Hans Vestberg : Thanks, John. on the upgrade, as we’re seeing now for a couple of quarters, when we started our segmented approach on the consumer side, where we actually tried to meet our customers in different segments with the right offerings. That of course, have driven a lower upgrade rate. But as we are not doing a peanut butter spread sort of that everybody gets everything. So we’re really trying to see that we have the right offer for our customer and what is giving me confidence is that our gross adds just continued to grow for us. So we have the right offering in the market together with myPlan. Of course, fourth quarter is always a little bit higher on upgrades because that’s normally a seasonality. But in general, I see that our model is working and this is both helping our customers with the right offerings.
But not only that is helping us with the bottom-line and the cash flow generation that we’re very focused here at Verizon. And then on the C-band, we see the same things as we have discussed before. We see lower churn where we deploy C-band. We see better step ups in those regions. And then on top of it, we increased fixed wireless access. So there’s no difference on that. So I think we – same, same and that’s why we’re so excited by C-band continue to roll out and I have gotten hold of old C-band here, just a couple of weeks ago.
John Hodulik: Great. Thanks. Hans.
Brady Connor : Brad we are ready for the next question.
Operator: The next question comes from Brett Feldman of Goldman Sachs. Your line is open, sir.
Brett Feldman: Thanks, for taking the question. Coming back to service revenue growth is we’re looking ahead into next year and maybe digging a little bit into ARPU drivers, I know you don’t report postpaid, phone ARPU, but it’s clearly an important component of what drives your ARPA. And I was hoping you could give us some insight into how you’re thinking about those drivers next year? So for example, are you still – you still see opportunity to make further pricing adjustments in the base? Could you maybe give us some insight into what the mix is looking like? And are you continuing to see the highest tiered plans being among the most popular? And then, are there any headwinds that might be emerging in the ARPU dynamic we need to be taking account for? Thank you.
Hans Vestberg : So, let me start on the high level. I mean, first of all, we need to think about our total offering on wireless and we haven’t spoken so far much about the business side, but the business side again for the ninth quarter in a row had more than 125,000 phone net adds, actually 150 plus. So they are doing good in a market where our customers on that side, is really looking on the performance of the network and the high quality distribution we have. So I’m very pleased with that and I have – I would like to say it. On the consumer side, I think we have found a model with myPlan and how we go to market. All the changes that consumer group and Samper have done since earlier, this year with the plans to decentralization, sales incentives, is helping us to be in the right proposition.
Then we always look to order new value add that we can give to our customers to broaden the scope for us and for our customers like we did with the third tier on the network side on myPlan or that we took away the discount on the convergence within mobility and fixed wireless access in these quarters. We will continue to look at it, but it’s nothing that is the most important right now because I think we having offering that is really compelling to our customers.
Tony Skiadas : And then, Brett, on the – on your service revenue question, just some qualitative thoughts for you. On the plus side, I would say, look the pricing actions we took this year, obviously have a tailwind in the fourth quarter and carry over into next year. So we continue to see momentum there. Also, as I mentioned earlier, we do expect an improving volume profile in the consumer business. So that’s something that the team is very focused on. Fixed wireless access continues to scale. So, as I mentioned earlier, another 384,000 net adds, even as Hans said, and taking away the discount as well. So the momentum is strong there. And continued increase premium mix with myPlan. So myPlan is seeing roughly 70% premium mix and we’re very pleased with the progress there.
And we’re also seeing some of the headwinds from the promo amortization starting to ease a little bit, that’s starting to flatten out, which is good news. And also a function of all the discipline that we’ve had this year. And then offsetting that, as we’ve mentioned in the prepared remarks, prepaid continues to be a headwind the in the near term as we continue to work to improve the business and that’s still ongoing. So those are the puts and takes in terms of service revenue.
Brett Feldman: Thank you.
Brady Connor : Brad, we are ready for the next question.
Operator: The next question comes from Michael Rollins of Citi. Your line is open.
Michael Rollins: Thanks and good morning. I’m curious if you can unpack the ways in which Verizon will look to achieve its cost-cutting targets through 2025, as well, as how much of those benefits could come through in 2024 versus 2025? And then just separately on prepaid, just an update would be great on the integration of TracFone? And how Verizon is thinking about the opportunities and timing of potentially taking some of those prepaid customers and migrating them over to your postpaid base. Thanks.
Hans Vestberg : Thank you, Mike. On the cost target, we are definitely on track for delivering on the $2 million to $3 million that we talked about when we launched a new structure. The new structure started this year. The first of January. We see a lot of tractions on it and probably, as you follow us closely, you have seen that we’ve worked on the managed services side together with HL. We have done a big transaction on the customer care side. We are doing a lot of transaction on the IT side. We’re bringing more AI into the network and to the customer care. It’s a lot of things ongoing. So I have a high confidence that we are finding along the road there all the savings we need and the traction is very high in the company on the efficiency given that we have one organization right now, Russian Global Services supporting all others to see that we find the best measurements across the company.
And I can go back to prepaid and maybe Tony has some more comments on the cost side.
Tony Skiadas : Sure. Thanks. And Mike, just a couple of other additional points that Hans mentioned. So, we’re on track to deliver $2 billion to $3 billion as Hans said. $200 million to $300 million of that will come this year in 2023 in EBITDA and that was already contemplated in the guide. Hans mentioned a lot of the initiatives. The other item I would mention is we are being very disciplined in business wireline by deemphasizing low margin deals. So that’s something that the team is very, very focused on, as well. We’re not going to give cost targets for ‘24 at this time, but we feel good that we have a good foundation that are driving EBITDA improvements and you saw it in the quarter with both sequential and year-over-year improvements in EBITDA that’s going to set the foundation for improving EBITDA profile in 2024.
