TMUS - Earnings call transcript Q2 2019

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Operator

Good morning. Welcome to the T-Mobile US Second Quarter 2019 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Mr. Nils Paellmann, Head of Investor Relations for T-Mobile US. Please go ahead, sir.

Nils Paellmann

Yes. much. very you Thank second earnings our quarter to call. XXXX Welcome team. Legere, Mike Carter, Sievert, me senior CFO; today President CEO; John are leadership the of Braxton With our our and other members and our COO;

Let me briefly the disclaimer. read

XX-K statements other statements historical beliefs from During and based and include materially, to with the are operating Form on our cause proposed statements outside make we control expectations facts. factors benefits report of and and and differ financial are XX-Q. Form in projections plans, future could the including merger our that the current of this statements our expect our significant subject the will management not forth quarterly call, our that results, to we annual set Such that forward-looking uncertainties report risks are results risk actual about to and upon our Sprint our receive on

results between call non-GAAP Reconciliations of on found Relations Investor section our and be the page website. this can GAAP Quarterly of Results the we discuss in

July addition, on the the on new the and with and available The SEC to Sprint, merger connection XXXX, we statement website. with Form T-Mobile proposed contains related on the related transaction a October SX about became It and statement T-Mobile XX, in effective registration merger. on matters. information filed XXXX In the registration is XX, important

John With that, let Legere. me to over it turn

John Legere

and that, to going quarter it highlights earning before questions. to to you our T-Mobile lot We to After with to a financials Welcome we I'm quarter our certainly through everyone. coming Washington. over today, you big with Carter, take will certainly regarding and some news start to talk Braxton into take afternoon, guidance. Good Bellevue, conference about going Sprint, jump to some earnings from Okay. I'm second and handing XXXX call live merger then CFO, twitter have second

of new for Department decree DOJ efforts with we a of into saw approval headlines consent entering took and in all by the you Justice sure huge announcing the today step T-Mobile out the the DISH. by regulatory several agreements I'm our gain with a forward that to

Let a give this you news. on monumental truly little take a color me moment and just

the the huge proceed in announced XXXX. merger key while DOJ with consent we First, for that benefits decree this a on the hurdle removes delivering merger to of the April

synergies, long-term to important synergies. an and competitor delivering in for We going cash with transformative billion out unprecedented create T-Mobile. are a to have a It's bigger XG not new generation and network, the $XX profitability the target changed point bolder that while the

spending our and this of that unlock, I I addressed and to been want aspect longer and I've was still promised personally we we the to did synergies lot the just deliver make say to at we ensure on that want had teams of in DOJ than FCC. every we and a my DOJ's hoped, concerns the time goal took the that the that. D.C., Washington, while were process thank sure to

with agreements proceeds as X-year DISH divest licenses spectrum XXX-megahertz Boost prepaid Mobile, Sprint's at prepaid including We businesses to a close, Sprint-branded that for reached well Virgin $X as today of announced and have period customers, after all aggregate billion. also we Sprint's Mobile, of

promised for and are entire efficiencies is PCS by going merger. the spectrum, gigahertz X.X important keep XG fully realizing Sprint's the we Importantly, which to so

have of get wireless and retail an the decommissioned their access provide both XXX-spectrum of transferred T-Mobile DISH prepaid parties how and into divestiture will closing locations customers support customers or the use the option cell will arrangements discuss upon years. Additionally, agreed for new leases T-Mobile by enter the DISH on sites to for would access will that our network new commercial take all X T-Mobile the transaction, to also T-Mobile, network. certain and to new we are that to on to some

transaction DISH The contingent with our of Sprint. are upon closing merger with the successful

step to consumers for and forward bring brings the vision T-Mobile. incredibly this Un-carrier Now, customers this the for to ready us closer supercharged We're to new this an businesses and reality country, much a making is that important milestone across everywhere.

only December, and we have we commitments Ajit XX to XX state CFIUS O’Rielly. PUC the of Telecom approval commissions, the the from in importantly, reminder, by have from of our commissioners merger a Team As outstanding. support got for still Chairman Very favorable FCC statements utility and outcomes already and Pai, and received back with required our FCC resulted California Carr in

commitments in X first the where the XX% in-home alternative the to X same fast network in plan XG most covering merger. credible rate and including of and population commitment XX% U.S. or years; in following XG serious reliable years; better affirmed for business in America offer include: years needed; divesting for These we it's our a and prepaid Sprint's pricing broadband, the to rural leveraging Boost X the buyer; addition, ensures that and with

optimistic the steps. confident and regulatory remain remaining about We

We the California the and on are are with sides transaction, this weighed willing continuing party engage lawsuit. AGs have PUC state of to AGs recently to to work state both be filed to including in the process continue who with the that

regulatory approvals other closing our with remaining the conditions. of and to Sprint subject merger completion customary remains The

anticipate receive of in to final federal close to the be expect regulatory will approval XXXX. in second the permitted QX We that merger half and currently

Our pro-consumer benefits to goal American throughout, this the consistent of pro-competitive continue to and deal with has share remained the consumer.

out results QX into Now, that let's put dive our we yesterday. incredible

from seen results driving out, churn even in QX, low on and second business, As more records in very financials, focused record quarter best achieving materials record our remain another while We we years. customer you've impressive had quarter. set T-Mobile and our we've put probably the

eye know whether a we and the get of team's I am maintain complete been be our ability off done their speculation Sprint. the and And would momentum, incredible all working around take to with I can particularly our our to lot companies while proud this of ball. drive merger Most distracted business. there's

can execute. Our proof this the are really QX that results team strongest yet

to more X postpaid in XXX,XXX in million net customers, a we've our and the time, this we dive row let's million the industry, QX. details. said is right lead I'll customers postpaid that best we it in into before and of adds than the added interest two-thirds expected had phone quarter. including it quarters total phone taking Un-carrier it X.X of movement business customers. X per the QX growth, makes net That cable. In our a all And joined industry again, years, continue about say XX I've monumental branded

X.Xx typically And postpaid phone our customers sequentially than postpaid wireless phone seasonally additions quarter. These the Charter, accelerated and closest ever longer what is before. competitor. delivered more adds nearly And are coming in slow a and we net than year-over-year next growth in staying

down had customer by were record quarter year-over-year. X.X great a points an of phone for customer postpaid down strong a terms of total also the in beating This basis million, and care low, improvement X.XX%, XX churn an had all-time net additions the only In X the branded Not to in in postpaid real of prepaid is years. a this year-over-year. X.XX%, row. achievements our third industry. our XXX,XXX, brand QX Branded We prepaid AT&T churn and of is low network we additions QX, points best all-time branded record we're power XX our net best was providing best driven basis in ever. the of the This testament

was X% a in record $X.XX, increased a record Q a year-over-year QX fully high high for got record. Total income revenues results. to XX%, and also EBITDA $X.X $XX year-over-year; Service revenues to at up highlight $XXX billion, XX% million, billion, and X% highs, Net postpaid We hit revenues year-over-year; I've growing Next, grew X% our hit EPS record adjusted up of branded record record diluted came $X.X year-over-year. financial billion, at QX. X%. reaching up a

Now, steps expand and LTE we're coverage while taking performance. our to nationwide network industry-leading also towards delivering XG major XG, continuing

and team at both work, deploying is Our wave hard spectrum. engineering aggressively XXX-megahertz millimeter

we nationwide will ready to XG Our network, be which XXX-megahertz America's for year. first the be foundation real expect spectrum next

LTE end footprint as millimeter And million published cities. megahertz. on miles compatible X,XXX broad towns this XX and devices soon megahertz compatible Puerto Dumb than year. wave spectrum including on later million And the plan XX are live XG X.X states unlike and York June, in as have we Almost on New XXX-megahertz to launch first million for a of a we introduced cities all XXX X more big network We maps with smartphones on are Dumber, at coverage XXX with yes, Already, Rico markets, XG our X markets, City. with covering our square and XXX POPs. on in and today, XG we

will our recent We new $XXX high-band in wave T-Mobile. to we a low, million wave nationwide average participated XG holdings. in and spectrum cake, combining millimeter successfully than more also We key differentiator millimeter ingredient this wide be for of which critical will be in mid, quadruple channels options a spectrum layer spent FCC the think

future exciting it in create with talk American now. reflected Braxton consumers that guidance, outlook be more QX and our We pending very in to even for XXXX, I excited is performance Okay. we're combination XXXX. increased remain the everywhere, our and will today. pleased a agreements able that announced is in To through with up, for our confident we'll which wrap more be couldn't The you Sprint about that means

Braxton, take away. it

Braxton Carter

of income US. an and and John. rate income stakeholder XX.X%. share Net from amounted incredible Net tax to What to effective up earnings benefited were expense. amounted time and higher to The per $XXX $X.XX, a shareholder, year-over-year, operating interest or respectively. XX% income T-Mobile Thanks, XX% lower diluted be employee million,

of XXXX share are EPS XX% expect and in the $X.XX tax, whole, excluded of effective in Sprint $XXX fully tax, income costs, and from as second burdened were $XXX quarter. tax by EBITDA. rate now Note million an million per XX%. a the the we For These to merger-related adjusted before that net respectively, costs after range

included The Cost million service of reflection versus of the year-over-year, of up in Adjusted EBITDA XXX-megahertz revenues a to increased of rollout leasing service percent $XXX as a adjusted performance year. EBITDA of amounted basis the despite and cost $XXX million $X.X is just points record revenues rapid spectrum. billion, XX management. strong a X% by prior

expect of to there significant second expected, in due ramp sequential As year. continue the which services, half rollout, we in the to a of this cost was

revenues SG&A year-over-year. by as a of XXX service points basis increased percentage

from by basis headwind points Excluding relative actually million to merger-related year. revenue commissions of $XX the standard last year-over-year, from the SG&A despite Sprint XX recognition costs, the new amortization of decreased the

cash merger-related increased in CapEx cash in in by to billion to increase partially Free flow flow XX% year-over-year costs. net activities, billion. XX% to $X.X QX a million XX% operating cash cash increase a provided offset included $XXX cash due of $X.X by Free

would ARPU merger-related flow these billion. amounted Branded $XX.XX in to costs, QX, Excluding postpaid free year-over-year. cash phone been have X.X% $X.X down

stable, year. expect continue X% phone minus to plus full-year to branded We to be postpaid defined to generally relative as last ARPU

In of million or to Total customer revenues X.XX% our of losses second in terms bad $XXX of were from second continued receivables the $XX million in quality, outstanding. XXXX. to sale and debt expense be results quarter or quarter the compared the X.X% total

Now, come our XXXX let me to guidance.

be million. customer volume and of X.X to million seen lower balance This and of from and X strategy growth prior X.X X.X adjacencies. guidance We to profitability, to pursuit in additions we've long-term expect recent the our into branded takes our growth postpaid quarters switcher up account million, our continuation guidance net of million a between

XXXX, $XXX megahertz in be It $XXX to million. EBITDA $XXX $XX.X rollouts. range to $XX.X an of the narrowed XG to billion account million account network million in million billion, prior leasing adjusted guidance billion. in revenues into $XX.X to $XXX our expect from also of range the guidance reduced XXX into billion prior takes expansion, of to the from guidance of particular, increase $XX.X takes We and our This

cash will Pre-close expected are costs range. is $XXX range, guidance net quarter. in adjusted guidance CapEx be costs but expected at and taxes target is billion our will to third EBITDA to prior to in approximately the before million of high We income XXXX. very $X.X expect flows. to Sprint $XXX be which million impact merger-related be the but do unchanged from to These now $XXX cash billion, excluding $X.X capitalized we end the from million interest, be This of excluded

prior CAGR expect X-year to flow XX% XXXX, increase of full-year free full-year continue the We to from to from a XX% cash XXXX at to unchanged range.

Our excludes not material guidance forward, free cash merger-related from securitization going does net CAGR cash inflows payments and flow any assume costs. from it

XXX, to auction. related any Now, we auction, questions. let's due note around millimeter get this Auction to wave questions your to the that the period cannot Please upcoming answer quiet

ask can phone via You or questions Twitter. via

with the the on We question phone. start will

please. question, first Operator,

Operator

Brett of We'll Instructions] Goldman first Thank our you. [Operator Feldman Sachs. question take from

Brett Feldman

news the questions quick on congratulations deal. and Thanks, about Two today. the

on I'm on looks DISH do proposed MVNO existing those Altice with you. your modifications? first, of T-Mobile The their curious DISH the then getting to with with the like agreement it network? And is, on any build-out contingent whether conditions is spectrum has new agreement Thank new intend element them support you the FCC. Sprint the second actually

Mike Sievert

arrangement And spectrum. the out for not news Obviously, out that by Sure. to upon asking? your this and question against DISH that you upon party consumers you Brett, they're new back DISH go that on They're think part to the entire understood I'm decree. to DOJ. has arrangement placed is a I build-outs. contingent contingent about this FCC of really sure Maybe after network announcement build was building it. this that what's going the great made and I requirements Is could the them all a were consent to That that today. was using is get And what that's spectrum

Brett Feldman

– it you Thank the you. That's question. answered

Mike Sievert

Great. Okay.

John Legere

Mike, that, were say and DISH's comprehensive. just on might their too, release filings I very press

chance get look a those. So, if through to you

if going use to ways as full for of great we're be at you is DISH's sets the that, look of It'd acquiring Sprint, And are that well One penalties about associated networks. be DISH, the this spectrum big of is, the as unused agreements, I be. a at which not commitments, least put spectrum that this it. have of certainly, at American X.X megahertz look were will XXX with a part them, these from utilization day of before of to now the

those read can I'd DISH filings So, and comment certainly, on those.

Mike Sievert

second all the those. the agreements about your existing by Altice new Brett, really going the pleased MVNO company, and to yes, inherited was all both arrangement, companies support are And question be from of we're to

new be MVNO carry MVNOs I for they'll creating the massive be We the along any this one to of killing are forward is bigger won't a a company new deals. So, said capacity to to network with than incentive we've the carryforward. MVNOs. canceling us that all we mean, want And creates friend to this that or provider standalones. things is the

a just this will And expirations. different those Now, pricing years. those forward aspects be an arrangements, each for to piece they and to go of have is there them them, opportunity we'll through different have durations their carry forward that then, X obviously, to throughout the

John Legere

everything we've reinforce hinged over that's current negotiated agreements today, we we've de commitments network there's to has therefore small tell the our ensuring invest way network cherish done, the relationships our made can in next already as very you of – we've And that too, the that become I in Everything said in when have eightfold an about a we're network empty Yes. the be country And you FCC are that, the can our you seats, been got of network they we of with stadium have minimis capability. network. we the a a And grows X with of that's and lot a build the handled continue. have and attained. throughout overall MVNOs utilization years, network And and our are around a the case. to been the And questions increase I that. strongly as to broad the easily part percentage can process, we careful the that struck capacity, you that

Brett Feldman

you. Thank

Operator

UBS. take question Hodulik We'll you. of our John next of Thank

John Hodulik

MVNO? agreement. thanks. at did out is else couple X-K it phase tell both anything approach John, the all, about MVNO came you I MNO. areas a there a news Was question on to Again, that My today. great. that read the of Okay, MVNO regard the could us DISH. and the Congratulations mentions for in First of

or about service. regarding that a bundle just you Anything to? wholesale talks the that's So, to then ability DISH's percentage of restrictions in pricing sort on document, little And later referring or to? capacity, which of referring what were it

that those related Just is companies? are specifically, to Thanks. cable – restrictions

John Legere

carefully us much John, last how people real detail any to made not associated again, covered. unclear don't it's it's today its have. we're that reinforce But of too that going discussing sure that filings are that that MVNO. the much and protections discussing and these pricing of business through of have with we ambition be for in we're comment speak that with And I pricing that in two-hours. won't comfortable effect is on any of we're only of other the only part I to evasive. were on about actually the the Mike, that items won't the answers. It's know, very be Yes, some do make the to accretive of the the necessary We wade be only We our able mean, restrictions, to part it, with want to move what's piece? forward you we to to

Mike Sievert

agree Yes. is, years. for place of couple that's A what things. in Only with yes, One you to is a going this complex X be said. just to arrangement

to nationwide the competitive to work their of as up they design access able needs to So, enable DISH a It nationwide as to really their they're to in well. very to to to and building does question out be them through your through ours MVNOs, arrangement to other forms, a access MVNO network, build our roaming unlike a two network give own a had great set and to of everybody enable carefully we it network definitely them, all meet involved. that while spectrum use

them new So, terrific a that's a as competitor. enablement for

to we've in commitments meet made our out that building about our and in FCC it and nothing other to XG also there's designed to the hand, that make revolution that the the this the thwarts it's country. ability leading On to investors sure

able we're to So, very we're about excited what do.

aspect plan our plan we've designed and our business synergy out, pointed Braxton these that. every As intact because of agreements to is do

As be us pricing allows arrangement of our accretive to is network. John the will this that also DISH's to an because business said, access monetize our

place. asked amount about sure that T-Mobile's designed I'll have the arrangement tell that there has around with safeguards you made just commitments to we will our the capacity. out customers certain is capacity make that in You of been we've for that

with speeds second. of FCC customers Our nationwide aspect commitments megabits plan still made At competitor and DISH. safeguarded it to of very, be Every we've in time, been the that have very to that the per experience will with the XXX able them excess made and a to same arrangement Americans XX% to for be plan. our are we've enables growth ambitious pursue of the a

we're pleased with that. So,

John Legere

Yes. with say, Boost, last one, with a the has, DISH and with arrangement, year, carrier. usually stores, John, of clear to others' the get real agreement in DISH But rather I'm ability out very I've would a disruptive especially it's build credible And been on the MVNO fourth has they acquisition their positive that the the with towers wireless decommissioned spectrum the significant not network, transition that to while to that quiet, be the very capability. I some be the services opportunity of

is our our sure ability not of AT&T And detriment that to on. something the ambitions. I'm to it's should achieve and Verizon keep an that eye But certainly

I all I hear toolkit, company, tools having but and Charlie disruptive become watch, in motivation the of himself, player. see what So, really the a including, as from and a them see and to do the

John Hodulik

Alright.

guys. Let’s hope agree. the Thanks states

John Legere

John. Thanks,

Operator

Journal. from Wall next of our Street Thank the question you. We'll Drew take FitzGerald

Drew FitzGerald

Hi, guys. Two questions.

first together was in together? tell DISH any, earlier when words came it you this deal think about litigation? well, that about the what place talked this to choice little year Potentially, putting if and – had the state just you not whether And more doing. how if I a some or in on will Charlie said you'd me Thanks. agreement, you for close could bit John, what So, are now during

John Legere

part place? choice understood had I've handle Like to I'm words everybody, question sure the Do want for question. pretty the sure. I on you. first XXX% any of in you the sure agreements not including I'm

Mike Sievert

just I you muted, part first you Drew. can was Can try – more that one time?

Drew FitzGerald

Sure. with any plaintiffs, to Democratic ongoing? litigation's you state close state the have close the in place and either the not agreements Sprint while or Do AGs,

Mike Sievert

ongoing. is I Right. see. to intention not close the No, No. our is while litigation

judge. the So, how agreements a another set agreed, around week will it we'll and proceed. proceed made will of proceeding There's where the meeting be plaintiffs with when we've next trial with

So that an we no, while don't to intention process unfolding. close pending. it's But have is

John Legere

certainly of involved. we with Drew, states have And the had many conversations

to that the I many, will attorney going of suit out. were important take, generals came if filed certainly the people very their concerns DOJ that all, think knowledge by which it's the to the actions happened understand for not the before of solve

information them, is very pertinent working them. today's we'll So, very closely with be and to input

what their frankly, up quite things suit, and now. process to continue already we are that are the had us even working aggressively they state. many that have with Before your urged started through on you to states And important to

business. of course next be will that So,

I'm to very concerns the we're think of they you that confident of had. if do, that what especially big going some

no many which today's example, them, to very a and important issue. important concern For commitments announcement, this of buildout prepaid what's to And want big states, to share they was industry, there consolidation theirs. then in the the understand of with is are lifeline

And continue is conversations. find those necessary for join we very will that we'll I'm what them to in. So, confident

which saw, a just to probably today, of attorney is you DOJ number a a As this state party action as also start. generals joined

far years. know DISH As and for go, we the as you have conversations know

tremendous of to commitments, then which just then So, the process today. amount FCC, the DISH. first with with then more involved DOJ, rigorously before. We've there's And process and with passing in culminated we And with in of we the announced. agreements DISH. making got closure, had with start DOJ. DOJ has the work, where DISH the been deal and was further getting conversations had was pending conversations after one with not really conversations had ever But We had a this conversations a

process, So, a but thorough. very long

think But each files have on building I of significant year. the deal permitted and that order, that's and support ultimately the to for their of bodes second the an each close to agency, approval the in this after including two very main unprecedented that entity half federal it as them. other expert important well FCC being supporting, the and level finalization things were agencies now of had this Somewhat approving to

Mike Sievert

And we've the were not recent seen history, agencies the the John's examples, where, expert has in a closed, at have to the in anywhere now deal where not ultimately agencies weighed have way point, federal there level. objections even state if

So, the support for now that have federal deal. we is a major this milestone fact major,

John Legere

are been competition company. are jobs new And today, buildout going will the But back The to not prices going messages important day go and XX. have up, that it Drew. time constituents the this to every to up cover go hasn’t are certainly, in will to the time we're on get comprehensive be up, to go and the will

are many have those to states to messages to, that they we back to all And the the and are messages this. answered. the of be that get of those So, party were can concern were

Drew FitzGerald

question. more one And Okay.

merger you at potential though this Just that in between to you and How DISH, did at conversation a partnership. went least proceeding point some guys exploring from go? opponents

John Legere

bed a and it's strange Again, fellows. brings continuum, life

to to, There arrangements that helps this remember, that go and competition with So, DISH a we're we've things deal that beneficial is partners forward. right? allows are mutually agreed and enhance deal here, not the

concluded It's be. and was different serious merger. which to a far DISH a divest credible it's buyer, to an to than agreement So,

DISH with services agreement. happened with having transition we're course, going to this with It the with discussions that this. support penalties for enhanced. And commitments to We've an was the FCC simultaneous financial significant be both made help a of then, transition other DISH MVNO and around

So, time it's as business and well. took with, arrangement I'm and through, that pleased a long quite are sure I but they think a one get to we're

Drew FitzGerald

Okay.

John Legere

to a of on Walter favorite? to Cheng one questions have Piecyk. want here these pick one? Anybody the We want You and have take Philip, Anybody Roger board?

Mike Sievert

them of can couple succession. So, take a we in

sure can we're don't about and Neville, I John T-Mobile, deal. it DISH? to network? XG hi, talk your better asks, to robust your know, Cheng XG the define network what Roger access have approach want it you talking about MVNO comes I'm means the to So, Will full that to access you do and taking? when he's

Neville Ray

answer Yes. I is quick easy that the and Yes, mean, on one.

in network and DISH the access have XG that the ground, that's just but will other MVNOs the obviously So, coming great superfast. LTE have not great network we to

will DISH XG capabilities. to yes, full So, access have

Mike Sievert

Piecyk Well, the second reference to to to Does On spectrum about also leasing DISH. also DISH others? to asked, in is you'll FCC T-Mobile there's XXX-megahertz if to spectrum possibly the okay the the release mean from T-Mobile leases this have talk part, DISH that.

happens talks not there They're some weren't to it's it, are but going to spectrum take building think the led really it time. an be this. to using. against is that conclude this that some to they're out flexibility actually XXX-megahertz there. is up We DISH during going But I own interesting topic. able today, both but them parties interested in

out spectrum our to John as already million handsets XXX-megahertz million than reported Meanwhile, XXX POPs already. we that's on rolled XX today, have been more

availability. nationwide a it's So,

that Sprint from them maybe have over a few network transition for time, from would And T-Mobile. interest leasing that in years, so, of period help a some we our obviously to do accelerate

the We sleeves the it. in that's about our So, agreements to of today. and anything of interest down conclusion wasn't talk roll But to and were that that came there parties. announced agreed sit up

John Legere

long. were these a this lot and speculations weeks. vetted so There were for – of coming about I of There lot that will what the on questions are get went a and over might think rumors fully Yes, be happening.

we any of network. the not think to our critical did was which we divest that's one already, X.X core I that dispelled spectrum

talk There down. one sharing that hosting got a we So, network not. a or arrangement was and we're with about DISH, of us lot doing

period which is, it means simply would network for DISH we've lease not be a through XXX-megahertz agreeable our mutually it be agreed arrangement, or no a time, our would network provide spectrum, beneficial our and that's if on we and which of would being used them. there their spectrum see price, process. What to this benefit enhance – used. What do for sit transition is has to to not customers And value could there's use,

have agree, a network to good will is. network your it's all at do here for in and That's there's you of you agree So, your So, spectrum ability that – beneficial and a almost you who to for is a then hidden that's no up something this us about migration. time to And this standing conversation? them certainly, price backstop their case. for there's if wouldn't you accelerate that's a lease period their that

Neville Ray

I putting Ho's and T-Mobile tie all call is What's of some I there? and What our service? and if any? clearing your one access wave today. the for That's always challenges, about your take into portfolio Bill try heard millimeter timing, wave. ambition wireless Bill story. comments fixed Ho Can high-band assets mean, millimeter mid, So, of goal thoughts with together. through the you, combine are is new the just So, you've been our to asking low,

together those type those urban, pieces that's can that of ubiquitous a absolutely need rural and suburban basis, elements, all environments. of you in We way. of XG customers for on service puzzle think to critical come all the use right the the both And

successful recent very a had gigahertz. on outcome, XX auction primarily we So,

gigahertz. We already XX deployed have – are we

that. seen You've

We a are millimeter But cannot not you of think miles put coverage with the understands square economic. can doesn't see the million wave millimeter everybody first U.S. what just the now Pretty wireless portfolio maps. out wave I to in It's take It across Manhattan. wave carrier you X-plus work. that millimeter exciting

dialogue radio on where part needs I assumed It's come, we’ve but absolutely to and limits the come. large utilizing And recently assets some there little the XX-gigahertz time. time service bringing is clearly, we pieces, other plan. our take have we're through that's you power to bit The wave are mean, work exists. to to going already deploying going with. XG But where to customers and concentrations of of to density been use needs millimeter some people, always and handsets a of can population take

team me XXX. for and about excited happening Super my on what's

with we now cover a XXX-plus John not were, should The and – XXX-megahertz, wish future You've heard million numbers the customers, that they or POPs, customers from XX% quarter-on-quarter. I stats the both improvement say, our Mike. that's I customers and

you we low-band and it's footprint, are our truly at out which about when think moving So, the XXX-megahertz pace rolling exciting.

fake on few wave going we into are service, U.S. we we bring move very in XG as hotspots, not XXXX. bring large, XGE, a large-scale are the coverage to and nationwide year millimeter And to this not to going XG

T-Mobile and super to network spectrum my we power dream bring and So, all and can team absolute that exciting the an the look to for U.S. all me bringing capability and putting consumer. new together is the the forward

John Legere

alternative and let's So, gigantic an cover just absolutely that amount true. as there's XG, to trash millimeter said that we one capture Well, a for said. today. important wave Neville not have People part that's

strategy a the strategy would strategy. millimeter of won't It's play. of made It trillion to dead without It It fun $X.X kind and water fake. first have We was wave-only they're now. will work. a cost work. Verizon's right not in do, mover a

on. I think catch to the world's starting

the the on least gets hand AT&T other at template.

you their you $XXX least and the that for we has. a there's else nobody mid-band the put it? vision, in that nationwide strategy. nationwide have million capability this on, that I areas, look the although at low-band, AT&T, So, concentrated they don't wave have just wave in true to three the mid-band, spectrum country they quadruple over get template the if a together, of all auction. spent get The millimeter get is the needs those So, millimeter X.X they we're right? latest But of When hole think We difference template. you you combination do in our in at which believe working highly

lying, go. this about are people strategy, a clueless, and really is we one. they no mid-band not to advanced AT&T, and So, since which the just we'd XG a big clueless, I nowhere thought which confusing to their out? middle, get XGE, is that, And to the moment where had in going Verizon, hole lay template, take on

the on phone. questions the – messages the to back go Let's

Operator

Yes, sir.

the comes from on phone of Simon question next Flannery Morgan Stanley. Our

Simon Flannery

much. very thanks Great,

Just congrats approval. the on getting

Following spectrum with Neville up on angle. the

spectrum billion about spend previously a talked envelope. You've $X

net You've for after the this you then another raised already. still strong guidance megahertz? the billion the that spent Is almost agreement, full-year. XXX around your add $X And quarter, status particularly

both color. get on Is you it outlook us the seeing QX the be strong give rural? It contributors the Where What just the are it are most would year? to the some rest it color momentum? to Is enterprise? of veteran, the perhaps So, and Is some great Thanks. XX? for that.

Braxton Carter

Let me for thanks and the start, Simon, congrats.

Our stands communicated you handle to part? $X Mike, billion do second we've previously want envelope is absolutely intact, and the what there.

Mike Sievert

kick and to start, I'll Matt. it just over Yes,

business record as a we're reported, an low now. and all-time the the is you exceptions. fact one anyone's is anything done can industry, things low. not the look As probably proud on couple cylinders hit John see, of but low It’s across firing right a for churn, Braxton you that This of ever record is all us. most in of a just that's record And for the as Simon,

were throughout than history report been U.S. of report its reports four only Verizon's In today even of churn by industry, this today's all than is In churn Verizon's. there've lower history. almost churn T-Mobile. history, those four the lower of all their That means

a But only of it's thing for the momentum you'd big big, Matt, us. like if not So, it's to amplify. working. piece

have Staneff, to here Matt Chief the who's Officer, with close Marketing our competitive situation. us We today,

Matt Staneff

Thanks Hi, question. for the Simon.

strong. market. Mike the back have being we're the step in actions, where seeing our at the respond strength value all in place. nice going others look and military from it's in But total and the I coming another continuing again, market. In segments all The that forward. plus XX when I marketplace. to is from we what competitive and it's places terms mean, it, different Verizon think We've seen we have the you said, remains of our

our and the Experts. putting the it what customer with Magenta service. price, Team from at quality of look network, seeing network outstanding we you have of When the the plan, in by down new we're backed We're our

it Our this business, customers growing momentum forward. you a moving By-and-large, talking. see and and is are

down, and for in marketplace, that like mention the Our We to see are others on another to T-Mobile not growth on with quarter great churn ticking that, Business. continues up. the to while go we're going keep to

businesses. well. continue to businesses, and win continue us move just a going new small up be started for getting to as We to This is market, accounts, driver big

John Legere

I T-Mobile. have let Staneff in to Sievert. officially is announcements small secondly, the to Mike make: want back two the all-time noted Matt I that Matt secondly, foreseeable One People I to But business it calling past, had see and smartest Simon, day and that And results. was business briefly the person be was in how And it no, going, thought you for should only have every Mike record is, know to it's Washington, D.C. not. spent the

So, let just we'll that itself. speak for

Simon Flannery

Thank you.

Operator

next Michael We’ll Citi. you. Thank of from question Rollins our take

Michael Rollins

if Two, I thanks. Hi, could.

integration First, the get give And able update you're of of could or for how us close? to the any DOJ? avoidance impact a that us the transfer there's once an take process separately, then any detail potential you'll the by the you approaching DISH And close? of cell steps stores agreements some impacted can or retail you're give post integration financial little did on could how process and T-Mobile? with to then cost more sites work bit if you of And and divestitures

Mike Sievert

going. a to this plan out when be that's we thoughtful piece. but quickly. integration how the very, get I'll pleased very more other Got that than to been had launched the have And on hand, it's little of tell it. speaking with really chance we plans. We're our gates frustrating, generally start integration the it's fantastic time given a us expected we've you and with I would could

that. different and last As with in we by long-term detailed remarks, we last And fully for backed that's John enterprise value that, now have their this intact versus we're a reinforced profitability, ambitions operational goals from you the and April plans all today of versus year. for attainment synergy plan in is what that is function in out and Braxton very, year of is April of laid What's every company. very pleased that

planning we're the quickly so, the And very get running. gates hit and to out ground of

aggressive the are as how I've of dumbfound the Un-carrier. BOGO the a you about offers other questions mean plans, deal is kinds And talking and era And look? that Some to Tweet? this this But ask Cheng us, even some from team management know are These almost that leading reaction. of over?’ Tweet price here Roger are asked perks for these well, lower got to some of get he and that it asking, I kind stabilization. his rate us that questions, are have does ‘Hey, going giving – the in

like these of AT&T cost seen We they've go are capabilities and right the before. and enhanced capacity Verizon competition. to and take We're never planning lower after

And is the laid of that entire and and the together. months hit two in set last going to what for proud capabilities period. I throughout by that merger because very we bringing think anybody who this that supports be you can April early of the Because unique like looks that these these have out do companies we simultaneously. we that's goals of

plan that for seamless DISH. available network. as the transfer about turning are networks site anyway, a down thousands we it's synergy and something integrate tens to those. And any sites the that plan, second ago, asked we're is way, there'd of abandon our And at that would out to cell just for abandon laid work. question involved, anyway, this we look, these over what Neville's we you You how attainment to said least about it we as Think saying, that one has year of our doing always site in of plan make into is we'd also planning XX,XXX be two happily

the great not, way. it's will getting that of us sort are that quickly, that all was to was company certainly If If the they them. we'll of thousands goal, straightforward of enablement planning for pretty those happily assign on And the But thing tens But so anyway. of out decommission then and enable we DISH to to were to the government's not a out very a a assignable, involves quickly. get way assignable it's sites have move move of we leases. of

John Legere

dumbfoundedly wasn't make what were the clear clear not early behavior the sitting, to clear and competition just and Mike, going transaction. up. And painfully the people This, me that decisions will and Congress surrounded listening now post we're we prices by are jobs to about to will, about started Un-carrier what go this and the will moment down it me to of often, it and this then that in aha fact testifying and being several go that do going it's up Senate be it will times if

there'll dumbfounding do, this will and that it that We no that players lazy, the this and this in fat, so built become basic, going go we it's their network we've to to going think is, making core teach it transaction decided we a what build merger we do that's way. that XG go to as said, be we're no to major capability. this time want the to through how waste used capability And behave. with continue bit Mike born dumb can to closes, were very a and and to to what it. be When going about education network be And will clear doubt is arrogant to to

Braxton Carter

lower components the that synergies beginning the at debt, silver Mike, one here cash we are thing lower fully going there's But have the divestiture, lining the very and financial on intact. gross to The T-Mobile. of net fully your intact. debt, and a financial into leverage communicated impact, on and clear, on we've merger, been we're that's question flow lower going

about the in over and X astounding EBITDA structure shows healthy that the prepaid to flow it just deferred level of T-Mobile have at so quarter, capital divestiture of the there. is not now a front. then very cash also the cash we and in resulting all The profile a piece factors is turn the modeling the results And company, a that's significantly lining been, generation, a point we've significant But leverage by for increases a silver of X.X improvement And Certainly, max on very, the impact. immediate of peak combined that's so current X.Xx. leverage business. new leverage for there's is an up performed on couple standpoint, years, cash there. Our of spectrum reported of would real

John Legere

exactly putting you a they lens of leaks Braxton, financial When saw think, can Yes. X And already on one business would intact the are were to areas And billion, that the days. billion trying same synergies intact the from started $XX did few of the important last hear a lot of – very they as synergies when $XX to the and questions to for couple synergies have we the pent-up not the the have were I how answer keep be came lot the shift I they intact? is people in the a a when questions. this, where were to in them of synergies, months, coming lead transaction. up in you were. that note They see of I this

MVNO implications things: Then an Another against transaction got way understand to to becomes think has for financial several us. a Boost stream positive to XX about got you which how synergies, billion, – us, where so you've the execute certainly them. got you've You've

at got or in transaction the you've be spectrum an all will MVNO place, a either price at if you've or have a we'll company. got DISH, value of financials And have so to spectrum positive on are option yes, later take it the it. that that and that sell to – doesn't and keep that of to on themselves, You

that's think very analysis Braxton's a that So, important I pointing out.

Michael Rollins

Thanks.

Operator

you. Thank

Sheila question We next Reuters. Dang will take our from of

Sheila Dang

HI.

competitive could other to them after to a come about have prevent might you become kind any that fact partner the in really concerns any limitations with Are about talk you rival? DISH that? there can So, companies and in help of place that

John Legere

start? to Want

Mike Sievert

yes. whole to of that launch the DISH services designed be to but arrangements was DISH. Sheila, And network right set for only Sure. not committed network, of build away. has in support This

commitments of one service. postpaid – support fact, just In their launch to but prepaid to launch Boost to is not

because results federal from promised now designed for DISH. isn't T-Mobile DISH, coming agencies. plenty speeds our this particularly live has I there promised its and to customers to this that capabilities able us the be not also designed there's build the high-capacity sure in So, to to up of to and robust And important but earlier, being that network our simultaneously only increased been competition regulatory our make that risk that's said been for to as commitments commitments, kinds customers we've of it's

been around we're services, And competition. so, And while designed it in have the interested competitor. both, That enabling to it's bundle turn it resell directly wholesaling them company as It's to network that counterparty enable doesn't it's to to parties. et other protect for mean a other cetera. designed and our or that said, with to

strategically is a will partnerships that doing but be be all with the said directly. will that enabling we've aligned MVNOs, along, As very we idea of with this company

John Legere

areas been of disclosures hasn't one So, us for there this topic specific this is to where tricky details. enough or on give those filing

is to a details transaction potential we network protected no. stick customers question, defined your for are way without ability our disruption. was The I'll where run answer So, our the sake have in you The to initial to our this, any of concerned?

back to our of in very don't has will are how We've we the in fear something because fact of some the feel were point, other that sure, protected and details deal, them ourselves is. today, way at that, we entering into follow. for the and could the transaction than are for we financial this to latest be cut it but all there's in for door on But I this be turn for transaction. seen I'm some concerns a ways tell DISH. tremendous those met that just somebody can in items comfortable DISH there the And you, been a capital, raise protections to protective for

Nils Paellmann

Operator? the Should phone? to we back go

Operator

our of We question will JPMorgan. take Cusick next from Philip

Philip Cusick

thanks. guys, Hi

clarification us I get your can the update And Thanks. What to the guess DISH's the First, regional a deal but that today then the you in expansion? as clarify reflects can already can, on give DISH opportunity Matt, penetration? is decree? consent And it change on seeing scale letter FCC if fundamentals, an what how in to I on alluded earlier, the Sprint? does distribution you Mike you or you're with you

John Legere

the to you take Miller, first one? want

David Miller

has in But in are those there's terms And obligation consent yes, this as the in question. consent the on? the Yes. decree Thanks that obligations referenced for for the buildout, has there. cross DISH reference. The in some additional decree. Is decree. consent of well the that are They're Thanks question.

Mike Sievert

this Yes. each some question, second it's quarter. million And gotten to of To with distribution We've quarter, Phil. people We've little into how this in XXX footprint made networks. the our going operate our we've we our distribution well. a part now business the bit also reached changes for really

year, have I noted And may think last we our this that rebranded been able you become quarter, Metro Metro that, then to to realign we've T-Mobile. operations. by following

EVP the and all both well. all become looking that for Staneff, T-Mobile to across Consumer CMO, Freier Jon as the of commercial and we more. operations as leading Metro is distribution to marketing, Matt asked the take start and Markets responsibility our operate for brands We've pricing

footprint that performing. now And integrated really to distribution more reached of much add is how that? we're we So, people just XXX people. that million that million ago, in X.X years expanded reaches after footprint an Anything go to now XXX about all

Matt Staneff

just more rural the XX compelling I'll saw that into and we in at progress say the distribution we in great the with with plus, to Yes. Military and coming did with the buildout what when a we network strategy. the break veterans, very success pricing areas behind look

you I look and these that of what think lean be effect harder new expand one and we the you'll forward faster with to a really that I continue able as going T-Mobile, probably forward. formula that combination to find we being on move When into is to supercharging going think is to areas.

Philip Cusick

Thanks, guys.

John Legere

Operator?

Operator

Chaplin from of We Research. question will take Street Jonathan our New next

Jonathan Chaplin

quick Two Thanks. ones.

as First from factors smartest record that at longer-winded maybe seeing drove as for drove Braxton you one still it Matt, John. a – the for of a or quick these for are T-Mobile. churn it And gets? Or lower question here? churn levels Are man the good then

And I'm the as going gone long states may and the way the is. So, deal have alleviating Was be sharing real this sharing core curious to I the to us DISH It for no to to get concerns network network how the redline have. a that is case biggest a that But there's you? seems deal. that issue why?

– yes, second was that question. that so So, the Thanks.

Braxton Carter

Jonathan. start me Let

off. to you of get performing it what's our the the and So, bottom one the just it's, And better day. at line, results, always decrease our the truly for number one continues seeing for fortify network see in It's outstanding. is And Neville year-over-year. churn the look every in rollout first, we're and churning network. have that capital is intensity, really you reason number driver and just XXX, to team his where our are amazing And can just massive

on as happen into points the of and very, of for do But and that Un-carrier of bode Team all of the and churn apply And addressing that's those the with quality down we're at service pain the to you how evolution well in very service we any continue going we focused environment. a in level the cutting-edge driving America. our I there Experts. the are the factors marketing customer This that is look And very mean, is then you marketplace. certainly, goodness. innovative terminal future

Jonathan Chaplin

can it So, Braxton? lower, go

Braxton Carter

the actual to give We're churn not going guidance.

Matt Staneff

when among finally the on seeing We on XXX-rollout, a on all on our churn. best would don't think these best penetration the of customer what the same as the just thing network pricing guide the there, you we have out have we Braxton's, best getting for the goods put be amount in best of together customers' and value, we’re the of hands. is the best occurring that, of And heels that meaning, that's at I I'll knew ones most you the and that realization but service fundamentally reiterate phones bar churn, on the we the that other the

we're add not we Braxton's into and as is markets, these others expand and continue are as not we to I'll core. in caveat strong that new areas new as – the it's The to

And on little forward. the upward see newer that as in we move so, to of bit you a pressure areas can expect

against we're the of in existing our stabilize to base. plan what so, And working we're kind seeing growth

John Legere

somewhere Let muster possible human of me if moment a can – a my moment it I humility, in add being.

I that it's variables to this of set we note me the most being to churn be time. see. ahead that on where we where we'd that of think is are we be it's thought could a hand, Not driven excites But slightly were better. it getting by other are shocked only at with what important about even

deployment So, that's of have network the quality better. and our significant and we network knew would that get impact, better the a to going and

significant was and on going churn, business retail Team the And Promoter has. impact care of we just things the stores knew of We relationship three have know to that our and a our getting side, it our experience that off-the-charts Experts are those customers but that positive. and Net have, in All Score is better. not

they lead have that levels level levels to churn stay never could gone go that of to to fact people suggest us the that lead or that So, that even before. churn impress places they that

Mike Sievert

Well, thrilled with think behind right, That's said. about math John the math what covered XXX. behind that, now the just great. We're XXX that there's million

thrilled yet phones is means our potential have that not yet. two-thirds million but On there's and than there. means our customers the it XX covered by more have half XXX, that other that hand, don't We're network branded of XXX,

you so, experience. And to continues there's value the once the unfold here as it with potential combine and this exciting customer

John Legere

Right.

the made decided is again, DOJ was believe long-winded they for important the information there asked with generally what Neville's the department. to opinions you going input that answer. not say tell part create so, are issues the let as And that I a And forward. to that I will has That's decisions you And just that But lawsuit. as out be state's think when are have come this. of to I me the today they many

in were the concerns in of and states, there prepaid segment the made stories spoke consolidation say for we've would the consumer. many we and that end were on buildout many There same. jobs, pricing with Originally, we know buildout of that that that commitments the can on and which commitments, are answer. the low I low-income all we competition very on, strong also and are engage of have continue concerns of we met concerns state-level the always commitments about to market, the especially

DISH the next people the DISH. would side, make more on question that thing with comfortable that Also, of feel marginal

commitment a I think has and very has a fortified and amount buildout spectrum now a tremendous you need to so. understand. DISH of plan do to

that, capital. million a their with have You and They'll X.X that's take place. transition have they have tremendous to customers. marketing to they to services have MVNO agreement and and have assume to raise prowess, a engine ability along a going good They'll go other –

So, real a player. they're

But of Whether this transaction, real, things clear. would DISH that. on make be be that do at stronger, are full, from their taken just end nothing and wireless company Let's those another the facilities-based item can is should they a own them away viable, somehow.

to that that with the I can or as of confident that we will either start input. the them, discussing here. important we think in states, things concern be from are And one job answered answer have that them. remain I very will move be to

Jonathan Chaplin

you. Thank

John Legere

Thank you.

Operator

Thank you.

from of MoffettNathanson. comes Craig question next Our Moffett

Craig Moffett

the Delrahim? Is the Or of anything, DOJ the agreement? your wondering staff in approval Bureau directly on just staff of an role knowledge? full full And Just the support the was is approval the final DOJ staff I'm the a And if the with the approval. to done? Chief of this what from has what, clarification

John Legere

your tell to the out very, from Yes, week or about mean, and creative writing been times your reading laughter the the few that I yesterday. one very the burst combination tense two it's report in very you, a Craig. knowledge business you, I of of well done. was I was weeks, tell to I things, have have and it skills,

of thank moment a brief for So, you laughter.

aspects Ultimately, involved, piece the that yes, get the staff a the all was Secondly, greatly that they involved and opinions entire been having it to we've but of been antitrust amounts I'm in sure the every clear. where question then not we've of deal, tremendous DOJ Obviously, they involved putting sure DOJ makes the a to input, a the of you discussing But working together. greatly, in staff done. decision DOJ, based head this on those the detail how a of what with very T-Mobile. vote, time I'm you're decision and component it's all asking. place totally DOJ for attributes. just – And has know in the upon answers the not the of every take the ultimately, decisions is in is neither the gives

your I answered So, question. don't I think

Craig Moffett

answers were But known that probably and remained reports extent weren't. press know, FCC and never on initially after there which suggestion. it the the you really were we've probably to the I opposed resale in think reports, early what There true possible. it ones were reports staff as the

was wondering satisfies the come concerns that agreeing the structure I current the they the to had. of around fully staff had if that so, And deal all

John Legere

would are how hitter And Yes. of DOJ of would clearly history I on of were, also say; days team to the and mankind. I you have TiVo ever so average in the information don't leaked-about be the this I the hitting in deal in you I leaks sitting And right you, since the down would not certainly has was were the the right baseball playing if that. came be out you and any many a where DOJ, most tell of the these rumors with leagues. major

of it out coming that people writing the other – cause They the were coming the clutching With time, process skills, were parties a just will of clear the most unrest. weren't. of They were you book can that be DOJ. to justice. was influence straws, trying that They I'm your were at fun do Maybe out rumors someday. were and sure it and

Nils Paellmann

we Should go to Craig. phone? back the Thanks Operator?

Operator

take next from James. Ric Raymond We'll Prentiss of question our

Ric Prentiss

guys. Congrats,

I you Do Can this in ever update August? you decision an years here but piece done. guy from has know to here, XX get a to in us how who side industry think get you'll California them the work ago, work the the went no ex-M&A status? taken and As dark is on

Mike Sievert

pace on and was a We last that that for Dave generally filed speaking, lawsuits that pace month. details. was time the the at But state Thanks, Ric. process changed to some can were turn then

pace states time changed expectation my because the worked when of their we that was pretty California. that lawsuit, the so, is were be on state significantly they'll including And on the out similar frames filed

David Miller

Yes.

that – we that the they administrative he no yes, And this end California quickly, is would action occurs reiterate judge hope to June. that. And of events of superseded specific law the course, would course. Just indicated had the time. Dave, rule There's that in by – of sort of

Ric Prentiss

back I take Next DISH Can achieve the I'm so, your over as cost they of year? they to then can if sooner? And to the actually do achieve. about them one want question, what had Rollins take leases. question like your you reading If to early leases cost second some take as over better first, to or Sprint is come that it on third right, than and could the exceed

John Legere

Braxton?

Braxton Carter

X Yes, doesn't take migration it's of in have Sprint of all, that through the delights come a we've customers Maybe we those as manner, impair that said to network network. get going previously actually to new support way first on the to a years T-Mobile process. to quality the the that over and customers in they

So, very part cell the little on of there's the opportunity sites process. this in early

really It perceptive But payout way some modeled would does at this point. assume would be And at quantify the we've it's if it to impossible the But point. no there's lease model I mean, and lease ultimately, quantify full of it absolutely. be question, and liability, back definitely or Charlie more of liabilities, this very upside. ended. to net

John Legere

have got Well, that you do very and quantify them you that down, rights or those, specific in help associated have, can't you've but transfer with plan have a you and with sites And/or There's network hurt effect, will we there's if visibility. plan, and a it. turning which at our a and be you. decommissioning those into there him. importantly, Because you share Charles. sit visibility share no when way rights, It certain we times you which transfer you It right? migration for you, can to have downside, don't and

beneficial executing some for make that, of that have the if our retail lease letting, synergies rights you the And our way do, DISH plan you benefit don't. transfer while those you if and exactly visible. them But it's we've side, those instead possible, they you that be of be get all either On up will of longer we of the that or outlined take of need us for to we no a a cost to benefit that. have right that there in intersection fact, canceling need. can a some yes, is the if, piece them will payments to transfer of And

and they win-win, it a them be actually much up will it's downside. of to choose take. yes, There's it to no So, as how to

Ric Prentiss

in One to one. think last you've up look had to that the I found give there agreement. included Have quick the concessions potential $X concessions had billion any concessions. move was you into merger you merger? Doesn't like of any

John Legere

long-term got has still generation a here and quantification about impact And and this We company as gives clearly. bit of every divestitures, Braxton we of look something kind say mean at as us impact that's the by of We execution plan set When of this of a you're said of as as it. concessions, you the set the very confidence the close. impact going asking the lot every of see And cash the of look into plan, that bit divestitures. momentum a lot behind EBITDA the I the of of that intact. at we've got that year of of outstanding well a profits

Ric Prentiss

guys. Thanks Makes sense.

John Legere

updated with associated your anything the if And that. combination with we arrangement business and aiming Sprint, have there's with towards question to was the disclosures today, been that associated changes

in take for itself. that to seen good-forward when example. got spectrum, general say we place we've concessions, for that anything cetera. from good for you get a I transaction. with to could So, think the the arrangement comfortable as divest we're speaks that, although price that's a deviation BCA you as and a the what be et anticipated We anticipated concession, But optionally, quite an had well. can in And But with concessions a changes be in never

Ric Prentiss

Thanks guys.

Nils Paellmann

one that Does two take here? we think going. with I keep everybody – take Operator? sense more? we'll Yes, make or Okay, let's

Operator

Cowen. our Colby Synesael take from of We'll question next

Colby Synesael

Public Two XXXX. Great. questions, reach in-home the I X.X had Interest million to by last broadband it your that goal Thank Statement year, was In you subs may. you. if indicated

Just if curious that's the expectation. still

Just the some And broadband. about haven't reiterated lately. Really much synergies. strategies too as billion know you heard then NPV I secondly, in your color that relates on it in-home to $XX

X and Thanks. should billion you to that back breakout back we another expecting? the about office. your billion network, mentioned previous about sales, from disclosures, service billion from marketing, coming Is from looking that X X and be Just still

Mike Sievert

took made coverage in version Public the interesting, a see XXX it's these to look and the Statement just discussions notes... and the And through commitments years certainly about ago you and was sounds which the we broadband, basis these was ramped-up Yes, were place. you'll FCC. it in-home Interest And like all fundamental the when FCC that commitments at XG coverage smaller

John Legere

the we April. And presented as the deal answers saying, yes Braxton breakdown, yes the when yes. synergy being it million yes the are mean and to was I as we launched X.X and last to

Neville Ray

Absolutely.

that in what Let broadband excitement incredible do say think rural we about down in-home in double space, and can there's I me just especially environments. the

through impact a in had combination, state huge Super broadband in-home from the win rural XG folks, something I that's transformational discussions from this America space. that's with think a the and exciting. some and the we've of this FCC that, network obviously

John Legere

good to up have question really revamp the we're think that one. about. I It's communication is a to going something our

rural environment? exciting this. of competition, of rural just the commitments But of about decision things number had competitive we they thing but where this in-home and were the left-hand the process we a were FCC the If a trying about you and and FCC's the not coverage kind extremely DOJ build important that that certainly set of about country parts issues a rural for the broadband, turn the happen focusing competition, those exciting in-home without made, of answer that to at to are most to the different question and on the can broadband the the network months, the took for country look harming

see, competitively the unleash you penetration, remember you you have three that most jobs, as sets that. in you the after go happens then markets you okay, attack all And the look billion rural of being really but – back invest market network, years, country. to in today start increase stage one when you the increase in-home uncompetitive this this and DOJ, $XX you broadband and by announced for go now the to And items them, past the are what you

regulatory are an believing I'm we'll that approval confident why this together So, here, believe get exciting the resurface I'm And from piece think the will I things as that's those a bit. and done. together, answer on hoping I now that two that focusing now processes to those,

Colby Synesael

today’s on congrats and you, Thank Great. news.

John Legere

you. Thank

take one last question. Let's

Operator

Thank you.

of comes question of last Ana from Goshko America. Our Bank

Ana Goshko

I But you've this of Braxton, think to this probably raise to is the deal. Braxton. most money got for close

debt think you and I originally had $XX So, investment-grade-rated billion bank of secured cited bonds.

lot wanted with So, that's that for regard of confirm Two, still the by plan? timing, a of to time deal close to refinancing. to be done needs the

a your on you get the there a raise of in escrow to what the plan process? proceeds in wanted court – debt advance potentially order you is to put Or Had plan wait through So, be might timing? close? to into it until

Braxton Carter

Ana. Yes,

out. level all, So, prepaid comment earlier, disposition since the at first well in we from the year-and-a-half, as we've put proceeds T-Mobile got the the last of of the targets as business, my outperformance the

of XX% round we'll as a And this So, of. market just about conditions to coming term this in B then targets the we entry look bonds. is gave at down. new that call. secured it do But of I comes billion, just or and leverage and that overall rule a to IG primary out what need What in number billion decrease the point. determine $XX raise would funding on mechanisms are loan just not earlier that kind Remember, peak X is definitely thumb no, market I at

So, additional funding tell states. we determination you with that can that precede the is the depending second actual just the terms would through of part adds the in we how here. But this that overall to handle upcoming with work bridge? the I do on versus the it to and of close. draw costs certainly would – intent some We really That your the to ultimately timing bridge. have months the will question, the market really once we prefund make not

Exactly aware relating to and standpoint. to great The need are be actual real-time pre-funded when of is call we'll and we'll a lot news to and of go call held details we the we yet collateral, would in a to what what day to as there. game you credit be that. make up and you But – then of had had closing because to the proceeds a raised. make would all the escrow to determined, of when to be overall, attach market going But from exactly buckets we're respective how transaction

John Legere

a footnote. And Braxton, just

seen you've investigatory environment, As tremendous and transaction. around looking rounds said, your you've this times funding in at the enthusiasm

Braxton Carter

a going was Yes. We're it global reception and this. looking fundraise did forward three-week really We're with have getting to very amazing. We out. a roadshow, to the very, successful

Ana Goshko

that DISH, forma? can subset EBITDA this is Can have to That’s get what we very going associated prepaid the to correct On with follow a up? I divested are that pro so helpful. one

Braxton Carter

Yes.

have that business. not position We're on their can You comment address a Sprint. to in we would where with really

everybody, you Okay. to a for next quarter. again We in, a quarter. What very we're all what and you for us. great Operator? great thank Well, forward day tuning hey, looking of much with speaking

Ana Goshko

Okay, and good thank luck. well, you

John Legere

and tuning of Hi, a us. everybody. in What for looking we’re great speaking quarter, for you forward with what great next much We quarter. you a all thank day very again to

Nils Paellmann

Operator?

Operator

gentlemen, the earnings US T-Mobile XXXX Thank you. Ladies and this call. second quarter concludes

contact you If your may you Relations any participation. Media or Investor for you Thank the further questions, have Department.

You may disconnect. now

T-Mobile US (TMUS) 29 Jul 192019 Q2 Earnings call transcript