But yes, the combination of A-CAM and BEAD, we really think those are going to be two important opportunities to continuing to get higher, faster, better broadband, likely all through fiber out to the most rural areas of our serving territories. But there are going to be places where it, like LT said, probably doesn’t make sense to take fiber all the way out. And if there are opportunities for us to work with U.S. Cellular and partner in order to best serve those customers, we’re certainly already talking about that as well, and we’ll pursue that as an opportunity.
Simon Flannery: And you talked about accelerating the fiber build this year. I think Lumen had talked about a higher cost to pass going up to about $1,200. Have you got any color on what’s kind of developing there? There’s concerns about inflation, labor supply or that stuff, any color there would be great?
Michelle Brukwicki: Yes. So we are planning to keep scaling up and keep delivering more addresses in 2023. We’re shooting for 175,000 service addresses under the program this year compared to the $133,000 that we delivered in 2022. Each year, we keep developing a nice increase in address delivery. So yes, we are going to keep accelerating that program on our path to our $1.2 million by 2026. In terms of the actual cost of the build, that’s already all factored into our business cases. Over the last year, 18 months, we did start to see some of our contract RFP proposals come in with slightly higher costs. But we were really diligent in working with those vendors and trying to find opportunities where we can reduce some build costs in those markets.
And so when you factor everything into the business case, that’s why you’ll hear me talk a lot about does the business case still hang together, can we still achieve the low to mid double digit returns that we’re looking for. Even with all of those cost factors adjusted in that we’ve all seen over the last 12 to 18 months, we’re still getting those really attractive returns out of those business cases. And all of that is already factored into our guidance and our CapEx expectations.
Operator: Your next question comes from the line of Phil Cusick with JPMorgan.
Unidentified Analyst: It’s Jerome on for Phil. Congrats on the quarter. I was hoping to drill down into the solid low single digit to mid single digit ARPU growth we’ve seen on the postpaid business. Kind of what’s driving your ability to grow ARPU despite the heavy promotional environment and pausing price hikes, et cetera? And then as we look at 2023, how should investors think about ARPU growth moving forward?
Doug Chambers: So with respect to ARPU growth, one thing that drove it during the year was moving customers up the stack. We started the year with 32% of our handsets on our top two tier plans ended the year with 41% on top two tier plans. A lot of that was driven by strong efforts by our sales team, but also promotional requirements that we had tied to our new and existing offers. So that was really a tailwind for ARPU. We’re doing much better in device protection revenue, the profitability of that product. We’ve been migrating customers to a new provider where we earn a better margin as well as we slightly increased the penetration of that project. We also had some cost recoveries surcharges that went in at the beginning of 2022 that helped as well.
