But so far, we haven’t drawn any conclusions that that’s a scalable opportunity for us.
Simon Flannery: Thanks Mike.
Mike Sievert: You bet.
Jud Henry: All right. Next question please.
Operator: Our next question is from the line of — pardon me, Phil Cusick with JP Morgan. Please go ahead.
Phil Cusick: Two if I can. One, Peter can you talk about potential savings from the layoffs in August and will those hit the fourth quarter or should we think of that all next year? And then maybe one for Callie. Can you talk about the contribution of business to subscriber growth numbers and what’s the typical ARPU of your business phone lines? Thank you.
Mike Sievert: Okay, let’s start with Callie on business. And then we’ll come back to another crack at OpEx. So what’s going on in business, Cellie?
Callie Field: Well, thanks Phil for the question. And I’ll tell you, as a result of our network leadership and the solutions that are built for today’s unique challenges of a CIO, we continue to deliver highly profitable growth. One of our highest postpaid phone net ads and lowest phone churn quarters in history and delivered results once again that outperformed our benchmark competitor. This quarter also we delivered our highest enterprise postpaid net ads ever. So we’re seeing growth in all segments, in small business and in enterprise. As for the macro environment, while there’s probably a portion that are price sensitive. We know from years of experience that price alone doesn’t determine a win with enterprise and government who are uncompromising when it comes to network performance and complete solutions.
Solutions like we recently deployed at Boston Children’s Hospital, which is the healthcare industry’s first ever hybrid 5G network solution for over 18 buildings which is supporting critical applications not only reliable connectivity, but also with security and MDM solutions for doctors to provide telehealth services to their patients. So let me pause there and Mike, see if there’s anything else.
Mike Sievert: Yeah, and specifically on ARPU, we said in our prepared remarks, it’s somewhat lower than consumer, but highly accretive from a CLV and value creation standpoint. So these are great customers. We are finding, as Callie said, that enterprises are not picking us because we’re the lowest price, although we compete ambitiously on price. They’re picking us because of the solutions that Callie’s team has brought to the market. And that’s very helpful from a value creation standpoint for us. So we continually look at the customer lifetime value, net of all the costs to serve these customers, and find that enterprise customers are highly attractive, and therefore contributing to our financial results. And that’s why Peter always warns you, ARPU is a mix-driven metric. And we’re not solving for it, we’re solving for value creation and return on our effort and investment and enterprise is a great place to put our effort and investment.
Peter Osvaldik: And then Phil with regards to the [indiscernible] crack at OpEx. So again, the actions that we took really ways for us to create tailwind and further fuel the growth of the company. And so I’m not giving specific line item, OpEx guides, all of those actions were then contemplated in the updated guide for 2023 that we gave, and again, kind of the teaser we just gave about 2024 and core EBITDA there.
Phil Cusick: Thanks, guys.
Peter Osvaldik: You bet.
Jud Henry: All right. Next question.
Operator: Our next question is from the line of Craig Moffett with MoffettNathanson. Please go ahead.
Craig Moffett: Hi, thank you. You guys recently took a price increase for legacy plans and we’ve heard a bit about — it certainly drew some unwelcome press, and we’ve heard a little bit about pulling back from that a little bit. Can you just talk about the kind of response you’ve had and how you think about industry pricing going forward and the ability to walk some of your ARPUs higher?
Mike Sievert: Yes, of course, Craig. And by the way, that was sort of not very accurately reported. So let me just kind of clear it up. As you guys know, because you follow us so closely, more so than the press. We tend to do tests and pilots of things quite a bit to try to figure out what’s the right answer. In this case, we had a test cell to try to understand customer interest in and acceptance of migrating off old legacy rate plans to something that’s higher value for them and for us. And we had planned to test and did some training around that. And then it leaked. And it leaked as if it was a broad national thing. And it kind of wasn’t. Now, I don’t know that we still have to do that test cell, because to your point, we did get plenty of feedback, thanks to the erroneous context of the leak.
And I think we’ve learned that particular test cell isn’t something that our customers are going to love. Now, exactly none have rolled out. So even to your question that we recently rolled out, we didn’t. We had planned it — we had planned it as a test cell, and then we aren’t doing it. Because I think we got plenty of feedback. But maybe Mike, you can talk about our philosophy on pricing, things we’re interested in, what we’re hearing from customers, and also what we’re seeing with Go 5G Plus and Next.
Michael Katz: Yes. Maybe I can start with that. Go 5G Plus and Next have been, like we’ve talked about the last couple cycles, incredible successes for us. And it really starts with the fact that these are hands down the best value in this industry. If you look at all the features that come with those plans, there’s hundreds of dollars of value for customers on a monthly basis with the streaming benefits and the in-flight Wi-Fi and roaming benefits are on those plans. But in a time when the market and customers are so focused on device value, there is not a plan in the industry that gives customers more flexibility and more value on device than the Go 5G plans do. And you really saw that in this last iPhone cycle where we really differentiated with the flexibility on upgrade.
When the rest of the market is at three years, we had offers for customers that allowed them to upgrade as frequently as one year. Those plans really create the platform for our core pricing strategy, which is, how can we give customers more and more value and allow them to move up our price card because they feel like they’re getting something additional from us. So that is the foundation of our core pricing value. As Mike said, we conduct tests and pilots all the time, all the time, and we will continue to do so because we still think there’s opportunities both to deliver more value for customers in a bunch of different ways, but also look for opportunities to simplify our overall portfolio. So I would expect to see more of those kinds of tests from us, because it’s been a consistent practice throughout the entire un-carrier journey so that we get it right for the experience for our customers.
Mike Sievert: Yes. Although that particular test cell doesn’t need to be executed now we remain very interested in rationalizing our legacy rate plans for IT purposes, simplification purposes, revenue realization purposes, customer satisfaction and retention purposes. So we’re going to stay at it, but that particular idea will probably do something different. Good, okay.
Craig Moffett: Can you just comment on just the industry pricing environment overall and what your sense is about the competitive intensity on the rate plan side?
