TMUS - Earnings call transcript Q2 2021

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Operator

Good afternoon. [Operator Instructions] I would now like to turn the conference over to Mr. Jud Henry, Senior Vice President and Head of Investor Relations for T-Mobile US. Please go ahead, sir.

Jud Henry

Thank you. Quarter Call. Second T-Mobile's to XXXX Earnings Welcome

team. Joining our our President the call senior CFO, Mike Sievert, today are leadership the and of well other me as on as members CEO; Peter Osvaldik,

you a which During this call, materially review. actual risks risk will to comprehensive make from cause in I our uncertainties may SEC to We factors number provide list which that a forward-looking and results of statements we encourage involve filings, differ forward-looking our statements. of

quarter Our well GAAP not documents this directly prior to results, results period Mike. everyone the earnings XXXX Investor on and Sprint. in to related me our would website. other T-Mobile the in of found also Relations the we over release, that, investor remind With to Auction as to for that factbook I'd now on the represent XXX historical our the I QX turn let section to to prior comment are merger Quarterly call discussed and it note or results will as can that be indirectly between with Results reconciliations non-GAAP like that spectrum. quiet of second stand-alone and like

Mike Sievert

the is It growth passing record week. gathered postpaid it leading again. results. free further above And our customer free network in to Washington extending in headquarters XX% cash onto And everybody. of shareholder did the in our net each adjusted and this while with across together of of expected team. and beating increasing energy our Hi, profitable culminate feel network, beginning halftime the increase we're quarter's employees these and massive industry this flow Sprint doubt numbers rapid great the service of value. results which our growth XXXX we just game simultaneously no synergies and the And from of flow year-over-year here, quarter here with ever. fueled and board it's is year. T-Mobile past confident Jud. industry-leading this our T-Mobile Thanks, delivering great to expansion revenue Listen, traffic be more subscriber delivered accelerating coming all outstanding fantastic so all And yet team lead merger live another Okay. by flow, the the you journey Bellevue, free and increasing the growth, unlocking the to in our it's numbers just expectations, transition is of core our all for EBITDA for of cash while and a cash than XX%, XG just feeling

being the and our about by before, today's enterprise company profitable capex guidance synergies, and while across positioning and for substantial ambitions business our addressable expanding our relationships, delivering today. all the stem leadership, transforming announcement. for investments with our our synergies the by from additions, success delivering the core XG experiences. bigger increased outlooks year we're faster growing market strong value realizing growth expectations So that are and on results I Net These EBITDA, on focus board core executing flow three you cash increasing with our customer best sustained long-term with customer brand and merger industry-leading talked

start Let's about by growth. talking

quarter biggest another on as Affairs and X.XX%. postpaid Army. reliable product is XXX,XXX industry in this in wireless the produced industry postpaid churn. best This year-to-date of government to profitable Veteran postpaid and well, agencies million another adding our delivering other include wins above T-Mobile for phone from we QX, the and our in growth to consensus. customer the were But churn strong growth all importantly, the in postpaid business, operators plan the and as Department progress of adds in compared growth quarter, retail and net automotive phone improvement phone airlines, driven including of US sequential X.X the Our T-Mobile continue nets our the key by again industries, such lead

make T-Mobile providing and customers. our see loyalty in in to the strides customers improving branded from best-in-class industry churn to great with And for continue them lowest continue entire We the both by mobile we churn experiences. Sprint our

guys, team churn achievement our And so best quarter, Our giving and the journey got tailwinds network. deliver is Sprint while is our ongoing run This the a sustainably us room is awesome T-Mobile this America's to other brand's Verizon's we've synergy-backed XG testament area. best us improving, potential churn to in our unlike higher model, [ph]. our rapidly which business customer-loving consumer lower value, and is to also as to this building allows fame than rapidly

of up secret customer is important Speaking awarded Sprint care Performance Customer The moat our US our way customers Care just J.D. among and for around Promoter team, of we were our we XXnd morning, ranking customers it's customer-loving number And XX% time. one care part our sauce Net our for this in Power Score the business. from year-over-year. the is for our

been with which the strong postpaid industry, we've is line to metric the seeing new customer all accounts, overall another in building represents watch Now growth relationships.

new ARPA our to growing is products additional drive Day, Analyst and over our growth. during said with relationships built them establishing strategy account we time services and As upon

say growth we focus delivered quarter, XXX,XXX account quality I'll highest growth. continue capturing ever on our postpaid we it at and again. profitable to This

is account growth for I've who want AT&T highest ever over to years net still compared That's share information. least account year-to-date at was the growth far quarter's This postpaid negatives and Verizon, doesn't in so year added accounts all XXX,XXX been this here. our to which

prepaid ongoing and at In industry-leading low provider net the of delivering we're reflected XX,XXX segment In churn country. in largest are the X.XX%. strong growth addition, and despite our industry of just And of we QX, growing expense customer which we consistently a in postpaid ARPUs the valuable this prepaid. size prepaid adds, record delivered despite

plan, even distinguish is core that investment adjusted in free an the continues is us EBITDA, only thing discuss converting as model Okay, -- today cash more say smart consistently Peter in tell about cash these market-leading segments T-Mobile here I'll our metrics, to we delivering financial nicely and to more a growth and market we we plan and exciting showed pacing EBITDA the in revenue flows record our deliver financial and let's leadership EBITDA service massive fully leading been we minute, financial the on XG promised outcomes outcomes. that reiterating that underpenetrated flow What's that what the while the that capitalize you to discussing. opportunities we begin fully that is new will a One are synergy-backed built results that around results before growth. profitable tap here core five-year our like is on again consistent unlock on cash before today, T-Mobile are our flow, we outcomes we've outlined growth. top-line but industry-leading consistently disciplined into

opportunities that fastest fact pace we're speeds America's network not beginning performance seven just most Already XG the we report are connected spend XG and year, our overall. And Our already to differentiate fastest and most customers the clearly get build, network reliable network the ourselves to show but third-party on the time T-Mobile that on further the as this of network. we XG. by enabled pack continue XG largest, away pull with have from to

that paid a multiple, claims, work up coming reports at their is clear independent, support industry-leading touching our from While leadership real again look that and time others the loud are usage of billions XG of to to showing measurements. single firms customer from consultant and device and are network

lot spend LTE, reason, the which enjoyed talking XG eliminated today. and remains is all but have we for and Now Verizon I legacy about of where also most on know a AT&T time that we quietly previously advantages traffic good

every speeds report, most the get network fastest T-Mobile that Umlaut's This latest the T-Mobile mobile availability. Ookla's fact, and highlights Ookla the findings best reliable OpenSignal's latest report. T-Mobile latest In which T-Mobile shows overall. is has again latest data in category to And in network the XG delivers nationwide overall addition that that swept customers

XG, covered speedy LTE at are by XG far-reaching on customers a So T-Mobile. or whether network they're and

earlier XXX ahead XG extended Think Speaking far-reaching, we of roughly touched nearly our everybody. milestone And this all this he you that terrific of to thanks team. reaches that's year-end of of Neville's range schedule, six months way. blog people, T-Mobile's our week, did million momentum now surpassed it of announced the

for network Verizon XG just as XX% covers miles XX% example. America. XG AT&T compared today -- across Our of across XX% an Interstate With only and XX% for Highway to XG,

our doing in we've our do said depth and becoming at are the leadership. more leadership we year-end, deployment Ultra year momentum positioned our Capacity XXX XG, customers' sometime merger process, duration year, to a what really XG with is maintain rolling XG We're people also the XXX because is XG what That's XXX of era, Ultra Ultra in people for since also they're we of clear megahertz our deployment since I doing adding customers. perception Verizon a T-Mobile's not XX% XG. both model. delivering as C-band the where the are to unprecedented and say we here in of average population well leadership per rapidly We of unlocking already experiences to an However, know, to cover breadth the changing. our beginning what with unprecedented pace. customers and the download seen areas which viewing of America leading XG we our And game-changing increase But superior million portfolio, second into March, that and the ahead matter mid-band to increasingly you just megabits our out XG thanks would And of targeting T-Mobile year-end, just rolling The and XX% out of download And people of half synergy-backed population speeds We're before to providing leaving this speeds increase spectrum during this with is Capacity hope just excited targeting US transformative by AT&T our Capacity spectrum is light customers to million in according OpenSignal. by T-Mobile is next combined. XG but has is as beginning seven really XX about device average to era real-time about XG. without XG leader increase XG out we're the measurements rural our era are it billions behind. XXX just will the it. up is we us continue network for

this Now XX% the of in top XX% provider. Verizon's of at metric. for as things XG stagnant over as of a their closing XG on way next ahead enterprise in think already customers, for of quickly on that we're makers decision they're looking business with customers in And T-Mobile XX%, And leader one number we're becoming AT&T. say wireless

choose to realization our them This for catalyst network of a synergies is becoming merger T-Mobile. increasingly integration. is fuel to helping on progress rapid progress the network Our also and continued

This For carrying which approximately broad We've five of launched Sprint of just second within one-third raising XG closing underpenetrated customer quarter guidance at the unlocking improve XXXX. second network. to to the the in customers the their Internet synergy And our network. Sprint quarter. traffic beginning merger. Sprint now the T-Mobile to commercially T-Mobile we're total a of progress offering migrate this and on continuing planned, We expanding into the all includes is the quarters already we're our XX% And experience, T-Mobile row, new also to the important. of network as and Home is businesses. moved customers key This is synergies. for We're

demand for at and already We we're this to year cable ranked target great our third-party see Internet Magazine with actual times publishing this continue of for And Home put us likelihood demand product recommend. customers where on our T-Mobile modems by satisfaction even it's Choice Readers' exceeding track customers continues than satisfaction including seeing provider Internet earlier every supply to for and year. customer to recognition, Home recently higher Awards, PC is single XXX,XXX overall

a We're platform and helping core For new significantly We've more core every best week. discussed kicked as enterprise well we're on and on government, markets well wireless, and network value nearly early I of press initiatives Fortune success releases smaller already add mobile edge from as even off areas, activations best it though networks empty value, are XG in reach taking customers track offers. households. year. Meanwhile, for from addition, rural as one-third beyond focused The quarter realize major issue in trial make are including emerging smaller we as already compute, about exciting and last up But QX, growth our areas as XX% in and points share technologies to some account potential programs earlier. beyond customer up these built which XX network, it's such seeing well, best with about of And don't upsides we as creates XX, wireless. our areas our super-exciting. on our plan. plan is the formula private urban in enterprises is and building markets here US areas to new rural initiatives experiences which a our of drove of We're to postpaid to in potential distribution

into service free the if the you in want moment and in another team to growth flow get industry. highest and through the Peter revenue industry, to thank the growth remarkable ready take highest to quarter, So, I to delivering it take while over a EBITDA adjusted our postpaid I cash turn for financials, that growth core our to customer translating delivering

We schedule and reliable largest, ahead fastest seeds merger further planting our XG to the our success. network, lead to execute playbook expanded our with of integration future synergies and the we XG continue unlock nation's most for

So, okay, you it Peter through take to turn to let our the and over financials guidance. me

Peter Osvaldik

Mike. Thanks, right. All

playbook. to again in we expectations We winning have QX as we across can see, you on the continue momentum business. As delivered yet strong beat our

best driven of by interest billion, year network. purchases excluding nationwide $X.X by to from investment revenue Free with driven the costs were continued interest, equipment, customer was benefits amounted a $XX.XX, account from expenses, deepen capitalized were a reflecting roughly and let mark continue XX% up billion million results. the $X payments performance our expectations. up than and Boost cash strong $XXX.XX to we Both while billion Net costs, property year continue $XXX service a So also was even realization, me relationships. grew Net up we year-over-year synergy realization. for operating of phone industry or QX, an to merger scale basis, as $X.X significantly revenue of billion, as year-over-year amounted to ago as XX% was aggressively for ARPU realization. Service merger-related lower ARPA, both discuss the Postpaid and are grew per sequentially, synergy in EBITDA by which by which X% record consensus diluted up services an revenues MVNO customer driven merger-related including a operating of earnings synergy $XXX $XX.X $X.X grew flow, ago, cash or foreshadowed. higher to and and the capex service billion, profitable also revenue we Postpaid a $X.XX was XG sequential better percentage swaps, on briefly and year-over-year, gross cash buildout water $X average invest adjusted our continued X% and account, burdened primarily these and continued the industry-leading for great growth. million. cost Core SG&A in share normalizing delivering income of excluding low X% fully billion, as we our and of per provided from activities growth of settlements by rate was to of

setting dilution an approximately grade the of investment QX yet the X.XX%, to issued in market postpaid including Amazing year XXXX. notes the yield proceeds again to tailwinds to than at $X per be an And We the capital. record including we expect roughly continue a May, with sheet tail to service phone ever retire lowest and benefits offset underscoring interest lower double customer Magenta cost average an notes lines goal Max premium the by account. compared around execution all senior remaining our deliver for expect strong high towards and five-year continued migrations of adoption, XXXX In tranche, cost from structure. the results. rate plan our We aggregate debt. to less capital to by progress of a we ARPU continued all yield from growing rate for our the Overall, to three as be of balance amount these we coupons our in raised of revenue of billion Sprint momentum newly team strengthen partially used X% full we

touch our from on beat quarter let's raise and momentum for outlook T-Mobile, XXXX this how Mike So another impacts mentioned. with as

expect driven merger promise mix Our This net guidance and discussed OpEx to in assumes now total synergy percentage rapid the $X service are and of million, reflecting by EBITDA the growth. year. initiatives We $X.X from end our us, and net range the million, net growth $XX.X be higher a the now expected total and reflects in investments between increased our primarily of the both postpaid between delivering half. the postpaid on ahead now prior profitable of and between to our growth in X.X low additions be of expectation additions postpaid a half million as Mike expected network $X.X revenue to be share-taking billion simultaneously adjusted $XX $X.X phone towards expected top and of also while continued billion which higher $X.X that second additions growth of for million second billion, above realization. opportunities to we activity the switching guidance taking prudent our as profitable progress is Core continue XXXX, synergies billion of in the continued

expected adjusted half to billion prior $X.X to guidance now billion are range Net split $XX.X with evenly billion, up be $XX.X to expect cash billion merger-related provided costs, billion. payments $XX.X of between $XX.X by for our and in including second to in to taxes operating $X between billion which of is from QX the QX. costs, the merger-related not relatively activities, EBITDA We core being before be continue included and

cash capital from reflects capex payments securitization. network business rate XX% to effective expect being our integration. improvement original we now benefits. expect guide We strong at $XX.X the pace generation billion, momentum between to levels XX%, billion free for deliver prior $XX.X deployment share of assume end We're including to investment. proceeds increasingly plans flow, future on our significant our our $X.X by to billion cash tax us ahead be range increasing shareholders, $X.X Together, to invest potentially to free now and our in $XX.X fully between Altogether, which any to to not cash more driven cash for than billion, to of finally, as including $XX this to continue substantial in full strong robust state be continue our execution enable flow be All This results significant primarily repurchases the and to with of from higher material does year the expansion tax And our unlock high XG in the the versus of prior network certain our costs, we and in and up guidance flow. track billion funding our value right. merger-related billion future.

Let's your get to questions.

You questions can via via or phone Twitter. ask

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

Operator

question Street Jonathan [Operator Thank comes Instructions] Research. And Chaplin with our you. New first from

Jonathan Chaplin

Thanks, guys.

on an can overall. of get understanding the would with I more impacts more the of this some reasons wireless wondering be would new context on of from Just great Thanks. give you AT&T that scenes to deal? the from It context deal of you relationship But and to the think why got get mechanics love how behind kind you I'm go. they've little the industry let us sort bit a DISH one me. some you that also,

Mike Sievert

Jonathan. Thanks,

in me First $XXX, DISH. of all, owe Peter, first was about question the fact you

couple out point a things. me Let of

Jonathan Chaplin

predictable. I hate to be

Mike Sievert

Yes.

had this. a me rapid Let of in plan. One want particularly is, presented our our about sure out plan, revenue already that into make declines I to we point when people you for understand, factored we understand, things DISH couple investors five-year

that. little of I'll so sure rate. I want But run you the in thought. that's make go faster kind It a it. understand we get And to had to than could

than for a done for number rapid don't at that vacate no would at have us make that build their on in to And soon when as there's right ours plans. have can anything other reasons. their of a a And we One, a DISH. our do them they about possible. so secondly, word of observe knowledge and drag reasons decline as over customers We took facilities-based that we lot we operations we network and

much all five-year so it, period. vast our all built DISH out revenues into our So in planning that end and our taken of of by of we of by horizon, was plans that the our them had rate, so planning in majority substantially end the the run the

that up I to Now, our it's we that anticipated of our network. development this as than well they And moving faster plan. opportunities clear. AT&T with with gaps possible want some move some off that will both make in couple And are will financial in as even things a open sure

going in you hung up thought, up potentially when manage you like than future growth, dollars have and got to EBITDA, in billions in a case, we've and there's we that couple we at the got bad it to for in opposing reasons at faster you, it's we things five-year learned the long-term reversals DISH to a communicated And manage. the the look in balance every one guy Or other their get guy billions you've year. some that. that. sheet. earlier coming opens bad When this, moving good But both this opportunities. is cost that for of this all, example, of carefully of looked our and we a time I've off of and on aspect in you've great every at wireless you of are revenues there's on medium-term Like today First plan, AT&T's hand, guy here networks our reiterating

more when to management things that importantly One that the right open see that's is going up of move our off away but network, attention, we capacity. they both of

don't are for the plan Like, network where available things by on so to going much we predicated paced many example, to our the we're think demand, home going available paced And be be we're broadband in by capacity. so capacity.

share is opportunity the faster. our capacity, plan One, So taking, to team there's of we our in us ability going say paced after front of in by customers or we enterprise at do it's that offers allow available where of we're gets to in focus put question to Or of taking partners This premise we displeased, you. we with when couple new up. down And bring to the what share because to put ultimately network. that ones. respect of best, look sort wrap something do them. the we that's are always for ability is an to on really and been here it, five-year what, to our get of ambitious and knitting and great front wholesale double premise like not this core our go and I'll your core existing that which things a building DISH the

here, us, or want to less, it's the they So, that extent them. we're to more up

single both with today reiterate are made promise our every in And here every to at after and our the carefully And growing honor to to and to we core five-year and will We after we're them working plan. made honor to business continue that that to partners. we've you our obligation core government. every get going overall, obligation it looking we

Jonathan Chaplin

Mike Thanks, Great.

Mike Sievert

You bet, John.

Operator

with Moffett Craig And our come MoffettNathanson. from question will next

Craig Moffett

deal. significant to you to I'm quite what the deal deal just then, the will or guess, from? more willing than DISH the Can in about growth what, were when mean, deal you negotiation? duration you go the for duration we extend I growth Where's just part the X because the $XXX total subscriptions. more how going phone longer just originally And growth time. back think market and sustainable be one to was you of I about cost just you And is is that question. the signed in are now, growth may you talk talk how general population offer it willing a kind to long? times coming bit the Hi. a another Can DISH the of a that's that seeing that's I what of driving rate you all were

Mike Sievert

Yes.

Let's or to in I both those. add it. Peter to on John then, jump might ask And

of the think the of obviously, it's wasn't As that I with something that to our package. looked one had And for merger -- agreement, operate it the planned business. product everybody highly a remedy business Boost knows things, in We our negotiated a point arrangement DISH -- to built plan at and this and is we out is originally. in

-- to was I sense, I'm between that of much communicated together we it has DISH. as DISH And in move their have the AT&T. between possible but we privy what DISH a as sort had package. of part building shorter-term thrust remedy than happen very their AT&T So to That a negotiate -- package agreement, and a always facilities-based were network for what don't It had and and meant really had interactions did We them in onto we've in as for to term. not on to this. saw have Yes, customers fast comment that. after a the fast immersed reason. interactions was and the Because certain with the that remember, it as get was remedy their intention. revenues own I'm possible. it

or that know. enables not. asking are that this don't happen see whether still we'll some still I or And

check to have with You'll them.

to it want forward, jump of As going what to see in? question, guys second one relates we'll you the

Peter Osvaldik

Yes.

before one know I on more just have, DISH jump me we $XXX. in me because it costs Let

a we but about the front down faster in And put the with multiple right, was markets, of The rural host really seeing from deepened Day. Mobile from we mid ARPU virtual what DISH's compute, that today long-term expanded relationships. perhaps We from in around, I have of been giving you, customers put included line Analyst as plan item. decrease we ability Edge questions ARPA Analyst reiterating would rate. there we've $X things, encouraging just own are coming billion here competitor $X.X there's that the extrapolation some on also, off, one some talked of there already out it's we billion we at it we from an in a to, other that what's and that assumed the in again, had successful and a you're be the out either take guidance Mike there the to of run dilution account the that is impact. is And ARPA slow build is faster ability and of has And that in Day service that prudent currently? stability revenue some as facilities well, growth smaller said, here opportunities. And than deeper out questions think we're we as am And annual to to assumed things a to-date networking, Mike success would less the their plan upside I XXXX whole an as say perspective, and perspective, grow already new reflected in DISH a ARPU the But on areas you. in as and the because was relationships, alluded factors. rate on in also XXXX. basis go cost

on the to way mid- questions here in reaffirm down in flow. I see we're all the guidance, absolutely some coming way. free and to So everything cash long-term Twitter that

to put to job we're and our plans team. make wanted them. that's why there. focus We the was beat out here things. And again, of prudent just is reaffirming And this So, out that's then sure that

Mike Sievert

saw see [indiscernible], we upsides potentially. exciting then very we still that the And

own a this is I all So as this lens our that business. it accounts, everybody's what asking and only of relates us have know to on

focus because account metric a making we earnings is accounts profitable account tell what much growth of last the I overall my on one sort understands season, are everybody relationship, and in all metric. is. of great we're to on to One, This an led growing go on in T-Mobile all so, quality there service history. that was XXX,XXX you And are industry. revenue And billing can't where growth, hey, things. accounts I last postpaid focused can growth And over we're so our is, year, revenue few normalized for biggest year. the some as again X% created probably somebody far quarter, new they the I quarter sure you you service are revenues this them a best it's the our not And on in on. XX% equal. but that of overall heard our side relationships, during important And my give service would porting things new totally remarks really and that that competitors the say heard said, are. focus

our to postpaid prepaid us some of so, but there's There's of why revenue hearing best going growth. on, EBITDA And service focusing lot want the transfers where on to relationships the with profitable I and about and overall that sure knitting deepening growing Anybody market's coming from? dynamics, want some there's in one that to on [indiscernible]. you're say make relationships account a result things pile reasons look, of it's are

Peter Osvaldik

I Craig category. thing postpaid only -- gambling prepaid the yes, perfect a add, to would category from transference is, there [ph]. The Mike hi -- that's big and the think is I

just big country, and prepaid. putting you're much prepaid a industry up space. in is prepaid, the lots in in in happen postpaid terms excuse of at me low a you're what the happening on another impressive. economic you that leading -- entire really our on that postpaid in the that a postpaid prepaid churn macro into seeing phone from draw more perspective more seeing perspective, of from XX,XXX think nets and people record provider from the specifically moving prepaid that's growth into our lots that us seeing realities and industry -- on macro are about prepaid incredible having which the being much makes And You're what's When based

Craig Moffett

Good.

Mike Sievert

Thanks, Craig.

Craig Moffett

Thank you.

Mike Sievert

You bet.

let's go scanning see to in So ones the somebody you back first, phone. coming pick them let's call then can another two We those let's do from on one the the or phone. And of out. one if to want But if Twitter.

Operator

from And Goldman Feldman next our with question phone Sachs. come will Brett

Brett Feldman

Great. Thanks.

Mike Sievert

Hey, Brett.

Brett Feldman

was churn a quarter. remarks, So, pretty during your you as highlighted this solid

often process? it real how how continue and base go churn way process, the with look is, through those? observe you're the that you function go correlated moving out in as can customer among seem And you like to customer through are customers? as that there making you. a improvements going Because legacy you step think that get the move as you seems through along you to we to the are how low of points Sprint this Thank what here of hitting the T-Mobile the be quarters be go I at As couple quickly focus over into headway those great over, churn kind base, Sprint can base transition so the next

Mike Sievert

traffic? of of the really create destination a be that Four rate their can event. you and the All also And We're delight, discrete improvement. their adding destination actually side. bumpiness. churn there discrete separate And thanks, By Brett. separate mean, turning migrate migrate migration. them And of migrate integration contribute Three is, ahead year brand? But be we when to you to? their a critical you Yes. And our is the when have migrate some do their can designed terms the lot attached We're be the rate you the a it the events. starting remember, through store process in their plan? do this you do discrete ours, of these but way, their side like schedule. relationship core comes when -- when network Because we're that'll progress. long to this to time. T-Mobile able of that an migrate are through bumpiness. Two substantial capacity to is, finally, do of can left promised they're the in some I it is, when is pleased work them to network biller? with telling next events portion a there do account create down mostly network we do all will on of One that And is, when start plan do.

model opportunities experts that ramp with serve people will pace. We'll up where team start sites The net here down months can to not with All -- a we looks will our we flows. us. be happening be simultaneously out those netted there'll to acute simultaneously. ramping billing to begin and turning doing the exclusive network we're So we But you will like And way begin overall, will stage to so some a synergic those start faster doing next XX concrete pressures. over at get a of those entering brand sites start really it migrations. be migrations things that are keep opportunity

put And over just of going. see time, lots customers delighted and all and so But those Sprint around love same it's with opportunity we're far, an we it. how arm to at the we're

Brett Feldman

I whether don't base. customer there the a guess, you is to the the Sprint mind, profile churn lot the base in follow-up. If process, questions Early quick T-Mobile have has the a legacy of of about potential

the Now can that that and there? to with been what of base those latest match get us? your what's long-term historically think you're churn for quarters some that profile several assessment you've Do shown a close have in while, acquired customers or you you

Mike Sievert

different Sprint when we there one ways is, Absolutely. that kinds customers. the of you of situations underneath that look are at can of And look

plan on to their network. data are have For who the is most remarkably example, was payment their given is who that a people rate and T-Mobile already device on churn into And plan, of terms happily great fair them well.

our we base. so, And that see situation in

T-Mobile hand, from of have higher. still they're are them numbers prices their Tuesday's promotions a of on we're but and situation great at plans the XG best us included a happening of to experts not that in base. device taxes or way our had a and network Yes, a On Netflix and palatable the fees people jump that's job rate and T-Mobile the only of us less that's and ball. variety who course plan those team way with raising country. work, through with is in the the to so they're relationship kind and care device to the other churn And welcome working And them pace, our

Brett Feldman

you. Thank

Peter Osvaldik

was that the plan over point. This And close medium-term of the areas at Brett, Analyst one is we to the opportunity to where half Day those gap really your T-Mobile. to in highlighted of

get that next period we T-Mobile, So of months it's right. of the this the period rollout an this through all benefits opportunity, to extent XX XX --

we to base. that As maybe the Magenta alignment closer period see during

Mike Sievert

the plan. closing into could only wind Yes, that's up gap. nice being That what's a half written upside, because our

Brett Feldman

Great. Thanks.

Mike Sievert

we go [indiscernible]. What are to we seeing back before on the Twitter

Jud Henry

adds little postpaid one it's here, great have insight I'm which deployment, I lines, bit Neville -- gross questions X.X-gigahertz on couple could and in sure got got and you've Well, a about good a about while we add hit phone some of think on. which

Mike Sievert

do He calls just versus anymore. digital. digital the doesn't He's

Brett Feldman

Okay, fair enough.

Jud Henry

You've got in questions. multiple

Brett Feldman

[ph]. way That

Mike Sievert

it let's Well, read out.

only geek see about we years in When go out it's few start. our cash that Verizon level translates impact So, POPs move what about a the feed, Let's then into The between to covered one XX-megahertz where flow No. long advantage talk everywhere? people how it some because but guidance? of DISH talk not pretty versus to POPs can that, does and where or how you and an AT&T the months be XXX those megahertz in can XXX-megahertz to deployed on only markets? translates offer to Why Maybe are X.X-gig there term, free going. is POPs. we next difference old industry into megahertz and we're will advantage,

Peter Osvaldik

Yes, absolutely.

we So, earlier XXX basis. the solution, a with nationwide mid-band if is which Capacity on million people of goal solution. Ultra we XX with Ultra claim away XXX already pick covered an million comments Mike's up end-of-year our in covered million With people have today Capacity from

our very mid-band it's XXX spectrum that [ph], of there the the about spectrum we're in category. question, average be targeting ability XXX July. best this with million. there So on that's we're megahertz out the across footprint, is megahertz the your will to I'm progress point available in XXX spectrum, to And the confident X.X-gigahertz close, that's Walt of hit making super time XG

they spectrum point in contrast And the holdings, have and that between C-band them, So to-date, AT&T you to they're megahertz, compare XX if what And covered that's Verizon XX. XXX people time about million AT&T talking and in the have Year. New announced at Verizon exciting. XXX and some

AT&T they And will more So as and lead when you a years. it's lead. available, we good the and is when is there end of it's and compound try durable the tranche. get that C-band obviously that and second sustainable match have year coming we we the available the and spectrum footprint XXXX news this what in do into by the Verizon the spectrum move will massive

of million the Of end we're of the course, is, at POPs not spectrum covered XXX get XXXX at too. at important year. we sitting C-band end piece But the this

then to mentioned to million the XXX-megahertz position a end from is XXX-megahertz megahertz. and at Walt, 'XX XXX by spectrum covered mid-band to And question, of you of XXX goal your that POPs be double of Our X.X.

leadership is to Our PCS of incredible that and for up our match. Verizon will for mid-band deployed all Holdings. AWS have plus spend set and AT&T many This position an from plan that XG years to additional trying us

Mike Sievert

a question. expecting follow-up was I he is forgot Twitter. on I

Okay.

good. So

that. after and we'll ready Twitter get phone for the to back go one Let's another

Operator

Thank you.

with Our JPMorgan. next question Cusick Phil comes from

Mike Sievert

Hi, Phil.

Phil Cusick

Thanks. Hi, Hey, Mike. guys.

pace of Can the in And and that? should on tell similar growth? part customer that home noted increase base you quantify here? the Where for the you by T-Mobile You quarter that that Thanks. us are can from what factbook was contribution then, business. and the on in the broadband, there size you driven phone how in was the

Mike Sievert

big business Beautiful. it we're for on Verizon delighted the outpaced groups. fantastic, churn. a business. I even T-Mobile It's on seeing over am Verizon leaders this turn what of two with just those contributor. to We'll outpaced quarter, We

what's wonder broadband. talk about and and we'll real. about and for over business. in flip whether people Mike, driving you real seeing can So it, We're talk then we're home what we're in for Maybe

Mike Katz

the what core connectivity really is you about really postpaid number has I'm but from And still this focus core connection enterprise, quarter. our the going both opportunity of all if opportunities after in Analyst saw we talked pleased from the been we Because Day, revenue. in as subscribers Mike. look largest Thanks, also at opportunity. with

very we've on strategies really leveraging distinct And do been to there. we've that. share go focused So several been taking really

that XG, touch. have foremost, that network. things competitors it's huge and now talked network. XG its right the got the this And We've now with all just in enterprise about in a matters that And we First our Neville space. can't right advantage a lead distinct

with we've that they now. also get it specifically when conversation -- simply been value. into and And we really enterprise. focused with win right side, side test using so, by in simplicity win get testing to XG because to We're really enterprise, started us we around touched using And disrupting can't enterprise, we be on in

us straightforward doing heard of that you're solutions, WFX employees, thousands that we've space more that we sharing. One wireless, it's talk is incredibly when and fact across much you've with a enterprise see simple, core the earlier favorably still lots proposition. and the in seen things come the come And complex of in when more value launched enterprise of year complex, manage it. how we so we complex plans much offer tens see really pool when respond third-party in And to -- can enterprises hiring companies

in you double-digit lower this postpaid translating are incredible into So, comments, base and doing the revenue translated both churn been We the again it. key with customers. the is Mike those said, heard that and saw total year-over-year in decreases mention sequential opening And some really like beat of Verizon And we is that adds have from we're year-over-year really resonating our the in network Mike growth where both than results. in quarter. improvements stuff and into big postpaid it's Verizon

so... And

Mike Sievert

about on not just side, overall terrific. done. the Well talking overall. That's but -- T-Mobile blended, We're blended

Phil, why here with device seeing? is is is just This on in leads don't capacity gates. by of Draper we're Dow about capacity that recover what one demand. to I'll We're your by about And exciting by experience a does as going one tell of my to all the answer from the sure but businesses. be it by things pleased us like really insights to our demand. be paced going the Dow, this of up not for out too. of And Dow emerging say seeing. tee COVID, we're part And the our home is what minute it look broadband. as pretty question, you're second Your of we customer early But mentioned I DISH is network is way, you that,

Dow Draper

mean, households launched you we is what echo enthusiastic customers April entered in XG this the super Home Mike we about is a early really basically the for telling Phil, Thanks, positive. XX to customer the customers 'XX this And about as And talked thanks first million earned and business. one our and we've in started it's there's with previous is then said, we what here, are Mike. Internet that we -- And off, pilot. us as I we're days really -- product and because question, really with what year satisfaction about officially XXX,XXX service.

so in with are scores see and that. bottom -- get next of really to to really article We Our so high satisfaction caught the it's working for up lot we second up results nice great of in in in And And think the barrel also known a then that. catch quarter. great done the we're seeing translating supply what be is, that are month. going and demand outpaced customer customer an to Magazine's we've the things, metrics basically here survey that's to we're back outpace of the that's and very industry Choice is really, PC it's to satisfaction see Readers to

customers. year really we XXX,XXX so, our to is, And aspiration end And home feel good means trajectory. that that with what was broadband about the

Phil Cusick

Thanks, Dow.

Jud Henry

on there think on, and the goes seems -- will of in touched color launched. go about you he lots offer, given stellar prepaid anything postpaid, thinking the we to triggered that comments about go half couple we is which any prepaid have of -- yesterday's prepaid just this prepaid given should resurgence but from I aggressive on And churn. blurring drop amazing in aggressive has is kind here this a to there offer Ho, a Bill prepaid second on

Mike Sievert

from We see Internet. that for to It absolutely to by on everybody. One need it leading rich also. And said, And on That's such held the plans. their to look, just of only to it's a nation's experience sure for remarkable nation's offer connection ambitiously fast a XG them the pace seem people rate we of as And it's gets but even us XG chance not From cricket, at to moving for them network this XG it have booster many brand incredible Galaxy important connection. everybody the network. hey, a company, -- an plan, so for that's that's new an way, great is things, postpaid to we people give have don't And prepaid to give for now, for prepaid right advantage them because switch be more them to only for you of we back. one, day also introduce is make XG growing phone. leading with important. brand and And really a and be Samsung we and customers a to don't phone the their we're believe XG, never the just we prepaid customers. has to great to many a

certainly all come XG offer, fantastic on people That or that's moment really it's to a our a so, from we've anybody network both it's see this-XG leadership getting major And seen and prepaid is I a the about brand. contributor. lowest contributor ever a ever And leadership to celebrating churn and what XG seen is has network think about.

the to back go Let's phone.

Operator

go Mitchelson we'll Credit And with Doug to Suisse.

Doug Mitchelson

Thanks so much.

remarks, year. of half prepared the the higher expecting switching in activity you're mentioned You in the second

something entire So beyond Neville, result, a be be seeing more is implications back the might into for the you delivering will I'm that or in churn to years that anything for this that capacity that software there. that Are you fixed capacity? helpful. use, -- is will that is product, security you're curious, go and talent would the the you and putting suggesting of since just demand environment updates to around, on are spectrum then, higher things beyond constrained there already be doing touch wireless spectrum And growth use going industry a putting versus powers there deployments be are for go as the again, Thanks. sort in there happening beyond not the to new future other capacity drive by

Mike Sievert

asked question broadband -- maybe that opportunity other enabling multi-billion-dollar seeing we which equation a to you home cases? you're we'll all start is funny, hand we when going the I'll us the is that that did It's what of then How cases? of it good to is your the home to you're but wireless The asked about often faster one actually allow about now this opposite, So back anything question. I of capacity, and years, it's the because mentioned it first capacity up guy. Neville? the And all question comes incredible high-capacity is on what go apps way why And you Neville, earlier us really building these opposite. converse And get to use fill XG XG. talk capacity? are killer to of to that's and up use important the Tell please that broadband whole it's are go can the frees you applications.

Neville Ray

role. I we that sharp contrast the I heart that on to customer a deploying XG which fairly which of we opportunity United I I all mean, mean, right. talked it's hitting a messaging but position with States, is of for pace the the just of the corners love the you create competition. outlined are spectrum, segment think base for our our we're And going of also that really prepaid and I And Yes. part that in about, obviously XG strong at is is the spectrum.

to rural position up town us in-home advantage areas. that's I and and those at enormous long-term for incredible marketplaces and And a market, into capability into an is going on opportunity America capacity those Going small think capability market to capacity going XG broadband. going open That bringing pace. in

application do It's pace we a set the and the just not which of it's how spectrum. and it. great at So of where

XG capabilities look piece can in other a but out XG that space. to that the now not secure efficiency get beginning. right, really at very we just the is think, just bearer, we're I mid-band the We're And only from beginning journey. and the XG to is and rolling And capability LTE of too spectral and There's very future and features the what geeky, if that capability the can with of in rich roadmap we capacity XG with with improvements capacity going radio too. enhance decade we that's the could you what over bring. to plus at material come happened support network. a a And and our

especially So, we're you of the especially we'll but add all the factory bucket Mike's fill an with which this we're And up pieces that all opportunities those capacity This comment, is XG excited incredible mean, in the to critical we those in be the first near-term to is going country that building. five out together. about I three, where four, across major markets we opportunity next roll over the make and start. years, the can

Mike Sievert

All right.

we're guidance seeing? to up second lot ambitiously, the to higher what compete to you compete But of I sure And in of new was it to is to continuation half. broad second if phone of mean, we've we've with that is competitive. Jon, and we're all is I'll notwithstanding switching launches. usually trends variant fund together, big and it half the trends the and additional our of but switching up. in plan prior seeing say you're little A question hand Jon. in you first wildcard. opening churn seasonal. tee don't Your about a second made years, bit which And do generally a a the churn. This the higher then had in of make important that half a activity the take why profitably, on like look time reasonably period COVID dynamic year, with Delta there's But this course fall

Jon Freier

Yes, said, fall year, a that's exactly big you've be more perhaps versus seasonally but typically what you in of I typically got that's you much you moments, the the timeframe. period. smartphone Then, have [ph] premium of want course And Mike, this holiday have fall have timeframe, know, then the last the like never will that you half prominent to introduction in year Mike year. a that second a of a big say, moment moment bang SCOR in three

So what we're seeing seeing reopening. continued been is, we're seeing that. We've a

last I think New places are those are and then I said throughout in quarter California and reopening. is the reopening. there that of states Florida that like those and still gradually some like big that country York still still, and other quarter We're and last of states that even seeing terms gradually Texas markets some places some open were like fully

know be don't is to in whether Delta any that expect a might or post-vaccine just position variance We few that. of able manage there, we're ago, the kind be said continue. well moments going out but environment to Mike Like to to that

we We to not. pick they the more us that in of is much activity look most. at in to win look options what activity in because the there. shop competitive kind versus love first their prepared We the space. market they out that And want T-Mobile win to T-Mobile. year perhaps at there second to switch, them than when expect people love in more see We're we and be evaluating the there we to half. of more That's that the half there where That's and

So we're excited about it.

Doug Mitchelson

Thank you.

Mike Sievert

All right.

You bet. Doug.

the go back to let's Okay, phone.

Operator

question UBS. phone John will from with next Hodulik come Our

John Hodulik

go and tick along local in that in far are terms about, How the but eventually lastly, we strategy equation with it distribution? to with in Thanks expect through. in you distribution adjusted to talked through are, suburban should seems guess, how cost you? in the Okay, increase synergies, And or that either acceleration in to investment network number? And expect hiring expected has accounts increase along getting of on we to back Hey, inflection I rate and it investments that see third phase with of do [indiscernible] up? we there talked Thanks. let's guys. some see investment these continue see we about great. decommissioning Sprint taking and Mike. to EBITDA Is the go rural do quarter. the especially that high up more? the the run on come ticked the When accounts and then that, that this Maybe guys that, of and sort contribution going you we're the start to new down How can

Mike Sievert

a markets market distribution, just little inning. the and we're way of seeing reputation And yet, new lot first things in Jon is, opinion, around very It's on I'll of it small bit. to around around investments inning. where all, at going distributing take Well, areas. a say getting Terrific. let the just the offers, new My rural We're a me first first around respond. we're these pass of product, those just

us just horizon markets, the we share exciting. from that told that you. from you, -- Peter, to first were you that in of them gives market today the think, one pointed migration in XX% our upsides. five-year the inning, out five-year shared very the a is, we chance XX% our pretty destination that those seeing I activations there that optimistic. this of we plan, hope So to be makes our rightly we're with quarter a And of had in number would we a I communicated come might important third exceed to there in about

are some What what's and and next accomplished expect? -- okay. John, So can about questions have these we and of what we

Peter Osvaldik

excited Like Yes. this comments, opportunity And too his I mean, highlighted I it share. enthusiastic said, of people, this call for million market, households, I'm call it's and us. so teens XX% roughly million increasingly low market huge Mike about for us, the a opportunity Mike XXX it XX is -- as in opening

brick-and-mortar this of X,XXX experts, we're hometown economic doesn't really and to pace opportunity, on we sense into hometown where that that's done, be be remember, said huge So hiring build going whole a year it make well opening able cities towns And also distribution. just get X,XXX the mobile experts. lot to specifically to would retail XXX we we a activities have stores, this to

more to So, our That's distribution. that with well this get into well. extending on ordinarily is we as reach couldn't retail places pace

to experts hometown made commitment hometown this So, XXX we experts. X,XXX year, year, have to a stores up X,XXX this

couple So that payment the future as years. that then we X,XXX of on the down and into into coming X,XXX a year and this quarters the next balance of have

just from, a is in It quarter the and first we're said, new postpaid excited call about slow XXXX, big Like in rural a almost in it. So, a smaller our Mike it, opportunity. from increasingly for third it's of accounts markets areas inning burn. coming

distribution you are lot There this competitors to and change, perception And not it. about behind. is America. we a incredible based huge really a so but the incredible to Ultra places. opportunity it's and think, building out I Neville of And our of make to have his on there these able strategy, think have Capacity XG a of some network rural shouldn't of in go difference XG we're left XG We and capitalizing markets. from many be lot be to they a bring and there push team big places when a mean and I out that with bringing these

Mike Sievert

Perfect.

a I question think second -- question, part there of was was synergies. about this

Jonathan Chaplin

team EBITDA, and half Sprint experts so in as more on basis. we really it Jon here, base Synergies perspective from second our into continues mentioned, investment both in before, both model the a bringing run distribution of I an as talked in think the the full rate,

opportunities the investments with through we then, EBITDA quote-unquote, of of more impact it that and tends be larger period. front-loaded. our also phone core as I to launches, the about, to we And don't We such. tend half, know up know, on as promotional course know with second the sheet. the But in to and season that, continues there constructs, So that we of about as you hang in switching holiday course, may said be don't more balance go

net a be investments, promotions you'll second half. the the to postpaid anticipate we switching that, that more in as higher lot have add So and see a the of we phone higher

but when continuation starting. regards I offset particular So that that think the you asked, to as point in it EBITDA, unlock. synergy is in by Well, through network? is we're all And inflection the core comes of the

X,XXX Day. there at X,XXX decons going, what end still are the feel that we was Neville targeting Analyst confident with out And year. by put we of We about pace this the

the and our synergies And so, on XXXX, billion rate billion by ultimately $X XXXX. against way to assuming by run overachieve we're you already see of we $X.X will

a terms look revenue. and went at a and The competition So, obviously you up. service year-over-year already as seeing you're went of when as very exciting down of revenue margin percentage margin we both service happen that in of percentage

see of synergies Very exciting. So, and you power already those starting. the that unlock

Mike Sievert

Jon. Thanks,

Mike Sievert

bet. You

back and the we'll do have as then couple So go phone on a Twitter maybe to well? more we

Jud Henry

Maybe you have. one and then

Mike Sievert

I I have do go? When have to go. to

Jud Henry

Really one call. more phone after

Mike Sievert

Okay, great.

Operator

Thank you.

Stanley. to with Flannery Morgan Simon will We go

Mike Sievert

Simon. Hi,

Simon Flannery

Thank Great. you much. very

are seeing Neville, could So, about to maybe just of the a learnings bit the critique ability the customers. wireless, home to that the handle about talk usage typical back this coming broadband, you little and the you broadband fixed your

a far? second. averaging same And what speed So so been Capacity XXX the per at advertising saying you're megabits are you've seeing that around time networks you second, I Ultra think but megabits XXX a

in where color DSL, and as what's this are broadband, path coming for then, from color the Are coming coming they the And add more neutral be speeds roll there? from? any So great? you would any upgrade spectrum cable, from customers network on there those

Mike Sievert

for and for the the Go to Neville Dow first second.

Neville Ray

Yes.

about capacity multiple team and capabilities spot that rollout pace you've sweet business real and the are of talked the now capabilities a Dow I home speeds been this pace at layer. what per that's moving. I get earlier So support thanks, really and this onto mean, far mid-band to heard and layer. realize and second. on making the we really network And being real this required. this entire these spectrum all speeds Ultra on this all to to broadband of that is life The life and program XG brings us mean, and moving talk move we into months speeds north I Ultra higher we're this the Simon. have those really that XXX And obviously allows on roll megabits comes can layer support And is of Capacity to now network times many hard working Capacity. the a about the so solution to moving as And the great progress. across around tier across network, spectrum that massive

in a X.X-gigahertz a growth Very because we do. of fragmented deployment so to have economics for support and spectrum to are so, can spectrum. mid-band there the to unleash almost X.X-gigahertz layer deep with is there. and these if lots heavy stuff together and economics radio to the have of we single And leverage example our of has to bands tough do ability the spectrum, the upgrades The secure and as AT&T pull you absolutely

or very is So, in little space home And so, to run for the us, is quarters four where the service across but there that. nation. very go and our broadband us poor to times transform competition ability parts at absolutely really that many there of country for

Simon Flannery

Thanks, Neville. Terrific.

Mike Sievert

Simon. Thanks, All right.

Last So, where now? question. we're going

Jud Henry

go. You can do, have you to

Mike Sievert

have I to go.

phone. we'll the to the take last to And going operator? we're So Therefore, question. go

Operator

Thank you.

question Michael from with next Rollins come will Our Citi.

Michael Rollins

follow-up questions. Thanks. Hi. couple of A

First on ARPU.

Just new just the you unpack the what's MAX of of offering, year for the happening continued are the can taking rates may contributing. a as step and in in Netflix terms also introduce the in helps Magenta when And of such value a initiatives? seeing Hertz what's services in how some the then curious be T-Mobile look at forward you in pace quarter or going for the expected And un-carrier take to you're that totality Tuesday? evolution the ARPU if and back, you

Mike Sievert

thanks, Mike. the Thank for question. And All you, right. Mike, Yes.

very ARPU is which this story what's side a of and differentiated consumer said manifestation, like into network So, lot Jon the to happening the case really the and pleased, just the seeing use power and we're and in of the of ARPU still prepared value really really another out product the into MAX, of this bringing with with I'm Magenta that tailwind remarks a the around of translate an ARPA, adoption for really that marketplace perspective. from and on ability team ARPU I

service lot So that a tailwind sequential the from we a value of that's basis. on a saw add

business. little watermark of significant we year. plans. QX continued account of part their is business And growth, you throughout on growth, rate enterprise the in bit investment remember X% And an ARPA focused that of there. the going all and confident expanding told than ARPU be course larger of not to Because part government about the latter in continue in account this ARPU And really there's still was dilution in this you Sprint going business, heard to terms a is less moving here QX also on low given we built a is tailwinds plan will be base the as impact the of that remember, sizes. other target into Just is the portion relationships. And success

tremendously So than at you typically see coming ARPU in a there. lower that relationships also valuable consumer, but customer average the

happy very there. So,

of thing Un-carrier, Un-carrier I'll terms entrepreneurial and exactly In I an out team, profitable from But could the wish growth, this have. one just that's I on to never that that when Twitter maniacal maybe we're going true losing spirit it's from you coming. perspective but focus we do what

I'm Un-carrier horizon. when the sure on to comes more moves. is there So it

We home in ordinary are points like the industries not done this industry, solving broadband. pain

we'll you. So that, call. really to, And have Thank with it, think, point, appreciate this the probably at conclude I Mike.

going. quarter glad just we're another and spend again, we're where could very set time So, thank you with an optimistic T-Mobile. everybody very that the And It's for of for just beat results, us. about amazing tuning in. And race you

So [Technical Difficulty].

Operator

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

pleasant day. have further If your may departments. questions for Thank you now you you any or disconnect Relations participation, the may Investor you have a Media contact and

T-Mobile US (TMUS) 30 Jul 212021 Q2 Earnings call transcript