John Stankey: We’ll give you guidance on 2024 as we typically do later part of this year, and we’ll detail all that out. But as you can see, from all the progress we’ve made and what’s going on right now, we’re really satisfied that we’ve got the right kind of machine to build the way we want to build and the network is performing in a great way and all of our indicators back from our customers, they’re very satisfied with the level of experience they have. So everything, I think, feels pretty good about that right now.
Pascal Desroches: Yes. Simon, just to be clear, I said it in my commentary. We are past peak investment as we exit this year. And we’ll give our guidance at the same time as we usually do. But clearly, we don’t expect to be at the levels of capital you’ve seen us invest in 2022 and 2023.
Simon Flannery: Thanks a lot.
Operator: Our next question will come from the line of Phil Cusick of JPMorgan. Please go ahead.
Philip Cusick: Hi. Thank you. First just a little more direct one of Simon’s questions. Where are you on the deployment of 3 gigahertz spectrum for 5G across your sell sites? And then a bigger question. Can you talk about the 2Q seasonality in the fiber business? Is this more gross add or churn driven? And do you now expect positive seasonality in the third quarter? Thank you.
Pascal Desroches: Phil, Good morning. Through the end of the second quarter, we are at around $175 million POPs covered, well on track to deliver on the $200 million we had guided to earlier in the year.
John Stankey: And look, I don’t think I’d characterize second quarter’s seasonality per se. I think I’ve been pretty clear, Phil, on, one, we had a significant account migration issue to both of our significant competitors rejiggered their offers in the market, which drove some shift in share. And I expect we’ll probably see more normalized things now. As you know, there’s device introductions that occur in the latter part of the year that certainly drives the seasonality of the upgrade cycle. And typically in 3Q, there’s always that question of exactly what month that happens in. Does it happen in the end of 3Q or does it get pushed into 4Q? And we’ll all probably find out about the same time on that as to what happens in this year’s cycle that sometimes can move some numbers in 3Q and 4Q, but those are usually directly tailorable to the offer that’s in the market.
And on a year-over-year basis that could impact things that there’s a difference of what happens in 2023 versus 2024 as well as how different the devices are that are offered if that spikes a little bit of activity.
Philip Cusick: Sorry, John, I wasn’t clear. I was asking about the fiber a little bit softer in the second quarter?
John Stankey: I’m sorry Phil.
Philip Cusick: Seasonally stronger.
John Stankey: Yes. So yes, there is that seasonal movement in fiber and broadband and I apologize for misunderstanding your question. There is probably two things driving it. One is, you probably heard from others in the industry, there is less move activity going on in general. And that has had a degree of impact. There is the seasonal dynamic that occurs in some of the out for college and university work as well. I expect that things are probably going to continue to be a bit softer in the market, because I don’t expect that we’re going to see housing movement necessarily recover. I don’t — I think it’s an artifact of mortgage rates and people’s ability to make those discretionary moves. But look, I feel really comfortable about our ability to continue to add along the clip that we’re adding right now, because we’re more dependent on share take than we are on mover activity.
And that’s a little bit different for us than maybe others in the market that don’t necessarily have the share take opportunity that we have. So I don’t think you’re going to see further slowing on what we’ve kind of witnessed in the second quarter. And I think you will see a little bit of a seasonality uptick that’s going to come with what typically happens in third quarter, but it will be a bit muted, because I expect that there’s going to be a little bit less movement activity in the housing market.
