Revenue Recognition

6 Months Ended

Jun. 30, 2025

Revenue Recognition [Abstract]

Revenue Recognition

(4) Revenue Recognition:

We categorize our products, services, and other revenues into the following categories:

Data and Internet services include broadband services for consumer and business customers. We provide data transmission services to high volume business customers and other carriers with dedicated high capacity circuits (“nonswitched access”) including services to wireless providers (“wireless backhaul”);

Voice services include traditional local and long-distance wireline services, Voice over Internet Protocol (VoIP) services, as well as a number of unified messaging services offered to our consumer and business customers. Voice services also include the long-distance voice origination and termination services that we provide to our business customers and other carriers;

Video services include revenues generated from traditional television (TV) services provided directly to consumer customers as well as satellite TV services provided through various satellite providers, and through partnerships with over-the-top (OTT) video providers. Video services also includes pay-per-view revenues, video on demand, equipment rentals, and video advertising. We have made the strategic decision to limit sales of new traditional TV services, focusing on our broadband products and OTT video options;

Other customer revenue includes switched access revenue, rents collected for collocation services, and other services and fees. Switched access revenue includes revenues derived from allowing other carriers to use our network to originate and/or terminate their local and long-distance voice traffic. These services are primarily billed on a minutes-of-use basis applying tariffed rates filed with the FCC or state agencies; and

Subsidy and other regulatory revenue include revenues generated from cost subsidies from state and federal authorities, including RDOF.

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The following tables provide a summary of revenues, by category.

	For the three months ended ‎June 30,				For the six months ended ‎June 30,
($ in millions)	2025		2024		2025		2024
Data and Internet services	$	1,085	$	983	$	2,134	$	1,930
Voice services		282		312		572		633
Video services		68		88		142		182
Other		87		83		169		167
Revenue from contracts with customers (1)		1,522		1,466		3,017		2,912
Subsidy and other revenue		17		14		33		30
Total revenue	$	1,539	$	1,480	$	3,050	$	2,942
	For the three months ended ‎June 30,				For the six months ended ‎June 30,
($ in millions)	2025		2024		2025		2024
Consumer	$	825	$	789	$	1,638	$	1,576
Business and wholesale		697		677		1,379		1,336
Revenue from contracts with customers (1)		1,522		1,466		3,017		2,912
Subsidy and other revenue		17		14		33		30
Total revenue	$	1,539	$	1,480	$	3,050	$	2,942

⁽¹⁾Includes lease revenue of $13 million and $26 million for the three and six months ended June 30, 2025 and $14 million and $27 million for the three and six months ended June 30, 2024, respectively.

The following is a summary of the changes in the contract liabilities:

	Contract Liabilities
($ in millions)	Current		Noncurrent
Balance at December 31, 2024	$	34	$	14
Revenue recognized included in opening contract balance		(23)		(10)
Credits granted, excluding amounts recognized as revenue		24		6
Reclassified between current and noncurrent		(2)		2
Balance at June 30, 2025	$	33	$	12
	Contract Liabilities
($ in millions)	Current		Noncurrent
Balance at December 31, 2023	$	33	$	16
Revenue recognized included in opening contract balance		(16)		(9)
Credits granted, excluding amounts recognized as revenue		16		8
Reclassified between current and noncurrent		-		-
Balance at June 30, 2024	$	33	$	15

The unsatisfied obligations for retail customers consist of amounts in advance billings, which are expected to be earned within the following monthly billing cycle. Unsatisfied obligations for wholesale customers are based on a point-in-time calculation and determined by the number of circuits provided and the contractual price. These wholesale customer obligations change from period to period based on new circuits added as well as circuits that are terminated.

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:

($ in millions)	Revenue from contracts with customers
2025 (remaining six months)	$	643
2026		130
2027		137
2028		83
2029		64
Thereafter		90
Total	$	1,147