Hello, and welcome to the Frontier Communications Investor Day and Second Quarter 2021 Conference Call. My name's Emma, and I'll be the operator on today's call. If you wish to ask a question st the end of the presentation, please press star followed by one on your telephone keypad. If you change your mind, press star followed by two to cancel your request. I'll now hand over to Spencer Kurn, Head of Investor Relations. Please go ahead, Spencer. Good morning. Welcome to Frontier Communications Investor Day. This is Spencer Kurn, Frontier's Head of Investor Relations. I would like to note that the presentation can be followed within the webcast and is available in the Webcast in Advance section of our investor relations website. During this call, we will be making certain forward-looking statements. Forward-looking statements, by their nature, address matters that are uncertain and involve risks, which could cause actual results to be materially different from those expressed in such forward-looking statements. Please review the cautionary language regarding forward-looking statements found on page two of the presentation. On this call, we will discuss certain non-GAAP financial measures. Please refer to the presentation for how management defines these measures and certain shortcomings associated with these measures. Reconciliations of these non-GAAP measures to the closest GAAP measures can be found in the presentation. I am joined on the call today by John Stratton, the Executive Chairman of the Board, Nick Jeffery, President and Chief Executive Officer, Scott Beasley, Chief Financial Officer, and Veronica Bloodworth, Chief Network Officer. I will now turn the call over to John. Good morning, everyone. Thank you for joining today's discussion. Our presentation is designed to give you an overview of Frontier, to update you on our second quarter performance, and share with you the outcome of our strategic review, along with some very exciting announcements. Overall, we hope you'll leave today with a better understanding of our current opportunity and the transition we're undergoing to build a new future at Frontier. Our business continues to be well-positioned to win in key markets and to successfully execute on a unique opportunity to create significant shareholder value. We have a solid foundation of owned fiber assets and infrastructure, a significant customer base, and a strong competitive positioning. In the last 12 months, we've generated $6.7 billion of revenue and $2.7 billion of Adjusted EBITDA, which represents a 40% Adjusted EBITDA margin. Driving this performance are our 2.8 million broadband customers across both consumer and commercial businesses. As we've said before, a fiber-centric future for Frontier is the path forward. $1.1 billion of our EBITDA in the last 12 months has been generated from our fiber products, and we're investing to grow our fiber EBITDA rapidly. We have approximately 400,000 businesses within 250 feet of our fiber and over 23,000 cell towers within 1 mile of our fiber. As we continue to build out our network, we expect to grow and convert these attractive input grid opportunities. As I mentioned the last time we met, we've spent a significant amount of time and energy recruiting a talented new board of directors. We're excited to welcome Peggy Smyth, the former Chief Financial Officer of National Grid USA, to our board. Peggy brings exceptional finance experience and is ideally suited to chair our audit committee, having served as Chief Financial Officer and in other senior leadership positions within several major companies. We look forward to Peggy's contributions to Frontier as we continue to transform our business. With the addition of Peggy, we've been able to further round out the diverse experiences of our board, ensuring that all functional areas are well represented. We have high levels of subject matter expertise across key areas, including digital transformation, brand development, capital investment, operational efficiency, and telecom strategy. We've also strengthened our management team by attracting a number of talented executives since our emergence in April. Scott Beasley, our Chief Financial Officer, was most recently Chief Financial Officer of Arcosa, Inc., a North American provider of infrastructure products and solutions, and helped lead its successful public spin-off in 2018. John Harrobin has joined Frontier as Executive Vice President of Consumer. John joins from Audible, where he was most recently the Chief Marketing Officer. In his new role, John will be responsible for all aspects of Frontier's consumer business, including products, marketing, digital analytics, sales and distribution, and go-to-market strategy. Alan Gardner has joined Frontier as our Chief People Officer. Mr. Gardner was most recently Senior Vice President, Human Resources for Verizon Wireless, where he led centers of expertise encompassing the overall employee experience in support of 175,000 employees around the globe. Finally, Erin Kurtz has joined Frontier as our Chief Communications Officer. Erin has exceptional experience leading cultural change and building brands, most recently as the Senior Vice President of Communications at XPO Logistics. We're pleased to welcome Scott, John, Alan, and Erin to Frontier. Over the past 18 months, we've seen our Frontier family and the communities that we serve face significant challenges from COVID and other unprecedented natural disasters. These ESG challenges and their economical and societal impacts won't be going away. We need to adapt our business to better serve our employees and customers through these changes. Furthermore, we strongly believe better environmental, social, and governance practices contribute to the long-term sustainability and performance of our company. Today, I'd like to reaffirm our commitment to ESG. We've identified four core pillars where we can deliver impact. Our products. We continue to invest in connecting underserved communities and rural areas in our footprint, helping to bridge the digital divide. With growth in remote working, virtual medicine, and remote learning, connecting people to the digital economy has become more critical than ever. Our people. As part of our people strategy, we're committed to creating a safe, healthy, and inclusive environment in which our employees can thrive. We're also committed to investing in the communities where our employees live and work. You'll hear us sharing stories of this community engagement where Frontier employees are making a difference. Our planet. We recognize our responsibility as stewards of the environment and our opportunity to lead on sustainability in the industry. As we transition to a fiber-first company, we'll benefit from fiber's environmental friendliness. A passive technology, it uses less energy than competing technologies like cable. As we upgrade our copper network to fiber, we'll be on a path to reduce our greenhouse gas footprint significantly. We've also placed our first electric vehicle orders as we begin our journey to reduce the greenhouse gas footprint of our fleet. Lastly, our governance. We're committed to modeling the highest standards of governance. We have a board with diverse backgrounds and relevant experiences and skills, with separate chairman and Chief Executive Officer roles. We've implemented comprehensive compliance and ethics programs and have built a pay-for-performance compensation philosophy into our executive compensation programs. Moving to slide 10. As you can see, we've implemented a strong culture of performance accountability. Roughly 85% of the annual target Chief Executive Officer compensation is at risk, with financial, operational, or value creation targets, and these metrics are tightly aligned with the value drivers of our long-term strategy. As the chairman, I've spent a great deal of my time since I joined the board working with Nick to recruit a talented new management team, and then designing a compensation system that implements our deep focus on performance accountability. I'm very encouraged that we have the right team in place and the right compensation system that ensures that our people are focused on creating value and driving rapid change throughout the organization. With that, now I'll turn the call over to Nick. Thank you, John. Before we go through our financial highlights, I'd like to build on John's comment about ESG by spending a few minutes on our purpose. Our strategy is based on the purpose we shared last time, building Gigabit America. We will connect more areas, upgrade our network speeds, make gigabit speeds more available, and play a leading role in building the digital infrastructure this country will depend on for decades to come. This is a purpose we've regularly shared with all of our 16,000 employees, our external partners, and many other stakeholders, and is a purpose that has resonated deeply. Coming out of a tough 2020 of bankruptcy and the COVID pandemic, we have a team across the company who are energized to transform our business and to accelerate the deployment of our fiber gigabit networks that connect people and businesses to the digital economy. Moving to financial highlights. We continue to see healthy performance in line with our expectations. In the second quarter, we generated $1.6 billion of revenue, $298 million of operating income, and roughly $633 million in Adjusted EBITDA. A highlight of the quarter was our $278 million of adjusted fiber EBITDA. We've now gone through the granular cost allocation process to be able to share fiber and copper EBITDA, and we'll continue to share this number quarterly. Our fiber EBITDA was sequentially up from Q1 2021 as growth in consumer fiber EBITDA offset lower wholesale fiber EBITDA due to lower pricing with a key customer and fiber to the tower contract began rolling off in 2021. We expect a wholesale pricing headwind throughout the rest of 2021, we expect wholesale revenue to return to growth in 2022. Similarly, we delivered strong operational results during this quarter, particularly in our fiber build. We accelerated the construction of new fiber, reaching an all-time high of 157,000 fiber passings constructed. This quarterly performance was up 51% on our Q1 build and is roughly twice our total build in all of 2020. While Q2 was an excellent quarter for fiber build, we're focused on accelerating customer penetration, where our performance is also encouraging. The data from our 2020 build cohort is a small sample, and it's still in its early days. The penetration at the 12-month mark has been in the high 20s percentage range, ahead of our expectations, and Scott will discuss this cohort reporting later in the presentation. We continue to show progress on customer retention with consumer fiber churn of 1.5%, continuing the positive trend versus our 2020 performance. Our 12,000 fiber net adds marks the eighth consecutive quarter of positive fiber net adds, with a significant improvement in adds relative to the second quarter of 2020. Two months ago in June, we named John Harrobin and Mike Shippey as the new leaders of our Consumer and Business units. They both have demand generation at the top of their priority list. I'm encouraged by their progress and look forward to sharing more about these efforts later in our strategic review section. The last time we spoke to you in April, we shared our plan to build 495,000 new fiber locations this year. Since then, we've accelerated our build plan, increasing our target for 2021 to 600,000. We've made a number of changes to help accelerate this year's build, including adding a number of industry leaders to our team, expanding our pool of external construction and engineering partners, and improving our internal processes to enable faster decision-making. With this accelerated build plan, we're updating our CapEx guidance for 2021 from our initial target of $1.5 billion to a new projection of $1.8 billion. Roughly $250 million of this is from our increased build expectations for 2021 and 2022, whilst the remainder is primarily from an unplanned regulatory requirement to increase pole replacement in our Californian footprint. Our Adjusted EBITDA range remains unchanged from $2.4 billion-$2.5 billion, even with the headwind of approximately $50 million of EBITDA that we have from the changes in our accounting policies relating to our new fresh start accounting. Turning to slide 16, we'll spend the rest of today's presentation on the results of our strategic review that I started when I joined Frontier in March. This review has been shaped by a new level of data-driven decision-making about our footprint, our customer base, and our competition. It's the result of a tremendous level of internal and external work on the key drivers of value creation for our business. With that introduction, I want to share a preview of the major announcements we have planned for today. Our future is fiber, and we will continue to be the largest pure-play fiber provider in the U.S. Today, I'm excited to announce that we'll be accelerating our fiber build plan to have over 10 million fiber locations passed by the end of 2025. Consumer needs continue to change. Demand for high-speed fiber networks have been accelerated by the pandemic, which is why we're launching a best-in-class consumer offering on our fiber network, providing up to 1 Gbps symmetrical in both upload and download speed. We're not stopping there. Today, we announced that we'll be launching a symmetrical 2 Gbps offering in the first quarter of 2022, providing speeds that cable can't match to ensure our customers always have the best possible high-speed connectivity as new applications in household data consumption continues to grow. We've identified more than $250 million in run rate savings by financial year 2023 through operational efficiency and simplification initiatives. We've already begun implementing these right across the business. We'll provide more details on each of the announcements later in this presentation. Expanding our fiber footprint is at the core of our strategy. We plan to accelerate our fiber deployment to be able to reach over 10 million homes by the end of 2025. Along with growing our footprint, we'll be launching new best-in-class products to meet customer demands and help increase penetration across our fiber footprint. Of course, it's not just about winning customers, but it's also about how we engage with our customers. Our goal is to deliver an exceptional experience right throughout the customer journey. Lastly, we've looked across all parts of the company to identify opportunities to simplify how we operate and focus our operations. Through this process, we've identified significant potential to reduce our operating expenses and simplify the business. We'll walk through each of these strategic levers, and Veronica will start us off with a more in-depth review of our fiber deployment. Thanks, Nick. As Nick mentioned, we have an ambitious plan to pass 10 million locations with fiber by the end of 2025. Let's go to the next page where we can discuss some of the tailwinds supporting our build ambition. As you all know, customers are consuming data at an accelerating pace. Between 2020 and 2025, usage is expected to triple. This is driven by a few different factors. Demand for over-the-top video is expected to increase threefold. More importantly, new applications accelerated by COVID, such as video conferencing and gaming, continue to drive uplink traffic, which is expected to increase by a factor of 5x. Not only will consumption grow, we'll also continue to see a proliferation of devices inside the home that are connected to the Internet. We've seen the impact of these new demands on our own network. In the roughly 18 months since the pandemic started, uplink traffic on Frontier's network has grown more than the previous five years combined. Fiber is the best product to meet this rising demand for data, not only due to its superiority to alternatives like cable today, but also because we believe it will maintain its advantage in the years to come. Today, fiber has 34% faster download speeds, roughly 18 times faster upload speeds, and 42% lower latency levels than cable. This means that fiber is a superior technology to support the rise in demand. Looking forward, fiber will continue to outpace alternatives, featuring symmetrical download/upload speeds in a clear path to 10 Gbps service. Our assets have longevity with a much lower cost to maintain than alternatives. The fiber we are laying today will last more than 25 years and will cost less to operate and power, given that fiber is a passive technology with a lower energy requirement than cable. One of the most important points I want to cover is our advantage in deploying fiber. As an incumbent, Frontier has several advantages in building our modern fiber network, including existing right of ways, fiber network infrastructure, conduit and procurement, and scale. We are able to use these advantages to drive lower build costs, faster network deployment, more effective penetration, and more efficient planning processes. We have a network of external partners and suppliers that newer entrants or smaller players cannot easily replicate. Taken together, Frontier has the scale, resources, and established network to build at a competitive advantage to other players. Within our footprint, we are well-positioned competitively. In 88% of our footprint, we have one or fewer competitors, giving us a significant opportunity to build upon the strong foundation of our current network. Beyond favorable competitive conditions, our footprint is also concentrated in states with attractive demographic trends. Three of our largest markets experienced the highest absolute population growth in the country from 2010-2020, and we expect these trends to continue, driving consumers and businesses into our footprint at rates that exceed the national average. We are announcing today the acceleration of our build and our decision to add approximately six million locations between 2022 and the end of 2025. We refer to this six million locations as the Wave two of our fiber deployment, taking us to a total of 10 million fiber passings by the end of 2025. This is exciting for Frontier and the foundation for our future. Next, we will go into more depth on our deployment plan. As Nick mentioned previously, we are on track to deploy over 600,000 passings this year, bringing our total fiber passings to roughly four million by the end of 2021. We anticipate our deployment pace accelerating in the next few years, ramping up each year to a pace of roughly 1.6 million- 1.7 million locations per year by 2023. We expect to become more efficient at scaling and operationalizing our build. Now I'll spend a few minutes discussing build cost, which is a common question from investors and analysts. From 2022 through 2025, we expect our average cost per passing to be in the $900-$1,000 range. This range is an average that factors in the topography and household density within our footprint. It includes a modest degree of cost inflation throughout the build period. It also reflects our emphasis on accelerating our path to expansion and time to revenue. Our projected cost on Wave two is driven by how we strategically prioritize our deployment plan. To accelerate our overall value creation, our deployment plan balances several different priorities, including IRR, cost, scale economies, market level efficiency, and time to build. We have experienced a lower cost per passing this year in the $500-$600 range, as we have targeted numerous lower-cost areas and will continue to have pockets of build in the $500-$600 range. We expect our average build cost to be higher as we prioritize speed and scale. I'll also note that our build cost per passing can vary significantly quarter-to-quarter as we pass markets with different geographic and population characteristics. Finishing up on slide 27, we are confident that we can deliver against our plan. I'm very pleased with the progress we've made in a short period of time since I joined the team in April of this year. We've already taken the steps necessary to establish the foundation for our accelerated build. In materials and supply chain, we've expanded the number of external partners through an extensive RFP process in order to diversify our supplier base and insulate us from supplier-specific issues. For labor, we have rapidly added more labor vendors in both the engineering and construction space to handle our larger build volumes and also diversify our suppliers. For permitting, we are actively engaging with government agencies on solutions to support the increased volume of work required. Now I'll turn the presentation over to Scott to discuss how we'll fund our Wave two build plan. Thanks, Veronica. In this section, I will make several key points. First, our build plan is fully funded through early 2023 through a combination of cash on hand and accessible debt capacity. For 2023 and beyond, we have access to multiple sources of capital. We are committed to managing our balance sheet in a disciplined manner, and we are targeting a net debt to EBITDA ratio in the mid- 3s, in line with our peers. Finally, we are excited by the strategic optionality of the roughly five million passings that are not in Wave one or two. We refer to these five million passings as Wave three. At the end of Q2, we had roughly $1 billion in cash and $535 million of capacity on our revolve, representing roughly $1.5 billion of liquidity. In addition to the strong liquidity, we also have ample balance sheet flexibility. Our industry-low level of net leverage was roughly 2.2 times at the end of the quarter, giving us significant headroom under our mid-3s net leverage target. As I stated before, we will pursue a disciplined financial policy that will enable us to manage through a range of economic scenarios. We also have no significant debt maturities until 2027. We were able to use the past year to restructure and extend our maturities. Our timeline provides us clear runway throughout our Wave two build. We expect cash interest payments of approximately $365 million in 2021, down significantly from before the restructuring. Turning to page 31, this slide shows the stacked bar chart of our passings by wave. We expect to have four million fiber passings by the end of 2021. We'll add Wave two to get to 10 million total fiber passings by the end of 2025. Finally, we'll have an additional five million passings as Wave three. This Wave is not in today's disclosed set of upgrades, still has very attractive pockets that we will likely decide to upgrade over time. One potential tailwind for the economics of Wave three is government funding, which is designed to bridge the digital divide. As of the end of June, there has been more than $370 billion in legislation passed in 2020 and 2021 that has touched broadband funding. Another $65 billion in federal funding has been proposed as part of the bipartisan infrastructure framework, including funding for last mile deployments and accessibility. We expect to be an active participant in these programs and look forward to additional details as Congress considers this legislation. With our remaining copper footprint, we have at least four potential options. We'll be constantly assessing the business case to upgrade the footprint to fiber, especially as we get further along with our Wave two build plan. Internally, we can optimize the existing footprint and continue to operate our copper services, which are quite profitable. If we undertake a strategic review, we have a range of options that includes partnerships, asset swaps, or asset sales. We'll continue to assess our Wave three footprint, particularly as the industry gets more clarity on government funding to build fiber in areas that otherwise would not have met our return thresholds. To wrap up the fiber build section, let's recap a few of the key messages. Demand for high-speed internet is growing rapidly, with usage of both downlink and uplink capacity expected to increase significantly. Fiber is best positioned to meet these customer needs due to its higher symmetrical speeds and better technical performance, which will remain unmatched by cable and other technologies. Frontier's footprint and incumbent position provide us with significant advantages in building fiber. To capitalize on the opportunity, we will build an additional six million passings by the end of 2025. Lastly, our build plan is fully funded through early 2023, with a range of options beyond 2023. We are committed to maintaining a disciplined balance sheet. Regarding our Wave three footprint, we see potential upside from incremental government funding, including from the bipartisan infrastructure framework. Now I'll hand it back over to Nick to talk through the next several pillars of our strategic review. Thank you. As Veronica and Scott have just laid out our exciting fiber deployment plan, I will now cover how we plan to win customers in our expanded fiber footprint. As I mentioned earlier, we are now going to speeds where only fiber can compete. Our core network is already capable of 10 Gbps symmetrical uplink and downlink speeds, far superior to what cable can do today or will be able to do in the foreseeable future. Our current 500 Mbps to 1 Gbps custom offering is already superior to cable. Fiber has symmetrical upload and download speeds and lower latency, all of which deliver a better customer experience, particularly for the applications that have grown most rapidly during COVID, including video conferencing and gaming. In fact, Frontier was recently ranked the number one internet service provider for gaming due to our high speeds, low latency, and no data caps. This leadership in gaming will continue to grow as we upgrade our network. In the first quarter of 2022, we launch our 2 Gbps service. With 2 Gbps services will enable next-generation experiences such as advanced augmented reality and virtual reality, cloud-based gaming, and multiple 8K streams. Our network speeds will empower the low latency, lightning speed technologies that are already on the near horizon. Finally, we are already in advanced planning to launch a 5 - 10 Gbps ultra-high speed offering. Our 10 Gbps speeds will revolutionize how broadband can be used, including advanced digital healthcare procedures such as tele-surgical operations and supporting the widespread use of hologram-like 3D video conferencing. These next-generation use cases are only feasible with high symmetrical speeds and low latency, all of which is delivered by fiber, performance that cable can't and won't be able to match. On the next page, we'll talk about how the high-speed performance gaps cable will only continue to grow. While we're excited about the groundbreaking network speeds that we're launching, we also have made improvements to our current consumer offering, bringing best market speeds and value to our customers. In July, we launched best-in-class speeds with our symmetrical 500 Mbps product and market-leading top speeds with our symmetrical 1 Gbps offer. With both plans, we supplement our market-leading speeds with transparent everyday pricing, waived activation fees, unlimited data, and bundling flexibility. We've seen a great initial reaction to our new consumer offering and are encouraged by its early results. Beyond delivering the fastest speeds and the best prices, we're working to transform the entire customer journey to continuously deliver excellent service. One of the key elements to this is the installation process. For any of us who've had to wait for hours, days, or weeks for a cable company to come and connect our homes, it's a major hassle and a huge inconvenience. At Frontier, we understand this pain, which is why we've already launched our Next Day Install program to provide customers with the convenience of choosing when they can have their service installed right down to the next day or even over the weekend. Our initial launch has yielded great results, with roughly 40% of our new customers opting into the Next Day Install program, and i t's also proven to be a choice driver for our customers, delivering a 5% increase in order closure rates and a 15% reduction in cancellations between the time of order and the time of installation. Our initial focus today has been on the consumer segment. We also have significant opportunities to grow our commercial business. Our addressable commercial market is over $8 billion, with more than $5 billion coming from Small and Medium, or SMB-sized businesses. We're updating our business-to-business product portfolio to better meet the needs of the SMB segment. We're well positioned to serve this segment, as we have more than one million SMBs within our footprint and can address their needs for core connectivity across broadband, voice, and value-added services such as security and technical support. Similar to our consumer offering, we will be delivering best-in-class products to our customers, launching high-speed 2 Gbps fiber services in the first half of 2022, and gearing up for a future release of ultra-fast 10 Gbps services in the future. Of course, we recognize that our business customers have different needs to consumer customers, and we're updating our portfolio of business products and services to meet these needs. We've already updated our suite of business-to-business products to include those that are most critical to our SMB business customers, including multi-device security, cloud backup, and mesh Wi-Fi. We'll continue to develop our offering to provide services such as business identity theft protection, office productivity tools, managed Wi-Fi, and gateway security. Stay tuned for more updates here, which we'll cover in subsequent earnings calls. Our customer engagement does not end with providing market-leading products and the best sales experience. We will provide great service throughout the customer journey and create deeper relationships, which over time, develop strong loyalty with our customers. We've identified four areas where we can establish deeper and more impactful relationships with our customers. Firstly, we're communicating a clear value proposition with easy-to-understand products, transparent pricing and billing, and excellent customer service. We're also providing more personalized engagement, offering a wider range of ways for customers to engage with us, including digital self-help, more readily available service guides, and updated, easy-to-understand self-help videos. Additionally, we're meeting customers through their channel of choice, whether that's digital through the app or chat, in addition to our more traditional voice channel for those customers preferring this way to contact us. Lastly, we're working to preemptively stop problems before they arise and ruthlessly eliminate customer pain points so that customers have fewer reasons to contact Frontier in the first place. We've already put agile teams in place whose full-time job is to eliminate customer pain points, and we're seeing strong early results from these efforts. In July, we had roughly 10% fewer calls per account than we had at the beginning of the year, and we've also seen customer complaints come down significantly since the start of the year. Our entire executive committee meets at least once per week to review customer pain points and make rapid decisions to ensure we fix them quickly. In the new Frontier, and for me personally, a great customer experience is at the very heart of everything we do, and we're committed to earning our customers' loyalty. To illustrate this further, I'd like to share a few examples from initiatives we've already started. To improve our billing and payments experience, we've launched updated billing and payment flows, including changes to simplify the information on the bill, and we've already started our e-billing migration to provide more billing optionality and a greener alternative to paper bills. Finally, we've expanded our payment option flexibility by launching solutions such as One Click Bill Payment and Express Pay. To ensure that customers are able to quickly connect to the right resources and support, we're optimizing our interactive voice response platform with artificial intelligence. We are also improving our IVR by adding customer-level and segmentation-based routing so that we can provide more personalized service, getting customers to the people who can help them more quickly. We've added new digital channels to provide customers with more options on how they want to engage with us, including more self-serve capabilities and chat functionality within our website and app. Finally, we've personalized our customer touchpoints, making sure that every outreach is meaningful and linked to their specific needs throughout the customer journey. The last of our strategic pillars is operational efficiency. We're committed to improving how we operate and eliminating inefficiencies within our processes and across our company. There are four core principles that we'll adhere to in order to simplify our operations. First, we'll focus on the most important value drivers, deprioritizing everything else. We have a long list of improvement opportunities but need to stay ruthlessly focused on the things that matter most to our customers and to our shareholders. Secondly, we are simplifying our ways of working, eliminating inefficiencies and freeing capacity for us to focus on what truly matters. Thirdly, as an organization, we need to make decisions more quickly. To accelerate decision-making, we need to reduce organizational complexity and bureaucracy. We're already midway through a root and branch review of the entire company organization to delayer, increase managerial spans, eliminate duplication, and align the entire company behind our objectives. This will deliver a flatter, leaner, and more focused company. Finally, we can't achieve any of these goals without building a culture of simplification across our entire organization. To this end, we launched a campaign to capture simplification ideas from every single Frontier employee, and more than 1,000 people participated in this campaign, and they submitted more than 2,500 ideas. We've highlighted a number of the representative ideas here on the slide. I want to highlight that these ideas could only have originated from our team who are working on the ground day in, day out. These initiatives have the potential to generate significant and recurring operational savings. I'm delighted with the level of frontline engagement this initiative has created. Scott will now walk you through the simplification decisions we already have in flight. Thanks, Nick. We want to highlight three of the key simplification initiatives already underway. With our growing focus on operating in a lean environment, we've identified an opportunity to consolidate and divest over 30 locations in our real estate footprint, representing more than 1 million sq ft of office and industrial space. Next, to better meet the shift in consumer preferences towards digital engagement, we will focus on growing our digital presence, and we'll close our brick-and-mortar retail stores. Finally, we will also review our ancillary non-core businesses, where the majority of revenue is low margin and non-recurring. Through a rigorous internal process that we have named Fit for the Future, we collaborated across multiple functions such as customer care, IT, network, and HR. We looked for ways to leverage technology and automation, revisit our existing policies, increase our productivity, and implement energy savings initiatives. We have already started implementing a number of these items, and we plan to make this relentless cost management a part of our corporate culture. In total, we anticipate a reduction of at least $250 million in operational expenses by the end of 2023, with $25 million realized this year and $100 million captured by the end of 2022. Additionally, we expect to generate at least $150 million in one-time cash generation from divesting non-core assets over the next several years as we put into effect the simplification initiatives that we discussed, particularly in real estate. Moving to slide 49, I'll share a few points on our new team's commitment to building a culture of trust with investors, analysts, and other stakeholders. We recognize that we have to earn credibility as a newly formed management team and a company that has recently emerged from bankruptcy. We are fully committed to transparency, accessibility, and credibility. As part of this commitment to transparency, I'll close by reviewing our enhanced investor reporting package. Not only will we provide a number of key metrics on our overall fiber network, such as penetration, average revenue per user, total revenue, and EBITDA, we'll also provide additional transparency on penetration. We'll report on the quarterly penetration of our base fiber network, and we'll also show the penetration of each expansion cohort as it reaches a 12-month anniversary. As an example, for the passings that we built in 2020, penetration has been in the high 20s at the 12-month mark. Bear in mind that this is a small sample size of roughly 17,000 passings. While this 12-month penetration is encouraging, we don't expect it to be representative of the larger build plan. For the overall build plan, we expect a mid-teens penetration rate at the 12-month mark and then continuing to rise in subsequent years towards terminal penetration. This cohort reporting will help track the progress we're making on our strategic priorities of building and selling fiber. I'll now turn the presentation back to John for concluding remarks. Thank you, Scott. To recap the major announcements from today's presentation, we plan to deploy an additional six million fiber passings starting in 2022, increasing our reach to over 10 million fiber passings by the end of 2025. We've launched a best-in-class consumer offering on our fiber network, providing the fastest entry speed in the market and a market-leading top speed of symmetrical 1 Gb performance. We plan to launch our symmetrical 2 Gb offering in the first quarter of 2022, providing unmatched speeds to our customers and unlocking next-gen digital experiences. Finally, we plan to capture at least $250 million in run rate savings by FY 2023 through our operational efficiency and simplification initiatives, plus an incremental $150 million in one-time cash generation. We're building a long-term winner, and I'd like to walk you through a few of the milestones that we anticipate as we roll out our accelerated Wave 2 fiber build. In the second half of 2022, we expect our EBITDA to inflect upwards as we return to sequential growth after early 2022 declines driven by challenges in our copper business and the roll-off of CAF II funds. In 2025, we expect to complete the Wave 2 accelerated build plan to get us to 10 million+ passings. With that Wave 2 build complete in 2025, we'll come to the end of our capital deployment cycle and return to positive free cash flow in 2026. As the build matures and penetration increases, we expect to reach a Wave 2 steady state with extremely attractive economics. We expect to have 4.5 million fiber customers, over $4 billion of adjusted EBITDA, and an EBITDA margin in the mid to high 40s. All of these steady state figures are before we add in the potential fiber upgrade of our Wave 3 footprint, where we have potential upside. We believe our Wave 2 build plan can generate significant value for stakeholders. Using an assumption of $3,000-$4,000 of enterprise value per fiber passing and a more modest assumption on copper, our 2025 enterprise value would fall in the range of $32 billion-$43 billion. We have tremendous work ahead of us to execute on our strategic plan you heard Nick lay out. This valuation range is within reach with solid execution. We've covered a lot of ground today. I'm very proud of the board and the management team for the speed with which they've made decisions and developed our strategic plan. I'll close by bringing the Frontier investment thesis all together. There is a strong and growing demand for fiber, driven by growing household data consumption. As new use cases emerge, these trends will only accelerate. Fiber is a superior product for a number of reasons, including symmetrical upload and download speeds that far exceed cable's capability, lower cost of ownership, driven by fiber's passive technology, and lower latency levels that enable important use cases like video conferencing and gaming. We operate within a favorable market structure. As you'll recall, we have one or no competitor in 88% of our markets. As you think about fair share penetration, we know that 45%-50% with superior product is well within reach. We have a clear strategy and purpose. We are building Gigabit America to connect Americans to the digital economy. We emerge with ample liquidity and a strong balance sheet, providing us with access to capital to fund our strategy. Lastly, we've attracted a strong and experienced leadership team who are singularly focused on executing the strategic plan we've laid out today. We thank you again for joining us this morning and are now ready for your questions. Spencer? Thanks, John. Operator, we're now ready for Q&A. Thank you. If you wish to ask a question, you can do so by pressing star followed by one on your telephone keypad. If you wish to retract your question, you press star followed by two. There'll be a brief pause while a queue is formed. Our first question today comes from Jonathan Chaplin from New Street Research. Jonathan, please go ahead. Your line is now open. Thanks. I'm going to be really obnoxious and ask three questions, if possible. I think it's not entirely my fault the presentation is so dense. There's a lot to ask. Nick Jeffery, first for you, what share do you think you have in SMB at the moment, against the market share opportunity that you put out there? When do you think the commercial wholesale segment ultimately stabilizes? For Veronica Bloodworth, the 2 gigabit per second service that you're going to launch early next year, will that just be in the new fiber markets, or will that be across the entire fiber footprint? I'd love to get a better understanding for what you have to do in existing markets to prep the plant in order to do that. For Scott Beasley, when is steady state $4 billion in EBITDA? Is that 2026? In terms of getting there, is it $250 million of costs out, and everything else basically comes from revenue growth? Thanks. Yeah. Jonathan, hey, it's John Stratton. That's a three-fer. It's good. Wonderful. We threw a lot of information out. It's fair that you throw a lot back at us. Nick, why don't we start with the small medium business segment. Just maybe broadly, your thoughts on market opportunity, the size of it and the like, and just sort of inflection points as you move forward. Yeah. Jonathan, thanks. Great question. I mean, look, the first thing to say when we think about the small medium in this segment for Frontier is that it is a very large addressable market for us, as you heard in the presentation, of many billions. The company has historically not been focused in this segment really at all. It focused on larger enterprise customers who have more complicated needs, arguably are more difficult to win, and more expensive to serve. The way that we thought about that is really perhaps in addition to maintaining the excellent run rate we have with large customers, we should really refocus our business-to-business efforts in the SMB market. The reason for that is SMB customers have a great need for our core product, symmetrical high-speed fiber services reliably delivered, and then packaged with a whole range of value-added services such as security, theft protection, office productivity, and so on. All the things they need to be successful as businesses. Once upon a time, a long time ago, I actually founded a business myself as an entrepreneur, and I can remember what it's like to be an SMB. The thing you really want is to be able to focus on your core business and not worry about things like your broadband working, or have you got enough capacity, or where do you buy your office productivity tools for. I really know firsthand that customers who are smaller want to buy the kind of services we're focusing on. That's where we're going to focus our business-to-business efforts. We think there's a lot of growth potential there. We don't disclose our market share, although I will say it's low, given that it hasn't been our focus historically, and that's really the opportunity for us to grow very rapidly. To the second half of your question, our wholesale business, we expect that to return to growth late 2022 as the repricing initiatives we announced at our last quarterly call flow through the system, increase our competitiveness, and we start to win more business there. Yeah. Thanks, Nick Jeffery. I think, Jonathan Chaplin, that's a pretty seismic shift that we're making in the commercial segments, and a very logical one. Nick Jeffery was on this in, I think, the first 7 minutes of his tenure. As opposed to focusing on global enterprise accounts, small and medium business who live and work inside our footprint on network is a great opportunity. To Veronica Bloodworth, the question was about 2 Gigabit service and how pervasive that will be, and maybe just take a minute to also talk about the way you're future-proofing the path forward from two all the way to 10. Yeah. Jonathan, on your specific question around, are we 2 gig capable? The quick answer, and what do we need to do to get there from a network perspective, the quick answer is nothing. Our network today is already not only 2 gig capable, but it's 10 gig capable. Frankly, since 2019, we've been deploying PON equipment that is capable of upgrading to all next generation PON technology, including NG-PON2, 25 gig PON, and 50G PON with simply an optics change. This ensures a rapid time to market with very minimal investment. The hardest part is getting the fiber in the ground, and once that's done, we literally just change the electronics on either end to upgrade it so we can scale very quickly. The bottom line is, we're good to go from a network perspective. Yeah. Awesome. Thanks, Veronica. Scott, the last part of the question was around steady state, and I know we're not super specific, but maybe just give a feel for the way we ramp in penetration, the way we think about the way the build progresses, and then how you then follow on the market penetration. Sure. Thanks for the question, Jonathan. On steady state, you asked kind of how long after, and the way we think about penetration is, as I said in my prepared remarks, probably the 15%-20% range after 12 months, growing to the mid-20s, 25-ish to 30 after 24 months, and then ramping from there to terminal penetration in the mid 40s. It's not two or three years after we finish the build in 2025. It's several years longer than that. We expect rapid penetration. We've had encouraging early results from the penetration in this early cohort that admittedly was small, but very encouraging. That's where we project steady state. Great. Thanks, guys. Okay, operator, next question. Thank you. Our next question today comes from Brett Feldman from Goldman Sachs. Brett, please go ahead. Thanks so much for taking the questions. I have two. We get asked a lot about 2P execution challenges that the company is going to face as part of this project. The first one is a question for Veronica, which is, you're looking to more than double and nearly triple the pace at which you're deploying fiber. Is that something that you can do with the workforce and the resources you have today, or is there a key challenge or two you need to overcome in order to be able to ramp to that pace? The second question is, the Frontier brand, obviously, lost some of its luster over the last few years. The cable operators are executing very well. Everyone on this call knows fiber is technically a better product, can you change consumers' minds about Frontier under the current brand? Do you need to reintroduce it or potentially change it? Thank you. Yeah. Thanks, Brett, i t's John. I'll pass to Veronica in a minute. The thought about the speed of the build, we thought it was pretty important. Normally in a meeting like this, you might show a year or so of future forecasting, gives people a chance to get into it. Given the longer-term nature of this meeting today and our intent here, we thought it was important to be pretty precise and transparent with regards to what we'll build and how quickly we'll do it. Veronica has now had the benefit of more than a week on the job to be able to really dig into this stuff, as opposed to when we first emerged, she was just getting started. Maybe, Veronica, talk a little bit about the supply chain from a material and labor perspective and your confidence level in terms of getting from the current pace to the 1.6 million, 1.7 million that we'll be doing in future years. Let me first address the fact or the elephant in the room that we are not experiencing any material delays at this time. I know that keeps coming up. We do expect, as is the case with any large and complex build, that we'll deal with various issues along the way, which could entail material shortages, and if we do, we will let you know. Just know that up front. We have put mitigation efforts in place to avoid material shortages, like diversifying suppliers, changing our on-hand inventory accordingly, and then, of course, going from what was transactional type contracts to more commitment type contracts. To John's point, we went through a lot of introspection before we looked at the pace of the build. I'll just tell you, operationally, we can build at a faster pace than what's shown here. We have the operational capability to build faster. Keep in mind that our plan, as you pointed out, we're already expecting to nearly triple the scale of our build over the next few years. I wouldn't expect much variation from the plan we set forth today. That is a big leap from where we stand today. We already know the areas where we could potentially be constrained, and we've already put the vendors in place through RFPs. Again, we hit on the materials and what we're doing there. We've been working with the jurisdictions to give them forecasts of what permitting may lie ahead, and we're working with utility companies to make sure they can get the paint on the ground so that we can actually get this fiber going. At this time, we have the operational capability to even scale faster than what's shown here, and we feel good about the build we laid out. Yeah. Nick, I think the brand question is a perfect one for you to answer. Just your thoughts on how we look right now and your observations about the brand as it stands and our ability to build the growth of this business with the right orientation towards consumers and how they think about our company. Yeah. Thanks, John, and Brett, really great question, and one obviously we're putting a lot of thought and effort into. It's also an area where I've got some prior experience of repairing a fundamentally damaged brand. Of course, the brand is so much more than just the logo on the side of the truck or the logo that we put on a building. It runs deeper in an organization. I profoundly believe that a brand is what a brand does. We're changing what we do very materially right now. Even in the relatively short three months or so that I've been here, we're already seeing NPS start to tick up. We're seeing the number of calls into our contact centers coming down. We're seeing the number of complaints coming down. We're seeing our commercial metrics improve and so on. What we're currently doing is we're actually in the middle of a full review in some depth of the brand, its attributes, and customers' attitudes towards that. Where we take it, we haven't yet decided. It could be that we double down on refreshing the existing brand and re-energizing that. We might look at another brand or maybe a sub-brand. Much more to come on that. Our core focus is on changing what we do, because without that, no brand has real substance. That's great. Thank you. Thanks, Brett. Operator, we're ready for the next question. Thank you. Our next question today comes from Phil Cusick from JP Morgan. Please go ahead, Phil. Your line is now open. Hi, guys. I have one question with 11 parts. Maybe I can concentrate it down. Just first a clarification, was that 4.5 million customers exiting 2025 or was that an eventual number? I'm sorry if you hit that with Chaplin. I wasn't sure. Yes, that's the eventual number as the build that we make in 2025 matures towards terminal penetration. That makes sense. Okay. How concentrated are these Wave 3 assets? Are they in sort of random pockets here or there, or are there concentrations that you think could be sold if the right buyer came along? Yeah, Phil, it's John. It's a mix, a combination of things, really. We're really looking hard at this. There is a notion here that this Wave 3 could unlock really meaningful value for the business. Every week that goes by, we feel more strongly about that point. Initially, we had a notion that said maybe the best thing might be to just optimize the performance of those markets. They stay copper and sort of we do our best to improve our performance there and utilize the value that's created there to help offset or to invest in the core build. Increasingly, we're taking a more aggressive approach to this. There's a wide range of possibilities for us there. From the most simple, you divest the asset or assets, plural. Their value, their implied value based on some of the transactions that have been happening recently is on the rise. Is there a partnership or a joint venture or is there an organic build that we might endeavor to do? One of the things that we will not sort of convey here is that this is sort of linear in terms of the sequential approach to it. We are locking down our Wave 2. It's very important for this management team to be able to zero in and focus on execution against the Wave 2 objectives that we've described today. Concurrent with that is this review of options for what we call Wave 3. You'll hear more about that from us. One of the things that we need to see shaken out is just a better understanding of what ultimately Congress may decide to do and the states may decide to do in terms of their broadband investments. Clearly, that can change the calculus on some of these markets as we go forward. Thanks. I'll follow up later. Thanks very much. Thank you, Phil. Thanks, Phil. Operator, we're ready for the next question. Our next question today comes from Greg Williams from Cowen. Please go ahead, Greg. Your line is now open. Great. Thank you for taking my questions. I have two questions. One on the timing of Wave 3. You just said at the end there that maybe Congress can change the calculus of Wave 3. Is that really what's maybe inhibiting you from possibly selling those assets? We just saw last week, or just a few days ago, one of your peers selling, and infrastructure funds and PE are certainly interested. What's stopping you? Is it valuation or are you looking for maybe Congress? Second question is on the non-core businesses that you said you'd review and possibly sell. Can you just give us a flavor of what sort of non-core businesses you're speaking of? Thank you. Yeah. I'll hit the first part, Greg Williams, and then I'm going to ask Scott Beasley to take the non-core piece. On the timing of Wave 3, we're working very assiduously to create a highly disciplined approach to everything that we do. Given the massive amount of value that we can unlock in what's described in our Wave 2 initiatives, it was very important for us as a business and then with the board to gain alignment around what's in Wave 2, get that locked down and now go, get it done. Wave 3 has a bit more complexity because of the fact that the option range is pretty wide. As you would imagine, we are getting a substantial amount of inbound interest from all manner of different players, people who are either strategics or financial investors who would love to jump in and work with us on Wave 3. We're needing to just evaluate what is the best range of outcomes in terms of that analysis. A piece of that is certainly the idea around broadband infrastructure funding that may come from the federal or state side. It's obviously something that would potentially change the math in certain regards and in certain jurisdictions, but it's not the leading factor. It's really just a matter of having the discipline to take one step, two steps, three steps, and that's how we go forward here as we roll. Maybe, Scott, can you take the question about non-core? Sure. Thanks, Greg. As we think about non-core, these are not our network businesses. These are either real estate assets. We have a set of low-margin services business, low-margin product businesses. Obviously, I don't want to get into too many specifics, but these are not network assets that were in that category. Got it. Thank you. All right. Thanks, Greg. Thanks, Greg. Operator, we're ready for the next question. Our next question today comes from Simon Flannery from Morgan Stanley. Please go ahead, Simon, your line's now open. Great. Thanks very much. A couple of questions on the fiber. First, on the base fiber, the penetration level has been fairly stable here in the low 41% range. When do you expect that you'll be able to accelerate that? It did tick down sequentially. Just any color around that would be great. More, where are you getting the adds from? Are these cable switchers? Are these when people move house, new builds, people with no broadband? Any color around what you're seeing your customer gross adds as a sourced mix would be great. Simon, good morning. I'm going to ask Nick to take those questions, both of them as they face the market. One of the great advantages of a 12% market share in the copper properties is we certainly do have some upside opportunity to gain share. You are probably familiar with the fact that we have been making some pretty meaningful changes in the management team here. Two of our folks that have joined most recently or been assigned most recently are Mike Shippey and John Harrobin, who respectively have the P&L responsibility for the commercial and consumer business segment. A good amount of work that's being done right now is quite foundational in terms of our routes to market. That's, for us, the next wave of value creation here. Maybe, Nick, you can talk a little bit more to how you're feeling about both the consumer and the commercial sides for base and expansion networks. Yeah. Thanks, John. Simon, great question. You're right, first of all, just to say that penetration in the base is roughly flat at the moment. We are seeing, however, early success in penetrating our expansion markets, although we've much more to do there. If I can just magnify the point John's just made. We've got two new very talented members of the leadership team. For instance, our new head of consumer, John Harrobin, has been in the business seven weeks, and is already making a tremendous impact with our new offer that we've described here, and where we're starting to see some really encouraging early success, particularly in our expansion markets. Really the key thing to call out is it's really early days. These initiatives are still spooling up. We've got to do more growth and expansion. We've got to accelerate in the core. Really this is work in progress. There's lots ahead of us. What we are undertaking in this presentation is to be very transparent with the analyst and investor community in the future on exactly how our penetration by cohort, both 12 and 24 months, evolves over time. You can build those penetration growth rates into your models and get great transparency on how the business is actually performing. Still very early days on that, so I'm afraid you're going to have to watch this space a little bit. As to where the customers are coming from, it depends a little bit on firstly where we're building. If we're building in what was previously a copper-only area, then of course these are new fiber customers, and we're seeing great traction there, as you'd expect if you're moving from copper to fiber. We're also taking business from cable as well, and you can see from the way we've priced and bundled our new offer, which is described on page 37 of the presentation, that we are pricing to attract new customers and to build ARPU across the business. Yes, we're taking business from cable. Yes, we're taking new customers as well. What% are new to Frontier? Not a number we're disclosing at the moment, but you will see our penetration rates through the various cohorts Scott described earlier on. Yeah. That's a great disclosure. Thank you. Thanks, Simon. Operator, we're ready for the next question. Our next question today comes from Nick Del Deo from MoffettNathanson. Please go ahead, Nick. Hey, good afternoon, and thanks for taking my questions. I have one on commercial and one on build costs. First, on the commercial side of the house, you spent some time digging into the SMB opportunity. Can you talk about what you think you can do to enhance performance within the enterprise and wholesale categories, which has obviously been pretty challenged? When you combine that with what you want to do on SMB, what's the magnitude of the improvement in commercial growth you think you can achieve? Second, on the build costs, you're targeting $900-$1,000 per home in Wave 2. At least in the materials that Frontier had made public during the bankruptcy process, I think those numbers implied something like a $600 cost for the first 3 million homes, something to that magnitude. Assuming that hasn't changed a whole lot, it seems to imply a fairly steep increase in cost as you move down the deployment curve. Is that a fair observation? What's the magnitude of the impact of some of the items that Veronica noted, like speed and focus on market density on the costs? I'm going to, in a second, I'm going to ask Scott, we'll do this in reverse order, if that's okay. Sure. I'm going to ask Scott to talk to bill cost a little bit, and maybe with augmentation from Veronica as needed if he screws it up. On the bill cost, one of the things that's really important for us to point out here, and I think it's evident, but we should probably be even more explicit. All of the materials that we prepared during the course of the bankruptcy were very helpful, I think, in terms of it showed a range of options, a range of scenarios, a range of possibilities, but it wasn't specific to any particular strategic approach going forward. I think the group that helped us transition through the restructuring, left the actual what is the strategy appropriately to the new leadership team that came in post-bankruptcy. With that said, if you look back at those disclosures and the ones that we were zeroing in on during the course of the case, what you would have seen was an orientation that's almost academic. It was a stairstepping approach that said we go from the highest IRRs, 25%-30%, to the next highest, 20%-25%, the next highest 15%-20%, et cetera, and you sort of broke it up into neat little packages that way. While that was, I think, useful to the marketplace to understand what value was sort of sitting inside of our copper asset base, the reality is you would never build that way. That would require you jumping around from state to state, city to city, town to town, block to block, almost cherry-picking your way through the highest to the lowest of value, and it would take you probably 20 years to actually build anything out if that's how you did it. Our orientation to speed, you've heard us say this a couple of times, speed is a critical success factor for us. What speed allows us to do is many things. It allows the efficiency of the build to be improved. When we talk to Veronica's approach to making longer-term commitments to her partners in supply chain and labor, some of that is enabled by a rapid build that's efficiently delivered by those partners. It's good for us, but it's also good for them. The second thing is, when you have a larger cluster in a local geo, the ability for Mike Shippey and John Harrobin to go and market to that audience and to go and penetrate rapidly is also enhanced very meaningfully. The other thing I would say on this is, remember, regardless of what it is that we're costing out in terms of any of these jurisdictions, we have always that inherent incumbent advantage, which you heard Veronica talk about in our prepared remarks. This 20% cost differential, the speed with which we can build it given the existence of our fiber assets that are blown through conduit, et cetera, is something that is preserved throughout the whole process. We could talk a bit about this magnitude, but almost if you would, Scott, speak to this and also how you think about it in terms of the resultant returns on investment. Sure. Thanks, John. Wave 1 is a smaller scale, very targeted build. The $500-$600 per location was that type of build. We're on target to hit that, and we feel good about executing the end of Wave 1. Wave 2, as you said, John, is a very different type of build, a scale build where we expect all the advantages you described. Even with the build cost of $900-$1,000, we still expect an overall Wave 2 IRR in the mid-teens. We do expect a modest amount of cost inflation, to the earlier question, that's built into the $900-$1,000, and even with that inflation, expect a mid-teens IRR. It's a really exciting IRR for a scaled build, that preserves the first-mover advantage and far beats the cost that any new builder would have if they came into the market. Okay, good t hanks, Scott. Nick, obviously back to the question about commercial, and I want to just make sure, Nick, I got the question right, but there was a point about, okay, so we talked a lot about SMB. What about enterprise and wholesale? How do you think about those opportunity sets and sort of broadly what the commercial markets could yield for us? Yeah. Great. Well, let's start with wholesale. Wholesale is an important segment to us, as I said earlier on. Look, can we just kind of step back a little bit and look back in time? Frontier had, for whatever reason, probably necessity at the time, I guess, kind of priced itself out of the wholesale market a little bit. That perhaps led to not such great relationships with a small number of wholesale customers who really matter. I'm really pleased to say that Mike Shippey has already taken a lead on resetting our pricing, making us more competitive, investing in rebuilding those relationships with a small number of customers that really matter in the wholesale segment, and doubling down on the great opportunity that is 5G cell site backhaul for large wireless carriers. It's a great opportunity for us, and as I said earlier, we've got 24,000 cell sites that are within a mile of our core network, and therefore a great opportunity to do exactly what wholesale should do, which is increase our returns and our network efficiency, filling spare capacity while our retail business grows. I'm very confident we've got the right strategy there, and Mike and his team are busy executing. On commercial or large enterprise, actually, we're having great success there at the moment, mainly with our Ethernet product. Again, if we take a step back, all of my experience in the B2B market, where I've spent a lot of my career, is that focus gets results, and you have to invest where you can compete and win most effectively. Frankly, for us, that probably is less about large enterprise customers than it is about SMB. Large enterprise customers have complicated needs, long sales cycles. They need a lot of investment, a lot of love, and generally generate lower returns than SMB customers that will tend to use our high-speed fiber services, very similarly to consumers in many ways, provided we provide the right suite of value-added services to go with that. Things as I said, like office productivity, desktop as a service, Voice over IP, and so on. I think on enterprise, we're going to keep the momentum going that we've got. We're having a good run with Ethernet right now. I'm sure that will continue. Our focus is going to be on SMB. That's where we're putting our investment dollars because that's where we think we can get the best return. Perfect. Thank you. That's great. Thank you, guys. Thanks, Nick. Operator, we're ready for the next question. Our next question comes from David Barden in Bank of America. David, please go ahead, y our line is now open. Hey, guys. Thanks for taking the question and having this event, welcome to all the new management team. I guess I have two questions and a quick housekeeping item. The first question, I guess, is for Scott Beasley, which would be, we've asked companies for a long time to break out what the fiber economics versus the copper economics are as you appear to be doing now and on a go-forward basis. The challenge has always been how you allocate everything behind the last mile drop. I'd be interested to know philosophically how you're approaching this, because I think there's a temptation to game the system, obviously, to make the fiber business look better than the copper business. If you could address that, it would be helpful. I guess the second question would be to draw a parallel to the mobile business. The Verizon of the world talk about their millimeter wave and their gigabit speeds, yet the valuation would suggest that a lot of people remain skeptical that there is a transformative application that really demands a gigabit or even 2 gigabits of mobile speed, let alone wireline speed. What gives you the confidence to believe that showing up with a 2 Gb product will make a difference in people's lives? How do you communicate that to people? I think that there's a lot of questions as to whether that really matters to people. It's good to have a bigger number than a smaller number for the same dollar number, but you're asking for bigger dollars. I guess my last question, if I could, and this one probably for Veronica, would be, you gave us the build cost, which was helpful. Could you give us the drop wire cost? What are you investing when a subscriber connects? What does that cost you to execute on? Thank you, guys. Yeah, okay. Good, Dave. Thank you, i t's good to hear from you. This is John. Maybe I will take the first one and then I'm going to ask Scott to pick up on actually the other two, if you don't mind. I think from a cost economics would be a good idea. John, perhaps I could add on kind of why do people need these services? Yeah. Do you know what? Why don't we start there, actually. Okay. Would you take that? Yeah, sure. Dave, thanks, g reat question. Actually, I was reminded as you were asking it of a small anecdote from my career of many years ago, too many years ago for me to actually remember. I wrote a business case, very detailed business case, in fact, for a previous company I worked for to prove beyond any mathematical doubt that a second transatlantic high-speed fiber optic cable was completely unnecessary, as the one that did exist would never be filled by the existing data requirements of the market. I was proved dramatically wrong on that. I think we see a little bit the same thing here. Now, I'm not a believer in build it and they will come at all. I am a believer in being data-led in our thinking. There is unequivocally no doubt that the growth in household data consumption is growing logarithmically. If we look on the very near horizon, there are a whole bunch of new products and services coming along which will only increase the rate at which households and indeed businesses consume data. I think it is an absolute certainty that households will require higher data speeds, and small businesses will over time. I'd add to that symmetrical data is just as important as speed. One stat that is in our presentation, but I'll just emphasize here, is that our uplink data consumption since the pandemic started has grown by exactly the same amount as it did in all of the preceding five years. That tells you that household and business usage patterns and application usage is changing dramatically and changing dramatically in favor of high data symmetrical services, exactly what we provide. I believe there are the use cases coming along. There are the products and services like multiple 8K TVs and the great thing, hopefully, in VR and AR and so on. I think symmetrical is incredibly important. Finally, I'd say to be completely transparent with you, of course, everyone wants the fastest data speed, not necessarily if they're going to use it either. We had this conversation with one of our teams yesterday, and I asked them why they owned a car that could drive 150 miles an hour, even if the speed limit is much less than that. The answer is because they like cars that can drive 150 miles an hour. There's a little bit of that in the way that we take products and services to market as well. People like new stuff, and we're providing the best new stuff that there is in the market. Perfect, Nick t hank you. Scott, maybe talk to this idea about how you provide a bit more clarity. Dave, one of the things that we think is very important as we've emerged from bankruptcy is to establish a consistent set of conventions and disclosures that we provide to investors every 90 days. These are long-term investments, one of the things we don't want to do is set it and forget it. "Hey, come back in five years, we'll let you know how we're doing." We want to make it a bit easier to do business with us on every front. That has to be inherent to our brand proposition, including with investors. The transparency here, it sets the targets that we'll then run to hard. We'll need to explain how we're doing as we go, the idea is to make it clean, clear, and simple. Maybe just a little discussion about this breakdown here with fiber and copper. Sure, Dave. As we noted at the Emergence call, we were in the process of doing a very granular cost allocation between fiber and copper. It was a very rigorous process. The team, over many months, went line by line to develop the methodology to allocate cost between the fiber and copper network. We're comfortable with the allocation that we laid out today, and we're committed to keeping that same allocation methodology going forward, as John mentioned. On the second point of your questions, so the cost to connect, what we typically think is a range in the $550-$600 per customer range. Probably at the top end of that to start, and then moving down as we become more efficient, utilize better technology to reduce that cost to connect. That's the rough range that we're looking at right now. Thank you. Thanks, Dave. Thanks, David. Operator, we're ready for the next question. Thank you. Our next question today comes from Frank Louthan from Raymond James. Frank, please go ahead. Great, t hank you. I wanted to ask about the sales team for SMB. Where are you with that from a hiring perspective and getting that team in place? I apologize if I missed this, but back on the wholesale also, can you comment on how you feel dark fiber sales will fit into this? What kind of dark fiber revenue you're getting currently? Is that a focus going forward or is that not part of the wholesale conversation? Thanks. Yeah. Hey, Frank. Obviously, Nick, we'll ask you to cover this. When you describe the sales team around that, maybe just open up the aperture a little bit, a little bit of your thought on a channel strategy more broadly beyond the feet on the street? Yeah. Great. Well, look, when it comes to SMB routes to market, the first thing is to say that this has not been the focus of Frontier in the past. We're very much building up from grassroots level here. That, I think, gives us a couple of great opportunities. Firstly, the market opportunity for us is very obviously large and very obviously under-penetrated. This is a fantastically attractive thing for salespeople to come to, for new channel partners to come to, and new product partners to come to, because there is a huge amount of upside in that. Now, as we said earlier on, Mike Shippey has only recently been appointed in that role, and he's right in the middle at the moment of hiring his top team and beginning to expand those channels. We'll think about it in the following way. We will clearly have our own direct sales channel. We'll be very careful about how we scale that, because in the SMB market, we have to do two other things. The first of which is be in the channels where these customers buy. That means we have to have a much stronger online presence. We have to have a stronger presence with local value-added retailers and partners, and we have to really build out that network. We have to make much more aggressive use than we have in the past of inside sales. The great thing about all of those channels is there's no rocket science behind any of them anymore. They're tried, tested. Plenty of people in the industry know how to make that work, and we're currently pulling that talent into the organization, and we're building out those teams as we speak. It's very much work in progress. No rocket science, but a team that we've got to scale. On dark fiber. Yeah, there will be some instances where dark fiber is part of our wholesale offer and is today. We have to think strategically about dark fiber as well. It's not something we would easily give to competitors, where that would diminish our own ability to compete at a retail level. We will think about it in certain very specific circumstances. Thanks, Frank. All right, g reat. Thank you. Bye. Operator, we're ready for the next question. Our next question today comes from Walter Piecyk from LightShed Partners. Please go ahead, Walter, your line is now open. Thanks. I just want to ask about competition. I guess both ways. First, on the point you're launching fiber, it seems like no one seems to have any concerns about the cable industry and fiber launching over them, based on somehow those stocks are performing. I think a lot of those management teams have talked about not putting much into uplink. I'm just curious, if you think that's lip service or as you build out these new markets and upgrade, you're going to expect some type of competitive response? Walter, I'll just give you a quick thought. That's John, my quick thoughts on that. Look, we have a high level of respect for our cable competitors. They've done a really good job of creating value for their shareholders and for their customers over the years. I want to say it's a different world when you're competing against a bunch of DSL providers stitching together what may be some fairly porous copper networks versus when you're now competing with a best-in-class fiber network. I think you need to take a measured approach to how you read into what the cable industry may choose to do. Of course, for us, that's not really our focus. Our focus is on what we need to do. It starts with building this best-in-class network and then the teams that we build around it. To ensure that we are able to convey its value. Why does it matter? You heard about the natural inflection point that we saw over the last 12 months around the uplink, the importance of that. You have multiple video streams going on simultaneously, high-speed gaming, very low latency required of that plant. It's going to probably force an upgrade cycle for our competitors at some point, but that's for them to explain to you guys as we go forward. In our minds, look, we think of it this way. We have a lot more. I guess I'm more interested, John, I'm more interested in how it relates to you, though, because in meaning that, how quickly can they respond? Obviously, and maybe you guys have data on this, uplink has grown faster over the past 12 months, 18 months than downlink, so it's obviously more important. We don't know what the new applications are going to be, but it sounds like based on what Apple has or has talked about. Yeah there's going to be more need for uplink. Let's assume you come in, you drop some fiber, and then these guys start losing subs left and right. How quickly do you think that they can respond with the capital investment? I am looking forward to your asking that question of our cable competitors in an upcoming call. We'll let those guys worry about. They won't let me on the call, so that'll be okay, let's go the other way then. Yeah, they're afraid to ask those tough questions, and none of my competitors will. On the DSL side of things, though, you're well aware of Verizon and what they're doing with millimeter wave and now C-band. How much of a challenge is that going to be on the DSL side of things, and even T-Mobile is talking a lot about 2.5 and getting 500,000 subs by the end of the year. How much of a challenge do you think that is to your subscriber base on the DSL side? Yeah look, we know that DSL is under some competitive pressure. We've already shed an awful lot of market share in those markets where we have DSL services. What I would suggest is that most of the alternatives are better suited to urban or more densely populated markets versus where we may have the concentration of our DSL tail. It's not a high factor of concern for us. Look, we model everything, and we're going to be mindful of all of the various threats that could come our way. That one, we discount a bit for that reason, at least as relates to our copper footprint. Okay. Finally, thank you, Walter- Can I just get one last one in, John, please? Sure thing. If you don't mind. No, go ahead. Again, given the relationship with Verizon and their interest in small cells, is there any conversation in terms of as you build-- you talked about having fiber next to 24,000 cell sites, but what about small cell and new developments? Is there an opportunity to partner with them to do something like that? Yeah, I wouldn't speak to any particular wholesale customer, t hey're all great, but a s you think about 5G and generations to come, the density of those networks is really going to need to expand almost exponentially. Regardless of the carrier, all of them will have a need to deploy meaningful levels of various distributed antenna systems, small cells, micro cells, pico cells, macro towers. That's a huge market opportunity for Mike Shippey and his wholesale team. As you heard Nick talk about it before, some of those moves that we made in the last four months or so to right-size our pricing, to make sure we get back into that market in a competitive way, we need to be a better partner to those players. We'll earn their business as we go forward, and then hopefully you'll see that value flow through our results here in coming quarters. Thanks, Walter. Yeah. Thank you. Thanks everybody. Okay, Spencer, I'm going to turn it back to you. Yep. Just operator, we'll take one more question. Our final question today comes from Matthew Harrigan from Benchmark. Matthew, you can go ahead. Thank you. I do like the Wave nomenclature much better than what was before. A lot more succinct, to say the least. Couple questions. One, hopefully in a perfect world, people would like a lifelike, holographic dinosaur in their living room and 8K Formula One AR and all that. When you really look at these advanced apps developing, do you think you're going to get a lot more price insensitivity? Is that something that is laid out internally in your business plan, or are you pretty wary of that for a number of reasons? I guess secondly, when you look at, I guess T-Mobile in particular, it looks like there's a lot of cheap and cheerful risk there. I mean, Nick has seen that in the U.K. and the Netherlands in those markets. I mean, you can argue the U.S. consumer is less sophisticated than the U.K. or Dutch consumer in some regards. Do you worry about the risk even to the new products as opposed to DSL, which Walter was asking about, just from people who see a snappy commercial and that's enough for them without being too objective on whether you're symmetrical and all that? Thank you. Yeah, I'm going to turn this over to Nick in just a minute. I would tell you that when you think about advanced applications, look, in a fixed environment, your ability to consume high velocity applications, whether it's VR, AR, et cetera, is at much greater level than it would be in a mobile environment. It probably means you're going to walk into walls if you're not careful or into traffic. We've seen that. If you look at broadband consumption on mobile networks versus on fixed networks, it is usually a 10x sort of difference in terms of that total consumption. The other piece of it, which is important, is it's not just app-related, it's also the number of users that are banging away at that same network. As you think about 4K to 8K and those kinds of things, you go multiple videos, you can get multiple users on multiple devices in the same household. This is where you get sort of the exponential consumption gains, and this is where fiber really starts to make a difference. Just Nick, last thoughts from you on, maybe if we can again, take it a step back. Your confidence, recognizing that there are many different players who may come at this market with different offerings and the like, how do you think about focusing your team on what we need to do to be successful here? Yeah, it's a great question. Thank you. Look, when we do take a step back and look at time series data, because I think Frontier is going to be, and is becoming, a very data-led company into the future. The history in our industry tells us a lot about the future. I don't think there's been a period where data consumption in households has slowed down or declined, or where new applications haven't been created by the interdependency between network speeds and what those speeds can deliver in terms of innovation. I think it's a reasonably good bet to assume that those applications are going to continue to evolve. Just as 4K TVs now are commonplace, you can buy them, you can have as many as you like. Five, 10 years ago, that would've seemed like pure fantasy. In three, four, five years' time, we'll see the same thing with 8K TV and other applications. I'm extremely confident on that. Your point about pricing stratification, I mean, we think about it in two ways. I mean, we already see a higher price point for higher speeds being something the market values and can sustain today, and we see it with our 1 gig per second service that's in the deck that you've already got. We'll see that extend with 2 gig and beyond because, as Veronica Bloodworth said, our network is already 10 gig capable and upgradeable to frankly beyond that, to 25 gig and 50 gig at relatively low cost. Each of those speed levels itself can command a new price point in the market and generally would if you accept received wisdom on pricing for new products and pricing curves and so on. That's before we get into the subject of other value-added services that we can hang on the back of those high-speed networks and we're currently evaluating. I think pricing ladders are something that have been a feature of our market, will continue to be over the future and something where we will be very disciplined in how we think about that and how we execute it. Your second question, I'm afraid I missed, so you're going to have to repeat it for me. Just, cheap and cheerful can have a lot of marketing resonance, as you've seen in the U.K. and also the Netherlands, even if the service isn't quite as good. Frankly, what T-Mobile's talking about right now is better than some HFC speeds not that long ago or even now for some customers. I guess this is an adjunct of some prior questions, but do you sort of look for the cheap and cheerful dance even in your fiber business to a certain extent as well as DSL? I know that was alluded to in a prior question. Yeah, look, I think when it comes to what do customers value, it's a mix of real things that have substantiators and perceived things. The really effective companies in our market, anywhere in the world, are the ones that blend those two things together in the most compelling way to customers so that they move to your service and then gain real value from its consumption. I'm not sure Frontier has been the most sophisticated company doing that in the past. I think you're now seeing us be slightly more sophisticated, but I know what we're working on, and it's a lot more sophisticated. I think if you just watch this space, you'll see us blend those two things together, the physical substantiators together with the perceived substantiators into more compelling offers to customers over time. Again, you're going to have to watch this space for that, I'm afraid, over the coming months. Spencer, back to you. Yeah. Good. Sorry, go on. That's perfect. Thanks, everybody. Hey, we appreciate it, w e went a little longer here, but wanted to make sure we got to the whole of your questions. Thanks for your participation today, and look, we'll try to be consistent and clear in our communications as we go forward. Obviously, a lot ahead but a gain, we appreciate your time this morning. Thank you, everybody. This concludes today's call. You may now disconnect your lines.