Welcome to Caesars Forum, Las Vegas, for DISH Analyst Day 2022. Please welcome President and Chief Executive Officer, Erik Carlson. Welcome, everyone, and thank you for joining us today. You know, my career at DISH spans 27 years almost. I joined in August of 1995 before we actually launched our first satellite. It's been a tremendous journey. It's been a thrill not only to watch but help our company evolve. You know, we launched a satellite into space when people said we couldn't. By the way, disrupted the Pay TV industry with DISH TV. We disrupted Pay TV again by launching the first live streaming OTT service in Sling TV, and we entered the consumer wireless space just about two years ago with the purchase of Boost. There's been a lot of changes that have happened over my time here, but one thing remains constant, our vision to change the way the world communicates and our mission to connect people and things. Now, look, we've built incredible capabilities over the past several decades. Most of you are familiar with these, but today we are gonna focus on the future, that next leg of our journey, which is wireless. We are excited that you are here with us today, and I certainly appreciate the time and the investment that you're making in joining us. As you know, we've been up to a lot over the past couple years, acquiring spectrum, planning our strategy, investing in modern technology, and look, working extremely hard to build the world's first cloud-based smart 5G network. Now, today we're gonna share some details about our vision, about our plans, about our progress, and ultimately what the opportunity looks like for DISH, our team members, our partners and vendors, our shareholders and investors, and America. Now, for today's agenda, we're gonna start off with a few words from our Co-Founder and Chairman, Charlie Ergen. Following him, we're gonna bring up Marc Rouanne, our Executive Vice President and Chief Network Officer. He's gonna talk to you really about why our network technology is different from the others. You're gonna hear key terms like O-RAN, cloud-native, software-defined. Following Marc will be Dave Mayo, our Network Development Executive Vice President. He's gonna cover our deployment details. He's gonna talk about our coverage plans, and he's gonna talk about our cost advantage. Following Dave, we're gonna take a quick 15-minute break, and we're gonna come back with Stephen Stokols, our Executive Vice President of Retail Wireless. Stephen is gonna dive into the consumer wireless opportunity, talk to you about what our plans are later this year and beyond. We're gonna have our Chief Commercial Officer and Executive Vice President, Stephen Bye, come up and talk about our enterprise opportunity and unlocking the promise of Industry 4.0. He'll be followed by our President and Chief Operating Officer of DISH Wireless, John Swieringa, who will close out the presentation portion of the event. He's gonna share some observations, summarize a few key points from the presentation, and give you his thoughts. We're gonna round it out with a Q&A with our presenters, and we have other executives in the audience today. I would ask you if you have questions, please hold them to that Q&A session. When we end the Q&A session, we're gonna adjourn approximately 5:00 P.M. for a cocktail reception right out these doors. Now, before I invite Charlie up on stage, I would like to extend a big thank you to all of our partners who have joined us on this journey. They believed in our vision. They believed in our technology roadmap, our architecture, our open modern platform. It's a remarkable number of names. Some you know, some you should probably get to know, but we wouldn't be here without them. Once again, I wanna thank you for being here and investing your time with us. Without further ado, I'd like to welcome Charlie up on the stage to talk about our vision, the art of the possible, and where our business is headed. Thank you. Unlike Erik, I joined DISH 42 years ago, prior to the launch of our first satellite dish, which unfortunately was on the back of the trailer that Jim DeFranco was driving, or that I was driving and dumped it in the middle of the highway, and we lost half our inventory the very first day that we opened our business. I'd also like to thank our vendors as well. It's been 10 years since I've made a presentation, so I'm gonna be a little rusty, so you'll have to bear with me. When Erik was talking about vision, that kinda reminded me of the famous line from Butch Cassidy and the Sundance Kid, where Butch is kinda walking down the He's riding down on the prairie or on the range with Sundance. He reaches over, he looks out over the range and he says, "Boy, I got vision. But all the analysts in the world wear bifocals." Of course, Butch lived in the 1800s, so I'm not sure he was talking about some of our audience today. On the other hand, you have Rob Banks. So he's like a lot of you, he invested other people's money. I wanna talk a little bit about vision and strategy, kinda how we got to where we are today. You know, everyone's familiar with the Innovator's Dilemma, right? And how difficult it is for companies to identify technical shifts and then do something about it when they actually see something, right? In fact, when DISH started in 1980, the vast majority of the Fortune 500 companies no longer exist. Since when we started in 1980, the vast majority of the Fortune 500 companies no longer exist. In fact, in the last 75 years, only about 10% of them exist. It's hard to stay in business as a company for a long period of time. DISH had already lived through such an early dilemma, right? In 1986, we decided to launch our first satellite. That was when analog was Analog TV. It was big dishes, and we thought, well, we'll lower our cost by launching our own satellite. It wasn't until 1990 when we saw the technological shift to digital television, to digital compression. We saw it in the lab, and we realized that this business that we've grown up and built a profitable business was gonna slowly go out of business as soon as somebody figured out how to do digital. General Motors, DIRECTV, and DISH, for four or five years, we actually did a paradigm shift where we took every piece, every nickel that we ever made and some money we didn't have, and we decided to build our own satellite and launch a digital revolution. As a result of that, we got 15% of the pay TV business, right? In 2012, we saw another Innovator's Dilemma coming, right? Those of you who listen to our conference calls, right? Remember when we started talking about, you know, we saw this thing called OTT. We actually saw TV being delivered over landlines and over fiber optic cable. We thought about that and we said, "You know, that's probably gonna lead to a maturation of our linear TV analog business and a decline." Starting in 2012, right, we realized that we were gonna need a connectivity business, a terrestrial connectivity business, to prepare us for those changes that would complement our video and satellite business that we had today. We're gonna talk about that strategy today. Before we get to that, let's talk about how our strategy's been perceived. By the way, when we launched satellites, we weren't a public company, right? I imagine we would've had a similar fate. We need to look no further than our stock price, right? In 10 years, the last decade, our stock price has actually gone down, right, about 25%, right? Not a ringing endorsement of our strategy, at least so far, right? In fact, some of our investors may feel like this. Others may feel like this. Others may feel like this. I can tell you personally that at DISH, we feel a bit more like Eddie Cantor, right? Who famously said, "It took me 10 years to become an overnight success." Eddie took 10 years to improve his craft in Vaudeville before becoming a movie star, before becoming a comedian and a television personality. We've been doing a lot over the last 10 years that I don't think we're getting credit for, right? We've been learning and building tremendous value every day. Just like Eddie Cantor, right, we've gotten better every day, every month, every year, and now we're ready for the main stage. To make that pivot to mobile connectivity, we realized we first needed to strengthen our foundation, although it was very strong even when we had it. Good foundations last for a long time. Now we'd already built a lot of that foundation, as I said, prior to 2012. Since the last 10 years, we've added onto that to be ready for where we're gonna go. It always starts with experience, right? Not many companies have 40 years of experience. We've seen tremendous technological change. We've weathered economic bull markets and bear markets. You also have to have a management team, right? This team, most of our team has been with us 25 plus years, sometimes in other industries, but with us on average about 25 years in terms of experience, right? They've helped build this company into a Fortune 200 company. Hopefully, some of you will get a chance to meet some of these people, either today on stage or maybe you'll meet them at the reception. We have 30 million customer relationships, along with brands like DISH, Sling, and Boost, and retailers that sell this product and consumer relationships. We're not starting from scratch when it comes to getting to the retail business. We have a strong presence in rural America. Rural America is difficult to get distribution. Rural America takes longer to cultivate. Rural America, very loyal customer base, but it's a lot tougher than just running an ad on TV and hoping people will come into your store. These relationships are all gonna provide future revenue opportunities and steady cash flow for it. We have satellite assets, and we have satellite experience. That means that we believe that the world is, when you start communicating and connecting the world, you can't do that except with satellites, particularly in geographic areas or in the United States and around the world, and we're well-equipped to do that. We have key strategic vendor sales relationships and partnerships. Our customers can reach us 24 hours a day. We have the ability to install communication equipment in people's homes. We can go on their roofs, no matter where they live in the United States today. And again, I mentioned we have retail distribution, and we have distribution centers across the United States. In the last couple of years, we've gotten significant MVNO agreements. Both with AT&T and T-Mobile, where they have nationwide networks which allow us to be in a nationwide network before we've completed our entire network. You'll know more, a little bit more about Dave Mayo, why that's important later. Where I wanna spend a little bit of time is our spectrum that we've acquired. Strategically, we spent over $30 billion and paid for limited spectrum in the United States. It's taken 25 government auctions to get this. Some we've been successful in, some not. After a decade, we've accumulated 150 megahertz of mid- and low-band spectrum, and we've also gotten over 1,000 megahertz or 1 gig of high-band frequencies, all purchased and paid for, as I said, for $30 billion. It would be next to impossible for a new entrant to duplicate these spectrum assets. The barriers to entry, if you wanna be in the wireless business in the United States, in my opinion, are insurmountable at this point if you're not already in the business. We've also done it efficiently. As an example, in the wireless entry, incumbents spent over $2 a megahertz POP for AWS and over $1 a megahertz POP in the recent C-band auction when you pull their clearing cost in there. DISH total spectrum cost, on the other hand, has been bought for about $0.62. When you add our build-out cost, when you look at our $10 billion build-out cost for our nationwide network, we come to about $0.82, I think, for a completed network, which is far less than the incumbents have just paid for spectrum alone. We've done it in a very innovative and efficient way. In addition to spending less money on spectrum, we also have purchased strategically. I wanna spend a little bit of time because most people have not. There were two auctions, both in CBRS and C-band, where people don't really understand, I think, where we're trying to go with that. Each of our five bands that we have are nationwide. It's not chopped up, it's nationwide, which helps in terms of build-out and gives us a lot of standardization. This is particularly true in C-band, where, of course, we know Verizon and AT&T are the biggest players. The center of C-band is uniquely positioned and designated as CBRS. This band includes both licensed, which we call PALs, priority licenses, unlicensed GAA. It's both of those bands, about half and half in that band. The open nature of the band and the fact that it's not controlled by wireless incumbents leads us to believe that this band will be critical to the development of the enterprise business. DISH is the only provider that bought nationwide priority licenses. Every square inch of the United States, we cover it with priority licenses. In addition, in the recent 3.45 auction, DISH won up to 40 MHz. We average a little bit over 30 MHz nationwide. This provides us, in the center of this band, about 80, up to 80 MHz of a continuous block of licensed spectrum that can be used for micro cells, small cells, and private networks. But also, when you look at the total band, there's potentially 190 MHz for licensed and unlicensed that consumers, companies can use. I believe that where you're gonna see all the innovation, and where you're gonna see private networks built first will be in this CBRS band. Then as they build it, they're gonna look for more licensed spectrum for more critical ca. Then they're gonna be looking for higher power in C-band. You can see how perhaps those things will come together, and Stephen Bye will talk a bit more like that later. As we're accumulating our spectrum, of course, the idea was at first gonna be build for 4G LTE. Then we started hearing about this thing called 5G, and we got excited. We thought, "Well, 5G, wow, that's gonna make a big difference." We read all the press about it. Then in 2018, in a span of about 30 days, we realized we were kinda on the wrong track, and we had a major pivot to come. Three things kinda happened, and they all happened within 30 days. I'm a big believer in serendipity sometimes, right? But the first thing, we went and visited Bell Labs, where a lot of telecommunications inventions have happened, like the transistor, of course. There we got a glimpse into where they thought the networks of the future were going. A guy named Marcus Weldon, who ran the lab, gave me a book called The Future X Network. That book described in many parts the network that we're building today. It essentially talked about how future networks can digitize the physical world, which is too hard to explain in the minutes that we have today. A couple weeks later, we're at Mobile World Congress, and there was this company from Japan called Rakuten. Rakuten had was way ahead of us in terms of research they had done. They would talk about the network of the future and talk about the architecture of the network, where they wanted to adopt principles like O-RAN and cloud. They were proceeding down that path. They were a little early. Technology wasn't quite there yet, but they did make tremendous progress in where they were going. I attended the World Economic Forum in Switzerland, and I'm sitting in an auditorium something like this, and I'm listening to a panel of future technologists or futurists, right? They started talking about the technologies of the future. I already had in my head that networks might wanna be a little differently, and suddenly you saw the technology of the future, and they started talking about mobile internet, artificial intelligence and machine learning, precision agriculture, navigation, blockchain, drones, robotics, clouds, autonomous vehicles, smart cities, smart digital health, IoT, satellite networks, and climate change. I'm like, "Right." Let's take maybe a little bit of look at what these technologies look like. All these technologies have something in common. None of these technologies worked without being connected. You connect a few of them to wires and cables, but most of them could only be connected wirelessly. They also needed a new kind of network. They needed a reliable low latency connectivity network, and 5G alone was not gonna turn these technologies into reality, or at least not get their full benefit, right? Current networks were designed for voice, and they weren't well-suited to these technologies. 5G was a piece of the puzzle, part of the solution, and over time it would become more and more of the solution. The whole system needed new architecture. Of course, having read the book and listened to Rakuten, we knew at that point a little bit about the principles of architecture. We had three main principles that we came up with. First was Open RAN, right? We could break apart the end-to-end solutions that monopolize the networks in the United States, right? We can mix and match vendors and get the best of breed and so forth. We know what closed systems are like, right? We lived through that with our first telecommunication from the Bell System, right? In fact, in 50 years of the rotary phone, we basically went from a black phone to a pink phone. That's from my early life, that's what I got, right? An open system, we have not even fully open, but an open system, we know what it makes. We have 4 million apps now that you can download to your phone, right? Whether you're ordering a car, ordering your groceries, or you wanna tune your guitar, right, all those function now because app developers and creative people are able to tie into the network. That's what open means. App developers, and maybe Marc will talk about that a little bit, are gonna be able to play in our network. Second principle is virtualization. Just means we do a lot with software where others have done hardware. Networks today, you'll go out to sites, you'll see a lot of equipment, a lot of big boxes. We do most of that with software, right? Most of our software, which is lower cost and of course more flexible and easier to maintain, and of course, you can move a lot faster. Finally, the network needed to be cloud- native. That means our network operates in the cloud. Now why is that important? That's important because now we can automate. Now we have our own data. Now we can use that data to make our product better, more secure. Taking those three core principles, we knew we could build a network that was far superior to what the existing networks, and take advantage of where the world is gonna go. That network is operating today right here in Las Vegas. There is not a network like that in Japan. There is not a network like that in Korea. There is not even a network like that in China. Certainly, the incumbents in the United States do not have that. Now we're not perfect yet, and we certainly have to scale, but our company has certainly built the most modern network in telecommunications today. DISH, all that means is that all those technologies, where things are going in the future, DISH Network will be at the center of that. Not that the other guys won't be in there as well, but we will be at the center of where technology is gonna go. With our smart 5G network up and operating today, while we have to scale it, the last piece of our foundation is now in place. We're on track to finish the first 20% of our network in the coming weeks. Along with the spectrum of $3 billion, we spent $2.5 billion to get to this point on the network. Hopefully, you'll be able to test drive the network if you want to here, and we have some Project Genesis people out here. You can actually sample a network if you want to, right? As we sit here today, the most difficult parts of our foundation are now complete. Now, you know I like to climb mountains, right? As mountain climbers, when we look at a mountain, we're always looking at what we call the crux, the hardest part of the mountain. We know when we get past the hardest part of that mountain, we become highly confident that we can make the top. Here's a short video of Alex Honnold as he practices going through the crux on El Capitan, which he free climbed. First person to free climb. You're gonna see the you saw the joy in his face, and if you had a lip reader, you could have made out what he said. You saw the joy in his face when he knew he got past the hardest part. We faced a similar challenge in 1995 when we launched our first satellite. As we sat in China, if the satellite didn't work, we had a 20-minute controlled explosion. If the satellite didn't work, we were out of business. It was gonna be the crux of what we had to do. We'd done a lot of things in the background. We'd spent a decade to get there, eight or nine years because we'd filed for our first satellite, and it took us till 1995 to launch it, right? As I sat in China, and the satellite launched successfully, I knew that we had everything to be a Fortune 500 company. I knew we'd be a Fortune 500 company 20 minutes after that launch happened. Now, in Las Vegas, I believe we passed the crux. I feel very confident as I stand on this stage today that we have everything that we need to become a Fortune 100 company. It includes. We have work to do. We're not spiking the football. We still have the end of our deployment. We still have several years of deployment. We also have we now need to monetize. There's a lot of you here, we have to monetize what that. We take all those assets that we have as a company, all those foundational elements that we have as a company, how do you go monetize that and turn that into cash flow, right? We have three places to go with that: private networks, wholesale distribution, and retail sales. Private networks, you're gonna hear from Stephen Bye. Retail sales, you'll hear from Stephen Stokols. We'll talk a little bit. Those guys will talk a little bit about that. Within that backdrop of all that, United States gaining leadership in telecommunications is a national priority, and DISH is helping in that effort. It's one of the few bipartisan issues in Washington, and there're not many, but that's one of them, right? Everybody wants to be better than the Chinese. Everybody wants something different for equipment. You need to look no farther than the FCC chairperson's Twitter page. The future belongs to the connected, right? In fact, I contend that anyone born today, I just had a grandchild a few weeks ago, will never not be connected. Every time somebody's born, we get a chance for a customer for 77 years. From an infant to a teenager to middle age to a senior citizen, people will be connected. In fact, some may be connected even after they're gone. If you believe that the cloud economy is growing 35% a year, if you believe that devices and mobile phones will connect seamlessly to satellites worldwide, if you believe that blockchain will advance decentralized finance, if you believe governments believe climate change is real, and they will mandate carbon emission reduction, if you believe drones and robots will become mainstream, if you believe that Facebook really will become metaverse, if you believe private networks will save companies money, produce new revenue opportunities, and make their products safer, if you believe cities will become smarter, if you believe autonomous vehicles will populate our highways and skyways, if you believe there's gonna be billions of IoT connections, if you believe that artificial intelligence is going to become essential for companies to survive, if you believe inflation is more than transitory, if you believe 5G connectivity is as essential as electricity, if you believe big data is valuable, if you believe open is better than closed, if you believe spectrum is a scarce resource, then you might conclude that DISH is uniquely positioned to capitalize on a once-in-a-lifetime technological evolution. Hopefully, over the next day, decade, our investors will feel more like this. Maybe some of you will feel like this. I'm hoping that I'm gonna feel like this. Enough of this no-nonsense. Our next presenter will be our Executive Vice President, Chief Network Officer, Marc Rouanne. Now, Marc had a distinguished career in the Telco, particularly in Nokia, where Bell Labs actually reported to him. He was in the book I read, so that's how I had met him before. While we had a vision and principles of this network we were gonna build, we needed somebody to help bring it to reality. I flew him to France to meet with Marc, and talk about our strategy of building this new smart 5G network. He was excited and enthusiastic, and he said, "I've been waiting to do this." Right? "I could never get this done in my previous positions." He started talking a lot about a lot of buzzwords at the time. I didn't understand what they were. He talked about a lot of stuff I just totally didn't understand, and he could see that I was getting confused since I was just an accountant. He finally drew the network on a napkin, right? This is what he drew. He said, "There's two axes. There's just two axes for a network." Right? One is your cost, and one is your flexibility and innovation. The network that you can design with the assets that you have, the network I'll design for you, will be in this upper left-hand corner. Low cost and flexible and innovative. Every incumbent network in the world today is high cost. They work, and they work pretty well, but they're high cost, hard to maintain, and they have a ton of legacy that's gonna be hard to rip out. You've heard me say it many times, we were building Netflix in a Blockbuster World, right? In other words, we're just building something that's better, more flexible, and less expensive. With that, I'd like to bring up Marc after a short video. Thank you. Well, wire's only good so far. Please welcome Chief Network Officer, Marc Rouanne. Thank you, Charlie. Hello, everyone. Good to be with you again. You heard Charlie's story. Let me start with that. I mean, Charlie, yeah, you came to Paris visiting me a few times. I remember that. What you didn't say is that you did a pretty extraordinary thing. I've been working in Paris for many years, and you found the cheapest business lunches I could ever have in Paris. Even better than that, Charlie didn't pick the bills. The first time I thought, "Well, he forgot." The second time I knew Charlie was different. Now this is true that I've had that dream. I think many of you know that, through the Bell Labs, through Nokia and previous companies. Some of you know I've been working there, managing the business of mobile networks for about 20 years, having, you know, 25,000 engineers. The smartest people in the world, we just could not make it happen. The reason is that, first, the technology was not quite there. You know, you needed a lot of technology that we have now, but we didn't have that customer, that one customer that would be an entrepreneur, that would be in a large market like the U.S., and that would understand what it takes to be disruptive. It's not just about innovation, it's about innovation at the right cost, right? Charlie is that type of guy. I remember telling Charlie many times, "You know, Charlie, if we can do that's the only job I want to do. Otherwise, I'm not interested in working anymore because I've tried. We did it, right? We talked about this exactly as he said. You know, one way to catch Charlie's attention is to talk money. We decided on those principles. We were going to be the lowest cost network in the world, and some of you know that I had a very strong reputation as a cost killer, so for me, I was very energized with that. We were going to be the fastest innovation machine. It's not about the best product, it's about the agility to create innovation at speed. Otherwise, you get stuck, and I've been stuck for many years in low innovation. Lowest cost, fastest innovation. With three principles. The first one was Open RAN. Now, Open RAN is a strange animal, and that's one that, you know, is getting very weird press. Actually, Open RAN, out of all the principles you're going to see today, is quite easy. When at Nokia, we acquired Motorola, in a few weeks, we could connect Motorola radio to Nokia base station. That's easy to do. If you are Ericsson, and if you are a dominant player in AT&T, in Verizon, you know, all the networks that are in U.S. or in other places of the world, will you open up? Well, you would take your time and you would say it's damn complex. For me, blocking Open RAN is like if you are saying you buy a car, don't mod. When you need to change your tires, you have to change the car. Because that's what it takes. If you block the network by the radio, if you have to change the software, swap the radios, climb 20,000 towers. That's what AT&T and Verizon face. There is a status quo. Now, the next big principle is cloud-native. Cloud-native is not always easy to understand for people that are not deep into technology. The way I like to think about it is, again, when I think about cars. You buy a car and you ask the dealer, "Is it a new car or a used car?" It's either new or used. It's not half used, half new. Well, cloud-native is exactly that. It's either pure cloud-native, brand new, or it's used. I like to say refurbished. When you have 5G in the U.S., you have refurbished 4G. Now, there is a nice word for that. Nobody would say refurbished 4G. No, you know what? It doesn't, it's not sellable. What do we sell it for? Non-Standalone. Have you heard Non-Standalone? I'm sure it doesn't make sense to most of you, and that's on purpose. Nobody wants to understand that Non-Standalone means old refurbished 4G. The 5G you have today is 95% 4G. 95%. The only thing that is different is that the radio, 20% of the radio can do 5G. The rest, all the core network, all the software is 4G. Now, you put a little icon on the phone and you try to sell 4G for 5G. I think it won't fly very well. The way we think of legacy 4G, 5G networks is those black boxes that are not open. Actually, they are closed. A famous saying in the industry, and those of you that are connected to your operators know that, "If you don't want to break it, don't touch it." Which means the innovation cycle time is on average 18 months to two years. Very slow innovation. Costly, painful, complex. To the extent that very often when I was at Nokia, we would sell a product, at the time we would put it into market, the hardware it would use was already end of life. We had to call our supplier and say, "Can you empty your shelves? Because we're going to be selling that for years," and the chipsets were already end of life. I mean, that's how bad it gets. I'll give you another example. With the COVID, the number one communication means has become the video conferencing. Have you seen one out of the 300 operators in the world seize that opportunity? No. It's coming from the over- the-t op. Why is that? Because by the time they thought about it, by the time they tried to implement it was gone. I'll give you even worse as an example, WhatsApp. When I was at Nokia, I had 1,200 people working on voice software and messaging software, and then comes WhatsApp. 32 engineers. When they reached 50 million subs, we started monitoring them on a weekly basis to try to compete. We lost. 32 to 1,200. Why? Because we were stuck into delivering legacy to our big customers. This doesn't work. The dream I was having and that Charlie embraced was to innovate at the speed of the cloud. Never again face a WhatsApp story, right? For this, cloud 5G allows that speed in a secure and open way. Now, I want to talk about secure and open for two seconds. In a classic 4G, there is what we call implicit trust. Ericsson to Ericsson trust each other. In 5G, there is Zero Trust. Every transaction is checked. It's like PayPal. PayPal, a few years back, decided to move to everything cloud- native, and they started elevating their security. They started encrypting everything. They started having dual authentication. They started having very encrypted and secure databases. Now, still they are very open. They work with everybody else. Open in our jargon means I can interrupt, but our 5G networks are extremely highly secure. Nobody gets in. Nobody can work inside the network without full transparency and visibility. The result that you have here in Vegas is a live network which is not a 4G+. This is that world premiere that I've been dreaming of. I mean, I'm very emotional about it. I mean, we did it, we made it, our engineers did it, our partners did it. I know there were a lot of discussions when we started, and it happened. Whatever happens now, we have done the world premiere forever. This is a milestone in the industry. We all know it, we all feel it, we're all so proud of it. Go and test it, discover what it is going to be like, future 5G. This is unique. Let me change gear. I'm going to talk about technology now. I'm going to talk about the journey to do a cloud-native network. If you look on the left, you have what a 4G, 5G network is in the U.S., Cisco talks to Cisco, Nokia, Ericsson. These are black boxes. They are tied together. They are not open. If you want to move to cloud-native, you have to go through those journeys, right? Each of them, you have to start virtualizing. You have to start putting a cloud layer. You have to start putting the whole stack of capabilities. Now, often, some of you ask me, "How much time does it take to move from one step to the other?" I've been thinking about that a lot. My guess, with the experience I've had at Nokia, is that moving from the first to the second is 5-10 years. That's called a digital transformation. Virtualizing all your hardware. Then 5-10, then 5-10. Well, doesn't add up. 15-30 years. Who can afford that? The result I came to, took me a long time to accept that result, is that it's broken. It won't work. There is no way to move from left to right. Just no way. Now, that's my view. Trust me, I've tried for decades to move. Just too slow. I decided that I only wanted to be on the right, and that's what we're doing with DISH. I'm going to give you a bit of an explanation. I mean, this is very technical, so I'm going to play with you a bit. I'm French, right? You know, French people, what do they like? Soccer, sailing. I thought if I took soccer, maybe I wouldn't make it. I'm going to talk American football. A French telling you about American football, that's going to be interesting. American football, that's the way I see our team, right? Our team of partners, they are players, right? You're with me. This is a football team. The applications are the players, right? And they all have specific roles. Now, the different layers that you see. People ask me, "So what do people do? I mean, we don't understand the role of all these different vendors." The cloud layer, this is what I call the gym. I have two gyms. I have one in an AWS gym. AWS gym and a VMware gym. That's where I send my athletes to train. In AWS, it's bulk building, strength, heavy lifting for the first line. In VMware, this is cardio. Running, light, and fast athletes. Wide receivers. In VMware, that's where I train Mavenir, because these are light receivers, wide receivers that go to the far edge, right? They go all the way to the end zone, which is the enterprise. They have to run fast. I have many of them, thousands of them. That's the VMware trainer. AWS is the bulk. That's the core network, right? Why do I say it's a gym? Because in a gym, what you train is your heart, and your heart will go up and down depending on where you are in your sport, right? Your heart is scaling up and down your capabilities dynamically. That's exactly what the cloud is doing. You learn to scale up and down, right? On demand. That's the gym, player one. The second one is when you go practice the muscle memory. If you are a punter, you need to punt. You need to punt thousands of times. If you are a receiver, a wide receiver, you need to catch. If you're a quarterback, you need to throw thousands of times. We send our athletes to the field, and it's managed by Oracle. Oracle is managing muscle memory. Oracle is the intelligence of the network that is meshing the connection between all the software. It's very technical. It's new in 5G, never existed before, and Oracle is doing that. Oracle is special. I was discussing Formula 1 with Oracle this weekend and Red Bull victory, and they were telling me something that I didn't know. Some of you are following Formula 1, and you may have seen that Verstappen won the last race of last year because there was an accident, a safety car, a pit stop, and all of a sudden, Verstappen had the right strategy and won, and could pass on the last lap. What I didn't know is that Oracle had run 4 billion strategies prior to the race, and when the safety car went out, the winning strategy went up. They applied it, and they won the championship. 4 billion times they have tried, they have tested and done the this muscle memory and calculation. That's the same we do with our vendors. The third layer, I'm still in football, stay with me, is the brain. It's IBM. Where is the brain of the football team? It's the coach and the quarterback. What do they do? They prepare different plays, and then they say, "Play number 20, 25," and they just execute, right? This is IBM. IBM slicing, IBM orchestration. That's where we prepare the plays. That's where we say, "That wide receiver is going there," this and that. We slice the network to have different types of services. That's IBM. The last layer is DevOps. This is where we train the rookies, right? That's where we bring new software, try new software, and I'm very happy to have a new rookie on the bench, Samsung. They are going to go into DevOps, and once they are trained, once they go through all the rest of training, they'll go and play with the main team. Now, like a big football team. If somebody gets hurt in the field, we have somebody on the bench that can be replacing them on the spot. That's what we call self-healing, high availability, geo-redundancy. Our network is designed for that, just like a football team. That's what we've designed. Now you see it's pretty different from the Verizon, T-Mobile, and AT&T 5G, you know. I don't think they do that like this, but that's the new world in which we live. Let me give you some material for you to start building your models because it's so different, and I know you guys like to put this in models. You certainly can do that much better than me, but what I know, because I've seen in the past, once it's your model, it's very precise. I'm going to try to give you some clues on how to get to this new model of DISH being different and how it impacts the numbers. It's all about impacts on OpEx, CapEx, and investment. The first impact is on the way we invest. Leveraging colocation, data centers, roaming, existing transport, virtual labs in order to have investment on demand, not over-investing like existing networks. The second dimension is scaling up and down. Most of... Actually, all of the mobile networks are empty most of the time right now. They are full one hour per day, a few days per year, but they don't scale up and down. You dimension and pay for the network for that 1 day, Mother's Day or New Year's. You just pay for that forever. We scale up and down, right? The next one is automation at scale. Automation has a huge impact on OpEx, and we automate everything to the extent that our people now are capable of spinning up software several times per day. When, remember, it takes 6 months to 18 months to an AT&T to do it. I was talking to the guy who was in charge of the core network the other day, and he was saying, "Marc, it's actually fun. We just spin it off in, out, try a new software, do load balancing." I said, "Well, it's live." "Yeah, but we do it. It works several times per day." The last one, which is my favorite, is the intelligent capability that we derive at the RAN, at the transport. The most famous one is the RIC, which is part of the Open RAN. I'll just give you a number there. When I was at Nokia, we presented with the Bell Labs a demonstration at Barcelona, maybe some of you saw it, where we were showing spectrum efficiency with machine learning and AI. The number we were showing is that you could gain 40% spectrum efficiency. 40%. Now you remember Charlie saying $32 billion investment. Imagine you can squeeze on average 2%, 3%, 4%, 5%. I mean, you guys are the best at the math. You understand the $1 billion we're talking about. With just one function on the Open RAN on the RIC, right? There's plenty to do there. Spectrum is so valuable, you want to squeeze everything out of it. Let me move to the second dimension. We are creating an engine for new services through rapid innovation at the speed of the cloud, just like WhatsApp, like just like AWS, just like Azure, with premium capabilities to sell advanced services. Today, if I'm an enterprise, I go to a 5G provider, what do I get? Best effort. Would you accept to be on remote surgery with a best effort network? I mean, I'm telling you, I know the technology of best effort. Never. You'll never see me there. You need an SLA. You need a network that can guarantee the quality of service. Today, existing network can't. The 5G, because of the way 5G was standardized with slicing, with traffic separation, with machine learning, visibility can guarantee SLAs. Then we'll expand, Stephen Bye will come back to that. We'll expand with new addressable markets through another way of exposing our services and capability, and I'll come back to that. I'll show you an example of that. If I go now into the way it looks because you say, "Well, I don't understand what he's talking about. I mean, football, this, that. How does it look?" Well, that's the way it looks. It's pretty cool. It's a data center, right? Our software, maybe in the morning, is just using one rack, and in the afternoon, the full range. In the end, at night, nothing again, right? That's our network. Scalable data center across the country. It's a very simple architecture. Cloud-like servers, so we use x86, just basic stuff. Cheap, mass market, basic stuff, and Kubernetes. Now, I'm not sure you all know what Kubernetes is, right? I'll tell you. It's the most used stack in the cloud, and the symbol is a marine wheel here. Why? Because Kubernetes means helmsman. That's the name for the guy who is steering the boat. Why is it a steering wheel? Because Kubernetes is steering the network, and it's steering a cargo of containers. When you see that little thing, you think a cargo of containers. I like to visualize, you know. Cargo of containers. Each container is little Nokia, little Mavenir, little this, and I can move my containers where I want. Very simple architecture. Hardware, state-of-the-art hardware for data center and a steering of the containers. Then you move your stuff wherever you want. That's what it is. Then we connect to radios. If you compare our architecture with AT&T, we have one thing in common. Your radio. That's it. Nothing more. Right? That's it. The rest is different. Zero Trust. Now, I put at the bottom the Zero Trust, observability, cloud-native, everything as code, driven by data. It's for my friends from the vendors are here because they keep hearing me saying, "I'm not taking anything that doesn't meet those principles." I mean, I'm sure they're all smiling like, "Yeah, we know that." You know, all the time. It's like, down their throat. Never make a compromise. We want pure cloud-native. We want Zero Trust. We want everything observable. They know that I've not moved one inch in the last three years on that, and that's why we have the network we have. I'm happy they accepted the challenge because here we are, right? I see some of them laughing and feeling the pain of the last three years. Hey, guys, here we are. It's pretty cool. Let me show you the way it looks. At the top, we have this DISH public cloud, right? The way it looks is a bunch of data centers. They're all connected. We call it mesh in our jargon. That means they're all connected in a very organized way. You lose one, nobody cares. It switches automatically to the other one. I'm going to use a bit of a technical jargon here because we have what we call stateless machines. Now you all my vendors know what it means. You are not losing the session. If one data center dies, the session is automatically routed there, and because there is no memory in the transaction, you don't lose the session, you don't break the code, you don't lose your drone. It's. We did not invent it, that. I wish I could say it's me, but no, it was defined by 5G. 5G defined it like this for machine- to- machine, for very high reliability and mission critical. Now, the beauty of this, and I'm going to show you what my engineers love. I mean, they just get addicted about it. The beauty of this is that you click and one third of the data centers go to sleep. You click again, they go back. You know, you think I'm kidding, but it's one click. We've been working 3 months or 4 months last year in the June timeframe for those clicks. Every time there was more than one click, I was saying, "No," and we were clicking again, right? You all know that. It's a one click. As I say, it's a lot of fun. Now, below this we have what we call the first in the world hyper-distributed cloud. Now, this is Charlie. I don't know where Charlie is. I don't see him. But that's you know, Charlie likes talking about money and making a good return on money. Charlie Ergen's drive is, if you can do something once but have more benefits, do it. You go to one site, and you get more than just the installation of the radio and everything, do it. The decision was to do something very unique. We have installed a mini data center in every site. I pause a bit here because this is extraordinary. We have installed an edge data center at every site. Everybody's talking about what is the business model to put a data center or to build an edge of thousands or tens of thousands of sites? Well, I know the business model. Go there to install your radio, and the installation of the data center is free. We had one use case. This is Open RAN. We've put Open RAN on those sites, and now all of a sudden we have a huge asset, the first one in the world, which is a hyper-distributed edge. The first use case is Open RAN. Dave Mayo is going to show you that. That's a rack. It's a bit taller than me. That's a rack. In the rack you have one server. It's an x86 server, you know, so you could buy it for your home. We put the radio software, right? Tons of Mavenir-like receivers there. Remember, we just make them run to the edge. That's where they end up. Look at them, it's empty. Because you can put additional edge servers for other things. More RAN, C-band, CBRS, massive MIMO, millimeter waves or anything else. The beauty of Open RAN is that now I can connect to any radio. If I want to bring Samsung in, yeah, I just download their software, right? Otherwise, I would have to swap the whole stack. I can put any software, but I can also upgrade it. It's a data center. That's another thing that is not well understood. Why is O-RAN so important for the U.S.? Because it's a silicon play. U.S. is very strong at two technologies: silicon and software. O-RAN is a silicon and software play. Now I can put an accelerator from Intel, NVIDIA. I can put an accelerator from, you know, all the silicon vendors, and I can boost and boost my machine. Just like you have this graphics card in your desktop PC or, you know, your kids are asking for that crazy gaming desktop. You just put an accelerator. I do the same. Again, my favorite, I can put an intelligent radio app, extract the data, and making sure that. Today something that is very silly about 4G and 5G, if you're watching a movie in your couch and there is a truck going by and a drone going by, they all have the same distribution of radio. Isn't that stupid? I mean, somebody watching Netflix, somebody driving a truck that's 60 miles an hour and somebody flying. Why is that? Because everything is done for best effort. Whereas the network has the capability to know that the truck is always going 65 or 70 miles an hour because it's on the highway. The drone is always at a high altitude, so has no interference. Why would I send the same algorithm or use the same algorithms? This is what 5G does today. Very silly. With Open RAN, you can separate. Let me talk about edge for a couple seconds. Now I have my distributed edge center, so I can go all the way to the enterprise, so beyond the site with the same technology. That's what Stephen and Dave are doing. They are just doing the same servers, the same routers, but they can put them in different form factors. A big rack, a small rack, or one server, depending on what the enterprise want. It's the same for me. I just put the software in the same way. I can send my wide receivers all the way to the enterprise, right? Remember the guys, the Mavenir running? They can go all the way and stay there. I can put a core in a box. I can put distributed AI. I can put video analytics because it's Kubernetes. It's a cloud, right? Same stuff. I can mix my software with the enterprise, so I can put the video analytics on top of the RAN connected to the enterprise, and they can do whatever they want with that. That's their secret sauce. Let me tell you how this secret sauce is all coming together. Imagine you are a product developer, like she is here, working for an enterprise, and you want to create a special application. Let's talk about fleet management. Actually, this case that I'm going to show you is from a developer company that is working with us and that is beta testing our services to do fleet management. Here you are. The way you think of it is, in the past, you used to have AWS and the device with those little boxes, they are apps. You bring it together. You bring the cloud and 5G together. This is DISH, right? You bring your 5G phone and your cloud together, and you get DISH. DISH is a set of APIs that connect the cloud to the devices, any device, sensors, cars, whatever. You click on the API gateway. I am a developer. Remember that lady I showed you? You click there. You create your service. Now, remember, she's an engineer. You don't have to understand the stuff I'm showing you. She's an engineer. She understand that stuff. How does she do? No- code. She just clicks, clicks, clicks. Each of the round boxes you see is a service, right? She decides I need this, I need that. She clicks, and for example, she will click on the connectivity service. I want to connect my device, my box, so connectivity. Then she clicks on device watch. I want to know the metrics. Do I have battery? No battery? What's the device doing? And then she wants to know, well, is my network live? Do I have high security, low latency? Do I have geo-redundancy? I mean, what are the capabilities of the network? And she connects all that, and she makes a service. The beauty is that when she runs that service, every time the service goes through one of those boxes, it's a transaction for DISH. It's a transaction you put in your models, right? Every time. That's the way we expose our services. That's my last slide. I'm not going to go through it. It's your cheat slide. That's the one where I summarize everything. But what is there? On the top, you have what DISH is doing. First cloud-native O-RAN 5G Standalone. Then you have all the differentiators. Each of the icons represent something competition cannot do. That's the way I selected them. The reason I put them there, my competition cannot do it, and they must have an impact on the business model, either on cost or revenues. The impact is at the bottom. In your model, the trick is that you connect those to the benefits, put an equation, and start out running simulations. Don't ask me to do it. That's not the part I do. But I gave it to you so that you can start from there. That's what I wanted to share with you. Please enjoy the network. Have fun like I have. You can tell that for me, that's like, "Hey, we did it." That's pretty cool. My dream is happening, and I hope you enjoy it too. I'm going now to introduce Dave Mayo. Dave is our EVP of Network Development. Dave has the big role of trying to make it happen, so I'm the storyteller, and he's the doer. Ladies and gentlemen, Dave Mayo. Thanks, Marc. I appreciate it. You know, not only are you the storyteller, but you actually got lunch. When I interviewed with Charlie, we spent some time together, and he said, "Let's go across the way to a Mexican restaurant," and we walked over there, and the place wasn't open, so we just sat outside. I didn't get lunch that day. Sounds like you at least got lunch, Marc, which is great. I got to DISH just over 23 months ago. In fact, I think it was this week I interviewed. When I got here, I was tasked with building a nationwide network in three years. Pretty Herculean task given where I've been in the past and some of the things that I'd done in T-Mobile. You know, it took me 12 years to build a network the size that we're building here, and four pretty significant acquisitions to build a network the size of the network that we're building here. Our network will support both the enterprise channel and the consumer channel that Stephen Bye and Stephen Stokols will talk about after the break. I wanna spend a few minutes today talking about what we're building and why we're building it. I also wanna talk about the approach that we're taking to building it because I think what we're doing is pretty differentiable and pretty unique and will enable us to have a much lower cost structure and a ton of capacity to disrupt. This map's really the kind of the anchor point around development of our network coverage strategy. It's the population density of the U.S. The U.S. has 3 million sq mi in the continental US with an average population density of about 100 pops per sq mi. Obviously, we're starting with the most densely populated areas and building out from there. Why? Generally speaking, higher population density areas cost less to build, right? It's pretty straightforward stuff. When I got here, back in the summer of 2000, we spent really that fall working on the radio designs for the first 70% of the population, which is required by the FCC to be built by mid-2023. We attacked the problem by focusing again on the most densely populated areas as they're the most capital efficient to build. As such, our 2023 plan yields about 600 covered pops per square mile or about 6 times the average of the country. Roaming is an important pillar to our coverage strategy. Our 10-year agreement with AT&T provides DISH with the opportunity to have a significant national footprint right out of the gate, and it will give us the opportunity to, over time, realize our own economics. As such, the AT&T roaming agreement complements our FCC mandate and gives us a nationwide footprint right out of the gate. As we add customers, we plan to build out the entire country, and we'll prioritize areas where it makes the most financial sense first. In addition to our roaming agreement, we're optimistic that the DOJ will rule on the proposed modifications to our agreement with T-Mobile shortly. Here's the map of what we'll launch with a broadband product next month. I'll just say what happens in Vegas is not gonna stay in Vegas. We're gonna take it to the rest of the country, and that's pretty exciting. We're all very excited about that. We're on track to achieve our 20% plan. The key input to the radio designs was a database the guys had built before I actually got here of colocatable sites throughout the country. That database became the basis for the RF designs that the team pulled together, and as a consequence, some markets had fairly high colocation rates. Those markets became the basis for our 2022 build. Colocation is much easier to do than, you know, rooftops and other structures. Notwithstanding the fact that 97% of our 2020 build is colocation, it's an amazing accomplishment for the team to have pulled off. When you think about it in the midst of COVID, all of the associated supply chain issues that we dealt with and localized issues with both permitting and power and transport. Pretty Herculean accomplishment for the team. This slide behind me really ties together what I've talked about in the last couple of maps. The first three bars represent the square miles that we'll cover cumulatively in 2022, 2023, and 2025 to fulfill the FCC mandates. We're being very efficient in deploying capital and covering the most efficient pops first, which is what you wanna do, right? You wanna cover the most efficient things first. In fact, we'll only cover about 15% of the area in the continental U.S. as we achieve that 70% milestone in 2023. By mid-2025, we plan to cover well over 80% of the population of the country to comply with the 75% PEA requirement. That's an FCC requirement that requires us to cover 75% of each PEA in the country. In doing so, though, we'll only cover about a third of the area in the country, just under 1 million of the 3 million sq mi that I mentioned earlier. We're confident that we can accomplish this with the $10 billion in capital that Charlie's been talking about for some time. The remaining population yields only about 15 pops per sq mi, and because of the duration of the AT&T roaming agreement, we'll have lots of time to build out those areas. In addition to the roaming agreements giving the ability for us to have a nationwide network, they also give us some benefits in terms of the ability to defer capital and monthly operating costs associated with venues across the country. These expensive venues and transit centers and convention centers will be able to roam onto AT&T's network. Sure. As we grow our customer base and the customers use their phones and data devices, we'll evaluate and make discrete decisions on which venues to cover over time. Just to give you a sense as to how much money's in these venues or properties. Earlier this year, Light Reading reported that the big three carriers spent a small fortune outfitting SoFi ahead of the Super Bowl. One of the carriers reportedly spent $100 million outfitting the stadium and the surrounding Hollywood Park area with 5G. You know, as the new guys, that's kinda crazy for us to spend that kind of money, particularly when we can roam on another network until we have millions of customers that can use those services. Again, our aim is to leverage all of the assets that we have for the benefit of our customers. Being the last guy to build a network isn't necessarily a bad thing. It's actually a good thing 'cause you can learn from all the mistakes that everybody else has made and not make them again in the future. We're building a greenfield network that's anchored in low-band spectrum. When I compare the effort that I went through, you know, 20 years ago, building a network on a mid-band grid, it's pretty remarkable. In fact, my buddies at T-Mobile and I used to joke, what were we ever thinking building a network on a mid-band grid after we purchased the 700 megahertz frequencies, 10, 12 years ago now? You're all pretty familiar, I'm sure, with the wedding cake analogy. You know, a lot of folks have used that. Neville, my old boss, Neville, used to talk about it all the time. The difference between what we're doing and what they've done is we're building the wedding cake all in the same swath. You know, we're not building mid-band and then coming back and doing low-band or vice versa, which is what AT&T and Verizon did. We're building more than 100 megahertz of mid-band and low-band frequencies all at the same time. In addition to the low and mid-band frequencies, we'll also have a great swath of 3.45 and CBRS frequencies that Charlie talked about earlier to augment capacity, infill, and some of the enterprise opportunities that Stephen Bye talk about after the break. As you're all aware, we entered into agreements with Crown Castle, American Tower, SBA, Vertical Bridge, and others in late 2020 and early 2021. The ATC and Crown agreements were a really important element to what we're doing to the extent that they gave us an ability, an opportunity to lower our per site costs and pay, frankly, a fraction of what the legacy carriers pay. You might ask, "How'd you do that?" The answer is pretty easy. Number one is we had those designs done, so we knew what we needed, and we made commitments based upon what we needed, again, based upon the designs that were done in the summer and the fall of 2020. The designs gave us the confidence to make the commitments. Additionally, our tower top design's pretty straightforward. I mean, we've got one antenna and two radios. You know, if you drive around and start looking at cell sites, you'll see lots of other gear up on the towers. That one antenna and two radios is what we use to drive the 100 megahertz of spectrum. I don't know that anybody else is driving 100 megahertz of spectrum with that limited amount of wind load. You know, wind load's the driver of the pricing structure of the tower companies, and we minimized it. One thing we did to really eliminate the number of visits we had to make to a site was to use technology. At DISH, we fly every site that we consider putting in the network with a drone and take footage of it. You saw some of that footage a minute ago. You might ask, "Why'd you do Why, why'd you do that?" It's really easy. I mean, we have a digital twin of the site that we can use to help us evaluate whether the site meets or doesn't meet our coverage objectives, and most importantly, is whether it's buildable. The twin helps us make those decisions without people going physically to the site. You know, I remember building stuff 15, 20 years ago. We used to have fun runs, and the RF guys and the site development guys and the site acquisition guys and the construction folks would all jump in a minivan, and they'd all drive around for days looking at individual sites to figure out whether the site met their functional needs. That work today is all done in the office. We don't really need to rent minivans and drive all over town. The other thing we do is a closeout package at the end of each build, and that's very valuable, and we believe it'll be very valuable in the future to the extent that it's gonna minimize our having to go back to the site and find out what's there as we have to modify or change things in the future. I can remember every program ever that we did, modernization, LTE build, we had to send people back out to the sites to find out what was really there. We won't have to do that because we've got a great digital twin of the site. I mentioned the standardization of our site designs a few minutes ago, and we have about 550 products that we use to build a cell site. You know, by contrast, we understand that some of our competitors use about 12,000 products to build a cell site. I'm really proud of what we've done from a standardization perspective. Despite my best efforts at my last gig, I was never able to get there, and we're able to get there this time, and it's really great because this gives us a tremendous speed advantage and a cost advantage 'cause everything's standardized. Additionally, we assemble. You've seen the cabinets. We assemble all of our cabinets in Spartanburg, South Carolina, and in Denver. We repurposed a set-top box repair facility and have scalable capacity to well over 1,000 cabinets a month that we build right here in the U.S. As it relates to what happens on the ground, I go back and say, when you think about what I described in terms of the cabinet and the size of the cabinet, there's really three big advantages. First off is it's smaller, so it costs less to build, right? Second is we pay less in ground rents as a consequence of the size. The third thing is a little bit more tricky in that as a consequence of the size of the cabinet, we open ourselves up to having a lot more co-location opportunities. As compounds have gotten more and more crowded, we can shoehorn our gear into places that the other guys can't really shoehorn in. Why is that important? It's important because it gives us the ability to have more sites to select from to get the right grid from an RF perspective. Let's see. When you think about the volume of sites that we're building in a relatively short period of time, what we've talked about really gives us an opportunity to mass produce things. When Boeing reports earnings, what do you think the most important number is? It's their order backlog, right? Everybody, you guys know that. Well, why is order backlog important to Boeing and any other manufacturer? It gives them the ability to plan and reduce cost. What we do at DISH as part of the development process is we deliberately build a backlog of permitted sites that we have a notice to proceed, and that becomes the basis for us awarding construction to general contractors and thereby lowers our unit costs because we can keep GCs busy. We don't have the peaks and the valleys that have been so chronic in all of the other build-outs in the U.S. We think that's really unique, and it's been we've been afforded that because of the volume of work that we have on a market by market basis. As a consequence of that, many of our GCs are pre-building antenna arrays that you saw on the last slide and also cabinets as you see in this slide. I was last summer doing a series of market visits, and I recall going to the hotel room one night and scratching my head and saying, "Something's missing." It was like I couldn't figure it out. I woke up the next morning and said, "Holy smokes, we're not building a switch." You know, building a switch in the legacy networks was the centerpiece. You started there and everything you had to get you had to find the right piece of real estate or the right building. You had to ensure that it had dual entrance power and dual entrance fiber. It was always a pain. We don't have to do that because of what we're doing in the cloud as Marc described earlier. We've radically simplified the physical build-out at the market level as a consequence of putting infrastructure in the cloud. Okay. One of the first things I did when I got to DISH was start to build a leadership team to help. I knew we had to do this on a localized basis, and within seven months I'd hired, in the midst of COVID, 36 market leaders and four regional leaders. You know, I'm super proud of the team that we've built. They're scrappy industry veterans who've all been to this movie before. They've all done it, and it's great. See, I see some laughter in the audience 'cause you know some of those guys. A few weeks ago, two of the teams in the central market came up with the idea that they should make the first ever call between markets. It's like, "Oh, that's novel. Good idea." They videoed the call as a means of celebrating a win, and I wanted to share it with you 'cause I actually think it's pretty cool, and it kind of captures the entrepreneurial nature of the folks in the field and how they feel and how passionate they are about what they're doing. Play video. The mission is to connect people and things, but we're gonna take that to a whole new level. Hey, Ogden. How's it going? Hey, Sioux Falls. We can hear you loud and clear. I don't know about the horse, but it was in Oklahoma. There you go. There you have it. In summary, I'd like to leave you with three messages. We've got a rational plan to build a facilities-based network while fulfilling the FCC obligations for $10 billion. Second is DISH will smartly use our roaming as we build our network and have from day one a national network. And third is DISH will be a low-cost provider with plenty of capacity to disrupt, which I think is pretty cool. Let's take a break. Plan on being back in 15 minutes, and at which time we'll have some time with the riveting Stephen Stokols to talk about retail wireless. Thank you. Riveting. Yes, it worked. Our program will begin in five minutes. Please take your seats. Ladies and gentlemen, the program will begin in just a few minutes. If you haven't already done so, please make your way back into the ballroom and take your seats. Thank you. Ladies and gentlemen, we are about to begin. If you haven't already done so, please make your way back into the ballroom and take your seats. Thank you. This year, Americans will give mobile carriers $200 billion for wireless services. The big three carriers are all pushing the same thing, unlimited and more unlimited. It's all the same, making the options feel anything but unlimited. It doesn't make sense. For all the money we spend every month, 85% of us use less than 10 GB of data. That's over $500 million every single day padding carrier pockets, most of it for data we never use. That's about to change. Please welcome Executive Vice President of Retail Wireless, Stephen Stokols. Back there. Either we lost you in the first half or we got some stragglers. I'll tell you what, anybody coming in late is gonna miss the best part of the show, so that's too bad for them. Let's jump into it, though. Look, Rouanne and Mayo talked a lot about the network, its uniqueness. When I'm through, Stephen Bye is gonna come and talk about a lot of the differentiation that enables in the enterprise space as far as monetization. Before we get to that, I'm gonna talk about the retail space, the consumer wireless space. To be honest with you, in the consumer space, it's a slightly different story. 'Cause consumers, the network is an absolute commodity. Look, don't take my word for it. Go ahead and take a listen to one of the best CEOs in the business. AT&T says they have the best 5G. Verizon says the best 5G. You guys claim the best 5G. I mean, can I please get some clarity? Because those ads are very compelling. Particularly that, you know, put the woman in the store, I'm thinking I should switch. Yeah, you'll never get clarity from those TV commercials. Everybody's the best 5G in the TV commercials. All right. There you heard it, right? Straight from the horse's mouth. That's what the industry has done to itself, right? That's what the wireless space has become. Look, the reality is our network of networks is gonna take that even further. We're gonna be able to offer consumers the best out of three of the four nationwide networks, right? The best of the best experience. I'll add one point here, which I'll come back to in a little bit, which is where you see the DISH red, just remember, our incremental cost to serve a sub is near zero. Keep that in mind as we move forward. Before I get into that, let me talk a little bit about the U.S. m arket and why this gets me excited, all right? U.S. market is ripe for change, and it has been for a little while. Let's just take a look and step back here. It's the third most expensive market in the world, okay? Only two countries are more expensive. One of them is Canada. Everything's more expensive up there. If you look at Asia, you look at Europe, it's 50%-75% lower cost. There's a lot of reasons for that I'll get into, but look what the industry's become. It's basically Americans getting one size, no personalization, one size fits all. It's unlimited plus with a bunch of shit you don't want, right? Unlimited plus plus, which has, like, free tacos and a discount at Little Caesars Pizza or something, right? That's what we've got, okay? What happens is that millions of Americans are paying for data they'll never use, and they'll never get back. Now, look, don't take the wrong message here. I'm not here to slam unlimited plans. Look, unlimited is here to stay. We are long gone with the days of having to watch our data consumption and log into an app and make sure we don't go over. No, no. That's not what I'm. I don't wanna confuse the messenger, right? Americans like the freedom, the flexibility, the power that we get with unlimited plans. The reality is, 25% of us use less than 5 gigs a month, and the majority of us use under 10 gigs a month. I'm not talking about averages, I'm talking about actually medians and means when you look at the distribution. Really, if you think about it, that's truly like we're in Vegas. There's all-you-can-eat buffets all over. It's like going to an all-you-can-eat buffet and grabbing a salad. Actually, this analogy came to me on Mother's Day two days ago. I'm sitting at a Mother's Day buffet with my mom and my kids, right? This is a high-end buffet. It was $60, right? My mom's picking at, like, a fruit bowl for $60. My 11-year-old daughter's got, like, 2 waffles. The kids were only $40, so that's great, right? 2 waffles, so $20 a waffle. Fortunately, I got a 14-year-old son who ate, like, a pound and a half of prime rib and a bunch of ham, so I felt a little better about that. Look, at the end of the day, I was sitting at that brunch thinking about today, and I'm like, "It really is analogous." I actually looked at my daughter's wireless usage. She's 11. Most of her usage is on Wi-Fi. Last month, she used 3.2 gigs. Then I checked my son's phone. Guy's running a business on Instagram selling sports cards. He's got, like, the TikTok stuff going on. Anyway, I looked at his phone. He used 30 gigs last month. I'm paying the same for both of them. There's no personalization on either of them. They're both on unlimited plans. What that really speaks to is a new approach to postpaid is needed. Now, that's the tease, all right? I'm gonna get to what we're talking about in more specifics. Not too many specifics, but we'll get to that. Before we get to that, I wanna step back real quick and talk about a brief summary of Boost, right? Less than 2 years ago, DISH completed the acquisition of Boost, right? In July 2020. That company was losing $hundreds of millions when acquired, and last year was kind of a real operational focus on making sure that company actually generated $hundreds of millions, and successfully we did that, right? We swung the pendulum the other direction. The first half of this year was a much-publicized CDMA migration, right? Got a lot of press. 18-24 months ahead of where we thought we'd have to move and migrate millions of customers. We had to move them off the CDMA network onto a different network. A lot of operational rigor went into that. Now we're sitting here midway through quarter two, and I'm happy to announce that we're pretty much through the hard part of that. There's some long-tail stragglers, but a lot of effort went into that, and we're done. Now, what was a lot less publicized, but probably more important, we've been migrating customers off the TSA, a ten-year-old, antiquated, slow, lack-of-flexibility platform that we can't do anything with, right? That's what Sprint ran Boost on for a decade, and we're stuck with it. Fortunately, we've got a digital operator platform that we've created that's the opposite. We've been moving millions of customers off the TSA onto our new platform. We'll continue to do that through the end of the year. The real impact there is we move from not being able to move in the market. Let me just give you a quick example. Just so you don't think I'm like. This is no exaggeration and nothing against T-Mobile, but if I wanna introduce a new rate plan, let's say I wanna launch a $40-a-month rate plan. Kinda competitive, right? Not disruptive, but competitive. It would take me three months to get that live. I'm planning for, like, the holidays this year already on the TSA. In our new digital operator platform, that's a matter of days or even hours. That's the kind of flexibility, agility, nimbleness that we need to compete, and that's what we're moving to. We don't talk about that migration, but I wanna lay down the foundation 'cause that migration is equally important, especially as we enter the second half of this year and into 2023, where the We move into our next phase, our fourth phase, which is a shift to growth. Not just any growth, but scalable growth, right? Millions and tens of millions of subscribers. Now, let's talk about timing real quick. Like most of you know, timing is 80% of success in business. Charlie kind of alluded to that earlier. Look, GM launched the first electric car in 1996, 20 years before its time. It failed, right? Google Glass launched 10 years ago, around a little less than 10 years ago, probably also 20 years before its time. I think I'll be proven right in the next 10 years on that piece. In the wireless industry, the timing is perfect for a new entrant and innovation, and I'll tell you why. There's a few dynamics. One, you've got the three incumbents who have over 21,000 offline carrier-owned stores, spending billions to support that with very little ability to kind of move and change around that dynamic. Long-term leases, et cetera, right? At the same time, we're coming out of a unique period where we had 10 years of digital acceleration in the last two, right? COVID accelerated the digital acclimation of society by at least five years, if not 10. We've got infrastructure. Things Charlie talked about in his opening are much closer now because of that. Specific to the wireless space, we've all heard of eSIM. It's in its infancy. Not getting a lot of traction right now, but the reality is if you look at 2025, 60% of shipped devices will be SIM-enabled and over 95% of the devices that we're all using, the iconic devices. Now what does that mean really? Well, step back. What that means is if I want to switch from T-Mobile to Verizon or Verizon to AT&T, right, or any of those to DISH, I'll be able to do it from the palm of my hand. As quick as it is to check out on Amazon. I don't need to go drive to a store, park, go in, and deal with some rep for 2 hours. I don't need to wait 3 days or 7 days for a SIM to ship in the mail. I can do it instantaneously. What that does is allow somebody to. Look, I'll be completely blunt. If I was a carrier with 100 million subscribers, that would scare the hell out of me, and it does. That's why they're trying to put a lot of friction in the process, which we're fighting through. If I'm a challenger, that is a massive opportunity because the friction in switching wireless carriers that's existed for decades will not be there in the next few years. It will be completely removed as things, again, move to digital. Now there's other digital trends that have happened, and I'll talk about those in a little bit as well, 'cause we're looking, again, from a timing perspective, to really embrace innovation in a new way. Let's talk about multiple paths to disruption. All right. Pricing disruption. I think we're all familiar with that. I'm gonna actually talk about some global benchmarks over the last decade that have used price as new entrants to come in and get double-digit market share. There's no difference. We're not looking to reinvent that. We're gonna just take the same page out of that playbook and do something similar. Look, as we go from 10% of our traffic on our network later this year to 20% to 30% to 50% to over 80%, and that incremental cost on our network is near zero, you're gonna see us move from competitive pricing to aggressive pricing to disruptive pricing. I can't give you the actual price points, but let me just say there is a difference in those different tiers. When we step back and look at it, and I think you're getting a theme throughout today, starting with what Charlie talked about on the onset, we're not just looking to disrupt on price, because the reality is the wireless market is a commodity because it's a product of its own failures. It has not innovated. There is no product experience. There is no innovations happening in the market from a consumer perspective in decades. We're looking to create a unique, differentiated product experience around the wireless service. Something that leverages Web3 dynamics, decentralization, product innovation that Marc Rouanne talked about. Now look, I'm gonna give you a little tease on what we're talking about. I can't give you the whole playbook, right? I've learned from Charlie. By the way, for those of you who don't know, he's a former expert poker player, and he likes to keep his cards close to his vest. I will add one other note. He's not gonna like this, but I've taken a lot of money from him in sports books, sports betting. I'm a much more savvy sports bettor than Charlie. Not really. Actually, he owes me on that too. But either way, I digress. What I wanna talk about is actually where we're going here, okay? I'm gonna give you a little taste. Without giving you the whole playbook, I'm gonna give you enough where you can get a good sense of what we're talking about, okay? Imagine if there's a wireless carrier that embraced digital acceleration and the Web3 trends to reshape the entire wireless experience. Right? Imagine if you could turn your unused data into a real digital currency, right? All that data that comes and goes and perishes like a rotten tomato that my daughter doesn't use actually had stored value that lasted beyond her plan period. Imagine if you could leverage decentralized financing to get the latest iconic devices with more flexibility, more control for the consumer. Right? Imagine if there was a wireless carrier that actually paid you back. Today, I am teasing what's coming. A new kind of postpaid later this fall will be launched, not just with competitive, compelling, unprecedented customer value, but with unique differentiation in the customer experience. Boost Infinite. Let me just say one other point around Boost Infinite. We're taking a Boost brand, right? Boost, 20 years ago, launched around disruption and doing things different. How it was operated in the last 10 years under Sprint, I'm not gonna comment on, but what I will say is it's the fourth most recognized brand today, and we're gonna leverage that. We're gonna take Boost from the prepaid market to the mass market. We're not gonna spend billions on trying to create a new brand from scratch. We're gonna leverage what we've got and that asset as well. It's gonna be a new kind of postpaid. I'll talk a little more about our capability on that front in a minute, but before I told you I was gonna talk about some global benchmarks, so let me just get there real quick. All right? Most of you are familiar with these, right? Here's 5 examples or case studies from the last decade of new entrants that have come into a market with three or more incumbents, okay? All of them have used price to gain double-digit share. Free in France, 2012 launch, pretty aggressive pricing. I would say disruptive pricing in that market. 17% market share today, all right? Jio, we're all aware of, the most disruptive on the pricing side. They're almost 50% market share today. MásMóvil in Spain, launched in 2018. Today, they're at 26% share, again with pricing as their main differentiator. Iliad, which owns Free, took the same page out of the French playbook and applied it into the Italian market in 2018. Today, they're a double-digit market share. Rakuten, which we talked about earlier, launched in 2019, are at 2.7% market share today, okay? Boost currently is at 2.6% market share, right? With 12% of prepaid, it's focused on prepaid, but we're not starting from zero. We already have share akin to Rakuten, so that's a good starting point. If we go ahead and kinda look at where we're going, right? This is 319 million subs in the U.S. today. This is actually sourced from our friend Walt over at LightShed. Walt, thanks for the data. But again, we're at 8.2 million. Small piece. When we kind of project out to 2025, 2026, we think it's reasonable based on pricing alone to be able to get low double-digit market share. If we do an average job. Look, if we just do what the existing incumbents and benchmarks have done, we think it's reasonable to get 30-40 million subscribers, okay? Now look, I'm here to tell you that's not gonna be what. Look, we're going for above and beyond. I do wanna just sort of table, you know, provide some sort of, for models, et cetera, some sort of benchmarks or some sort of reasonable expectation of around 30-40 million if in fact we kinda take proven playbooks to market. Right? Let's take a look at DISH and what we actually also have. You know, I think Charlie talked a bit about this. Marc talked about this a bit. I'm gonna hammer it home one more time, right? There's a history of disruption, right? There's existing capabilities that we can leverage here, okay? There's award-winning customer service, right? Customer service in the wireless industry has got a bad rap. Well, DISH is J.D. Power number one every year, right? It scales, right? The customer service scales. That's not an issue, right? There's IT, there's infrastructure, there's distribution, existing distribution that we're gonna actually leverage but also grow and expand upon, right? There's 30 million customer relationships that we can cross-sell and up-sell into, take a page out of the cable provider playbook to drive low acquisition costs. There's a bunch of capabilities we've already got that should give us greater confidence in our ability to actually execute on what I'm talking about. At the end of the day, when you kinda step back and look, we're going into the big market. We're gonna fight the battle against the big three. We're gonna do it a different way, with a different cost base, and without hundreds of billions of dollars of revenue to have to defend against. Again, coming back to the Innovator's Dilemma concept that Charlie led with, this is a true Innovator's Dilemma, where competitors will not be able to match unless they completely erode their P&Ls. What I will leave it at is this is a massive opportunity, right? As exciting as this $200 billion consumer market is, what I will add is that the next speaker, Stephen Bye, unfortunately for me, but great for DISH, is even more exciting. Because he's actually looking to disrupt and leverage a unique network to disrupt a $1 trillion market. With that, I'm gonna turn it over to Stephen Bye to talk about the enterprise space and how we plan to disrupt that as well. Good afternoon. I don't know how I can follow that intro, at least in terms of the trillion-dollar market. I'll give you a sense for what I believe in terms of the enterprise opportunity. You know, Charlie talked about private networking and wholesale. We put that under the banner of enterprise, because a lot of enterprise customers, as you look out into the future, look more and more like wholesale customers as well. I do have a bet going with Stephen, you know, in that I do believe that the enterprise market and the revenue for DISH is gonna be much bigger than the consumer opportunity. I've talked about that in the past, and the reasons are very, very simple. The addressable market in itself is much, much bigger. Oftentimes when we talk about the wireless market, people look at what the wireless revenue is today. If you look at the wireless carriers, as Stephen talked about, you know, it's over $200 billion a year. About 40% of that is actually coming from business lines. People look at the, sort of the size of the market and say, "Okay, given it's, you know, sort of number of business lines, post-paid plans, smartphones, 40%, 40% of $200 billion, you know, it's a pretty big market." We think that's undersizing what the overall market opportunity is, because if you look at what the wireless carriers capture today, it's a relatively small share of the total spend within the enterprise market. We believe, especially with the platform that Marc talked about, is that we can capture more than our fair share of that market because it is a much, much bigger market than selling smartphones and just net add post-paid plans. Why do we think that's possible? Because we give our customers, and particularly the CIOs, control over their network. When you look at how we build our network and how we build our platform, the tools that we enable and the APIs that we enable allow our customers and the CIOs specifically within the customers, to be able to control the 5G network as if it is integrated within their own network, and I'm gonna be talking about that. Another way to look at it is enabling sort of this intelligent infrastructure that Charlie talked about as an extension of their business. This is possible because of the platform that Marc talked about. When you look at it, why do businesses care? Why do they wanna do this? Well, it's really about driving their new revenue growth, increasing productivity, driving operational efficiency, and allowing them to innovate as fast as they need to run their business in the way that Marc talked about in his presentation. Businesses and our customers are innovating. We need to give them the tools to be able to innovate on their business, but using our technology and our platform in order to be able to facilitate that. That's where we see the opportunity for DISH as we go forward. Let me talk about sort of the market to start with. You know, this number just blows me away, and this is where the trillion dollar comes from. You know, when you look at it, the annual spending by companies on IT, software, technology and services is $1 trillion a year and growing. Unfortunately, for the wireless industry, they're only capturing a very, very small share of that. When you look at the size of this market, it's almost four times the size of the wireless market. Therefore, we see this opportunity as something that we can capture a share of this because the way in which we're building our network and how we're enabling businesses to be able to take advantage of our network as they invest in technology to grow their business. Unfortunately, when you look at the traditional model, it's all based on number of phones, number of lines, number of post-paid net adds. That doesn't capture what I just talked about there. When you look at it, the traditional networks were also built as consumer networks first. They're built as consumer wireless platforms, and enterprise is almost like a bolt-on. It's almost like put a sticker on the plan, change the plan structure, and let's call it a business plan. There's also, in that number, an undeniable shift of business systems and spending that's going into the cloud. If you look at that, as the data's moving into the cloud, there's a demand for ubiquitous and mobile connectivity. As Charlie talked about, everything is gonna be connected, and that's what opens up the opportunity for DISH as we deploy our network, is how do we facilitate that connectivity of all these endpoints, all of these devices, and all of these applications to and from the cloud and the edge? That's where I think the opportunity really stands for us as a company. You can see the shift in the spending moving, and that's where the puck is going, and that's where we're building our network and our platform to be able to capture a share of that shift as it takes place, but also the growth. That's why we built the next generation platform. It would have been very easy for us, you know, Marc talked about it. We could have sat around and said, "Yeah, let's go build the same network the other three guys have, and let's go fight for a market that they have today." That doesn't sound like fun and doesn't sound like a good investment. It's much better for us to go build a platform for where the puck is going, where the money's going, where the industry is going, and how do we position ourselves to capture a share of that value as it is created. That's what we're doing, and that's why we built the infrastructure we did. It's also not just about building a cloud-native network that's open. Another important investment we've made that we haven't really talked a lot about is the OSS/BSS platform. The systems that sit on top of the network facilitate the access to those network functions and facilitate the access to that infrastructure. The team has built a next generation OSS/BSS platform that actually sits on top of this infrastructure. That's really important for someone like me and our customers, is how do we expose all of that through the API gateway, which I'm gonna talk about, to enable them to absorb and take advantage of the resources that we're making available with our infrastructure. According to a survey by Deloitte recently, more than 75% of networking executives believe that 5G is gonna be a critical part of their business in the next three years. It's not just us talking about it's the enterprises. I talk to customers every week about where they're going and what their plans are, and we take that into consideration as we're building our network. I'd also like to talk about Industry 4.0. You know, we're the fourth facilities-based national wireless service provider, and we believe that with the architecture that we're deploying and the network we're building, it's really gonna help unlock the promise of 4.0. Industry 4.0 has actually been talked about for quite some time, and I say it's, you know, we're helping to unlock that because I don't know that the promise has been fully realized yet. Because the infrastructure and the networks out there today don't enable enterprises to take full advantage of the promise that this platform enables. For those of you who are unfamiliar with sort of the different stages, the first industrial revolution really occurred with the adoption of steam engines and water power, really the introduction of machines back in the late 1700s. The second industrial revolution was really around electricity, railway, telegraph, and really modern mass production. Think of Taylor's theory of manufacturing as well as Ford's innovation around the assembly line. The third industrial revolution, which is really still having an impact today, was really with the development of the microchip. That's still having an impact on businesses and, you know, you continue to look at Moore's Law and there's some debate as to whether that continues. You know, clearly we're if you look at the capability that's coming with computing and the ongoing development in that space, I don't think it's deniable that that's continuing to have an impact on our industry and other industries. However, the fourth industrial revolution is underway, but I think the momentum is gonna pick up in the coming years. That's all about unlocking the value of data through connectivity with decentralized decision-making, with artificial intelligence and cognitive computing. That's where I think there's a really interesting intersection for where Industry 4.0 is going and the platform that we're building today and how we expose that platform to allow our customers to take advantage of that to unlock the promise for their business. Why does this all matter? Businesses are looking for their competitive advantage. They're trying to develop a competitive advantage to drive new revenue, to increase their productivity, to drive operating efficiency into their business, to improve their customer experiences, and to create new enterprise value for that business. What we're about is how do we expose our network to give them the tools to achieve their business outcomes. If we're successful in doing that, it'll obviously lead to their success, and we'll be able to grow our business as they grow their business. According to the NPD Group last year, really, I should say. 61% of companies believe that Industry 4.0 is a competitive differentiator today, and 37% of companies believe it will be in the short term. We think that this is a shift that's happening. It's already underway, but I think it's gonna accelerate and we're gonna do what we can to help accelerate that process and unlock that value. If I look at networks. You know, the potential of any network or business value within a network is really a function of the data and the connectivity between those data elements. There's an incredible growth in the number of connected devices, and Charlie touched on this in his presentation. That forecasted growth is between 15%-30% per year, depending on the source that you look at. That's clearly much faster than smartphone growth in the U.S. The volume of that data is growing both at the edge as well as within the core and within the capabilities of every device to generate data. When you look at that, with each device connected to a network, what you're finding is that the amount of network traffic is doubling every year, and that continues to grow. Now the ability to process that data becomes really, really important. If you look at the exponential growth in that data, it's how do you process that data? There's a lot of data that doesn't really impact the decisions that you might otherwise make. Processing that data, converting that into information is absolutely critical. Once the data is processed, either at the edge or the core or within the cloud, decisions can be made in response to the information that's contained within that data. As we look at what we can do to support that decentralized processing of this data in you know leading to faster decisions, better decisions that a business can make about their operating margins and their operating efficiency, as well as connecting all of those devices, this is where we believe that private 5G networks have a very, very important role to play. That's only one aspect of the opportunity that we see and one that I'm gonna talk about. When we look at private 5G networks, it's about bringing a solution to an industry problem. This isn't about a technology looking for a problem to solve. This is more about we see the problem, we understand what that is, and how do we bring a solution to solve that issue and that problem, but also enable our customers to be able to leverage that as if it is an extension of their network. If you look at sort of private 5G networks, you know, one thing to look at is the number of connected devices today. What I find interesting is when I look at this, is only 12% of connected devices are actually over cellular networks today. If you look at that, here in the U.S., there's over 1 billion connected devices, so only a small portion of that is actually connected to a cellular network. The vast majority of those are actually connected through short range or unlicensed or other technologies, Wi-Fi, within the enterprise or within the business. The bulk of the opportunity really is in that sort of local area network, and we think that that's where private 5G has an opportunity. This growth rate, as I said earlier, is actually between 15% and 30% per year, and this number is gonna continue to grow. We think there's a real opportunity for us with these networks that we're deploying to capture a share of the 75% as in addition to the 12%. Then when you look at sort of the wide area, it speaks to an opportunity even around satellite. Charlie talked a little bit about satellite, but there's a lot of areas of this country that do not have very good coverage or connectivity. Satellite still has a very important role to play, especially in remote areas and some of the more interesting use cases and applications that we see. I'm gonna touch on some of the use cases that we're working on, but satellite actually is a very important part of the solution that we're putting forward to our enterprise customers. What's interesting about the 75%, it's really around using unlicensed spectrum. You know, what's interesting there is it's okay in terms of best effort. It meets the needs of the business today. When you start talking about mission-critical industrial capability, the security of the endpoints, the ability to be able to manage those endpoints, that's where a licensed solution and a licensed spectrum solution is becoming much more appealing in those environments where there's a much more business-critical function that needs to be performed within those networks. A recent Deloitte survey of networking executives highlights that there's really three areas that are really important. One I've already touched on, which is security. The security of these networks is absolutely paramount. The scalability of those networks, so we have to have the ability to scale them economically and cost-effectively, especially when you look at sort of the growth curve and number of connected devices. Interoperability is very, very important as well. We're not gonna go in and replace every modem and every device and every endpoint, but there's also a role for integration of those legacy technologies into these platforms as we go forward. That's actually part of the solution that we bring to the market with our private 5G offering as well. The other thing which is actually interesting in the approach that we're taking, and I'm gonna touch on this a little bit more, is we take what we call sort of an enterprise out approach. By that I mean is we're building a network that's really built for the enterprise customer. It's built for the CIO. It allows them to control the network. It gives them the ability to extend the services to their customers and their employees from their cloud. Rather than sort of a carrier in over-t he-t op, and let us take that network and that data and bring it into our network, it's very much about us building a network into their environment, allowing them to integrate that platform into their systems, and allowing them to control the extension of those services out beyond that environment. That's a very, very important distinction when you look at what we're doing relative to our competitors in this market space as well. Speaking of our competitors, AT&T has forecast this, and many of you have seen this in their presentation, but they're saying that, you know, connected factories alone in 2026 is about a $20 billion market. Verizon is saying that, you know, by 2025, the private 5G market with MEC, with services, they believe that their addressable market is about $30 billion. We actually believe these estimates are somewhat conservative. It's very much a traditional approach to predicting what the market is and sizing what the market looks like from an organic perspective as you go forward. When we look at the total market, and we look at sort of the spend that's going on and what businesses are investing in today in terms of software and technology, we believe that this market can be much, much bigger than that. In fact, there's another forecast that Omdia put out which looks at the enterprise edge services market in 2026 as being greater than $80 billion. Now, you know, one of the challenges, and you guys deal with this all the time, is, okay, are we comparing apples to apples? Right now, there's not a lot of consensus around how you size different parts of this market. I would contend that as we build this platform, there are revenue streams that we're able to take advantage of or spending that comes in from the enterprise that allows us to be able to capture a greater share of what that spend is going forward with the infrastructure that we're putting in place. All of this being said, the pitch to close sales process with any enterprise customer is longer. It takes time. What's really good about this space, and you guys know this in all your models, the churn is very, very low. The margins are attractive. They're generally CapEx light, and if you are making the investment from a CapEx perspective, they're success-based investments. That's why we see this market as very attractive for us, and that's why we built the platform we built today. I often get asked about a sales force. "Hey, Stephen, you know, you're running this business. Go recruit every sales guy you can in the country because that's what it's gonna take to go get these customers." That's what our competitors do. We're not building a national direct sales force. There are a lot of companies that have been very successful in this enterprise space without having to go and just staff up and build these national direct sales forces. There are already sales forces out there. There are already partners out there that are talking to our customers every day, and we're actually working very closely with a number of Actually, I shouldn't say a number. A lot of systems integrators who are working with our customers, who are working with us to integrate our platform into their systems. We're also working with channel partners, and we're also working with our strategic technology partners, many of whom are actually partners on our network. I'm just gonna name a couple, and that's Cisco and Dell, because we've already made announcements about deals that we're doing with them, with other customers. A lot of the technology partners we have within the core of the network that Marc talked about are our partners as we take our products and our services and our platform to their markets. You can imagine, as you look down that list, a lot of those software partners that we have actually have enterprise relationships, and those customers are looking at how they integrate 5G and our platform into their business. It's not just about the market. What is our advantage? What do we bring that's different, aside from the approach and the platform we're building? You know, Dave talked about the layered cake or really the wedding cake or the layered approach that we take to how we use spectrum in the macro network. Many of you guys know that I'm a former Sprint guy, so we talked about the layered cake all the time back when I was there. This layered cake's been around a long time. We take a similar approach in the enterprise, although think of this as a 4-layered cake, and there's 4 layers to the spectrum and the way we look at this network as we deploy within the enterprise space. The first layer is unlicensed spectrum, and that's Wi-Fi. It's dominant, it's out there, it's very good, and it serves a business need. What's interesting about Wi-Fi, and what's actually very attractive to it, if I'm the CEO of a company or a CTO or whatever, I control it. It's my network, it's my data, it's my infrastructure, and I can manage that. What's interesting in the approach that we're taking is we allow that enterprise to be able to access CBRS and other licensed spectrum and integrate it into their business and have control over the assets and the network and the traffic within that network using licensed spectrum. That's what's different, and I'm gonna explain that a little bit more in a little bit more detail later. What's important here is CBRS, and Charlie touched on this. We're the only operator that has nationwide PALs. For an enterprise customer that's doing business anywhere in the country, regardless of whether it's in remote areas, whether it's in urban areas, regardless of where you are in the geography of the country, we are able to make PALs available. We also have spectrum in the C-band or the 3.45 gigahertz band, and that happens to be adjacent. That wasn't an accident. That was very deliberate because when you go into an enterprise, we can deploy a single radio that has the ability to do CBRS and exercise all the way up and down the band within CBRS based on the chart that, you know, Charlie shared earlier. As that customer requires use of licensed spectrum for more secure, more reliable mission-critical applications, they're able to take advantage of that C-band spectrum within the same radio and within the same infrastructure that's deployed within the enterprise. It's a huge strategic advantage. Then on top of that, and this is something that a lot of people don't talk about, but the low-band spectrum in the 600 MHz is particularly valuable in certain applications. I'm gonna touch on some of these applications later, but it's really the combination of these different spectrum assets together that are deployed in such a way that the enterprise customer has control over their network and their assets and their resources and being able to access our network functions through the cloud that actually makes this product and this service very, very different from what our competitors can offer anywhere in the market. The other thing which I want to make a point about is, you know, Wi-Fi and 5G are complementary. You know, one is not a complete substitute for the other. They're different technologies. They serve different business needs within the enterprise. Wi-Fi makes sense for a lot of different use cases. When you're starting to talk about mission-critical, secure, highly reliable, high-mobility applications that require that reliable access anywhere within the operation, then licensed spectrum is really the only option, and a combination of that licensed spectrum is critical. It's also important, sometimes I think we get lost in the industry on this, is 5G is actually intrinsically more secure than 4G, 3G certainly, and Wi-Fi. That's a really important consideration. In some of the use cases and some of the customers we're working with, they will not run their services over 4G. They have to be over 5G because the intrinsic security that exists within 5G. That's very, very important. It's important because the security goes all the way down to the radio interface. You can imagine kind of where that becomes very important for certain customers. The other thing that I like to talk about is sort of how we look at customer-defined networks. You know, there's a sort of a traditional approach that carriers take when they're selling services, and I touched on this earlier. It's really taking consumer plans, slapping on a sticker, calling it an enterprise plan, and giving it a different rate plan. That's generally how most enterprise sales are done. But what's also interesting, and Marc touched on this as well, is when you start looking at, you know, what's really going on underneath that. The carriers control the traffic policy and the priority. When you read the fine print, the carriers are actually shaping the traffic based on their own internal network management policies. If you consider the quality of service, as Marc said, it's only best effort. If you're trying to run enterprise applications, mission-critical applications, you're looking for certain latency criteria, best effort doesn't really kinda cut it. It's worse than that. If you read the fine print, and you all have it, all the carriers do the same thing. If the network is under congestion or under certain load, they have the ability to modify and adjust the prioritization of that traffic. you know, you'll find it happening. It happens all the time. You'll get deprioritized, then you'll see the speeds up and down, and they'll move around, and latency varies. that's the carriers protecting their network from their customers, and we just don't think that model works when you go into the enterprise space. there's simply no concept of an SLA. The security within those networks in the traditional model is also controlled by the carrier. The SIM cards, you know, Stephen talked about the SIM, eSIM, and the eSIM capability. There's certainly a lot of technical capability there, but there's a lot of friction in that process, and the friction is not accidental. The SIM cards and the numbers and the way they're allocated and the IMSIs and how they're distributed are controlled and managed by the traditional carriers. Frankly, most of the devices are still locked to the carrier networks unless you actually deliberately go out of your way to get the devices unlocked. Even in the enterprise space, it feels a lot like a consumer product, just with a little coat of paint that's slapped on the outside. Rather than sort of a carrier-controlled network and services, what we're building, and Marc talked about this, is really a platform that enables our customers to control those aspects of the service. Our platform is beyond just the cloud, it's also the OSS/BSS layer, because that's a really important aspect when you start looking at the network functions. It allows our customers to define and control the traffic policy, the quality of service, the security, they can control that, the CIO can control that, the SIM cards, the numbers, and even the devices. The CIO or the, you know, systems integrator who's managing that network on behalf of the business can actually control those aspects of the service offering within that. That's why we call what we're building a customer-defined network as opposed to a carrier-defined network, which is what's available today in the industry. As Marc talked about, the only way you can do this is with the architecture that we've built. It's the only way you can do it, and that is with a cloud-native 5G open network with the APIs that we have available to expose the network functions to allow them to be able to control those functions as if they're another function that exists within that network. Why is all of this important? At the end of the day, it's about our customers creating enterprise value for their business, driving new revenue streams, enabling them to capture new revenue streams, serving their customers, and increasing their operating efficiency. As I said earlier, as they're successful, we'll be successful. Let's dig down a little bit into the services model. When I look at sort of the private 5G network, you know, it's not sort of just a network that we're building. There are services within this model that expose network functions, and each of these can be integrated with through the systems by the systems integrator into the business applications, the enterprise systems, and even their automation tools. Our focus has been enabling the enterprise to integrate this intelligent infrastructure into their business. We think of this as sort of the CIO's dream. It's really a model in which is more familiar to the IT world, where the resources, the costs, and the assets can be pre-managed, the performance can be predictable, it's controllable, and at the end of the day, they can track and move the assets, including their data, where they choose and how they choose to do so, between their cloud, our cloud, or any other combination of cloud providers. This allows the business to focus on what they need to do. Think of this as the 5G network as an extension of their business, where the connectivity becomes kind of a nervous system of their systems. It's not our network as much as it is their network, and they have the control over that network, and that's really key for a CIO going forward. I highlighted this earlier, but, you know, one of the attractive things about Wi-Fi if you're a CIO is you control it, but the wireline networks are the same way. They've been that way for a long time. You can get SLAs on fiber, you can control and build your own infrastructure, but that is not available today with 4G and the Non-Standalone 5G networks, as Marc Rouanne talked about. Those networks are controlled by the carriers. They're managed by the carriers, and that level of control and that level of service exposure is just not there. Now, we enable that through this API gateway, and Marc Rouanne touched on it a little bit. He drilled down on some of the functions that we expose through that API gateway, but this is sort of a services menu. When you look at the services menu, it could be either our cloud functions or it could be cloud, a cloud platform that the enterprise has. It could be their devices or it could be our devices. Think of this as sort of what we're providing is the glue that brings that together between the device and the cloud. Each of these functions, and this is a non-exhaustive list, as you can imagine, is basically a set of resources that the enterprise can access through the API gateway. You can take these services together as a bundle or they can be taken à la carte. You can choose to have us provide that service, or it can be provided by somebody else. What's interesting in this, and this is the challenge, I think, building a financial model, is what does this really look like? It's easy to model smartphones, lines, and ARPU, and churn. That's easy. This model is about a transaction. It's a number of transactions. It's a rate card. When you look at the rate card that goes with this, it looks far, far more like a public cloud provider, much more like an IT or a systems rate card that you might otherwise get from a managed services provider. That's what that looks like. But the beauty of this platform is it isn't a rigid set of APIs. This gateway and the platform we have, we can actually create new APIs, update APIs, and introduce new APIs as we expose new network functions. We also have the capability with this API gateway, where our customers can actually define their own APIs, and each of those becomes a transaction that actually runs through our business. That's what makes it very difficult to model going forward. I don't envy your position on this one, but obviously, we look at it. We look at the total spend within the enterprise. We look at what our share is, what value we bring to the enterprise, and we look at how we price this in order to capture our share of that value as we go forward. Let me go to the next one because I get a lot of questions around this. What does a private 5G revenue model look like when you take all of that into account? At its basic level, and this is just basic, the easiest thing we could do is spectrum leasing. You know, think of this as an agreement where we make a PAL available to the enterprise. We restrict the use of that PAL or that spectrum within that geographic area, and the customers are deploying their own system, you know, their own CBRS. You know, it could be a combination of CBRS Wi-Fi within that environment, and this is really a customer-managed private network. It's their infrastructure. It's CapEx light. They're simply leasing the spectrum and using the spectrum. When we do this, what's interesting is we end up actually providing professional services because when you're trying to design a network, it takes a certain degree of skill in order to optimize the cost of that network using the spectrum and the different spectrum pieces. We do end up doing some RF engineering optimization and even management of that private network within the customer premise. It's really the customers making the investment. It's CapEx light, obviously very, very high margin. There's another layer above that which we consider as private 5G- as- a- service. In this model, we're really deploying the end-to-end system, and it's a managed service. Even though it's a managed service, as I talked about earlier, it's really enabling control of this system through the APIs that we make available. We expose the network assets and the resources into the business to allow them to manage it. Think of this as other managed Wi-Fi solutions that go into enterprise. It's the same kind of concept and the same kind of model. We often work with the systems integrator of choice with the business. What's interesting is, and this is why I say we work with quite a few different systems integrators, there isn't one systems integrator that manages a lot of different accounts. Different businesses have a different preferred systems integrator that they choose to work with. Some of the SIs we're working with in some of these verticals, nobody's even heard of. They're very industry specialized. They understand that business. They work very well within that business, and we work to integrate this network into their business applications with those systems integrators. That's really important because the network, as I keep emphasizing, is an extension of their network, and they treat it as if it's any other part of their asset base as we go forward. The nice thing about that is even these private 5G networks as a service are still success-based investments. They're very, very high margin, as you can imagine, because it's a managed service and a managed solution. There's also another layer which we've gone on top, and this includes sort of the extension with network slicing. With respect to this, consider this as sort of private 5G- as- a- service plus. This is where we take sort of the enterprise out model, and we extend those services across a wide area. We can extend that through the voice, the data, whatever services are required for the enterprise. We can do this with end-to-end slices. You know, Marc and I talk a lot about sort of what we can do with this network, and he touched on it a little bit with the drones and the trucking and the video. You know, our competitors can't do this. They talk about it. They think they can do it. They can slap some paint on it and call it whatever they want. The ability to deliver an SLA all the way down through the radio interface to applications, to different services for the enterprises, can only be done with the network that we built. That's really, really important. It's really about taking the enterprise business and extending that. They control the services, they control the applications, they control the security, and they extend that to their customers and their employees, and they treat our network almost like a virtual private national network for their customers and their employees as they go forward. That is really, really exciting when you get to that layer in terms of the service set and capability. Today, obviously, we're limited by the footprint that we're building. We continue to expand that, as Dave talked about in his presentation. You know, we're focusing on where the investment makes the most sense, and then we're looking at building out our footprint further and further as we go. What's also important is, as we do this, it's how do we, you know, maybe perhaps step down, but we have to also provide ubiquity of coverage elsewhere. That's where some of the other solutions we're working on actually become very, very important. While I've shown three here, you can imagine that there's actually a continuum of capabilities here. Even though I've focused on three different models, you can imagine there's sort of grades of or shades of gray between them, and there's different SLAs that we can put in place in each of these models as we go forward. This isn't just theory. We're actually actively working on a number of projects with each of these models with our partners in different industry verticals today. Let me start with one, because at the end of the day, talk's cheap, and we like to walk the talk. This is just one example where we're doing a neutral host system with Cisco, Internet2, and Duke University. This is something we announced recently. What's interesting about this is it's a neutral host network using CBRS spectrum. It's being deployed on the campus, and it's controlled by the university. The purpose of this network, which is interesting, is it's a private network, but the objective of the network is to improve the quality of their coverage for the students as well as the staff within the campus. You would think each of the carriers would be motivated to build out the coverage and the quality of coverage and provide the capacity that was needed, given the population within that environment. The university is frustrated by that and looking to build their own private network to be able to facilitate that. We're working with them on that. We're obviously working with them on the spectrum and some other services that we're working with them on, but it's how do we build that platform and integrate it with as many public networks as possible. This is a very good example of a CapEx-light solution in partnership with someone who has a very vested interest in improving the quality of the capacity of their students, their population, who they see as their customers, as well as the staff on that campus. An alternative approach would have been or could be that each carrier goes in and deploys their own network of small cells, maybe a carrier-controlled DAS or a neutral host DAS. These are very expensive solutions. They're difficult to upgrade, and they're controlled by the carriers, not the university. The university has control over this network. What's interesting is, in the neutral host model, they can deploy this infrastructure, but because of CBRS and the capabilities of certain devices, they can actually offer services to their student population as well as their staff within that environment. They can deliver campus-based services that are restricted to the campus. They can also, through devices that have the capability, enable a second line through the eSIM. That may be a second line that's available or a number that's only available to students and staff while they're on the campus. They obviously, with this private infrastructure, because it is somewhat, you know, using licensed spectrum, they can actually move some of the more mission-critical applications and services onto that spectrum. Think of it as security sensors, cameras and the like, where they need that sort of reliability of connectivity and that predictability of coverage. The other thing which is important, and I probably should have touched on this as I talked about the different layer cake, the beauty of licensed spectrum is much higher power. When you start building these networks with a combination of unlicensed and licensed spectrum, you can actually build a much more cost-effective network that lowers the cost per gigabyte because of the breadth of the spectrum assets that you have and the way in which you deploy these networks. The university is off and working on this, and it's a very exciting initiative to be part of, but it's also a real-world use case. The other thing that gets talked about, and Charlie touched on this as well, is smart city. There's a lot of talk, and people have talked about smart city applications for years. In fact, in a prior life in a different company, we did a big smart city deployment in a city. The challenge is who pays for it. What's interesting is a lot of the technology and the solutions you can take as a concept, and the university can deploy that as a smart campus solution. A lot of the concepts that come in from a smart city can actually be deployed in an environment, like the university, and they can take advantage of that technology and the capabilities within that environment. There's obviously no question who pays for that. The other thing that's interesting is, with this solution is it's a campus out, so they can deliver the services within the campus to their students, their staff, and then those services can be extended through our network, depending on where those students and that campus staff may go or the staff may go. That again, I contrast that with it's a campus out solution. It's controlled by the university. It's not a carrier and over-the-top kind of product. Let me touch on another example. This one is one where we're providing a more complete solution. You could not find two more disparate use cases. This is one that we're working on very closely with Hughes, working with Cisco, Dell, JMA, and some other technology partners. This is a really interesting project. This is an integrated satellite and private terrestrial 5G solution. It is 5G, it's O-RAN, it's cloud-native. It's everything that we've talked about. It's being built for Whidbey Island, for the Department of Defense and the U.S. Navy. You can imagine security is the most important requirement. What they wanna do, as a complete contrast to the university, is they want to reduce or eliminate any connection to any public network. What they're trying to do is reduce the surface area and the perimeter of potential threats to any of the systems that they own and control and operate within that environment. The goal is to keep all the data within their systems, but at the same time, what they're doing is trying to take advantage of commercial platforms where possible. You know, obviously, the DoD and others are interested in driving down cost and increasing the efficiency of their operations. They want to be able to take advantage of commercial systems where they can, but they're not willing to compromise on the security. This is one example where nothing but 5G can even stand up to being able to support this. If you look at sort of the use cases here, you know, and I'll just give you sort of a rundown of some of the more interesting ones. It's really about moving data around and to and from the aircraft, the sensors, the devices throughout the airfield. You can imagine on the flight line connectivity, it's how do we bring all the data off the aircraft as they're coming in on the flight line. What they're trying to do is increase the turnaround time and keep the amount of time the aircraft is on the ground to an absolute minimum. How do you speed up the refueling operations? How do you speed up the maintenance? How do you keep the planes in the air much, much longer and the time on the ground much lower? They're all about taking all that data in, processing it as quickly as they can on the edge, doing the digital inspections, figuring out what maintenance needs to be done, what's the most critical. They've got connected maintainers using AR systems. They're looking at refueling operations, proximity detection, exclusion area monitoring, because there's certain areas that you don't need people around as the aircraft is moving around. If you wanna increase the efficiency and the processing of that aircraft while it's on the ground, you want to be able to monitor and manage that. There's a lot of security and monitoring, obviously, around the Whidbey Island base. This is another interesting use case that we're working on, which is the base. All of the systems are owned and controlled and operated and managed by the U.S. Navy. They also obviously have the need for mobility and the need for access anywhere. This is another example of sort of I use my enterprise out, my campus out. This is a base out. This is them controlling and managing their applications, their data, where it goes, how it's processed, and how do they extend that and make that available elsewhere. Obviously, that's a really interesting use case and something that we're working very closely on with them. These are just two examples. Charlie went through a bunch of them, and I'm gonna touch on a couple more just to to drill into a little bit detail. I've already talked about the military. The next one I'm gonna touch on is mining. You know, mining is an interesting area. In fact, when I was an engineering student back in Australia, I spent my summers actually working in the mining industry to put myself through college. Mining is kind of a personal favorite topic of mine. I love the industry. I love what it does. Obviously, had experience in that industry. What's interesting about that industry is back when I worked in it, we were doing remote control. We had remote control systems. In fact, we had a Motorola remote control system to managing some of the equipment, the heavy machinery that we had within the mine. The ROI is very, very clear in the mining industry when you start looking at this. Autonomous and remote control of mining operations is happening, and we're working with customers in this space right now. What's really important is, and it's an absolute prerequisite to have reliable and highly secure wireless connectivity. In the past, companies have looked at solutions where they've tried to use Wi-Fi and unlicensed spectrum, and this has been a real challenge. It's expensive to maintain a highly reliable, unlicensed network in a mining environment because of the deployment complexity. If you can imagine, you know, with unlicensed, you know, spectrum, you're dealing with very short range, you're dealing with a lot of access points. They're wired, they're connected, you're having to move them around, you're having to power them. Then you also have an issue with mobility as you're moving the vehicles between each of the access points as well. The reliability and the dependability of that connectivity is really, really tough in an environment that is constantly changing. The other interesting thing about the mining operations is that you've got this ore body that's constantly changing. It's changing its shape, whether you're in sort of an, you know, open-cut mining operation or even underground. You've got a lot of different effects that are going on with the RF signal in an underground operation as well. It's a very, very complex environment. If you really wanna have a remote control operation or remote-controlled or autonomous mining operation, the quality of this network is absolutely essential. This complex problem really is only addressed when you have a hybrid solution with using different licensed spectrum in different frequency bands. The systems can and are being deployed today in open cut and also underground operations. I touched on satellite earlier as well. You know, satellite and terrestrial connectivity is critical when you start looking at the reliability and mission-critical services that are being delivered in these operations. The interesting thing is you might think, "Well, it's a mining operation. I can just use satellite." The interesting thing with the satellite is, even in an open-cut operation, it depends on what the look angle is. Depending on where you are in the pit, the look angle doesn't work. Depending on where the mining system or mining operation is, you know, satellite isn't necessarily the right solution, but it's a good complement with a terrestrial solution. If you're looking at trying to propagate and get coverage and reliability and multiple access points overlapping to ensure that there's never a point in time where that vehicle is not connected or that system is not connected to the overall operations is very, very key. As much as we talk about the heavy equipment, there's also all the asset tracking, the environmental monitoring, the proximity detection for the safety of the mining employees that are in the mine. Then you've also got exclusion zones that are very, very important in a mining operation as well, and they're dynamic and they change. When you look at the mining industry, there's a very, very clear return on investment. These are some of the more interesting use cases that we're working on. One, they're driving higher revenue, more efficient yield out of the mining operation and much higher operating efficiency. The next one on agriculture, and again, I'll go back to my past. I grew up in farming. When I was a kid in Australia, we actually had a farm, so this is one I'm also personally passionate about as well. I was actually involved in a project some time ago, looking at how do we use smart irrigation to reduce the water consumption that's required in order to achieve the same effective yield per acre. In this case, we looked at soybean and corn. When you do this and it's really, you know, it's not rocket science at all. It's really taking very simple technology, simple control, managing the irrigation system, the valves, the pumps, and the moisture sensors that are distributed throughout the field and looking at how do you optimize the irrigation to minimize the water consumption while maximizing the growth rate and the yield per acre. This is one where, you know, I was part of and we saw a 30%-50% reduction in the water consumption and still achieve the same effective yield per acre. That's where I personally became very convinced that Industry 4.0 is not just a term. It's just not a term. It's more than just a term. It really can have a very, very big impact in terms of the differentiation, the cost and the efficiency of a business. That was already an industrial farming operation, which was already very, very efficient. To be able to push that amount of efficiency out of the water use was incredible. In a recent survey by CTIA, 79% of agricultural professionals say that they would use 5G if it was available to improve agricultural efficiency. The demand is there, the potential is there, and the ROI is significant. They're not the only use cases we're working on. These are a number of the other verticals we're actively working on. Obviously, education because of what's happened over the last couple of years is an important segment. Hospitality is another area, and those of you who are familiar with the DISH business, we already have a lot of relationships with hotels and different venues and resorts where we're actually providing the video services. We're working with our partners in that space on how do we improve the guest experience and the hotel experience for those guests, as we go beyond the video and offer other services within that environment. Managing the guest journey and the customer experience is really, really important. That's where you look at these hybrid networks and private 5G networks can have a role. Marc already touched on some work that we're doing in the fleet management space. That's obviously an important area in terms of asset management and asset utilization for companies. Again, the ROI is very, very clear. There's sort of indisputable value there. Healthcare is another area. We're actually actively working on some oil and gas projects as well. Obviously, you know, a lot of focus on that when you look at energy prices and what efficiency you can drive into that system in order to increase the yield per well. You know, smart factories. There's obviously, you know, other people have talked about this, but there's clearly a lot of activity in this space today, not just here in the U.S., but in other countries where, you know, people are looking at how to take advantage of this technology to improve the ability and the efficiency of those factories as it goes forward. Even AT&T talked about the size of that market being $20 billion in 2026. This is a non-exhaustive list of opportunities that we're working on. These are just some of the more active areas that we're in right now in the verticals. I would say that each one of these, you know, obviously are very, very massive industries, and they have a lot of potential. I often get asked, "Well, aren't you guys gonna just focus on one? I mean, it'd be easy if you just said, 'Oh, I'm only gonna focus on one.'" The demand is coming from all, and the interest is there. What's interesting is they're not interested in a carrier coming in and taking control of their operation and running their network for them in terms of just building a carrier and over-the-top. It's about how can they take advantage of this technology, use our platform, integrate the assets and the capabilities we have through the API gateway to make their business more efficient and make their business run at a higher profitability or deliver a better customer experience that improves their enterprise value. The ROI for the business is very clear across each of these verticals. We're working with each of them, and we think the opportunity is very, very significant for DISH. Let me summarize. Now, here's the money chart. Everybody asks me, how big is this opportunity? You know, I've talked about it. It's massive. It's hard to get our hands around exactly kind of how big it is and where it fits. At least for us, what we see now is that, you know, clearly for private 5G- as- a- service, by 2025, it's comfortably $30 billion. I actually think this is a very, very conservative estimate. That number is growing, and I think it's gonna grow over time as we get a better handle on how we size kind of the opportunity beyond sort of private 5G- as- a- service. And I should say, this is private 5G- as- a- service. There are other enterprise revenue streams that sit in on top of this as we go forward. You know, what do we think our potential is? Given our platform and our competitive advantage, we believe we can take north of 20% share in this space. I see the 20% and even more than 20% as sort of the long-term sustainable market share position. That is really, you know, to me, again, somewhat conservative estimate, given where we are and the first-mover advantage we have. The reason we have this competitive advantage is we're the only provider in this space that has a cloud-native Open 5G network. The architecture that Marc talked about is something that no one else has. It doesn't exist out there. We're the only people who have that platform. As a former CTO of a wireless company, you know, you can talk about moving from the left to the right in Marc's charts, but talk is cheap. You can slap some paint on it, you can call it whatever you want, but to actually substantially move from the left to the right takes courage. Not just money, it takes courage. That is a really, really big investment to do that, and it takes a long time to do that. We're starting out on the right-hand side of that chart that Marc put up. That's the platform we have today. That platform is what gives us the tools to expose through the API that we're building and the API gateway that we've got in place today to allow our enterprise customers to take advantage of that platform. That's why we believe we can take more than our fair share, and we think this is a long-term sustainable market share advantage we will have in this space. What we're building is a software-defined network, as Marc talked about. It's more like an IT platform. It's not a traditional consumer wireless, vertically integrated network that's just got enterprise painted on the outside. It's a platform that we built for CIOs. It's what CIOs need in order to be able to take advantage of the tools and the capabilities to build their applications into this network. As I touched on before, it's an enterprise API. It's not building in over- the-t op. Our enterprise customers have control over their network, their services, and they can control the ROI. While I can even talk about this and I can project this, the confidence that I have in this is we already have proven it. We've got early success. This model is something we tested, and we're executing against, and we're actually building for our customers today. With that, I'm gonna hand it over to John Swieringa, our President of DISH Wireless, who's leading the overall operation for our business. Thank you. Thanks, Stephen, and it's exciting to be here with all of you today to talk about our exciting future at DISH. For me and my 14 years with the company, I can't recall a more exciting time or a more crucial time, because right now we're in the process of taking steps to unleash a decade of value creation in wireless. You heard from Charlie earlier. We're through the crux. These big projects are hard. You heard from Stephen just now. They take courage. We're ready to go. This team is pumped, and we've got an exciting future ahead of us. We're starting to take meaningful steps now to demonstrate that to the market. Let's take a look at one. We launched Project Genesis here in Las Vegas last week. There were a lot of questions about what Project Genesis is. Let's talk about that for a minute. Project Genesis is our first commercial implementation of our cloud-native smart 5G network. It works. It's up and running. You heard about the architecture, you heard about the cost profile, you heard about the flexibility we'll have, and it's here now. Project Genesis is a grassroots effort. It's customer-focused. It's based on real-time data and feedback from our users. They're delivering us feedback every day on what's working, what's not. We reward them with great rewards like NFTs, level up status and other things to engage further with what we're doing, so that as we transition Project Genesis to full retail operations with the type of competitive offers that Stephen Stokols talked about, we've got a network that can compete on day one. As Dave Mayo said, what happens in Vegas isn't staying in Vegas as it relates to DISH and our future. We're getting ready to roll Project Genesis out across all of our initial launch markets in the coming weeks. You'll see different devices, different offerings, things like that. It'll continue to be rooted in beta members who give us early feedback, commercial users. It will allow us to build the competitive network that we need to go compete with those large three incumbents in retail and to start to open up all the opportunities you heard from Stephen about in the enterprise space. It's truly a first of its kind. It operates differently than any other network that's been seen before anywhere in the world, and it was built right here at DISH. We'll be excited to share what's going on with the network with you. We'll have our Project Genesis team members and ambassadors here. They're sporting Motorola Edge Pluses, other devices, and they're really excited to show you what the network's doing. You'll be able to figure out who they are because they'll be proudly sporting Project Genesis gear. For me, I wanted to share some takeaways. We've heard about a lot of information today. We appreciate everybody sticking with us. In fact, I'm gonna go through each of these. We have the assets, the team and the partners to win. We're ready to go show everybody what we've done. I'm a big projects guy. It's kind of what I do, and we've definitely crossed over, and we're ready to move forward now together. We did the vertical project, and now it's time to do the horizontal projects and scale this out across the country. You heard earlier that we have significant technology and cost advantages. We did what we could to share the details on that. It's real. As we scale up as an MNO, we'll start to exercise those economics. In addition, we can disrupt and grow in retail, which is an established market that we think we can grow to 40 million-plus subscribers in powered by Boost Mobile. We have great assets and are well-positioned to take advantage of what's gonna happen in enterprise. I'm a former CIO. Recovering CIO, I might say. If I were still in that role, I'd want this network for my business because it'll help me deliver operational efficiencies. In addition, you heard that our spending is on plan and our deployment is on plan with nationwide coverage, and it works. We're through that crux. You also heard that it's just the beginning of the race. Based upon all the things you heard from Marc, we have incredible opportunities to continue to improve the network quickly. Rapid deployments, automation, scaling up and down, unique slices for customers based upon what their needs. There's a lot of great work that is still in front of us here, and this team's excited to get to it. You combine all of that with DISH's capabilities, and we have a new entrant in wireless that can be disruptive. We have a disciplined management team. As you heard, we have 30 million-plus existing customer relationships. We have global technology delivery, which is where I've spent most of my time with the company in my career. We have award-winning customer experience and innovation from our roots in Pay TV, and we have end-to-end sales and customer management infrastructure that is ready to scale. We have a couple thousand of our partners coming here to Vegas to see us this week, and they're excited and ready to go. It really just comes down to disciplined execution now. Disciplined execution to unleash a decade of value creation that you heard about from Charlie earlier today. Let's just cover again a few of the key takeaways. It'll help all of you understand what we're gonna do. Our future looks like low double-digit market share in retail. That's 30-40 million-plus retail subscribers. 30-40 million plus. We have to be good to get that, not great. Although we're gonna be great because we know how to enter markets and disrupt them. We did it in Pay TV, and we're gonna do it again. We expect a 20%+ market share in an emerging enterprise 5G space. Let's face it, we don't really even know how big it can get, but it's going to be huge. For us, that looks like a $30 billion-plus market, and based upon what we've done, it'd be malpractice for us not to be able to get more than our fair share of that because we have the products, the technology, the capabilities that that market wants. You heard it from Stephen Bye, our competitors agree it's gonna be a big market. You take these two things together, what do you have? You have a path to scaled MNO economics and returns. That's what this project is about. We need to deliver returns because we've invested a lot. We could have done it differently earlier on, launched a 4G network at the end of that era. We took our time. We did our research. It's important to be curious. That's a very important part of our culture. We went about putting together what's needed to go and compete with this network in this market, and as we said, it's something that the rest of the world doesn't have. We expect it to become the envy of the rest of the world, and we'll be damn hard to catch. Like I said, the team's ready to roll, the network's up and running, more markets are coming, and at DISH, our best days are definitely ahead of us. With that, we're gonna transition to a Q&A portion of our program. I appreciate everybody sticking with us. There's been a lot of information shared today. For those of you who have questions, obviously we'll be out at the cocktail reception later. If you'll bear with us for a minute, I'm gonna invite Charlie, Erik, Marc, and Stephen back up on stage. They're gonna bring us up some chairs for us, and then we'll get into the Q&A portion. Thank you very much, everybody. I appreciate it. Ladies and gentlemen, please remain in your seats. We're gonna get started in just a few moments while we prepare for our Q&A session. Thank you. All right, we have some microphones in the middle here. You can just shout it out, Walter. Your best leadership training. Who has the first question, Charlie? I bet Jimmy does. I can't see out this way. All right. You ready? We're born ready. No. Okay, I'll yell it real loud. Charlie, you know Corey. He's driving down the Pacific Coast Highway during the week, and he calls me on his cell phone, and I lose a lot of words. I lose a big chunk because he's driving through Malibu. It's the old Verizon advertisement. Can you hear me now? The existing cell structure, the infrastructure, it just doesn't work very well. It's a mediocre service for where we are right now in this country, and I'm wondering, your new architecture, is it gonna get rid of "Can you hear me now? Okay. The question was Jimmy Sun's example was driving down the Pacific Coast Highway. Your mic. My mic's not on. Can you guys turn me on? Am I on? No. No? Is somebody else on? I am. Okay, I'll take the question. Yeah, no, I think. Do you also know Jimmy Sun? No, I don't. Okay. I'm very familiar with the example, and certainly we've all experienced that, as we've, you know, dealt with the networks that exist today. I think what's actually interesting is, Dave talked about this in terms of how we're deploying the spectrum, and if you look back at a lot of the networks, and I think of it as sort of the skeleton. When you lay the grid down, it's really hard to change the grid of the network. It's hard to change the skeletal frame of that infrastructure that got deployed. I can say that having the experience of being a CTO at another wireless carrier, you can't fix mistakes that were made to the grid 20 years ago because it requires kind of a readjustment of the whole grid, and it's very, very expensive to do that. The networks today with their legacy grids are very, very difficult to manage, and they're very hard to optimize, and they have to spend a lot of money to do that. I can tell you, and Dave and I talked about this when he first joined the company. My gosh, we get a clean sheet of paper. To build a network today that has never been done before, we get to design it with the combination of low-band, mid-band and even sort of. It's funny to me when I still think 3.5 is mid-band, but when you look at sort of each of those bands and say, "I can now optimize the grid for the quality of the handover and the performance based on all the spectrum we have available, and how do I do that in the most efficient way possible?" While I can't promise you that we will never have a dropped call, the way in which we've designed the network is with a view to optimize every asset that we have to minimize the occurrence of that. Marc talked about it as well with in terms of the RIC and what we can do with the scheduling algorithm and what we can do to manage and optimize that performance. If you think about the data that we have in the network, you know, one time somebody asked me, "With all that data you have, why cannot you predict when a customer's gonna drop, and how do you prevent that customer from dropping?" We have the data, we have the infrastructure, we have the design to be able to leverage that in a way that the other carriers do not have it. That's my point. We can't ever say that we'll never have a dropped call, but the quality of what we're building is at a whole different level than what the traditional carriers have today. I don't envy their position. Having been there and trying to do it in the past, it's very, very hard. It's very, very expensive. It takes a lot of work and, you know, to give them some credit, they've done a pretty good job with the tools that they've had. Yeah. In your opening statement, you talked about a trillion-dollar market, right? You have what were essentially revenue targets that you connected to talk about when we're gonna start to see the revenue ramp on that trillion market. I know you said it's gonna be difficult to do like transactional revenue, but what does the revenue model initially look like, and then mostly look like for that last slide? What year is that in terms of that market opportunity? Hold on. 10 years? 20 years? 5 years? Yeah, it's a good question. You know, the market- Repeat the question. If I look at sort of the market, when are we gonna achieve that revenue that I put up on the last chart? When am I gonna achieve the 20% share, and how does that relate to the $1 trillion that I presented earlier? The vault. Did I capture it? How does the initial when Yeah, when. Basically the start and the end. The start and the end. How. How. Okay. Can you talk a little bit about? Yeah, I did talk a little bit about it, so I'll touch on that. About your transaction-based revenue. Yes, that's correct. Are you doing like licensing transactions? Like, how does that initial revenue look, and when did you get that, if it's- The best way to think about it is we're starting to grow that revenue this year. We've already got customers. We're growing that revenue this year. Think of it as sort of the private 5G network space. We see that scaling in 2023 and clearly picking up momentum as you go into 2024 and beyond. As I said, there's a long sales cycle when you're dealing with enterprise, so it's a ramp that's gonna take some time to kind of ramp up. The way to look at the sort of revenue as it builds up is really gonna be about private 5G networks, and then over time it becomes far more transactional as enterprise customers take advantage of the API gateway and the transactions that are available through that gateway. I'm not gonna give you a year-by-year forecast of what that looks like, but think of it as early revenue this year, scaling into 2023 and then picking up momentum into 2024 and then 2025. If I look at the size of the opportunity, you know, I said it's about $30 billion in 2025 for the private 5G- as- a- service. What I really was pointing out with the 20% is that's where we see our long-term sustainable market share over time. Think of that as beyond 2025 is where we think our sustainable competitive market share position will be. I actually think it'll be a little higher than 20% given the advantages that we have today. I think it's gonna scale up over time. I won't give you specific numbers through those years, but you'll see it picking up through 2023, 2024 and clearly into 2025 as we get more momentum into 2025. Stephen, fair to say that we largely see that as utility pricing. Oh, exactly. similar to public cloud providers. Yeah. where there's opportunities to consume the network. To do good better best type offerings based upon the mix of services, the type of spectrum we're deploying for that specific customer. That's right. We see lots of opportunities to get started with customers and then grow with them. Exactly. Next question. Yeah, we'll bring a mic to him. I've got it. Hey, guys. Thank you. Charlie, I guess one of the reasons why we're sitting here today, you kinda gave us this history of DISH's innovation, but one of the key reasons why we're here is you helped Sprint-T-Mobile get their merger done as being a part of that solution that the DOJ bought into. Part of getting to that was going into a closed-door session with the judge and telling the judge all the great plans that you had that were gonna come true. One of those elements was that Amazon or Google were gonna be a part of this, and that you were gonna bring them in and be a vehicle for the hyperscale cloud guys to be a part of this industry. I guess some people really thought that we might hear or see some substance along those lines today, but we haven't. Can you kinda talk about where do we sit in that path? Yeah. I don't know if everybody heard that question, but we were talking about the Sprint T-Mobile merger, and I had a closed-door session with the judge, and the question was, "Gee, didn't you discuss Google or Amazon being part of what you're doing?" The fact is they all actually are both part of what we're doing. I think a lot of people in this thing always, you know, want maybe a simple thing where somebody puts a lot of money, and that's what you guys look at as partnerships. We look at partnerships of how we make each other's business better. You get to the same point, except you get to each company controls a little more of their own destiny. Amazon's been a fantastic partner. We wouldn't be where we are without them. They've put in an inordinate amount of resources into what we're doing, as some of our other partners have. Again, the way I look at it is everybody that's a partner for our size, we try to make their business better. We try to find out what we can do to help them, and they do things to help us. If we were the incumbents, I guess we would try to do it ourselves. We're not, so we're gonna have to share some of the great economics that come from this network with our partners. That's how we're gonna grow faster, and that's how we're gonna be a bigger company. I think that's a philosophy. It's worked for us throughout the history of our company. Can we just carry that forward, Charlie? I remember when you came to New York to convince us that DIRECTV and DISH made a lot of sense, you were wearing a suit and tie, and you said, "You know I'm serious 'cause I'm wearing a tie." You sound pretty serious today. What I said was, "When I'm selling, I'm wearing a suit and tie." I'm not selling today. I think we just put out there. We haven't been the most communicative company out there because we've had our head down. We wanted to get past the crux. We had to get to where we are today to start talking about what we're doing. You're gonna hear more from us. We're gonna be a little bit more open about what we're doing. We might even do a conference one of these days. I know a lot of you want us to have an IR staff. I think that's a good idea. You know, we'll be talking a lot more about what we're doing. Yeah, there's a conference in June that might be perfect for you. Look, I think the question is, you know, you talked a lot about lower costs. You just talked about having to share the economics with partners. In the end, does this mean we should look at margins that end up in the same place as the big three are right now? Just, you know, time to break even, Charlie. Any thoughts or guidance for this audience would be great. I didn't hear the last part of the question. Time to break even. Time to what? Break even. Break even. Oh, time to break even. Okay. Yeah, I think, you know, Steve, I think we can expect that we have lower margins initially than the incumbents. It's always a balance of where you price, so forth. Because we have a network that's got capacity, you can imagine that our margins, that we probably would be more aggressive in pricing to maintain market share. Our competitors will run the math. It won't make sense to necessarily reprice their whole base. That, that's why the fourth player always ends up in that low double-digit place. Obviously, the lower cost network could balance that out to some degree, and margins could be a little bit better than you might expect. Break even for us, we're making money in wireless today, right? We have capital expenditure to build the network, but we took over Boost, which was hard to get. I don't know what the economics of Boost were because they ran on a contribution margin basis. It's been. I thought we'd be lucky to break even the first year. It's been profitable. It's been profitable since we've had it. It would be more profitable if when and if we get Department of Justice to move on what we're doing. Again, I feel very comfortable as a company that we balance that we're a good steward of capital. We think long term. We balance pricing and profit and loss with strategy. There's a reason we're one of the companies that doesn't have to go do something theological so that Wall Street sees a number, right? I can give you countless examples of companies that do stuff that I wouldn't do, right? I mean, I'll give you an example because the company doesn't exist anymore, Sprint. When we acquired Boost, they would move several hundred thousand customers from prepaid to postpaid every quarter so that they could show Wall Street that they had postpaid growth, right? They were just prepaid customers, and they had a high churn. They moved them to postpaid 'cause they'd lost more money on them. They could show Wall Street a short-term number, but they lost money doing it. We just wouldn't do that, right? Now, there was probably more strategy than that on their side. Maybe they were trying to sell the company. I mean, there may have been logic to what they were doing, but that's not the normal thing that we would do. We would just keep them on prepaid and save the money. I see a lot of that, and if these guys start doing that, and if I'm around, they're not gonna do it. Hey, Charlie, or Mark, it's Chris Liddell over here. You know, there's a company called- Hello. Over here. There's a company called Twilio which did some of the same things you guys are doing by abstracting the network elements out and just trying to get at the margin structure of the enterprise business. If you look at, you know, they were paying telco companies 25%-30% of their margin, so maybe paying AWS 20%. If I look at your business on the enterprise side, it feels like it should be an 80% gross margin business. Is that a fair kind of estimate as you scale up for that business? Just beyond that, could you kinda go into the long-term maintenance CapEx of the business? You guys have obviously gone a light CapEx model. Where do you see maintenance CapEx for your network, you know, over the next 5-10 years? Thanks. Yeah, I don't think I heard. What did you say Twilio? Well. Gross margins on enterprise. Just commenting on Twilio. Is your business, I mean, they're paying. They do 55% gross margins. They're paying the Telco guys 25-30 points. It's their biggest cost, and Amazon the rest, effectively. I'm just kinda. Is the ballpark gross margin for your enterprise business 75%-80%? Yeah, I don't know the answer to that question. Steven could talk about it, but he showed you three different possible business models. The spectrum model's virtually 100% margin, and then as you move up the stack, that margin is gonna go down. It goes down from 100, but it's still a very, very healthy margin business because you're the way that as I said, it's kind of a CapEx-light model, and it's a very success-based investment, and we only take on projects that generate a very high return on those investments. You can imagine it's certainly north of 65% gross margin, but it's a good, healthy business. You know, the Twilio thing, this is probably not your question, but one of the things about Twilio is they did things. They ended up putting some stuff over- the-t op because the carriers themselves, for messaging and things and marketing and advertising that the carriers could have done but didn't do. I do see a fair number of things in the industry that are coming, that the carriers could do to keep some of that economics within their companies, us included, that wouldn't leak out a bunch of profits from the wireless carriers. Obviously, the App Store is a perfect example that the carriers do not share in the revenue. Twilio's messaging's another big one. There's certainly a lot of stuff coming that the carriers, if they could agree on standardization of some things, then I think there's quite a bit of good opportunities for all the carriers involved. I think we're a little better at thinking about those kind of things because we're new. I think that, you know, just like we get a new employee, and they look at things differently than we have, you know, longer term, and every once in a while, one of our new employees has a good idea. Yeah. On the second question of maintenance and support on the network, you know, when you look at this infrastructure and what we're deploying, and maybe Marc can add to this as well, one of the challenges with a traditional carrier model is you're paying for a lot of maintenance and support on legacy platforms and legacy technology that was deployed, you know, even over a decade ago. When you look at sort of the percentage of, you know, what you're spending in terms of your capital budget each year, and I know that only from experience, you know, big chunk of that is just to keep the lights on, keep all that stuff kind of running, and continue to, you know, put patches in and upgrade that as you go forward. The beauty of the platform we have today is it's a completely different architecture, and it's a completely different platform. When you look at our ability to upgrade and move to a new hardware or an accelerator card, I mean, we're talking at a whole different scale and a different business model. When you look at sort of our maintenance and support as it goes forward, you know, we're starting with a much cleaner platform, and it's 5G- native going forward. When you look at sort of the maintenance and support, it is lower as a percentage of the overall spend. Maybe, Marc, you can add to that as well. Yeah. I can't resist. I mean, you offer me the opportunity to talk to you, but in my previous life, we were spending 90%-95% of our R&D, so I had a budget of $2 billion per year on legacy management. For me, this was a drama. It was a trauma, right? Leading technology. I can't resist telling you what I've done because I've been so traumatized. We're putting automated testing. Now, automated testing is something nobody has ever done, but we've started that, and our architecture allows us to do that. Normally, in AT&T, an engineer would run two tests per day, and you can calculate how much it costs. We've put a machine in place that is fully automated, no humans. We are running 10,000 test cases a day, no OpEx, 0 OpEx. We go all the way to generating the tickets. We have machine learning on the logs. I mean, it's a beauty. We send the tickets to our vendors, and our vendors are complaining because the machine is way too fast. I see some of them laughing now, and sometimes they're crying. The idea is to generate millions of test cases per day. For me, this is like when chess went to the computers. How did you train a computer to play chess? You put two chess machines playing against each other, and they played billions of games, and no humans could ever do it again. We're doing the same. We're putting automated testing in the network. The network is learning, and this is it. Now, first of all, I love it from an engineering point of view, but it goes even beyond. If you want to guarantee an SLA, today, you know, if an enterprise is coming to Verizon, they say, "I want guarantee." They can't because they don't know the behavior of the network because they can't test it. Don't break it. Don't touch it. They don't touch it, never. Because we can test it, we can simulate the SLA, see if we can do it, increase on-demand capacity, and then say, "Yeah, tested it, simulated it," and then Stephen Stokols can upsell a premium SLA. Everything is so different. It's fascinating. Now, you know what is the cost of finding a bug in the field for a normal service provider and their enterprise and their vendors? It's $100,000 per bug. I've been there. We do it automatically. Tons of costs that are going away. Charlie, I guess. There we go. That's better. Yep. Three questions. Yes. Two questions if I could. Charlie, first for you. Last week on your earnings call, you were reticent to talk too much about your financing expectations, ahead of today. Now that you've shared this, I wonder if you could just talk a little bit about, in essence, what's the ask, for what's your expectation for financing needs and, which I presume is one of the reasons you wanted to sort of gather us here to set expectations a bit. Then second, for Stephen, I just want to continue down the same path that you were talking about a moment ago. Maybe instead of on margins to think about it as revenues. Suppose there is a private network customer who is where there's a systems integrator involved who's sort of leading the project. There are equipment vendors. There may be a cloud vendor. What share of the revenue do you expect to take in a sort of traditional instantiation? If it's just sort of licensing unlicensed spectrum or licensing licensed spectrum in what would otherwise be unlicensed, how much value do you think that adds to the customer, and so how does that affect the share that you take? You wanna start first? I'll start with the easy one first. Oh. Better. Just on the second question first, I'll hit that one. Yeah, when you look at sort of a private 5G opportunity, it does include multiple partners in that process. The best way to think about it is oftentimes when you look at sort of the split of the revenue, we'd be at about 50% of the overall revenue or the overall spend of the enterprise. We represent about half of that. And then our partners get, you know, other pieces of that obviously as part of the value delivery process. When you look at the margin in that, it's obviously very, very high. The spectrum leasing is sort of, to me, I put that up there as sort of the most basic foundational element. You know, that's the first entry point, but often it leads into, well, we like the spectrum, but okay, how do we manage the network? How do we build this network? How do we optimize it? How do we get the lowest cost out of that network? That's where you start layering in value beyond the spectrum. It's very rare that it's only just a spectrum lease, unless it's a very, very sophisticated company that actually, you know, knows how to own and operate these networks. Very quickly, we end up sort of in the middle layer. For the more sophisticated customers, the sort of the what I call about, you know, what I talk about private 5G- as- a- service plus, that's normally kind of a second phase. That normally comes after we hit sort of that middle tier. The conversation will often start, yeah, let's talk about a spectrum lease. It's like, "Oh, man, this is a little harder than we thought." We end up in sort of the middle layer. We end up about 50% of the opportunity, the revenue comes to us. Margin in that is obviously very, very high. The margin actually goes up as we move up to the next stage. The next stage is really kind of the what you say, normally comes on after we do the sort of the initial private 5G- as- a- service offering. The other thing that I'll add, which I touched on in my presentation is, you know, part of our challenge is we're still building out the rest of our network. Our ability to extend those services is constrained by our footprint today, but obviously, that footprint gets bigger and bigger. I'm still encouraged because Even with the footprint we have, depending on where the customers are, we're able to serve that. That's probably another point that I didn't highlight in my presentation, is we're not limited to our footprint as we sell private 5G- as- a- service. We're deploying. You saw Dave's map. A number of the projects we're deploying aren't anywhere near our footprint, as you can imagine, if you look at some of the applications I talk about as well. We're not constrained by that geography. Yeah. Your question, I wasn't. I don't think I was reticent to answer the financing question on the conference call, and my answer today would probably be pretty much the same. We know that in March of next year, we have a debt payment of $1.5 billion, and we think we'll have to raise money prior or refinance part of that or raise money at that point in time. Then it's another, I think, 14 or 18 months before we have another debt payment, and the world's kind of a different place for us at that point in time. I, the way I I can only tell you the way I think about it, which is, I look at the debt payment next year and something that we have to focus on, you know, and look at all the different opportunities. We could raise the money today. There's a lot of opportunities out there today. I believe that the cost of capital for us today would be higher than it will be after the market settles down wherever it settles down. I think the volatility is not a good thing right now, so, it's certainly something that, you know, we'll look at and make sure that we raise capital prior to that time. I can't hear this one. Ted, we can't hear that. Yeah. Oh. There we go. You indicated you more or less had an epiphany in 2018 when you realized what Rakuten was doing. What was it that enabled you to get to parity and pull ahead of Japan, you know, Korea, you know, China? I know you talked about the U.S.'s advantages in silicon and software, but do you think you just made a lot of progress by being patient and watching what the people were doing? Are you still having a lot of cross-learnings with some of your international peers who are trying to do the same thing with O-RAN? Thank you. I didn't- My-- I- I couldn't hear. I didn't understand. If you could just come up front. Sure. The audio up here for some reason is horrible. I hope you guys can hear us. You said you pretty much had an epiphany in 2018 when you realized what Rakuten was doing. You probably did a hard stop and rethink everything. How did you get to parity with them so quickly on O-RAN? I understand there's a lot of sharing with international peers. About O-RAN? Sharing with some of the international peers on O-RAN. Yeah. One factor. I don't know that I got it. The question really was about Rakuten in 2018, where we really had kind of an epiphany that, In relative stakes, how did you catch up so fast? Did you have a unique set of companies with technology or people or what? Yeah. How did we actually make O-RAN a reality? I'll take the first part of it and maybe let Marc. I think we had some pretty dedicated vendors and the incumbents would. We couldn't use Chinese vendors. Ericsson and Nokia would like to move to O-RAN, but they've got deep entrenched end-to-end solutions, particularly in the United States today. It's probably not in their economic interest to go there, and the incumbents have nowhere to go, right? On the O-RAN stuff, we were fortunate that Fujitsu and Mavenir and Altiostar were willing to jump in with both feet and make that happen for us. I think the other part that maybe we didn't really talk enough about here is that the relationship with Samsung is a verification of the strategy where Samsung is now a vendor for us, which they bring a lot of the CBRS and C-band knowledge, particularly C-band, where they do it and do a great job in Korea. They verified that O-RAN is the way to go, and they are truly building O-RAN for us. You know, it I think it's just a lot of hard work, and the technology's cruel. Your timing has to be pretty close, and if you're too early, you know, you're just in trouble. Our timing's been pretty good. I think we're a little early. Rakuten's probably three years early. In hindsight, we're probably six months or one year early for some of the things to develop. We're fortunate we kind of got over that hump, even though we're a little bit early. You certainly don't want to be late. The first-mover advantage is, it, as long as we execute on it, real and immense. Marc, did you wanna? Yeah. No. I think one way we are today is that I think we have access to the best silicon. When I was at Nokia, and Huawei was hitting us hard, I think people did not understand that their weapon was silicon, with high silicon. They could spin off new accelerators every six months. We were, like, every five years. I mean, that was really different. Now, for the first time in my career, I have access to better silicon than anybody else. Once you have good silicon, then the software, you know, has much more room to breathe. We have a fully upgradeable platform. You were talking about maintenance, what we've deployed. We can plug in. I don't want to go into the details too much, but we have slots to plug in any accelerator for the lines for the years to come. I feel very secure that we just have the best compute. Then I would say it becomes so easy for the Mavenir and the Samsung of the world to put their easy software, right? They are saying, "No, that's not easy." It is easy, right? Fujitsu has been an extraordinary partner. You know, Stephen and I were specifying the radios, and we want the best, the smallest. I mean, you've seen the mask. We have the densest radio in the world, but we also have the capability to turn the power down. During the night, you know, the power consumption goes down. We can tune the tilts in so many different ways. I mean, that's a jewel, and it works really well. As Charlie said, we came at the right time. We were a bit lucky there. Charlie, I guess three questions. The first is, you know, when you think about the examples you used for market share. I'm here, this way, Sujal. Yeah. If you look at all the markets you compared, France, Italy, and so on, the new entrants who took share competed on price in almost all of these markets. And at least based on some of the stuff you said on, you know, today in the presentation, it doesn't look like that's the dimension that's core to your, you know, the way you're going to market. What are the dimensions of comparatively that you think differentiates DISH when you go to market? And especially how do you establish that value in the minds of consumers relative to existing operators? Secondly, in terms of the pace of entry in the market, I think the compensation agreement for senior management has a goal of 30 million subs by 2026. If you just take, you know, the 30-40 million goal today or, you know, the compensation agreement, it implies a net add pace of more than 5 million subs going forward over the next 3 years. That's a significant ramp in your market operations in terms of retail, marketing, and so on. Could you help us just bridge that gap? Because it is a pretty big step up from where you are today, and that would potentially require a lot of capital as well going forward. When should we expect to see that ramp, as we head into next year? The last question is more around the decision tree. I mean, if you look at the presentation today and compare it to essentially the decision tree that you laid out for us a few years ago, where wholesale was a big part of your operations. Today, it looks like the way you're planning your go-to-market strategy is a lot more retail-oriented. Your decision tree seems to be skewed a lot more towards the lower margin option versus some of the higher margin options we looked at previously. If you could just help us think through the various alternatives around the decision tree and what the end state might look like, that might be useful. Thanks. Well, the first part was relative to how do we think about market share as it relates to price. I think, you know, obviously, Stephen, you might wanna get a microphone 'cause you can weigh in here too. We've competed as an MVNO, you know, we understand what the market is. You know, we've been through, you know, certainly a couple rounds, you know, with our gloves up with respect to the global device shortages we experienced in 2021, the efforts to migrate almost 100% of our subscriber base from one network to another. The good news is we got a lot of practice at migrating subscribers from one network to another. Look, obviously, you know, I think we said this on the call, but having owner's economics in retail will be transformative for our retail business. We see lots of opportunities at the segment level and other things to start scaling up, you know, our gross adds, our additions. We believe there's avenues that are open to us there, but getting to owner's economics is certainly a really important step, right? We'd imagine that we'd be able to start, you know, ramping up later this year when we have Band 70 devices operating on our network. It's an incredible accelerator to have access to two other great networks for use by our subscribers, so we can really go nationwide right away. You heard from Stephen that we're gonna bring the Boost Mobile brand up, upmarket and compete in a more broader market sense. We've obviously been planning on this, working on this, and we'll have great opportunities there to start picking up additional share as we go forward in retail. When you think about the role of price, and obviously as we bring on our own gig factory, our incremental costs will be far lower than they are today. We'll look to take advantage of that in the right ways. I think as Charlie said, we'll do it with discipline, and we'll do it profitably. You know, there are certain things that we won't choose to do that we've seen some of the competition do here in our time in this market. We feel very confident we can start ramping gross adds and upgrade existing customers to our new network as it becomes available across the country. The other point you might want to talk about a little bit, John, is just not underestimating the power of digitization that Stephen talked about and the digital operator platform versus kind of the traditional footprint that we're working on. Yeah, that's a great point. I mean, I think, the one thing that COVID did for us, and Stephen touched on some of this, was just the acceleration towards digital. We're building essentially a digital asset in retail, from the team, to the people, to the processes and the underlying technology. We also get to start fresh there. We'll operate far more like other web-scale companies in that space. We'll have access in national retail. We'll have a digital business, where we see significant room to move, with lower cost of acquisition. We've got indirect partners who can be our local ambassadors, help us build our brands. We'll take the multi-segmented approach. It's a highly segmented market. Boost will be the driving factor behind that, and we'll move that upmarket to address a far larger group of potential customers. Could you give us some insight on how much of the customer-centered network that you've been talking about is viable on roaming versus what portion has to be on your own network? How does that affect your ability to go with non-specific location, but, you know, across a metro area and the like? Yeah, no, that's a good question. As it relates to sort of customer-defined networking, you know, when you look at these enterprise opportunities, a lot of them are sort of private systems that are deployed within the enterprise or around the enterprise or on the, I guess, the facility in which the enterprise operates. You know, today, as I mentioned earlier, we're able to deploy those anywhere in the country. But as we look at how we extend sort of the private 5G plus network with the network slicing at the top layer, that's only really available on our network. You know, obviously, the rest of the industry doesn't have network slicing deliverable across, you know, 5G SA environment to every endpoint in the country. We are limited if we start looking at that sort of service tier to our footprint. That's why I say we end up sort of in that middle tier today. For certain customers, we can do sort of the top tier with the network slicing based on where our footprint is today. As we continue to build that footprint out, we'll be able to extend that, as Dave deploys the rest of the network. Yeah, our roaming partners certainly don't have the capability to do that at all. Thanks. Two questions if I could. One is, as we try to conceptualize the evolution in cost for the network, can you share where you are today in terms of the number of cell sites, where that gets to by mid-2023 when you had the chart up of the picture of what the country is gonna look like in terms of on-net service? And then just separately, the wholesale opportunity. Do you have a sizing of what you think the wholesale opportunity is and who the compelling partners for DISH could be on the wholesale front? Thanks. I'll take the wholesale question. You know, I can't put a number on that today, but you can imagine, given the platform capability that we have, and I can say this having run an MVNO in the past, it's very, very hard to run an MVNO business. You know, we've done a terrific job, and Stephen's done a terrific job with Boost, but it's very, very hard. You're generally anchored to the incumbent and the pace at which they move, which is very, very glacial. That's being kind. You can imagine the platform that we've put in place, the ability for somebody to come in as an MVNO and innovate on top of this is very, very quick. Their ability to get into the market and serve those customers as a brand is at a whole different cadence than what the traditional model is today. You know, if you look at the traditional market and you say, "Okay, how much of that is wholesale?" I think that's undersizing the opportunity significantly because the platform that we've built and that Marc laid out has just never existed before. I actually think it's a very, very big opportunity, but it's hard to size that based on what the traditional industry has operated at today, because the way in which companies can launch is at a whole different level. The other thing which is interesting about the wholesale opportunity is you don't have to be a national brand to be successful. That's also a little bit different from the conventional thinking, because the way in which you can operate on this environment without necessarily having a full national brand. We think, you know, that's gonna be a big market, but it's hard to put a number on that just because if you look at the current trend and the history of wholesale, it's not been a good history, because the incumbents have done everything they can to minimize and choke off that opportunity, frankly. You know, and you just look at the evidence that's, you know, there's. The history is littered with failed MVNOs, for a good reason, and we think this platform will change that outlet completely. The wholesale is not just limited to private. I mean, there could be other MVNOs. I mean, the one that would come to mind that might make some sense might be the cable industry, where they're going to customers we otherwise couldn't get to or that they have a better relationship with. Obviously, they have a lifetime deal with Verizon, so I wouldn't bet the ranch that that's something that's gonna happen. Our network is. We do see wholesale for a wide variety of things. I think the question was about. I don't know if it was number of towers or build out cost of towers. You know, we're on a. We've publicly disclosed we're spending $2.5 billion for CapEx, so you know, it's a little over $600 million a quarter for CapEx and building towers. I think it's public information that we have a commitment to Crown Castle of 20,000. We have commitments to other vendors as well. We know that our competition has 60,000 or 70,000 towers out there, although we don't have to reach that. We don't have to reach in rural starts, you had a lot of towers that you otherwise wouldn't have to have. You know, it's we're just not giving out that specific information, but that gives you a feel for it. There's lots of other interesting things where people have gotten people to, you know, as we go to private networks, those in theory can fit into our network, and that's not a place where we have to build it out necessarily, other people will. There are other companies who've gotten users to build out towers for or build out segments of networks. I think there's a lot of interesting things going in that space. Again, I would say strategically, CBRS is gonna play a role there because in a role that maybe people don't foresee. We could be wrong, but I think CBRS, because that spectrum is free, particularly indoors, right? That you're gonna see quite. Everything's been LTE so far. As that makes the switch to 5G, I think you're gonna see a lot of that. In fact, out here I noticed out here one of our partners, KMW, has got some CBRS stuff. It's you know little antennas like that, and you can see how easy it would be to build that out. I know that Airspan is here. It's got a lot of very interesting stuff that they're working on. We built our business by being kinda open to a lot of entrepreneurs, and we just spent a lot of time with people having good ideas, and we put a lot of products out there. We built the first DVR. We didn't invent it. It was a guy named Steve Perlman long before TiVo and Replay. We've been open to other people having good ideas. I should mention JMA on CBRS. There's a lot of great entrepreneurial companies out there that we'll work with, and they're gonna get their fair share of the profit, and we're gonna get a little bit. That's how we'll do it. Our playbook really doesn't have to change much from what it's been in the past. Yeah. I'd just add one piece on the wholesale side. We really have built a wholesale network. Yeah. Even our own internal brands like Boost Mobile and some of the other brands across segments, they're connecting to our 5G network through the wholesale gateway. We're eating our own dog food because we wanna have a really good access point for whether they're MVNOs or other new types of entrants to access our services. It really is a services-based approach. Mm-hmm. There isn't like a retail network over here and then a wholesale team over here that sort of looks after some book of business. It's really sort of one combined approach, and we're very confident that we'll be able to attract MVNOs, and we are one today, right? We sort of know where the pain points are and how to make that easier to start building a book of business. Yeah. I mean, John, you make a great point. That API gateway that I talked about is in fact how our house brands come through and consume the resources within our network. It's the strongest proof point we can have. Hi. Thanks for hosting this meeting. To date, you've really leveraged your DBS cash flows to pay for the wireless venture, especially on the spectrum side. I'm just curious if you've considered other capital resources, perhaps vendor financing and how that might fit into things. Then I imagine a lot of satellite bondholders are in attendance today. Just, you know, curious what your message is to them, how DBS fits into the overall strategic plan. Thank you. I didn't. Did somebody get all that question? There was something about DBS. Mm-hmm. Did you hear it? You can answer it. Well, DBS fitting into the overall plan, and then, you know, our leverage on DBS, and how we think about that moving forward. I mean, obviously, DBS has been a great long-term business for us, but obviously, that's a business that's declining, right? But it still throws off tremendous cash flow. I've said it till I'm blue in the face that we think DIRECTV and DISH is inevitable. I don't think that's a regulatory issue today. Of course, that's just my opinion, right? I think there's some interesting. The only reason is 'cause a merger extends the life of satellite television. Absent that, it probably dies out, you know, 5 or 10 years earlier, which is not great for rural America. I think there's any number of things out there that can make some sense. Again, I... The only way I'd say, we have a lot of assets, right? Some of these assets are. We have 12 GHz. We use it both via satellite and terrestrially, right? Other people would like to. The LEO guys would like to use it, but the FCC's got a rulemaking. I'm highly confident that the government. It's the only 500 megahertz band probably in the next decade that's gonna be available, and it's not owned by the Department of Defense. This is gonna get more use, and we're well-positioned there. We paid in an auction for the terrestrial rights. We paid in an auction for the satellite rights. There's just a lot of things that we can monetize and a lot of things that are out there that we have. You know, it's a little. It's a bad analogy, but it's sort of like playing Monopoly, and you buy enough deeds, you buy enough properties that pretty soon, almost every roll, somebody's landing on your property. Right? You just, you know, and we're in the process of building those houses and hotels where we can collect a little rent as people land on our property. We own enough of the real estate in the game that, you know, that if we're playing with four or five players, every time, once everybody rolls, one or two of those people are gonna land for an opportunity for us. You know, business hadn't changed since you played Monopoly when you were in fourth grade. All right. I realize the last question before cocktail hour. I don't wanna delay. You're our last question? I-I- He's actually holding us up. He's holding us up. All right, you're our last question. I will. Be a very good one. I will make it very quick. You mentioned steward of capital, and you mentioned market volatility. I just wanna ask, you now have first lien bonds, secured bonds trading sort of 9% yield, which some would consider very attractive. You have short-dated bonds, the 2023 and 2024 maturities trading at pretty steep dollar discounts to par. Then you have longer-dated bonds trading now in the low 70s. Just curious, when you say steward of capital, you know, would you think about potentially using some of the capital for any of those bonds? Then the last question, and I hate to end on something generic, but what keeps you up at night? This is, you know, we've learned a lot today. You know, thanks for bringing us here. When you look at the challenges ahead, what sort of what ranks high in terms of keeping you up, and you can't say your wife? That's it for me. I didn't hear all the questions about the bonds. One was what keeps you up at night. I'll just answer that one. It's you. No, I mean, the thing, I always worry about the things we can't control, so the government keeps me up at night. I never would have thought that an agreement would. We were fighting with T-Mobile like cats and dogs. We finally came to an agreement. I would have thought that the government would approve that, would have approved that within days, certainly not still going within months. You know, Washington always keeps me up a little bit. Having said that, for the first time, while they were skeptical, they were very skeptical about it. In 2018, some of you know this, you know, commissioners said, "These guys better build their network, and by 2019, or we're gonna take their license away." With tremendous courage on this company's part, we said, "That is not the right thing for this country." We spent $500 million building an IoT network. Had Washington been a bit more, if Washington knew where things were going, we wouldn't have had to do that, and they would've been more of a partner for us. Now, you know, we actually are helping, and our partners are bringing leadership back to the United States. That doesn't happen if we build the network that the FCC wanted us to build in 2018. I think that always worries me. Again, as I said before, I certainly look at where the markets are today, where it's gonna take time for the markets to settle down, and you never know where. We don't control the Federal Reserve. We believed years ago that inflation was gonna happen based on supply of money, which, you know, they haven't changed the law of. Milton Friedman kind of just watches, read his books. They haven't changed economics. We, you know, our company's built for an inflationary environment to some degree because we have long-term contracts. We have ability to price our customers and change it every month. Our MVNO deals are long-term and have deflators. There aren't gonna be many places you can go to invest your money with inflation. I think telco providers and particularly DISH will be some of them. You know, I know I didn't answer your whole question 'cause I didn't hear it. We can talk about it. You know, we're gonna be out there in reception, and maybe we can do that. Well, thanks, everybody. Any parting words of wisdom before you go up here? No, I know you guys have been want to do something like this. We're really, again, because we think we're ready now. We appreciate people taking time out and coming. Very good attendance, and we'll try to do a little bit better job as we get farther along, over the next several months to give you a little bit better idea. I know we didn't give you enough to run all your models. I gave you everything you needed for your model, by the way. I said, I'm now confident we're gonna be a Fortune 100 company. For your model, the, I think the 100 largest company in the United States is up, is $30 billion. $30 billion, run a margin, you're ready to go. Now, you're not gonna tell your boss that. Don't tell your boss that. I mean, you can go up there and run your algorithms and run your ratios and run your all your stuff and you know twist yourself into a pretzel. Top Fortune 100 company, margin, DISH. All right, thanks. Thank you, everyone.