Shenandoah Telecommunications Co (SHEN) 2026 Q1 法說會逐字稿

Good morning, everyone. Welcome to Shenandoah Telecommunications first-quarter 2026 earnings conference call. Today's conference is being recorded.

各位早安。歡迎參加 Shenandoah Telecommunications 2026 年第一季財報電話會議。今天的會議正在錄音。

At this time, I would like to turn the conference over to Mr. Lucas Binder, VP of Corporate Finance for Shentel.

此刻，我想將會議交給 Shentel 企業財務副總裁 Lucas Binder 先生。

Good morning, and thank you for joining us. The purpose of today's call is to review Shentel's results for the first-quarter of 2026. Our results were announced in a press release distributed this morning. In addition, we filed our Form 10-Q with the SEC. The presentation we will be reviewing is included on the Investor page on our investor.shentel.com website.

各位早安，感謝各位加入。我們今天的電話會議旨在回顧 Shentel 2026 年第一季的營運成果。我們的結果已於今早透過新聞稿對外發布。此外，我們也已向美國證券交易委員會（SEC）提交 Form 10-Q。我們將檢視的簡報已放在 investor.shentel.com 網站的投資人頁面上。

Please note that an audio replay of this call will be made available later today. The details are set forth in the press release announcing this call. With us on the call today are Ed McKay, President and Chief Executive Officer; and Jim Volk, Senior Vice President and Chief Financial Officer. After the prepared remarks, we will conduct a question-and-answer session.

請注意，本次電話會議的音訊重播將於今日稍晚提供。相關細節已載明於宣布本次會議的新聞稿中。今天與會者包括總裁兼執行長 Ed McKay，以及資深副總裁兼財務長 Jim Volk。準備好的發言結束後，我們將進行問答環節。

I refer you to slide 2 of the presentation, which contains our safe harbor disclaimer and remind you that this conference call may include forward-looking statements subject to certain risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements. Additionally, we provided a detailed discussion of various risk factors in our SEC filings, which you are encouraged to review.

請參閱簡報第 2 頁，其中包含我們的安全港聲明，並提醒各位，本次電話會議可能包含前瞻性陳述，且受特定風險與不確定性影響，可能導致實際結果與這些前瞻性陳述存在重大差異。此外，我們在向 SEC 提交的文件中亦對各項風險因素提供了詳細討論，建議各位查閱。

You are cautioned not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to publicly update or revise any forward-looking statements.

敬請各位勿過度依賴這些前瞻性陳述。除法律要求外，我們不承擔公開更新或修訂任何前瞻性陳述的義務。

With that, I will now turn the call over to Ed. Go ahead, Ed.

接下來，我將把電話會議交給 Ed。Ed，請開始。

Thanks, Lucas. Good morning, everyone, and thank you for joining us today. Starting on slide 4, I'll share some of our first-quarter highlights. During the quarter, we released 22,000 passings to sales, bringing our total Glo Fiber expansion markets passings to 449,000. We added approximately 6,000 Glo Fiber net customers in the first-quarter, a 9% improvement over the prior year period, and we now serve a total of 94,000 customers.

謝謝你，Lucas。各位早安，感謝今天加入我們。從第 4 頁開始，我將分享第一季的一些重點。在本季，我們新增 22,000 個可銷售覆蓋點（passings），使我們 Glo Fiber 擴張市場的累計覆蓋點達到 449,000。第一季我們約新增 6,000 名 Glo Fiber 淨增客戶，較去年同期提升 9%，目前總服務客戶數達 94,000。

Our Commercial Fiber business also delivered a strong quarter with 196,000 in sales bookings and revenue growth of 4.7% year-over-year. Collectively, these results demonstrate the excellent momentum we continue to see in our fiber businesses. We were also pleased with our first-quarter financial results. Consolidated revenues and adjusted EBITDA grew 4.8% and 15% year-over-year, respectively, and we remain on track to deliver positive free cash flow in 2027.

我們的商用光纖業務同樣繳出強勁的一季，新增銷售訂單（bookings）達 196,000，營收年增 4.7%。整體而言，這些成果展現我們在光纖業務上持續看到的優異動能。我們也對第一季的財務表現感到滿意：合併營收與調整後 EBITDA 分別年增 4.8% 與 15%，我們仍按計畫在 2027 年實現正向自由現金流。

Turning to slide 5. We highlight our integrated broadband network that spans more than 19,000 fiber route miles across 8 states with over 700,000 total broadband passings. As shown on the map, all planned Glo Fiber markets have now been launched, and our primary focus is adding passings in our existing Virginia, Pennsylvania, Maryland and Ohio markets.

接著看第 5 頁。我們重點介紹整合式寬頻網路：橫跨 8 個州、超過 19,000 光纖路由英里（fiber route miles），總寬頻覆蓋點（passings）超過 700,000。如地圖所示，所有規劃中的 Glo Fiber 市場均已啟動，我們目前的主要重點是於既有的維吉尼亞、賓夕法尼亞、馬里蘭與俄亥俄市場增加覆蓋點。

We remain on track to complete our Glo Fiber expansion in 2026, reaching 510,000 passings. On slide 6, our sales and marketing team continues to drive strong growth across our Glo Fiber expansion markets. And during the first-quarter, we added approximately 6,000 new customers and nearly 7,000 total video, voice and data revenue-generating units.

我們仍按計畫在 2026 年完成 Glo Fiber 擴張，覆蓋點達到 510,000。第 6 頁顯示，我們的銷售與行銷團隊持續推動 Glo Fiber 擴張市場的強勁成長。第一季我們約新增 6,000 名新客戶，並新增近 7,000 個可產生營收的影像、語音與數據單元（RGUs）。

Our 5-year price guarantee rate card introduced in the second half of 2025 is gaining traction, supported by the expansion of our door-to-door sales channel. Over the past 12 months, we have added more than 23,000 new data customers, more than 26,000 total RGUs as well. Total Glo Fiber revenue-generating units surpassed 110,000 in the first-quarter, up 31% compared to the prior year. Moving to slide 7.

我們於 2025 年下半年推出的 5 年價格保證資費表（rate card）正逐步獲得市場認可，並受惠於我們擴大到府銷售通路。在過去 12 個月，我們新增超過 23,000 名數據新客戶，總 RGUs 亦新增超過 26,000。第一季 Glo Fiber 營收產生單元總數突破 110,000，較去年同期成長 31%。接著看第 7 頁。

first-quarter construction was strong with over 22,000 passings added, bringing the total to more than 449,000. Coupled with the continued increase in homes passed, penetration rose to 20.9%, a 30 basis point increase over the fourth-quarter and 150 basis point increase year-over-year. Penetration trends across our Glo Fiber cohorts are shown on slide 8 and reflect blended penetration rates for both residential and small and medium business passings.

第一季建設表現強勁，新增超過 22,000 個覆蓋點，使總數超過 449,000。隨著覆蓋住戶持續增加，滲透率提升至 20.9%，較第四季增加 30 個基點，年增 150 個基點。第 8 頁呈現我們各 Glo Fiber 分群（cohorts）的滲透率趨勢，反映住宅與中小企業覆蓋點的加權滲透率。

We are expecting data penetration rates of approximately 37%, 5 to 7 years after launching the market, and our most mature cohorts launched in 2019 and 2020 have now exceeded this with an average penetration rate of 37.5%. In addition to providing the fastest speeds in our markets, we continue to focus on providing outstanding local customer service.

我們預期在市場啟動後 5 至 7 年，數據滲透率約可達 37%；而我們最成熟、於 2019 與 2020 年啟動的分群目前已超越該水準，平均滲透率達 37.5%。除了在市場中提供最快速的網速外，我們也持續專注於提供卓越的在地客戶服務。

As shown on slide 9, our average monthly churn was 0.92% in the first-quarter, which continues to be among the best in the industry. Broadband data average revenue per user for the first-quarter was stable sequentially and year-over-year at more than $77. We continue to have success selling up the rate card with nearly 82% of our new residential customers in the first-quarter, selecting speeds of 1 gig or higher, including 18% choosing 2-gig service and 5% choosing 5-gig service.

如第 9 頁所示，第一季我們的平均月流失率（churn）為 0.92%，持續維持在業界最佳水準之一。第一季寬頻數據每戶平均營收（ARPU）較前一季與去年同期皆持平，維持在 77 美元以上。我們在資費升級銷售方面持續成功：第一季新增住宅客戶中，近 82% 選擇 1Gbps 或更高速度，其中 18% 選擇 2Gbps 服務，5% 選擇 5Gbps 服務。

Our commercial fiber business is highlighted on slide 10. In the first-quarter, incremental monthly sales bookings exceeded 196,000, driven by strong demand from wireless carriers, wholesale customers and school systems. Our service delivery team installed 167,000 in new monthly revenue during the quarter and the acquired Verizon backlog that drove elevated installation activity in 2025 is now substantially complete.

第 10 頁重點介紹我們的商用光纖業務。第一季新增每月銷售訂單（incremental monthly sales bookings）超過 196,000，主要由無線電信業者、批發客戶與學校系統的強勁需求帶動。我們的服務交付團隊在本季完成安裝並新增每月營收 167,000；而 2025 年因收購 Verizon 積壓案量（backlog）所帶動的較高安裝活動，目前已大致完成。

Average monthly compression and disconnect churn remained very low at 0.4% in the first-quarter, reflecting exceptional support from both our network operations center and sales team. Turning to slide 11. We show our operating results for our incumbent broadband markets. At the end of the first-quarter, we served more than 111,000 broadband data customers.

第一季平均每月壓縮與斷線流失率（compression and disconnect churn）仍維持在極低的 0.4%，反映我們網路營運中心與銷售團隊提供的卓越支援。接著看第 11 頁，我們展示既有寬頻市場（incumbent broadband markets）的營運成果。截至第一季末，我們服務的寬頻數據客戶超過 111,000。

Data, voice and video RGUs totaled more than 156,000 at year-end, down 4% year-over-year, primarily due to video customers moving to online streaming services. Total broadband passings in our incumbent markets stayed steady compared to the fourth-quarter, and we expect to complete 1,800 additional government-subsidized incumbent grant passings in 2026, primarily in West Virginia.

截至年末，數據、語音與影像 RGUs 合計超過 156,000，年減 4%，主要因影像客戶轉向線上串流服務。我們既有市場的寬頻覆蓋點總數較第四季維持穩定；我們預期於 2026 年完成額外 1,800 個由政府補助的既有市場補助案覆蓋點（incumbent grant passings），主要位於西維吉尼亞州。

As shown on slide 12, the recently constructed subsidized passings represent a strong growth segment for our incumbent markets with data penetration exceeding 40% within 6 quarters of a neighborhood launch. Average penetration in our 2023 cohorts is over 52% with the oldest cohort reaching 71%. We've already achieved an aggregate penetration of 37% across 23,000 subsidized passings. Moving to slide 13.

如第 12 頁所示，近期建置完成的補助覆蓋點代表我們既有市場中一個強勁的成長區塊：在社區啟動後 6 個季度內，數據滲透率即超過 40%。我們 2023 年分群的平均滲透率超過 52%，其中最早的分群達到 71%。我們在 23,000 個補助覆蓋點上，已達成合計 37% 的整體滲透率。接著看第 13 頁。

Monthly broadband data churn was stable sequentially and up modestly year-over-year at 1.46% for the first-quarter. The slight uptick in churn was due to promotional activity from satellite competition in some of our most rural markets without a fixed Wireline competitor. In these markets, we implemented a speed increase late in the first-quarter, providing customers with higher speeds at the same price to better differentiate our service from satellite offerings.

第一季每月寬頻數據流失率（churn）環比保持穩定，且同比小幅上升至 1.46%。流失率的些微上升主要是因為在我們部分最偏遠、且沒有固定有線（Wireline）競爭對手的市場中，衛星競爭者推出促銷活動所致。在這些市場，我們於第一季末實施了網速提升，讓客戶以相同價格享有更高速度，以更好地將我們的服務與衛星方案區隔。

Across approximately 1/3 of our passings where we face another fixed broadband competitor, our rate card strategy of offering greater value with higher speeds at the same price continues to be effective at mitigating churn. As expected, broadband data ARPU declined 1.6% from a year ago to $82, driven by the addition of new customers with more aggressive pricing in our competitive markets.

在約三分之一我們的覆蓋範圍（passings）中，我們面臨另一家固定寬頻競爭對手；在這些區域，我們以相同價格提供更高速度、帶來更高價值的價目表（rate card）策略，持續有效地抑制流失。如預期，寬頻數據 ARPU 較去年下降 1.6% 至 82 美元，主要因在競爭市場新增客戶採用更具進取性的定價所致。

I'll now turn the call over to Jim to walk you through our first-quarter financial results.

接下來我把電話交給 Jim，請他帶大家回顧我們第一季的財務結果。

Thank you, Ed, and good morning, everyone. I'll start on slide 15 with financial results for the first-quarter. Revenues grew 4.8% to $92.2 million, driven by another quarter of strong Glo Fiber expansion market revenue growth of $6.4 million or 34.6% due to a 33.7% increase in data subscribers and stable data ARPU. Commercial Fiber revenue grew $900,000 or 4.7% year-over-year, driven primarily by growth among existing customers in the enterprise and carrier verticals.

謝謝你，Ed，各位早安。我將從第 15 頁投影片開始說明第一季財務結果。營收成長 4.8% 至 9,220 萬美元，主要由 Glo Fiber 擴張市場再度帶來強勁營收成長所驅動，增加 640 萬美元或 34.6%，原因在於數據用戶（data subscribers）增加 33.7% 且數據 ARPU 保持穩定。商用光纖（Commercial Fiber）營收同比增加 90 萬美元或 4.7%，主要由企業與電信營運商（carrier）垂直領域既有客戶的成長所帶動。

Incumbent broadband markets revenue declined $2.2 million, primarily due to lower video revenue from a 14.6% decline in video RGUs as customers switched to streaming video services and to a lesser extent, lower data revenues due to a 1.6% decline in data ARPU from a more aggressive rate card in competitive markets.

既有寬頻市場（incumbent broadband markets）營收下滑 220 萬美元，主要因影片（video）營收下降，影片 RGU 下滑 14.6%，客戶轉向串流影音服務；此外，競爭市場採取更具進取性的價目表也使數據 ARPU 下降 1.6%，進而在較小程度上拖累數據營收。

RLEC revenues declined $800,000, primarily due to lower DSL revenue from a 28% decline in DSL RGUs and lower government grant support revenues. Approximately half of the decline in DSL RGUs was due to customer upgrades to our broadband service. Adjusted EBITDA grew $4.1 million or 15% to $31.7 million, driven by $4.3 million in revenue growth and slightly higher operating expenses.

RLEC 營收下降 80 萬美元，主要因 DSL RGU 下滑 28% 導致 DSL 營收降低，以及政府補助支持收入減少。DSL RGU 下滑約有一半是因客戶升級至我們的寬頻服務。調整後 EBITDA 增加 410 萬美元或 15% 至 3,170 萬美元，受 430 萬美元營收成長與營運費用小幅上升所帶動。

Adjusted EBITDA margins increased 300 basis points to 34.4% in the first-quarter of 2026 as compared to the first-quarter 2025 due to a combination of high incremental margins in Glo Fiber, fewer lower-margin video customers and a favorable true-up related to a government grant. Turning to slide 16. We reiterate our annual guidance for 2026.

2026 年第一季調整後 EBITDA 利潤率較 2025 年第一季提高 300 個基點至 34.4%，原因包括：Glo Fiber 的高增量利潤率、低毛利的影片客戶減少，以及與政府補助相關的有利追溯調整（true-up）。接著看第 16 頁投影片，我們重申 2026 年全年指引。

We expect revenues of $370 million to $377 million, adjusted EBITDA of $131 million to $136 million and CapEx net of grant reimbursements to be $220 million to $250 million. Moving to slide 17. We invested $75.8 million in capital expenditures in the first-quarter 2026 and collected $11.5 million in government grants for net CapEx of $64.3 million.

我們預期營收為 3.70 億至 3.77 億美元，調整後 EBITDA 為 1.31 億至 1.36 億美元，扣除補助報銷後的資本支出（CapEx）為 2.20 億至 2.50 億美元。接著看第 17 頁投影片。2026 年第一季我們投入 7,580 萬美元資本支出，並收取 1,150 萬美元政府補助，因此淨資本支出為 6,430 萬美元。

CapEx declined 16% compared to the first-quarter of 2025 due to completing 91% of the incumbent broadband markets government subsidized builds to unserved areas in 2025. We have also completed construction of 88% of our target Glo Fiber passings as of March 31 and expect to complete the Glo Fiber expansion by the end of '26. I'd now like to update you on our liquidity and debt maturities on slide 18.

由於我們在 2025 年已完成既有寬頻市場政府補助的未覆蓋區域建設（builds）之 91%，因此資本支出較 2025 年第一季下降 16%。截至 3 月 31 日，我們也已完成目標 Glo Fiber 覆蓋戶數（passings）建設的 88%，並預期於 26 年底前完成 Glo Fiber 擴張。接下來我想在第 18 頁投影片更新我們的流動性與債務到期情況。

As of March 31, we had $707 million in outstanding debt and $636 million of net debt. We have no debt maturities until 2029. Total available liquidity was approximately $195 million as of March 31, consisting of $44 million of cash and cash equivalents, $27 million in restricted cash, $18 million available under the VFN, $68 million available under the RCF and $38 million remaining reimbursements available under government grants.

截至 3 月 31 日，我們未償債務為 7.07 億美元，淨負債為 6.36 億美元。我們在 2029 年之前沒有任何債務到期。3 月 31 日的可用總流動性約為 1.95 億美元，包括 4,400 萬美元現金及約當現金、2,700 萬美元受限制現金、VFN 項下可用 1,800 萬美元、RCF 項下可用 6,800 萬美元，以及政府補助尚可取得的 3,800 萬美元報銷額度。

In addition, the company has over $117 million of VFN commitments that are not available to draw as of March 31. We expect the available VFN capacity to reach the commitment levels with continued growth in the secured fiber network revenues from the ABS entities. In summary, as noted on slide 19, we have three catalysts converging that we expect will lead us to generating and growing positive free cash flow in 2027 and beyond.

此外，截至 3 月 31 日，公司尚有超過 1.17 億美元的 VFN 承諾額度，但目前尚不可動用。我們預期，隨著 ABS 實體所擔保的光纖網路營收持續成長，可用的 VFN 額度將提升至承諾水準。總結而言，如第 19 頁投影片所示，我們預期有三項催化因素同時匯聚，將帶動我們在 2027 年及之後產生並成長為正的自由現金流。

low double-digit adjusted EBITDA growth rates driven by our fiber businesses, declining capital intensity as we exit the construction phase of our business plan and declining cost of capital after refinancing our debt in 2025.

由光纖業務帶動的調整後 EBITDA 低雙位數成長率、隨著我們退出商業計畫的建設階段而下降的資本強度，以及在 2025 年為債務再融資後資本成本下降。

Thank you. And operator, we are now ready for questions.

謝謝。接線員，我們現在準備開始提問。

(Operator Instructions) Hamed Khorsand, BWS Financial.

（接線員指示）Hamed Khorsand，BWS Financial。

First question is just, are you seeing any changes or challenges in adding subscribers given the competitive nature that you're talking about in your markets?

第一個問題是，鑑於你們提到市場競爭激烈，你們在新增用戶方面是否看到任何變化或挑戰？

In our Glo Fiber markets, we're not. Our net adds were up 9% over the first-quarter of 2025. So we're very pleased with our progress there. We did mention in our incumbent markets, we did see a little bit of churn to Starlink with some of the promotional offers they launched in the first-quarter. But other than that, we're on plan as expected.

在我們的 Glo Fiber 市場，沒有。我們的淨新增用戶較 2025 年第一季成長 9%，因此我們對那裡的進展非常滿意。我們確實提到在既有市場中，第一季 Starlink 推出一些促銷方案後，我們看到些微流失。但除此之外，一切都如預期按計畫進行。

Okay. And then as far as the change of goes ending your construction phase and going into more of a subscriber growth phase here, are you going to be increasing marketing expense? Or is this -- should we expect just CapEx to decline and it's just going to be incremental here to cash flow?

了解。那麼關於你們結束建設階段、轉向更偏向用戶成長階段的變化，你們會增加行銷費用嗎？或者說——我們是否應該預期資本支出下降，而對現金流的影響主要就是這部分的增量？

Yes. I would expect marketing expense to be similar and the primary impact will be the decline in CapEx.

是的。我預期行銷費用會大致相近，主要影響將是資本支出的下降。

Christian Schwab, Craig-Hallum.

Christian Schwab，Craig-Hallum。

Yes. Congratulations on the solid results. On your ASP on the Glo Fiber business and the recent areas and trends of moving from just not just 1 gig speed or higher at 82%, but having people want 2% and 5%. Do you think those trends are sustainable over a multiyear period? And do you have any target expectations for customers' needs for higher speeds at 2 gigabytes, excuse me.

是的。恭喜你們交出穩健的結果。關於 Glo Fiber 業務的 ASP，以及近期在區域與趨勢上，從不僅僅是 1G 或更高速度占比 82%，而是有人想要 2G 和 5G。你認為這些趨勢在多年期間是否可持續？另外，對於客戶對更高速度（例如 2 gigabytes，抱歉）的需求，你們有任何目標或預期嗎？

And above as your penetration rates go to your target levels on the fiber that's been laid in the last few years, meaning your blended ASP at $77, I think in most markets, your 1 gig product is priced around $65. So do you see ASP trends in that business increasing over time? Or is it too early to tell?

以及，當你們在過去幾年鋪設的光纖滲透率提升至目標水準時——也就是你們的混合 ASP 約 77 美元，我想在多數市場你們的 1G 產品定價約 65 美元——你們是否看到該業務的 ASP 隨時間上升的趨勢？還是現在判斷仍為時過早？

I'd say medium term, we are offering five-year price guarantees on the higher speed tiers. But longer term, I think there's opportunity there. And we were very pleased with the speed mix in the past quarter. The demand is out there for those higher speeds, and we do think that's sustainable going forward.

我會說在中期，我們對較高速度級距提供五年價格保證。但從更長期來看，我認為那裡有機會。我們對上季的速度組合非常滿意。市場確實存在對更高速度的需求，我們也認為未來這是可持續的。

Okay. Fantastic. And then on the commercial fiber business, could you just remind us what your growth objectives are there and how you see that market over a multiyear time frame doing for you? And the potential for you to add additional subscribers?

好的。太棒了。接著關於商用光纖業務，能否請您再提醒我們你們在那邊的成長目標是什麼，以及你們如何看待該市場在未來多年時間尺度上對你們的表現？以及你們新增更多用戶的潛力？

Well, I'll start, and then I'll pass it over to Jim. One opportunity we do see is with the data centers moving out to our more rural areas, we think that's an additional opportunity for incremental revenue. We're really not playing in the hyperscalers space today. There have been several data center announcements in our markets. We think we certainly have the opportunity to win our share of those services, and that would be additive to our current revenue. And I'll let Jim talk a little about the growth projections.

我先說，然後再交給 Jim。有一個我們確實看到的機會是，資料中心正往我們較偏鄉的地區外移，我們認為這會帶來額外的增量營收機會。我們目前其實沒有在超大規模（hyperscalers）領域布局。近期在我們的市場裡有幾項資料中心的公告。我們認為我們當然有機會贏得其中一部分服務，這將會在我們現有營收之上帶來增量。我也請 Jim 談談成長預測。

Yes, Christian, we're generally expecting mid-single-digit revenue growth rates from the commercial business over like a three- or four-year period. It's important to note, this is a little bit of a lumpy business. Some of the larger deals like what Ed mentioned that we're working on, on the hyperscalers and some of the carrier business tends to be a little lumpy.

是的，Christian，我們一般預期商用業務在大約三到四年的期間內，營收成長率會落在中個位數。需要注意的是，這個業務的波動性會比較大。有些較大型的案子，例如 Ed 提到我們正在推進的、與超大規模客戶以及部分電信業者相關的業務，通常會比較不均勻、呈現跳躍式。

But we do have -- each quarter, we're adding more enterprise customers along the way as well. But yes, we think there's a nice growth opportunity here in the mid-single-digit growth rates.

不過我們也確實——每一季都在持續新增更多企業客戶。所以是的，我們認為這裡有不錯的成長機會，成長率大概在中個位數。

Great. And then a follow-up on the data center for clarity. Can you just remind us of the miles of fiber that you have and the connectivity potential that you have in data center so people can understand maybe potentially a little bit better why data center customers would be coming to you?

很好。接著針對資料中心再追問一下以釐清。你們能否再提醒我們你們擁有多少英里的光纖，以及在資料中心方面你們具備的連接潛力，讓大家能更理解為什麼資料中心客戶可能會找上你們？

So 19,000-plus route miles of fiber in total. Our fiber network stretches from Chicago all the way to the Washington, DC, Ashburn, Virginia area. We get major markets in between like Columbus, Ohio, like Pittsburgh. And we have many unique fiber routes. So as these data centers move out further from the metropolitan areas, seeking areas with land and power, we believe we have the opportunity to take advantages of those unique fiber routes that we have and gain some of that business.

我們總共有超過 19,000 英里的光纖路由里程（route miles）。我們的光纖網路從芝加哥一路延伸到華盛頓特區、維吉尼亞州 Ashburn 一帶。中間涵蓋多個主要市場，例如俄亥俄州哥倫布、例如匹茲堡。而且我們有許多獨特的光纖路由。因此，當這些資料中心為了土地與電力而進一步遠離都會區外移時，我們相信我們有機會善用這些獨特路由，取得部分業務。

Can you give us an idea what the revenue potential would be not this year, but over a multiyear time frame, given that trend as data centers move out a little bit away from metro into rural areas that might want to take advantage of your 19,000 fiber miles. Can you give us an idea of the revenue potential, not an estimate, but maybe an aspiration or goal that you guys may have for that market?

你們能否談談在不是今年、而是多年時間尺度上，隨著資料中心從都會區往外移到偏鄉、可能想利用你們 19,000 英里光纖的這個趨勢下，營收潛力大概會是什麼樣子？不是要你們給出估算，但也許可以分享一個願景或目標，你們對那個市場可能有的期待？

Yes, Christian, I think it would be a little premature to get into revenue expectations. But I can tell you, there is about 20 data centers being either built or being built close to our fiber in the 8 states that we operate in. So not clear to me whether all of them are actually going to get built. But if they do get built, we think we're in a prime position to win some business.

是的，Christian，我想現在談營收預期可能還有點太早。不過我可以告訴你，在我們營運的 8 個州裡，大約有 20 座資料中心正在興建中，或是將在靠近我們光纖的地方興建。我不確定它們是否都會真的建成。但如果都建成了，我們認為我們處於非常有利的位置，可以贏得一些業務。

(Operator Instructions) Vikash Arlaka, New Street Research.

（接線員指示）Vikash Arlaka，New Street Research。

There's a lot of concern among broadband investor base around pricing power and broadband ARPU growth for the industry. Do you think that broadband businesses have pricing power today? Or are we entering a period of deflation for the business? And then I have a follow-up.

寬頻投資人圈對於產業的定價能力以及寬頻 ARPU 成長有很多擔憂。你們認為寬頻業務今天仍有定價能力嗎？還是我們正進入一段業務通縮的時期？我還有一個追問。

So I'll say in our Glo Fiber business, we're expecting fairly flat ARPU in the near term. I think over time, we do gain that pricing power. And then our incumbent business, we mentioned earlier, as we've seen some competition in our markets, we have seen a slight decline in ARPU there. So it's -- I think it's a bit of a mix depending on which business you're looking at.

我會說，在我們的 Glo Fiber 業務方面，我們預期短期內 ARPU 大致持平。我認為隨著時間推進，我們會逐步取得那樣的定價能力。至於我們的既有（incumbent）業務，我們先前提到，因為在部分市場看到競爭，我們那邊的 ARPU 確實出現些微下滑。所以——我想這會是個混合情況，取決於你看的是哪一塊業務。

Add to that. In our incumbent business, about 2/3 of the passings, we are the only fixed wireline provider. So we do think we have some pricing power there as well.

再補充一點。在我們的既有業務中，大約 2/3 的覆蓋戶數（passings），我們是唯一的固定有線供應商。因此我們也確實認為那裡仍有一定的定價能力。

Got it. That's helpful. And then I just wanted to go back to your comment about increased competition from Starlink during the quarter. It sounds like the competition was mainly because Starlink had some promotions. And so did you lose customers on the growth add side or churn or both? And do you see this competition as continuing from here? And if so, what's your plan on addressing this increased competition?

了解，這很有幫助。接著我想回到你們提到本季 Starlink 競爭加劇的評論。聽起來競爭主要是因為 Starlink 有一些促銷。所以你們流失的客戶是來自新增用戶端（growth add）還是流失率（churn），或兩者都有？你們認為這種競爭接下來會持續嗎？如果會，你們打算如何應對這種加劇的競爭？

So we only saw the impact in the most rural areas of our incumbent broadband market. We saw really no impact in Glo Fiber and no impact in the majority of our incumbent passings. So what they started offering in the first-quarter was $15 off for 4 months as a promotion. But I think the biggest factor was they offered free equipment. It was previously $350 , so we'll see how long this lasts.

我們只在既有寬頻市場中最偏鄉的區域看到影響。在 Glo Fiber 幾乎沒有影響，在我們既有覆蓋戶數（passings）的絕大多數也沒有影響。他們在第一季開始提供的促銷是前 4 個月每月折 $15。但我認為最大的因素是他們提供免費設備。之前設備費是 $350，所以我們會觀察這會持續多久。

They could be offering these promotions in preparation for a potential IPO later this year. But we have the ability to increase speeds. So we've done that. Late in the first-quarter, we increased speeds significantly in our rural incumbent areas. Most of those customers that left were on legacy rate cards. So we've given those customers more value for the same price, and we think that will help mitigate.

他們可能是在為今年稍晚可能的 IPO 做準備而推出這些促銷。不過我們有能力提升網速，所以我們也這麼做了。在第一季末，我們在偏鄉的既有業務區域大幅提升了速度。離開的大多數客戶原本使用的是舊的資費表（legacy rate cards）。因此我們在同樣價格下提供了更高的價值，我們認為這將有助於降低影響。

Christian Schwab, Craig-Hallum.

Christian Schwab，Craig-Hallum。

Yes. Just a quick follow-up on that. Just on the Starlink promotion in your most rural market, these are very slow speeds. Can you just quantify a little bit more clarity around your commentary to compete with Starlink, how you increased -- give us an idea of what speed you were operating at to what speed you can move customers to compete with Starlink because this really isn't the competition for fiber at 1, 2 and 5 gig speeds.

是的，就這點快速追問一下。關於你們最偏鄉市場的 Starlink 促銷，那些速度其實很慢。你能否更量化、再清楚一點說明你們為了與 Starlink 競爭而提升速度的評論——也就是請給我們一個概念：你們原本提供的速度大概是多少、以及你們可以把客戶提升到什麼速度來與 Starlink 競爭？因為這其實不是在跟 1、2、5Gb 光纖速度競爭。

Yes. So in all of these markets, we have the ability to offer gigabit speeds. And I think it was a -- customers were looking for a potentially lower-priced alternative. But when you compare our pricing to Starlink's pricing, after that promotional discount expires, we're actually favorable from a pricing standpoint and a speed standpoint. So we'll see how long these customers stay on Starlink. We certainly think we have the opportunity to win some of those back as well.

是的。在所有這些市場，我們都有能力提供 Gigabit 等級的速度。我認為——客戶是在尋找可能更低價的替代方案。但當你把我們的定價與 Starlink 的定價相比，在促銷折扣到期之後，無論從價格或速度角度，我們其實更具優勢。所以我們會看看這些客戶會在 Starlink 待多久。我們也確實認為我們有機會把其中一些客戶再贏回來。

Thank you. I would now like to turn the call back over to Ed McKay for any closing remarks.

謝謝。現在我想把電話交回給 Ed McKay，請他做任何結語。

Thank you for joining us today. We look forward to updating you on our progress in the future quarters. And operator, that concludes our call.

感謝各位今天加入。我們期待在未來幾季向各位更新我們的進展。接線員，我們的電話會議到此結束。

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

謝謝。本次電話會議到此結束。感謝各位的參與。您現在可以掛線。