Chris Stansbury: Yeah. So really on the Public Sector, Frank, that’s the longest kind of sale to install interval of anything we sell. They’re big complex deals. Obviously, we’re working with government agencies, and they’ve got to go through their processes and that takes time. So you can have a 12 to an 18 month lag, as I mentioned, until that starts to get recognized in revenue. As it relates to the cash flows around that, it will increase as time goes on, because obviously the pace of the installs increase, but —
Frank Louthan: It’s a book-to-bill difference is what you’re talking about, not a cash recognition difference.
Chris Stansbury: Exactly. And they’re just massive contracts.
Frank Louthan: Yeah, okay.
Chris Stansbury: So, yeah. But I’ll turn it back to Kate for the first part of your question.
Kate Johnson: Sure. On page six, just for everybody’s edification here, it’s the Lumen digital platform, and we have the portfolio outlined with a totally digital customer experience wrapped around two important things. The first is our network, our core network services, because none of these digital services are relevant without total integration into the network, customers are demanding left to right, top to bottom integration, quick, secure, effortless. It needs to be exactly that in order to be relevant in the digital economy. And I think you can look to other companies that have some of these digital services and they don’t have the fiber network and they just can’t get the economics and they can’t get the customer service right.
So we’re kind of excited about it. There are four core capabilities that we have right now for Lumen digital. We’re just getting started, as I said. The ones that we have here represent a total available market of around $40 billion, but I think that’s actually understating it, because we have a couple of really interesting opportunities emerging that we’ll talk about as we get a little bit closer to shaping them. Think of it this way, NaaS is cloudifying telco. It’s digital everything, any port, any service, anytime, anywhere. ExaSwitch is the Center of Connectivity. Fast pass into the cloud, any cloud, and across cloud, the edge is becoming more and more germane, especially with a totally digital network and high-capacity switching, because users are everywhere.
And the expectation is that I’m going to process all of that data that’s generated at the speed of thought, and so proximity really matters. And then the last thing is security, and we have huge muscle here that’s totally under commercialized. So we’re excited about the future. And right now, we’re just kind of calling it a very big opportunity for net new profit pools, which is going to really help our growth curve.
Frank Louthan: All right. Great. Thank you.
Mike McCormack: Thanks, Frank. I think we have time for just one more question, Aaron.
Operator: Perfect. We have one final question here for today that is from the line of Jonathan Chaplin with New Street. Your line is live.
Jonathan Chaplin: Thanks. Thanks for squeezing me in, guys. Actually, two very quick ones. So, Chris, given that it may make sense at some point to separate mass markets out, could you give us a sense for the EBITDA that you’re generating in that business today? And then maybe a more conceptual question for you guys, as you sort of run through the trends in the business, which seem to be improving in a lot of areas, and it seems like you’re taking share in the core segments that you’re focused on and you’re struggling against the sort of industry backdrop, that’s just really tough. It strikes me that the business segment, in aggregate is just fragmented, and that’s part of the problem. And I’m wondering if there’s a consolidation opportunity there and whether you’d be a consolidator or whether a big consolidation transaction would just give you exposure to revenue streams that you’re looking to move away from? Thank you.
Kate Johnson: Yeah. So I’ll take the second part of the question. It’s an interesting one, for sure. And I think you should think of us as seeing huge opportunity in the business segment by providing digital services that are integrated into the network and getting smarter and smarter about how we can take advantage of these really complex environments, hybrid cloud, multi-cloud, GenAI, et cetera. We have not only the right team, as I’ve talked about, we’ve got a world-class network, which I’ve talked about, and we’ve already got a head start with a lot of intellectual property protected by patents that sort of uniquely positions us to take advantage of this. That’s where our focus is. We’re maniacally focused on delivering value to customers and obsessing about their needs, because that’s how we grow as fast as possible.
If there are opportunities to integrate, you know, vertically or horizontally, as time goes on, we will strategically look at every single one of those, as is our fiduciary responsibility, and as they make sense, we’ll go after them.
Jonathan Chaplin: All right.
Chris Stansbury: Okay. And on that, on the EBITDA, you know, we don’t guide to that. It is in our filings. So I think that that’s where I would point you to in terms of the splits between mass markets and enterprise. But as it relates to, you know, a potential split of the businesses, what I really want to emphasize is, we’re not looking to fire sale any assets. We’re investing in good assets to make them great. And that’s our focus first and foremost, because that’s how we see the path to maximizing value as we go forward. So definitely on the radar screen, but we’ve got a really dedicated group of people who are very focused on the Quantum Fiber build-out and the great customer experience that it brings, and we’re going to continue on that path.
Jonathan Chaplin: Great to hear. Thanks, guys.
Chris Stansbury: Thanks, Jonathan.
Kate Johnson: Thank you.
Mike McCormack: Aaron, with that, we’re going to end the call.
Operator: Thank you. Ladies and gentlemen, this will conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line. Have a great day, everyone. We’ll see you next time.
