Jay Brown: Good morning, Dave. On your first question around the agreements with the carriers, I think you are going to see over time in that business, a combination of large scale agreements with the carriers where whether they give us whole markets or a number of markets, we will probably see large-scale agreements with carriers over time. We expect those large-scale agreements to be lumpy. So we wouldn’t expect to see them every quarter or even every year, but it will be dependent upon the way that the carriers are thinking about the network and where the holes are and where the need is. I think there is value in some of those large-scale agreements, particularly with respect to securing the resources when concentrated in some €“ in a few markets.
So I think you will continue to see those. I also think you will continue to see what we saw in the fourth quarter, where carriers give us business and they are not at large scale and we do them in smaller chunks. So I think both are going to be there. I don’t think one or the other is representative of an underlying trend or nature of the business. The carriers, I think, as I say, will contract with us, I think on both basis. And I think over time, big picture and we have talked about this for years, because of our disciplined and rigorous approach to capital allocation and our view of where small cells are going to be needed, everywhere that small cells are needed is not necessarily attractive for us to put capital to work. So we’re going to pick and choose where we decide to put capital to work, which means the carriers are either going to need to find other providers who are willing to deploy capital at lower return thresholds than what we’re comfortable with or alternatively, they’ll self-perform.
And today, we have seen the carriers self-perform in €“ for the most part, in places where we were not willing to do it. And I think that will continue. You’ll continue to see self-perform for the carriers. Again, I don’t think that’s indicative of the business. I think it’s more indicative of the way that we think about return thresholds and our desire to both grow the dividend, elongate the timeline of returns and be thoughtful about the risks that we underwrite. On the second question around the backlog and carrier CapEx contribution, the way the agreements are structured relates to the €“ pricing is related to the return based on the underlying cost to deploy nodes. So the CapEx will move, the CapEx contributions from the carriers will move in unison with the way that it’s €“ the cost of actually deploying the networks that we’re deploying in the locations that we’re deploying them.
So in a market where they are more expensive to deploy, the capital contribution is going to be higher. In places where it’s less expensive to deploy, those capital contributions will be less. I don’t think at this point beyond the guidance that we’ve given around CapEx for calendar year €˜23, we’re not going to provide guidance for €˜24 and €˜25. But as we give outlook for each individual year, we will give you a view of what’s the backlog, what do we think we’re going to turn on air and then break out for you what we think our total CapEx for the year is going to be and then what portion of that will be carrier CapEx, carrier contribution offsetting that play.
David Barden: And then, Jay, just €“ and maybe this is a question for Dan, but just to follow up real quick on how the mechanics work. So the CapEx comes in during the 24 to 36-month period, you recognize that contribution CapEx, but you don’t start amortizing that contribution until after the lease begins. And so there is a window between where you’ve got the money and then where you start amortizing it through the income statement. Is that right or wrong?
