Tony Skiadas: Yeah. And then just one additional point there. So, the longer-dated churn, Simon, is very strong, and we’re very pleased with the progress thus far. On your other question, on ACP, just maybe a few points to make here. The guidance assumes that the ACP funding remains intact. In the event the funding goes away, we have plans to address it and we’ll see what happens there. The majority of the exposure on ACP is in our prepaid business. We have about 1.2 million prepaid subs that benefit from the ACP program, and that’s less than 10% of our prepaid base. On the postpaid side, we have minimal exposure to ACP, both Fios and postpaid wireless. And the margin exposure from ACP is very, very small.
Hans Vestberg: And on the BEAD program, we will participate when that comes out in the market where we see we can compete and where we see a good return on investment. We have already won a couple in the early stages, but we expect that this will roll out over years to come. And — but again, we will see that we participate when it makes sense for us usually — or not usually, always with financial discipline.
Simon Flannery: Great. And just one follow-up. On the fiber build, is that again about 500,000 homes passed this year?
Tony Skiadas: Yeah, Simon, it will be a little bit over 400,000 next year.
Simon Flannery: Thanks so much.
Brady Connor: Yeah, thanks, Simon. Brad, we’re ready for the next question.
Operator: The next question comes from Phil Cusick of JPMorgan. Your line is open, sir.
Phil Cusick: Hi, thank you. I think you said you expect postpaid phone positive for the year. What’s the durability of consumer growth? Could that also be positive for 2024? And remind us the impact that price increases tend to have on churn over the last couple of years. And then second, maybe you could just dig into where your gross adds are coming from, the improvements as you’re doing better there? Churn has sort of been in-line, but gross add is doing a lot better. If you could dig into that? Is there any significant shift in where customers are coming from, maybe from the myPlan? Thank you.
Hans Vestberg: Sure. I can just start by saying, but I’m going to hand it over to Tony, I think you’re spot on. On myPlan, and I said it in my opening remarks, stellar performance so far on myPlan. But it’s not only that the plan is good, it’s both flexible, you have cost control and our customers get value of it. And I think that goes back to the what I talked about for years, disciplined approach, but also very segmented. And that’s what’s happening right now, and we can see that we allocate money to the right product, to the right customer in the right market. So, there’s a lot of that. But Tony will give you a little bit of rundown on the numbers.
Tony Skiadas: Sure. So, just, Phil, on the churn, I mean, obviously, we’ll see a little bit of an uptick from the pricing changes we made in both Consumer and in Business, and those changes were announced in the last few weeks. And then, as Hans mentioned, we really had good performance in Consumer. You saw the gross add number at 17% and 10% for the full year, and that’s despite being in a much lower upgrade environment as well. So, we feel really good. Like I said earlier, the Tier 1 markets were very strong and we see further opportunity as we build out C-Band. The churn profile is much better. The ARPA is much better. So, we’re very comfortable with what we’re seeing so far with C-Band and the performance.
Phil Cusick: And in terms of the durability of postpaid and growth there?
Tony Skiadas: Yeah. Look, we said we’re going to be postpaid phone positive in Consumer in 2024, and we’ll also continue to see strong momentum in Business as well. We did 562,000 net adds this year, and Kyle and the team did a great job, and we expect continued solid growth from the Business side as well.
Phil Cusick: That’s great. Thanks for everything, guys.
Brady Connor: Yeah, thanks, Phil. Brad, we’re ready for the next question.
Operator: The next question comes from Michael Rollins of Citi. Your line is open, sir.
Michael Rollins: Thanks. Good morning. Just one more on wireless pricing. Can you provide some additional context on how you’re seeing the competitive landscape evolve with respect to pricing, and how Verizon is trying to balance the volume versus price equation as you look out from the recent pricing actions that you’ve taken? And then second, can you provide an update on how much the cost-cutting program yielded in ’23, and how much you can capture it in ’24 relative to the previously articulated target? Thanks.
Hans Vestberg: Thanks, Mike. I think when it comes to our pricing and our promotions, I think we look more about we are the leader in the market. We look at the different segments we have to see that we have the right offerings for right customer with the right value. That’s the focus we have had for, I would say, the last two years, very much focused on our customer base and the consumers and the customers we can attract to Verizon. And so far, that disciplined approach we have. You saw the fourth quarter, for example, we invested a little bit more because we have really good momentum. So sometimes, we’re going to invest more, but it’s always going to be with return on investment in mind to see that we’re doing the right for all our stakeholders.
So that’s the focus we’ll have on the pricing we have both on broadband and on wireless. On the cost program, ’23 was a big year for us. You’re probably following all our press releases, but we did a lot in customer care. We did a lot with the managed services with outsourcing with HCL. We implemented some really large IT systems and application that’s going to be a fantastic platform. We continue to deploy our offshore centers and being even stronger using that as a platform on the basis that we created the Verizon Global Services, the 1st of January ’23. So, I’m really pleased with the platforms, and that means we’re on track for the savings we talked about going into ’24, it’s more about the same. Tony?
Tony Skiadas: Sure. So, just to add a couple of things here. So, on 2023, we delivered about $300 million to $400 million in savings. And as Hans mentioned, we expect the program to ramp in 2024 and the savings are contemplated in the guide. A portion will hit the bottom-line while also giving us the flexibility to invest in the business. And I think you saw that in the fourth quarter and the results speak for themselves. We’re not going to give specific cost targets, but what — in addition to what Hans mentioned, we have work going on in IT platform transformation, real estate and fleet optimization, and we’re also opening up a shared service center in Ireland. So, we feel really good about the cost actions that are driving the EBITDA improvements that you see in the guidance for this year.
