Jessi Betjemann: Yes, as we’ve noted with our net operating loss balance that we have, we don’t expect to pay meaningful cash taxes until the end of our planning period, but also with regards to our CapEx. So after this year, we’re really going to see a decline in that CapEx and that’s why you’re going to have that high turnover to free cash flow in 2025 really have that step function and then going forward.
Barry Rowan: And we also have one project hitting OpEx right now within than CapEx.
Operator: Our next question comes from the line of of .
Unidentified Analyst: I just wanted to follow-up on the long term revenue guidance. I was just wondering if you could disaggregate that between service and equipment for us, and to better understand how those two elements are playing into it? And then I just had a couple of follow-ups on the back of that.
Barry Rowan: In terms of revenue mix, are those service revenue. The equipment as a means to service revenue, that percentage in out years I don’t have the figures
Jessi Betjemann: We haven’t provided that. It’s mainly being driven — you’re going to have that stronger growth in service revenue
Unidentified Analyst: So service revenue will be about 17%?
Jessi Betjemann: Yes, it’s going to probably be more.
Unidentified Analyst: And then when — I was just wondering if you could just on the penetration rate that you guys see. Can you maybe unpack that in terms of what is the penetration rate at the sort of the large cabin aircraft, and how does that change as you get down into the small jets? And what do you think the realistic targets are for those different aircraft sizes over time? And then Jessi, just one last one for you, on the $30 million in strategic and operational spend this year. Can you just clarify, if we look at that bucket as a whole, what was it in ’22? And then as we look at ’24, what did it look like in 24? I know you talked about the GBB spend for ’24. But just the other elements as well as if we could just get an apples-to-apples on that $30 million bucket?
Barry Rowan: So I’ll start with the segments and then Jessi can mention the financial question. About half the heavy jets in the US market have in flight connectivity, today about half the medium sized jets down in the mid 20s on the light jet and it’s very small on the turboprops. So we see frankly plenty of room to grow in all those jet sized segments, if you will. And globally, it’s even more dramatic. I think 95% roughly in the market doesn’t have connectivity today. There are a couple of thousand heavy jets on which, I don’t know, either 900 I think have connectivity roughly. The rest of the market, frankly doesn’t even have an IFC product that’s available to them in terms of broadband IFC. So medium size jet run down overseas have nothing in this space in open territory.
Unidentified Analyst: And large jets are what in the US? Large jets, did you say penetration rate for this?
Barry Rowan: Yes, I did. I said heavy jets about 50%.
Jessi Betjemann: And then as far as the $30 million spending, the — for 5G, we spent about $2 million in OpEx this year and GBB $4 million. So the 5G as mentioned is going to increase — will be $9 million and GBB is around $14 million this year. And then for next year, the GBB is going to be the bunch of the spend, around $30 million, $35 million to which kind of the aggregate of $50 million in total. And then in terms of the other operational initiatives, it’s probably going to be somewhere in the range of $5 million to $10 million next year.
