Crown Castle Inc. (NYSE:CCI) Q4 2022 Earnings Call Transcript

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And I think the nature of our agreement with them, we have the opportunity to continue to get an outsized share of their network deployment. So, I think in that respect, it has accomplished exactly what we had hoped. And as we said at the time, and I think this has played out, our visibility to that network with the combination of providing fiber as a part of their backbone as well as providing tower sites has deepened that relationship and deepened our understanding of how they are thinking about the deployment of the network and probably led to us being able to capture more opportunities than we would have had if we were towers only.

Nick Del Deo: Okay. That’s great. Thank you, Jay.

Operator: The next question is from Jonathan Atkin of RBC Capital Markets. Please go ahead.

Jonathan Atkin: Thanks. So, you mentioned half of your tower sites have been upgraded with mid-band. And I think it’s implicit in the answer to one of the earlier questions, but do you expect that to get to 100%, or is there an end state that’s maybe a little less than 100% in terms of portion of sites that have 5G mid-band?

Jay Brown: Hey. Good morning Jon. I don’t know that it will get all the way to exactly 100%, but we would expect, over time, it will get pretty close to about 100% of the network will be upgraded, yes.

Jonathan Atkin: And then did you see €“ on just the towers, did you give a split between colos versus amendments? And if not, can you tell us what that number was? And then maybe what you anticipate that mix to be, again, just in your tower portfolio towards end of this year?

Jay Brown: Yes. Consistent with my comments around the vast majority of the activity is on sites that they are already on. The vast majority of the total activity that we are seeing from the carriers is amendments to existing sites where they are adding additional equipment. And therefore, we are getting rent added to the leases that we already had. We are seeing some first-time installations on sites as a part of their desire to infill. But the vast majority of the activity that we are seeing would be from amendments.

Jonathan Atkin: So, no pivot from 3Q into 4Q in terms of that mix shift? I know it’s majority amendments, but no noticeable change?

Jay Brown: No, we didn’t €“ we haven’t seen any change from kind of middle of last year. And certainly, as we are sitting here today in early 2023, haven’t seen any change from our expectations when we laid them out in October of last year.

Jonathan Atkin: And then lastly, in the fiber business, a lot of €“ so non-mobile tenants, a lot of products that you listed around wavelengths, Ethernet, fiber, managed services. And just given the growth that you are seeing there and the mix of revenues that it represents, any way to give us a little bit of color as to what the different demand drivers that you are seeing, which products are maybe getting more traction on, say, services versus others?

Jay Brown: Yes. The biggest driver there is the increased traffic, overall data traffic that’s happening in the market. I mean our business and our focus for customers is mostly large enterprise, universities, hospitals. And in those markets, the primary driver of what drives our revenue growth is data traffic and the movement of €“ in essence, the movement of data among their facilities, locations, offices, etcetera. And that’s the biggest corollary.

Jonathan Atkin: Lastly, just any update on Edge? And it’s been a number of years since you announced the Vapor IO investments and any kind of updates on your thoughts as it pertains to the sorts of opportunities and traction, gains thus far?

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