Douglas Chambers: Yeah. Well, Sergey, first of all, you see the progress we’ve made on that. And when you look at our 2022 margin compared to our 2023 margin went from 25% to 27%, as we talked about in our remarks, the program is working. And just to emphasize, we have this program organized across our business. We have 12 campuses, we have accountability from all of our leaders, and everybody is delivering on this program. So it’s been really successful and we’ll continue to go across the whole business for savings. We still have opportunities in really all of our areas. But as far as where most of the dollars are, it sort of follows our P&L, right? So we have a lot of dollars, of course, in engineering OpEx that’ll continue to provide significant savings as will market in IT. So, we really are proud of what we’ve done so far. There’s more to do, and it’s going to be across the business.
Laurent Therivel: Sergey, I’ll just chime in. Thank you for directing the cost question to the CFO, but the CEO occasionally has something to do with it, too. So I won’t dump it all on Doug. One thing that we’ve seen a lot of — we’ve seen a lot of success is in our efforts around automation, in our efforts around transparency and flexibility for our customers. And so the example I’ll give there is the upgraded bill that we provided to our customers. So we’ve both — we’ve rolled out a new bill format. The first change that we made was almost a year ago, where we changed our approach to prorations. The second thing that we’ve done is we’ve recently launched an entirely new format for our customers, providing them a lot of transparency, what they can expect, how the bill breaks down, what they can expect the following months.
It’s all automated. That has significantly driven down cost of care. It’s significantly reduced what I would call service-driven visits to our stores. We still love to see our customers in our stores, so those don’t bother me. But it helps if a customer is walking in the store with an intent to buy rather than with a billing question. And so simple moves like that, moves that are focused on transparency, moves that are focused on flexibility, they’re upfront investments that we make, but they also bring down costs. But they bring down costs without any kind of a negative experience on the customer. In fact, it’s a positive experience on the customer. And you can probably expect to see more of those automation in digital investments from us in this year and beyond as well.
Sergey Dluzhevskiy: Got it. And my last question is for Michelle. So you’ve made significant investments, obviously, in expanding your fiber footprint, and you still continue with your fiber build. I guess, given where you are right now in terms of passings, how do you feel about conversion of your passings into paying fiber customers? And also maybe if you could provide more color as far as what has been working lately for you in terms of conversion of passings into paying customers and what still needs to be improved in your opinion in 2024?
Michelle Brukwicki: Hi, Sergey. Thanks for the question. So, yes, we have had a lot of success in continuing to grow our footprint and getting our build really progressing in 2023, we had our biggest year yet. And what we’re seeing in terms of customer sales and conversions into our service addresses, actually becoming paying service addresses is meeting and exceeding what we had expected to see. And this is happening generally across all of the markets that we’ve been launching. So in our broadband penetration, we do have a chart in one of our slides that shows you how we expect that broadband penetration to ramp over the first few years after addresses get launched. In year one, we expect it to be about 25% to 30%. So of the addresses that we launch, about 25% or 30% of those addresses turn into paying customers.
And that’s what we’re seeing. And then slowly over the next few years, that continues to build until you get to about a steady state of what we expect about 40% broadband penetration in those markets. So a few of our markets have been launched and around for long enough to be able to get to steady state. And in all of those early markets we are over the 40% broadband penetration that we had been looking for. So we’re really pleased with how the builds have been going and then also how the sales and marketing and customer conversion processes have been going.
Sergey Dluzhevskiy: Great. Thank you.
Operator: We have no further questions. I’ll turn the call back over to Colleen Thompson for closing remarks.
Colleen Thompson: Okay. Thanks, everyone, for your time today. Please reach out to IR with any additional questions. And have a great weekend.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
