Telephone & Data Systems Inc. (NYSE:TDS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 07, 2020 • 10:00 am ET

Previous

Telephone & Data Systems Inc. (NYSE:TDS) Q2 2020 Earnings Conference Call - Final Transcript

Share
Close

Loading Event

Loading Transcript

Q & A
Operator
Operator

[Operator Instructions] And we have a question from Ric Prentiss.

Analyst
Ric Prentiss

Yes, good morning. Hope you, employees and families are doing well, as your business has during COVID-19. First, congrats, Ken. Been great working with you. I think I did 84 of those earnings calls with you, and welcome, LT, to the public universe. First question I have, I want to look at on the wireless side. On the keep Americans connected side, so do I understand it right that at June 30, 39,000 subscribers that are on the numbers that are in Keep America Connected? And how do you think that plays out through the quarter as far as what you think you'll be able to convert those to current pay or at least with pay plans?

Executive
Douglas W. Chambers

Yes. Ric, so far this is Doug Chambers. So far, it's going quite well towards really, as of last week, we had close to 80% of those customers were either current or they were on payment plans. Those payment plans range from two to 12 months. So that will play out over time. But so far, we're very pleased with our ability to keep those customers from canceling or suspending.

Analyst
Ric Prentiss

Great. And I think one of the things that surprised me in the quarter roaming inbound roaming revenues came in better than we thought. We had been concerned with stay-at-home orders and people not traveling, it might fall off more. Could some of that also be that people are working from home, and that's kind of where your coverage is in suburban rural America? How should we think about trends as we look into the second half of the year on inbound roaming?

Executive
Douglas W. Chambers

Yes. I think you have a number of things that we're first of all, roaming inbound roaming usage, both sequentially and year-over-year was up, right? And we probably would have been up even more if not for COVID-19. So certainly, as we go into the third quarter, we have seasonality. We expect increases there and just general increases as customers consume more data. That's tempered a little bit with COVID-19. So I would say we'll continue to see increases in usage. But remember, that's offset with lower rates. So that's what we're looking at it. And it's a lot about predictability, obviously, with the pandemic moving.

Analyst
Ric Prentiss

Okay. And then can you talk a little bit about the RDOF? I know it's an FCC auction, but it doesn't involve spectrum. Any thoughts on what the prospects are for RDOF or what it might mean for the landline side of the business?

Executive
Laurent C. Therivel

Ric, it's LT. Unfortunately, we can't address the questions about the RDOF because we're in a quiet period for that as well. So it's just like spectrum.

Analyst
Ric Prentiss

Okay. And was there a deposit made for the RDOF? Or it's really just you received funds, so the no deposit, you're just in a quiet period?

Executive
Laurent C. Therivel

Just a quiet period.

Analyst
Ric Prentiss

Okay. I figured that might be the case. And last one for me.