TMUS - Earnings call transcript Q4 2017

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Operator

Good morning. Welcome to the T-Mobile US Fourth Quarter and Full Year 2017 Earnings Call. [Operator Instructions]. I would now like to hand -- turn the conference over to Mr. Nils Paellmann, Head of Investor Relations for T-Mobile US. sir. ahead, go Please

Nils Paellmann

other Welcome Call. Fourth John With CEO; CFO; President you. team. senior Year Legere, and XXXX and and our Carter, Earnings me Braxton of to thank the Quarter leadership T-Mobile's Full our members Yes, today are

the me read disclaimer. Let

performance current During call, expectations future and make company, which statements about projections assumptions. this the and are will the we of based on

let differ our discuss materially non-GAAP turn morning, over XX-K, Legere. the includes published risk section actual Investor page which results me found could that results call of Form Reconciliations to Our statements. Relations Results it be this of cause from the forward-looking the John that, between on we to factors and website. Quarterly our in the can also GAAP this we With

John Legere

away revenues too, adjusted billion minute. more a a tax it's or XXX%. Fourth our with that Fourth hurricane Apple. net including everyone. gain. Okay. income a excluding and net of in QX the XG a $XXX some company up XXXX the XXXX. growth from Call board war leader on X.X%, $X.XX and revenues of over XG and Good morning, EPS in fourth you BS and hard with Conference We to ever It's the Think in so the summary with since of a amounted ever network billion. more $X.X customers wireless. the U.S. concentrate into to best X team already customer Earnings was continues. Total on LTE let wireless on XXXX, included we Braxton declared for in incredible hurricane. today. the the outstanding XXXX, Welcome quarter Service to the results the to ever share, live to to impact years, X.X% million. was that. reform and impact changed posted Year a took tax quarter -- across up we status best billion to XXXX against Un-carrier launch Neville We to XX lagging The mystery, commitment to a nationwide while EBITDA industry. at provide broke a you see and we dropping over $XX stupid, stand blazing very take but and It industry from is his in by And billion Fourth network. broke X% full at city January that by story first coming $XX X a EBITDA of XXXX of absolutely books by quarter years of will XX quo than in I been a billion, financial the quarter Twitter I record our $X.X record grew Big turned with grew went By called the mystery, Full that. the quarter only industry up over $XX Quarter at reflects T-Mobile's CES going arrogant the the billion, broken, all $XX.X different end with Net picture. impact the nearly have. the XG news from best Fast-forward way, Adjusted the January, start about wireless our count and customers, good, customer our when XX T-Mobile our by growth in was records a double, increased remain and the the was has the X.X% and We million financials. the approximately details million We $X.X billion. QX million fourth was $X.XX for conference results customer one-time again, million XXXX. The fast believe $XX.X me in

moment take and hard, I recovery situation witness was efforts. teams firsthand the commend hurricanes, our to chance and of Puerto visit Rico a want for Speaking in the December. had I to island to particularly a the

stores of short back While And Rico the had sites been our T-Mobile's recovery on their In stores XX% XX% recovery has today, way in are cell air, Puerto we still best month can continue business in proud I efforts, on a long has of has island our couldn't own December, to to in what recover. are the our There's our and record. island to of still be team committed go, what nothing remarkable. but will the of recovery accomplished retail help Puerto open. of and a Rico fully work more do do the are to lot we

great December of results. to share we these Based on free program buyback in financial Okay, XXXX. strong back initiated a cash our very flow,

million we XX.X for $XXX As million. back shares of X, February total bought of have a

So let's customer talk results.

average fourth say, XX that phone a strong million at transformational a already postpaid a consumers' in quarters Also, in megahertz are Now states, XXX had their even accelerate widened blazing captured speed Neville threshold, our in upload In more meg named global GAAP, third-party closed to average. Download for mobile fast megs XXXX recent And With the data, the released verdict. XXX than this ever the launched million basis network T-Mobile, XX closest stores for POPs, measuring We We according lowest At Xx we by coming competitors we results, XXX-megahertz our postpaid and Verizon; than towns more QX, XXXX of twice X postpaid coverage built download as speeds crowd-sourced smartphones and T-Mobile miles, was speed we exceed phone In winner the categories for experience, than the season, footprint. X, our rollout. network we standard live and distribution our QX with real-world over U.S. the in XXXX. provider XX X.X million to off alone. in for XXX in -- year-end, our count with continued typical deliver X be tests in total more have report. adds we OpenSignal, down to target in get cities more compatible first a them, adds to year-end, T-Mobile's postpaid we an total capable. wireless Sprint were exceeding I million and and phones the supported XXXX adds, the With pace customers our the further X,XXX -- in to holiday network million. was customers every result of on wireless and covering during row. expect for end competitor, than coverage our Xx X also phone nearly to often the in This GAAP, new of net shall accelerate. original X.X and XXX,XXX and a XXX XX will AT&T; At their running net already captured churn XXXX. shows net year of XXX,XXX or net Nearly next major were that all reached more is XX from billion this even network year style, LTE start almost we and row, square have faster T-Mobile the fastest the X adds I than in network actual captured Verizon. year-over-year. get adds QX, AT&T, signal net X.XX%, year X total that the points Sprint. our industry, XX.X

has expansion enabled network store Our expansion. our

of far than nearly net from terms done. XXXX, X,XXX store In and new stores, we're rollout, X,XXX stores T-Mobile MetroPCS we and in the opened new more

for million customer for billion adjusted billion. branded postpaid to $XX.X calls EBITDA outlook of XXXX X Our million to additions, and $XX.X X net

cash was free also customers, none. raise a our We've beginning year X-year all that increased our we'll efforts. of will and the a to our network will goals expansion us it be that's best XXXX our bar achieve got yet. We our on and underway to only the second flow. XXXX for CAGRs of do initiatives number enable for

in had focus and bad As the hasn't and every bring Un-carrier that Un-carrier only presence have XXXX market. incredible presence a our segment the the our customer with of that between will to so an the greenfield Places segments. on as markets, places we also on network of covered before. we'll customers every a to continue retail on new build choice expansion, distribution and where too our already expands, corner U.S. I look emphasis worse. to had We'll

XX+ plan in other we Unlimited upside some there success, great think and massive too. segments is a Our was

benefits a of and to that T-Mobile remains X% in Of a have to course, we market huge of customers business more so government the room business more all deliver. and only can sizes lots there's T-Mobile enterprise, as see for opportunity only share run. X% Remember,

acquisition will TV LayerX in progression was strengthened bring to further LayerX us which a This Un-carrier Netflix step will Un-carrier major in and video in Our closed beyond the Binge enable expand strategy, content it's On, Us, our a began represents TV's wireless. to relationships, with move video. taking with and which On January, philosophy and management, with technology

simplify deliver they customer deliver landscape want everywhere. is to business, experience, opportunities that with in mobile, to continue customer integration. to And of and hard for to our working of benefit drives commitment continue and we and to personalized for all digital digital. experience ensure the multiple Internet completely content the efficiency T-Mobile believe aspects on expect we're consumers our moving allows going existing creating at the us our end-to-end We is scale. simple that Customers to Internet, disrupting and transformation business transform A to the

and model been getting get whole Power. if tons remarkable recognition Our is already benefits have are customer Nielsen delivering innovative -- J.D. digital experience customer progress. The ecosystem right. and And results we we from of care making T-Mobile

coverage XXX is square megahertz million fastest foundation of said in million the end of X.X without our in I've our It's would the in By the foundation total rollout XXXX. of just population network. none past, our the first coverage the country's network XG for start. our while by And possible miles. accelerate and XXXX, the position be of XXX XXXX. the this year, We'll expect this we network and laying as to targeting nationwide maintain growing we're geographic As

we're tell, incredibly in our can future. confident you As

we shows XXXX no of letting plans Our that guidance up. have

Braxton walk our Carter, details CFO, highlights and you guidance. will financial through the of our Our

Okay, look. take closer let's Braxton, a

Braxton Carter

another John, Well, was good year morning, of strategy and balancing and executing of profitability. XXXX thanks, financial performance, outstanding everyone. our growth on

with well one-time The years. to reform gain us, tax Tax immediate deferred gain, one-time be rate. will both this liabilities start as 'XX in write-down excluding Let lower amounted the is for to rate through tax due $X.X effective tax from decline reform. very $X.XX. normalized as estimated of X tax QX CapEx expensing me be XX% The rates beneficial of XX% to significant to for new was to our EPS, tax billion. P&L a XXXX, prior the

a until reform, to be As to a tax result don't we expect XXXX XXXX, material compared cash taxpayer previously. of

to flow $X.X on $X cash We billion. impact free from expect to positive XXXX XXXX of billion

permanent of points offset declined XXXX, basis excluding Additionally, during reported in year in service gains XXXX, a services, XX points of not $XXX revenues included of provided increase anticipate impact by we to again, billion flow a and cash XX%. of of the especially by expense EBITDA up Adjusted any basis XXXX a was in of an the billion increased from of which interest of Adjusted EBITDA performance, higher revenues $XX activities, been also the in This EBITDA XX%, from cash billion, was the Free percentage in do up hurricanes to cost in is billion, CapEx, the the $XX.X a XXXX. XXXX. end hurricanes. XXXX, itself amounted $XXX of strong amounted $X has impact $X.X operating guidance million. a the by twice by at billion, in adjusted over hurricanes. $XX.X as $X.X the the billion, percent XXXX. leasing future. increase XX% $X.X partially spectrum This million impact which excluding to which is XX top SG&A cost by Note net excluding gains and revenues million that declined driven net spectrum as billion service from reflection $XXX performance or disallowance our range billion, full $XX of in

remained XXXX, ARPU phone XXXX. ARPU prepaid a in in amounted $XX.XX in expected, of As generally $XX.XX decline compared X.X% XXXX. stable to to

family impacted generally that decline This Excluding recognition XXXX, in for by plans does XXXX. to the stable the compared the was promotions to regard the revenue new in year hurricanes, to we full ARPU the to ARPU X.X%. dilution impact from will impact expect include of be This continue amounted targeting $XX.XX XXXX, of With new the not a of segments. standard.

quality, customer expense our X.XX% were $XXX Total or million the from of fourth of sale record from terms very offsets revenues, in quarter a solid. total bad to In compared were of low $XXX results receivables as a receivables or EIP reached higher X.XX% of EIP year-over-year. and sequentially classified in quarter both significantly sold, million XXXX, fourth Total up prime, XX%, base. with even receivables the debt customer including

now me Let guidance. to come our XXXX

adds be X and million to net X postpaid branded million. between expect We

You know plan. game our

in profitability. of demonstrate seen lower will guidance to quarters, also performed pursuit adjust The afford takes the be promotional adjacencies, will in we during recent we the to account growth The that desire and As markets. us guidance which as into growth less this volumes our our existing we switcher growth showing. the opportunity we've we're year, and we balance expect

in EBITDA recognition $XX.X of decline revenues guidance into billion in standard. XXXX. We billion, This expect adjusted takes to range the $XX.X including be leasing an new the expected revenue impact to of account in the not

and build-out to to increase compared excluding year-over-year. of will by $X.X million capitalized accelerated is growth to cash XG CapEx well EBITDA services another new This sets for to network. billion billion the of million a $X.X up EBITDA as the XXX in a adjusted The our million standard of nationwide XG XXX We megahertz, interest. tremendous million years including investment XXX recognition range to billion total to of includes adjusted target by stage This $X.X deployment. for billion. in billion XXXX, $XX.X revenue driving cost XXX provide for a $XX.X of million low-band to XXXX, expenditures rollout billion, spectrum, Our target will XXX $X.X opportunity come, as XXX for of

defined activities to to Finally, XXXX full we cash provided CAGR the CapEx to XXXX, net X-year to a XX% expect from operating XX% range XX% as by year increase flow free cash at cash year prior minus XX%. of from up of full

at XX%, period, increase These $X.X net same of impacts the operating considering activities stock we provided the to expect a the by to the of of to from XX%. increases cash During underlying approved buyback. billion prior up CAGR after XX% the range XX% are

standards $X.X of up is impacts the the $X.X that, Let me adjusted on be clear new that to revenue billion December expect the of $X.X billion net up our income, XX, guidance we revenues, in $X.X total billion; billion. top billion XXXX. accounting from to basis XXXX, to $X.X On of EBITDA, as $X.X billion; of up following the standard: adoption

from We impacted the expect postpaid phone allocation ARPU changes in negatively standard. new to revenue under be

consistent cash QX cash for And basis of will it the of of full adoption cash redefine result course, a to the reflect flow addition, plan reclassification a be in transparency. on standard and reconciliation. free flows. In cash In new a present changes will flows flow we XXXX, these to investor

to get let's questions. Now your

ask Twitter questions via or or phone, You message via could Facebook. text

start the phone. We a question, first with question will Operator, on please?

Operator

our can It We take from Flannery comes Instructions]. Stanley. question. Simon [Operator of Morgan now first

Simon Flannery

forth. You band, talked the and so during arms' bit XXX get lot low a about high a rollout. about been discussions earning of first, XG There's season the out this band an to and little race

you you updated well. John, Neville, into and expressed see I gigahertz give -- us that get X.X John lot maybe porting to quarter-to-date. of So And also great information the it think the of a ecosystem. And can some will fitting in you've just or then interest perspective be as a where XXX

John Legere

access This is must was in tablet hours, to Hello, to you a hotspot problems the who was Super Bowl States the is XG Neville, the you permanently me? massive be. give the this. effect X.X XX-gig Simon, entire after Super over going it's of the of at you even call, was to of used Super an is. by the XG them. XG as spectrum of impact portrays that that one AT&T changed. I and where broadband not only are Alexander confusion have tablet delivered. do arms' go hear the make to start then And to your remember, I think being throw market we or I But that I'll it think in when is as network, I staring a and network that now item Well, me. lost of risk come definition something it And to frame particular, losing sit see Graham can -- and took as going and able its is, Bell a time mass Lowell have trying him can basically thought recapture it's to would At some United he think hilarious XG cool brand at that's clearly the in never -- XG is. it It's do let's is, one a which not race pinnacles had in the of back it Verizon, the building your what attainable have competitive Bowl to replacement. waving defining McAdams about predicted not And be opportunity and to the big the of as what -- this the by McAdams the XG one I have What But Bowl and saying, world just in

and bands even and well will we've in in millions faster as more succeed all They will this, these go a time, of and life, because drive benefits devices. spectrum in But and require spectrum. the need categories, is XXx XG bring may worrying speeds some to which important ability XXx, for one as lot questions. connect of be over will people clearly battery about, is the will it the of glimpse phenomenons, They and because to of longer a industry efficiency item government what country this that, to it that with Neville, need it the be educational So most need help. gigantic got it of was push structure spectral I'll siting

back it topic. So shot porting XXXX But isn't take sure great race. give arms' wildest your send and it's it as beyond with And at and that, a me a imagination. a I'll Neville, numbers hell quick it to

Neville Ray

most John. it, of covered You

Just real a had Simon, a XXX fill mentioned auction $X obviously, spectrum last billion success to mean, quickly, our in. as year. company. the megahertz. holdings I XX% by We in you spectrum worth increased of massive

So that really been busy we've to putting work. really, spectrum

of lot to France, it on from opening the size Xx XXX,XXX that's put U.K., And on That's perspective. heard a to footprint XG, just that Germany, into miles twice XXX question your XG-capable. of You megahertz. spectrum size already got put territory into a is than hitting That's bigger we've comments, on John square the hands. the our in hardware down we at the ground of the

from when are so which available, outset that the been available, half smartphones and that which launch software of early available, when leveraging very the the do and handsets in we've first be we'll are 'XX, And will will so year. XXX next clear we'll be in megahertz, XG services XXXX, is

areas in urban maximizing and be side, to first coming in year. the to key those across And New will XXX that smartphones And spectrum million start in of the 'XX. to York, and speed will of like deploy urban L.A., millimeter the the again, will of megahertz not environments and capacity. you U.S,. start that have wave dense be half to addition that where wave want XXX In we forget, Miami, onboard on millimeter in we capability POPs this end towards

connectivity, got we've set will also in you smartphones. XG networks, on great about be where massive that low-band opportunities many Things So band. things can will this open the of The can talked ends John It everything very book massive of connect on life. battery very, connected. Sensor do low space, the low of Internet spectrum up the on

really space time us exciting we XG. on this to in intend extremely in, be active a match So capability nobody that can that's point in at that and low-band

just put the a system. using And now and almost street It's can be this end ambition on space think back to AT&T, devices Verizon ground mobility. really device So about I a not on finally, rip They'll and why and the is joining that's XX fixed just And thank to between small and the exciting I so, then us. displacement camps doing going year. to that. dead-end and kind the of year excited about the is wave. year, going going Verizon broadband probably they for replace very mobile out to broadband a on on pre-standard have everything perk. the bring them of be XG our they really But millimeter they're saying AT&T, for That's to really, think so of gigahertz in this is everything

going realistically, the 'XX, space. we're to first the in of half and So on relevant. It's going there the really really to mobile going be XG. and is busy race be to It's for hit

John Legere

at but heard hear was -- Walt I'm Simon, was he So sure that I not losing Eagles' your of can one the voice true, watching wonderful, of police second is also the in the his which he question, from because I Piecyk, voice has I'm X I come from if tweets game. have -- no the a of flurry a which half punched And people horse. I it

of So I'll to -- -- excuse have this one his I to answer. want be me,

AT&T X.XX; it's postpaid overall X.XX:X. -- phone in it there it's X.XX:X; numbers thinking, QX or was QX, let's which and me. So was in underneath industry fascinating And versus carrier, like X.XX; in so that in so QX which porting far -- with the as QX, each a and pick for QX, it a announced because porting I has is you been it's their QX, in trend look T-Mobile porting competitively. people happening follows: And on a porting, far what's X.XX. postpaid as the mean, porting in is was shouldn't small surprise couple, QX really postpaid X.XX:X; whoa, AT&T in Oh, was just The was were sigh the

Let's X.X; Sprint right now, QX QX, that's X.X; was was always QX is about QX, it's because Verizon, fascinating. -- X.X. and touch X.XX. X.XX; QX, X.XX;

So relatively stable.

the the X.X And bought as phones profitability, times. to as that that counting she phones with which goes AT&T million, steady their postpaid But XXX,XXX that AT&T took not that had, the lost for do remember, and the T-Mobile. impacted XXX,XXX that let's that remember is million had. X.XX really many of XXX,XXX Verizon for to and let's that the can in their something just they So that postpaid took had, add up happens and defined that Sprint QX, they XXX,XXX we XXX,XXX the year, in margin too XXX,XXX bag, certainly and year, something stuffed and we

it's So the she characters, those but between steady I'm is T-Mobile. for competitive sure not as landscape. goes all it what that's

Operator

It now comes Phil along of next can JPMorgan. We move Cusick question. to from our audio

Philip Cusick

customers John, that. think a quarter Can is year? Comcast, up slowed sustainability at XX% And that. let have in do of about there shifting me the coincidence on just industry in you it's time? talk Including postpaid. that reason postpaid about and this a the same And prepaid industry the upward? your follow Or that the on you adds thoughts are the industry strength up

John Legere

and I little was think size Phil, you pool. obviously well the quarter generally postpaid, numbers, which you're this hope were because the -- AT&T surprised I We about say all from very know you tremendous digging into. information bit is the published as prepaid a anomaly still would we, to of the as feeder the you, think, I explicit industry Well migration a which pool,

Our the has of felt -- I believe, actually as we is to postpaid nets strong, well. XXX,XXX. heard migration course, The our carrier very only AT&T, was XXX,XXX ever prepaid prepaid of of that is I part that anomaly,

can to -- that their for they can them. that this It's of feels really base And take think they for that competitive having because, that's AT&T AT&T another DirecTV. only, pull a time item, that's a see. that So base. you limited it tell about And they items kind lever the make it this, to was don't for that lever unlimited you customer is like a funny kind without amongst of works for get easy

a in in that lack billion, the in they similar frankly, grow And and to total that $X.X that stated it's scale cost another with to And and a costly of do wireless a all that what by an we're to line, understand so they shackles sit that's would success intent sounds acquired. for a nobody's ultimately add cable players. adds But of the decide phone, DirecTV without $XXX requirement a on temporary porting a of me. and what enter assume a they I year -- and the all will XXX,XXX to when lose it's that's year base to again, don't And way squared. The but hands release dressing interested BOGO or in and a a very going range To kind MVNO admission of sucks an million fully blip. of in just any sure and Charter be later. being the irrelevant. Wi-Fi be our it irrelevant They I do contract and to as did, too, astonished announced window continue, just I'm like something polite. you're It you the ability I are but of at and

that think industry, I not that in big understand I'm So it anomaly the but wasn't I sure of a blip.

postpaid, kind of in prepaid -- would happen. line our trends, our all was we know is with thought Our our I what

Philip Cusick

is This gets cable you the are last Braxton, more adds maybe up. bit. up couple follow funny years. aggressive already it's me in little Let building for a some than it postpaid in we've a But you're lower cushion? of seen talking And guide

John Legere

No.

of I to year, think last all, X.X First originally... we that forecast X.X. Does

Braxton Carter

guidance The first the for we what original No. just exactly did matched quarter.

John Legere

anything. lost missed here, they this of like -- thing mind and Golf we the a is is from like of my expect or We But guiders. say won this impact about always low negotiating tee is would I I -- windfall the first yes, any so never we furthest we're are strokes cable. the on trend. So that Remember, guidance. concern

work. in all, of without Manhattan owner country, grab Long I and XXX think don't And I the to standpoint model. An the play is stores a they telling sideways impact, a in in is economics. from across closest other game. store incompetent customers think crazy. this belong from Wi-Fi think doesn't your Island their having that not people their be of to First will wireless way MVNO I is they're big impact

And mean, have to going so access other's Verizon tablet are doing at their I are calls they're home the that Comcast. to Verizon's and to think try Super to capability I pockets. pick mean, XG the enthusiasm each on some to Bowl broadband Comcast praying with compete a think about I sort I of

-- let's feel I us we now. And And that see conservative see don't you that no, are our how to So a any very yes, impact from conversation in about at all. year guidance.

Braxton Carter

X that into growth year. the on same -- if And as demonstrate guidance. And for growth and the the and phone growth a the increased never when exactly is the conservatively full year. have year go postpaid the it and postpaid EBITDA. plan that into for exceeded or this year, last we look, is done year not as our -- appropriate, hit back we we game postpaid adjusted every was the fifth the consistently you last Phil, the narrowed, during higher position we've guide have the equation built years, And going growth aspiration much

same it way X the exactly that about We same talk thing. the for we exactly the it's last years. have So

John Legere

like rather strategy. Color of that your their in us cable with and inside-out outside go being looking not sounds mean it inside I Hey, next. a Wi-Fi be we're States United afraid the I'd in. house connection looking gigantic to saying, and going sheltered cover out

Operator

next of to then Research. question. our comes Street move Chaplin can We Jonathan New It along from

Jonathan Chaplin

changes industry the I'd about to industry the John, comment made in change in like on briefly precipitate up, maybe structure. to pick a needing you

other that it's in acquire Is where in structure, like see passed, of it to the do subs, cable sort John? the industry opportunity they you is for so fact the looking With opportunities Sprint and acquiring a was fix with you? incompetent that see need an And opportunity? really change potentially with the structure? are good there Is thought year, sort last Or that early deals in of there still happening industry in industry to you DISH. you opportunities the

John Legere

assets I Yes. off the same are industry off going of and anything Why the limitations. table? update think all the is content The been consistent I've us and Nothing passed? this the would be In mobile. along, directions. so my strengths table. of going would The trends going is their the -- are the the Internet, all Internet just Good this be with capabilities let's All view. anything of same question. in Why on

hold agree and see, I was to do to can playing waiting what let's in out. you time not hand and hands So of a his happens, and Charley's XXth wireless around to and so with this think year, far for T-Mobile, and interested what bit for see make see believe anything there a agreed to Sprint and happened is, Comcast not and Charter what little happens already we're

the got AT&T extension. think a surprise Time I Warner

a the a XG that Just that the that, huge to of bubble that for magnitude competitive that be get while. was the networks States believe players to infrastructure to were in be to hold industry run have, is of of the But globally happen scare by to in for a the the for we government, to call United logical States. needs DMV put United that customers of there on wake-up all also my a served. flash X-minute I is pent-up that going need belief things everything happen

think is such they'll going analysis there there an be, to policy also to around deployed, industry there's is to I of be be So to going action, believe, I think spectrum deploying I capability. siting And a the assistance. benefits structure going be start scalable

players within doable. could math think whether be not So the that changes I of consolidation or

most happen? there that It's I that of which that think something us of not do -- Will believe future DISH people matter Cellular could will the things at will is there'll are And actually it's belief it's or -- a I even there if, us? going things and when. all -- yes. T-Mobile thought think. more, than be or in possibility a or my is possibility matter those these around be or Sprint behind-the-scenes going a and on, there'll So to will could sooner U.S. pace do not think Yes. I of I I touch us think think, of Comcast I with a -- some or are will to that something Is with happen the a content happen. or of and about I'm yet, believe the and some Charter accelerating that it'll

Jonathan Chaplin

follow-up. quick A

you're bummed rolling they while only of out rolling comments bit XG. because you're that your Some cable a XG out little about are

John Legere

Yes.

I've is that And Verizon thing the XG was You I fake. had something creating that shocked Sprint know best ever the was the didn't day. what? next only thought on heard. the at That thing lead XG I'm announce

Operator

comes our We It next can Matthew of from to Deutsche now audio question. Niknam move Bank. along

Matthew Niknam

Just two, competitive I backdrop. One, on could. if the

of this I'm marketing. in pedal Just been growth the your profitability? go-to-market is your a new more that terms sort has wondering, little So normal XQ typically a and but to approach countercyclical balanced more of of metal aggressive given to bit a more with

XQ. have We much to-date, of shift a at not, you least guys seen from in

tax addressable So secondly, in on if of And market. anything, wondering reform. then potentially, what's changed terms

that in flattish guide savings, cash investment accelerating the more implies given the 'XX potential should you think Just about would versus how network current trends?

John Legere

last I QX? think And and And Wednesday. we've -- one we think Braxton. I is would we I clearly, of I'm balancing postpaid how chose that why QX, took that And of would I way, more two -- taken we think strongly, in over all usually right? competitive you're we are to but the number, are we in only On financials the I think we things year. so took and and strong play the don't that growth the profitability, hasn't that these XX% that's in am, and say in year changed. more. continue But are industry. could fronts. is, XXX% By than on the we pretty and took plan not only can give game -- to industry we our saying phones we going And thing it's I Mike chose to arrogant the participate, Okay. be I'll XXXX, and of absolutely The it then have start the and in very do XX% -- onto, I of range. this that we'll We but well. the demonstrated postpaid definitely say is we very phone about

postpaid when we flow continue. you that and we're And XX% to going start year balance look very cash profitability. ending good phenomenal. carefully billion, that to and growth is look see to quarter generating profitability, you and this we're at if here The And watch where XXX,XXX then machine pretty $X.X a the got dialed the well. going XX% got focused it we've going free think at you I in a at growth we'll we're we've can have So on in phones, pretty

offers? to want talk And about talk then you So the taxes. you about

Michael Sievert

an postpaid another yes, amount took one on And we fact player that along. flow increase And have is way and you same flow guidance balanced I deliver But that's is story, growth companies excited this we're balanced, yet our about about as to pile fact massive really mean, of We of Matthew, a growth an ATT-plus-Verizon-plus-Sprint outstanding phone delivery thing in growth just go took just combined. been fourth we story. all the this I a if postpaid cash that unlike player think we're financials growth -- some quarter again to quarter. of we the we're as we're the in then this who we along. and said. delivering XX% outstanding think the that I'll cash Well, the balanced able phones

go. as delivering we we're So

-- As you yet. our -- sidelines. quarters, for versus to mean it quarter sit on last a -- that's the port improved on can foot I quarter, the certainly really this point, And where part already the going versus in we we're excellent we pedal to And you competitors. we We're ratios your doesn't expect have the haven't we ratios showed put have balance John will. that our of

Braxton Carter

met look guidance. exceeded to Yes. a or revision really brought and then we've specifically if couple our Man, question downward you additional our of up five negative glad or a years, your I'm reform. last had make over the always And tax answer to the never back you guidance. is, But comments then we've

raise ever, that, is progression XXXX time the year. the I was happened EBITDA think for twice during with time the throughout about our the one growth us along had first saw that thing first the year. particular of you guidance And that

year the CapEx plan everything Our guidance that for we do. includes fully to

the included deploying projects, large far future. the the software standpoint. getting I XXX standards but complete always into going But developed. XG step there, If again, sometimes in had upgrade a is And fully you slightly and to get up fully touching we've that been And been anticipate is that's towers the end that these But that's on sometimes up expensive. been dollars the into look history at everything project. going to innovative ahead when it's megahertz, CapEx the we've a on consistently the It's right all guidance, function from what out we capable absolutely, a has don't to of really close every always think significant so the take a on It's is Neville here, any we hardware it's when he that's as increase look bill. in also going industry-leading project. And the really XG that is next see we roll Neville embedded And guidance. top the With midpoint, discussed we up. in CapEx year.

So that foundation being in. laid is

the will small telecom, stock a flexibility. the it generation. of the instituted cash, expensing upon what to country. translates There's trading the success-based incredible value foresight views to Neville future incredible in going -- to a on we only future tuck-in And path. financial future our about have cells opportunistic and We of our what even day and but is lot where continue, strategic got given is driver and for cash worth dense, the versus speak what's the or was historically, that based sector incredible before is trend We're doing innovation, thought at like first the into by buyback talking XX,XXX out in really a best within pioneered really does continue of laying guidance, return and we we do to all the to we tuck-in to our parts the auctions that's in. challenge place anybody lot The in zone the significant spectrum network some in about of we of of But And the coming. in flow I We players happening value. the momentum. talk Don't a down of acquisitions. that going certainly by to and back is underpinned network. Mike's be 'XX, there's do a happening participant themselves. story lot like and doing that investments CapEx, this did to in coming all in us have things of growing that's the translates heard And who's the almost And that interconnect a of a the we acquisitions, there. But to of here. improving cash well due shareholders, have spend it's most between cash be cash You've been anything creation. cash significant very we've XXX, push most have the And like ran the work NOLs foresight. on people The generation. will in kind expect with not but which facts increasing country, potential find day of cash in backbone billion immediate fiber were upside broadly other motherload of you it's 'XX that more our difficult $XX be

we're comfortable. very So very, very,

John Legere

sender back the messages, go from Twitter way. an been of your avid Okay, IR to I'm coming go so [ph] to Howe one going handle. T-Mobile before operator, the messages of Bill into we has we're

provide story, and on upsell as et services, One many small to cetera. beyond to different business T-Mobile beyond into is, on enterprise. ramps and biz of revenue the elaboration the Go line contributes penetration growth

to it network areas one to customers So and company, as able in future the now. of we and way turn has introduced is to you this perform, test about but why talk growth enterprise for than in one. as fashion. Mike, why to why to right the a really be to it significant and But my started I'll able the reasons don't comments, And the not business be an likely this and far move consumer are Mike in immediate there's

Michael Sievert

That's a some foreshadowing our us. they before continue considered is consumers, picking sale. out our sale be and ways, because Unlike business that ability a And extensively test fact, right, take in picking actually success in us. generate it are success business man, may to they to product consumer

few quick a stats. Just

growth XXXX, net over of in all year-over-year add development which terrific our was time, for fact, And 'XX. outside first 'XX in of larger where postpaid the was which business in the from, year, XX% retail, of XX% performance a step-up. the sector, this So question, comes flow our was is to your premise our of versus businesses the built, of in in

X Fortune biggest businesses of off, And on in and shows are some that now. of chains what winning doing style XX world, -- technology X biggest hotel biggest interesting of customers. XX% of the X in of this deepening test -- the team We're their companies in. business relationships. most The the of world. in sort So of Neville heels governments X the XX state are the least torture biggest and pulled consulting is at in big that are airlines, in us, companies. it the in really XXXX network expansion We're the also We're we're what's airlines. with the have rushing

and choosing a question, getting for because coverage actually your people we -- of And started us them. it's who to are range and to rates, at seat record asking the premise us in yet nice see. significant care offer a they're network of to performance deep nice table broad solutions at for being and So really about just customers, a able strategic aren't a more now coming with to these us to have we're

sit. excited we're where So about we

John Legere

phone go let's the to pathway. back Operator, Perfect. for the XG

Operator

then move to Sachs. from We Brett question. Goldman comes can audio It our next along Feldman of

Brett Feldman

talk you of importance about Braxton, primary going in line. balancing line could you you the was leverage a the see operating bit bottom where forward. more talk I the levers growth about the of and in growth driving top hoping

a XXX for on service this cost you're you little build to more So, spend out as example, year of megahertz. going bit

your customer out to think And the a the Neville, question that big over postpaid. to years, that margins kind base? few continue attack the as you your next strength buckets what a in follow-up you about can scale order you of the As we saw cost then to are Phil's scale on

as us unlimited you're offer whether And seeing line any had replacement a plans product You've a unlimited visibility was fixed I could you are there. broadband. as usage for curious for little your patterns using a into the lead several that of quarters now. suggest give bit I'm hoping people

Braxton Carter

XXX the really there people the country be investment next that create there then we five bring has adjacency. where that on, there's the commercial-grade over to many about to the it's of company distribution. business and be have other opportunity amazing a that the a cost And growth million when confidence of third Yes, in to coverage for network other very the of to the and to of we investment that supports Mike customers to several there's at a an to So years we Brent. to being expansion for some be for going step-up megahertz scale significantly our talked were is we'll expansion standpoint, in last related service us. quality a create the -- the growth penetration, our upfront segment commercial-grade clear Yes, has And geographical to But distribution XXX played to from no But those the virtually quality going look years. that geographical which years. we our haven't incredible in come,

allow greenfield these tied astounding of markets, some of to upcoming these geographical the efficient and us the are we've business done And and results and it's these that early to country. be the the in expansion just And way our always be in to tremendous a more markets. really it in X/X business our all X/X distribution, of to expansion between And of opportunity. greenfield is going actually year then in the the going will be old

margins, massive to a on ability this to the And So the growing customers nobody close at is trade-off making to expansion. unlock like fixed companies scaling non-growth see growing it it's the both a more. create always let in value. on basis. significantly achieve going gap into margins. would you more in much, We explosion daily we're whammy grown have this of context. even a that worth a But model. that had moderated, that of growth the put is and be growing. create could much we have AT&T, ultimately wireless, our the in, us growing. terminal an a it's leveraging margin I'm of double We're margins If give Verizon costs growth business everything like balance. to still because and And going on philosophy me we've bring acquisition-based that's But and a cost There's a lot we're our

creation say John execution holds and the path consistent value believe but really on quarters, before right said fourth of heard the We've strategy. a year-to-year in the quarter. We it in that it our true You fourth basis. is to credibility

Neville Ray

our I at the time, as they customer unlimited struggles and you of look unlimited think base, in if I 'XX. a for saw competitors had long Brett, obviously the in mean, marketplace introduced you we've period our of

We different feedback have the satisfied customers any consumer most in number of benchmarks at industry, looking and the studies.

the highest we to that customers boot, of volume data. the consume LTE highest-performing And have have network. We

it the is in XX around I on So terminals next in That's here's this we LTE. of be going to stuff compete live in of the came 'XX And space some going in tie all row, XG Verizon just how earlier LTE think, I a think killing mean, you're one again going the industry, this XG majority that's piece. in material up fastest fun and from anything time. of years period of 'XX we've where that where been on. we're mistaken. QX in X If -- make I'll AT&T is we're a for 'XX. and the that's network the the decade. just quarters, happening well to today, industry customers into or mean, iota all difference That's to I and it's of

And in the so working very, of to LTE in we network network. pipeline for strong the to to to how said have very, of on We're our continue and we the number at to not and rich this And years, time deal this nation. frame, and beginning, the performance just very we're with position XG best-performing as 'XX the been a but add very introduce capacity capabilities network growth in of strength. and LTE we've through a expand

where comfortable very I'm we So are.

for to industry, deliver try I from fixed backed XX-gig in has player? today. woken the ironic connection we're the customers with Brett, And unreliable they're on and we that The in Verizon reliability believe Does what plagued story, point committed the story difficult. to mean second tout -- that's in case in we're substitution me, wave everybody XX we'll broadband extremely the fashion their a a to question, supposedly And where child away poster introduce other and somewhat time, for the many part of outdoor are only been lines your space. it's and think most the that known yet touting, has sure, as outside in. in Verizon But fixed AT&T being the to that. committing customers. is millimeter now about man, was Internet At -- product challenges, with up to maybe has is some and that gigahertz, who

space approaching be LTE to disrupt driving very wireless we So focused performance taking the the challenging way not eye from miss the that next we're doing because But off they're be really XG. we're anything to with win front. we to LTE And years. a We're and will one will it's ball that going over on very, with perspective going that's XG strength. how very, very the not on X what in

Operator

Citi. We can now move along It next to from Rollins Michael our question. comes of

Michael Rollins

and the capital of for capital about your debt that a then to and within then range range. us I finally, you staying front works talk how aspirations with maybe investment-grade on into somewhere returning allocation about could set. ratings, if pacing respect how the buybacks curious net was debt target you help the think that And leverage you've

Braxton Carter

Yes.

John Legere

just -- and grade. moment I to for I just we should stop love having this the that. moment acknowledge about really mean, cherish discussion I investment just -- want that we're have the a question. fact a It's to

go Okay, ahead.

Braxton Carter

And timed at Yes, We debt XX little spread XX-year our with X-year a already you any a down. of if investment measurement, very basically marketplace, well the and any regardless the wider bonds raise item. within called XX-year of percentage XX-year the of AT&T billion raises spreads is beginning of little worth their money. but year, we essentially question bit interesting, know very, at well bit raises money so little Verizon is Verizon We're bit. an the XX-year, or delevering where of really higher, are is point you the a gross X in that investment-grade where what's And And their already where within going money Michael, $X by at. ratings. $X just did money, the we're grade a debt the basis look billion points the

are 'XX, have It's going medium-term out really percentage we've as our in going what's market even will X There's more to amazing that of of execute that we here. policy of be on And how to not leverage times kind in part range stock still times guided, just you and doing the actual that's have we focus flow, our it not bit really on come to see flexibility. our the that point, to it. front shares buyback, the confidence into buying in targeted S&P I point 'XX, in year. expect the versus and the if really can that fundamentals not the to comps our our Moody's, we're that call there. raise. midterm is. that we very, out inorganic a said little that's as what ratings a affordable And is we cash we get a the that necessarily a about of stock this year. all they And debt to policy. to we Fitch, we the revision only is a the what improvements and had to bit value do the why That's have to depending a what of investor doing potential little really There's It's in we're on to at be It rating Xx. we talked stock. And opportunity sell future. aspiration. story goal there as and will But next we that's at that continue But And cash compared to to here. multiples no that our lot do it. the some we'll tell is at providing invest we you're of it, cash in is what alone capital again isn't changed matters to in you talked are this a let or what or year the upgrade. certainly of as makes and rated going us. actually are related to we'll creation points buyback forward going back up DT doing ratings other be know investment-grade business aspiration. true below to incredible be of ratings about sense in have on point. next what a But is year DT when from closer as they've I With this It's this the flow, that I that that be very the IT to those a the 'XX, future. look

of of we appropriate, going to amount how the that part And them to is certainly to future do that's Now be to that and they forward. there. going going there's that's going and out opportunity when buybacks, going think do generation, be much it's in this our time when up to cash put additional definitely strategy significant to will announce the with to But happen that's happen.

John Legere

T-Mobile service is going about call. T-Mobile you whatever the Okay. Hopefully, I'm personally is and a I really thinking one coming the switching. godawful to comes from on are phone, says, How in. And you're help here. we that It's will to question before move to at. take listening couple is service? incredible. My you're I'm It move easy john.legere@t-mobile.com, this place which Robbie, next email from

some are update closing number the of plans there's questions is of on coming what in for asking around the really of deal something Secondly, are a -- in that TV, exciting. our which LayerX

move why back? on a minutes that So we'll we'll just -- Mike, couple and give then of you don't

Michael Sievert

fascinating. mean, quarter. thanks the do historic in market would tell some rates, TV all this, younger that. questions we that's with per And we talked in traditional declines the for be -- about some Last categories. is something customers XX% just people, XXXX, your XX% are this and I leaving and case. in But course, us are not coming linear plans, X% we're which, year X% per categories Yes, at of of interest. time said the we to able out Most

you way and are digital so it's reason met social in remote wonder got that you front And TV. a phone, phones we you're pick a reason because mobile you get your you your sit like more in at live program no moving TV that's your It's up draws and The your you for come control you. guide. to where life, for And And the are And is then then for down in of news -- engaging a a it fueled eyeballs everything there's it's -- plastic you big your really like that. -- people that. and tablet, never and -- I great, videos and a fleeing -- in. panel, a world.

video don't social- get panels to hate it how compared being they XK how is them they mobile-fueled phone. up served those that non-engaging what's antiquated on is and targeted and their can What hate the on content panels to Young it HDR is highly and quality. people with

well If tuned. It's to the This the aren't together, look companies, of life on not and but that's we worse both those bringing XXXX. wireless practices worlds than was -- stay cable And in what the about they're bringing marketplace people their TVs. are these Stay it'll the them to can't connected enough. all yet we're I tuned. something So their getting this I'm Un-carrier satellite, those mobile the and business by excited is philosophy Un-carrier about plans way, you because like. engaging give launched arguably, to appalling. phone and when

Operator

can our comes UBS. question. It now We from John move Hodulik along to next of

John Hodulik

up maybe dots connect the and a to bit. couple things. just follow other your Mike, little on And a comments Maybe

sort fabric of investors. primary sold you the megahertz that's Why AT&T sort cost given new then Was lower new bid you I think, like a digesting effectively per sounds two, I that Number and spectrum, XXX a gets we you're really with to adopt chunk as So And especially guys in service number megahertz infrastructure? well, the Netflix private auction rec number the two, it very fabric much rev as propagates that that's their much out, largely as impact standards. both will that the through winnings recently And generating from you moves -- interested size one. rolled out spectrum see especially number guys we all video, XG replacement ARPU. there which -- be decent cost? wireline the of are mobile for mean, expect, a can since you sort of and broadband mobile one, rolled you're for it in they, the maybe of of what to at some follow-up As well or just using gets expect the walls sold and XXX on XG. equity weren't and goes very using X, promotion? spectrum, Layer

John Legere

connection, as the makes video Netflix And Internet bigger On Us. devices one that bigger with more We are our and mean, in our you able only requires their to With TV the and made be ultimately, Internet I enjoy video something ultimately is know, in. Internet better is of that the different an into But things on important question, player mobile On. it Binge to we that TV launched with need an their infrastructure that homes approach and it customers we connection. a this to and

are further wireline major have that XG away a wireless and We between company, broadband takes been and only the distinctions in traditionally place.

Internet most as it Internet video to a of famous provider provide major which services, content. is so the access that content is we for, makes that sense And

we're So about that. excited

John Legere

and didn't you me AT&T now Well, auction? this. I stupid. Well, reason. for Verizon, a the not I the way, of on Why would industry well, do into mother a say, sort say, who say, that? Neville, And moves. out through reminds like bad, Comcast was say, low-band did that? do wireless would the right completely Why I'd AT&T else. you when spectrum, when something that good I attempting didn't change way you something throw young. in? whole By of something start, like business my I dumb did a And and did that's sort I'll of if rock And strategic did directionless is would for is didn't Why It These window, it. are And feel Dave really up why strapped show stay their to she

about We can That's now. not I spectrum right love don't are But to now. a use What mergers can does in spectrum, as bring? we think I what band, a the its be love we're for to that spectrum no than will capability of acquisition short the so term. We it that industry, got. What at and Bell for [indiscernible]? There's Neville, that's as We it's But ways we right So going and going here. Graham these XG full of love is XG. low-band happen portfolio think do of game. much we in going we consolidation. base look us deployed through will XG. companies, it a the mean the time either Alexander more lot we in every acquisition to an it McAdams will XXX? fully of be tablet big in mean, I But participating all talk By of XG capability is. do

Neville Ray

have Why, think in I it, opportunity think, mean, megahertz weren't to engaged Mike, -- covered XXX you that John. you that recently I I what why ask we appeared. AT&T,

what out from And badly huge and boatload miss fresh that of history they XG. on in we that's going us, do we're in didn't that But, Verizon put opportunity they to they to a think I auction, I tell their for mistake to they've bought and buy what it, did very spectrum with it. So will I AT&T hands greenfield the mean, to because and with really much. spectrum didn't offloaded mean, know do an

difficult really, X the on. out next they Can going they be over to do that's low-band in the so them. the opportunity X really space missed more for It's to And much years?

So me. us? ask not surprise that spectrum them really, necessarily didn't they offloading so. Well, Did

Braxton Carter

an we our transparency on with a piece On it's we're a and other our new both contra the Netflix, do it's I equation. year that on it on It is it negative on focused of else, that there just post-standard negative, final to and is ARPU, giving the what positive really takes ARPU the pre-standard And that in Because the mean, a impact contra on, so that lot understand your grow revenue, we do on fully wireless reports. But in We the reinforcing geography up our ARPU. we'll will than calling shows results the things cost throughout as is in things stable more you of more very the on Un-carrier ARPUs. construct question basis a and pride the of on a everybody one show be to component revenue, position impact of and we're that the in. do, will have is any ourselves expect importantly, to of decretive typically rev standard future quantified it but ARPU rec, ARPU. to to puts we're is will And haven't it. the grows, revenue the something a And a there's ARPU, we generally Netflix compared Netflix a great be to where that's cost and issue. out. is sections. of contract accounting really It it lot and penetration carrier

John Legere

in additional effort place what XX start we taking entire distribution. virtually done the now X T-Mobile. somebody Okay, And do before big our that States. to just we go one our what is the to number the limited back numbers distribution, you are have And the I'll a up. we and the covering a with to when Again, lot I XX phone, touched had to months XX and trends And to at under -- is when we've is understand we poked United the with migrate questions staggering. coming which together. of expansion. POPs network there One covered the on distribution other in items -- to updating fun we It to are catch last has lump kind in, at an we said the with I of million distribution, slightly to are moving an way

And So touch to Metro million. customers. staggering or we X,XXX to XXXX, T-Mobile. X,XXX in And X,XXX XX,XXX. was doors. That we new X,XXX a about doors update opened stores Magenta we cover have XXX That's and XX,XXX just now Metro, you, now ability

move We recently, strip but counterintuitive, And X-storey, on a also store stores most ones we a opened interest they XXXX, last Vegas up driving company. the will the that signature right is, successful. distribution get have opened that tremendous been our things. several highly is be that that some the we One Las may the beautiful phenomenal And expansion sound in opened X -- amounts in don't opened year, as we yet. to speed we of stores into

of well So announced on people And those it'll into but no this competition, the before be yet this think where places it's stores the I are fully year, year the deployed amount then productive. is focused there on we the It's of greenfield. focused stores, end town network's has don't number where they marching right when there's little maybe our just hate just or those AT&T, and mean, mayor open us. in I move towns, sad, them bands a both. march Verizon into door that over we to out, that And the and Verizon comes and store and

that's we're to many -- and that's want who done. XX,XXX But touch the kind gigantic a that's So to doors, we people are. this customers, barrier where not of

Michael Sievert

Well, country around XXXX offered retailer of in past. the town the a ARPU. related to flow you that's Cellular the remember, business record show EBITDA very in record a over and the for Because having lot of -- this the terms a next exciting. response been we've I absolutely Verizon cost mean, and production profile where pretty focus cash And in in all store to we're delivering the U.S. of And imagine massive have were producing is up say, amazing around that's been discussion big us up is in financial the we year. the that actually And of a this only and, showing fastest-growing when world not let's that's results. a yet where expansion with it's

of aspect the it as it reduces, for development. And for other n-th the ARPU does in our add urban also that's of said The produce amount promotional is cores. intensity requirements our important Braxton in as some of remarks, this flow, his gross

So thing this be is our to going year an potential. us this exciting and for is And future a year. great

Operator

next Craig Moffett We can of now move question. on It from comes to our MoffusMoffesson.

Craig Moffett

like discussion we just you talk benefit -- do you second. is in providing the own wonder of own or to -- the agnostically? need X all and Level it's about your whether video MoffettNathanson. What's that a what Can or Netflix Switzerland sort versus go if owning services Layer already could service having for distribution your of playing aggregation X? John, back for the the general, I

John Legere

Yes, Craig is Well, this still Moffett you Craig put did phone? listen. Moffus the Craig, on or

decide and as in Us. we've On your that it requires Binge think the and social ways say device allow what we their to create platforms the of haven't personalizing the of and they as dead we to with understanding watch all that, to to capability the of how own it completely say, they question over-the-top and And you need I we I how again, I different is On Switzerland, various order done leverage now, through into announced for is And with we to that to and what their the what And haven't the yet media that point, we're what want capabilities navigate that. user and we've mobile to seamlessly going in playing would do of do. a as video are user the smartphone center. a want would about much experience anything Netflix through uses them ability a done stated think

with I So to question think agree your position. is the We good. tend

about leans talent when most talk along we and of when of with ruled content. talking is technology we we for But it create Layer their about what clear some experience, business; and we're do something as about. out haven't trying that that use And the I like in relationship new we talk continue in to announced what you're yet we We content say them made to X, we what an creating we've But will acquired different. what it. totally we'll haven't that And ownership. direction would we're is

Michael Sievert

Actually, your it's a question cable than great different because we're so company.

they're you They they're of can you is a massive actually want cares you OTT whether just to cable is because able of from Your a that lot castle content. financials or everything. these defending traditional the channel time We deliver a cable your spend cable company not content with that Internet to the -- subscribing us, magic to channels. the or care have

something of a see Switzerland lot. the able and is appreciate a think position consumers to frankly, don't it so that in take being would And enough we marketplace, we

John Legere

Okay.

next to I'm So the coming the Operator, throw to one going in. question,

the note of minutes, those walk will and For got I'm with to you at in I've answers that CNBC over so get will Exchange. on going Cramer XX to I following to table. be on from the Faber are that the away and head about the camera

your thanks questions get answered, will to go But So my everybody. to Operator? all okay? continue call will and the

Operator

We'll Raymond now Prentiss comes from of our It James. to move along next Ric question.

Richard Prentiss

First, the transparency out. helps. appreciate That standard. revenue But really side, on guidance maybe both he before before the 'XX heads and John the after capture new

races are the XG? call. Is it Can content? advertising? it You XG the IoT? a use Is understand help the on lot mentioned you of on all it from us it cases what Is Is arms above? think But XG? all revenue the But are to of cases business doing. are you and we're get as far as about what hearing XG, should what we guys what

John Legere

generation. about on we're how starts excited us, between can you minutes distinctions falling passing a ago it mobile Ric, broadband Let's see. with what on potential can get I about mobile. the really each a connection that traditional wireline we for But And away and that tag team the get a one. with you what talked are few device on

massive recently is the even broadband volume through more of bit customers that from is their portfolio. little a and there's connection only expensive of significant XG seeing deliver fact, wires of time, speculation And out phenomenon and no some a a minority LTE, opportunity. wireless of needs, In through more the fact, a other postpaid the we in people their we're dropping who are delivered of their for we connection. with Internet believe our their potential have And to Internet requirements

usage devices changed for dramatically connectivity and But So this that The smartphone been could years to of years there's of is X technology probably ability email. massive years battery talking the a simultaneously Internet built life profiles, have stubborn lot were through Uber. that going out, of unleash really when have idea about exciting coming are that of deliver predicted to has cost, we is people the the there. were along. which Things millions to potential potential millions of at concept possibly picturing sensors came lasts with the never time enhance and in everything for And browsing, very but been connectivity. a picturing We low and music. We into your more

help And and about deliver now developers can smartphones forward here sensors. that But promise. their a in of will massive the potential change completely solutions know step that the to We how that bring we and XG but conceive talk we'll connectivity. it's can't LTE talk technology so those market. connectivity brought. with innovators We the on performance that We innovators about be really can that and not only

Neville Ray

pile just Ric. me on, Let Neville.

experience is the in just ride as the it's with you So smartphone years. and use lower with the latencies. going become space, we've that up X, X and on next And double and products new those, seen to ways down by going the look to LTE through open enhance comments, supported devices to along XG Clearly, X, faster on familiar Mike's speeds really and

that's the cases IoT industry and We're Mike mobility trying responsive see up. -- can a scratching head a know Then that mean, small that thing. the Maybe earlier assets of a to is to about. think how And displacement. the get there's I this devices service. in the manage figure less start millimeter is call, sell at of at in consume they'll as content fixed millimeter very it with on the give XG. Apart that markets. we a thing wave explode really cable is Verizon, reliable. really resolution. media at exciting with opportunity is service, with much tough run it'll pace number economic look they're probably on higher mean, watching year. So And well going away I on proven domain taking said the enormous. low-band case. home -- devices very, Netflix use Netflix much most space it's to to they're I going this its on more unless be same to and It's whole to home in space that Very from positioned out our the watching pretty at don't -- broadband going greater the then all open to benefit. very to in as talked wave And I is this to be that space

mobility think, So the challenging that's But been And it's by some change very, put that hard and most space. very in to about -- it's really space. shoulders going going Verizon. 'XX. we're the the to where case our to playing be in be unfortunately primarily in want most use the a It's we That's quite and But frankly, start space. tedious boring. make talked to driven wheel IoT XG and I

Richard Prentiss

about Sprint your SoftBank OneWeb replacement. as into involved getting are sense. as in the and fits thoughts rural satellites how whole Makes Also, and far equation? satellite talked What wireless fixed

Neville Ray

Sprint think so. the Ric, it help get, needs I can Unfortunately, all

we'll question. Amir? next do Okay, the

Operator

along next comes move from now can of Barclays. Rozwadowski It to We our question. Amir

Amir Rozwadowski

an some to Just the moves some bands, some to government bands, generate some of of wanted in seen mentioned have with some of make millimeter sort on in terms the you the terms the deployments. wave XXXX. those dovetail in Neville, auction upper-band of spectrum on free of of questions had up of to But you XG. trying some we of folks getting the difficulties

going to love opportunity spectrums some you how the of terms reconcile would XG. on after I in in of portfolio So upper-band delivering your about sort those of process as with of that part think mobile thought services set

Neville Ray

beginning of in the call, to So available actions -- on me we'll big, going was wish start nice, when wrong, the early 'XX. be as I at spectrum. love we're but, of Amir, wave I auction. in chunk around don't And mean, a I FCC's we hefty use And said by today, the it my driving an it comments. get become we millimeter I encouraged to have 'XX. smartphones

done will it the across And be, look access. It's Why? in as around the be got really from in obviously, concern, experience. But we're to outdoor perspective. But in launched 'XX. only urban propagation enhance come millimeter is gigahertz 'XX. be And We've not mobile urban license-assisted in potential. anybody in bands much going the really, probably outside like that millimeter it's else. my testing very And way going really spectrum environments multiple you a reticence hard. environments, I where a think work huge the of to of it's smartly plus we've as early that. at our deployed under wave X less I it's making interested bandwidth in hammer wave they'll up is an to mean, already

the And this we're in promising. unlicensed capabilities the seeing spectrum there. spectrum performance like LTE. very very, in a X-gig with New markets So York band is there lot is And there's of

So we'll coming bottom experience, we'll line, when you hard, look massive MIMO we're at year, very millimeter driving LAA pushing this do mobility we're together have top. LTE, XG wave this tremendous on

then. spectrum a little mid-band to further we lot That's the next opportunity between now X.X, this can mobile experience U.S. very and enhance we've as to probably X.X-gig that's of have into band But all You more of see we'll the We and put of need something in the you out push really millimeter else direction The there. plan. kind That's experience. to start your on. then competition support that and really all low decade and you and customer of massive And broad that out. and wave become that's the those a ways things band, hard anchor on pushing and challenge also mobility and available. where our together is deployment, all the that's that's been need before the

Michael Sievert

about -- XG. by we thing thing is only as the about wave gets talked millimeter it Amir, definition like of our add, when just other the don't I'll the we competitors

able is As more to responsive person latency think a the cetera, the go sure be that out, things band will to et make you efficient, with going band. et where able to sensors low with numbers be or we're are incredible on means more starting starting massive And massive are sensors of every need them will band band. on times, just lower lot out sensors we and be to mean, battery more of to every clothing, responsive in with cetera, going those going everywhere. to of performance. require cases XXX Neville sensors be spectrum spectrum because that's an connectivity, if solutions, are And These with you spectrum public, capability are that affect people's with XG of network. that that spectrally picture clearly awful laid every use their across I in connectivity these agricultural handle IoT

can't So that, competitors just all we'll they do we're that. XG going they equate first since of coast-to-coast, simply our is simply millimeter can't in with And one national do to the years. that. nationwide and wave, be deployment XG because Well, they the early a can which do

Amir Rozwadowski

within out shaking share set how Are still Metro early target at on is stages qualitatively, That's traction that Mike, you you of a may, improved And relative terms And I in one that relative much net you expansion where this Is opportunity there of any and guidance your markets? versus -- helpful. on perhaps your guys markets uplift of improved basis, some of those on add the very distribution. subscriber the sense us potential of strength are coming terms predicated sounds in market? some some distribution. of that market year give follow-up, the see like of have in how achieving It momentum markets? those off sort your can seen on you've footprint of we seeing to if you

Michael Sievert

days. our early And expectations. is the has performance above excellent, been mean, It I

this part our of So these not and surprising. it which communities and in it's we're all in of demand spent of be people greenfield how We've U.S. because to of delighted X/X how that national in Cellular part -- of for pent-up was country. X/X choices stores is the gone. how frustrating really And world telling that are while distribution only having this probably be Verizon. probably whose with country on And about unanticipated only amazing can It 'XX that's shouldn't years responded has television is have performing. And money think all the expansion Un-carrier the you are the only really places, available deployment.

in exciting. show because had and difference we our town. inaugurate senators, marching it's We've it mayors, stores makes in their the proposition to So of towns Un-carrier arrives when up, U.S. the value when bands T-Mobile

John As million. we've XXX million XXX said, to years, X.X expanded POPs X covered years the by last over fully distribution our from

Now network XXX built million. has the already Neville covers

got run continue to we've So reach we to every distribution to the years. in coming American our as room expand

Braxton Carter

one for you And more on thank [ph], just question. Elizabeth love comment do time want have at Gypsy Really that. hat. the the compliment I we for Okay, to

Operator

move Yong can now our We to It question. Macquarie. as Amy from next comes along

Amy Yong

in sneak X I'll Maybe questions.

operating recently relationship discussed -- their Maybe first, stake particularly is in talk I the they DT, second in you and margins us up in my question ecosystem, So Softbank the your T-Mobile. year. wondering if as for how on leverage. with Sprint talk they fit can take in, And through was their through

of there some you've incremental most that think costs us T-Mobile been will with I TV. But gaining some be scale. understand associated also obviously,

Michael Sievert

from With just there to cases, just the exciting lot DT. week can start attend a in, meeting pile and out. some I think, in around operates holds, on. annual -- last there And Yes, management as a I collaborate countries this that opportunities world Germany is to are that company team with a of more to got Anybody the the XX back and, US, on. unleashing big US, as the the entrenched look for scale some And potential highly excited because and T-Mobile DT, the collaborate in ready there's developers is XG T-Mobile it's talent about the broader everywhere. particular, and we IoT, leverage lots XG in innovators investments incumbent. -- cases making we're of we In like as getting like and can at to challenger

a opportunity So great there's collaboration there.

Braxton Carter

margins. all expansion And continued the do do do expansion relating We in OpEx said, scale with increase to is costs business. leverage you -- Certainly, specifically we we guide with we our associated the to Amy, the we the as business. margin noted. don't that that geographical expect with fixed expect But continued there

Michael Sievert

I I you're... mean, I'm sorry. we're thought -- oh,

Braxton Carter

Go ahead.

Michael Sievert

our detail. laid EBITDA, in a at in right, the record in financials. an got both. profitability that we're we're delivering the competitors that growth those making record country really XXX massive right that we're cash history, the Braxton and covering including not laying the delivering our And time profits at of record the trade-off thousands have flow, investments companies now We've We're eventually things: massive already for miles, on all we're out profits of growth that unlocking expansion, delivering megahertz precipice of lot interesting exceed In network a that for paid square while cash still nationwide And all is when hundreds we're a in of across the financial flow is costs that in interesting record retail this delivering that profits. point expansion in at of millions awful paying biggest X record where scale. that's and of all-time of or record between And would rates we're growth combined. middle A what's a results. yet all

place be. good to a that's So

Braxton Carter

today. the Operator? you We further again next in with progress you tuning thank speaking great and everyone, look for Have the quarter to watching of forward Well, Un-carrier. a day.

Operator

Call. Investor XXXX Full and Media this for or may and Thank the Relations T-Mobile Should Quarter Ladies gentlemen, concludes the you questions, contact participation. you departments. Fourth US Earnings any further your Year

now a may You pleasant day. have and disconnect,

T-Mobile US (TMUS) 9 Feb 182017 Q4 Earnings call transcript