Array Digital Infrastructure (AD) Raymond James TMT and Consumer Conference summary

Industry trends and convergence

• Convergence between wireless and cable is seen as real and accelerating, with bundling and price competition driving early stages, but deeper integration expected as Wi-Fi offload and dual SSID technologies mature.

• Cable companies are gaining wireless market share, with penetration expected to double in the next five years.

• Fixed wireless is growing, especially in rural and suburban areas, but is viewed as a complementary product rather than a primary competitor to fiber.

• Direct-to-device satellite connectivity is considered complementary for rural coverage, not a replacement for terrestrial wireless or fiber.

• AI is already being used for churn modeling and network planning, with expectations for broader industry impact.

Strategic transactions and asset monetization

• Wireless operations and significant spectrum holdings are being sold to major carriers, with remaining C-band and millimeter wave spectrum to be monetized in the future.

• Minority partnerships generate strong cash flow and are not actively being marketed for sale, but offers would be considered.

• Post-transaction, the focus will shift to running and growing the tower business and partnerships, with potential for REIT conversion under evaluation.

• Tower business is expected to achieve 50%+ margins over the next three to five years, with growth driven by increasing tenancy ratios.

• Reporting for the tower segment will evolve to align with industry standards as transactions close.

Fiber and operational transformation

• Fiber expansion is on track, with targets to reach 1.2 million service addresses by 2026 and fiber penetration expected to approach 80% by 2028-2029.

• E-ACAM funding will accelerate fiber deployment, especially in areas currently served by DSL.

• Operational streamlining is underway, including a unified back office platform and a transformation office to drive cost reductions and margin improvements toward the mid-40% range.

• Door-to-door sales productivity is improving through the use of contractors, addressing earlier challenges in fiber adoption rates.

• Participation in NCTC enables better MVNO terms and technology purchasing, helping smaller players achieve scale benefits.