of our greatest strengths our scarce low band spectrum asset combined with our robust cash balance positions us to pursue attractive monetization opportunities as the market continues to evolve we remain disciplined in managing expenses and thoughtful in how we allocate capital towards activities that increase the value and commercial availability of our spectrum. Importantly, as Scott discussed, the market environment surrounding spectrum transactions continues to provide greater transparency into the value of licensed spectrum ownership. We're seeing that through both our own commercial execution and broader market activity. Our executed utility spectrum transactions have averaged approximately $1.40 cents per megahertz pop while the fcc's most recent aws3 auction averaged approximately two dollars and fifty cents per megahertz pop we believe there is a strong upside opportunity both for existing and prospective investors when compared to our current market capitalization which implies a spectrum valuation of approximately 60 cents per megahertz pop We're also seeing continued strategic demand for spectrum across the communications ecosystem, with activity involving companies like Amazon and GlobalStar, SpaceX and Echostar, and Rocket Lab and Iridium. While these transactions reflect different spectrum characteristics and strategic objectives, together they provide additional market reference points for the value of license spectrum in our view the market has more evidence than ever to value our asset and enterics has increasing ways to realize that value that is an important distinction we control a scarce licensed low-band spectrum at a time when demand for spectrum is increasing and supply remains constrained with no debt a strong cash position and a disciplined cost structure we have the flexibility to be thoughtful about timing and remain firm on pricing as we monetize this asset that matters because the majority of the value remains ahead of us across our nationwide footprint approximately 3 billion megahertz pops representing about 85 percent of our total megahertz pops remain available to monetize including many of the largest and most valuable metropolitan markets In closing, we have the balance sheet to be patient, the discipline to invest where it matters, and significant value still ahead of us to capture. With that, I will turn the call back over to Scott.

Thanks, Elena. Before we open the call for questions, I want to leave you with one final thought. we believe enterics is uniquely positioned at the intersection of two powerful forces heightened demand for secure connectivity and a finite supply of high-quality licensed spectrum we are excited about where we are and what lies ahead Thank You operator we are ready for questions Thank you.

As a reminder, if you would like to ask a question, please press star 11 on your telephone. You'll hear an automated message advising your hand is raised. We also ask that you please wait for your name and company to be announced before proceeding with your question. One moment while we compile the Q&A roster. First question will be coming from the line of Sebastien Petit of J.P. Morgan. Please go ahead.

Thank you for taking the question. I guess given just the amount of demand in the market that you kind of each touched on as well as the active customer engagements, is the strategic review still actively passive or has the volume or the level of conversations internally within the company kind of increased kind of given some of the market forces and, you know, activity out there as well? And then if you could also update us on where you are, I think you touched on there's engagement with, I think Scottie said, a dozen active opportunities out there. Just where are you with utilities, other utilities outside of your traditional IOUs and maybe helping us think about maybe gating factors there for additional opportunities, additional perhaps announcements outside of your traditional cohort and maybe some of these other utility infrastructure opportunities.

Good morning, Sebastian. Thanks for the questions. On the first one, the strategic review, as you could imagine, the increasing demand and the preciousness of license spectrum, I would say, has increased the amount of interest with our spectrum, both from the utility side, which leads into your second question, and the first question of the strategic review, that those conversations on both of those angles are increasing in the last two months since we spoke with you. And regarding the deals, as I did mention on the prepared remarks, there's about a dozen deals. They're very active. There continues to be new deals that are coming to the table each month. And the ones that were starting two months ago when we spoke with you have continued to accelerate in their conversations and i'll leave you this last thought to give you a little bit more color on the 12 there are um a very nice set of seven digit eight digit and nine digit deals and very well represented in each one of those categories thank you sebastian thank you one moment for the next question, please.

Next question is coming from the line of Mike Crawford of BeRally Securities. Please go ahead.

Thank you.

Given that SpaceX now can be seen as a credible buyer to take everything and having over $100 billion of cash and securities on its balance Have you come back to your critical infrastructure targets and said, look, it's like now or never? Because I'm sure your asset would be more valuable to someone like SpaceX to the extent that it covered more of the country and less of a catch-quilt pattern.

Hey, good morning, Mike. It's Scott. We clearly are talking about that. We'll be prepared for that. That's a rich problem to have when the time comes, and we will be ready to have it. I will leave you with this. I wake up every morning of how to maximize the shareholder value and this incredible asset that we're sitting on. And I know I have the board's full support and this team's full support that we will not compromise this asset and the value of this asset for a subpar deal.

Okay, thank you. And then just on the status of, quote, this asset, So, you've got 40% of counties now cleared for a five-by-five LTE. Can you give any estimate of cost to clear everything, including what percent of that might be additional slices of spectrum you would need to acquire at the 600 megahertz Sasha and Karim's place for the report in order earlier this year.

Elena, do you want to take that?

Yes, Mike. I will start that and then pass it over to Chris for some additional remarks. As we've commented in the past, we speak to different audiences in these calls, and we need to continue to maintain our negotiation leverage as we negotiate with our incumbents and keep our costs down and returns up. you know those different audiences of course yourself the analysts our investors incumbents and customers in addition given that there's now optionality to how we may monetize this spectrum if we continue to monetize geography by geography the cost may be lower as they will be over several years if there's a nationwide buyer of course that is looking to clear the spectrum faster, then that cost estimate may be higher, given that there may be higher level of incentives to be provided, and so on and so forth, and just the process will need to be accelerated. But regardless of the cost estimates, even with the most conservative highest estimates, we believe that there's significant upside in the gross value of our asset as compared to the current market cap. And I wanted to also, in addition, comment on the growth value of the asset. I mentioned in my prepared remarks that, you know, the current two most relevant benchmarks to us are our own, which is the average of all the deals that we've closed, which is the 12 deals over the last several years. That's about $1.40 per megahertz pop. The growth value of the asset of the remaining $3 billion POPs, if we use that benchmark, would put us at well over $4 billion. If we use the most current, most latest auction by the SEC, which averaged about $2.50, the gross value of our asset would be about $7.5 billion. Again, we believe there's significant upside as compared to our current market cap.

Chris, did you have any additional comments on query yeah thanks elena mike to your to your question specifically about 600 first i just want to make sure we level set with everyone on the call every one of our deals to date has been a significant premium to 600 so even if we were starting with the basis of you know having to secure spectrum from the commission's inventory at that price point uh the the delta between what we've sold that to date and that is significant um and then more specifically the reality is the the amount of spectrum we take from the commission's uh inventory um it's a sliding scale it obviously differs from county to county and the fact of the matter is every time we clear an incumbent we onboard their channels which means we pay less to the fcc from a spectrum in their inventory 600 megahertz price so we we've we've uh been careful not to give a macro or micro level but what we've said is uh as scott said we're going to be a shepherd of this asset and we're going to monetize it to to our shareholders uh benefit and we're very good at at this clearing we can and will be able to monetize a hundred percent of the country i know you you and i and the team and our team had that conversation after the last call. We are confident that 100% of the country is monetizable. And we're confident that we can do it in a way that is extremely valuable to our shareholders and to the ultimate buyer.

You know, I have to pile on in early in my days as a CEO of this company, I called out that one of the superpowers that was immediately obvious in this company was its ability to understand spectrum, ability to clear spectrum and put that to use in the market. And that continues to show up as a superpower that's only gained strength and the amount of work that Chris and his team are doing with their strategic nature of our nationwide footprint and clearing to ensure all 10 megahertz pops are monetized has been really a pleasure to watch and to see their performance um great thank thank you for those answers i have one final question hopefully given the querying activity that you've already been incurring for the first half of this quarter is there is there any color you can give on potential gap broadband

on license gain estimate for this quarter or the remainder of this fiscal year following the just over 10 million gain recording in the first quarter?

Yeah, Mike, as you know, we don't guide, but, you know, I will say we do expect, I'll call them at least single-digit million gains in the following quarter. All right, thank you very much.

Yeah, perfect. Thanks, Mike. Thank you. Thank you. As a reminder, if you would like to ask a question, please press star one one on your telephone. And one moment for the next question. Our next question is coming from the line of Greg Bendy of Clear Street. Please go ahead.

Hi, guys. Thanks for taking my question. The first one, can you share any – it looks like your D2D experimental licenses run through – I guess they started on May 31st. Can you share anything you've learned so far and what decision points we should be looking for going forward on those trials?

Good morning, Greg. We talk about this regularly. both link and ourselves were very pleased with the results so we call it the success it has a green check mark to it and we are very pleased and the d2d satellite is something we've been anticipating for a long time and obviously that is really playing out nicely for us to have that kind of preparation regarding the activity we see in the market but Chris do you want going to double click all that Scott is is spot on Greg hi and and and welcome and we're excited to have the coverage yeah I mean the link has been a great partner it has introduced us as Scott reference to the d2d world the first

round of tests were incredibly successful we're in conversations with them about how to evolve you know I will say we we loved and you saw a press released from us yesterday and a filing at the FCC we loved what SpaceX introduced publicly as Scott references what we've been talking about internally which is you know right now we have two different ways our licensees have two different ways to satisfy build-out we would love to have a third way to add satellite coverage to that and and so what we're seeing is across the board you're hearing this word optionality and so we see optionality and how to monetize we see optionality and how to clear uh and we love the idea of optionality of of how to um satisfy satisfy build up um you know david goldman and the team at spacex are very good at what they at what they do and we love the idea that they put into the public discourse the idea of using satellite coverage to satisfy build-out.

That's very helpful. And can you just let us know, I mean, with your active conversations on the utilities, whether it's justified or not, as you, you know, sell them on a private and secure connection, is there any concerns that they might have about adding a satellite layer that conflicts with the exclusivity that the utility customers think they're paying for our belief.

We have not. I have not. I think if there was any concerns on this, we would hear about it. I have not heard any concerns on that. In fact, I think initially, if anything, they see the optionality is very strong for their cases of the conversations that we've had, Greg.

Okay, very helpful. And then just one final one.

You know, given the strong cash position that you ended at um it looks like there's 226 million left on the buyback authorization how should we be uh thinking about that given that it expires in september uh i guess late september yeah thanks greg now we we just as much as we talk about optionality and uh maximizing the value of the spectrum we think about capital allocations home daily and we always think of uh where we should put every dollar to ensure that we maximize the shareholder return um you know while we also balance of course the financial health of the company uh having a strong balance sheet uh currently allows us to um you know make investments and to ensure that we are unlocking the value of this monetizable spectrum um and also allows us to be patient and to ensure that we um utilize the best opportunities to monetize it. Share Buybacks will continue being in our toolkit. I expect that I wouldn't be surprised if we renew the program in September and when the time is right, that is always something that we can utilize.

That's very helpful.

Thanks a lot. Thank you. Thank you. One moment for the next question, please. Our next question is coming from the line of George Sutton of Craig Hillion Capital Group. please go ahead.

Hey, guys. This is Logan on for George. First one for me, I wondered if you could give us an update on TowerX and Cadillacs. I'm curious as we think about those dozen opportunities that you talked about, maybe just give us a sense like what portion of those include conversations about those offerings and maybe just help us understand kind of how close you feel like you're getting to having tangible deals there.

Hey, Logan. Good to hear from you and pass our hello to George. The role that those launches have given us have played out exactly as we were hoping to eliminate friction. To beyond spectrum, we work with utilities to help understand the broader roadmap of actually getting it deployed and having their business executives get use of it. And so how commercially that plays out regarding specific products or the premium that we're seeing and the friction that we're reducing in the market is still early days, but it is making a big impact on the acceleration of the deals, the value that we're getting based on the deals, and the interest in new conversations that is opening up for us to have broader conversation within the utilities and other sectors for that matter.

But commercially of how that plays out is still early days and we're shaping that but it is certainly playing a nice impact positively for us got it and then just one other for me i mean you mentioned the aws3 results i'm curious as we look at the pricing in certain areas where you guys might also be in negotiations for for spectrum deals do those results have any impact on negotiations or pricing talks on your end?

Yes, Logan, this is Elena. Absolutely. Any public data and benchmarks certainly educate our pricing conversations with our customers, given that there are public benchmarks. So, absolutely, it's been having a great positive effect on our pricing strategy and conversations.

Thank you. Thank you.

There are no more questions in the queue, and I would like to now turn the call back over to Scott Lang CEO for calls remarks please go ahead I want to just start with once again recognizing this team here at enter X and the hard work and dedication that I see every single day literally seven days a week almost 24 hours a day I want to thank all of our investors I want to thank all of the analysts for dialing in today and the thoughtful questions it's a real honor to be the CEO of this company and understanding what we do every day and the value and the and the kind of great company that we are creating so I want to thank all of you for joining and we will look forward to following up and staying in touch have a great day this concludes today's programming thank you so much for joining you may now disconnect