So from a Q4 perspective, we still have low transaction volume for all the reasons that Jessica mentioned. And we had the other factors that Jessica mentioned, so people should go back to that. But the bridge between 75,000 roughly Internet net adds in Q3, we had a little more rural that was behind us, and Spectrum One was contributing as well. And I think both of those were contributors to the small uptick that we saw in Q4. The bigger issue we face, as we keep on saying, is just the lower transaction volume in the marketplace, means fewer selling opportunities — which means fewer selling opportunities for Spectrum One and at the same time as we educate the marketplace on the benefits of that converged product.
Operator: Our next question will come from Vijay Jayant with Evercore ISI.
Vijay Jayant : A couple for Jessica. Just wanted to confirm that the 4 billion of line extension you’re calling out for ’24, ’25, that’s sort of the other limit, assuming that you win in BEAD and it could be potentially low? Is that sort of a budgeting sort of expectation just for clarification? And then given the higher sort of CapEx you have next few years, can you help us think about what it means on taxes? Is there sort of new shield that we can get from the build?
Jessica Fischer : Yes. So the $4 billion, Vijay, I do think that it’s kind of a budgeting exercise, but it’s our expectation, and it’s on the higher end of our expectations. But it all matters how much we win and subsidized builds. And so it really is a matter of sort of what’s available and what makes sense from an ROI perspective for us to spend and to try to get additional passings and generate additional returns. But I think the $4 billion is where we think that we will be based on our expectation of what will happen right now. So that’s probably the way to think about that. On the cash tax, our cash tax liability is always dependent on a number of different variables. We’re a full cash taxpayer now. We’ve previously given guidance on taxes.
If you look back, I think, at what we said in Q4 of 2021, and there’s more CapEx in the plan now, which generally should reduce that liability. But because you don’t have 100% deductibility, you don’t get 100% credit for that anymore. As a result, I would look back at that guidance. And we might be slightly above the percentages that we gave there, maybe 1% or 2% higher, but you can generally sort of look back to that to think about how to estimate cash tax.
Christopher Winfrey : So Vijay, on the rural build, clearly, we’ve disclosed what we’ve won so far on the state grants that primarily come out of ARPA and NTIA funds. The BEAD process is still in process. And so the rules have not been fully clarified. They need to be right in order for it to make sense for us to invest, and we think they will. But then once the maps are clarified, contested, then there will be grants given out to the states in terms of how the funds are distributed. And then the states will have their own process in terms of how they allocate that. So in some sense, our outlook here is really dependent on the rules that get set, the timing of the allocation to the state and then how the states distribute. And so we’re trying to do our best to provide some outlook based on the best view that we have today.
But a lot of that’s not entirely in our hands, and we’re going to do the best we can. And we’ll continue to provide updates along the way to the extent that we have better information.
Stefan Anninger : Chelsea, we’ll take our next question, please.
Operator: Our next question will come from Craig Moffett with SVB MoffettNathanson.
