That is the same requirement as part of the BEAD program. And those bills have to be done, it’s our understanding by the end of 2028. So that also the builds on the A-CAM program will align with the build time line that we’re expecting for the BEAD program. So that’s what we know right now. We will be working closely with the FCC to get our companies specific offers and obligation requirements, and this will all happen over the next couple of months. And then that will allow us to do a little bit more valuation and be able to talk more specifically about exactly what it means for us. But in general, this is a program that’s already existing. We’ve been part of it for many years. It’s a wonderful thing for TDS Telecom and for our customers and by keeping this program going and extending it.
We really think this is going to be the best way for us to get to work and start to serve those customers in the most rural parts of our markets with higher speeds as quickly as possible.
Operator: Next, we’ll go to Phil Cusick with JPMorgan.
Philip Cusick: Sorry, if I missed a little bit of the call, but I’m trying to catch up on the transcript. I wonder, LT, you’ve been at UScellular for 3 years. And can you talk about the success of the shifting pricing and promotion strategies in that time. Your in contract mix, as you said, is up nicely and churn is down, but it seems like you continue to struggle with gross adds and despite wireless growing better over the last few years than we’d expected. So can you just talk about sort of where we are in that go-to-market strategy and what the company is doing to try and push that. And as you look at the budget and plan for this year, where performance has sort of differed and the drivers of the guide down.
Laurent Therivel: Phil, good to hear your voice. We are — when we think about our pricing and promotional structures, you don’t do so with subscribers in a vacuum. And you don’t only look at how you’re doing from a subscriber perspective. We’ve talked from the very beginning that what we were trying to create both with our pricing and promotional structures, but also with our regionalization efforts where we can test and trial different constructs is we wanted to have a strategy to properly balanced subscriber results with financial results. And so when I look at that balance, given the context, the overarching context of the industry, intense competitive environment, enhance pricing pressures across the industry. And if I look at within that context, I’m quite pleased about the balance we’ve been able to strike.
The gross add performance is not where I want it to be. We’ve been fairly public about that, and it’s in every statement that we put out there, and I’ll continue to say it. I would like to be able to drive stronger levels of gross add performance. However, the level of investments that we feel like it would take at this point to really meaningfully bend the curve on gross adds is not a prudent investment that we think is worth doing. I would contrast that with churn. We made a substantive investment in churn last year with our existing same as new plants, getting folks back under contract. There’s a fair amount of money that we spent behind it. However, you see the benefits that we’re gaining this year and year-over-year churn improvement and so purely on a subscriber gross add perspective, still a lot of work to do.
In the balance between subscriber results and financial results, you’ll see from our guidance, we slightly expanded our operating cash flow guidance this year. We’re trying to strike that correct balance between subscriber results and financial results. And from that perspective, I’m pleased, and I think the team is executing [indiscernible]
Philip Cusick: And has gross adds been the driver of the slower revenue and the downgrade in the guide today?
Laurent Therivel: Yes. I mentioned on the call, Phil, it’s volumes and mostly gross add-driven on postpaid and to a lesser extent, prepaid.
Philip Cusick: Okay. If I can ask one more. Can you remind us of your ownership of the Verizon LA asset and how much cash that is brought in, in the last year?
Douglas Chambers: LA, first of all, our total distributions last year, 2022 full year were $145 million. That includes LA, along with 9 other partnership investments. We expect that to go up slightly this year. LA is about 40% of that total.
Philip Cusick: And what’s the — I assume that there’s essentially no tax basis on those investments?
Douglas Chambers: Well, it’s low. And by the way, LA’s distribution is going up this year as a result of significant capital expenditures in the fourth quarter of 2022. So we do expect that to go up. And yes, the tax basis is low.
Operator: There are no further questions at this time. I’ll now turn the call back over to Colleen Thompson for any additional or closing remarks.
Colleen Thompson: Okay. Thanks, everyone, for your time today. Have a great weekend.
Operator: This concludes today’s conference call. You may now disconnect.
