Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2026

Revenue from Contract with Customer [Abstract]

The following tables provide our total revenue by product and service category as well as the amount of revenue that is not subject to Topic 606, but is instead governed by other accounting standards. The amounts in the tables below include revenue for the Mass Markets Fiber-to-the-Home business prior to its sale on February 2, 2026:


	Three Months Ended March 31, 2026
			Total Revenue		Adjustments for Non-ASC 606 Revenue (1)	Total Revenue from Contracts with Customers
		(Dollars in millions)
Other Broadband			$	166	(13)	153
Voice and Other			102		(1)	101
Fiber Broadband			27		(1)	26
Strategic			7		(5)	2
Legacy			307		(31)	276
Affiliate Services			442		(14)	428
Total revenue			$	1,051	(65)	986


	Three Months Ended March 31, 2025
			Total Revenue		Adjustments for Non-ASC 606 Revenue(1)	Total Revenue from Contracts with Customers
		(Dollars in millions)
Other Broadband			$	205	(18)	187
Voice and Other			120		(4)	116
Fiber Broadband			86		(3)	83
Strategic			2		(2)	—
Legacy			327		(31)	296
Affiliate Services			482		(12)	470
Total revenue			$	1,222	(70)	1,152

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(1)Includes regulatory revenue and lease revenue not within the scope of ASC 606.

Schedule of Gross Operating Lease Revenue

The following table provides details of our gross operating lease revenue:


	Three Months Ended March 31,
		2026			2025
	(Dollars in millions)
Operating lease revenue		$	64		67
Percentage of Operating revenue		6		%	5	%

Customer Receivables and Contract Balances

The following table provides balances of customer receivables and contract liabilities, net of amounts classified as held for sale:


	March 31, 2026		December 31, 2025(2)
	(Dollars in millions)
Customer receivables, less allowance of $32 and $30(1)	$	182	221

Contract liabilities	245		225

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(1)Customer receivables includes affiliate receivables.

(2) As of December 31, 2025, these amounts excluded $11 million of customer receivables, net and $6 million of contract liabilities associated with the disposal group classified as held for sale.

Contract Costs

The following tables provide changes in our contract acquisition costs and fulfillment costs:


	Three Months Ended March 31, 2026
		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance(1)		$	35	48
Cost incurred		3		11
Amortization		(6)		(8)
Change in contract costs held for sale		(8)		—
End of period balance		$	24	51

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(1) The beginning balance for the three months ended March 31, 2026 excluded $6 million of acquisition costs and $7 million of fulfillment costs associated with the disposal group classified as held for sale.


	Three Months Ended March 31, 2025
		Acquisition Costs		Fulfillment Costs
	(Dollars in millions)
Beginning of period balance		$	51	46
Cost incurred		5		9
Amortization		(8)		(8)
End of period balance		$	48	47