Mike Sievert: Okay. And Mike, over to you on a little bit more color on high-speed Internet churn.
Michael Katz: Yeah. I mean I think building on what you’re saying, Mike, what — we have the youngest base of broadband customers in America. And like I think we said in a couple of calls, the churn curves that we see for customers like in our mobile business tends to be higher in the earlier tenure months and then reduces as customers achieve greater tenure lengths with us. And we’re seeing the exact same thing in our broadband business. And customers that have been with us for some months, their churn has decreased to the point that was right where we expected it. So it’s looking right on where our plan was, and the behavior has been just right in line with what we expected.
Mike Sievert: Okay. Terrific. And maybe, Jud, tell us when it’s time to go to Twitter. So we’re not ignoring the people coming in on Twitter because we always do some of that as well. And – but while you’re thinking about it, we’ll go operator to one more online.
Operator: That will come from the line of John Hodulik with UBS. Your line is open.
John Hodulik: Great. Thanks, guys. Two questions, if I could. First, on margins. Obviously, a lot of progress there at 300 basis points, but you guys still trail AT&T and Verizon by about 500 basis points. And do you see that closing over time or is it really just a bunch sort of lower ARPU and in fact or sub growth? That’s number one. And number two, Mike, I think you said that your porting versus cable has improved. And I don’t think you’ve called that out before. But maybe just some commentary about what you’re seeing in terms of competition in wireless and cable. I mean, they’re talking about sort of more and more bundled offerings. And I guess Comcast was sort of flattish on a year-over-year basis, but just what the posture is there and what’s driving that improvement in porting from cable? Thanks.
Mike Sievert: Okay. I’ll take that one, but Peter, we’ll start with you.
Peter Osvaldik: Yeah. Certainly, on the margin question, it’s a lot more than an ARPU differential. It’s really some structural differences that we always call out. For example, the whole leased versus own the backhaul strategy. The other thing that’ll always note is that with this significant higher switching that we see and the net add production that we’re giving, obviously, we have more S in SG&A than the competition does. We have a very dense network built out. So there’s fundamental some structural differences that also mean there’s a CapEx OpEx differential and when you compare AT&T and Verizon and us. And that’s why it’s always important to fundamentally look at conversion of service revenue into free cash flow. Free cash flow is the value generation engine that allows you to further invest, return capital to shareholders or do all sorts of other things to create value.
And that is the measure by which we’re really comparing ourselves to the competition to get rid of all the structural noise. And on that regard, you heard what we announced today already there from a year-to-date basis in terms of beating them on the conversion ratio when next year anticipated to expand that ratio further. So that’s how I think about margins.
Mike Sievert: It’s interesting that when you listen to Peter that and you hear that even with our superior growth and our lower prices, both of which hit margins, we have the superior cash production per service revenue dollar in the industry year-to-date and that’s rapidly expanding. 75% year-over-year guide, this year, you’re on our way to higher cash flows next year. And so it really shows you the power of this model based on this team’s ability to execute, but also based on the balance sheet, the incredible assets that we control, the track record of execution, the head start and many other benefits. Okay. Great. The second one was — second one was cable. So John, let me come back to that. Yeah. We did make a very light comment on it, but it was light that we had been seeing improvements in our port ratios with cable last quarter because we wanted to provide some commentary because cable and Q4 started to see some pretty big net add trajectory changes.
