Slides
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Together, Building the Future MoffettNathanson 2025 Media, Internet & Communications Conference May 14, 2025
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Safe Harbor Statement 2 Forward-Looking Statements Certain statements in this communication may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended from time to time. Those forward-looking statements include all statements that are not historical statements of fact, including, without limitation, statements regarding the anticipated closing of the merger of Uniti and Windstream (the “Merger”) and the future performance of Uniti, Windstream and the combined company following the Merger (the “Merged Group”). Words such as "anticipate(s)," "expect(s)," "intend(s)," “estimate(s),” “foresee(s),” "plan(s)," "believe(s)," "may," "will," "would," "could," "should," "seek(s)," “appear(s),” “target(s),” “project(s),” “contemplate(s),” “predict(s),” “potential,” “continue(s)” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. Although management believes that the assumptions underlying the forward-looking statements are reasonable, the Company can give no assurance that its expectations will be attained. Factors which could materially alter the Company’s expectations include, but are not limited to, the satisfaction of the conditions precedent to the consummation of the Merger, including, without limitation, regulatory approvals obtained on terms desired or anticipated; unanticipated difficulties or expenditures relating to the Merger, including, without limitation, difficulties that result in the failure to realize expected synergies, efficiencies and cost savings from the Merger within the expected time period (if at all); potential difficulties in Uniti’s and Windstream’s ability to retain employees as a result of the announcement and pendency of the Merger; risks relating to the value of the Merged Group’s securities to be issued in connection with the Merger; disruptions of Uniti and Windstream’s current plans, operations and relationships with customers caused by the announcement and pendency of the Merger; legal proceedings that may be instituted against Uniti or Windstream following announcement of the Merger; demands on the Merger Group’s cash resources to make interest and principal payments on indebtedness and other expenses following closing of the Merger; changes in current or future state, federal or local laws, regulations or rules; risks inherent in the communications industry and in the ownership of communications distribution systems, including potential liability relating to environmental matters and illiquidity of real estate investments; risks associated with general economic conditions; and additional factors described in the Company’s reports filed with the SEC, including Uniti’s annual report on Form 10-K, periodic quarterly reports on Form 10-Q, periodic current reports on Form 8-K and other documents filed with the SEC. All forward-looking statements are based on information and estimates available at the time of this communication and are not guarantees of future performance. Except as required by applicable law, Uniti does not assume any obligation to, and expressly disclaims any duty to, provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise. Nothing in this communication will, under any circumstances (including by reason of this communication remaining available and not being superseded or replaced by any other presentation or publication with respect to Uniti, Windstream or the Merged Group, or the subject matter of this communication), create an implication that there has been no change in the affairs of Uniti or Windstream since the date of this communication.
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Uniti + Windstream Merger Overview
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Creating a Premier Insurgent Fiber Provider 4 Residential Households ~4.4M Fiber Route Miles(1) ~240K On-Net Locations(2) ~150K % Network Inventory Available ~75% Metro Markets 300+ Near-Net Locations(3) ~625K Fiber-to-the-Tower Connections ~12.8K Small Cell Connections ~2.6K Note: Data as of March 31, 2025. (1) Excludes ~9K fiber route miles that overlap between the existing Uniti and Windstream networks. (2) Represents on-net buildings connected to the combined network. (3) Includes ~300,000 locations on Uniti network and ~325,000 locations on Windstream network that are within 2,000 feet of the overall networ k. Company’s Combined Tier II and III Market Footprint Creates Significant Competitive Advantage
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Transformative Combination Unlocks Significant Value 5 Uniti and Windstream to combine to create a premier insurgent fiber provider with ~$4 billion in revenue and 240,000 fiber route miles covering 47 states within the U.S. Existing Uniti shareholders will own ~62% and existing Windstream shareholders will own ~38% of the outstanding common equity of the combined company(1), with certain of Windstream’s largest shareholders, including Elliott, rolling substantially all of their investment value in Windstream into the combined company New combined company will be well-positioned in rapidly growing market for digital infrastructure services, particularly in Tier II and III markets Combination accelerates growth, improves competitiveness and removes several dis-synergies and encumbrances, with additional levers for value creation and increased strategic optionality Compelling financial profile with meaningful synergies, enhanced cash flow generation and improved leverage that supports increasing shareholder returns (1) Ownership percentage excludes impact of non-voting warrants issued to certain shareholders of Windstream. Inclusive of non-voting warrants, existing Uniti shareholders will own ~58% of the outstanding common equity of the combined company and existing W indstream shareholders will own ~42% of the outstanding common equity of the combined company.
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Uniti’s Path Forward 6 FTTH Upgrade and Expansion Fiber Infrastructure Metro Market & Waves Expansion On-Net Fiber Focus Accretive Financing (i.e. ABS) M&A / SOTP Unlocks Network and Overhead Synergies Powerful Combination Accelerates Trajectory Opportunities for Further Value Creation Strong Underlying Fiber Infrastructure Combination Provides Complementary Coverage Networks and Avenues for Accelerated Growth & Cost Reduction High Yielding Accretive Opportunities Actionable Following Combination
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Bring Kinetic On-Net and Accelerate FTTH Build Plan Hyper-Focused on Accelerating FTTH Build Plan & Managing Non-Core Legacy Revenue (1) As of March 31, 2025. (2) Excludes ~9K fiber route miles that overlap between the existing Uniti and Windstream networks. (3) Represent percentage of total respective revenue that is generated on owned network. (4) Includes Managed Services and Windstream legacy TDM revenue. 7 Fiber Route Miles(2) 147,000 93,000 % On-Net Revenue(3) 95%+ ~15% % of Revenue from Legacy Services(4) - ~35% Homes Passed with Fiber - ~1.7 Million Uniti 240,000 240,000 - 245,000 260,000+ ~60% ~70% 95%+ ~30% ~25% < 5% ~1.7 Million ~2.0 Million ~3.5 Million Windstream Current Structure(1) Current (1) Year End 2025 2029 New Uniti
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$200 $50 Total AI TAM Digital Infra TAM Fiber / Network TAM $1,800 $40 $15 Total AI TAM Digital Infra TAM Fiber / Network TAM $300 8 Hyperscaler / Gen AI Opportunity Current Inference ~20% Training ~80% Source: Grand View Research, Appleby Strategy Group. Global Gen AI TAM Uniti Implications ▪ Substantial Increased TAM for Fiber ▪ Training Phase Used to Strategically Expand the Uniti Network with Economically Attractive Deals ▪ Inference Usage Will Grow in Significance and Accelerate MRR Growth 2030 $ in Billions $ in Billions Training ~20% Inference ~80%
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9 New Uniti is Well-Positioned to Capture Hyperscaler AI Growth Opportunities Differentiated High-Strand Count Fiber Customer Relationships/ MLAs Implemented Product Capabilities Distributed End Points ▪ Expanded TAM ▪ Diverse Product Set Serving Greater Number of Customers ▪ Exceptionally Well Positioned for Inference Phase Uniti WIN Uniti WIN Dark Fiber Lit/ Waves Uniti WIN
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Note: All data is pro forma for full year impact and was not prepared in accordance with Regulation S-X. Actual pro forma information prepared in accordance with Regulation S -X may differ materially from the information presented above. 10 Stable Core Recurring Revenue Base with Attractive Margin Profile ▪ Kinetic Consumer Revenue(2) Expected to Grow ~2% in 2025 ▪ Strategic Fiber Infrastructure Revenue(3) Expected to Grow ~5% in 2025 ▪ Managed Services Margins Expected to Remain Stable Despite Continued Decline in Revenue ▪ Adjusted EBITDA Excludes Potential Cost Synergies ($ in millions) 2025 Pro Forma Estimate Kinetic $2,045 - $2,055 Fiber Infrastructure $800 - $810 Core Fiber Revenue $2,845 - $2,865 Managed Services / Legacy TDM $900 - $915 Total Revenue $3,745 - $3,780 Total Adjusted EBITDA $1,545 - $1,575 Total Net Capex(1) $1,210 - $1,220 (1) Reflects intercompany elimination of GCI investments. (2) Includes Kinetic residential fiber and DSL only. (3) Includes Uniti Fiber, Uniti Leasing, and Windstream Wholesale excluding legacy TDM, government and resale revenue. New Uniti Financial Profile
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Merger Pre-Close Priorities 11 STATUS Present Unified Investor Relations Messaging with Windstream Refine Strategy to Simplify Dual Silo Capital Structure for New Uniti Execute Operationally at Uniti and Windstream DONE Develop Integration Plan to Achieve Planned Synergies Refine Expanded FTTH Build Plan Begin Strategic Review of New Asset Portfolio DONE DONE On-Track On-Track On-Track
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Current Uniti Overview
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2025 Priorities 13 Continued Best-in-Class Execution ▪ Targeting 2025 Strategic Recurring Revenue Growth at Uniti of 4% - 6% ▪ Targeting 2025 Strategic Recurring Adjusted EBITDA Growth at Uniti of 8% - 10% Optionality to Fund New Business Plan ▪ Ability to Expand Uniti’s Current ABS Facility ▪ Potential for Kinetic ABS Bring Kinetic On-Net and Accelerate FTTH Build Plan ▪ Expect to Close Merger with Windstream in 3Q25 ▪ Expect Kinetic Will Pass an Incremental 325K Homes with Fiber in 2025, Roughly Double from Prior Year’s Level; Reach ~2 Million Homes in Total
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1.9% 7.9% 2023 2024 2025 Estimate 4.9% 4.4% 2023 2024 2025 Estimate Strategic Recurring Financial Growth Growth Primarily Driven by Wholesale & Enterprise Lease-Up ($ in millions) 14 ~4% to ~6% Year-Over-Year Growth (1) Includes Uniti Fiber and Non-Windstream Uniti Leasing recurring revenue. (2) Represents annualized MRR as of the last day of the year. (3) Includes Uniti Fiber and Non-Windstream Uniti Leasing recurring revenue and Adjusted EBITDA. Excludes impact from Everstream transaction, revenue disconnected associated with early termination of legacy Sprint sites by T-Mobile, and major wireless contract renewals. (2) (2) $35 - $40 $365 - $370 Strategic Recurring Revenue Growth(3) Strategic Recurring Adjusted EBITDA Growth(3) 4% - 6% 8% - 10% Strategic Fiber Revenue 2025 MRR Growth Outlook(1)
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$11.3 $18.5 $11.6 $9.8 $10.1 $26.4 $20.2 $40.5 $15.1 $1.8 $7.6 $2.1 $3.2 $3.5 $24.2 $10.6 $34.5 $7.1 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 Gross Capex NRC Net Capex Success-Based Capital Intensity & Payback Trend Healthy Mix of Bookings with Average Payback(2) of ~15 Months 15 (1) Represents total net success-based capex for Uniti as a percentage of consolidated revenue. (2) Payback calculated as net capex divided by annual gross margin, assuming gross margin percentage of 80%. New Sales Bookings Budgeted Capex Net Success-Based Capital Intensity(1) 35% 34% 27% 2022 2023 2024 2025 Estimate 20% - 25% ($ in millions) ▪ Stable Bookings, Rising NRCs and Declining Paybacks Lead to Lower Capital Intensity
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$0.5 $0.5 $0.3 $0.3 $0.8 $0.6 $0.5 $0.5 $0.3 $0.4 $0.3 $0.3 $0.3 $0.3 $0.3 $0.4 $0.9 $0.9 $0.7 $0.6 $1.1 $0.9 $0.8 $0.8 67% 65% 68% 57% 66% 68% 51% 72% 2021 2022 2023 1Q24 2Q24 3Q24 4Q24 1Q25 Wholesale Bookings Non-Wholsale Bookings Lease-Up Bookings % Consolidated New Sales Bookings & Cumulative Lease-Up 16 ▪ Consolidated New Sales Bookings MRR of $0.8 Million in the First Quarter of 2025; Up ~40% from Prior Year Period ▪ Initial Aggregate Cash Yields on Major Wireless Anchor Builds of ~7%; Results in Combined Anchor and Lease-Up Cash Yield of ~27% (1) Wholesale Bookings include Uniti Leasing bookings, and wireless and wholesale bookings at Uniti Fiber. (2) Non-Wholesale Bookings include enterprise, E-Rate and government bookings at Uniti Fiber. (3) Represents percentage of total bookings that comes from lease-up sold on our major wireless anchor builds and lease-up sold at Uniti Leasing. (4) Calculated as expected annualized recurring cash flow on major wireless anchor builds at Uniti Fiber divided by the related n et capital investment on the anchor builds of ~$205 million. (5) Calculated as expected annualized recurring cash flow from lease -up sold on major wireless anchor builds from the time the project started through March 31, 2025, divided by the related net capital investment on the lease-up of ~$378 million. (6) Represents expected initial cash yield on major wireless anchor builds plus expected incremental yield from lease -up sold to-date. (7) Calculated as expected annualized recurring cash flow from lease -up sold to-date through March 31, 2025 at Uniti Leasing divided by capital spent to acquire fiber assets from Lumen Technologies (formerly CenturyLink), net of upfront customer IRU payments received. (8) Represents expected cumulative cash yield on major wireless anchor builds plus lease -up at Uniti Fiber and reflects capital spent to acquire fiber assets from Lumen Technologies (formerly CenturyLink) and lease-up of those assets at Uniti Leasing. (1) Average Quarterly New Sales Bookings ($ in millions) Incremental Cash Yield 30% Incremental Cash Yield ~100% (2) (3) (4) (5) (6) (7) (8) Uniti Cumulative Lease-Up
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17 Uniti’s Cost of Capital Continues to Improve February 2023 Issued $2.6 Billion of Secured Notes with Coupon of 10.5% February 2024 Announces $350 Million ABS Bridge Facility at Fixed Rate of 8.25% May 2024 Issued $300 Million Add-on to 10.5% Secured Notes at Implied Yield of ~9% January 2025 Issued $589 Million Inaugural ABS Facility at Fixed Rate of ~6.5% 500 Basis Point Improvement in the Past 2 Years Unit’s Debt Yielded ~12.5% in February 2023 Unit’s Debt Currently Yields ~7.5% Opportunities Exist to Further Lower Our Cost of Capital Through Opportunistic Debt Refinancings and Alternative Attractive Sources, such as ABS
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Appendix
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Non-GAAP Financial Measures We refer to EBITDA, Adjusted EBITDA, Funds From Operations (“FFO”) (as defined by the National Association of Real Estate Investment Trusts (“NAREIT”)) and Adjusted Funds From Operations (“AFFO”) in our analysis of our results of operations, which are not required by, or presented in accordance with, accounting principles generally accepted in the United States (“GAAP”). While we believe that net income, as defined by GAAP, is the most appropriate earnings measure, we also believe that EBITDA, Adjusted EBITDA, FFO and AFFO are important non-GAAP supplemental measures of operating performance for a REIT. We define “EBITDA” as net income, as defined by GAAP, before interest expense, provision for income taxes and depreciation and amortization. We define “Adjusted EBITDA” as EBITDA before stock-based compensation expense and the impact, which may be recurring in nature, of transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation claims made against us, and costs associated with the implementation of our enterprise resource planning system, (collectively, “Transaction Related and Other Costs”), costs related to the settlement with Windstream, goodwill impairment charges, severance costs, amortization of non-cash rights-of-use assets, the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items (although we may not have had such charges in the periods presented). Adjusted EBITDA includes adjustments to reflect the Company’s share of Adjusted EBITDA from unconsolidated entities. We believe EBITDA and Adjusted EBITDA are important supplemental measures to net income because they provide additional information to evaluate our operating performance on an unleveraged basis. In addition, Adjusted EBITDA is calculated similar to defined terms in our material debt agreements used to determine compliance with specific financial covenants. Since EBITDA and Adjusted EBITDA are not measures calculated in accordance with GAAP, they should not be considered as alternatives to net income determined in accordance with GAAP. Because the historical cost accounting convention used for real estate assets requires the recognition of depreciation expense except on land, such accounting presentation implies that the value of real estate assets diminishes predictably over time. However, since real estate values have historically risen or fallen with market and other conditions, presentations of operating results for a REIT that uses historical cost accounting for depreciation could be less informative. Thus, NAREIT created FFO as a supplemental measure of operating performance for REITs that excludes historical cost depreciation and amortization, among other items, from net income, as defined by GAAP. FFO is defined by NAREIT as net income attributable to common shareholders computed in accordance with GAAP, excluding gains or losses from real estate dispositions, plus real estate depreciation and amortization and impairment charges, and includes adjustments to reflect the Company’s share of FFO from unconsolidated entities. We compute FFO in accordance with NAREIT’s definition. The Company defines AFFO, as FFO excluding (i) Transaction Related and Other Costs; (ii) costs related to the litigation settlement with Windstream, accretion on our settlement obligation, and gains on the prepayment of our settlement obligation as these items are not reflective of ongoing operating performance; (iii) goodwill impairment charges; (iv) certain non-cash revenues and expenses such as stock-based compensation expense, amortization of debt and equity discounts, amortization of deferred financing costs, depreciation and amortization of non-real estate assets, amortization of non-cash rights-of-use assets, straight line revenues, non-cash income taxes, and the amortization of other non-cash revenues to the extent that cash has not been received, such as revenue associated with the amortization of tenant capital improvements; and (v) the impact, which may be recurring in nature, of the write-off of unamortized deferred financing fees, additional costs incurred as a result of the early repayment of debt, including early tender and redemption premiums and costs associated with the termination of related hedging activities, severance costs, taxes associated with tax basis cancellation of debt, gains or losses on dispositions, changes in the fair value of contingent consideration and financial instruments and similar or infrequent items less maintenance capital expenditures. AFFO includes adjustments to reflect the Company’s share of AFFO from unconsolidated entities. We believe that the use of FFO and AFFO, and their respective per share amounts, combined with the required GAAP presentations, improves the understanding of operating results of REITs among investors and analysts, and makes comparisons of operating results among such companies more meaningful. We consider FFO and AFFO to be useful measures for reviewing comparative operating performance. In particular, we believe AFFO, by excluding certain revenue and expense items, can help investors compare our operating performance between periods and to other REITs on a consistent basis without having to account for differences caused by unanticipated items and events, such as transaction and integration related costs. The Company uses FFO and AFFO, and their respective per share amounts, only as performance measures, and FFO and AFFO do not purport to be indicative of cash available to fund our future cash requirements. While FFO and AFFO are relevant and widely used measures of operating performance of REITs, they do not represent cash flows from operations or net income as defined by GAAP and should not be considered an alternative to those measures in evaluating our liquidity or operating performance. Further, our computations of EBITDA, Adjusted EBITDA, FFO and AFFO may not be comparable to that reported by other REITs or companies that do not define FFO in accordance with the current NAREIT definition or that interpret the current NAREIT definition or define EBITDA, Adjusted EBITDA and AFFO differently than we do. 19
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Glossary 4G: The fourth generation of cellular wireless standards that is widely deployed by cellular operators today with the ability to transport data at rates up to 100 MBPS Internet access for mobile users. 5G: The fifth generation of cellular wireless standards that began to be deployed in 2019, with expected wide scale deployment ov er the next year. 5G has the ability to transport data with low latency and at rates of up to 1 GBPS for both stationary and mobile users. Adjusted EBITDA: Adjusted EBITDA is defined as EBITDA before stock-based compensation expense and the impact, which may be recurring in nature, o f transaction and integration related costs, costs associated with Windstream’s bankruptcy, costs associated with litigation cl aims made against us, and costs associated with the implementation of our new enterprise resource planning system (collectively, “Transaction Related and Oth er Costs”), the write off of unamortized deferred financing costs, costs incurred as a result of the early repayment of debt, gains or losses on dispositi ons, changes in the fair value of contingent consideration and financial instruments, and other similar or infrequent items. Backbone: A major fiber optic network that interconnects smaller networks including regional and metropolitan networks. It is the throu gh-portion of a transmission network, as opposed to laterals and spurs which branch off to connect customer locations. Bandwidth Infrastructure: Lit and dark bandwidth provided over fiber networks. These services are commonly used to transport telecom services, such as wireless, data, voice, Internet and video traffic between locations. These locations frequently include cellular towers, netw ork-neutral and network specific data centers, carrier hotels, mobile switching centers, CATV head ends and satellite uplink sites, ILEC central offices, and other key buildings that house telecommunications and computer equipment. Bandwidth Infrastructure services that are lit (i.e. provided by using optronics t hat “light” the fiber) include Ethernet and Wavelength services. Bandwidth Infrastructure services that are not lit are sold as dark -fiber capacity. Capital Intensity: Capital expenditures as a percentage of revenue. Churn: Decline in MRR, such as disconnects, bandwidth downgrades, and price reductions. Includes decline in MRR related to lit backhaul sites converting to dark fiber. Conduit: A pipe, usually made of metal, ceramic or plastic, that protects buried fiber optic cables. 20
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Glossary Core Adjusted EBITDA: Represents Adjusted EBITDA principally generated from leasing and lit services of the fiber network, as well as Adjusted EBITDA that are ancillary to the fiber network, including managed services. Core Adjusted EBITDA also includes non-recurring Adjusted EBITDA that is related to our core operations, such as equipment sales, certain construction projects, and early termination fees. Core Adjusted EBITDA exc ludes non-recurring Adjusted EBITDA that is not core to our operations, such as non-core construction projects. Core Revenue: Represents revenue principally generated from leasing and lit services of the fiber network, as well as revenues that are anc illary to the fiber network, including managed services. Core Revenue also includes non -recurring revenue that is related to our core operations, s uch as equipment sales, certain construction projects, and early termination fees. Core Revenue excludes non -recurring revenue that is not core to our operations, such as non-core construction projects. Dark Fiber: Fiber that has not yet been connected to telecommunications transmission equipment or optronics and, therefore, has not yet b een activated or “lit”. Enterprise Value: Net Debt plus fair value of preferred equity plus market value of outstanding common stock and OP units. Ethernet: Ethernet is the standard local area network (LAN) protocol. Ethernet was originally specified to connect devices on a company or home network as well as to a cable modem or DSL modem for Internet access. Due to its ubiquity in the LAN, Ethernet has become a popular tran smission protocol in metropolitan, regional and long haul networks as well. Fiber Optics: Fiber, or fiber optic cables, are thin filaments of glass through which light beams are transmitted over long distances. Fiber Strand Miles: Fiber strand miles are the number of route miles in a network multiplied by the number of fiber strands within each cable on the network. For example, if a ten mile network segment has a 24 count fiber installed, it would represent 10 x 24 or 240 fiber miles. FTT (Fiber-to-the-Tower): FTT are laterals or spurs that connect cell sites to the wider terrestrial network via fiber optic connections. Gross Installs: MRR related to services that have been installed and are billable in a given period. Includes MRR related to new services in stalled and bandwidth upgrades. 21
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Glossary Growth Capital Investments (“GCI”): Capital expenditures on long-term, value-accretive fiber and related assets in the ILEC and CLEC territories owned by Uniti and leased to Windstream. Integration Capex: Capital expenditures made specifically with respect to recent acquisitions that are essential to integrating acquired compani es in our business. Lateral/Spur: An extension from the main or core portion of a network to a customer’s premises or other connection point. Maintenance Capex: Capital expenditures related to maintaining and preserving the existing network and related equipment. Mbps: A measure of telecommunications transmission speed. One megabit equals one million bits of information. Mobile Switching Centers: Buildings where wireless service providers house their Internet routers and voice switching equipment. Monthly Churn Rate: Monthly churn rate is calculated as monthly Churn divided by MRR on the last day of the preceding period. MRR (Monthly recurring revenue): Monthly recurring revenue generated based on the price that the customer is expected to pay over the initial term, including any pricing escalators or discounts. MRR also includes monthly revenue related to the amortization of upfront paym ents by customers. Our presentation of MRR is not a guarantee of future revenues and should not be viewed as a predictor of future annual revenues. Net Debt: Principal amount of debt outstanding, less unrestricted cash and cash equivalents. Net Secured Debt: Principal amount of secured debt outstanding, less unrestricted cash and cash equivalents. Net Success-Based Capex: Success-Based Capex less associated upfront customer payments. Does not include net capital expenditures related to integration, maintenance, and other, such as IT-related capex. NOC: Network operations center is a location that is used to monitor networks, troubleshoot network degradations and outages, and ensure customer network outages and other network degradations are restored. Nodes: Points on a network that can receive, create, or transmit communication services. 22
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Glossary NRC (non-recurring charge): Upfront customer payments that are primarily associated with an executed fiber -related contract that utilizes either newly constructed or already owned fiber, and the fiber is intended to be owned by Uniti on a long -term basis. Optronics: Various types of equipment that are commonly used to light fiber. Optronics include systems that are capable of providing Eth ernet, Wavelengths, and other service over fiber optic cable. Pipeline: Reflects sales opportunities or transactions we are currently pursuing. Sales pipeline values represent total contract value of the opportunities we are currently pursuing. M&A pipeline values represent estimated purchase price of deals we are currently pursuing. We have not signed an agreement and are not otherwise committed to consummating any of these sales opportunities or transactions and there can be no assurances t hat any of these sales opportunities or transactions will be completed. Completed transactions may be realized over several years. Recurring Revenue: Revenue recognized for ongoing services based on the price that the customer is expected to pay over the initial term, includ ing any pricing escalators or discounts. Recurring Revenue also includes revenue related to the amortization of upfront payments by customers. Our presentation of Recurring Revenue is not a guarantee of future revenues and should not be viewed as a predictor of future annual revenues. Revenues Under Contract: Total contract value remaining pursuant to existing contracts, some of which may be past their expiration date and currently on a month to month basis. A portion of these contracts are subject to renewal each year, and there can be no assurances that th e contracts will be renewed at all or, if they are renewed, that the renewal will not provide for lower rates. Route miles: Route miles are the length, measured in non-overlapping miles, of a fiber network. Route miles are distinct from fiber strand mi les, which is the number of route miles in a network multiplied by the number of fiber strands within each conduit on the network. Sales Bookings: MRR in a given period relating to orders that have been signed by the customer and accepted by order management. Small Cells: A site where antennae, electronic communications equipment and power are placed on a utility pole, street light pole or other structure that are generally 25 feet from the ground to create a cell with a smaller radius than that of a Cell Site. By reducing the distance b etween the antennae, electronic communication equipment and mobile user equipment, small cells can transport data at faster speeds than from a Cell Site. S mall cells are connected the cellular network by fiber to a close Cell Site. 23
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Glossary Success-Based Capex: Gross capital expenditures related to installing existing or anticipated contractual customer service orders. Does not inclu de capital expenditures related to integration, maintenance, and other, such as IT-related capex. Switch: A switch is an electronic device that selects the path that voice, data, and Internet traffic take or use on a network. Total Contract Value: Contract MRR multiplied by the term of the contract in months. Tower: A free standing tower made of steel generally 200 to 400 feet above the ground with a triangular base and three to four sides built on leased parcels of land. Most towers can accommodate Multiple Cell Sites (and multiple tenants). Transport: A telecommunication service to move data, Internet, voice, video, or wireless traffic from one location to another. Wavelength: A channel of light that carries telecommunications traffic through the process of wavelength division multiplexing. 24