And I think where you started is the idea that where do we find capital to invest, and those are a few areas to look at and model around that.
Charles Ergen: Yes. So the picture is we have scale in June of next year. That’s the scale. We’re a year behind where we’d like to be for scale but we’ll have scale next year, both the devices and the network. That network is about where Sprint was at the end. So now you have scale and your CapEx is primarily done. And you’re only going to get — you’re only going to improve from the 2/3 that John is talking about. So that gives you a feel for it.
Operator: Our next question comes from Kannan Venkateshwar with Barclays. Please go ahead.
Kannan Venkateshwar: Paul, maybe a couple for you. When we think about the S-4 projections that you provided with the EchoStar filing, it assumes sequentially an increase in losses — a further increase in losses in Q4 in Wireless and you pointed to some tailwinds in costs in Q4. So if you could just help us reconcile the Q4 trends. And then as we look at the same projections for next year, there’s a big acceleration in trends with respect to profitability. So if you could just help us understand the underlying assumptions in terms of volumes versus price and what you’re assuming to get to those numbers, that would be very helpful. Thanks.
Paul Orban: Well, overall, when you look at the forecast, there’s going to be some puts and takes and the timing may change, but we believe the forecast that we had in the S-4 is still accurate. We’ll continue to deploy in Q4 more towers and you’ll have more OpEx, which will be helping to drag down a little bit in the fourth quarter. And then as we grow, obviously, you’re going to have [indiscernible] and the costs that are related to growing the Boost Infinite and the Boost Mobile business in Q4 into Q1.
Kannan Venkateshwar: Got it. And then, Charlie, when you think about capital needs for next year and beyond, you obviously have the debt maturities and the EchoStar deal should help address some of it. But if you step back and think about maturities beyond that, there’s obviously a big step-up in capital required even as your CapEx needs also potentially go up in ’25 and beyond. So if you think about beyond ’24, how should we think about the capital plan? How much of it is internally funded? How much of it is externally funded? And if you could just help us understand what your partnership options are or update us on that, that would be very helpful. Thanks.
Charles Ergen: Yes. I mean, obviously, 2026 is a pretty big wall in terms of assuming you didn’t refinance anything. And obviously, a lot depends on where the markets are. So what we want to control is what we control. From an operations point of view, we’ve got to generate as much internal cash from our operations as we can. And the way I would say it is we have a narrow path but there is a path for us to achieve financial stability and make sure we meet our commitments. And so having been through this for a long time, we’ve had narrow paths before, and it’s a sharp focus for your management and a necessity sometimes the mother of invention. So we certainly look at 2026 as a challenge today. We expect that the market environment will be better in 2026 but there’s no guarantee of that, obviously.
If the market environment today was like it was the same in 2026, I think that would prove to be difficult for us based on our operations today. On the other hand, if your operations continue to improve and you show the market the trends and the financial trends based on having your own network and owner economics, and you continue the cash flow in your core businesses, then that’s an achievable place to get to. And so my crystal ball believes that we can do that. But I know it’s going to be a challenge for us and we have a team that’s going to be up to that.
Operator: Our next question comes from John Hodulik with UBS. Please go ahead.
John Hodulik: Maybe just a couple of follow-up to Walt’s question. First of all, Charlie, can you guys talk about any traction you’re seeing with the iPhone 15 promotion? And when you are winning customers on the Boost Infinite side, where are they coming from? And then just lastly, a clarification. What drives the uptake in compatible phones to two-thirds? Is it just the availability of new phones that work on your network? Or I’m just wondering why sort of June is sort of magic we’ve been getting to that 2two-thirds number? Thanks.
Mike Kelly: Well, this is Mike. Thanks for the question, John. Yes, we’re seeing some traction on the iPhone 15. No surprise. Customers are attracted to the $60 offer and to the iPhone upgrade every year offer. We’re still working through. As Charlie mentioned earlier, we’re a digitally-native selling direct process. So it’s new to us. We’re still working through some of the operational kinks, but we’re making progress there. So again, demand is coming from the other carriers. And certainly, we’re seeing some demand coming from the relationship that we have with Amazon and marketing it into the Amazon base.
John Swieringa: And then thanks, John, for the follow-up question on the devices. This is John Swieringa. So let me try to simplify the earlier response. I mean, essentially in 2024, we’ll have 100% support on Android in terms of every Android device that we distribute will be compatible with our network. On the Apple side, it’s a little bit more of a mixed bag. Newer models have our bands and can support 5G SA software with iOS 17 and above. And so really, it’s about getting to that point where we’ve got full Android support, partial Apple, and then obviously, there’s still a profitable BYOD business where we’ll bring existing devices on to our network. And in some cases, that may be on the MVNO. But that’s sort of how the forecasts roll forward, and it’s really been device by device, chipset by chipset approach for us to get to critical mass. I hope that helps.
Charles Ergen: And on the Apple side, just to make sure, I don’t misunderstand, the 15 is fully compatible but the 12 and the 13 and the 14, which we still sell, actually 11, right, are not compatible. So obviously, those can only go on, at this point, on MVNO, absent some software downgrades or so forth and so on. But 100% of new Apples are — it’s not 100% of our business with Apple.
Operator: Our next question comes from Jonathan Chaplin with New Street. Please go ahead.
Jonathan Chaplin: Two quick ones, if I may. First of all, so what looked like for the new capital going into ConneX, I’m wondering if there’s still an opportunity to combine Boost with ConneX and help accelerate the sort of the flywheel that Boost with new outside capital. And then I’m wondering, Charlie, if you can give us an update on where discussions might stand with TPG and AT&T on DBS now that you’ve got the EchoStar transaction spread away. I’m wondering if there’s a path to progress on the next big deal. Thank you.
Charles Ergen: Yes, I’ll take both of those. First on the TPG question, that we’re focused on, we’re still getting the EchoStar-DISH transaction done. I mean, obviously, we filed a lot of stuff but we got a ton of stuff in terms of combining the companies and the management teams and making sure that we don’t wait on synergies and get those and with the starting next week, that will be very helpful. So we just don’t have any plans for DIRECTV based on that. ConneX is not probably appropriate to comment on here. But what I would say is that I think within our capital structure, obviously, a retail wireless company that has 7.5 million subscribers and now has an online presence is probably a valuable company. We could argue whether we’ve managed it as well as we should.
