TDS 2026年第三季度业绩电话会：光纤建设创纪录，电信业务指引下调

TDS公布2026年第三季度光纤建设和新增客户数量创下历史新高，但传统业务收入下滑和运营成本上升继续对TDS Telecom的盈利能力构成压力。该公司下调了2026年电信业务收入和调整后EBITDA指引，同时将资本支出指引上调至约7.5亿美元。

核心要点

• TDS Telecom新增约76,000个可销售光纤服务地址，同比增长82%，创下公司历史上第三季度最高交付纪录。
• 住宅光纤净增用户达到创纪录的17,000户，同比增长约50%。光纤业务收入增长14%，即1200万美元。
• TDS Telecom将2026年营收指引下调至9.90亿至10.1亿美元，并将调整后EBITDA指引下调至2.90亿至3.10亿美元。
• 电信业务资本支出指引较此前中值增加1亿美元，达到约7.5亿美元，部分反映了提前用于2027年工程建设的支出。
• Array Digital Infrastructure维持其2026年业绩预期，包括营收2.05亿至2.15亿美元，调整后EBITDA为2.20亿至2.35亿美元。
• TDS此前获得的5.2亿美元股票回购授权已基本用尽。公司董事会批准了一项新的、无固定期限的2.5亿美元股票回购授权。

关键财务数据

业务与经营表现

截至本季度末，TDS Telecom拥有超过200万个服务地址，其中63%由光纤覆盖。计入同轴电缆后，其覆盖网络中有82%可实现千兆网速。该公司目前拥有超过120万个光纤服务地址。

本季度光纤建设覆盖约76,000个地址，2026年前九个月累计覆盖约181,000个。TDS Telecom预计全年将交付250,000至300,000个新增光纤服务地址。

客户转化率亦有所改善。住宅光纤净增用户约17,000户，光纤用户流失率同比改善20个基点。管理层表示，新拓展市场在第12个月的平均渗透率仍保持在约25%，长期目标为40%。A-CAM市场的目标渗透率仍为65%至75%。

TDS Telecom已着手将另外30,000个同轴电缆地址改建为光纤。公司还在扩大上门直销团队规模、多住宅单元（MDU）覆盖范围，并加大成本更低的线上渠道获客力度。

经DISH相关调整并剔除T-Mobile临时站点收入后，Array的现金站点租赁收入同比增长20%。在进一步剔除T-Mobile主租赁协议的影响后，现金站点租赁收入增长7%。

Array调整了对T-Mobile整合后可能失去租户的铁塔数量预期，修正为1,200至1,600座。该公司正积极削减地面租赁成本、加快租赁买断步伐，并排查不具备经济效益的站点以进行潜在退役处置。

Array还获得了出售部分600 MHz和700 MHz频谱牌照的监管批准。待美国联邦通信委员会（FCC）最终批准并满足惯常成交条件后，管理层预计该交易将在年底前完成。该公司将继续推进其余频谱资产的变现，主要为C频段资产。

管理层指引

管理层表示，原预计光纤业务收入将在2026年下半年抵消传统业务的下滑，但公司目前仍在努力迎来这一拐点。营收预期下调以及客户支持成本增加导致了调整后EBITDA预期的降低。

电信业务资本支出指引增加的金额中，近一半为提前支出的未来周期款项，预计将用于支持2027年的地址交付。其余部分主要反映了A-CAM建设成本的上升，以及新拓展市场向成本更高的直埋式铺设方式转变。

TDS Telecom继续以到2028年底实现1亿美元年化转型效益为目标。管理层预计，光纤业务收入提速以及降本举措将支持未来EBITDA的复苏。

风险与关注重点

• 铜线和有线业务收入的下滑依然拖累TDS Telecom的整体营收与盈利能力。
• 现金支出增加的原因包括新拓展市场的支持成本、燃油与劳动力通胀，以及420万美元的战略备选方案相关成本（主要涉及裁员费用）。
• 许可审批延迟、直埋式建设占比提高以及光纤铺设里程增加正在推高资本需求。
• Array预计，随着整合相关站点的终止，来自T-Mobile的临时站点收入将会下降。
• 短期内Array旗下可能有相当数量的铁塔处于无租户状态，从而带来降低地面租赁成本或退役处置不经济站点的压力。
• 在双方未能就估值和对价形式达成一致后，TDS撤回了对Array少数股权的全股票收购要约。

分析师问答亮点

管理层表示，得益于铜线市场中光纤部署的加速以及创纪录的建设能力，TDS Telecom的营收拐点“指日可待”而非遥遥无期。预计EBITDA的复苏将取决于营收改善以及公司转型节支举措的落实情况。

在竞争格局方面，管理层表示，在TDS已部署光纤的区域，卫星宽带并未产生实质性影响。公司预计，随着家庭数据消费量的增加以及多千兆网速能力的普及，光纤需求和户均收入将长期获得支撑。

Array表示，此前旗下约有330个DISH站点已不再产生租金收入。管理层认为，地面无线网络新入局者可能会对铁塔租赁需求构成潜在利好，同时认为手机直连卫星服务是对地面移动网络的补充。

关于C频段频谱，Array表示仍认为该资产对广泛的潜在买家具有吸引力，但未提供有关变现时机或结构的进一步最新消息。

业绩电话会完整纪要

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完整财报电话会议逐字稿

管理层陈述

Operator

Ladies and gentlemen, thank you for joining us. And welcome to the TDS and Array Third Quarter 2026 Operating Results Conference Call. [Operator Instructions] I will now hand the conference over to John Toomey. Treasurer, Vice President and Head of Corporate Relations. Please go ahead.

John Toomey

Good morning, and thank you for joining us. The presentation we prepared to accompany our comments this morning can be found on the Investor Relations sections of the TDS and Array websites. With me today and offering prepared comments are: on behalf of TDS, Walter Carlson, President and CEO; Vicki Villacrez, Executive Vice President and Chief Financial Officer. On behalf of TDS Telecom, Ken Dixon, President and CEO of TDS Telecom; Kris Bothfeld, Vice President of Financial Analysis and Strategic Planning of TDS. On behalf of Array Digital Infrastructure, Anthony Carlson, President and CEO of Array.

This call is being simultaneously webcast on the TDS and Array Investor Relations website. Please see the websites for the slides referenced on this call, including non-GAAP reconciliations. TDS and Array filed their SEC Forms 8-K, including the press releases earlier this morning.

As shown on Slide 2, the information set forth in the presentation and discussed during this call contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Please review the safe harbor paragraphs in our press releases and the full description of risk factors included in our SEC filings. I will now turn the call over to TDS President and CEO, Walter Carlson. Walter?

Walter C.D. Carlson

Thanks, John, and good morning, everyone. TDS made progress during the third quarter on our mission to transform the organization. Over the past several years, we have taken many strategic actions that position us well both for today and the future. Those include exiting the wireless business, monetizing spectrum at attractive values, retaining tower assets that can benefit from future demand, investing in fiber without the burden of high leverage in a period of rising interest rates, and repurchasing shares at prices we believe are attractive.

Today, I am pleased to share TDS and arrayed Digital Infrastructure's third quarter results, which reflect the progress we are making. TDS Telecom delivered record construction activity and strong fiber customer growth but has more work to do to offset pressures on profitability.

Array delivered strong revenue growth as it continues to optimize the portfolio. Across both businesses, we remain confident in our strategy and the investments we are making to create long-term value. Turning to Slide 3 and our 2026 enterprise priorities. Our objectives remain clear: grow and strengthen our fiber business, maximize the value of our tower portfolio. maintain disciplined capital allocation and continue transforming our business for the future.

As Ken Dixon and Chris Barfield will explain TDS Telecom continues to expand its fiber footprint while increasing its focus on converting those addresses to customers. As Anthony Carlson will describe Array is advancing its strategic priorities through increased tower colocations and continued efforts to monetize its C-band spectrum.

I do want to briefly comment on TDS' withdrawal of the previously announced offer to acquire the minority interest of Array in an all-stock transaction. As we noted in our September 1 press release, we continue to believe there could be strategic benefits to such a combination.

However, after extensive review on both sides, the 2 parties were unable to reach agreement on value and form of consideration. With that process behind us, TDS continues to be laser-focused on supporting both array and TDS Telecom as they advance their respective strategic objectives and build shareholder value.

I continue to be encouraged by the progress being made in both business units and by the work underway to strengthen our culture during this period of transformation. I would like to personally thank every associate across the enterprise for their continued commitment and contributions. I will now turn the call over to Vicki.

Vicki Villacrez

Thank you, Walter, and good morning, everyone. As Walter highlighted, our enterprise priorities are centered on creating long-term value, and our capital allocation is aligned to support them. First is fiber. TDS Telecom continues to advance its long-term goal of reaching 2.1 million marketable fiber service addresses, adding approximately 76,000 in the third quarter. .

TDS Telecom now has a footprint of over 2 million addresses, an increase of 8% over the prior year and 63% of those addresses are served with fiber today. Delivering on this level of continued expansion requires intentional oversubscription, which drives pull-forward capital but is necessary to fill our pipeline to mitigate for temporary construction delays such as permitting or other factors.

As we've noted previously, being first to market with fiber is a critical part of our investment thesis. It supports expected returns in the low to mid-teens and our fiber investments. We continue to see attractive opportunities to be first to fiber, and our strong capital position provides us the flexibility to pursue these investments.

We remain confident in our long-term growth and value they can create. Second, I am pleased to share that following the termination of TDS' offer to acquire Array we were in the market and have now virtually exhausted all of our prior share repurchase authorization or $520 million.

Given recent share prices and our view of the company's intrinsic value, we view this investment as an excellent use of available capital. Further, in an effort to afford us future flexibility the TDS Board has approved an additional $250 million share repurchase authorization. This is an open authorization that is not time bound and allows us to remain opportunistic as market and business conditions evolve.

Finally, in the quarter, we completed the acquisition of Granite State Communications a tuck-in market in New Hampshire that brings nearly 13,000 fully fibered service addresses to the portfolio, strengthening our Northeast fiber cluster. Thank you. And now I will turn the call over to Ken Dickson to discuss TDS fiber business.

Kenneth Dixon

Thank you, Vicki, and good morning, everyone. At TDS Telecom, we are transforming our business to be fiber-centric. Slide 6 shows our progress at the end of the third quarter. We now have over 2 million service addresses and 63% of those are served by fiber. Another 19% are served by coax, meaning that 82% of our addresses can get gig speeds today. Our incumbent markets are now 56% fiber. And with the support of ACAM and our fiber deeper investments, we continue to drive copper out of our network. .

As shown on Slide 7, we delivered approximately 76,000 marketable fiber service addresses in the third quarter bringing us to approximately [ 181,000 ] for the first 9 months of the year. This represents the best third quarter fiber address delivery in company history and demonstrates our continued momentum.

Being first to fiber and seizing the current opportunity are critical which is why our fiber build plan is supported by historic levels of construction crews and our ACAM activity reached its highest level since the program began. In the third quarter, we delivered 27,000 new ILEC fiber addresses and expect that number to increase in the fourth quarter. That momentum is driving our CapEx guidance for the year.

Looking ahead, we plan to deliver another 25% of our ACM addresses next year with less construction competition in rural areas today, we are seizing the opportunity to retain crews and accelerate our investments. As a result, we have a large pipeline of addresses in various stages of construction and investment across many markets. This pipeline positions us well to meet our goals, both this year and long term.

In summary, our build teams are delivering at a record pace, giving us confidence in the construction plan and the opportunity ahead. Turning to sales. We ended the third quarter with approximately 17,000 fiber net adds, our highest quarterly result in company history, up approximately 50% year-over-year.

We also saw improvement in our fiber churn when compared to last year's third quarter, which is typically the industry's highest quarter for churn. We are seeing the benefits of our new sales leadership and expanded capabilities. We have additional door-to-door vendors to attack the record open-for-sale opportunities to complement our existing teams.

We have also increased capacity in our multi-dwelling space to accelerate sales for those units. In terms of customer acquisition, we have shifted a significant portion of volume toward the dot-com channel, which is our lowest cost of acquisition.

We are excited by the sales opportunities we see as we close out 2026 and move into 2027. In our cable markets, subscriber trends continue to stabilize during the third quarter. As you know, 22% of our cable addresses today are served with fiber.

As we continue to become a more fiber-centric company, I'm pleased to share that we are beginning activities to convert another 30,000 coax addresses to fiber. Our operational transformation is centered on efficiency, improving the customer experience and simplification.

As I've noted before, we continue to make progress modernizing our systems and remain on track with our transformation road map, making it easier for customers to do business with us. Turning to Slide 8. Our long-term goals reflect the scale and long-term value we expect to create through our fiber growth strategy.

We believe fiber is the superior broadband technology, not only for today, but well into the future. With the delivery of approximately 76,000 fiber addresses in the quarter, we now serve over 1.2 million fiber service addresses, representing 63% of our total footprint and with 82% of addresses capable of gig speeds.

We are building at a record pace, improving our execution and steadily shifting the business toward fiber. We know there is more work ahead but the progress we're making reinforces our confidence in our strategy and long-term value of the fiber-centric business we are creating.

Before I turn it over to Chris, I want to comment briefly on our third quarter financial results. We are very bullish on our fiber growth future, but continue to see pressure on our legacy business. This is a driver for our updated guidance. which Chris will cover in more detail. Thank you. And I will now turn the call over to Chris.

Kristina Bothfeld

Thanks, Ken. Turning to Slide 9. The chart on the left shows our quarterly fiber service address delivery over the past 7 quarters and reflects the build momentum we are experiencing. As Ken highlighted, we had company record address delivery in the third quarter, representing an 82% increase year-over-year, and the momentum continues as we head into the fourth quarter.

For the full year, we remain on track to deliver between 250,000 and 300,000 new fiber service addresses. The chart on the right illustrates the continued expansion of our fiber footprint. Over the past 3 years, we have increased the number of fiber service addresses across our markets by approximately 77%, demonstrating steady and meaningful progress toward our long-term fiber goals.

On Slide 10, residential fiber net adds were approximately 17,000 in the third quarter, a 50% increase compared to prior year, driven by continued footprint expansion and ongoing copper to fiber conversions. Residential fiber connections have grown 81% over the past 3 years, outpacing our fiber footprint growth. We expect continued fiber connection growth as we expand our footprint.

Turning to Slide 11. The chart on the left depicts our residential revenue per connection, which increased 2% year-over-year. This growth reflects annual price increases, partially offset by promotional activity. The chart on the right highlights total residential revenue between copper, cable and fiber. You'll see that fiber revenue is up 14% or $12 million versus prior year which largely offsets the legacy revenue stream pressures we are experiencing.

In cable, revenues are down 7% versus the third quarter of 2025, reflecting continued market pressures partially offset by a onetime benefit in the quarter. Adjusting for this benefit, cable revenues would have been down 10%. As Ken highlighted, we are increasing investment in sales capacity in our cable markets and are starting to see progress.

Overall, total residential revenue declined $3 million compared to prior year. Excluding the impact of divestitures, residential revenues were relatively flat. As Ken noted, we are deploying fiber across our footprint at a record pace to help mitigate legacy headwinds. Slide 12 summarizes our financial performance. Total operating revenues declined 3% in the quarter or 1% excluding the impact of divestitures.

The remaining decline reflects continued legacy revenue stream pressures, partially offset by fiber revenue growth. Cash expenses increased 4% as cost to support our growing expansion markets, along with inflationary cost increases, including fuel and people-related costs, were not fully offset by our transformation and ongoing cost containment initiatives.

Also note that the third quarter cash expenses include $4.2 million of strategic alternatives costs primarily related to workforce reductions. This compares to $3.5 million incurred in the prior year. We continue to drive efficiencies in the organization to help offset inflationary increases and costs associated with expanding service and growing our footprint.

The decline in adjusted EBITDA for the quarter reflects these cost pressures as well as top line headwinds from divestitures and legacy revenue streams. Capital expenditures totaled $251 million in the quarter, reflecting higher address delivery, a higher mix of buried versus aerial builds, and a record level of addresses under construction across our fiber markets that will be delivered in future quarters.

We are seeing higher costs to complete our EA can build in certain areas as we need to use more costly construction techniques and more miles of fiber required. Despite these higher costs, we believe the economics of our EA CAM program remain attractive. Slide 13 reflects our guidance for 2026, which has been updated. We are projecting total telecom revenues of $990 million to $1.01 billion, down from our prior guidance.

We were anticipating fiber revenues to more than offset legacy declines during the second half of 2026, but continue to work toward that inflection point. We also moved our adjusted EBITDA guidance range downward to $290 million to $310 million as the lower revenue expectations fall to the bottom line and we are experiencing higher costs to support our extended hours to service customers in areas where we are building fiber.

From a capital perspective, we have increased our guidance by $100 million from our prior midpoint to approximately $750 million. As Vicki and Ken both highlighted, delivery of fiber addresses at a record pace requires that we have a large funnel of addresses and the flexibility to pivot when delays arise from permitting and other factors.

Nearly half of this increased CapEx is driven by a pull-forward of future spend, which we expect will contribute to address delivery in 2027. The remaining increase is largely due to higher A-CAM build costs and a pivot to construct more of the buried addresses in our expansion markets, as I mentioned earlier. Before turning over the call, I want to thank the entire TDS team for their continued execution and focus, their efforts across fiber delivery, customer growth and operational transformation are critical to the progress we're making toward achieving our long-term objectives. I'll now turn the call over to Anthony.

Anthony Carlson

Thanks, Chris, and good morning. The third quarter represented another meaningful step in executing our strategy to optimize tower operations. Our year-over-year results are now becoming increasingly comparable as Q3 2025 mark both the launch of Array as a stand-alone tower company and commencement of the T-Mobile MLA.

As highlighted on Slide 18, when adjusting for DISH and excluding T-Mobile Interim site revenue, cash site rental revenue increased 20% year-over-year. After also fully excluding the impact of the T-Mobile MLA Cash site rental revenue grew 7% year-over-year, demonstrating the strong organic growth of our tower portfolio.

As T-Mobile continues its network integration activities, we are continuing to see the expected reduction in interim site revenue as those sites are terminated. Importantly, our leasing pipeline and sustained application activity continue to support healthy revenue growth which is expected to partially offset the impact of declining interim site revenue over time.

Turning to Slide 19. We continue to gain greater visibility into the expected population of tenantless towers following T-Mobile's integration process. Based on the information available today, we refined our estimate that 1,200 to 1,600 tenantless towers. As a reminder, however, T-Mobile has until January 2028 to designate its committed sites under the new MLA.

Given the likelihood that a meaningful number of towers will remain without tenants in the near term, we remain intensely focused on our ground lease optimization initiatives. While this is a multiyear effort, we have made progress in reducing lease costs on towers that are likely to become tenantless and identifying the most uneconomic sites for decommissioning.

More broadly, we are accelerating our ground lease buyout program, which expands tower level margins while further reducing portfolio risk. Moving to Slide 20. There has been minimal change since last quarter with a notable exception that we received regulatory approval for the sale of certain 600 megahertz and 700 megahertz spectrum licenses.

Subject to FCC finality and customary closing conditions, we expect the transaction to close by year-end. We also continue to pursue opportunities to monetize our remaining spectrum holdings, primarily our C-band spectrum. This spectrum is deployment-ready today, and we remain confident in its value as a highly attractive 5G asset, and the absence of near-term build-out requirements allows us to remain disciplined and avoid being forced sellers.

Slide 21 summarizes the results of our partnership or noncontrolling investment interests. As a reminder, 2025 investment income and distributions were impacted by several onetime factors including the impact of the Iowa partnership, selling their wireless operations to T-Mobile and distributions received from Verizon related to their transactions with Vertical Bridge.

Equity income for the 9 months ending September 30 was $116 million. Turning to Slide 23. Array delivered a strong quarter with year-over-year revenue growth driven primarily by the T-Mobile MLA complemented by solid growth from the rest of our customer base. As discussed in prior quarters, the year-over-year increase in cost of operations reflects the reclassification of certain property tax and insurance expenses from SG&A into cost of operations.

This change also contributed to the year-over-year reduction in SG&A expense. SG&A continue to include costs associated with winding down the legacy wireless operations, although those expenses declined further during the quarter. In addition, SG&A remained elevated due to strategic alternatives related costs incurred in evaluating the proposal received from TDS to acquire the remaining publicly held shares of Array.

Consistent with their classification, these costs are excluded from adjusted OIBDA. With the withdrawal of the TDS proposal, we do not expect these costs to recur in the fourth quarter. On Slide 24, our outlook remains unchanged. We expect total operating revenue of $205 million to $215 million, adjusted OIBDA of $60 million to $75 million and adjusted EBITDA of $220 million to $235 million.

Capital expenditures are expected to be $25 million to $35 million, driven by an expected increase in ground lease buyout activity during the remainder of the year. In closing, Array continued to make meaningful progress on its journey to becoming a leading tower company.

I want to personally thank our team for their dedication, execution and contributions throughout the year. We remain firmly focused on completing the T-Mobile integration, expanding our customer relationships and optimizing our ground lease portfolio.

The momentum across the business is clear, and I'm excited about the opportunities ahead and the progress we will continue to achieve together. I will now turn the call back to Walter.

Walter C.D. Carlson

Thank you, Anthony. As I noted in my opening remarks, TDS continues to make solid progress advancing our strategic priorities. The momentum we are seeing across the businesses positions us well as we come into the last 2 months of 2026 and look forward to 2027.

I'd like to again thank all of the outstanding associates across the TDS enterprise for their continued dedication and hard work in serving our customers and supporting the advancement of our business. Operator, please now open the line for questions.

Operator

[Operator Instructions] Your first question comes from the line of Rick Prints with Raymond James.

分析师问答

Ric Prentiss

I have a couple, want to start on the TDS Telecom side, as we've looked at and tanks with that chart showing kind of fiber versus copper versus coax, as we look at that, obviously, pressure on the legacy side, you talked a little bit about cable and what you're doing there, trying to get some more coax to fiber changes in sales. But as I look at the copper side, it looks like copper, you've had some divestitures, but kind of down $10 million year-over-year on the revenue line in copper markets, but also down $2 million sequentially in 1Q to 2Q, 2Q to 3Q. When do we think about turning that around? I think you mentioned putting some more ILEC fiber out there. But how should we think about stemming that trend on the copper side? And when do we think, broadly speaking, the business in flex so that you get revenue growth at the total level and EBITDA -- OIBDA growth at the total as well as you kind of balance fiber versus legacy.

Kenneth Dixon

Thanks for the question. Yes, what's beautiful for us this year is the [indiscernible] program. And as you saw, the 27,000 addresses that we delivered in the third quarter in our ILEC market, this is core to our strategy is deploying fiber into those EA can markets. And then along the route, picking up those copper-served addresses today in our legacy footprint.

So we saw a nice acceleration in the third quarter. We have a funnel very robust in terms of addresses for our EA Chem in the fourth quarter. And then as you see from some of my comments, we've got record crews right now from a construction standpoint. And candidly, the largest amount of addresses in our pipeline here going into the fourth quarter. So that gives us confidence that we're going to continue to be able to attack those copper markets and ultimately deploy fiber.

Kristina Bothfeld

And Rick, to answer your question around total revenue growth, what I would say is that we expected in the second half of this year that our revenue our fiber revenue growth would more than offset these legacy declines but we're still working towards that inflection point. I will say that inflection point is around the corner. It's not years away. And just like Ken said, our strategy is to accelerate our fiber business as much as possible to offset these legacy pressures in the near term.

Ric Prentiss

And how about as we look down to the OIBDA line? Obviously, you're investing a lot of CapEx think Vicki mentioned someone you mentioned kind of the return on capital hurdle for these projects in the low and mid-teens. How do you think about the OIBDA turning around and becoming growth then? .

Kristina Bothfeld

Yes. So just to elaborate on that. Obviously, revenue plays a huge role in EBITDA. So we're doing everything we can to get to that inflection point on revenue, and that will drop to the bottom line. We also are on pace to hit our transformation initiatives.

We've put a line in the sand that by year-end 2028, we will deliver $100 million in run rate benefits we're still tracking towards that goal. And so the increase in accelerated fiber revenue growth as well as those transformation efforts will help also turn around EBITDA in the future.

Ric Prentiss

Great. And the second 1 is for Anthony. Obviously, it seems like we get daily, weekly buzz from what SpaceX is doing, what DISH is doing. Can you let us tell how many Dish sites you had and what's happening as far as any discussions on the tower side with satellite companies in general? And how soon might we see something from satellite companies that impact you guys? .

Anthony Carlson

So in terms of your first question, we had about 330 DISH sites, of course, they're no longer paying for those. They're in the process of standing that equipment. That's not how many we have. We're not going to comment on any sort of particular satellite company. But what we will say is that we have great assets that are tracked to anybody who is interested in building out a terrestrial network and indeed, the largest carriers in the united states and many other players as well are already tenants of ours, and we look forward to working with anybody who's interested in building out retrial networks.

Ric Prentiss

And do you think strategically, if satellites do something terrestrially, how do you think of the impact on your tower business, neutral positive, very positive. But what's kind of the array of outcomes that you kind of look at what might happen in the still foobar unclear exactly what's happening.

Anthony Carlson

Well, obviously, there's no sort of big strategic questions about, hey, you know what's the -- assuming potential other major entrants become terrestrial network players, what's the end number of sort of terrestrial networks. But if that number goes up, I don't think there is any alternative of being broadly bullish for our business because or in the business of leasing space on towers if the number of major carriers goes from 3 to 4 or more, those carriers will need to use our space and that means more revenue for us.

So I think that's broadly bullish. I don't think a scenario where satellite companies are able to replace terrestrial networks entirely with satellite-based Services is very likely. I think that there are many laws of physics reasons for that, that have been discussed by many other people in many other forms. So we broadly believe that.

We think that direct-to-device communication is broadly complementary to the terrestrial service that is provided by terrestrial mobile networks, and we think it's great for consumers. So we're broadly bullish on the opportunities from additional mobile care.

Operator

[Operator Instructions] Your next question comes from the line of Michael Rollins with Citi.

Michael Rollins

I am curious if you could just share more perspective on the competitive landscape from the combination of wireless satellite you've got the potential for some overbuilds or incumbent builds depending on which markets we're talking about for you guys? And just how you're thinking about the long-term penetration or share opportunity and where broadband ARPUs go over time if competition stays where it is or picks up a bit. .

Unknown Executive

So where TDS has deployed fiber, we're not seeing a material impact from satellite. I would say if you look at areas that we've deployed fiber. I think I will just point to some of the things that we've seen most recently in the third quarter. We actually saw our fiber churn improve on a year-over-year basis by 20 basis points, and that was an improvement in what I'd say during mover season where we usually see elevated churn. .

The next thing, as we've put addresses out into the market with those marketable addresses, we had our biggest fiber net add in our customer -- in our company history at approximately 17,000. So the demand for our services is fantastic.

We believe strongly that fiber is the best solution for broadband. And if we look at the usage utilization on our network in terms of consumption, of data. It grew double digits again on a year-over-year basis. And we see that growth continuing and we see with more and more artificial intelligence usage in the home that fiber is absolutely the best solution. So we feel very confident in our fiber strategy.

In terms of ARPU, as I said, we absolutely believe that we're going to continue to see the usage on our network. And we believe a fiber strategy with the ability to go to multi-gig PON, whether it's up to 8 on XGS or 25 gig PON that over time, you'll see ARPUs increase based on the need for more and more data.

So we believe our fiber strategy is right on, and that's 1 of the reasons why we just spoke about converting 30,000 of our cable addresses over that we feel are great opportunity at very low cost to move to fiber and why we're so bullish on the A-CAM program to accelerate that and to candidly take as much copper out of our network in the next couple of years is possible.

Kristina Bothfeld

And Mike, with respect to penetration rates. So in our expansion markets, we're still consistently hitting on average, 25% penetration by month and A lot of that has to do with our robust presales model and kind of pent-up demand because typically, we have presales penetration of 20% that leads into that nice month 12 penetration. And then we're still targeting steady-state penetration rates of 40%.

And in our more mature markets, we are hitting those targets. And then with respect to EACAM, we've shared that our targeted penetration rates are 65% to 75% we're still in the early stages of deploying in these EA CAM markets, but we do have some areas that have passed that 12-month mark, and they're trending really nicely to those long-term targets.

Operator

[Operator Instructions] Your next question comes from the line of Sergey with Gamco Investors.

Sergey Dluzhevskiy

My first question is for Walter. You mentioned that a potential combination between TDS array still has benefits in your opinion. But given the fact that the 2 parties couldn't agree on consideration price what set of circumstances could lead TDS to potentially try again? And maybe if Array monetizes its remaining spectrum and becomes a smaller company, does that make things easier for a potential combination. Kind of any thoughts on that front would be appreciated.

Walter C.D. Carlson

Sergey, thank you for the question. We don't comment on specific future plans with respect to topics of that type. I would offer the following. We do think that the benefits from a combination of array with TDS would be meaningful. And that's why we proceeded with the offer that we made when we can't reach agreement on terms and price, we don't proceed.

And we don't predict the future, we can't predict the future with great clarity. So there may be circumstances where it makes sense to do this again. And there are so many things that can happen in life. It would be hard to predict exactly what they might be. But I want to underscore what I said in my remarks we are focused intently now on building both businesses and being successful in both businesses. That is our priority.

We've taken a large amount of costs out of the duplication that we had previously experienced from running Array and TDS separately. So we're running the array business very efficiently. We expect to continue that and have taken many of the costs out -- but there are good reasons to do it in the future. And if that makes sense, we will consider it at that time.

Sergey Dluzhevskiy

Got it. Great. My second question is for Ken. So obviously, you've been able to accelerate your build engine significantly. Any concerns about building too fast and also what is the right balance between the build base and following it up with appropriate go-to-market strategy and selling activities so that you're efficiently converting new pacings into customers. And maybe if you can talk about what metrics you typically look at when you analyze this type of convert. .

Kenneth Dixon

Okay. In terms of the -- let me start with the ECam. Obviously, this is a phenomenal program, and we're the largest recipient of the ACAM funding. And with that, has milestones in terms of locations that need to be delivered at the end of 2025 -- I'm sorry, at the end of 2026 and we feel confident in terms of our ability to achieve those.

We also have those same what I'd say, milestones with another 25% of those locations for next year. So ultimately, that's what's guiding us in terms of our EA can build. And 1 of the things that is important to us is that it comes at the perfect time we have a copper revenue challenge, and we have a solution with the A-CAM program and that funding and its ability to bring fiber into those communities. So that's what's really setting the pace for our ACAM build.

The second from expansion perspective is that our strategy is we want to be first to fiber. And as I had announced earlier this year with the additional edge-out opportunities of 300,000 addresses, it's very important for us now that we've established a flag in an expansion market. We've launched our brand, our sales capacity, our customer experience. It's now logical for us to look around that footprint where we can hedge out to and have that ability to be first fiber.

And when we're first to fiber, as Chris mentioned, we see very, very strong penetration rates. So that's really the strategy that we've talked about all year long. From a sales perspective, I think Chris had mentioned earlier as soon as we see those addresses go into our expansion markets, we've been very successful as it relates to that presale penetration and hitting that 1-year penetration milestone.

The second, I've said this all year long as we've opened up additional new open for sale. We have added a lot of vendor capacity in these geographic areas to go door-to-door. We think that's important. And that channel has really developed for us this year, and we've seen significant improvement in terms of their sales.

The other thing that we've spent a ton of time on this year is trying to drive more and more of our overall distribution to our lowest cost of acquisition channel, which is dot-com and I think we're just scratching the surface of what we can accomplish there as we go into 2027.

And then the last thing we're constantly looking at our single-family unit penetration, and we're also looking at our multi-dwelling unit penetration. We brought on some fantastic new leadership focused on MDU in the third quarter, and we're already starting to see the benefits of that. So definitely seeing what I'd say, improved overall sales capacity as we go into fourth quarter and into 2027.

Sergey Dluzhevskiy

Got it. Great. And my last question is for Anthony. So in early September, obviously, TGS and already said in their press release that they intend to increase the efforts to pursue monetization of remaining wireless spectrum assets. Could you provide maybe a bit more color on that front? And I guess, what is the level of interest in C-band right now? And how has space access a potential push to become a terrestrial wireless competitor impacting your discussions with potential buyers? .

Anthony Carlson

Thanks for the question, Serge. We don't have any further specific updates on our monetization efforts at this time, but I think it would be appropriate to reiterate that we think this is a very attractive asset, the C-band scalable -- now that's an existing ecosystem, stand position, creates a lot of opportunity with the upcoming option. So we -- and we continue to think it's a very attractive asset for a wide math potential buyers. .

Operator

[Operator Instructions] There are no further questions at this time. I will now turn the call back to John Toomey for closing remarks.

John Toomey

Thanks again for joining us this morning. And as always, please reach out if you have any additional questions. And I hope everyone has a great weekend.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.