Anterix Inc.

Good afternoon, ladies and gentlemen, and welcome to the Antarex second quarter update conference call. At this time, all participants have been placed on a listen-only mode, and we will open the floor for your questions and comments after the presentation. It is now my pleasure to turn the floor over to your host, Natasha Vecchiarelli. Ma'am, the floor is yours.

Good afternoon, everyone, and thank you for joining us. With me today are Brian McCauley, our chairman, Morgan O'Brien, our CEO, Rob Schwartz, president and COO, and Tim Gray, our CFO. Before we begin, I'd like to highlight that during our call, we will present both GAAP and non-GAAP financial measures. A reconciliation of non-GAAP to GAAP measures is included in today's 8K, which can be found on our investor relations page. Please also note that we may make reference to forward-looking statements, and our actual results could differ materially from those implied. Information regarding the risk factors that could cause such differences can be found in our public filings, including our most recently filed Form 10-Q for the quarter ended September 30th, 2019. With that, I'd like to turn the call over to Morgan O'Brien.

Morgan O' Thank you, Natasha. Thank you, everybody, for joining us this afternoon. It's been five years since Centaurus proposed to the FCC a modification of the rules at 900 megahertz Thank you very much. granting a request by Interix that the licensing freeze be lifted to permit incumbents to file applications to relocate out of the proposed broadband segment. This does not prejudge a rulemaking, of course, but to us it suggests that the staff is actively considering a broadband allocation as proposed. In addition, the record in the proceeding reflects a number of recent meetings with the Bureau staff on issues that we interpret as underlying a favorable decision on the merits and focus on the details of how that process might work. As reflected in a series of ex parte filings made by Enterix, there have been discussions with the FCC on a wide range of technical and operational issues around repurposing the brand. Our experience suggests to us that the staff is getting ready to make final recommendations in the proceeding to the commissioners. and we're optimistic that the outcome will be consistent with the broadband allocation as we have thought. As we continue the regulatory process, Interix has been active on a number of other fronts. These the most important are the steps necessary to be ready immediately upon a final order to clear spectrum and make it available for broadband use. After the recent capital raise, Interix prioritized the hiring of staff for the retuning process. Over the last few months, we've built the team we anticipate needing for the first phase of retuning. An enhanced staff with a combined 150 years of retuning experience is now on the job implementing our plans. Also, we're pleased that EWA, our partner in filing the original petition, recently announced an agreement with Enterix to play an integral role in the retuning process. As our investors know, there are approximately 400 incumbent licensees who will need to be retuned or otherwise relocated to clear the 6 MHz broadband segment that's proposed. A large number of these incumbents are members of EWA and have long established relationships with the staff at EWA for frequency coordination. So it makes sense that EWA play an introductory role in the retuning process to lay out the FCC decision when it's published and to minimize disruption to operations. and to facilitate the retuning. Many incumbents are likely to prefer a simple retune of channels from one part of 900 megahertz to another, something which their existing equipment can accommodate easily. Others may use the opportunity to see if another band of spectrum might make more sense, or they may choose to request from Interix and offer to purchase their license. We believe EWA is the perfect neutral arbiter to make these discussions productive, and to speed up the process overall. Many other actions are underway to reduce the size of the retuning task and to give Enterix a stronger spectrum position. Recently, three spectrum transactions have been contracted. The proposed rules require all 20 MTA licenses to be included in any application for broadband, so we've prioritized acquiring MTA agreements. Of only 11 MTA licenses that are not already in our name, we either have signed agreements or are in active discussions with seven. Our experience so far, although these are still early days, would suggest that the process of enhancing our spectrum position will fall pretty much in line with earlier expectations. In a variety of other ways, the team at Enterix is continuing to prepare for our future as a provider of broadband spectrum for private enterprise users. Our thinking has not varied from putting emphasis on the electric utility industry. As we have laid out in a lot of detail in the records in this proceeding and to our investors, the pace of grid modernization and the challenges entailed seem to create a compelling opportunity for wide-scale adoption of LTE broadband technology. And while we may not provide the only way of meeting the challenges, we think our spectrum at 900 MHz provides the best and most economical way of doing so. It's worth noting, however, the utilities are not alone in appreciating the value of wireless broadband. We're starting to see other potential users of the spectrum showing an interest in the prospect that 900 MHz broadband spectrum will become available for private system use. I'd like to conclude my comments by saying that We recognize that this long process, the regulatory scrutiny and record building, is taxing on the patience of investors. We're lucky to have investors who understand just how much is involved in being successful in this kind of undertaking. There is a definite upside in the passage of time, however, and we're seeing that every day as more and more attention is being paid to the opportunities for private broadband. While LTE was definitely in use back when we filed the petitions, There have been literally billions of devices deployed around the world since. While the advantages of LTE for latency, security, and throughput were being discussed by enterprises back then, the passage of time has brought much greater understanding of its value. Being at Interix throughout this process has given us a chance to appreciate the complexity of decision-making at large private enterprises and their need to proceed with caution. Now, however, we can feel every day the momentum that is building for bringing this amazing new technology into use for the critical infrastructure on which modern life is built. We're understandably anxious to see the regulatory process run its course and put our spectrum to use. I'll now turn it over to Rob.