WEBVTT 00:00:00.000 --> 00:00:03.500 Demystifying True Connect, the MVNO powering 00:00:03.500 --> 00:00:06.320 the Lifeline program and free government phones. 00:00:06.740 --> 00:00:08.960 Dive into the architecture of affordable wireless 00:00:08.960 --> 00:00:11.640 connectivity with this comprehensive deep dive 00:00:11.640 --> 00:00:15.199 on True Connect. What exactly is an MVNO and 00:00:15.199 --> 00:00:17.820 how do prepaid mobile plans fit into the bigger 00:00:17.820 --> 00:00:20.910 picture of bridging the digital divide? We explore 00:00:20.910 --> 00:00:23.429 the history of True Connect, a Los Angeles -based 00:00:23.429 --> 00:00:26.089 telecom company led by Matthew and Nathan Johnson, 00:00:26.390 --> 00:00:28.769 and its pivotal role in providing free government 00:00:28.769 --> 00:00:31.530 phones and low -cost service through the FCC 00:00:31.530 --> 00:00:34.590 and USAC's Lifeline program. Whether you are 00:00:34.590 --> 00:00:36.789 curious about the evolution of portable Wi -Fi, 00:00:37.210 --> 00:00:39.310 the intricacies of telecom growth on the T -Mobile 00:00:39.310 --> 00:00:42.030 and Verizon networks, or how eligible low -income 00:00:42.030 --> 00:00:44.890 consumers stay connected via SNAP -P and Medicaid, 00:00:45.270 --> 00:00:47.590 this deep dive extracts all the essential facts 00:00:47.590 --> 00:00:49.799 you need. Join us as we unpack how companies 00:00:49.799 --> 00:00:52.539 like TruConnect operate to make 4G, LTE, and 00:00:52.539 --> 00:00:55.780 5G accessible to everyone. Welcome to today's 00:00:55.780 --> 00:00:58.579 Deep Dive. We're looking at a remarkably dense 00:00:58.579 --> 00:01:01.159 Wikipedia article today, one that really fundamentally 00:01:01.159 --> 00:01:03.320 deconstructs the architecture of affordable wireless 00:01:03.320 --> 00:01:05.799 connectivity in the US. It really does. And before 00:01:05.799 --> 00:01:07.739 we even hit record, we are actually debating 00:01:07.739 --> 00:01:10.599 the Apple Podcast metadata for this very deep 00:01:10.599 --> 00:01:12.760 dive. Right, the title and the description. Exactly. 00:01:12.819 --> 00:01:15.319 We're optimizing it with these highly searchable 00:01:15.420 --> 00:01:19.819 SEO terms. Things like MVNO, the Lifeline program, 00:01:20.180 --> 00:01:23.280 free government phones, True Connect. Which sounds 00:01:23.280 --> 00:01:26.019 incredibly niche at first glance. It does. But 00:01:26.019 --> 00:01:29.200 we did that because those specific terms, they 00:01:29.200 --> 00:01:31.540 represent this multi -billion dollar intersection. 00:01:31.560 --> 00:01:33.659 What a massive intersection. Right. Between private 00:01:33.659 --> 00:01:36.120 telecommunications, federal assistance programs, 00:01:36.620 --> 00:01:39.519 and physical network infrastructure. So our mission 00:01:39.519 --> 00:01:42.000 today, for you listening, is to really dissect 00:01:42.000 --> 00:01:44.739 how a single company, True Connect, engineered 00:01:44.739 --> 00:01:47.799 its regulatory and network apparatus to capitalize 00:01:47.799 --> 00:01:50.439 on that exact intersection. It is a fascinating 00:01:50.439 --> 00:01:53.920 case study in corporate strategy, because when 00:01:53.920 --> 00:01:56.200 most people analyze the telecommunications industry, 00:01:56.599 --> 00:01:59.879 they fixate on the massive mobile network operators. 00:01:59.939 --> 00:02:02.819 The big guys. Right, the MNOs, Verizon, AT &T, 00:02:02.939 --> 00:02:04.920 T -Mobile. People look at the billions of dollars 00:02:04.920 --> 00:02:06.819 spent on spectrum auctions and physical cell 00:02:06.819 --> 00:02:08.830 towers. The giant. Metal structures everywhere. 00:02:09.349 --> 00:02:11.569 Exactly. But the source text we are analyzing 00:02:11.569 --> 00:02:14.210 today forces us to look at the secondary market. 00:02:14.729 --> 00:02:17.770 It details how a company can completely bypass 00:02:17.770 --> 00:02:20.830 that physical infrastructure race, operate as 00:02:20.830 --> 00:02:23.930 a mobile virtual network operator, and still 00:02:23.930 --> 00:02:26.490 scale aggressively. And they scale by targeting 00:02:26.490 --> 00:02:29.500 a demographic that those tier one operators Historically 00:02:29.500 --> 00:02:32.539 sidelined right mostly due to high customer acquisition 00:02:32.539 --> 00:02:36.319 costs right and the timeline in our source Highlights 00:02:36.319 --> 00:02:38.740 this the central mystery that we need to figure 00:02:38.740 --> 00:02:41.039 out today You have this company that starts with 00:02:41.039 --> 00:02:44.379 a relatively quiet acquisition in 2006 They don't 00:02:44.379 --> 00:02:46.020 even officially incorporate the true connect 00:02:46.020 --> 00:02:49.319 brand until 2011 a five -year gap a huge gap 00:02:49.319 --> 00:02:53.599 yet by April 29 2015 they are officially recognized 00:02:53.599 --> 00:02:55.979 as one of the fastest growing wireless companies 00:02:55.979 --> 00:02:59.240 in the entire United States a staggering It is. 00:02:59.419 --> 00:03:01.759 You don't scale a telecom company that rapidly 00:03:01.759 --> 00:03:04.280 in a market dominated by corporate titans without 00:03:04.280 --> 00:03:06.960 a very specific, highly optimized mechanism. 00:03:07.099 --> 00:03:09.219 You certainly don't. And that mechanism is entirely 00:03:09.219 --> 00:03:11.439 reliant on understanding the financial arbitrage 00:03:11.439 --> 00:03:14.099 at the heart of the MVNO model. Okay, let's unpack 00:03:14.099 --> 00:03:18.520 this. What exactly is a mobile virtual network 00:03:18.520 --> 00:03:22.659 operator? The text states explicitly that Tregneck 00:03:22.659 --> 00:03:26.030 operates on the T -Mobile and Verizon networks. 00:03:26.169 --> 00:03:28.770 Right. So for an MVNO, the strategic advantage 00:03:28.770 --> 00:03:31.289 is purely about capital expenditure reduction. 00:03:31.729 --> 00:03:34.370 CapEx. So they aren't pouring concrete. Not a 00:03:34.370 --> 00:03:37.289 single yard. They are not negotiating land leases 00:03:37.289 --> 00:03:40.009 for tower sites, and they are definitely not 00:03:40.009 --> 00:03:42.650 deploying sleets of engineers to repair fiber 00:03:42.650 --> 00:03:44.710 optic backhaul after a hurricane. They just rent 00:03:44.710 --> 00:03:47.090 the space. Exactly. They are purchasing bulk 00:03:47.090 --> 00:03:50.030 network access at wholesale rates and repackaging 00:03:50.030 --> 00:03:51.909 it. But let me challenge that model for a second. 00:03:52.039 --> 00:03:55.060 OK. If you are entirely reliant on leasing capacity 00:03:55.060 --> 00:03:58.740 from Verizon and T -Mobile, your margins on data 00:03:58.740 --> 00:04:01.280 delivery have to be, well, razor thin. They are 00:04:01.280 --> 00:04:03.199 very tight. Right. Because you are basically 00:04:03.199 --> 00:04:05.580 a middleman in a commodity market. Right. M &Os 00:04:05.580 --> 00:04:07.560 control the supply. They control the wholesale 00:04:07.560 --> 00:04:10.020 pricing. Yeah. And they can technically throttle 00:04:10.020 --> 00:04:12.080 your users if the network gets congested, right? 00:04:12.219 --> 00:04:14.520 They can, yes. Network deprioritization is a 00:04:14.520 --> 00:04:17.990 real factor. So how does an MVNO survive? let 00:04:17.990 --> 00:04:19.889 alone become one of the fastest growing companies 00:04:19.889 --> 00:04:22.170 in the country when they have so little control 00:04:22.170 --> 00:04:25.149 over the core product. It is a totally valid 00:04:25.149 --> 00:04:28.829 skepticism, and the answer lies in where they 00:04:28.829 --> 00:04:31.269 allocate the capital they saved by not building 00:04:31.269 --> 00:04:33.769 those towers. The money they saved by not pouring 00:04:33.769 --> 00:04:37.470 concrete. Precisely. Because their CapEx is virtually 00:04:37.470 --> 00:04:40.529 zero compared to a major network operator, they 00:04:40.529 --> 00:04:42.889 can funnel massive amounts of operating capital 00:04:42.889 --> 00:04:45.709 into customer acquisition and regulatory compliance. 00:04:45.970 --> 00:04:48.529 Oh, I see. Think about the traditional MNOs. 00:04:48.529 --> 00:04:51.350 They are locked in this brutal, expensive marketing 00:04:51.350 --> 00:04:54.810 war to steal post -paid consumers from each other. 00:04:54.889 --> 00:04:57.689 The Super Bowl ads. Exactly. They spend hundreds 00:04:57.689 --> 00:05:00.329 of dollars just to acquire a single user on a 00:05:00.329 --> 00:05:03.149 family plan. Right. Truck Connect bypasses that 00:05:03.149 --> 00:05:06.230 bloodbath entirely. By integrating with government 00:05:06.230 --> 00:05:08.550 subsidy programs, their marketing funnel and 00:05:08.550 --> 00:05:10.870 their customer acquisition costs are fundamentally 00:05:10.870 --> 00:05:14.189 altered. They aren't selling a $90 a month luxury 00:05:14.189 --> 00:05:16.209 plan. They're delivering a highly subsidized 00:05:16.209 --> 00:05:18.589 utility. That actually makes the dual network 00:05:18.589 --> 00:05:21.050 strategy mentioned in the text particularly interesting. 00:05:21.790 --> 00:05:24.189 Operating on both T -Mobile and Verizon isn't 00:05:24.189 --> 00:05:26.870 just some minor operational detail. Not at all. 00:05:27.069 --> 00:05:29.420 From a strategic standpoint, that gives them 00:05:29.420 --> 00:05:32.279 incredible redundancy and geographic flexibility. 00:05:32.879 --> 00:05:35.120 Like if a potential customer lives in a rural 00:05:35.120 --> 00:05:37.959 area where T -Mobile's mid -band spectrum hasn't 00:05:37.959 --> 00:05:40.199 quite penetrated yet. But they can just seamlessly 00:05:40.199 --> 00:05:43.300 provision that user on the Verizon network. Right, 00:05:43.300 --> 00:05:45.800 which historically has a much wider rural footprint. 00:05:46.319 --> 00:05:48.680 They get to offer this synthesized coverage map 00:05:48.680 --> 00:05:51.339 that rivals the biggest players without having 00:05:51.339 --> 00:05:54.199 laid a single inch of physical cable. It's incredibly 00:05:54.199 --> 00:05:55.939 efficient. Furthermore, if you look at their 00:05:55.939 --> 00:05:58.040 product suite as listed in the source phones, 00:05:58.279 --> 00:06:00.160 mobile hotspots, and wireless plans, including 00:06:00.160 --> 00:06:05.180 talk, text, 4G LTE, and 5G mobile data. The 5G 00:06:05.180 --> 00:06:07.300 part really stood out to me. It should. The inclusion 00:06:07.300 --> 00:06:10.100 of 5G is a critical data point here. Historically, 00:06:10.160 --> 00:06:12.740 there was a stark technological segregation in 00:06:12.740 --> 00:06:15.620 telecom. You got what you paid for. Right. Prepaid 00:06:15.620 --> 00:06:19.740 MVNO users were relegated to legacy 3G networks 00:06:19.740 --> 00:06:23.120 or heavily throttled 4G connections. The premium 00:06:23.120 --> 00:06:25.300 speeds were strictly reserved for the postpaid 00:06:25.300 --> 00:06:27.399 customers paying a premium. I was actually going 00:06:27.399 --> 00:06:30.819 to bring that up. Seeing 5G included in a subsidized 00:06:30.819 --> 00:06:34.540 prepaid tier seems counterintuitive to the traditional 00:06:34.540 --> 00:06:36.839 telecom upselling model. It does seem strange 00:06:36.839 --> 00:06:39.300 at first. Like, why would Verizon or T -Mobile? 00:06:39.470 --> 00:06:42.449 Allow an MVNO to offer 5G access to a wholesale 00:06:42.449 --> 00:06:44.970 customer base. Doesn't that just devalue their 00:06:44.970 --> 00:06:47.589 own premium 5G plans? It seems counterintuitive 00:06:47.589 --> 00:06:49.750 until you analyze network economics and something 00:06:49.750 --> 00:06:52.389 called spectrum refarming. Spectrum refarming. 00:06:52.589 --> 00:06:54.709 OK, break that down for us. The MNOs actually 00:06:54.709 --> 00:06:57.189 want as many users as possible off their legacy 00:06:57.189 --> 00:07:00.509 4G LTE bands and onto their new 5G standalone 00:07:00.509 --> 00:07:03.120 network. Six is cheaper to run. exponentially 00:07:03.120 --> 00:07:05.899 cheaper. 5G technology is just vastly more efficient 00:07:05.899 --> 00:07:08.199 at routing data. It costs the network operator 00:07:08.199 --> 00:07:11.180 significantly less overhead to transmit a gigabyte 00:07:11.180 --> 00:07:13.959 of data over 5G than it does over 4G. Oh, wow. 00:07:14.500 --> 00:07:15.779 I didn't realize the cost difference is that 00:07:15.779 --> 00:07:19.160 stark. It's massive. So... By allowing MVNOs 00:07:19.160 --> 00:07:22.600 like TrickConnect to provision users on 5G, the 00:07:22.600 --> 00:07:25.220 tier 1 operators are actually clearing up network 00:07:25.220 --> 00:07:28.060 congestion on their older bands and operating 00:07:28.060 --> 00:07:30.379 their entire grid more efficiently. So it's a 00:07:30.379 --> 00:07:33.180 mutually beneficial technical transition just 00:07:33.180 --> 00:07:35.819 disguised as a consumer perk. Exactly. Everyone 00:07:35.819 --> 00:07:39.139 wins. The user gets faster speeds, and the network 00:07:39.139 --> 00:07:41.500 operator lowers their transmission costs. OK, 00:07:41.519 --> 00:07:43.879 so TrickConnect leverages this hyper -efficient 00:07:43.879 --> 00:07:47.040 wholesale network access. But the actual engine 00:07:47.040 --> 00:07:49.540 of their growth, according to the source, is 00:07:49.540 --> 00:07:51.759 their deep integration with the Lifeline program. 00:07:51.839 --> 00:07:54.639 Yes. And this is a federal and state funded initiative. 00:07:54.910 --> 00:07:57.949 It's overseen by the FCC and the Universal Service 00:07:57.949 --> 00:08:00.750 Administrative Company, or USAC. What's fascinating 00:08:00.750 --> 00:08:03.230 here is the heavy government oversight involved. 00:08:03.410 --> 00:08:05.509 Right, because we are talking about providing 00:08:05.509 --> 00:08:09.550 service to eligible low -income consumers, specifically 00:08:09.550 --> 00:08:11.850 noting participants in public assistance programs 00:08:11.850 --> 00:08:14.910 like SNAP and Medicaid. This is where the business 00:08:14.910 --> 00:08:17.709 model completely shifts from standard telecommunications 00:08:17.709 --> 00:08:20.649 retail into heavy, heavy regulatory compliance. 00:08:20.769 --> 00:08:23.939 Because it's government money. Exactly. Navigating 00:08:23.939 --> 00:08:27.160 USAC and the Universal Service Fund is notoriously 00:08:27.160 --> 00:08:30.079 complex. We were talking about a multi -billion 00:08:30.079 --> 00:08:32.679 dollar federal fund. The government is highly 00:08:32.679 --> 00:08:35.159 incentivized to audit providers constantly. To 00:08:35.159 --> 00:08:39.169 prevent waste, fraud, and abuse. Precisely. To 00:08:39.169 --> 00:08:41.809 operate in this space, True Connect isn't just 00:08:41.809 --> 00:08:44.889 managing SIM cards. They are operating a massive 00:08:44.889 --> 00:08:47.909 software compliance engine that has to interface 00:08:47.909 --> 00:08:50.429 securely with federal and state databases in 00:08:50.429 --> 00:08:52.950 real time. Right, because to activate a user 00:08:52.950 --> 00:08:56.250 and receive that federal subsidy... which traditionally 00:08:56.250 --> 00:08:59.850 hovers around $9 .25 per user, though the exact 00:08:59.850 --> 00:09:02.330 figures fluctuate based on tribal lands and state 00:09:02.330 --> 00:09:05.250 supplements. The MBNO has to prove that the individual 00:09:05.250 --> 00:09:08.070 is actively enrolled in Medicaid or SNMP. They 00:09:08.070 --> 00:09:10.379 have to query the national verifier system. And 00:09:10.379 --> 00:09:12.500 if that user drops off the Medicaid rolls on 00:09:12.500 --> 00:09:14.679 a Tuesday, True Connect has to know about it 00:09:14.679 --> 00:09:16.460 immediately. They have to manage that churn. 00:09:16.620 --> 00:09:18.500 Yeah, and potentially transition that user to 00:09:18.500 --> 00:09:20.460 a standard pre -bate plan without the subsidy. 00:09:21.120 --> 00:09:23.200 The logistical backend required to do that at 00:09:23.200 --> 00:09:26.240 scale across millions of potential users is just 00:09:26.240 --> 00:09:28.240 staggering. And that backend is their actual 00:09:28.240 --> 00:09:31.259 competitive moat. Not the network. Right. The 00:09:31.259 --> 00:09:34.100 physical cell towers belong to T -Mobile. The 00:09:34.100 --> 00:09:36.419 phones are manufactured by third -party OEMs 00:09:36.419 --> 00:09:39.980 overseas. But the proprietary compliance infrastructure 00:09:39.980 --> 00:09:43.080 that allows them to seamlessly onboard SNAPU 00:09:43.080 --> 00:09:46.240 recipient, verify their identity, issue a handset, 00:09:46.639 --> 00:09:49.759 and successfully bill USAC without triggering 00:09:49.759 --> 00:09:52.559 an audit violation. That is the intellectual 00:09:52.559 --> 00:09:55.840 property. That is the whole ballgame. Many smaller 00:09:55.840 --> 00:09:58.580 MVNOs have attempted to enter the lifeline space 00:09:58.580 --> 00:10:01.440 over the years and simply collapsed under the 00:10:01.440 --> 00:10:03.759 weight of the USAC audits. Because they couldn't 00:10:03.759 --> 00:10:05.620 handle the paperwork. They couldn't build the 00:10:05.620 --> 00:10:07.899 compliance software to handle the scale. True 00:10:07.899 --> 00:10:10.399 Connect managed to scale it. Let's talk about 00:10:10.399 --> 00:10:12.539 the specific demographics here because it's vital. 00:10:13.039 --> 00:10:15.179 The source highlights that these free government 00:10:15.179 --> 00:10:17.940 phones and low -cost wireless services are targeted 00:10:17.940 --> 00:10:21.009 at participants in SNAP and Medicaid. the most 00:10:21.009 --> 00:10:23.490 vulnerable population. Exactly. And for you listening, 00:10:23.549 --> 00:10:25.769 we don't need to rehash the obvious societal 00:10:25.769 --> 00:10:28.509 need for connectivity. Anyone listening understands 00:10:28.509 --> 00:10:30.889 that you cannot apply for a job, you can't manage 00:10:30.889 --> 00:10:33.289 your health care, or really exist in the modern 00:10:33.289 --> 00:10:35.409 economy without a mobile device. It's a basic 00:10:35.409 --> 00:10:38.889 utility now. It is. But purely from a business 00:10:38.889 --> 00:10:41.809 strategy perspective, targeting this demographic 00:10:41.809 --> 00:10:45.230 creates a very unique revenue stream. It is essentially 00:10:45.230 --> 00:10:48.090 recession -proof. It is highly countercyclical. 00:10:48.210 --> 00:10:50.389 Meaning it moves opposite to the general economy. 00:10:50.649 --> 00:10:53.759 Exactly. In a macroeconomic downturn, traditional 00:10:53.759 --> 00:10:56.620 network operators see higher churn rates. Postpaid 00:10:56.620 --> 00:10:59.200 users default on their bills, they downgrade 00:10:59.200 --> 00:11:01.600 their expensive unlimited family plans, or they 00:11:01.600 --> 00:11:03.879 hold onto their devices longer instead of upgrading. 00:11:04.240 --> 00:11:06.539 Everyone tightens their belts? Right. However, 00:11:06.840 --> 00:11:10.059 in that exact same economic downturn, the enrollment 00:11:10.059 --> 00:11:13.240 numbers for public assistance programs like SNAPI 00:11:13.240 --> 00:11:16.100 and Medicaid increase. Oh, of course. More people 00:11:16.100 --> 00:11:18.759 need help. So the addressable market for a lifeline 00:11:18.759 --> 00:11:21.179 provider actually expands during a recession. 00:11:21.879 --> 00:11:24.220 The government subsidies continue to flow, providing 00:11:24.220 --> 00:11:27.200 a stable, guaranteed revenue floor for the MVNO. 00:11:27.559 --> 00:11:29.600 Assuming they can maintain their compliance standards? 00:11:29.879 --> 00:11:32.620 Exactly. That is the critical caveat. But maintaining 00:11:32.620 --> 00:11:35.039 those standards isn't a uniform process across 00:11:35.039 --> 00:11:38.000 the country. And the source text reveals a really 00:11:38.000 --> 00:11:40.279 fascinating regulatory puzzle here. The state 00:11:40.279 --> 00:11:43.330 -by -state variations. Yeah. It states that True 00:11:43.330 --> 00:11:45.590 Connect provides these services in most U .S. 00:11:45.769 --> 00:11:48.690 states, but then it explicitly lists eight jurisdictions 00:11:48.690 --> 00:11:51.509 where they offer prepaid -only services. Right. 00:11:51.929 --> 00:11:54.350 Those are Oregon, New Mexico, North Carolina, 00:11:54.690 --> 00:11:56.450 Delaware, Connecticut, New Hampshire, Maine, 00:11:56.889 --> 00:12:00.710 and Washington, D .C. If the federal USAC subsidy 00:12:00.710 --> 00:12:03.950 is theoretically available nationwide, why would 00:12:03.950 --> 00:12:06.649 a company deliberately hamstring its own lifeline 00:12:06.649 --> 00:12:09.309 growth in these specific eight states and pivot 00:12:09.309 --> 00:12:12.450 solely to standard prepaid plants? That anomaly 00:12:12.450 --> 00:12:14.850 perfectly highlights the tension between federal 00:12:14.850 --> 00:12:17.610 mandates and state -level utility regulation. 00:12:17.850 --> 00:12:19.710 Because states have their own rules. Exactly. 00:12:19.929 --> 00:12:22.750 While the FCC and USAC handle the Federal Universal 00:12:22.750 --> 00:12:25.830 Service Fund, Telecommunications is also aggressively 00:12:25.830 --> 00:12:28.149 regulated at the state level by public utility 00:12:28.149 --> 00:12:30.830 commissions. The PUCs. Right. Every single state 00:12:30.830 --> 00:12:33.690 has its own distinct regulatory framework. They 00:12:33.690 --> 00:12:35.789 have their own tax surcharges, their own consumer 00:12:35.789 --> 00:12:38.970 protection statutes, and often their own supplemental 00:12:38.970 --> 00:12:41.309 state level lifeline funds. So it's essentially 00:12:41.309 --> 00:12:43.769 a massive bureaucratic calculus. Very much so. 00:12:44.049 --> 00:12:45.950 You look at a state like Maine or New Hampshire, 00:12:46.990 --> 00:12:49.509 you calculate the potential... total addressable 00:12:49.509 --> 00:12:52.190 market of Lifeline users in that specific state, 00:12:52.490 --> 00:12:54.809 and then you weigh it against the legal and administrative 00:12:54.809 --> 00:12:57.830 cost of complying with their specific state utility 00:12:57.830 --> 00:13:01.330 commission. Precisely. If a specific state requires, 00:13:01.330 --> 00:13:04.860 say, an onerous manual verification process. 00:13:05.100 --> 00:13:06.919 Like physically mailing in documents or something? 00:13:06.960 --> 00:13:10.500 Right. Or if they levy heavy local telecommunications 00:13:10.500 --> 00:13:13.419 taxes or mandate a specific type of localized 00:13:13.419 --> 00:13:16.259 customer support center, the unit economics of 00:13:16.259 --> 00:13:19.059 that $9 federal subsidy suddenly flip negative. 00:13:19.159 --> 00:13:21.179 It costs more to administer the user than the 00:13:21.179 --> 00:13:24.659 subsidy pays. Exactly. The ARPU average revenue 00:13:24.659 --> 00:13:27.700 per user is simply too low to justify the state 00:13:27.700 --> 00:13:30.659 level compliance overhead. Wow. So rather than 00:13:30.659 --> 00:13:33.500 operating at a loss, in Delaware or Oregon, True 00:13:33.500 --> 00:13:36.000 Connect makes the strategic calculated decision 00:13:36.000 --> 00:13:38.240 to pull the subsidized lifeline product from 00:13:38.240 --> 00:13:40.340 those markets entirely. But they don't leave 00:13:40.340 --> 00:13:43.740 the state completely. No. By retaining the prepaid 00:13:43.740 --> 00:13:46.720 only retail offering, they keep a footprint in 00:13:46.720 --> 00:13:49.070 the state. They maintain their carrier agreements 00:13:49.070 --> 00:13:52.009 there, and they can capture standard retail revenue 00:13:52.009 --> 00:13:55.350 without the burdensome regulatory overhead of 00:13:55.350 --> 00:13:58.070 the subsidized tier. That is incredibly shrewd. 00:13:58.110 --> 00:14:00.629 Here's where it gets really interesting. Let's 00:14:00.629 --> 00:14:02.990 look at the absolute opposite end of that spectrum, 00:14:03.389 --> 00:14:05.450 which is California. The biggest market of them 00:14:05.450 --> 00:14:08.070 all. Right. The source text explicitly calls 00:14:08.070 --> 00:14:11.049 California a major market for them, and the numbers 00:14:11.049 --> 00:14:15.169 completely back it up. As of May 2016, operating 00:14:15.169 --> 00:14:17.570 under the Telescape Communications brand. They 00:14:17.570 --> 00:14:22.350 had 195 ,751 Lifeline subscribers in California 00:14:22.350 --> 00:14:25.289 alone. Almost 200 ,000 subsidized users? In a 00:14:25.289 --> 00:14:27.470 single state. California is the ultimate prize 00:14:27.470 --> 00:14:29.690 in the subsidized telecom market, but it is also 00:14:29.690 --> 00:14:31.730 easily the most difficult to capture. Why is 00:14:31.730 --> 00:14:33.970 it so difficult? Just the sheer size. Size is 00:14:33.970 --> 00:14:36.269 part of it, but it's the regulation. The California 00:14:36.269 --> 00:14:39.710 Public Utilities Commission, or CPUC, runs the 00:14:39.710 --> 00:14:41.950 California Lifeline program, which is distinct 00:14:41.950 --> 00:14:44.090 from and supplemental to the federal program. 00:14:43.980 --> 00:14:47.519 So they add their own money on top? Yes. California 00:14:47.519 --> 00:14:49.960 offers a significantly higher state -level subsidy 00:14:49.960 --> 00:14:52.039 on top of the federal funds, which makes the 00:14:52.039 --> 00:14:54.720 margins much, much more attractive for an MVNO. 00:14:55.000 --> 00:14:57.039 Okay, so everyone wants a piece of California. 00:14:57.320 --> 00:15:00.580 Everyone wants a piece. However, the CPUC is 00:15:00.580 --> 00:15:03.240 notoriously stringent. The barrier to entry, 00:15:03.600 --> 00:15:06.299 the localized auditing processes, and the consumer 00:15:06.299 --> 00:15:08.700 protection requirements are incredibly high. 00:15:08.919 --> 00:15:10.820 Which makes a recent update in our source text 00:15:10.820 --> 00:15:14.070 particularly striking. It notes that in 2023, 00:15:14.509 --> 00:15:17.230 the CPUC listed Trueconnect as the alternate 00:15:17.230 --> 00:15:20.090 lifeline provider in California, while Trackphone 00:15:20.090 --> 00:15:23.029 serves as the primary. That is a massive detail. 00:15:23.149 --> 00:15:24.750 We really have to contextualize this for you 00:15:24.750 --> 00:15:27.669 listening. Trackphone is an absolute behemoth 00:15:27.669 --> 00:15:30.929 in the prepaid space. They were acquired by Verizon 00:15:30.929 --> 00:15:34.210 in a massive multi -billion dollar consolidation. 00:15:34.470 --> 00:15:36.730 They are the giant in the room. So to be designated 00:15:36.730 --> 00:15:38.610 by the California government as the official 00:15:38.610 --> 00:15:41.289 alternate to Trackphone is a massive validation 00:15:41.289 --> 00:15:43.490 of True Connect's infrastructure. It is a phenomenal 00:15:43.490 --> 00:15:45.509 stress test of their logistical capabilities. 00:15:45.889 --> 00:15:48.529 By designating a primary and an alternate, the 00:15:48.529 --> 00:15:50.389 state of California is basically acknowledging 00:15:50.389 --> 00:15:52.690 the sheer scale of the logistical challenge. 00:15:52.929 --> 00:15:56.659 They need a backup plan. Exactly. Managing connectivity 00:15:56.659 --> 00:15:58.899 for the millions of low -income residents in 00:15:58.899 --> 00:16:01.620 California is simply too critical to leave to 00:16:01.620 --> 00:16:04.460 a single point of failure. Because if TrackPhone 00:16:04.460 --> 00:16:07.000 goes down... If TrackPhone experiences a massive 00:16:07.000 --> 00:16:10.720 network outage, a billing failure, or an administrative 00:16:10.720 --> 00:16:13.659 bottleneck with the state database, the state 00:16:13.659 --> 00:16:17.120 needs a secondary provider ready to go. A provider 00:16:17.120 --> 00:16:20.159 with enough immediate network capacity and administrative 00:16:20.159 --> 00:16:23.649 bandwidth to absorb the overflow instantly. And 00:16:23.649 --> 00:16:26.570 the CPUC looked at TrueConnect and said, you're 00:16:26.570 --> 00:16:29.330 our backup generator. Precisely. They audited 00:16:29.330 --> 00:16:31.970 TrueConnect's infrastructure and determined they 00:16:31.970 --> 00:16:34.610 possessed the operational elasticity to serve 00:16:34.610 --> 00:16:36.909 as the safety net for the largest subsidized 00:16:36.909 --> 00:16:38.889 telecom market in the country. You don't get 00:16:38.889 --> 00:16:41.029 to that level of operational elasticity overnight. 00:16:41.129 --> 00:16:43.350 You really don't. And looking at the chronological 00:16:43.350 --> 00:16:45.769 history provided in the source, we can clearly 00:16:45.769 --> 00:16:48.190 see the long -term strategic play orchestrated 00:16:48.190 --> 00:16:51.029 by the current co -CEOs Matthew and Nathan Johnson. 00:16:51.240 --> 00:16:53.639 The timeline is very revealing. It really is. 00:16:54.080 --> 00:16:56.779 In 2006, they acquired a company called Telescape 00:16:56.779 --> 00:17:00.539 Communications. But the official founding date 00:17:00.539 --> 00:17:03.419 for Trick Connect isn't listed until 2011. That's 00:17:03.419 --> 00:17:06.940 right. That is a massive five year gap between 00:17:06.940 --> 00:17:08.960 the acquisition and the official launch of the 00:17:08.960 --> 00:17:11.039 brand we know today. What were they doing for 00:17:11.039 --> 00:17:14.140 five years? That five year gap is a textbook 00:17:14.140 --> 00:17:17.200 corporate incubation period. Incubation? Yes. 00:17:17.450 --> 00:17:20.430 In the mid -2000s, attempting to launch a brand 00:17:20.430 --> 00:17:22.529 new telecommunications provider from absolute 00:17:22.529 --> 00:17:24.730 scratch was a fool's errand. Because you have 00:17:24.730 --> 00:17:27.930 no leverage. Zero leverage. You had zero subscriber 00:17:27.930 --> 00:17:30.230 base to leverage in negotiations with the network 00:17:30.230 --> 00:17:33.690 operators, you had zero proprietary billing software, 00:17:33.990 --> 00:17:36.369 and you had absolutely no established regulatory 00:17:36.369 --> 00:17:39.859 standing with the PUCs. So by acquiring Telescape 00:17:39.859 --> 00:17:43.019 in 2006, the Johnsons engaged in a highly strategic 00:17:43.019 --> 00:17:45.900 M &A play, mergers and acquisitions. They acquired 00:17:45.900 --> 00:17:49.039 legacy infrastructure, an existing pool of subscribers, 00:17:49.660 --> 00:17:52.079 and crucially, pre -existing wholesale agreements 00:17:52.079 --> 00:17:54.740 and regulatory certifications. So they essentially 00:17:54.740 --> 00:17:57.140 bought the skeleton and the nervous system of 00:17:57.140 --> 00:17:59.640 an existing telecom entity. Exactly. And then 00:17:59.640 --> 00:18:02.059 they spent half a decade optimizing the backend, 00:18:02.359 --> 00:18:04.859 migrating users, and building out that massive 00:18:04.859 --> 00:18:07.779 compliance software we talked about before finally 00:18:07.779 --> 00:18:10.960 unveiling the modern True Connect brand in 2011. 00:18:11.160 --> 00:18:13.220 But the source also mentions that they operated 00:18:13.220 --> 00:18:15.619 under multiple brands for a significant period. 00:18:15.640 --> 00:18:19.380 They did. Sage Telecom, Telescape Communications, 00:18:20.079 --> 00:18:23.119 and True Connect Mobile. Now... from a branding 00:18:23.119 --> 00:18:25.140 perspective. Isn't that incredibly inefficient? 00:18:25.380 --> 00:18:27.640 It sounds inefficient, yes. Why burn capital 00:18:27.640 --> 00:18:30.480 maintaining three distinct marketing departments 00:18:30.480 --> 00:18:34.079 and brand identities? Why not? consolidate all 00:18:34.079 --> 00:18:37.019 that brand equity immediately. Well, in a completely 00:18:37.019 --> 00:18:39.500 homogenous market, consolidation makes perfect 00:18:39.500 --> 00:18:42.039 sense. But the telecommunications landscape in 00:18:42.039 --> 00:18:45.140 the late 2000s and early 2010s was highly fractured. 00:18:45.319 --> 00:18:47.259 Right. Things were changing fast. Very fast. 00:18:47.539 --> 00:18:50.160 You had the transition from residential landlines 00:18:50.160 --> 00:18:52.980 to mobile. You had the explosion of early smartphones. 00:18:53.359 --> 00:18:55.660 And you had these distinct subsidized markets 00:18:55.660 --> 00:18:58.359 slowly forming. A multi -brand strategy allowed 00:18:58.359 --> 00:19:01.640 them to execute highly sophisticated market segmentation. 00:19:01.869 --> 00:19:03.670 Okay, so break that down. How do they segment 00:19:03.670 --> 00:19:06.569 it? Sage Telecom, for instance, had a legacy 00:19:06.569 --> 00:19:09.710 reputation in specific regional markets. It likely 00:19:09.710 --> 00:19:11.809 appealed to older demographics who were just 00:19:11.809 --> 00:19:14.349 transitioning away from traditional landlines. 00:19:14.490 --> 00:19:16.569 Big people who still wanted a home phone feel. 00:19:16.769 --> 00:19:19.190 Right. Then you have Telescape Communications, 00:19:19.309 --> 00:19:21.799 which... obviously had deep, deep roots in the 00:19:21.799 --> 00:19:24.339 California Lifeline sector, as evidenced by that 00:19:24.339 --> 00:19:27.359 2016 subscriber data we discussed. Almost 200 00:19:27.359 --> 00:19:30.440 ,000 users. Exactly. And then True Connect Mobile 00:19:30.440 --> 00:19:33.099 was likely positioned as the forward -facing 00:19:33.099 --> 00:19:37.180 modern brand, targeting the newer data -centric 00:19:37.789 --> 00:19:40.769 prepaid consumer. So it was essentially a massive 00:19:40.769 --> 00:19:43.829 localized A -B testing strategy. That's a great 00:19:43.829 --> 00:19:46.650 way to put it. They could target distinct demographics 00:19:46.650 --> 00:19:48.930 without diluting the core message of any single 00:19:48.930 --> 00:19:52.140 brand. If a specific marketing campaign totally 00:19:52.140 --> 00:19:54.500 failed under this age brand, it didn't damage 00:19:54.500 --> 00:19:56.619 the reputation of the rapidly growing True Connect 00:19:56.619 --> 00:19:59.220 brand. It isolated the risk. And once they identified 00:19:59.220 --> 00:20:01.500 that the massive growth factor was in the subsidized 00:20:01.500 --> 00:20:03.660 mobile data space under the True Connect banner, 00:20:04.099 --> 00:20:06.140 they could systematically sunset the legacy brands 00:20:06.140 --> 00:20:08.890 and consolidate the subscriber base. Exactly. 00:20:08.970 --> 00:20:11.349 And the data proves the efficacy of that exact 00:20:11.349 --> 00:20:14.750 strategy. The text highlights April 29, 2015 00:20:14.750 --> 00:20:17.269 as a pivotal milestone. A hypergrowth phase. 00:20:17.390 --> 00:20:20.470 Yes. Based directly on data from USAC, which 00:20:20.470 --> 00:20:22.970 again is the entity managing the Universal Service 00:20:22.970 --> 00:20:25.849 Fund True Connect, was recognized as one of the 00:20:25.849 --> 00:20:27.849 fastest growing wireless companies in the United 00:20:27.849 --> 00:20:31.390 States. And that specific citation of USAC data 00:20:31.390 --> 00:20:33.950 is really the smoking gun here. It absolutely 00:20:33.950 --> 00:20:36.630 is. It proves that their hypergrowth was not 00:20:36.630 --> 00:20:40.569 driven by you know, retail mall kiosks selling 00:20:40.569 --> 00:20:43.710 standard prepaid Sims to teenagers. No, not at 00:20:43.710 --> 00:20:46.269 all. It was explicitly fueled by their mastery 00:20:46.269 --> 00:20:49.029 of the Lifeline program compliance engine and 00:20:49.029 --> 00:20:51.410 their aggressive acquisition of subsidized users. 00:20:51.650 --> 00:20:54.670 That 2015 time frame clearly represents a major 00:20:54.670 --> 00:20:57.380 inflection point for the entire company. Alongside 00:20:57.380 --> 00:21:00.039 the USAC growth data, the source notes they won 00:21:00.039 --> 00:21:02.619 the EY Entrepreneur of the Year Award in 2015 00:21:02.619 --> 00:21:05.359 for the greater L .A. area. A huge business validation. 00:21:05.539 --> 00:21:07.099 And they have maintained that momentum. They 00:21:07.099 --> 00:21:09.539 were named a 2024 finalist in the Los Angeles 00:21:09.539 --> 00:21:11.720 Business Journal. They just keep going. Furthermore, 00:21:12.079 --> 00:21:14.279 the broadband breakfast data cited in the Wikipedia 00:21:14.279 --> 00:21:17.579 references shows that as recently as June 2024, 00:21:18.140 --> 00:21:21.240 they were actively petitioning the FCC to approve 00:21:21.240 --> 00:21:24.039 further Lifeline certification. That continuous 00:21:24.039 --> 00:21:26.539 petitioning of the FCC, that has to be the blood 00:21:26.539 --> 00:21:29.380 of an MVNO in this sector. It is their oxygen. 00:21:29.839 --> 00:21:32.279 The regulatory landscape is not static. It is 00:21:32.279 --> 00:21:35.039 constantly shifting. State PUCs change their 00:21:35.039 --> 00:21:37.240 funding models, the federal government updates 00:21:37.240 --> 00:21:40.460 its broadband deployment mandates, and new demographic 00:21:40.460 --> 00:21:42.700 pools become eligible for subsidies depending 00:21:42.700 --> 00:21:44.440 on the administration. So you can't just set 00:21:44.440 --> 00:21:46.779 it and forget it. A mature telecom company in 00:21:46.779 --> 00:21:49.619 the space cannot operate passively. They must 00:21:49.619 --> 00:21:52.039 maintain a permanent, aggressive lobbying and 00:21:52.039 --> 00:21:54.440 legal presence in Washington, D .C. To ensure 00:21:54.440 --> 00:21:56.599 their certifications are expanded and their wholesale 00:21:56.599 --> 00:21:59.200 agreements remain economically viable. Exactly. 00:21:59.339 --> 00:22:01.460 Under whatever new legislative frameworks come 00:22:01.460 --> 00:22:03.720 down the pipeline. Speaking of shifting frameworks, 00:22:03.720 --> 00:22:05.960 I want to move to section five of our outline, 00:22:05.960 --> 00:22:09.059 which covers a massive technological and business 00:22:09.059 --> 00:22:11.980 milestone from the source text. The Wi -Fi pioneer 00:22:11.980 --> 00:22:15.630 aspect. Yes, the text. It states that True Connect 00:22:15.630 --> 00:22:18.690 was the first prepaid broadband provider in the 00:22:18.690 --> 00:22:22.190 U .S. to offer pay -as -you -go portable Wi -Fi 00:22:22.190 --> 00:22:25.150 service plans. We really have to rewind the clock 00:22:25.150 --> 00:22:28.089 a bit to fully appreciate how disruptive this 00:22:28.089 --> 00:22:30.559 was to the traditional telecom model. This raises 00:22:30.559 --> 00:22:32.900 an important question. How did we view internet 00:22:32.900 --> 00:22:35.700 access before this? Well, it was tethered to 00:22:35.700 --> 00:22:38.359 a house. Exactly. It was a fundamental paradigm 00:22:38.359 --> 00:22:40.859 shift in how the industry monetized internet 00:22:40.859 --> 00:22:43.160 access. Yeah. Think about the broadband landscape 00:22:43.160 --> 00:22:46.269 in the early 2010s. High -speed internet was 00:22:46.269 --> 00:22:48.869 inextricably tethered to a physical street address. 00:22:49.009 --> 00:22:51.809 You'd have a hardwired DSL or a cable modem plugged 00:22:51.809 --> 00:22:54.190 into a wall. And to get that service activated, 00:22:54.589 --> 00:22:57.150 the consumer had to submit to a rigorous credit 00:22:57.150 --> 00:22:59.289 check. Right. They had to pay installation fees, 00:22:59.549 --> 00:23:02.329 wait for a technician, and sign a rigid, legally 00:23:02.329 --> 00:23:05.190 binding one -year or two -year contract. So if 00:23:05.190 --> 00:23:07.569 you had poor credit, or if your living situation 00:23:07.569 --> 00:23:09.730 was transient, say you were moving a lot, you 00:23:09.730 --> 00:23:11.730 were effectively locked out of high -speed digital 00:23:11.730 --> 00:23:14.329 participation. You were entirely locked out. 00:23:14.410 --> 00:23:17.890 The traditional ISPs operated on a model of forced 00:23:17.890 --> 00:23:21.289 stability. They wanted guaranteed recurring monthly 00:23:21.289 --> 00:23:24.410 revenue from fixed geographic nodes. So what 00:23:24.410 --> 00:23:27.069 TriConnect did by introducing a pay -as -you 00:23:27.069 --> 00:23:30.670 -go portable Wi -Fi puck was decouple the internet. 00:23:30.829 --> 00:23:33.529 from the physical address. And critically, they 00:23:33.529 --> 00:23:35.890 decoupled it from the credit system. Oh, that's 00:23:35.890 --> 00:23:38.789 a huge distinction. Massive. By shifting to a 00:23:38.789 --> 00:23:41.690 pre -paid, pay -as -you -go model, they completely 00:23:41.690 --> 00:23:44.130 eliminated the financial risk of consumer default, 00:23:44.470 --> 00:23:46.569 which is the primary reason traditional ISPs 00:23:46.569 --> 00:23:48.690 require credit checks in the first place. Because 00:23:48.690 --> 00:23:50.930 if a true Connect customer couldn't afford data 00:23:50.930 --> 00:23:53.910 one month... Their service simply paused. That's 00:23:53.910 --> 00:23:57.339 it. There were no exorbitant late fees, no debt 00:23:57.339 --> 00:23:59.480 collection agencies ruining their credit further, 00:23:59.859 --> 00:24:02.240 and no contract termination penalties. They took 00:24:02.240 --> 00:24:04.680 the Internet, shrank it into a battery powered 00:24:04.680 --> 00:24:07.420 device, and commoditized the data down to the 00:24:07.420 --> 00:24:09.440 megabytes. It was revolutionary for its time. 00:24:09.599 --> 00:24:11.859 This had massive implications for the emerging 00:24:11.859 --> 00:24:15.579 gig economy, too. Think about it. If you were 00:24:15.579 --> 00:24:18.640 a rideshare driver or a gig worker in the early 00:24:18.640 --> 00:24:22.900 2010s, before smartphones had affordable native 00:24:22.900 --> 00:24:25.400 hotspot tethering capabilities seamlessly built 00:24:25.400 --> 00:24:27.839 into every plan. You needed a dedicated connection. 00:24:27.960 --> 00:24:29.960 Right. You needed a dedicated connection for 00:24:29.960 --> 00:24:32.579 your tablet or your secondary device in your 00:24:32.579 --> 00:24:36.779 vehicle to accept rides or jobs. The portable 00:24:36.779 --> 00:24:39.579 Wi -Fi puck was the crucial hardware bridge for 00:24:39.579 --> 00:24:42.519 that entire industry. It democratized broadband 00:24:42.519 --> 00:24:45.279 access for a massive segment of the population. 00:24:45.559 --> 00:24:48.740 Students. transient workers, low income families. 00:24:48.960 --> 00:24:51.240 People that the tier one operators and traditional 00:24:51.240 --> 00:24:53.920 cable ISPs were completely ignoring. Ignoring 00:24:53.920 --> 00:24:55.940 because their customer acquisition models were 00:24:55.940 --> 00:24:58.180 entirely built around the middle class suburban 00:24:58.180 --> 00:25:00.579 homeowner. It was a classic disruption theory 00:25:00.579 --> 00:25:02.859 in practice. True Connect captured a market segment 00:25:02.859 --> 00:25:04.980 that the incumbents viewed as low margin and 00:25:04.980 --> 00:25:07.039 high risk. Now, by servicing that segment with 00:25:07.039 --> 00:25:10.039 a flexible prepaid hardware solution, they built 00:25:10.039 --> 00:25:12.700 a massive user base. And establish a reputation 00:25:12.700 --> 00:25:15.660 for utility and flexibility. A reputation that 00:25:15.660 --> 00:25:17.660 eventually fed right back into their aggressive 00:25:17.660 --> 00:25:19.960 expansion within the lifeline mobile sector. 00:25:20.500 --> 00:25:22.839 Everything is connected. We have covered an immense 00:25:22.839 --> 00:25:25.220 amount of strategic and regulatory ground today. 00:25:25.460 --> 00:25:27.940 We really have. We started by looking at a brief 00:25:27.940 --> 00:25:31.759 Wikipedia summary of a Los Angeles based telecom 00:25:31.759 --> 00:25:34.599 company led by Matthew and Nathan Johnson. But 00:25:34.599 --> 00:25:38.059 the subtext is so much richer. It is. By analyzing 00:25:38.059 --> 00:25:40.619 the subtext of those facts, we've unpacked a 00:25:40.619 --> 00:25:43.420 highly sophisticated business model. We've examined 00:25:43.420 --> 00:25:46.440 how an MVNO leverages the sunk infrastructure 00:25:46.440 --> 00:25:49.299 costs of T -Mobile and Verizon to deliver high 00:25:49.299 --> 00:25:53.859 -speed 4G LTE and 5G data without pouring a single 00:25:53.859 --> 00:25:56.460 yard of concrete. We dissected the five -year 00:25:56.460 --> 00:25:58.500 corporate incubation following the Telescape 00:25:58.500 --> 00:26:00.619 acquisition. And the strategic utility of their 00:26:00.619 --> 00:26:03.250 multi -brand rollout. And most critically, we 00:26:03.250 --> 00:26:05.650 have mapped out the intense regulatory apparatus 00:26:05.650 --> 00:26:08.549 required to operate within the FCC and USAC's 00:26:08.549 --> 00:26:10.609 Lifeline program. The technical challenge of 00:26:10.609 --> 00:26:13.289 integrating with SNEP and Medicaid databases. 00:26:13.549 --> 00:26:15.690 Navigating the geographic patchwork of state 00:26:15.690 --> 00:26:19.130 PUCs. And earning that designation as the alternate 00:26:19.130 --> 00:26:22.170 to track phone in California. It all demonstrates 00:26:22.170 --> 00:26:24.890 that modern telecommunications is as much about 00:26:24.890 --> 00:26:27.410 data compliance and government relations as it 00:26:27.410 --> 00:26:29.930 is about radio frequencies. Absolutely. So what 00:26:29.930 --> 00:26:32.200 does this all mean? it fundamentally changes 00:26:32.200 --> 00:26:34.579 how you view a free government phone. It isn't 00:26:34.579 --> 00:26:38.059 just a handset. No. It is the endpoint of a massively 00:26:38.059 --> 00:26:42.019 complex, highly audited, multi -billion dollar 00:26:42.019 --> 00:26:44.619 public -private partnership. Which brings us 00:26:44.619 --> 00:26:46.680 to a final thought for you to consider as we 00:26:46.680 --> 00:26:48.680 wrap up this deep dive. Where does it go from 00:26:48.680 --> 00:26:52.380 here? Exactly. As the digital economy accelerates, 00:26:52.579 --> 00:26:55.079 as artificial intelligence, spatial computing, 00:26:55.279 --> 00:26:57.859 and remote infrastructure demand exponentially 00:26:57.859 --> 00:27:00.220 higher bandwidth just to execute basic civic 00:27:00.220 --> 00:27:02.559 and economic functions, the federal government's 00:27:02.559 --> 00:27:04.660 definition of a basic connectivity necessity 00:27:04.660 --> 00:27:07.480 is going to be forced to evolve. It has to. Currently, 00:27:07.700 --> 00:27:10.200 programs like Lifeline focus on providing a baseline 00:27:10.200 --> 00:27:13.119 smartphone and a capped data plan. But in a near 00:27:13.119 --> 00:27:15.519 future where high -speed, continuous internet 00:27:15.519 --> 00:27:18.359 access is as vital to human functioning as electricity 00:27:18.359 --> 00:27:21.059 or running water, Will the minimum threshold 00:27:21.059 --> 00:27:24.500 of a federal subsidy eventually have to guarantee 00:27:24.500 --> 00:27:27.339 unlimited ultra -high -speed broadband for all 00:27:27.339 --> 00:27:30.220 citizens? And if connectivity becomes universally 00:27:30.220 --> 00:27:32.319 recognized as a fundamental human right with 00:27:32.319 --> 00:27:35.759 massive bandwidth requirements, how will agile 00:27:35.759 --> 00:27:38.680 asset -light MVNOs like TroConnect restructure 00:27:38.680 --> 00:27:41.000 their wholesale agreements to survive the sheer 00:27:41.000 --> 00:27:43.720 cost of delivering that massive required data 00:27:43.720 --> 00:27:46.339 load? It is a complex economic puzzle. It is. 00:27:46.460 --> 00:27:48.420 And the companies that solve it will define the 00:27:48.420 --> 00:27:50.500 next era. of infrastructure. Thank you for joining 00:27:50.500 --> 00:27:51.319 us on this deep dive.