Marci Ryvicker: Thanks, Jessica. Operator, next question please.
Operator: Our next question comes from Stephen Kale from Wells Fargo. Your line is now live.
Stephen Kale: Thank you. Just two on the connectivity side of the business, maybe first on the broadband ARPU really strong at 4.5%, I was wondering if you could help us unpack that a little bit, maybe what in there is price increase, how much do you think you are getting from customers up-tiering to faster speeds, and maybe what might be coming from core cutting some of your double play video subs go to single play Internet or Internet plus mobile bundles? And then, on the international side, where revenue growth is really strong, can you just help us think through what kind of margin contribution you get on international? You talked about more headsets in the quarter, I’m guessing those are little lower margin as is some of the U.K. connectivity stuff, but as we just think about that as a growth driver, how should we think about the margin or EBITDA contribution from international? Thank you.
Brian Roberts: Got it. So, let me start with ARPU, and you hit on a couple of the key points. First off, pretty strong performance in the quarters we have said and seen 4.5%. And there are multiple drivers. There was a little bit more rate that we took early on, not why we are different, but a little bit more that we did in the beginning of the year. I think a critical one for us is pyramids. And we have third of our base, that said, a gigabit plus and that’s 75%, 400 megabits are higher. That definitely impacts the overall ARPU. I think one that maybe not is understood as much is maybe as it should be, but we have a wonderful product called xFi Complete, 25% of our base has that. And let me take one sec and describe what’s in it, it’s a gateway, it’s a great gateway that’s included in the tier, with a pass to upgrading the gateway over time, you have an opportunity to do that, and advance security is included in that, unlimited is included in that, and then a coverage plan making sure your whole house is covered.
So, xFi Complete is a great tier, good value to customers, and we have 25% of the base. And then, there is the bundled discount that you mentioned that when customers go to HSD-only, you use the bundled discounts, and so, all of those things factor in. So, I think it’s a positive, there are multiple drivers that are helping, and the thing, Stephen, that starts with is just where the market is going, and I mentioned that before, and you have this very stable group of customers that are just using more, and over time that continues to trend up, and we have this balance of stable base and healthy ARPU growth. On international connectivity, and the margin side, so this is a great growth area for us. And you look at the — from a revenue perspective, just starting with that, because that impacts margin.
The revenue increased 26% this quarter, as Jason said in the call, and the two-thirds of that revenue comes from broadband, which continues to grow at mid-teen level, and was driven by higher level of customers and ARPU, compared to a year-ago. Remaining third is wireless, which tends to have more variable growth quarter-to-quarter due to handsets. And so, this is a solid quarter growth rate. And it will impact margins. But normalizing for mobile side of things, revenue growth, I think maybe the right level to focus on is more closer to 20% level for international connectivity. So, I think this is a strong part of the portfolio, and a definite contributor towards, as Jason as said, one of the main killers of not only just domestic broadband and mobile, but also the international broadband and mobile.
Jason?
