunities in rural markets [22]. This summary encapsulates the key points discussed during the conference call, highlighting the strategic direction, market positioning, and financial outlook of Array Digital Infrastructure.