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- **Fiber Expansion Milestone**: TDS Telecom reached 1 million fiber service addresses, with plans to evaluate additional edge-out opportunities of several hundred thousand.
- **Share Repurchase Program**: Board authorized a $500 million increase to the share repurchase program, reflecting confidence in long-term strategy.
- **Tower Margin Growth**: Array expects gradual margin improvement through colocation revenue growth and operational efficiency.
- **eACAM Program**: TDS Telecom's eACAM initiative targets 300,000 new fiber addresses with 15-year regulatory revenue support and potential 65%-75% penetration rates.
- **Spectrum Transactions**: Array anticipates closing spectrum sales to AT&T and Verizon in 2026, with a $10 per share special dividend for Array upon AT&T transaction completion.

**【Management Opening Remarks】**
- John Toomey introduced the call, highlighting the transition to his new role and the availability of presentation slides for reference. He emphasized the forward-looking nature of the discussion and reminded participants of the risks associated with future projections.

**【CEO Summary Section】**
- Walter Carlson reported on Q3 performance, noting the successful closure of the T-Mobile transaction and the transition of Array into an independent tower company. He highlighted the appointment of Anthony Carlson as Array's CEO and the achievement of 1 million fiber service addresses by TDS Telecom. Carlson also mentioned the receipt of a $1.6 billion special dividend from Array and the announcement of a $500 million share repurchase program.

**【CFO Financial Commentary】**
- Vicki Villakrez provided details on the capital allocation strategy, which prioritizes fiber investment, M&A, and shareholder returns. She noted the Q3 repurchase of 1 million shares and the authorization of an additional $500 million for share buybacks. Villakrez also discussed the fiber expansion program, including the eACAM initiative targeting 300,000 new fiber addresses, and the expected regulatory revenue support over 15 years. She emphasized the company's disciplined approach to capital allocation and its focus on accretive M&A opportunities.

**【Q&A Key Highlights】**
- **Fiber Expansion and Cohort Analysis**: Ken Dixon confirmed the evaluation of several hundred thousand additional fiber addresses and acknowledged investor interest in cohort penetration data. He noted the lack of industry standards for such reporting but indicated a focus on improving sales execution and penetration rates in existing markets.
- **Share Buyback Strategy**: Vicki Villakrez clarified that the $500 million buyback authorization reflects board confidence in the company's strategy and the attractiveness of returning capital to shareholders. The timing and execution will be disciplined, contingent on spectrum transaction closings.
- **Array's Naked Tower Strategy**: Doug Chambers outlined plans to lease or decommission naked towers, emphasizing the need for ground lease rationalization and the potential for multi-year decisions on each tower's viability.
- **Leverage Target and M&A Considerations**: Walter Carlson reaffirmed the 1.5x leverage target for TDS Telecom, noting it balances flexibility with growth opportunities. He indicated a focus on accretive M&A within existing market clusters rather than broader acquisitions.
- **Tower Margin Growth**: Doug Chambers discussed long-term margin improvement through colocation revenue growth, SG&A cost reduction, and ground rent rationalization, anticipating gradual margin expansion as operational efficiency improves.

**【CFO Financial Updates】**
- Ken Dixon highlighted TDS Telecom's Q3 achievements, including 42,000 new fiber addresses and 11,200 residential net adds, while acknowledging the need to accelerate address delivery to meet annual targets. He emphasized the eACAM program's strategic importance, potential penetration rates of 65%-75%, and the associated regulatory revenue stream.
- Doug Chambers provided updates on Array's spectrum monetization progress, noting 70% of spectrum holdings under agreement and the pending closings of AT&T and Verizon transactions. He also addressed the legal dispute with Dish Wireless and reaffirmed Array's commitment to enforcing its MLA obligations.

Array Digital Infrastructure Inc (AD) Q3 2025 Earnings Call Transcript

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