Lumen Technologies Inc (LUMN) 2022 Q2 法說會逐字稿

Greetings, and welcome to Lumen Technologies Second Quarter 2022 Earnings Conference Call. (Operator Instructions) As a reminder, this conference is being recorded Wednesday, August 3, 2022. It is now my pleasure to turn the conference over to Mike McCormack, Senior Vice President, Investor Relations. Please go ahead, sir.

您好，歡迎來到 Lumen Technologies 2022 年第二季度收益電話會議。 （操作員說明）提醒一下，本次會議將於 2022 年 8 月 3 日星期三錄製。現在我很高興將會議移交給投資者關係高級副總裁 Mike McCormack。請繼續，先生。

Thank you, France. Good afternoon, everyone, and thanks for joining us to the Lumen Technologies' Second Quarter 2022 Earnings Call. Joining me on the call today are Jeff Storey, President and Chief Executive Officer; and Chris Stansbury, Executive Vice President and Chief Financial Officer.

謝謝你，法國。大家下午好，感謝您加入 Lumen Technologies 的 2022 年第二季度財報電話會議。今天和我一起參加電話會議的是總裁兼首席執行官 Jeff Storey；以及執行副總裁兼首席財務官 Chris Stansbury。

Before we begin, I need to call your attention to our safe harbor statement on Slide 2 of our second quarter 2022 presentation, which notes that this conference call may include forward-looking statements subject to certain risks and uncertainties. All forward-looking statements should be considered in conjunction with the cautionary statements on Slide 2 and the risk factors in our SEC filings.

在我們開始之前，我需要提請您注意我們在 2022 年第二季度演示文稿幻燈片 2 上的安全港聲明，其中指出本次電話會議可能包括受某些風險和不確定性影響的前瞻性聲明。所有前瞻性陳述都應與幻燈片 2 中的警示性陳述以及我們提交給美國證券交易委員會的文件中的風險因素一起考慮。

We will be referring to certain non-GAAP financial measures reconciled to the most comparable GAAP measures that can be found in our earnings press release. In addition, certain metrics discussed today exclude costs for special items as detailed in our earnings material, all of which can be found on the Investor Relations section of the Lumen website.

我們將提及某些非公認會計原則財務指標，這些指標與我們的收益新聞稿中最具可比性的公認會計原則指標相一致。此外，今天討論的某些指標不包括我們收益材料中詳述的特殊項目的成本，所有這些都可以在 Lumen 網站的投資者關係部分找到。

Before turning the call over to Jeff, please be aware that we will not be able to discuss our active cash tender offers for certain of our outstanding debt securities. These tender offers are expected to expire later this week.

在將電話轉給傑夫之前，請注意，我們將無法討論我們對某些未償債務證券的積極現金要約收購。這些投標報價預計將在本週晚些時候到期。

With that, I'll turn the call over to Jeff.

有了這個，我會把電話轉給傑夫。

Thanks, Mike. Good afternoon, everyone, and thank you for joining us. On today's call, I'll provide some thoughts on our second quarter results as well as our plans for the second half of the year. Chris will discuss the second quarter in more detail, and we'll reserve time after Chris' remarks for your questions.

謝謝，邁克。大家下午好，感謝您加入我們。在今天的電話會議上，我將就我們第二季度的業績以及我們下半年的計劃提供一些想法。 Chris 將更詳細地討論第二季度，我們將在 Chris 發言後為您的問題預留時間。

I want to begin today's call by thanking our team for the hard work in closing the LATAM divestiture to Stonepeak. We are excited for the team at Cirion, but we'll certainly miss our LATAM friends and colleagues. Our ongoing partnership will allow us to continue working with this extremely talented team. We are also looking forward to the upcoming close of our ILEC transaction with Apollo. We are working hard towards an early fourth quarter close.

我想通過感謝我們的團隊為完成將 LATAM 剝離給 Stonepeak 所做的辛勤工作來開始今天的電話會議。我們為 Cirion 的團隊感到興奮，但我們肯定會想念我們的拉丁美洲朋友和同事。我們持續的合作夥伴關係將使我們能夠繼續與這個極具天賦的團隊合作。我們也期待即將結束與 Apollo 的 ILEC 交易。我們正在努力實現第四季度初的收盤。

Combined, these transactions streamline our focus on the most strategic opportunities for Lumen, which we believe will drive significant long-term shareholder value. Chris will provide more detail on our new business product group formation and what that will mean on a go-forward basis, but I can tell you that our teams are energized by a clear focus on managing products by life cycle. Our reinvigorated approach to product life cycle management will help customers transition to go-forward technologies and allow Lumen to maximize the contributions of more mature offerings, all helping to drive our #1 priority, profitable growth.

結合起來，這些交易簡化了我們對 Lumen 最具戰略意義的機會的關注，我們相信這將推動顯著的長期股東價值。 Chris 將提供有關我們新業務產品組組建的更多詳細信息，以及這對未來的意義，但我可以告訴您，我們的團隊因明確關注按生命週期管理產品而充滿活力。我們重振產品生命週期管理的方法將幫助客戶過渡到先進的技術，並讓 Lumen 最大限度地發揮更成熟產品的貢獻，所有這些都有助於推動我們的第一優先事項，盈利增長。

Our Quantum Fiber build is ramping with second quarter enablements more than doubling since the fourth quarter of last year, and we expect further acceleration in the second half of 2022 and into 2023. Permitting processes for our Quantum Fiber builds haven't improved as much as we would like, and we see supply chain challenges across our business. But we have not changed our target of 1 million or so enablements by year-end.

自去年第四季度以來，我們的 Quantum Fiber 構建正在加速，第二季度啟用量增加了一倍以上，我們預計 2022 年下半年和 2023 年將進一步加速。我們的 Quantum Fiber 構建的許可流程並沒有改善那麼多我們願意，並且我們看到整個業務的供應鏈挑戰。但是我們沒有改變到年底實現 100 萬左右的目標。

Beyond accelerating fiber enablement, we're also excited to announce the launch of our multi-gig Quantum Fiber offering, which I'll discuss shortly. Although not yet where we want to be, we remain encouraged by our trends with our second quarter revenue performance improving both sequentially and year-over-year. We saw strength in areas where we are investing to grow such as security, cloud, IP products, wavelengths and fiber broadband, offset by anticipated declines in TDM, voice and other.

除了加速光纖啟用之外，我們還很高興地宣布推出我們的多千兆量子光纖產品，我將在稍後討論。雖然還沒有達到我們想要的水平，但我們仍然對我們的趨勢感到鼓舞，我們的第二季度收入表現環比和同比都有所改善。我們在安全、雲、IP 產品、波長和光纖寬帶等我們正在投資增長的領域看到了實力，但被 TDM、語音和其他方面的預期下降所抵消。

As we look toward the second half of the year, we see the same macroeconomic pressures as everyone else. We are actively managing through supply chain constraints, which have caused some installation delays, but our strong relationships with our suppliers are proving invaluable in a challenging environment. We are also not immune to the inflation impacting all industries, and we did see increased pressure in the second quarter.

展望下半年，我們看到了與其他所有人一樣的宏觀經濟壓力。我們正在積極管理供應鏈限制，這導致了一些安裝延遲，但我們與供應商的牢固關係在充滿挑戰的環境中被證明是無價的。我們也不能倖免於影響所有行業的通脹，我們確實看到第二季度的壓力增加。

That said, we believe the critical nature of our service offerings make them more durable as our customers grapple with what the current economic uncertainty means for their businesses. Customers are certainly being more thoughtful in buying decisions, but we are not seeing any meaningful change in customer cancellations. Those of you who have followed us know, we often see opportunities to win new business with new technologies during economic downturns. Fundamentally, we believe these risks are temporary in nature and do not impact our long-term strategy or opportunity.

也就是說，我們相信我們的服務產品的關鍵性質使它們更加耐用，因為我們的客戶正在努力應對當前的經濟不確定性對其業務意味著什麼。客戶在購買決策時當然會更加周到，但我們沒有看到客戶取消的任何有意義的變化。關注我們的人都知道，在經濟低迷時期，我們經常看到利用新技術贏得新業務的機會。從根本上說，我們認為這些風險是暫時的，不會影響我們的長期戰略或機會。

Inflation-driven cost increases, particularly labor costs, put pressure on our full year EBITDA guidance. However, we are amplifying our cost management strategies to offset this impact and are maintaining our full year EBITDA guidance based on our current expectations for performance in the second half of the year.

通脹驅動的成本增加，尤其是勞動力成本，給我們的全年 EBITDA 指引帶來壓力。然而，我們正在擴大我們的成本管理戰略以抵消這種影響，並根據我們目前對下半年業績的預期維持我們的全年 EBITDA 指導。

We continue to execute on our transformation plan and remain focused on driving efficiencies in our business that will both improve our customer experience and help sustain operating margins as legacy services decline. The pace of these efforts has certainly been affected by the work required to prepare for the Stonepeak and Apollo transactions. But as we complete these transactions, we believe we have meaningful opportunities to continue driving automation, simplicity and efficiency into our delivery model.

我們將繼續執行我們的轉型計劃，並繼續專注於提高我們的業務效率，這將改善我們的客戶體驗，並在傳統服務下降時幫助維持運營利潤率。這些努力的步伐肯定受到了為 Stonepeak 和 Apollo 交易做準備所需的工作的影響。但隨著我們完成這些交易，我們相信我們有有意義的機會繼續推動自動化、簡單性和效率進入我們的交付模式。

Just as Lumen is seeking to drive automation, simplicity and efficiency in our business, our customers are also pursuing their own digital transformations. I want to spend a little time today discussing Lumen's enterprise segment and the unique capabilities we bring to support our customers in those efforts.

正如 Lumen 尋求推動我們業務的自動化、簡單性和效率一樣，我們的客戶也在追求他們自己的數字化轉型。今天我想花一點時間來討論 Lumen 的企業部門以及我們為支持我們的客戶而帶來的獨特能力。

As we all know, today's enterprise customers operate in a very dynamic data environment. Everything is now a connected device, and enterprises generate enormous amounts of data from a seemingly endless number of sources. To innovate and to keep pace with their own market, enterprises need next-generation data-intensive applications to quickly acquire, analyze and act on that data. All the while, there's an ever-growing threat landscape. Whether it's augmented reality, cloud-based gaming, artificial intelligence and machine learning, the use cases driving today's enterprises are predicated on the availability of highly secure, large-bandwidth connectivity and low latency to their data-intensive applications.

眾所周知，當今的企業客戶在一個非常動態的數據環境中運行。現在一切都是連接設備，企業從看似無窮無盡的來源生成大量數據。為了創新並跟上自己的市場步伐，企業需要下一代數據密集型應用程序來快速獲取、分析和處理這些數據。一直以來，威脅形勢都在不斷增長。無論是增強現實、基於雲的遊戲、人工智能和機器學習，推動當今企業發展的用例都基於其數據密集型應用程序的高度安全、大帶寬連接和低延遲的可用性。

These applications run in a hybrid compute and store environment, where orchestrating centralized cloud, remote data center, edge cloud and on-premises resources is increasingly important. The fiber-rich Lumen platform delivers on these needs by offering a massively scalable and resilient architecture that, together with the service solutions we provide, help customers as they continue to innovate and deploy the next-generation applications today's markets demand.

這些應用程序在混合計算和存儲環境中運行，其中協調集中式雲、遠程數據中心、邊緣雲和本地資源變得越來越重要。富含光纖的 Lumen 平台通過提供大規模可擴展和彈性架構來滿足這些需求，該架構與我們提供的服務解決方案一起，幫助客戶繼續創新和部署當今市場需求的下一代應用程序。

On the key point of latency, and I've mentioned this before, the Lumen platform can serve 97% of U.S. enterprises within 5 milliseconds of latency in an increasingly all-digital way with APIs and machine-to-machine interfaces. We believe this sub-5 millisecond proximity of our compute and storage edge cloud provides enterprises alternatives to move workloads where they can be optimized for efficiency and cost.

關於延遲的關鍵點，我之前已經提到過，Lumen 平台可以通過 API 和機器對機器接口以越來越全數字化的方式在 5 毫秒的延遲內為 97% 的美國企業提供服務。我們相信，我們的計算和存儲邊緣雲的這種低於 5 毫秒的接近度為企業提供了移動工作負載的替代方案，這些工作負載可以在效率和成本方面進行優化。

Let me give you a couple of specific examples of how our capabilities are winning large retail enterprise and public sector contracts. On the enterprise side, we are helping global supermarket chains transition to store-of-the-future models across thousands of U.S. locations. We are leveraging our extensive network assets, along with our network design and consulting expertise, to deliver these complex solutions, including private cloud, MPLS, SD-WAN, LTE backup, fixed wireless and a host of security services with both on-site implementation and day 2 management. Of course, this is just an example within one of the many enterprise verticals we serve.

讓我舉幾個具體的例子來說明我們的能力如何贏得大型零售企業和公共部門的合同。在企業方面，我們正在幫助全球連鎖超市在美國數千個地點向未來商店模式過渡。我們正在利用我們廣泛的網絡資產以及我們的網絡設計和諮詢專業知識來提供這些複雜的解決方案，包括私有云、MPLS、SD-WAN、LTE 備份、固定無線和大量安全服務，包括現場實施和第 2 天的管理。當然，這只是我們服務的眾多垂直企業之一中的一個示例。

In public sector, we've announced several recent wins, including the U.S. Postal Service, the USDA and the U.S. Customs and Border Protection agency. These solutions encompass a wide range of products such as edge computing, Zero Trust networking, unified communications, hybrid VPN and SD-WAN as well as managed network services as these agencies modernize their infrastructure and their capability to deliver services to U.S. citizens while at the same time, they secure and protect critical data and infrastructure against destructive individual and state actors.

在公共部門，我們宣布了最近的幾項勝利，包括美國郵政服務、美國農業部和美國海關與邊境保護局。這些解決方案涵蓋範圍廣泛的產品，例如邊緣計算、零信任網絡、統一通信、混合 VPN 和 SD-WAN 以及託管網絡服務，因為這些機構正在對其基礎設施和在美國公民提供服務的能力進行現代化改造。同時，它們保護關鍵數據和基礎設施免受破壞性個人和國家行為者的侵害。

Our strategic wins, together with broader market demand and the capabilities of the Lumen platform, give us confidence that we are well positioned in our enterprise segment. These larger customer wins, coupled with the improving mid-market sales, provide both near-term and long-term revenue opportunities as we drive toward growth.

我們的戰略勝利，加上更廣泛的市場需求和 Lumen 平台的能力，讓我們相信我們在企業領域處於有利地位。這些更大的客戶贏得，加上中端市場銷售的改善，在我們推動增長的過程中提供了近期和長期的收入機會。

Moving to Mass Markets. We are excited to update you on our progress with Quantum Fiber, which is the critical growth engine for this segment. As I mentioned earlier, in just 2 quarters, we have doubled our pace of new Quantum enablements with further acceleration coming. Our Net Promoter Score remains above 50, demonstrating the quality of our product and the easy-to-use nature of our all-digital experience.

轉向大眾市場。我們很高興向您介紹我們在量子光纖方面的進展，這是該領域的關鍵增長引擎。正如我之前提到的，在短短兩個季度內，我們將新的 Quantum 支持的步伐加快了一倍，並進一步加速。我們的淨推薦值保持在 50 以上，證明了我們產品的質量以及我們全數字體驗的易用性。

You may have seen our exciting announcement this morning that the architecture we've developed and the network we are deploying enables multi-gigabit services. In select areas, we now operate 3 gigabit per second, $150 per month solution and an 8 gigabit per second, $300 per month solution. The vast majority of our new builds will have this capability. Beyond the superior speed, our Quantum Fiber experience provides symmetric service, which is critical for the future applications and use cases. We believe these products are industry-leading and deliver an incredible value to our customers. And in fact, we've already begun taking orders.

您可能已經看到我們今天早上的激動人心的公告，即我們開發的架構和我們正在部署的網絡支持數千兆位服務。在特定區域，我們現在運營每秒 3 Gb、每月 150 美元的解決方案和每秒 8 Gb、每月 300 美元的解決方案。我們的絕大多數新版本都將具有此功能。除了卓越的速度之外，我們的量子光纖經驗還提供對稱服務，這對於未來的應用和用例至關重要。我們相信這些產品是行業領先的，並為我們的客戶帶來了難以置信的價值。事實上，我們已經開始接受訂單。

While it's early in the adoption phase of this type of capacity, we know where bandwidth demand is going. And we've developed our architecture well ahead of the curve and are prepared for ever-increasing demand for higher speeds and greater capacity. These multi-gig offers will enable future consumer and small business use cases such as VR, AR, gaming, work and learn from home, ultra-high-definition video streaming and other high-bandwidth services.

雖然這種容量還處於採用階段的早期，但我們知道帶寬需求的去向。我們已經開發出領先於曲線的架構，並為不斷增長的更高速度和更大容量的需求做好了準備。這些多演出產品將支持未來的消費者和小型企業用例，例如 VR、AR、遊戲、在家工作和學習、超高清視頻流和其他高帶寬服務。

The investments we are making in Quantum Fiber are building long-life assets with the capacity to meet current demand and the ability to meet future demand for fast, symmetrical capacity. Coupled with the all-digital experience and excellent customer experience we provide, we expect Quantum Fiber to deliver significant returns for our shareholders well into the future.

我們在 Quantum Fiber 上進行的投資正在建設能夠滿足當前需求和滿足未來對快速、對稱容量的需求的長壽命資產。再加上我們提供的全數字化體驗和卓越的客戶體驗，我們預計 Quantum Fiber 將在未來為我們的股東帶來可觀的回報。

We believe we have a very large and ripe opportunity to grow our Mass Markets broadband business through our Quantum investment. And with very low market share currently in our copper footprint, we have the ability to grow our embedded base of broadband customers by taking market share. We expect to accelerate taking share as we ramp our enablement and deploy best-in-class add-on capabilities such as network security, WiFi and the multi-gig offerings we announced today.

我們相信，通過我們的 Quantum 投資，我們有一個非常大且成熟的機會來發展我們的大眾市場寬帶業務。由於目前我們的銅足跡市場份額非常低，我們有能力通過佔領市場份額來擴大我們的嵌入式寬帶客戶群。隨著我們加強支持和部署一流的附加功能，例如網絡安全、WiFi 和我們今天宣布的多演出產品，我們預計將加速分享。

We believe profitable revenue growth is a principal long-term driver of shareholder returns, and we continue putting the right assets to work to drive toward that goal. Our new business reporting categories provide clear line of sight into our efforts to drive revenue growth, enhance profitability and generate sustainable free cash flow. As we invest the capital required to execute on our growth plans, we are also returning cash to shareholders through our dividend while remaining committed to a healthy balance sheet.

我們相信盈利性收入增長是股東回報的主要長期驅動力，我們將繼續投入合適的資產來推動實現這一目標。我們新的業務報告類別為我們推動收入增長、提高盈利能力和產生可持續自由現金流的努力提供了清晰的視野。隨著我們投資執行增長計劃所需的資本，我們還通過股息向股東返還現金，同時保持健康的資產負債表。

With that, I'll turn the call over to Chris to discuss our second quarter results in more detail. Chris?

有了這個，我將把電話轉給克里斯，以更詳細地討論我們的第二季度業績。克里斯？

Thank you, Jeff, and good afternoon, everyone. It has been about 4 months since I joined the Lumen team, and I am more excited than ever for the opportunities that lie ahead. I've been working with the leadership team here at Lumen to rethink the way we manage our business and products. You'll find a change in the way we plan to report our revenues of the Lumen business segment in today's materials.

謝謝你，傑夫，大家下午好。我加入 Lumen 團隊已經過去了大約 4 個月，我比以往任何時候都更期待未來的機會。我一直在與 Lumen 的領導團隊合作，重新思考我們管理業務和產品的方式。您會發現我們計劃在今天的材料中報告 Lumen 業務部門收入的方式發生了變化。

After closing the ILEC transaction, which is expected early in the fourth quarter, we will provide a pro forma historical revenue view of these product groups. I want to emphasize that these new categories are not simply a recut of our external reporting but a significant internal change that addresses how we manage the products that reside within each category. This will drive enhanced efficiency and discipline as we drive towards our key strategic initiative of attaining profitable top line growth.

預計在第四季度初完成 ILEC 交易後，我們將提供這些產品組的備考歷史收入視圖。我想強調的是，這些新類別不僅僅是對我們的外部報告的重新剪輯，而是一項重大的內部變化，解決了我們如何管理每個類別中的產品。這將推動提高效率和紀律，因為我們推動實現實現盈利頂線增長的關鍵戰略計劃。

As Jeff discussed, we face some macro headwinds, and we are actively working to address these challenges through cost reduction and other initiatives. We will keep a watchful eye on these issues that are and will likely continue to impact nearly every industry in the near term.

正如 Jeff 所討論的，我們面臨一些宏觀逆風，我們正在積極努力通過降低成本和其他舉措來應對這些挑戰。我們將密切關注這些問題，這些問題在短期內將繼續影響幾乎所有行業。

With that, I will begin with a financial summary of our second quarter. We are very pleased to have closed the LATAM divestiture to Stonepeak on August 1 for approximately $2.7 billion, and we are on track for an early fourth quarter close of the ILEC divestiture. Our revenue performance has improved across all enterprise channels with overall business revenue growing sequentially. We continue to see fiber broadband revenue growth, which is helping to improve our Mass Markets revenue trajectory and supporting our expectation for Mass Markets broadband revenue and subscriber growth in the second half of next year.

有了這個，我將從我們第二季度的財務摘要開始。我們很高興在 8 月 1 日以約 27 億美元的價格完成了對 Stonepeak 的 LATAM 剝離，我們有望在第四季度初完成 ILEC 剝離。我們在所有企業渠道的收入表現都有所改善，整體業務收入連續增長。我們繼續看到光纖寬帶收入增長，這有助於改善我們的大眾市場收入軌跡，並支持我們對明年下半年大眾市場寬帶收入和用戶增長的預期。

We reported adjusted EBITDA of $1.811 billion in the second quarter and generated a 39.3% margin. Recall that year-over-year comparisons will continue to be impacted throughout 2022 by the CAF II program that ended in 2021 and note that we did not recognize any CAF II-related reserve release this quarter. We will update you in future quarters if there are any significant additional CAF II-related reserve releases. With respect to the RDOF program, we recognized approximately $6 million in the second quarter of 2022.

我們報告第二季度調整後的 EBITDA 為 18.11 億美元，利潤率為 39.3%。回想一下，2022 年全年的同比比較將繼續受到 2021 年結束的 CAF II 計劃的影響，並註意我們在本季度沒有發現任何與 CAF II 相關的儲備釋放。如果有任何重要的額外 CAF II 相關儲備釋放，我們將在未來幾個季度向您更新。關於 RDOF 計劃，我們在 2022 年第二季度確認了大約 600 萬美元。

Our reported revenue was down 6.3% year-over-year. On an adjusted basis, revenue declined 3.4% in the second quarter, an improvement from the 5.5% adjusted year-over-year decline in the first quarter of this year. Our free cash flow was $668 million for the second quarter. We returned $254 million to our shareholders during the quarter through our quarterly dividend. Additionally, we reduced net debt by nearly $900 million year-to-date and exited the quarter with leverage at 3.7x.

我們報告的收入同比下降 6.3%。經調整後，第二季度收入下降 3.4%，較今年第一季度 5.5% 的調整後同比下降有所改善。我們第二季度的自由現金流為 6.68 億美元。我們在本季度通過季度股息向股東返還了 2.54 億美元。此外，我們今年迄今減少了近 9 億美元的淨債務，並以 3.7 倍的槓桿率退出了本季度。

In the second quarter, total reported revenue declined 6.3% on a year-over-year basis to $4.612 billion. Year-over-year metrics were materially impacted by the end of the CAF II program at year-end 2021. When adjusted for CAF II, foreign currency and the sale of our correctional facilities business, the year-over-year rate of decline was 3.4% versus a decline of 5.5% last quarter. Sequentially, revenue was stable in 2Q '22 on a normalized basis.

第二季度，報告的總收入同比下降 6.3% 至 46.12 億美元。同比指標受到 2021 年底 CAF II 計劃結束的重大影響。根據 CAF II、外彙和我們的懲教設施業務的銷售進行調整後，同比下降率為3.4%，上一季度下降 5.5%。因此，2Q '22 的收入在正常化的基礎上保持穩定。

Within our 2 key segments, Business revenue declined 3% year-over-year to $3.416 billion. When excluding foreign currency headwinds and the sale of our correctional facilities business, revenue declined 2.3% year-over-year and was up 0.6% versus the first quarter of 2022. Mass Markets revenue declined 14.7% year-over-year to $1.196 billion. Adjusting for the CAF II impact mentioned earlier, Mass Markets revenue was down 6.6% year-over-year. Wholesale revenue grew 0.6% year-over-year. Wholesale revenue benefits from IT professional services provided in connection with pending divestiture transactions and separately from carrier rerates. Remember, this is a channel that we expect to decline over time and one we manage for cash.

在我們的兩個關鍵部門中，業務收入同比下降 3% 至 34.16 億美元。排除外匯逆風和出售我們的懲教設施業務後，收入同比下降 2.3%，與 2022 年第一季度相比增長 0.6%。大眾市場收入同比下降 14.7% 至 11.96 億美元。調整前面提到的 CAF II 影響後，大眾市場收入同比下降 6.6%。批發收入同比增長 0.6%。批發收入受益於與未決資產剝離交易相關的 IT 專業服務，獨立於運營商的再費率。請記住，這是一個我們預計會隨著時間的推移而下降的渠道，也是我們為現金管理的渠道。

Within our enterprise channels, which is our Business segment, excluding wholesale, reported revenue declined 4.2% year-over-year. When adjusting for the impacts of foreign currency and the sale of the correctional facilities business, revenue was down 3.3% year-over-year, an improvement from the 5.1% decline in the first quarter on the same basis. Our exposure to legacy voice and other revenue continues to improve, and we expect the closing of the 20-state ILEC divestiture to provide further benefits for our enterprise revenue mix.

在我們的企業渠道中，即我們的業務部門，不包括批發，報告的收入同比下降 4.2%。在調整外幣影響和懲教設施業務出售後，收入同比下降 3.3%，較一季度下降 5.1% 有所改善。我們對傳統語音和其他收入的敞口繼續改善，我們預計關閉 20 個州的 ILEC 剝離將為我們的企業收入組合提供進一步的好處。

IGAM revenue declined 1.5% year-over-year. On a constant currency basis, IGAM revenue was flat year-over-year. We had strength in our managed security, cloud services, IP and dark fiber services. We've discussed large, complex transactions taking longer to turn up, and I'm happy to report that IGAM benefited this quarter from additional revenue related to a large contract we signed last summer.

IGAM 收入同比下降 1.5%。在固定貨幣基礎上，IGAM 收入與去年同期持平。我們在託管安全、雲服務、IP 和暗光纖服務方面擁有優勢。我們已經討論了需要更長時間才能完成的大型複雜交易，我很高興地報告說，IGAM 本季度受益於與我們去年夏天簽署的大合同相關的額外收入。

Large enterprise revenue declined 6.5% year-over-year. The sale of the correctional facilities business is reflected in this channel. Normalizing for this sale, large enterprise declined 5.4%, an improvement from the 6.9% decline in the first quarter. We had growth in managed security and IP services. Overall, large enterprise growth was negatively impacted by our IT solutions business, which tends to experience quarterly fluctuations. Mid-market enterprise declined 5.3% year-over-year. We had growth in cloud, IT solutions and IP services, offset by lower voice and equipment revenue.

大型企業收入同比下降 6.5%。懲教設施業務的出售就體現在這個渠道上。此次銷售正常化，大型企業下降 5.4%，比第一季度下降 6.9% 有所改善。我們在託管安全和 IP 服務方面取得了增長。總體而言，大型企業的增長受到我們的 IT 解決方案業務的負面影響，該業務往往會出現季度波動。中端市場企業同比下降 5.3%。我們在雲、IT 解決方案和 IP 服務方面取得了增長，但被語音和設備收入的下降所抵消。

Moving on to our new business reporting. We are providing a view of our new revenue reporting structure today and will formalize our new reporting starting in 2023, which will provide a pro forma posttransaction view. We will continue to update you through the remainder of this year on a total company basis.

繼續我們的新業務報告。我們今天提供了我們新的收入報告結構的視圖，並將從 2023 年開始正式確定我們的新報告，這將提供一個備考交易後視圖。我們將在今年餘下的時間裡繼續為您提供整個公司的最新信息。

We are grouping our business revenue reporting into 4 distinct product categories: grow, nurture, harvest and other. Our grow category features products such as IP, wavelengths, security, cloud, SD-WAN, SASE, unified communications and voice over IP. Our nurture category includes products like VPN and Ethernet. Our harvest products include legacy services such as voice, Private Line and UNEs. The other products are equipment and IT solutions, which tend to fluctuate quarter-to-quarter and are low-margin contributors.

我們將業務收入報告分為 4 個不同的產品類別：成長、培育、收穫和其他。我們的增長類別包含 IP、波長、安全、雲、SD-WAN、SASE、統一通信和 IP 語音等產品。我們的培育類別包括 VPN 和以太網等產品。我們的收穫產品包括語音、專線和 UNE 等傳統服務。其他產品是設備和 IT 解決方案，它們往往會按季度波動，並且是低利潤的貢獻者。

As you can see, our grow group is the largest group, followed by nurture, with harvest being the smallest group. When looking at historical trajectories, be aware of a few key things. COVID had a significant impact on our growth over the last couple of years, but we see that as largely behind us now. Within the nurture group, we see meaningful opportunities to migrate customers to new product sets residing in the grow group, which will continue to dampen the nurture growth rate. These are relevant products that we continue to sell in real time. Within our harvest group, we will continue to manage the declines as well as take price to retain profitability. This could provide a buffer for some of the decline, but many of the products in this group did not have a migration path back up the group stack.

如您所見，我們的成長組是最大的組，其次是培育，收穫是最小的組。在查看歷史軌跡時，請注意一些關鍵事項。在過去的幾年裡，COVID 對我們的增長產生了重大影響，但我們現在認為這在很大程度上已經過去了。在培育組中，我們看到了將客戶遷移到增長組中的新產品集的有意義的機會，這將繼續抑制培育增長率。這些是我們繼續實時銷售的相關產品。在我們的收穫組中，我們將繼續管理下降並採取價格以保持盈利能力。這可以為部分下降提供緩衝，但該組中的許多產品沒有備份組堆棧的遷移路徑。

I also think it's important to reiterate that these product groups are not simply a change in product groups for external consumption but rather a holistic change in the way we manage products internally. This will fully align what we present externally to how we manage internally with a significant focus on where we spend our OpEx and CapEx to provide the best possible returns for our stakeholders.

我還認為重要的是要重申，這些產品組不僅僅是外部消費的產品組的變化，而是我們內部管理產品方式的整體變化。這將使我們在外部展示的內容與我們內部管理的方式完全一致，並重點關注我們將運營支出和資本支出用於何處，以便為我們的利益相關者提供盡可能好的回報。

While we have provided 5 quarters of historic revenue for these product sets, you should consider this day 1 of how we are managing our new product groupings. Increasing efficiency to drive revenue growth is our primary goal, and we look forward to providing you with our progression as we continue our transformation journey.

雖然我們已經為這些產品集提供了 5 個季度的歷史收入，但您應該在第一天考慮我們如何管理我們的新產品組。提高效率以推動收入增長是我們的主要目標，我們期待在我們繼續轉型之旅的過程中為您提供進步。

Moving on to Mass Markets. As I mentioned earlier, on an adjusted basis, Mass Markets revenue declined 6.6% year-over-year and 1.6% sequentially. Remember that we recognized a onetime noncash revenue benefit in the first quarter related to a CAF II reserve release of $59 million. In the second quarter of 2021, we recognized $122 million of CAF II revenue. Our Mass Markets fiber broadband revenue within our RemainCo footprint grew by 16% year-over-year, and the second quarter represented more than 16% of our total Mass Market revenue. With the anticipated close of our ILEC sale, our exposure to legacy voice and other services will improve and reduce our annualized voice and other revenue by over $600 million based on our second quarter 2022 results.

轉向大眾市場。正如我之前提到的，經調整後，大眾市場收入同比下降 6.6%，環比下降 1.6%。請記住，我們在第一季度確認了與 CAF II 儲備金釋放 5900 萬美元相關的一次性非現金收入收益。在 2021 年第二季度，我們確認了 1.22 億美元的 CAF II 收入。我們在 RemainCo 覆蓋範圍內的大眾市場光纖寬帶收入同比增長 16%，第二季度占我們大眾市場總收入的 16% 以上。隨著我們 ILEC 銷售的預期結束，根據我們 2022 年第二季度的業績，我們對傳統語音和其他服務的曝光將改善和減少我們的年化語音和其他收入超過 6 億美元。

During the quarter, we added 28,000 Quantum Fiber customers, roughly in line with last quarter as we continue our pivot to a market-based approach and adjust our go-to-market strategy. This brings our total Quantum Fiber subscribers to 858,000 with 788,000 of the subscribers within the 16 retained states. During the quarter, total enablements were approximately 205,000 with approximately 185,000 of those enabled locations in our 16 retained states, bringing the total enabled locations in the retained states to 2.9 million as of June 30 with approximately 270,000 additional locations enabled in the SellCo footprint.

在本季度，我們增加了 28,000 家 Quantum Fiber 客戶，與上一季度大致持平，因為我們繼續轉向以市場為基礎的方法並調整我們的上市戰略。這使我們的 Quantum Fiber 用戶總數達到 858,000 人，其中 788,000 人在 16 個保留州內。在本季度，啟用總數約為 205,000 個，其中大約 185,000 個啟用位置位於我們保留的 16 個州，截至 6 月 30 日，保留狀態的啟用位置總數達到 290 萬個，SellCo 足跡中啟用了大約 270,000 個額外位置。

ARPU in the retained states was approximately $59, and we see ARPU expansion opportunities with the adoption of in-home WiFi solutions, up-speeding and with today's announcement of the multi-gig speed offerings that Jeff shared. As of June 30, our penetration of legacy copper broadband subscribers in our retained 16 states was less than 13%, highlighting the significant share-taking opportunity as we accelerate the Quantum Fiber build.

保留州的 ARPU 約為 59 美元，我們看到通過採用家庭 WiFi 解決方案、提高速度以及今天宣布 Jeff 分享的多千兆速度產品，ARPU 有擴展機會。截至 6 月 30 日，我們在保留的 16 個州對傳統銅寬帶用戶的滲透率不到 13%，這凸顯了我們加快 Quantum Fiber 建設過程中的重大分享機會。

Within the same footprint, our Quantum Fiber penetration stood at approximately 28%, but we expect that to fall in the near term as we ramp enablements. Our 2020 (sic) [2022] Quantum Fiber vintage penetration increased 500 basis points to approximately 27% at the 18-month mark, a solid improvement from the 12-month mark and continuing to ramp, supporting our expectations for the longer-term penetration opportunity. Our Quantum Fiber NPS score within RemainCo is greater than positive 50, an indication of the quality, value and superior service that Quantum Fiber delivers.

在相同的足跡內，我們的量子光纖滲透率約為 28%，但我們預計隨著我們增加支持率，這一數字將在短期內下降。我們的 2020 (sic) [2022] Quantum Fiber 老式滲透率在 18 個月大關增加了 500 個基點，達到約 27%，比 12 個月大關有了堅實的改善並繼續上升，支持我們對長期滲透率的預期機會。我們在 RemainCo 中的 Quantum Fiber NPS 得分高於 50，這表明 Quantum Fiber 提供的質量、價值和卓越服務。

Quantum Fiber is an all-digital prepaid product that features simple pricing with no contracts, helping reduce call center volumes and bolstering our NPS scores. In Mass Markets and across the overall business, we are continuing to see trends towards pre-pandemic levels in our allowance for credit losses, which is reassuring and not having any notable impact to our business. The prepaid nature of our Quantum Fiber product helps reduce our bad debt risk.

Quantum Fiber 是一款全數字預付費產品，具有簡單定價且無需合同的特點，有助於減少呼叫中心的工作量並提高我們的 NPS 分數。在大眾市場和整個業務中，我們的信貸損失準備金繼續呈現大流行前水平的趨勢，這令人放心，對我們的業務沒有任何顯著影響。我們的 Quantum Fiber 產品的預付性質有助於降低我們的壞賬風險。

Turning to adjusted EBITDA. For the second quarter of 2022, adjusted EBITDA was $1.811 billion compared to $2.109 billion in the year ago quarter. Recall that our adjusted EBITDA in the second quarter of last year benefited by $122 million from the CAF II program. Special items this quarter totaled $47 million and were related primarily to transaction and separation activities for the LATAM and 20-state ILEC divestitures. When comparing margins to the year ago period, you should consider the $122 million benefit of CAF II support in the prior year period.

轉向調整後的 EBITDA。 2022 年第二季度，調整後 EBITDA 為 18.11 億美元，而去年同期為 21.09 億美元。回想一下，我們在去年第二季度調整後的 EBITDA 從 CAF II 計劃中受益了 1.22 億美元。本季度的特殊項目總計 4700 萬美元，主要與 LATAM 和 20 州 ILEC 剝離的交易和分離活動有關。在將利潤率與去年同期進行比較時，您應該考慮去年同期 CAF II 支持帶來的 1.22 億美元收益。

When adjusting for this impact, our second quarter 2022 margin of 39.3% would compare to 41.4% in the year ago period. We are seeing some cost pressures from inflation in addition to our OpEx investments to drive growth. In addition, our wholesale-related network expense has increased more than our additional revenue associated with carrier rerates. Capital expenditures for the second quarter of 2022 were $761 million. We continue to focus on capital efficiencies but expect ramping Quantum Fiber build cost to drive higher spending in the second half. In the second quarter of 2022, the company generated free cash flow of $668 million.

調整這一影響後，我們 2022 年第二季度的利潤率為 39.3%，而去年同期為 41.4%。除了我們為推動增長而進行的運營支出投資外，我們還看到了通貨膨脹帶來的一些成本壓力。此外，我們與批發相關的網絡費用增長超過了與運營商重費相關的額外收入。 2022 年第二季度的資本支出為 7.61 億美元。我們繼續關注資本效率，但預計 Quantum Fiber 的建設成本將在下半年推動更高的支出。 2022年第二季度，公司產生了6.68億美元的自由現金流。

Moving on to our outlook. Our guidance metrics remain unchanged from the update we provided last quarter. The closing of the LATAM divestiture on August 1 was 1 month later than our guidance assumed. That timing difference had a minimal impact on our full year outlook. We continue to expect the closing of the 20-state ILEC divestiture early in the fourth quarter.

繼續我們的展望。我們的指導指標與上個季度提供的更新相比保持不變。 8 月 1 日 LATAM 資產剝離的完成比我們的預期晚了 1 個月。這種時間差異對我們的全年展望影響微乎其微。我們繼續預計在第四季度初完成對 20 個州的 ILEC 剝離。

Recall that in terms of special items for 2022, we expect a ramp-up in costs compared to prior years, primarily driven by dedicated third-party costs to support transition services for the divestitures. The costs for these services are removed from adjusted EBITDA. The reimbursement for these services will be in other income with no material net impact to our cash flows and reflected in our schedules of non-GAAP items impacting net income.

回想一下，就 2022 年的特殊項目而言，我們預計與往年相比成本會有所上升，這主要是由專門的第三方成本推動的，以支持資產剝離的過渡服務。這些服務的成本已從調整後的 EBITDA 中扣除。這些服務的報銷將計入其他收入，對我們的現金流沒有重大淨影響，並反映在我們影響淨收入的非公認會計原則項目的時間表中。

In closing, we are pleased with our improved revenue results as well as our progress on the Quantum Fiber acceleration. As I mentioned, we are not immune to the macroeconomic environment and are managing through those headwinds. Our team remains focused on executing on our growth initiatives to drive long-term profitable revenue growth. As a reminder, in addition to free cash flow generated from the business, we expect a total of about $7 billion in discretionary cash proceeds, including the recent LATAM divestiture as well as the pending closure of the 20-state ILEC divestiture.

最後，我們對我們改善的收入結果以及我們在量子光纖加速方面取得的進展感到高興。正如我所提到的，我們不能免受宏觀經濟環境的影響，並且正在克服這些不利因素。我們的團隊仍然專注於執行我們的增長計劃，以推動長期盈利性收入增長。提醒一下，除了業務產生的自由現金流外，我們預計總計約 70 億美元的可自由支配現金收益，包括最近的 LATAM 剝離以及即將結束的 20 州 ILEC 剝離。

With that, we are ready for your questions.

有了這個，我們準備好回答你的問題了。

(Operator Instructions) Our first question is from Simon Flannery with Morgan Stanley.

（操作員說明）我們的第一個問題來自摩根士丹利的 Simon Flannery。

Chris, thank you for the new disclosure on the nurture and grow, et cetera. Are we going to get profitability metrics? Can you give any sense of how the margin is distributed?

克里斯，感謝您對培育和成長等方面的新披露。我們會得到盈利能力指標嗎？您能了解保證金的分配方式嗎？

And then on capital allocation, you had a few months now to look at this. Can you just give us an update on timing when you'll give us more thoughts? And where do you stand today on the thoughts about leverage, particularly given the inflationary pressures, dividends, buybacks as we go into '23 and beyond and the CapEx ramps?

然後在資本配置方面，你現在有幾個月的時間來看看這個。你能給我們提供更多想法的時間更新嗎？您今天對槓桿的看法如何，特別是考慮到通脹壓力、股息、回購以及我們進入 23 年及以後以及資本支出的增長？

Sure. In terms of the product categories, we'll continue to look at how much we disclose around that. I want to be careful. Obviously, we don't want to disclose competitive information. I can tell you that broadly speaking, if you look at the margin profile of the different buckets, while they differ, it's not drastic. So at a gross margin level, all of those buckets do have strong margins.

當然。在產品類別方面，我們將繼續關注我們在這方面披露了多少。我要小心。顯然，我們不想披露競爭信息。我可以告訴你，從廣義上講，如果你看一下不同桶的邊際分佈，雖然它們不同，但並不嚴重。因此，在毛利率水平上，所有這些水桶確實都有很高的利潤率。

Obviously, on the OpEx side, we'll invest more in grow because we're really trying to get those products moving along. And we're going to invest a lot less in harvest as we're managing for cash. So we'll think about it. I think for now, this is a good start, but we'll see what we can do around more color going forward.

顯然，在運營支出方面，我們將在增長方面投入更多資金，因為我們真的在努力讓這些產品繼續發展。由於我們正在管理現金，我們將減少對收穫的投資。所以我們會考慮一下。我認為現在，這是一個好的開始，但我們會看到我們可以在未來圍繞更多顏色做些什麼。

As it relates to capital allocation, I'd just say, look, the discussion on the buckets and obviously getting more aggressive on things like harvest and managing for cash, those are all inputs. Obviously, closing the divestitures are inputs. The macro environment's an input. So we continue to evaluate that. I think it's the right question to ask. I would say, at this point, no change, and we'll continue to monitor that as we go forward. We feel good about the work that we're doing to finalize the divestitures and focus on growth, and we'll keep you updated as we go forward.

由於它與資本分配有關，我只想說，看，關於桶的討論，顯然在收穫和現金管理等事情上變得更加積極，這些都是投入。顯然，關閉資產剝離是投入。宏觀環境是一個輸入。所以我們繼續評估。我認為這是正確的問題。我想說，在這一點上，沒有變化，我們將在前進的過程中繼續監控這一點。我們對完成資產剝離和專注於增長所做的工作感覺良好，我們會在前進的過程中隨時為您提供最新信息。

Great. And just, I guess, one just follow-up on that macro point. One of the other telcos was mentioning yesterday some notion of delayed decision-making by enterprise, longer quote to contract signing. Are you seeing much of that yet?

偉大的。而且，我想，只是對那個宏觀點的跟進。昨天，另一家電信公司提到了一些企業延遲決策的概念，合同簽署時間更長。你看到很多了嗎？

We don't see -- it's early to say, okay? So I'll try and answer the question, Simon, but it's early to say. We don't see necessarily a slower decision-making to the technology choice, to picking us. We might see a little bit of slower signing. There may be more people in the process for signing these contracts. But we don't -- we aren't seeing necessarily yet a slower decision-making on picking the technology, picking the winning thing. But it could be a little bit more thoughtful from our customers and how they sign and when they sign.

我們沒有看到——現在說還為時過早，好嗎？所以我會試著回答這個問題，西蒙，但現在說還為時過早。我們並不認為對技術選擇和選擇我們的決策一定會變慢。我們可能會看到簽名速度有點慢。簽署這些合同的過程中可能會有更多的人。但我們沒有——我們還沒有看到在選擇技術、選擇獲勝事物方面的決策一定會變慢。但我們的客戶可能會更周到一點，以及他們簽署的方式和簽署時間。

Our next question is from Brett Feldman with Goldman Sachs.

我們的下一個問題來自高盛的 Brett Feldman。

And actually, I'll follow up on that, Jeff. Could you maybe elaborate on what continues to be a priority for your customers? I mean, it would be very easy to say that they're just going to put things on the back burner. It would sound like from your answer that there are elements of their network transformation that they fully intend to pursue and are maybe just being extra careful with how they select vendors. And so if you can give us some sense as to what those big projects are and why you remain confident that they're going to move ahead with it, that would be helpful.

實際上，我會跟進，傑夫。您能否詳細說明什麼仍然是您的客戶的首要任務？我的意思是，很容易說他們只是把事情放在次要位置。從您的回答中聽起來，他們完全打算追求他們的網絡轉型的某些要素，並且可能只是在選擇供應商時格外小心。因此，如果您可以讓我們了解這些大型項目是什麼，以及為什麼您對他們將繼續推進這些項目保持信心，那將很有幫助。

And then just a follow-up question. You made the point earlier in the call that while you're seeing some inflationary cost pressures, you are identifying ways to cut other expenses and you're keeping your outlook for the year. The reason I ask about that is you had implied you were going to do a little less in terms of cost transformation this year because you were more focused on investing in areas that would support the company's growth as you move through these transactions. And I'm just wondering, are there any areas where you had to make a trade-off in terms of managing costs this year relative to what you had hoped in order to make sure you're still coming into your financial commitments?

然後只是一個後續問題。您在電話會議早些時候指出，雖然您看到一些通脹成本壓力，但您正在尋找削減其他開支的方法，並且您將保持對今年的展望。我問這個問題的原因是你暗示你今年將在成本轉換方面做的少一點，因為你更專注於投資在你完成這些交易時支持公司增長的領域。我只是想知道，為了確保您仍能履行財務承諾，您今年是否必須在管理成本方面做出權衡？

Sure. So back to what are we seeing from customers, I'll take that one first. The -- we see customers -- unlike COVID, when COVID hit, people just said, "We don't know what's going on. We got to stop." Unlike that, what we see today is people are looking -- customers are looking at their networks and recognizing that they have to continue to transform. And they have to transform in the products and services that we've built the Lumen platform to deliver.

當然。所以回到我們從客戶那裡看到的，我會先拿那個。我們看到的客戶與 COVID 不同，當 COVID 來襲時，人們只是說，“我們不知道發生了什麼。我們必須停下來。”與此不同的是，我們今天看到的是人們正在尋找——客戶正在尋找他們的網絡並認識到他們必須繼續轉型。他們必須轉變我們構建 Lumen 平台來提供的產品和服務。

So fiber-based services through APIs where they can use edge computing to augment their cloud computing, use edge storage to augment their on-premises storage. They are moving toward those solutions, embedding security into them where they can, as you've heard me say before, be very nimble and adaptive and innovative in the way that they acquire, analyze and act on their data. And so we see that continuing as customers continue to upgrade. And in fact, in some -- historically, we've seen that during economic downturns, customers will accelerate some of that so that they can gain efficiencies within their own business. And so that's kind of what we're seeing today.

因此，通過 API 提供基於光纖的服務，他們可以使用邊緣計算來增強他們的雲計算，使用邊緣存儲來增強他們的本地存儲。他們正朝著這些解決方案邁進，盡可能地將安全性嵌入其中，正如您之前聽到我所說的那樣，在他們獲取、分析和處理數據的方式上非常靈活、適應性和創新。因此，我們認為隨著客戶不斷升級，這種情況仍在繼續。事實上，從歷史上看，在某些情況下，我們已經看到，在經濟衰退期間，客戶會加快其中的一些速度，以便他們能夠在自己的業務中獲得效率。這就是我們今天所看到的。

With respect to expense reductions, and Brett, I'm interpreting the question as, did we give up anything as a result of the acquisition -- or the sale, the divestitures that we have, we did delay some of our ongoing transformation because the same people that were preparing for those divestitures were the people that drove our ongoing transformation. We talked about that early in the year. Those are coming to a close. And so we're continuing to look at transformation. But Chris alluded to the fact that we were actually doing more than that. It's not just the -- going back to the path that we had. We continue to look at everything, and we make sure that we figure out how best to deal with the environment that we've got.

關於削減開支，布雷特，我將這個問題解釋為，我們是否因為收購——或出售、我們擁有的資產剝離而放棄了任何東西，我們確實推遲了一些正在進行的轉型，因為為這些資產剝離做準備的人正是推動我們持續轉型的人。我們在年初談過這個問題。這些即將結束。因此，我們將繼續關注轉型。但克里斯暗示我們實際上做的不止這些。這不僅僅是 - 回到我們擁有的道路。我們將繼續審視一切，並確保我們弄清楚如何最好地處理我們所擁有的環境。

I'll give you kind of an ancillary example. We have CWA District 7 that represents about 5,000 of our employees. It's the largest union representative group that we have. And our contract with them expires -- I believe it's April of next year, right around that time. We started months ago working with them and trying to give predictability into our costs, trying to give predictability into our workforce and how we can align jobs and that sort of thing. And last night, the union members voted to ratify the agreement that we've made. So we have much better visibility into our cost structure for the coming 3 years beyond April of next year.

我會給你一個輔助的例子。我們擁有代表約 5,000 名員工的 CWA 第 7 區。這是我們擁有的最大的工會代表團體。我們與他們的合同到期了——我相信是明年四月，就在那個時候。幾個月前，我們開始與他們合作，並試圖為我們的成本提供可預測性，試圖為我們的員工隊伍提供可預測性，以及我們如何調整工作等等。昨晚，工會成員投票批准了我們達成的協議。因此，我們對明年 4 月之後的未來 3 年的成本結構有了更好的了解。

And so those are the types of things we do on a very regular basis to make sure that we're looking at our cost structure, that we're looking at how do we invest in growth but, at the same time, fund that growth.

所以這些是我們經常做的事情，以確保我們正在研究我們的成本結構，我們正在研究我們如何投資於增長，同時為增長提供資金.

Our next question is from Phil Cusick with JPMorgan.

我們的下一個問題來自摩根大通的 Phil Cusick。

I wonder if you can talk about any sort of onetimers we should be considering, either in the SG&A or the cost of service side. Costs were a little bit higher than we expected. And then it looks like from this quarter's EBITDA, you're trending at the low end of guidance. You talked about some costs that need to get done to get there. Anything else that really needs to get done to get you to that low end of guidance or alternatively, things that could come through and really take you well above that?

我想知道您是否可以談論我們應該考慮的任何類型的一次性產品，無論是在 SG&A 還是服務成本方面。成本比我們預期的要高一點。然後從本季度的 EBITDA 看來，您正處於指導的低端。您談到了實現目標需要完成的一些成本。真正需要做些什麼才能讓你達到那個低端的指導，或者是那些可以通過並真正讓你遠遠超過這個水平的事情？

Yes. Phil, it's Chris. The -- if you look at the quarter and just some of the cost pressures that we faced, I'd say that the bulk of it really relates to what other companies are seeing in terms of inflationary pressures on things like energy and labor. And obviously, just as a reminder, our Q3 is seasonally always one of our toughest for energy consumption. So I think near term, those pressures obviously continue. We did have some onetime activity that hurt us a bit as it relates to a little bit on rerates, and then we do have some of our transition costs. I mentioned that, that hit above the line and then we recaptured below the line, and that was in there, too. But I'd say the bulk of it relates to inflation.

是的。菲爾，我是克里斯。 - 如果您查看本季度以及我們面臨的一些成本壓力，我想說其中大部分確實與其他公司在能源和勞動力等通脹壓力方面看到的情況有關。顯然，提醒一下，我們的第三季度始終是我們最難消耗能源的季節之一。所以我認為短期內，這些壓力顯然會繼續存在。我們確實有一些一次性活動對我們造成了一點傷害，因為它涉及到一點點重新費率，然後我們確實有一些過渡成本。我提到過，那次擊中線以上，然後我們在線下重新捕獲，那也在那裡。但我想說其中大部分與通貨膨脹有關。

So we've gone in, and I wouldn't say that there's any kind of major shift in how we're managing the business. This is, I would say, business as usual in terms of how we respond to macro events like this. So we are working as a team to take cost out, look for things that aren't going to have near-term impacts on our ability to grow, and those are the things we're going after.

所以我們已經進去了，我不會說我們管理業務的方式有任何重大轉變。我想說，就我們如何應對此類宏觀事件而言，一切照舊。因此，我們正在作為一個團隊努力降低成本，尋找不會對我們的成長能力產生短期影響的事情，而這些正是我們追求的事情。

In terms of being able to do better than that, I think that's really where, again, the new product portfolio focus can help us. I think the harvest teams are looking at a lot of different things that probably don't have an immediate benefit but in the relatively near future could have a benefit, but they're just getting started. So I'm optimistic about that but more to come as we go forward. So right now, we feel good with the guidance because of our ability to respond to the external environment with the cost cuts.

就能夠做得更好而言，我認為這確實是新產品組合重點可以幫助我們的地方。我認為收穫團隊正在研究許多不同的事情，這些事情可能不會立即產生好處，但在相對不久的將來可能會產生好處，但他們才剛剛開始。所以我對此持樂觀態度，但隨著我們的前進，還會有更多。所以現在，我們對指導感覺很好，因為我們有能力通過削減成本來應對外部環境。

Our next question is from Eric Luebchow with Wells Fargo.

我們的下一個問題來自富國銀行的 Eric Luebchow。

I wanted to touch on the supply chain. Jeff, you brought that up earlier in the call. It sounds like there were some pressure points there. Maybe you could provide some more color, whether that's related to equipment or materials or labor availability. And does it change at all kind of the plans to accelerate the rate of Quantum Fibers up to 1.5 million new fiber passings by the end of this year?

我想談談供應鏈。傑夫，你在電話的早些時候提出了這個問題。聽起來那裡有一些壓力點。也許您可以提供更多顏色，無論是與設備、材料還是勞動力可用性有關。它是否會改變所有計劃，以在今年年底前將 Quantum Fibers 的新光纖通過率提高到 150 萬根？

And then secondly, I just wanted to touch on the -- some of the inflation pressures again. I'm just wondering, to what degree do you think like you have the ability to maybe raise pricing on some of your products that you're selling to maybe offset some of that? Just wondering, in the enterprise outlook, how the pricing equation looks versus the volume equation on growth.

其次，我只是想再次談到一些通脹壓力。我只是想知道，您認為您有能力在多大程度上提高您銷售的某些產品的價格以抵消其中的一些？只是想知道，在企業前景中，定價方程與增長量方程相比如何。

Sure. I'll take the first half of that question and let Chris talk about the second half. On supply chain, Eric, you asked if is it equipment, labor or materials. The answer is yes on all 3 of them. We deal with each of them differently. But the inflationary pressures that you see, that the rest of the market sees are the same ones that we see, and they come in those 3 main areas. We've got great -- not the inflation -- I'm sorry, the supply chain pressures.

當然。我會回答這個問題的前半部分，讓克里斯談談後半部分。關於供應鏈，Eric，你問是設備、勞動力還是材料。他們三個的答案都是肯定的。我們以不同的方式處理它們中的每一個。但是你看到的通脹壓力，其他市場看到的和我們看到的一樣，它們來自這三個主要領域。我們有很好的——不是通貨膨脹——對不起，供應鏈壓力。

We've got great relationships with our large vendors. So whether that's material vendors or equipment vendors, we've got great relationships with them. We're working through their challenges with them, and we feel pretty good about that. And we think it's improving slightly. But it's too early to call whether that's a blip or a trend. And we'll continue to stay very focused on that, working closely with our large suppliers and our large vendors. And we will continue to work on labor costs.

我們與大型供應商建立了良好的關係。因此，無論是材料供應商還是設備供應商，我們都與他們建立了良好的關係。我們正在與他們一起應對挑戰，對此我們感覺很好。我們認為它正在略有改善。但現在說這是曇花一現還是趨勢還為時過早。我們將繼續非常關注這一點，與我們的大型供應商和我們的大型供應商密切合作。我們將繼續研究勞動力成本。

So for example, I mentioned CWA, but one of the things that we've also done with our employees is we brought -- we plan to bring all of the Quantum Fiber splicing in-house. We want to do that with super qualified technicians, very capable people. That's very important to get done, right? So we'll continue to look at how can we do some of these things ourselves as opposed to going out in the outside market.

例如，我提到了 CWA，但我們還與員工一起做的一件事是我們帶來了——我們計劃將所有的量子光纖拼接都帶到內部。我們想用超級合格的技術人員，非常有能力的人來做到這一點。完成這件事很重要，對吧？因此，我們將繼續研究如何自己做這些事情，而不是走出外部市場。

With respect -- does it slow the Quantum Fiber build? I have not changed my expectations that I've given our team, okay? I still want to get to close to 1 million homes this year. It certainly does affect us. We've talked about permitting. I mentioned it in the comments. Their labor shortages in permitting departments causes problems for us. Labor challenges in electric companies cause problems with us for pole attachments. And so there are other people's labor challenges that do cause us to slow. But I have not changed my targets that I've given our team internally at this point.

尊重 - 它會減慢量子光纖的構建速度嗎？我沒有改變我對我們團隊的期望，好嗎？今年我仍然希望接近 100 萬套房屋。它肯定會影響我們。我們已經討論過許可。我在評論中提到過。他們在許可部門的勞動力短缺給我們帶來了麻煩。電力公司的勞動力挑戰給我們帶來了關於電線桿附件的問題。因此，其他人的勞動力挑戰確實會導致我們放慢腳步。但我並沒有改變我目前在內部給我們團隊的目標。

And Eric, to the second question on the pricing environment, look, I think the pricing environment is favorable right now. And certainly, we will adjust where we can and be at market rates. We're going to make sure that we're maximizing the value to our shareholders by pricing where the market is. And that's certainly part of our plan as we move through the current environment.

Eric，關於定價環境的第二個問題，看，我認為現在的定價環境是有利的。當然，我們將在可能的範圍內以市場價格進行調整。我們將確保我們通過在市場上定價來最大化我們對股東的價值。當我們在當前環境中移動時，這肯定是我們計劃的一部分。

Next question is from David Barden with Bank of America.

下一個問題來自美國銀行的 David Barden。

First, I guess, Chris, I think last quarter, in preparation for retooling how the reporting for the business segment happened, there was a conversation about KPIs and the idea that one of the missing links between the market and your guys' internal view of the business is that we don't have a buildup to get to these revenue categories. So I know Simon was asking earlier about the profitability. But I'm asking if there's an ability -- an intention and an ability to share something like that with the market.

首先，我想，克里斯，我想上個季度，在準備重組業務部門的報告方式時，有一次關於 KPI 的對話，以及市場與你們內部觀點之間缺失的聯繫之一的想法。業務是我們沒有積累到這些收入類別。所以我知道西蒙早些時候問過盈利能力。但我問的是是否有一種能力——一種與市場分享類似東西的意圖和能力。

I guess the second question would just be on broadband, kind of 2 subfactors in there. One, the transition from the EBB program to the ACP program, a little less money out there, a little less government stimulus helping the broadband segment; and then fixed wireless access looking like they're going to come in with 100% market share in broadband this quarter. Could you kind of comment on the impact that those 2 things are having on your kind of run rate business and your outlook for fiber?

我想第二個問題只是關於寬帶，那裡有 2 個子因素。一，從 EBB 計劃到 ACP 計劃的過渡，少一點錢，少一點政府對寬帶領域的刺激；然後是固定無線接入，看起來他們將在本季度以 100% 的寬帶市場份額進入市場。您能否評論一下這兩件事對您的運營業務和光纖前景的影響？

Before we answer, David, would you repeat the second part of that? I didn't catch it.

在我們回答之前，大衛，你會重複第二部分嗎？我沒有抓住它。

Sorry. The second question was the impact on the broadband business from the twin forces of fixed wireless access and the kind of reduced government stimulus in the system.

對不起。第二個問題是固定無線接入和政府在系統中減少刺激的雙重力量對寬帶業務的影響。

Okay. The part I missed was fixed -- I just didn't understand it. Thanks. Go ahead, Chris.

好的。我錯過的部分是固定的——我只是不明白。謝謝。來吧，克里斯。

Yes. So David, I'll certainly spend more time looking at this. I do want to walk before we run. I think the biggest gap at least that I saw between how Lumen was reporting and the way we were talking about the business was really giving insight into how we're going to grow. So I think this was a first big step, and we'll certainly continue with that as we go forward.

是的。所以大衛，我肯定會花更多的時間來研究這個。我確實想在我們跑步之前先走路。我認為至少我在 Lumen 的報告方式和我們談論業務的方式之間看到的最大差距是真正深入了解我們將如何發展。所以我認為這是第一步，我們肯定會繼續前進。

I do -- and I base this off of my previous experience, I do want to be careful about telling too much to our competition about where and how we make money. I think that's -- in a lot of ways, that can provide more harm to Lumen's shareholders than benefit. So we'll certainly consider that as we go forward. We'll certainly try to give more color, but I do -- I don't want to overpromise on that at this early date. And you do have my commitment. We'll continue to certainly talk about the revenue pieces and try to give more color on that as we go forward on how we're going to grow.

我願意——而且我基於我之前的經驗，我確實想小心不要向我們的競爭對手透露太多關於我們在哪里以及如何賺錢的信息。我認為這 - 在很多方面，這對 Lumen 的股東造成的傷害大於利益。因此，我們肯定會在前進的過程中考慮到這一點。我們當然會嘗試提供更多顏色，但我願意——我不想在這麼早的時候過分承諾。你確實有我的承諾。我們肯定會繼續談論收入部分，並在我們繼續發展的過程中嘗試給予更多的色彩。

With respect to stimulus and what is that effect on the broadband -- the transitioning from one stimulus program to another one investment program, subsidy program, we -- it's too early to say. These programs are just being established. We'll see what they look like and how they come out. We do think there are opportunities for Lumen and Quantum Fiber to engage with those government programs, to make sure that we're bringing our capabilities to the largest footprint that we can. But our strategic focus is also a part of that.

關於刺激以及對寬帶的影響——從一項刺激計劃過渡到另一項投資計劃、補貼計劃，我們——現在說還為時過早。這些計劃剛剛建立。我們將看到它們的外觀以及它們是如何出現的。我們確實認為 Lumen 和 Quantum Fiber 有機會參與這些政府計劃，以確保我們將我們的能力發揮到最大。但我們的戰略重點也是其中的一部分。

If you look at our Quantum Fiber build, we're focusing in on areas where we have network advantage, where we have scale advantage and where we can invest in dense ways to make sure that we have the low-cost advantage on building out networks. And so our strategic focus in honing in on the places that make most sense for Quantum Fiber is part of that whole equation.

如果您查看我們的 Quantum Fiber 構建，我們將專注於我們具有網絡優勢的領域、我們具有規模優勢的領域以及我們可以以密集方式投資的領域，以確保我們在構建網絡方面具有低成本優勢.因此，我們將戰略重點放在對量子光纖最有意義的地方上，這是整個方程式的一部分。

With respect to fixed wireless access, I don't know if you're meaning in Enterprise or if you're meaning in Mass Markets. In Mass Markets, I'd love to compete with fixed wireless access. Is it going to have an application? Of course, it is. The fiber wins, we announced this morning that we're going to build -- that we have the capability. On the platform that we're putting in the ground today, the platform delivers 8-gigabit solutions, 3-gigabit solutions. We can go to where our customers need us to go, and I think fixed wireless access runs out of scale much quicker than that. And you've heard me say this many times. Communication, data wants to get to glass as quickly as it can. And so we strongly believe in our ability to build Quantum Fiber in a way that competes with fixed wireless access.

關於固定無線接入，我不知道您是指企業還是大眾市場。在大眾市場，我很想與固定無線接入競爭。它會有應用程序嗎？當然是。光纖獲勝，我們今天早上宣布我們將建造——我們有能力。在我們今天投入使用的平台上，該平台提供 8 Gb 解決方案、3 Gb 解決方案。我們可以去客戶需要我們去的地方，我認為固定無線接入的規模比這快得多。你已經聽我說過很多次了。通信，數據希望盡快到達玻璃。因此，我們堅信我們有能力以與固定無線接入競爭的方式構建量子光纖。

If you look at the Enterprise side, I have some of the same comments, but I see it more as an opportunity for us as we do campus area networking for our customers. We take the traffic in. We'd carry it out to our edge storage. We may use fixed wireless access to help them with their campus area networking. And so that's kind of my comment on that.

如果您查看企業方面，我也有一些相同的評論，但我認為這對我們來說更像是一個機會，就像我們為客戶做園區網絡一樣。我們接收流量。我們會將其帶到我們的邊緣存儲。我們可能會使用固定無線接入來幫助他們建立校園網絡。這就是我對此的評論。

Great. If I could ask one quick follow-up on wholesale. AT&T guided down their enterprise segment for the rest of the year based on higher rerates and the cost. You mentioned that even though wholesale was a benefit on the revenue line that the costs were actually higher than the revenue benefit. Who's on the other side of these transactions that's making all the money?

偉大的。如果我能問一個關於批發的快速跟進。 AT&T 基於更高的再利率和成本，在今年剩餘時間裡下調了他們的企業部門。您提到，即使批發是收入線上的一項收益，但成本實際上高於收入收益。誰在這些交易的另一邊賺了所有的錢？

Well, I'll try and answer that. I can only really speak for Lumen, but I'll try and be as complete in my answer as possible. If you look at Lumen, we have -- our vendors, our off-net providers have been raising our rates to market rates as they can contractually. And we've been dealing with it, shielding it from our business by being very aggressive in our off-net to on-net transitions. Why pay anybody anything if you can do it yourself?

好吧，我會試著回答這個問題。我只能代表 Lumen 說話，但我會盡量完整地回答我的問題。如果你看看 Lumen，我們有 - 我們的供應商，我們的網外供應商一直在按照合同規定將我們的費率提高到市場費率。我們一直在處理它，通過在我們的網外到網內過渡中非常積極地保護它免受我們的業務影響。如果你可以自己做，為什麼要付錢給任何人？

And so since -- certainly, since the Level 3 transaction but really long before, we have been very focused on making sure that we move off-net to on-net and manage our costs that way. We also get to manage the customer experience. We give a much better customer experience when we control it end-to-end. And so we'll continue to do that, and we've seen that. But we've seen rate hikes over many years as either contracts expire or a specific thing will expire. We see our vendors moving to market rates.

因此，自——當然，自第 3 級交易以來，但很久以前，我們一直非常專注於確保我們從網外轉移到網內並以這種方式管理我們的成本。我們還可以管理客戶體驗。當我們端到端控制它時，我們會提供更好的客戶體驗。所以我們將繼續這樣做，我們已經看到了這一點。但多年來，隨著合同到期或特定事項到期，我們已經看到加息。我們看到我們的供應商轉向市場價格。

Now we intend to do the same thing. We do the same thing in our business, and we'll continue to do that. We raised our customers' rates to market rates if they're below and some particular deal expires. And I'm not addressing any particular one of our vendors or any particular one of our customers. But we do the same behavior. Who's making money at it? I can't answer that part of it. I mean, I know what the impact is on us.

現在我們打算做同樣的事情。我們在我們的業務中做同樣的事情，我們將繼續這樣做。如果客戶的價格低於市場價格並且某些特定交易到期，我們會將其提高到市場價格。而且我不是針對我們的任何特定供應商或任何特定的客戶。但是我們做同樣的行為。誰靠它賺錢？我無法回答這部分。我的意思是，我知道這對我們有什麼影響。

I would just add really quick, just a nuance here that wholesale as well as other in our new classifications were impacted by an IT solutions contract. It was about $25 million. So that's why you see the variances that you're seeing in both of those 2 buckets.

我只想快速補充一點，這裡的批發以及我們新分類中的其他產品都受到 IT 解決方案合同的影響。大約是2500萬美元。所以這就是為什麼你會看到你在這兩個桶中看到的差異。

Our next question is from Nick Del Deo with MoffettNathanson.

我們的下一個問題來自 Nick Del Deo 和 MoffettNathanson。

First, Chris, just on that last $25 million you mentioned. So that's a one-timer? It's not going to persist as the transitions continue?

首先，克里斯，就在你提到的最後 2500 萬美元上。所以這是一次性的？隨著過渡的繼續，它不會持續存在嗎？

And that's why we -- as we mentioned in the prepared remarks that IT solutions and equipment, we're pooling into that other bucket because they are spiky. And it's also a lower-margin business. So we pulled those out. And that was in the wholesale bucket.

這就是為什麼我們 - 正如我們在準備好的評論中提到的那樣，IT 解決方案和設備，我們正在匯集到另一個桶中，因為它們是尖峰的。這也是一個利潤率較低的業務。所以我們把它們拔了出來。那是在批發桶裡。

Okay. Okay. And then earlier in the call, you also talked about how there are certain costs that you're incurring for the transition that you then bill to customers. I see that there's, I guess, a $30 million net income reconciliation that you have in your supplement. Is it fair to say there's roughly $30 million in OpEx that you're bearing and about $30 million that you're taking back, and we should think about that as we contemplate your margins?

好的。好的。然後在電話會議的早些時候，您還談到了您為過渡而產生的某些成本，然後您會向客戶收取費用。我猜想，您的補助金中有 3000 萬美元的淨收入對賬。公平地說，您要承擔大約 3000 萬美元的運營支出，而要收回大約 3000 萬美元，我們在考慮您的利潤時應該考慮這一點嗎？

Yes. That's right. And what it is, is that where we have non-100% dedicated resources, they're doing their day jobs for Lumen, but they're also, if you will, part-time or part of their time on supporting transaction service agreements. All of the OpEx hits our OpEx line. We'll adjust that out in adjusted EBITDA, but then we recover it in other income.

是的。這是正確的。事實上，在我們擁有非 100% 專用資源的情況下，他們為 Lumen 做日常工作，但如果您願意，他們也是兼職或部分時間支持交易服務協議.所有的 OpEx 都達到了我們的 OpEx 線。我們將在調整後的 EBITDA 中進行調整，但隨後我們會在其他收入中將其恢復。

Okay. Okay. And finally, in the past, you've given some rough numbers for the contribution from the LATAM assets and the Apollo assets. I think you've been hesitant to give those with any specificity. But given you just closed the LATAM deal, given the amount of time you've been working to close the Apollo deal, any chance you can share kind of more detailed figures for revenue, EBITDA, CapEx, whatever it might be, to help us as we model the business after these divestitures close?

好的。好的。最後，在過去，您已經給出了 LATAM 資產和 Apollo 資產貢獻的粗略數字。我認為您一直在猶豫是否要給出任何具體的內容。但是鑑於您剛剛完成了 LATAM 交易，考慮到您為完成 Apollo 交易而努力的時間，您有機會分享更詳細的收入、EBITDA、資本支出數據，無論它是什麼，以幫助我們當我們在這些資產剝離結束後對業務進行建模時？

Yes. So after we close the ILEC sale, we will give restated numbers. And that, I think, will give you the visibility you need. But we're going to wait until we close both or have closed both.

是的。因此，在我們結束 ILEC 銷售後，我們將提供重述數字。我認為，這將為您提供所需的可見性。但是我們要等到我們都關閉或者都關閉了。

Okay. So the restatement will have or the recast numbers will have both the impact of LATAM and the ILEC deal?

好的。那麼重述將有還是重鑄數字將同時產生 LATAM 和 ILEC 交易的影響？

That's correct, yes.

沒錯，是的。

Our next question is from Batya Levi with UBS.

我們的下一個問題來自瑞銀的 Batya Levi。

You've signed a lot of deals within the public sector lately, and some of your peers are talking about pressure in that segment. Can you provide more color if we should think about these deals as incremental to your base and what type of trends you're seeing? And maybe a rough estimate of what percent of your enterprise -- large enterprise comes from the public sector, that will be helpful.

您最近在公共部門簽署了很多交易，您的一些同行正在談論該領域的壓力。如果我們應該將這些交易視為對您的基礎的增量以及您看到的趨勢類型，您能否提供更多顏色？也許粗略估計一下您的企業（大型企業來自公共部門）的百分比，這將是有幫助的。

And just another question on the competitive environment in broadband. Are you seeing any response from cable right now ahead of your Quantum launch in terms of pricing or marketing, anything that you would call out?

關於寬帶競爭環境的另一個問題。在您推出 Quantum 之前，您是否看到有線電視在定價或營銷方面的任何回應？

So let me take as many of those as I can, Batya, and then I'll let Chris chime in if I miss any of them. With respect to government, look, we don't give out the percentage of any of those types of things for the reason Chris mentioned a minute ago, because we don't want to educate competitors in that sort of thing.

所以讓我盡可能多地接受這些，Batya，然後如果我錯過任何一個，我會讓 Chris 插話。關於政府，聽著，我們不會因為克里斯一分鐘前提到的原因而給出任何這類事情的百分比，因為我們不想在這類事情上教育競爭對手。

But let me talk again about Lumen and what I see from our public sector. I think we have a great public sector team that does a great job of selling excellent products that fit our customers' needs. And if you look at the deals that I mentioned, USDA, the Border and Protection agency, USPS, just looking at those deals, those are all new to us that we took share from somebody because those are not new deals themselves.

但讓我再談談 Lumen 以及我從公共部門看到的情況。我認為我們擁有一支出色的公共部門團隊，在銷售滿足客戶需求的優秀產品方面做得很好。如果你看看我提到的交易，美國農業部、邊境和保護局、美國郵政總局，只要看看這些交易，這些對我們來說都是新的，我們從某人那裡獲得了份額，因為這些本身並不是新交易。

So if you look at our business, we are a share taker in the government. And it's because of the quality of the products, the Lumen platform and the excellent team that we have supporting the government and the track record that we have supporting them. So I feel very good about our government business. I think it's represented in our large enterprise customers, too, that I feel the same way for them that, yes, sometimes others look to large enterprises declining, and we certainly have challenges with it as well. But we take share from people more than some brand-new thing that never existed before. And so I feel good about the government business.

因此，如果你看看我們的業務，我們就是政府的股東。正是因為產品的質量、Lumen 平台和優秀的團隊，我們支持政府以及我們支持他們的業績記錄。所以我對我們的政府業務感覺很好。我認為這也體現在我們的大型企業客戶中，我對他們也有同樣的感覺，是的，有時其他人認為大型企業正在衰退，我們當然也面臨挑戰。但我們從人們那裡獲得的份額不僅僅是一些以前從未存在過的全新事物。所以我對政府業務感覺良好。

With respect to cable, they'll always do something to kind of lead and preempt some overbuild and overcapability. And we saw a little bit increase in DSL declines but not anything substantial. Once we get our Quantum Fiber product in front of them, I think that we'll more than hold our own. When you have multi-gigabit symmetrical capacity with layered-on capabilities, I think we'll -- anything they do in the meantime won't really matter.

關於電纜，他們總是會採取一些措施來領先並搶占一些過度建設和過度能力。我們看到 DSL 的下降略有增加，但沒有任何實質性的變化。一旦我們將我們的 Quantum Fiber 產品擺在他們面前，我認為我們將不僅僅擁有自己的產品。當您擁有具有分層功能的多千兆對稱容量時，我認為我們會 - 他們在此期間所做的任何事情都無關緊要。

No. I think you're done with it.

不，我想你已經完成了。

Our next question is from James Ratcliffe with Evercore ISI.

我們的下一個問題來自 Evercore ISI 的 James Ratcliffe。

As we look forward to Lumen post the Apollo divestitures and the like, how should we be thinking about what the EBITDA margin profile of this business looks like? I mean, your -- some of the declining areas are pretty high margin revenue, but you're also sort of presumably the -- on the wholesale side, you're ongoing saving money there as you continue to build out the fiber network. Right now, you're running margins sort of, for example, above AT&T's business or consumer broadband segments. But how do we think about RemainCo, where that looks like going forward?

當我們期待 Lumen 發布 Apollo 資產剝離等事件時，我們應該如何考慮該業務的 EBITDA 利潤率概況？我的意思是，你的 - 一些下降的領域是相當高的利潤收入，但你也可能是 - 在批發方面，隨著你繼續建設光纖網絡，你正在持續在那裡省錢。現在，您的利潤率在某種程度上高於 AT&T 的商業或消費者寬帶部門。但是我們如何看待 RemainCo，它看起來會在哪裡發展？

Yes. Again, I don't want to get too far ahead of ourselves here. I think we will give you, as I just mentioned a few minutes ago, a good RemainCo footprint P&L and how those financials play out once we're closed with the divestitures. What I would say is that as we go forward, though, with our growth opportunities in both segments, we feel good about where our margin profile is and our abilities to grow top line as well as EBITDA. So I think I'd leave it there. Jeff, did you want to add anything?

是的。再說一次，我不想在這裡走得太遠。正如我幾分鐘前剛剛提到的，我想我們會給你一個良好的 RemainCo 足跡損益表，以及一旦我們完成資產剝離，這些財務狀況將如何發揮作用。我想說的是，隨著我們向前發展，儘管我們在這兩個領域都有增長機會，但我們對我們的利潤率狀況以及我們增長頂線和 EBITDA 的能力感到滿意。所以我想我會把它留在那裡。傑夫，你想補充什麼嗎？

Yes. James, the other thing is we believe that we're transforming our business, and a big part of that are reductions in our cost structure and improvement in our customer experience. And we think that we've opportunities ahead of us. And we'll continue to focus on those things.

是的。詹姆斯，另一件事是我們相信我們正在改變我們的業務，其中很大一部分是降低我們的成本結構和改善我們的客戶體驗。我們認為我們面前有機會。我們將繼續關注這些事情。

Our business is evolving, and we are very good at evolving with it and modifying the way that we deliver our services. We've got the Lumen Marketplace. We've got the Lumen platform. We've got all sorts of capabilities that we're putting in place to make sure that we can deliver an outstanding customer experience with the lowest cost.

我們的業務正在發展，我們非常擅長隨之發展並修改我們提供服務的方式。我們有 Lumen 市場。我們有 Lumen 平台。我們擁有各種能力，以確保我們能夠以最低的成本提供出色的客戶體驗。

Operator, we've got time for just one more.

接線員，我們還有時間再做一次。

Our last question will be from Bora Lee with RBC Capital Markets.

我們的最後一個問題將來自 RBC 資本市場的 Bora Lee。

So fiber infrastructure services revenues posted sequential growth in each of your sales channels. Is there anything to call out there in terms of products or services that drove that growth and if you think that trend is sustainable?

因此，您的每個銷售渠道的光纖基礎設施服務收入均實現了連續增長。在推動這種增長的產品或服務方面，有什麼值得一提的嗎？如果你認為這種趨勢是可持續的？

And then regarding the change to the business reporting structure, can you talk about how you envision how this change might impact your sales force, be it organizational structure, sales force incentives as well as your go-to-market strategy?

然後關於業務報告結構的變化，您能否談談您如何設想這種變化可能會影響您的銷售隊伍，無論是組織結構、銷售隊伍激勵措施還是您的上市策略？

Sure. So let me take the first one slightly. There's nothing special to call out that comes to mind in fiber infrastructure services. But we're a fiber-based company, and that is the core of who we are and what we do. So I don't have any kind of special onetime. It's always lumpy. Those -- a lot of our business is lumpy, but fiber infrastructure tends to be lumpier than most. But it's who we are, and we're really, really good at it. And so I don't have any special thing to call out.

當然。所以讓我稍微拿第一個。在光纖基礎設施服務中沒有什麼特別值得一提的。但我們是一家以光纖為基礎的公司，這就是我們是誰以及我們做什麼的核心。所以我沒有任何特別的時間。它總是塊狀的。那些——我們的很多業務都是塊狀的，但光纖基礎設施往往比大多數業務塊狀。但這就是我們，我們真的，真的很擅長。所以我沒有什麼特別要說的。

Yes. And on the second question, look, I mean, broadly speaking, this is not true for every product, but broadly speaking, if you look at the harvest category, those are products that really aren't being sold anymore, certainly not in any major quantity. So that really becomes a focus on how do we maximize the long-term value of existing customers, and that can be through cost management as well as pricing. And the cost management, frankly, can cross multiple technologies and frankly beyond that bucket. So it's a complex thing to go after, but we've got the right people to tackle that.

是的。關於第二個問題，看，我的意思是，從廣義上講，這並非適用於所有產品，但從廣義上講，如果您查看收穫類別，這些產品確實不再銷售，當然不會在任何主要數量。因此，這真正成為我們如何最大化現有客戶的長期價值的焦點，這可以通過成本管理和定價來實現。坦率地說，成本管理可以跨越多種技術，坦率地說，可以超越這個範圍。所以這是一件複雜的事情，但我們有合適的人來解決這個問題。

As it relates to incentives, I mean, again, I'd say that the whole organization is focused on growth. We'll constantly look at how we incent ourselves and our teams to make sure we maximize that, and that's certainly something that we do every year as we plan for the next year. But I think the real benefit of the buckets is a sharper focus on, for lack of a better term, who gets what. The way we deploy capital, the way we deploy OpEx and our internal resources will be delineated around those buckets, right? And I think that clarity and focus is a benefit to the organization, and I think we'll see that in future results as we go forward.

由於它與激勵措施有關，我的意思是，我想說整個組織都專注於增長。我們將不斷關注我們如何激勵自己和我們的團隊以確保我們最大限度地發揮這一點，這肯定是我們每年都在做的事情，因為我們計劃明年。但我認為桶的真正好處是更加關注，因為沒有更好的術語，誰得到了什麼。我們部署資本的方式，我們部署運營支出的方式和我們的內部資源將圍繞這些桶來描述，對吧？而且我認為清晰和專注對組織是有好處的，我認為隨著我們的前進，我們將在未來的結果中看到這一點。

Thank you. Look, in closing, this has been a very active year for us. In addition to seeing the growth across multiple strategic enterprise product offerings, we closed the LATAM divestiture. We're on the eve of closing our ILEC divestiture. We've ramped Quantum Fiber build while launching new product capabilities. We see significant opportunity ahead for both our Business and Mass Market segments as we focus Lumen on the most strategic and best return opportunities. So I look forward to updating you on our progress as we execute our plan. And thank you for your participation in today's call.

謝謝你。最後，這對我們來說是非常活躍的一年。除了看到多個戰略企業產品的增長之外，我們還完成了 LATAM 的剝離。我們正處於關閉 ILEC 資產剝離的前夕。我們在推出新產品功能的同時增加了 Quantum Fiber 的構建。隨著我們將 Lumen 重點放在最具戰略性和最佳回報機會上，我們看到了我們的商業和大眾市場領域的重大機遇。因此，我期待在我們執行計劃時向您通報我們的進展情況。感謝您參加今天的電話會議。

With that, we will end the call. Thank you again.

這樣，我們將結束通話。再次感謝你。

We would like to thank everyone for your participation and for using the Lumen conferencing service today. This does conclude the conference call. We ask that you please disconnect your lines. Have a great day, everyone.

我們要感謝大家今天的參與和使用 Lumen 會議服務。這確實結束了電話會議。我們要求您斷開您的線路。祝大家有個美好的一天。