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MOBILE & TELECOMMUNICATIONS

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Founded Year

1997

Stage

Unattributed VC - VI | Alive

Total Raised

$33.11M

Last Raised

$10M | 21 yrs ago

About Wireless

Wireless is a company based in Santa Clara, California. Wireless' investors include Crossroads Venture Capital, Advent International, Gemini Investors, Stratford Capital Partners and HMS Hawaii Management.

Wireless Headquarter Location

5452 Betsy Ross Drive

Santa Clara, California, 95054,

United States

408-727-8383

Latest Wireless News

MANAGEMENT'S DISCUSSION AND ANALYSIS OF TRILOGY INTERNATIONAL PARTNERS INC - Form 6-K

Nov 10, 2021

11/09/2021 | 05:55pm EST Message : MANAGEMENT'S DISCUSSION AND ANALYSIS OF TRILOGY INTERNATIONAL PARTNERS INC. This Management's Discussion and Analysis ("MD&A") contains important information about the business of Trilogy International Partners Inc. ("TIP Inc.", together with its consolidated subsidiaries, the "Company") and its performance for the three and nine months ended September 30, 2021. This MD&A should be read in conjunction with TIP Inc.'s audited consolidated financial statements for the year ended December 31, 2020 and notes thereto (the "Consolidated Annual Financial Statements"), prepared in accordance with generally accepted accounting principles in the U.S. ("U.S. GAAP") as issued by the Financial Accounting Standards Board, TIP Inc.'s MD&A for the year ended December 31, 2020 and TIP Inc.'s unaudited condensed consolidated financial statements for the three and nine months ended September 30, 2021 and notes thereto (the "Condensed Consolidated Financial Statements"), prepared in accordance with U.S. GAAP. On February 7, 2017, Trilogy International Partners LLC, a Washington limited liability company ("Trilogy LLC"), and Alignvest Acquisition Corporation (now TIP Inc.) completed a court approved plan of arrangement (the "Arrangement") pursuant to an arrangement agreement dated November 1, 2016 (as amended December 20, 2016). As a result of the Arrangement, TIP Inc., through a wholly owned subsidiary, acquired a majority interest in Trilogy LLC. As of September 30, 2021, TIP Inc. held a 99.3% economic ownership interest in Trilogy LLC and, as a result of the redemptions of all remaining outstanding Trilogy LLC Class C Units in October 2021, TIP Inc. now holds 100% economic ownership interest in Trilogy LLC. All dollar amounts are in U.S. dollars ("USD"), unless otherwise stated. Amounts for subtotals, totals and percentage variances included in tables in this MD&A may not sum or calculate using the numbers as they appear in the tables due to rounding. This MD&A is current as of November 9, 2021 and was approved by the Company's board of directors. Cautionary Note Regarding Forward-Looking Statements Certain statements and information in this MD&A are not based on historical facts and constitute forward-looking statements or forward-looking information within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws ("forward-looking statements"). Forward-looking statements are provided to help you understand the Company's views of its short and longer term plans, expectations and prospects. The Company cautions you that forward-looking statements may not be appropriate for other purposes. Forward-looking statements include statements about the Company's business outlook for the short and longer term and statements regarding the Company's strategy, plans and future operating performance. Furthermore, any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be forward-looking statements. Such statements are identified often, but not always, by words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategy", "goals", "objectives", "potential", "possible" or variations thereof or stating that certain actions, events, conditions or results "may", "could", "would", "should", "might" or "will" occur, be taken, or be achieved, or the negative of any of these terms and similar expressions including, but not limited to, statements relating to: the continued expansion of wireless communication and data technologies, and their growing affordability; revenue growth from increasing consumption of data services; the Company's ability to retain, and capture a larger share of, customers; change in the economic, competitive and market conditions in New Zealand and Bolivia; the performance of the Company's investments; the renewal or expiration of the Company's spectrum licenses; the availability of 5G spectrum licenses; changes in regulatory policies and the enforcement of service quality and other compliance requirements; the continuing impact of the coronavirus (COVID-19) pandemic; and plans and objectives such as the potential initial public offering of 2degrees (as defined below) or business combination with the Orcon Group Limited ("Orcon Group"). Forward-looking statements are not promises or guarantees of future performance. Such statements reflect the Company's current views with respect to future events and may change significantly. Forward-looking statements are subject to, and are necessarily based upon, a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies, many of which, with respect to future events, are subject to change. The material assumptions used by the Company to develop such forward-looking statements include, but are not limited to: · the completion of satisfactory due diligence by 2degrees and Orcon Group with respect to their proposed transaction; the ability and willingness of these parties to negotiate and agree upon final terms of the potential transaction; the conditions to closing such a transaction with Orcon Group will be satisfied, including necessary regulatory approvals; and if a transaction with Orcon Group is not entered into, that 2degrees will be able to resume and complete an initial public listing and equity issuance; · · commodity prices, currency exchange and interest rates and competitive intensity. Forward-looking statements are based on estimates and assumptions made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors that the Company believes are appropriate in the circumstances. Many factors could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements due to a variety of known and unknown risks, uncertainties and other factors, including, without limitation, those described under the heading "Risk Factors" included in TIP Inc.'s Annual Report on Form 20-F for the year ended December 31, 2020 (the "2020 Annual Report") filed on SEDAR (www.sedar.com) and on EDGAR (www.sec.gov), and those referred to in TIP Inc.'s other regulatory filings with the U.S. Securities and Exchange Commission in the United States and the provincial securities commissions in Canada. Such risks, as well as uncertainties and other factors that could cause actual events or results to differ significantly from those expressed or implied in the Company's forward-looking statements, include, without limitation: · · risks related to the influence of securities industry analyst research reports on the trading market for the Common Shares; and · risks related to being a publicly traded company, including, but not limited to, compliance and costs associated with the U.S. Sarbanes-Oxley Act of 2002 (to the extent applicable). This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. All forward-looking statements included herein are based on the beliefs, expectations and opinions of management on the date the statements are made. Except as required by applicable law, the Company does not assume any obligation to update forward-looking statements should circumstances or management's beliefs, expectations or opinions change. For the reasons set forth above, investors should not place undue reliance on forward-looking statements. Market and Other Industry Data This MD&A includes industry and trade association data and projections as well as information that the Company has prepared based, in part, upon data, projections and information obtained from independent trade associations, industry publications and surveys. Some data is based on the Company's good faith estimates, which are derived from management's knowledge of the industry and independent sources. Industry publications, surveys and projections generally state that the information contained therein has been obtained from sources believed to be reliable. The Company has not independently verified any of the data from third-party sources nor has it ascertained the underlying economic assumptions relied upon therein. Statements as to the Company's market position are based on market data currently available to the Company. Its estimates involve risks and uncertainties and are subject to change based on various factors, including those discussed in the 2020 Annual Report under the heading "Risk Factors" and discussed herein under the heading "Cautionary Note Regarding Forward-Looking Statements". Projections and other forward-looking information obtained from independent sources are subject to the same qualifications and uncertainties as the other forward-looking statements in this MD&A. Trademarks and Other Intellectual Property Rights The Company has proprietary rights to trademarks used in this MD&A, which are important to its business, including, without limitation, "2degrees", "NuevaTel" and "Viva". The Company has omitted the "®," "™" and similar trademark designations for such trademarks but nevertheless reserves all rights to such trademarks. Each trademark, trade name or service mark of any other company appearing in this MD&A is owned by its respective holder. 3 About the Company TIP Inc., together with its consolidated subsidiaries in New Zealand and Bolivia, is a provider of wireless voice and data communications including local, international long distance and roaming services, for both subscribers and international visitors roaming on its networks. The Company also provides fixed broadband communications to residential and enterprise customers in New Zealand. The Company's services are available to an aggregate population of 16.8 million persons. The Company's founding executives launched operations of the Company's Bolivian subsidiary, Empresa de Telecomunicaciones NuevaTel (PCS de Bolivia), S.A. ("NuevaTel"), in 2000 when it was owned by Western Wireless Corporation ("Western Wireless"). Trilogy LLC acquired control of NuevaTel from Western Wireless in 2006, shortly after Trilogy LLC was founded. In 2009, Trilogy LLC launched Two Degrees Mobile Limited ("2degrees") as a greenfield wireless communications operator in New Zealand. As of September 30, 2021, the Company had 1,622 employees. The market operations in New Zealand and Bolivia represent the Company's two reportable segments. Our chief operating decision maker, TIP Inc.'s Chief Executive Officer, assesses performance of the segments and allocates resources primarily based on the financial measures of revenues and Segment Adjusted EBITDA. See Note 17 - Segment Information to the Condensed Consolidated Financial Statements for additional information. The Company's Strategy The Company's strategy is to operate wireless and fixed broadband telecommunications businesses in markets located outside the United States of America that demonstrate the potential for growth. The Company believes that the wireless communications business will continue to expand in these markets because of the increasing functionality and affordability of wireless communications technologies as well as the acceleration of wireless data consumption as experienced in more developed countries. Data revenue growth continues to present a significant opportunity in each of the Company's markets in different stages of smartphone and other data-enabled device penetration. In New Zealand, the sale of bundled services, providing both mobile and broadband services to subscribers, continues to facilitate higher rates of customer retention and an ability to capture a larger share of household communications revenues and small and medium enterprise customers. The Company's wireless services are provided using a variety of communication technologies: Global System for Mobile Communications ("GSM" or "2G") (NuevaTel only), Universal Mobile Telecommunication Service, a GSM-based third generation mobile service for mobile communications networks ("3G"), and Long Term Evolution ("LTE"), a widely deployed fourth generation service ("4G LTE"). Deployment of 4G LTE in New Zealand and Bolivia enables the Company to offer its wireless subscribers in those markets a wide range of advanced services while achieving greater network capacity through improved spectral efficiency. The Company believes that 4G LTE services will continue to be a catalyst for revenue growth from additional data services, such as mobile broadband, internet browsing capabilities, richer mobile content, video streaming and application downloads. In Bolivia, 4G LTE technology is being deployed to deliver broadband services to homes as well as mobile users. The Company's 4G LTE networks will be enhanced with 4.5G and 4.9G features, which are known in the industry as LTE Advanced and LTE Advanced Pro, respectively, as traffic and capacity demands require. This evolution is expected to be accomplished mainly through commercial software releases by our network equipment manufacturers. In New Zealand, 5G spectrum is becoming available, enabling carriers to offer new and even more data-intensive wireless services and applications. Foreign Currency In New Zealand, the Company generates revenue and incurs costs in New Zealand dollars ("NZD"). Fluctuations in the value of the New Zealand dollar relative to the U.S. dollar can increase or decrease the Company's overall revenue and profitability as stated in USD, which is the Company's reporting currency. The effect of these fluctuations is referenced in this MD&A as "impact of foreign currency". The following table sets forth for each period indicated the exchange rates in effect at the end of the period and the average exchange rates for such periods, for the NZD, expressed in USD: September 30, 2021 Impact of COVID-19 on our Business In December 2019, a strain of coronavirus, now known as COVID-19, surfaced in China, spreading rapidly throughout the world in the following months. In March 2020, the World Health Organization declared the outbreak of COVID-19 to be a pandemic. Shortly following this declaration and after observing COVID-19 infections in their countries, the governments of New Zealand and Bolivia imposed quarantine policies with isolation requirements and movement restrictions. During 2020 and continuing through the filing date of our Condensed Consolidated Financial Statements, the business and operations of both 2degrees and NuevaTel have been affected by the pandemic. The impact to date has varied with differing effects on financial and business results in New Zealand and Bolivia. Given the ongoing and changing developments related to the pandemic, the full extent of potential future effects on the Company's businesses and financial results cannot be reliably estimated. In New Zealand, the government's swift and significant response during 2020 had an immediate impact on customer acquisition and revenues, and 2degrees undertook actions to mitigate impacts throughout the prior year. However, as movement restrictions within New Zealand were lifted, financial results, including revenues and Segment Adjusted EBITDA (see Note 17 - Segment Information to the Condensed Consolidated Financial Statements), began to improve sequentially in the latter part of 2020 and continuing into 2021 as compared to the initial months of the pandemic. During the third quarter of 2021, a resurgence of COVID-19 cases resulted in a reinstatement of movement restrictions which adversely affected financial sequential results during the quarter. These movement restrictions are expected to remain in force at various levels throughout the country during the fourth quarter or until target vaccination rates are met. Consequently, there continues to be uncertainty for 2degrees regarding the future effect of COVID-19 on the New Zealand economy and related responses by the government, regulators and customers. In Bolivia, the consequences of COVID-19 and related societal restrictions have been more pronounced, and the impact of the pandemic on the financial results of NuevaTel has been more significant than in New Zealand. Over the course of 2020 and continuing through 2021, NuevaTel experienced a reduction in key financial metrics including revenues, Segment Adjusted EBITDA and subscribers as a result of societal and movement restrictions which significantly affected customer behavior. Additionally, continuing through the third quarter of 2021, societal and movement restrictions in Bolivia have resulted in economic uncertainty and it is unclear when customer behavior in Bolivia will return to historic norms, creating a risk of a continuing adverse impact on the timing and amount of cash collections, bad debt expense and revenue trends. Periodically during 2021, certain regions in Bolivia experienced a resurgence of COVID-19 cases which resulted in additional measures that suppressed typical customer behavior. Due to the wide-ranging economic effect of COVID-19 in Bolivia, NuevaTel generated substantial net losses during the periods impacted by the pandemic and continuing through the nine months ended September 30, 2021. Similarly, the net losses incurred in the prior year impacted our near-term expectation regarding the ability to generate taxable income in Bolivia and thereby utilize NuevaTel's deferred tax assets, certain of which have a relatively short duration of use. Consequently, during the third quarter of 2020, management changed its assessment with respect to the ability to realize NuevaTel's net deferred tax assets, concluding that they are no longer more likely than not to be realized. On the basis of this evaluation, management recorded a full valuation allowance against NuevaTel's net deferred tax asset balance in the prior year and has continued to maintain a full reserve through September 30, 2021. Management will continue to assess the need for a valuation allowance in future periods. 5 As it relates to NuevaTel's long-lived assets, including property and equipment, license costs and other intangible assets, and operating lease right of-use-assets, the Company monitors and assesses for impairment when events or changes in circumstances indicate that the carrying amount of an affected asset group may not be recoverable. This evaluation of long-lived assets is performed at the NuevaTel entity level, which is the lowest level at which individual cash flows can be identified. As disclosed in prior filings by the Company, NuevaTel's financial performance during the second half of 2021 was expected to be pivotal to management's continuing evaluation of facts and circumstances in this regard. Amidst the ongoing impact of COVID-19 on the local economy, NuevaTel did not meet management's expectations regarding recovery of its business and financial performance during the third quarter of 2021, particularly considering the sequential quarters of negative Adjusted EBITDA during a period when management expected a return to a positive trajectory. As a result, expectations regarding NuevaTel's long-term financial performance have been revised to reflect these changes in facts and circumstances. Due to these and other changes in events and circumstances for NuevaTel, the Company tested the long-lived assets of NuevaTel (the "asset group") in the third quarter of 2021 for recoverability and impairment. In evaluating long-lived assets for recoverability, the undiscounted cash flows expected to result from the use of the asset group are compared to the carrying value of the asset group. If the undiscounted cash flows are less than the carrying value, an impairment loss is recognized to the extent that the carrying value of the asset group exceeds its fair value, considering external market participant assumptions. The Company performed a recoverability test during the third quarter of 2021 using management's best estimate of future undiscounted cash flows and determined that the carrying value of the asset group was not recoverable. Accordingly, the Company determined an estimated fair value of the asset group and related long-lived assets using a combination of valuation techniques, including: (i) a discounted cash flow method, which estimates the amount and timing of net future cash flows and discounts them using a risk-adjusted rate of interest, (ii) a guideline public company method using observable public company valuation information, and (iii) a transaction-based method using observable valuations of recent merged or acquired companies in the telecommunications industry. The fair values of the long-lived assets included within the asset group were further determined using various valuation techniques applied by asset type, including observed market sales of similar assets and consideration of liquidation values and economic obsolescence factors. As a result of estimating the fair value of the asset group and comparing amounts to their carrying value, the Company recorded an impairment charge in the amount of $113.8 million during the three months ended September 30, 2021. The impairment was allocated to long-lived assets in the following amounts: $42.2 million to property and equipment, $48.5 million to operating lease right-of-use assets, $18.8 million to license costs and other intangible assets, and $4.3 million to other assets. These impairment charges were included in impairment of long-lived assets in our Condensed Consolidated Statements of Operations and Comprehensive Loss. The pre-tax impairment charge resulted in a $28.5 million deferred tax asset which was offset by a full valuation allowance, and a $5.2 million tax benefit as a result of the reduction to the Company's deferred tax liability for NuevaTel's unrepatriated earnings. NuevaTel has maintained its liquidity to date in part due to cash management efforts since the onset of the COVID-19 pandemic, resulting in $16.7 million of cash, cash equivalents and restricted cash as of September 30, 2021. As an additional measure to preserve liquidity and support the ability to generate future cash flows, NuevaTel implemented workforce reductions in the fourth quarter of 2020 with related cost reductions continuing through the nine months ended September 30, 2021. Although these initiatives have tempered the impact to date, the prolonged effect of the pandemic has resulted in increased liquidity and cash challenges for NuevaTel which could become acute regarding its ability to meet its financial obligations as they become due. Specifically, forecasted cash resources may not be sufficient to fund obligations due in the first quarter of 2022. Management is currently working to address issues associated with meeting such financial obligations. These actions may include arranging extended payment terms with suppliers, arranging other external investment or seeking to transition the NuevaTel business to a third party. 6 Overall Performance The table below summarizes the Company's key financial metrics for the three and nine months ended September 30, 2021 and 2020: Three Months Ended (1)Includes public telephony and other wireless subscribers. (2)Beginning with the third quarter of 2021, we replaced "Wireline" with "Fixed broadband" and reclassified fixed LTE subscribers from Other wireless subscribers to Fixed broadband subscribers. For more details, see "Reclassification of Fixed Broadband Service Revenues" in this MD&A. (3)Net loss margin is calculated as Net loss divided by service revenues. (4)These are non-U.S. GAAP measures and do not have standardized meanings under U.S. GAAP. Therefore, they are unlikely to be comparable to similar measures presented by other companies. For definitions and reconciliation to most directly comparable GAAP financial measures, see "Definitions and Reconciliations of Non-GAAP Measures" in this MD&A. (5)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and finance lease arrangements. Expenditures related to the acquisition of spectrum licenses, if any, are not included in capital expenditures amounts. Reclassification of Fixed Broadband Service Revenues Beginning with the third quarter of 2021, we replaced "Wireline" with "Fixed broadband" to describe the revenues and subscribers associated with the Company's fixed broadband products in New Zealand and Bolivia, which may be provided using fixed line or wireless technology. As a result, fixed LTE service revenues were reclassified from Wireless service revenues and are now included as a component of Fixed broadband service revenues in our Condensed Consolidated Statements of Operations and Comprehensive Loss. Fixed LTE subscribers were also reclassified from Other wireless subscribers to Fixed broadband subscribers. This reclassification has been applied to all periods presented in this MD&A. Fixed LTE service revenues reclassified to Fixed broadband service revenues were $1.3 million and $3.6 million for the three and nine months ended September 30, 2021, respectively, and $0.7 million and $2.1 million for the three and nine months ended September 30, 2020, respectively. This change had no impact on total revenues or net loss for any period presented. Q3 2021 Highlights · New Zealand postpaid wireless subscribers increased 41 thousand, or 8%, as of September 30, 2021, compared to September 30, 2020, due in large part to business subscriber growth. New Zealand postpaid service revenues increased 14% in the third quarter of 2021 compared to the third quarter of 2020 (an 8% increase excluding the impact of foreign currency). · New Zealand fixed broadband subscribers increased 17 thousand, or 13%, as of September 30, 2021, compared to September 30, 2020, driving a 22% increase in New Zealand fixed broadband service revenues compared to the same period in 2020 (a 15% increase excluding the impact of foreign currency). 7 · New Zealand service revenues increased 14% for the three months ended September 30, 2021 compared to the same period in 2020 (a 7% increase excluding the impact of foreign currency). · Bolivia total subscribers increased 79 thousand, or 5%, as of September 30, 2021, compared to September 30, 2020, mainly due to an increase in prepaid wireless subscribers of 101 thousand, or 8%. · Consolidated Adjusted EBITDA declined $2.1 million, or 8%, for the three months ended September 30, 2021 compared to the third quarter of 2020, primarily due to a decline in Bolivia Segment Adjusted EBITDA of $2.0 million, or 421%, partially offset by an increase in New Zealand Segment Adjusted EBITDA of $1.0 million, or 4%. Excluding the impact of foreign currency, Consolidated Adjusted EBITDA and New Zealand Segment Adjusted EBITDA declined $3.8 million, or 13%, and $0.7 million, or 2%, respectively, for the three months ended September 30, 2021 compared to the same period in 2020. Key Performance Indicators The Company measures success using a number of key performance indicators, which are outlined below. The Company believes these key performance indicators allow the Company to evaluate its performance appropriately against the Company's operating strategy as well as against the results of its peers and competitors. The following key performance indicators are not measurements in accordance with U.S. GAAP and should not be considered as an alternative to net income or any other measure of performance under U.S. GAAP (see definitions of these indicators in "Definitions and Reconciliations of Non-GAAP Measures - Key Industry Performance Measures - Definitions" at the end of this MD&A). Subscriber Count % (1)Beginning with the third quarter of 2021, we replaced "Wireline" with "Fixed broadband" and reclassified fixed LTE subscribers from Other wireless subscribers to Fixed broadband subscribers. (2)Includes public telephony and other wireless subscribers in Bolivia. The Company determines the number of subscribers to its services based on a snapshot of active subscribers at the end of a specified period. When subscribers are deactivated, either voluntarily or involuntarily for non-payment, they are considered deactivations in the period in which the services are discontinued or after 90 days of inactivity. Wireless subscribers include both postpaid and prepaid subscribers for voice-only services, data-only services or a combination thereof, in both the Company's New Zealand and Bolivia segments, as well as public telephony and other wireless subscribers in Bolivia. Fixed broadband subscribers comprise the subscribers associated with the Company's fixed broadband products in New Zealand and Bolivia. 8 As of September 30, 2021, the Company had 3.3 million consolidated subscribers, of which 3.1 million were wireless subscribers and 172 thousand were fixed broadband subscribers. Fixed broadband subscribers as of the end of the third quarter increased 28 thousand compared to September 30, 2020, and wireless subscribers increased 57 thousand compared to September 30, 2020, primarily due to the following: · Bolivia's wireless subscriber base increased 4% compared to September 30, 2020, reflecting an increase of 8% in prepaid subscribers due to promotional activities which resulted in prepaid subscriber gains year-over-year. Prepaid subscribers comprise the majority of wireless subscribers in Bolivia. Bolivia's postpaid subscriber base as of September 30, 2021 declined 10% compared to September 30, 2020. · New Zealand's wireless subscriber base declined 1% compared to September 30, 2020, reflecting a decline in prepaid subscribers of 5%, partially offset by an increase in postpaid subscribers of 8%. See the New Zealand and Bolivia Business Segment Analysis sections of this MD&A for additional information regarding the changes in subscribers. Consolidated Key Performance Metrics(1) pts - percentage points (1)For definitions, see "Definitions and Reconciliations of Non-GAAP Measures - Key Industry Performance Measures-Definitions" in this MD&A. (2)Beginning with the third quarter of 2021, fixed LTE subscribers were reclassified for all periods from wireless subscribers and are now included as a component of fixed broadband subscribers. (3)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and finance lease arrangements. Expenditures related to the acquisition of spectrum licenses, if any, are not included in capital expenditures amounts. Monthly Blended Wireless ARPU - average monthly revenue per wireless user Consolidated monthly blended wireless ARPU declined 3% and increased 5% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. These variances were impacted by foreign currency in New Zealand. Excluding the impact of foreign currency, consolidated monthly blended wireless ARPU declined 6% and 2% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. These declines were primarily due to the impact of the COVID-19 pandemic on subscriber activity and usage of service in Bolivia. Bolivia blended wireless ARPU declined 23% and 15% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. The declines in Bolivia were partially offset by increases in New Zealand monthly blended wireless ARPU of 11% and 16% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020 (excluding the impact of foreign currency, New Zealand monthly blended wireless ARPU increased 5% and 4% for the three and nine months ended September 30, 2021, respectively) driven mainly by a higher proportion of the subscriber base being comprised of postpaid subscribers in 2021 compared to 2020. Cost of Acquisition The Company's cost of acquisition for its segments is largely driven by the amount of equipment subsidies provided to subscribers, as well as fluctuations in sales and marketing, which are components of supporting the subscriber base; the Company measures its efficiencies based on a per gross add or acquisition basis. 9 Cost of acquisition declined 26% for both the three and nine months ended September 30, 2021, compared to the same periods in 2020, primarily driven by declines in Bolivia. The declines in Bolivia were due to the higher increases in wireless gross additions of 66% and 79% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, while sales and marketing costs increased 1% and declined 12% for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. The declines in Bolivia were partially offset by an increase in New Zealand primarily due to increases in sales and marketing. Equipment Subsidy per Gross Addition Equipment subsidies, a component of the Company's cost of acquisition, are offered to stimulate subscriber additions and retention. The Company also periodically offers equipment subsidies in New Zealand on certain plans and wireless devices; however, in general there has been less of a focus on handset subsidies in recent years since the launch of an Equipment Installment Plan ("EIP"). The grey market category, a source of unsubsidized devices, continues to represent the principal smartphone market in Bolivia. Recently, "bring your own device" plans have also become popular, further contributing to a decrease in handset subsidies. For the three and nine months ended September 30, 2021, equipment subsidy per gross addition declined 55% and 26%, respectively, compared to the same periods in 2020. These declines were due to higher increases in wireless gross additions in Bolivia as mentioned above. For the three months ended September 30, 2021, there was also a decline in handset sales in New Zealand which contributed to the decline in equipment subsidy. Blended Wireless Churn Generally, prepaid churn rates are higher than postpaid churn rates. Prepaid churn rates have typically increased in New Zealand and Bolivia during times of intensive promotional activity as well as periods associated with high-volume consumer shopping, such as major events, holidays and tourism in New Zealand. There is generally less seasonality with postpaid churn rates, as postpaid churn is mostly a result of service contract expirations, equipment purchased on an installment payment basis being fully paid off and new device or service launches. Blended wireless churn increased 3.7 percentage points and 1.5 percentage points for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. These increases were primarily due to increases in prepaid wireless churn in Bolivia. Bolivia prepaid wireless churn increased by 9.3 percentage points and 3.3 percentage points for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily as a result of restrictions mandated by the Bolivian government in response to COVID-19 in 2020. Further, due to the nature of Bolivian prepaid subscriber acquisitions, there is typically a higher level of early churn from new customers. The lower sales activity in the second quarter of 2020 resulted in a decrease in churn and disconnections during the third quarter of 2020. Additionally, there were a significant number of reactivations in the third quarter of 2020 related to prepaid disconnections processed in the second quarter of 2020. Capital Expenditures Capital expenditures include costs associated with the acquisition and placement into service of property and equipment. The wireless communication industry requires significant on-going investments, including investment in new technologies and the expansion of capacity and geographical reach. Capital expenditures have a material impact on the Company's cash flows; therefore, such investments require focus on planning, funding and management. Capital expenditures represent purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and finance lease arrangements. Expenditures related to the acquisition of spectrum licenses, if any, are not included in capital expenditures amounts. The Company believes that this methodology of reporting best reflects its cost of capital expenditures in a given period and is a simpler measure for comparing periods. For the three and nine months ended September 30, 2021, compared to the same periods in 2020, capital intensity increased 6.2 percentage points and 3.5 percentage points, respectively, mainly attributable to 5G network investments in New Zealand and timing of expenditures as 2020 was impacted by the deferral of capital project spending in response to the COVID-19 pandemic. 10 % (1)Beginning with the third quarter of 2021, we replaced "Wireline" with "Fixed broadband" and reclassified fixed LTE revenues from Wireless service revenues to Fixed broadband service revenues. Consolidated Wireless Service Revenues Wireless service revenues increased $2.3 million, or 2%, and $15.0 million, or 5%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, wireless service revenues declined $1.7 million, or 2%, and $7.6 million, or 2%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, as declines in Bolivia more than offset increases in New Zealand. The declines in Bolivia were due to declines in both postpaid and prepaid revenues as a result of the COVID-19 pandemic and the 10% decline in its postpaid subscriber base. These declines in Bolivia were partially offset by increased postpaid wireless service revenues in New Zealand driven by the larger postpaid subscriber base, particularly due to business subscriber growth. For the nine months ended September 30, 2021, there was also an increase in prepaid service revenues in New Zealand mainly due to an increase in prepaid ARPU. Consolidated Fixed Broadband Service Revenues Fixed broadband service revenues increased $5.4 million, or 24%, and $22.1 million, or 36%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, fixed broadband service revenues increased $4.1 million, or 17%, and $15.2 million, or 22%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to the 19% growth in the fixed broadband subscriber base and increases in residential fixed broadband ARPU in both New Zealand and Bolivia. Consolidated Equipment Sales Equipment sales declined $4.4 million, or 16%, and increased $5.5 million, or 8%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, equipment sales declined $5.9 million, or 20%, and $2.5 million, or 3%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. The decline for the three months ended September 30, 2021, compared to the same period in 2020, was primarily due to a decline in New Zealand driven by societal restrictions in effect in the third quarter of 2021 related to the COVID-19 pandemic that resulted in a decline in retail activity and lower equipment sales. For the nine months ended September 30, 2021, compared to the same period in 2020, the decline was mainly due to a decrease in the number of handsets sold in Bolivia during the period. 11 Consolidated Cost of Service Cost of service increased $6.2 million, or 12%, and $14.3 million, or 10%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, cost of service increased $4.3 million, or 8%, and $3.6 million, or 2%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, due to increases in New Zealand, partially offset by declines in Bolivia. Increases in New Zealand were primarily due to increases in transmission expense associated with the growth of the fixed broadband subscriber base. Declines in Bolivia were primarily due to a decline in interconnection costs as a result of a lower volume of voice traffic terminating outside of NuevaTel's network. Consolidated Cost of Equipment Sales Cost of equipment sales declined $5.5 million, or 18%, and increased $6.2 million, or 8%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, cost of equipment sales declined $7.1 million, or 22%, and $2.2 million, or 3%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. The decline for the three months ended September 30, 2021, compared to the same period in 2020, was due to declines in both New Zealand and Bolivia. In New Zealand, this decline was primarily driven by societal restrictions related to the COVID-19 pandemic in effect in the third quarter of 2021 that resulted in a decline in retail activity and lower equipment sales. In Bolivia, declines for the three and nine months ended September 30, 2021, compared to the same periods in 2020, were due to declines in the volume of handsets sold. The decline excluding the impact of foreign currency for the nine months ended September 30, 2021 compared to the same period in 2020 was due to the decline in Bolivia, partially offset by an increase in New Zealand mainly attributable to longer periods of societal restrictions related to the COVID-19 pandemic in 2020 as compared to 2021. Consolidated Sales and Marketing Sales and marketing increased $3.0 million, or 15%, and $7.7 million, or 13%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, sales and marketing increased $2.2 million, or 11%, and $3.4 million, or 5%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to increases in commissions expense in New Zealand. For the nine months ended September 30, 2021, the increase in New Zealand was partially offset by a decline in commissions expense in Bolivia reflecting lower sales and revenue activities in recent periods. Consolidated General and Administrative General and administrative costs increased $2.4 million, or 9%, and $5.0 million, or 6%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, general and administrative costs increased $1.5 million, or 5%, and were flat for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. For the three months ended September 30, 2021, compared to the same period in 2020, the increase in New Zealand was partially offset by a decline in Bolivia. For the nine months ended September 30, 2021, compared to the same period in 2020, the decline in Bolivia more than offset the increase in New Zealand. Declines in general and administrative costs in Bolivia were primarily due to declines in bad debt expense. In addition, there were declines in expenses in Bolivia attributable to cost controls implemented in response to the COVID-19 pandemic. The increases in New Zealand were primarily due to increases in legal, audit and consulting costs, and office rent expense. In addition, in the second quarter of 2021 there was a nonrecurring increase in salaries and wages expense in New Zealand of $1.8 million, the impact of which was removed from Segment Adjusted EBITDA due to the nonrecurring nature of the expense. Further, in the first quarter of 2020 there was a $1.8 million one-time benefit associated with 2degrees' improvement in collections of EIP receivables previously sold, and in the second quarter of 2020, $1.7 million of equity-based compensation expense was recorded in New Zealand associated with the extension of the expiration of certain 2degrees' service-based share options. 12 Consolidated Depreciation, Amortization and Accretion Depreciation, amortization and accretion increased $0.3 million, or 1%, and $5.9 million, or 7%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, depreciation, amortization, and accretion declined $0.7 million, or 2%, and was flat for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. The decline for the three months ended September 30, 2021, compared to the same period in 2020, was primarily due to a decline in Bolivia, partially offset by an increase in New Zealand. For the nine months ended September 30, 2021, compared to the same period in 2020, an increase in New Zealand was partially offset by a decline in Bolivia. The declines in Bolivia were primarily due to a lower net asset base being depreciated. The increases in New Zealand were mainly related to wireless network assets previously placed in service and accelerated depreciation expense on certain existing assets associated with the onset of 5G enabled infrastructure construction. Consolidated Impairment of Long-Lived Assets Impairment of long-lived assets of $113.8 million for both the three and nine months ended September 30, 2021 relates to the impairment charge for Bolivia recorded during the three months ended September 30, 2021. For additional information, see Note 1 - Description of Business, Basis of Presentation and Summary of Significant Accounting Policies to the Condensed Consolidated Financial Statements. Consolidated Loss (Gain) on Disposal of Assets and Sale-Leaseback Transaction Loss on disposal of assets and sale-leaseback transaction increased $5.3 million and $3.4 million for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to gains recognized for the closings of the tower sale-leaseback transaction in the third quarter of 2020. For the nine months ended September 30, 2021, the increase was partially offset by disposal and abandonment charges of approximately $1.4 million recorded during the second quarter of 2020 for certain construction in progress due in part to a reassessment of capital expenditures needs as 2degrees undertook certain cost reduction measures in response to the COVID-19 pandemic. Consolidated Other Expenses (Income) Consolidated Interest Expense Interest expense increased $2.1 million, or 18%, and $6.1 million, or 18%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily related to the issuance by Trilogy International South Pacific LLC ("TISP"), a subsidiary of Trilogy LLC, in October 2020 of $50 million in aggregate principal amount of senior secured notes at an interest rate of 10.0% per annum (the "TISP 10.0% Notes"). See Note 7 - Debt to the Condensed Consolidated Financial Statements for further information. Consolidated Change in Fair Value of Warrant Liability The change in the fair value of warrant liability of $0.1 million and $0.2 million for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, was due to changes in the trading price of the warrants. 13 Consolidated Debt Issuance and Modification Costs Debt issuance and modification costs increased $7.0 million for the nine months period ended September 30, 2021 compared to the same period in 2020. The increase was due to the consummation in June 2021 of the exchange of Trilogy LLC's 8.875% senior secured notes due in 2022 (the "Trilogy LLC 2022 Notes") for 8.875% senior secured notes of TISP and TISP Finance, Inc. ("TISP Finance") due in 2023 (the "TISP 8.875% Notes"). See Note 7 - Debt to the Condensed Consolidated Financial Statements for further information. There were no debt issuance and modification costs for the three months ended September 30, 2021 and 2020. Consolidated Other, Net Other, net expense declined $2.4 million and $7.6 million for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to changes in the fair value of interest rate swaps in New Zealand of $2.2 million and $7.1 million, respectively. Consolidated Income Taxes Income Tax Expense Income tax expense declined $16.7 million and $12.4 million for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to the valuation allowance recorded against the Company's deferred tax assets in Bolivia in the third quarter of 2020. There was also the benefit recorded in the third quarter of 2021 for the impact of the impairment charge on the Company's deferred tax liability in respect of NuevaTel's unrepatriated earnings. Business Segment Analysis The Company's two reporting segments (New Zealand (2degrees) and Bolivia (NuevaTel)) provide a variety of wireless voice and data communications services, including local, international long distance and roaming services for both subscribers and international visitors roaming on the Company's networks. Services are provided to subscribers on both a postpaid and prepaid basis. In Bolivia, fixed public telephony services are also offered via wireless backhaul connections. In New Zealand, fixed broadband communications services, or fixed broadband services, have been offered since May 2015. In Bolivia, fixed LTE services, or fixed broadband services, have been offered since late 2019. The Company's networks support several digital technologies: GSM (NuevaTel only), 3G and 4G LTE. In New Zealand, the Company launched 4G LTE services in 2014 and the Company operates its network through a total of 1,823 cell sites as of September 30, 2021. Of this total, the Company had 1,314 sites on-air that are directly operated by 2degrees, of which 1,276 were 4G LTE. In November 2019, 2degrees entered into a Radio Access Network ("RAN") sharing agreement with a New Zealand telecommunications provider that supplies 2degrees with managed capacity service for a specified number of network sites under an indefeasible right to use arrangement. As of September 30, 2021, the Company had 238 sites providing additional network coverage through this RAN sharing agreement. The three national mobile providers in New Zealand, 2degrees (through a wholly owned subsidiary), Vodafone New Zealand Limited ("Vodafone") and Spark New Zealand Trading Limited ("Spark"), formed a joint venture, entitled the Rural Connectivity Group ("RCG"), to deliver a shared wireless broadband/mobile solution in rural areas identified by the government. As of September 30, 2021, the Company had 271 sites providing additional network coverage through this joint venture. In Bolivia, the Company had 1,355 cell sites on air, of which 1,237 were 4G LTE sites as of September 30, 2021. 14 (2)Source: Management estimate based on the most currently available information. Following its launch in 2009 as New Zealand's third wireless entrant, 2degrees quickly gained market share as an innovative challenger committed to providing great value and excellent customer service, thereby beginning its mission of 'Fighting for Fair'. Based on the most currently available information, management estimates that 2degrees has a market share of wireless subscribers of 24%. The Company believes there is continued opportunity for significant growth in the estimated $5 billion NZD New Zealand telecommunications market. Further, 5G creates further opportunities for 2degrees as 5G enables carriers to offer new and even more data-intensive wireless services and applications that can be utilized by both consumer and business customers. The Bolivian market also consists of three mobile operators. Based on the most currently available information, management estimates that NuevaTel has a market share of wireless subscribers of 14%. Over the last decade, a growing middle class has emerged in Bolivia, but LTE adoption and broadband penetration remain low compared to other Latin American markets, indicating the potential for further growth. With its broad urban LTE coverage, NuevaTel believes its innovative datacentric and customer friendly product offerings, as well as its late 2019 launch of fixed broadband services, will stimulate data usage and increase revenue diversity. New Zealand (2degrees) 2degrees launched commercial service in 2009. As of September 30, 2021, Company-controlled entities owned 73.2% of 2degrees with the remaining interests (26.8%) substantially owned by Tesbrit B.V., a Dutch investment company. Overview Prior to 2degrees' entry, the New Zealand wireless communications market was a duopoly, and the incumbent operators, Vodafone and Spark, were able to set relatively high prices, which resulted in low wireless usage by consumers. Additionally, in 2009 New Zealand was one of the most expensive mobile markets in the Organization for Economic Co-operation and Development ("OECD") countries: mobile revenue in New Zealand in 2009 was only 31% of total New Zealand telecommunications industry revenue, compared to 42% for the rest of the OECD countries. These two factors led the Company to believe that New Zealand presented a significant opportunity for a third competitor to enter the market successfully. Consequently, 2degrees launched in the New Zealand wireless market through innovative pricing, a customer-centric focus and differentiated brand positioning. 2degrees introduced a novel, low-cost, prepaid mobile product that cut the incumbents' prices of prepaid voice calls and text messages in half and rapidly gained market share. After expanding the coverage of its network, 2degrees began to leverage its position as a high value market disruptor and shifted its focus to the higher ARPU postpaid consumer market. 2degrees launched postpaid service in 2010 and now has a 16% postpaid market share based on the most currently available information. 2degrees expanded its service offering to include fixed broadband. This allows 2degrees to provide both mobile and broadband services to subscribers via bundled products. The sale of bundled services in New Zealand facilitates a higher rate of customer retention and enhances the ability of 2degrees to capture a larger share of household communications revenues and business customers. Fixed broadband services also support increased business-to-business penetration. 2degrees believes it has a reputation for fairness in the New Zealand market that it seeks to reinforce by combining competitive pricing, innovative products and excellent customer service. 15 Services; Distribution; Network; 2degrees Spectrum Holdings For a discussion of these topics, please refer to TIP Inc.'s MD&A for the year ended December 31, 2020. Governmental Regulation New Zealand's Minister for the Digital Economy and Communications, supported by the Ministry of Business Innovation and Employment ("MBIE"), advises the government on policy for telecommunications and spectrum issues. The MBIE administers the allocation of radio frequency management rights. 2degrees offers service pursuant to management rights in the 700 MHz band, the 900 MHz band, the 1800 MHz band and the 2100 MHz band. 2degrees' rights to use 700 MHz spectrum expire in 2031. 2degrees' rights to use 900 MHz spectrum also expire in 2031, subject to 2degrees making a payment for a portion of the 900 MHz spectrum to the New Zealand government in 2022 of an estimated $15 million NZD. 2degrees' renewal rights to use 1800 MHz and 2100 MHz spectrum have an initial term of two years (until 2023). 2degrees has received offers for additional 18-year terms for this spectrum, which are open for acceptance until November 2022 and will not be accepted until closer to that time. The cost of the 18-year term spectrum may be paid in four annual installments beginning January 2023. The total cost for renewing the 1800 MHz and 2100 MHz rights from 2021 to 2041 will be approximately $54 million NZD, excluding interest, of which $8.6 million NZD was paid in the first quarter of 2021. The MBIE is also preparing for the introduction of 5G in New Zealand. 2degrees has accepted a short-term management rights offer to use 60 MHz of 3500 MHz spectrum through October 31, 2022 at a cost of $0.8 million NZD. There is no right of renewal for this short-term allocation, which is expected to be followed by an auction of a larger allocation of 3500 MHz spectrum for long-term 5G use commencing November 2022; the government has not yet confirmed the timing of this auction. The MBIE is expected to consult with the industry on this auction in the upcoming months of 2021, with an auction expected to occur in the first half of 2022. While the price of New Zealand 5G spectrum is not yet known, these costs are not expected to be commensurate with 5G spectrum prices that North American telecommunications operators have experienced. The MBIE is also considering technical matters related to this allocation and other potential 5G bands for allocation in the future, including mmWave spectrum (above 24 GHz) and 600 MHz spectrum. The politically independent Commerce Commission of New Zealand (the "Commerce Commission") is responsible for implementation of New Zealand's Telecommunications Act 2001, which provides for regulation of the telecommunications sector. The Commerce Commission includes a Telecommunications Commissioner, who oversees a team that monitors the telecommunications marketplace. For specific services that are regulated, the Commerce Commission is authorized to set both price and non-price terms for services and to establish enforcement arrangements. The Commerce Commission's responsibilities include wholesale regulation of fixed line access services that 2degrees offers, including unbundled bitstream access, as well as the regulation of wholesale mobile services such as colocation and national roaming, and mobile termination access services. The Commerce Commission is also responsible for implementing the regulatory framework introduced under the New Zealand Telecommunications Act (the "Telecommunications Act") in 2018 for fiber services, which 2degrees uses in providing fixed broadband and mobile communications services to its customers. This regulatory framework takes a regulated "utility style" building blocks approach to the pricing of fiber services, representing a shift from the previous "Total Service Long Run Incremental Cost" pricing approach that has been applied to copper services. Beginning January 2022, price-regulated fiber providers will be subject to an overall revenue cap for regulated services and must provide certain services at "anchor" prices. All fiber providers will be subject to information disclosure obligations. Fiber unbundling, which providers have been required to offer since January 2020, is subject to equivalence and non-discrimination obligations. Following amendments to the Telecommunications Act in 2018, the Commerce Commission assumed oversight of telecommunications retail service quality issues, which is now a priority for the Commerce Commission. The Commerce Commission's responsibilities with respect to retail service quality include monitoring the level of quality delivered to retail customers by providers, ensuring that consumers have access to data that enables informed purchase decisions, reviewing industry standards governing retail service quality, providing industry guidelines on retail service quality matters, and establishing mandatory retail service quality standards. The Commerce Commission is also responsible for the implementation of an industry Emergency 111 Contact Code and is required to review the industry's dispute resolution scheme at least once every three years. The Commerce Commission is currently working with industry stakeholders on a number of these issues. 16 The New Zealand government has taken an active role in funding the deployment of fiber (the "Ultra-Fast Broadband Initiative") and rural infrastructure (the Rural Broadband Initiative or "RBI" and the "RBI2" extension, which also included a Mobile Black Spots Fund) to enhance citizens' access to higher speed broadband services. The Ultra-Fast Broadband Initiative is expected to reach 87% of the population by December 2022. As described above, the RCG was formed by a wholly owned subsidiary of 2degrees, Vodafone and Spark to deliver a shared wireless broadband/mobile solution in rural areas in response to the New Zealand government's proposed RBI2 project. In August 2017, the New Zealand government and the RCG signed an agreement whereby the government initially committed to contribute $150 million NZD to the RCG for the RBI2 project on the condition that each RCG shareholder, including 2degrees, invest $20 million NZD over several years and contribute to the operating costs of the RBI2 network. In December 2018, the government expanded the RBI2 project funding by an additional $145 million NZD, of which up to $115 million NZD was allocated to the RCG. In 2020, the government announced further funding increases for improved rural capacity and connectivity in response to COVID-19 developments and 2degrees was awarded a contract directly with the New Zealand government to provide capacity upgrades to its existing infrastructure and new coverage areas in order to support a greater number of rural New Zealand end users. 17 (1)Segment Adjusted EBITDA Margin is calculated as Segment Adjusted EBITDA divided by service revenues. (2)Beginning with the third quarter of 2021, we replaced "Wireline" with "Fixed broadband" to describe the revenues and subscribers associated with the Company's fixed broadband products in New Zealand. (3)Represents purchases of property and equipment excluding purchases of property and equipment acquired through vendor-backed financing and finance lease arrangements. Expenditures related to the acquisition of spectrum licenses, if any, are not included in capital expenditures amounts. Three and Nine Months Ended September 30, 2021 Compared to Same Periods in 2020 Service revenues increased $12.4 million, or 14%, and $52.6 million, or 20%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, service revenues increased $7.1 million, or 7%, and $22.6 million, or 8%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020, primarily due to growth in fixed broadband revenues driven by the larger fixed broadband subscriber base and increases in residential fixed broadband ARPU. There were also increases in postpaid wireless service revenues driven by the larger postpaid subscriber base, due mainly to growth in business subscribers. For the nine months ended September 30, 2021, compared to the same period in 2020, there was an increase in prepaid wireless service revenues driven by an increase in prepaid ARPU. 18 Total revenues increased $9.7 million, or 8%, and $61.2 million, or 19%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, total revenues increased $2.8 million, or 2%, and $23.2 million, or 6%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. These increases were attributable to the increases in service revenues mentioned above. Equipment sales declined $2.8 million, or 11%, and increased $8.6 million, or 13%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. Excluding the impact of foreign currency, equipment sales declined $4.3 million, or 16%, and increased $0.7 million, or 1%, for the three and nine months ended September 30, 2021, respectively, compared to the same periods in 2020. For the three months ended September 30, 2021, compared to the same period in 2020, the decline was primarily driven by societal restrictions in effect in the third quarter of 2021 related to the COVID-19 pandemic that resulted in a decline in retail activity and lower equipment sales. For the nine months ended September 30, 2021, compared to the same period in 2020, the increase was mainly attributable to longer periods of societal restrictions related to the COVID-19 pandemic in 2020. Operating expenses increased $10.6 million, or 10%, and $54.2 million, or 18%, for the three and nine month

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Wireless Patents

Wireless has filed 247 patents.

The 3 most popular patent topics include:

  • Wireless networking
  • Wireless energy transfer
  • Electrical engineering
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10/26/2021

Wireless networking, Radio resource management, Network protocols, Channel access methods, Error detection and correction

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Wireless networking, Radio resource management, Network protocols, Channel access methods, Error detection and correction

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