TMUS - Earnings call transcript Q2 2022

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Operator

Good morning. [Operator Instructions] And via Twitter by sending a tweet to @TMobileIR or @MikeSievert using #TMUS. 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

right. All Second Call. T-Mobile’s XXXX Quarter to 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,

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

Auction Our earnings on related comment and licenses. well between release, the discuss XXX, so are section we me investor and found other that, Mike. Investor GAAP Also, we Quarterly the fact as to on X.X gigahertz documents related for or to And the book the non-GAAP with our be over to website. turn let in of a as the can Results call metrics period anything quarter, Relations reconciliations cannot quiet

Mike Sievert

full postpaid guidance in to in shows changing for we growth and best them providing competitive customers, strong Okay. are have of of and macroeconomic you we are completing again. New environment. and our Thanks, and live QX us City industry-leading share to am climate extremely can milestones. the and first the our the QX revenues another I board integration customers This across major based proud see, we our great putting year and our our today stream, playbook, delivering quarter a here us for momentum, Un-carrier EBITDA, while web best team of everybody. service continues if morning, network, are York on raising the in the results the most just quarter results value and team Jud. here work watching another that with of was senior in you got Well, on Good

to last conversations. to is want been acknowledge I climate into connected. and T-Mobile Naturally, quarter has bills their stay what customers’ I notified challenging needs they economic customers continues Prioritizing proud go consumers results, Others it fuel take for raise doing it. this growth. building when help not. to to up help its a headlines already what Before the we do our introduced dominating skyrocketing their we Inflation on our moment and millions customers T-Mobile we are when answer Un-carrier, is Well, of are as some asked is businesses could that have are best they most. them. exactly reality to will table in overpriced American That’s all essentials the when prices dinner moves families that what least Instead, lock. facing rates. going around day our afford need history industry with every It’s the Un-carrier for price why and are big did as customers three does that a our

our that are the to those raise commitment to their switched price rate and by customers standing we T-Mobile who We of plans. won’t

travel travel nationwide But complicated. on which Internet more is help like break Internet another country provider because the service, to lot business. it terrible else, a the rebound. a price the for available as finally making their with made customer nationwide, Internet, are it’s to of the Freedom. up the wireless But with everything in makes are looks T-Mobile more customers expensive it’s Business And we appreciated. here first we opportunity and all lock saw changing the feel ridiculous customers become and ago. Internet only for contracts, as the has all third, well T-Mobile hikes, And Broadband satisfied like and decade easy we in the and help industry across fees, it of the to recent are least customers America, our We broadband launch some big price customers

to help out save Coverage back doing launched T-Mobile people there So get it. Beyond and money while

with them, again. both We on and road you This than right and is We strategy more down across of is quarter of there another in pain lot flights, what? their what now, the again the there. customers U.S., customer XXX customer this points financial countries have and airline are and about, economy, growth. out delivered and on This know covered got Un-carrier pain smashing all chasing destinations. industry-leading And a points and the works

the yet in fact, In reported highest record a industry history in net and highest The adds. company again. we posted the account XXX,XXX postpaid

those this is and relationships have we switching that I industry. market the competitive share mind switching barometer decisions strong saw and top the what fair of are know this Postpaid billing year-over-year we before, As in are said decisions. a measure we here’s increased I our of QX. trends than from of switching winning more activity in total benefited

industry’s QX X.X brand the customers, mix additions Verizon and combined AT&T net with network all-time of includes than attracting million, to net customer delivered we more postpaid industry best postpaid prime highest phone and our our the an consistently ever Importantly, And our adds. are again. an base This XXX,XXX driving high. best

were basis service XX to Our wireless to sequentially points phone year-over-year. only X.XX provider we postpaid the churn improve dropped and

ever merger Sprint, fact on delivering fantastic exactly The from it churn progress our Sprint. you shows than lower is team’s basis told so all-in and years out our trending a two for is happen. just first that we strongly including churn, combined fact, what time our In the Verizon including would

for smaller customers multiyear most growing delivered which suburban shared ambitions broadband areas. dissatisfied I Demand in hit T-Mobile markets from on Internet, business underserved in high-speed with right am track industry and you meet the the likely third to consecutive see Okay, puts year. we build to quarter as to excited we confident fastest see this will additions. rural the I broadband let’s customers net the and cable so XXX,XXX wide a to our talk pace, provider us last team pretty margin. am that about by our where continues

strong We continue MAX, to and great drive trends. of helping ARPU our ARPA is adoption see customer Magenta which

network we supported are seeing, as despite for With results that XG unlock every most They network recognize us considered network, of only T-Mobile postpaid in widened product to in reported strategy expect XXXX. XXX up C-band be strength XG ARPA new to by growth like Magazine also differentiated and And roughly not recently OpenSignal X% hadn’t the party. smaller Recent available Ookla reports across fastest reflect even competition rural in and broadband. the yet overall their our the our the now previously for reflect speeds did areas, increase over our only seekers third network and leadership, for These Business, who further trends but markets we markets top and the not the PC deployments. from nearly average gap T-Mobile again, experience. best the categories

race, just are winning ahead. some as stay We hit network, major And plan of have integration I been this milestones. and we telling speaking we you, to

of years have closed two over Just Sprint most since we we the the successfully network. merger, shutdown

and substantially XX,XXX than even the of earlier our quarter, now had quarter, report end two-thirds that more will complete end to As target by merger current than be year recent cumulatively our deliver by the remarkable year-end this of the nearly of QX one sites can the of targeted milestones work decommissioned ahead team we and original of we the these plan.

engaged up, which wrap took a the some attack for roughly experienced immediately -- we company, to year priority a attack the protect the our touch I customers’ to customers. additional criminal on following top the is why of our top I ago. created following want We Before top is office we cybersecurity, Protecting steps transformation world’s and experts a to help. data cyber

financial the believe and class component of and amounts there claims. tools hundreds consequences impacts. of recently and pleased we represent were biggest precedents consumer and millions of our costs to dollars are financial settlements settlements guidance other have knew capabilities will enhance consistent our unfortunately the are security always cybersecurity from seen in investing the this attack would were will similar those contemplated of that resolve to most These we that in program. to we reach We these transform agreements. our We with data be actions Together, the

focused now in continue and our are moving forward cybersecurity. to invest company’s on as We enhance we

Okay, now with our additions recap pleased am give before and quarter, a The performance People at service quick customers than company’s we to it’s a obsessed plans, postpaid the a board flows, in cash and of postpaid the Peter. our to want team in let so value the I EBITDA progress across core that’s adjusted their net our value tuned and very Un-carrier result, industry from guidance me I tax. we hand ambitious they ever the again. our satisfaction. best with and outperformed against best and proposition the resonates, network things and Again, and over raised this revenue, again, led well wanted growth against goals. multiyear as more

Our strategy it quarter-after-quarter, is but simple, that’s so year-after-year. why works maybe

to detail. our in to over more for Peter, from talk key our increased you guidance about Okay, highlights and financial QX XXXX

Peter Osvaldik

All right. Thanks, Mike.

strong you our another As can QX see, results. delivered quarter we with

that from the network. in in a year-over-year postpaid for our free best XX% quarter. over core flow merger in up strong the special industry-leading delivered investments items postpaid service of profitability finally, while earnings industry. EBITDA our year-over-year year-over-year. that a in deliver This EBITDA wanted continued That resulted highlights revenue X% growth, operating on growth our in combined postpaid impacted ARPA decline fueled cash growth in see margins the execution the others flow, higher highlight row. accounts in you us strategy and quarter cash profitable I the growth second compared with industry, Our in accelerating growth when CapEx to revenue and industry-leading the to growth few for enabled our That synergies, And service just growth to adjusted in

the acquired last network, quarter longer the Sprint support As we assets in business. shutdown wireline wireless of merger with the no the will certain foreshadowed

a of non-cash a QX. on impairment pretax $XXX basis million charge a As we result, in took

million related In our of All and was XXXX. from on $XXX details million data the great execution for let’s the the other the progress jump breach of increased XXX,XXX million million, sprint right, customer addition, differentiated our guidance postpaid and expenses the across midpoint, X.X both up strategy churn. year. action pretax between we ago, We at class $XXX net be the within X growth reducing recorded reflecting now additions expectations which charge one into our the a Board settlement to and expect year to for total guidance

expect phones year. adds will from to continue nearly half for postpaid be coming the full We of net

base net expect network adjustment. who we upon customers quarter, of the the As not sunsets, guidance we a mentioned our treated adds which do were subset migrate not include last as does to

the began upgraded. other network were we end with not took XXX,XXX postpaid had adjustment to practical that as be guided, an QX, devices at the in As we XXX,XXX of we orderly phones, well shutdowns line of postpaid what as

driven Turning be expect expect million and more $XXX up guidance, are off billion $X.X adjusted our prior profitable be leasing QX. leasing. We year-over-year than core to activities the more year taper including savings expect which the $XX billion we billion, merger peak of With to $XXX midpoint $X.X to XX% billion, are as activities. in to up billion Sprint now closer before and are device QX between costs, driven and synergies the than service to to not at We site QX million XX% guidance. included from the midpoint provided be $X.X costs in for to to now merger-related network billion representing decommissioning. levels, between to as taxes, $XX.X midpoint by the range growth be QX EBITDA. revenues, $XX will billion, by cash then to and quarter, billion merger at $X.X be Net and adjusted year-over-year up operating transition $X.X core up primarily network more $XX.X billion, between Merger-related unlock now continue to synergies. between we million $X.X payments revenues our This the up XXXX we full customers that expected which prior expect EBITDA and off billion being accelerated by in in expected be $XXX at and from we excludes

our the we which investment range it up up between with over robust at year, the CapEx, material assume last XG is which we both now $XX.X of $X.X payments does in be levels not and to now Internet, midpoint. success $X.X we billion, of Together, Turning expect including high-speed merger-related $XX.X billion inflows the and is billion and be than to $XX with million cash where our even billion, $XXX in midpoint the to This any expect raised million for to capitalize the from routers. of free the flow, higher deployment cash pace we costs, more securitization. net XX% cash at

Magenta up We XX%. And rate to we ARPA be full tax postpaid year continuously be strategy we our finally, year of successfully executed expect the as account driven to continued ARPU X%. postpaid XX% And X% to full full we relationships, MAX. continue value-add be up expect effective approximately our customer to expect year, and our phone between deepen services, including to now for by adoption

our in achieving history. I investment want Before the wrap I milestone grade of up, an family celebrate for rating time an corporate first company’s important to

delivering has our agencies. accelerated turn of three our -- flow. that, existing grade synergies, rating top delivering proof of substantial now from back is now This And Moody’s With will Jud T-Mobile merger confidence call on the to translate investment-grade in community’s free our week, from the ratings on upgrade on and to our our addition two Fitch, to unprecedented ratings the to growth begin our with investment the ability differentiated into cash Un-carrier executing that strategy and I investment in last playbook, the Q&A. integration

Jud Henry

Peter. Thanks,

[Operator Let’s get questions. Operator, to question, your please. Instructions] first

Operator

first America. David Bank We to with will go Barden of

David Barden

guy. for so taking much the… Hey, Thanks

Mike Sievert

David. Hi,

David Barden

morning, guys. questions. so Good much the Hey. for Thanks taking

second, that could, the want informs know around on plans your stock in just IG of going buyback program executing of to guidance $XXX Obviously, to the So, the I everyone’s adjusted recent million. EBITDA actions? begin to how core maybe guess, that obviously, of the Peter, if your and kind on updated on increase congratulations thoughts I light in rating. And

much new think, now of which going struck me agreement talk the DISH, other as that synergies market? and XQ you pressures and street to going larger of on bit the wholesale could $XXX where means likely pressure some kind guess, I ahead in feared. not like were maybe be might not little business light the $XXX as is of nearly million why if wholesale With results I and that reasons be sounds a be was could the Thanks. merger in you to the expectations the million, up being, that of about larger it given of of kind with it inflation some the to the

Mike Sievert

to will I like, start and second answer first with then, the the get Peter wound up one.

congratulate department I First milestone. major of whole team want our achieving this for to first and all, Peter, just and foremost, this finance and

particularly of market, hope moment it’s We for what high a that’s sought an agencies. have this be with in particularly ours important. been we two to soon. and year of S&P years. see issuer three certainly has us the yield I many and have investment-grade goal the to It’s exciting happened an rating now just And for

about As be in before billion $XX what that But some high our XXXX, upwards told there continue clearly, Board milestones of have with that looking reiterate we beginning share no you has this. would total very on front, have we accomplished a and was an and at for our nothing end. things financial XXXX Unfortunately, momentum, the very important right needed don’t all possibility in toward of performance, the to to in buybacks where of but changed sooner, see we this past, deliberate markets accomplished absolutely, milestone. are in the now, that than update share XXXX have buybacks, on other important to said you preset all we we designated is yield our with along

Peter Osvaldik

your And in of up there. EBITDA and inflation, from some seeing what All synergies $XXX Dave. right, DISH other seeing of and what Absolutely. we are are question we adjusted items delta core on the $XXX from adjusted are EBITDA core what million million, of with and

are forward regards are great CDMA with just The I the very future. of to So, reached in agreement, the think as being through all agreement, and disputes, to the first, settlements well we with the of in DISH gone looking partners us have shutdown struck, to pleased Day of as we while about three And Day plan what years. as coming visibility that. be that’s what of so at pleased with expectations, it’s into the the the Analyst gives very Analyst down through tremendous revenues we over will quarters duration the of anticipated period, DISH,

there’s with on from say that the it have thing on backhaul. as team into to a in a cost whether we as other lot with been talked that inflation great, side, work an CapEx whether happened, great OEM I early whether The of the before, was contracts, was by significant tower and was our operators, vendors will lock Neville rollout the perspective, network with long-term his

to So those we of a have able lot get been costs fixed.

are but particularly they is, how we Synergy just, midpoint. very And quickly XXX,XXX customer-friendly labor course, and thing seeing Of will Neville team speaks everybody guide I $XXX on guidance itself. his decommissioning is the again, else at manner. that’s up is by other a we contemplated net raised million adds into some efficient are just pressure, in and point the to all the moving to is, in as the and space,

in course, of have to continue to allows some the acceleration will So, in drive associated acquire to that, obviously, of of value ability which as well you pays customers that that costs with are thing earlier S part this prop. Neville quicker the network SG&A that be we building investing the the with quicker off as and growth,

all So think as components those I the them. are about

Mike Sievert

particularly point last important that me. to David, is

that now connections Internet by including additions momentum than and to Verizon that seen have you in mean more we report, and right this plus large, high-speed things an from AT&T growth. I money and something in-period net XXX,XXX, those seen combined, cost us or on growth generate have have postpaid you As incredible basis.

you we Also, than preponderance in there. success take in the up We competitors. the period anticipating, saw the our dollars continued past, our charges that a costs is form on of accounting balance of guide, negative So revenue explained would those than later. in sheet approach, different the as in come our little of are Peter has racking millions as rather

of So between the the increase things some increase the those that synergies in and in difference are the explain EBITDA. key

David Barden

Thanks. guys. helpful Super

Mike Sievert

You bet.

phones. the to Let’s come back

Operator

Morgan We will with Simon go Flannery next to Stanley.

Simon Flannery

Great. Good I if fixed A wireless, couple morning. could. on Thank you.

could First, update just us. if you

becomes talked think, doing seeing growth you by every a at driven of the are as I Can quarter, way a fixed talk what’s basis. $X phone about being for XXX wireless. impact are on this into that important you month at to and Neville question more new annualizing like over steady account And pulling terms and of It a this accelerating I you million. then, through a part what base? just adds guess, you sort reducing churn, T-Mobile, about of in it’s seems

guidance that of your network capability looks of adds $X exceed XXXX. run to If than, $X much to you rate it. that you to going quarter top It us capacity that by terms be extrapolate more that take the to could sort XXX,XXX out, million or XXX,XXX, is in you the per million X -- What’s handle XXXX? end to Thanks. takes pretty the like to say, by this of

Mike Sievert

run we adds I is a if to it and first gets mean what’s am the you that, just with XXX,XXX turn here. happening rate the net to that in established. goals Neville. it delighted jump will I have Well, Great. do so then us math, I

it coming a a be that not success now additions in existing net we rate so we our trend, And is And the to only doubled terrific are excited really to of and very has business not run it remains the see seeing lot that’s offers customers. are T-Mobile during changed case that that And around. this like with on but the we that majority from down quarter.

in uptake create the to put MAX exciting been seen offer an Freedom that we Magenta customers really terrific. have Internet saw, has for a you of and bundle As

been in $XX, the coming high-speed So, new in to base. early this product as a of compared quarter for above example, in Internet loading $XX little the late to and quarter in the $XX has

speed company said, those see and you terrific relationships. continue you bundle that front door benefit are in So That But it that Internet. to existing not just of now that it’s sales stopping most you and new blended of can being customers. our be relationships to for also new see increasingly, are a the driving getting is high the the at

So Internet high buying Magenta coming then including MAX. and and in switching, going ahead they are speed

Mike as very cycle. that, to Jon? to So Anything to or successful that’s work starting a add

Mike Katz

add only at The both thing are also sale. the more pick of we is more other I and would seeing point customers

customers. of T-Mobile that out came where compared median our from what high smartphones, to on the comprehensive the to looking coming customer were as suburban month. are expand I more with comprehensive think competitiveness at really use bundling speeds And ability and switching test switching of the that the on connections -- said half continue Magenta one nationwide driven It customers been two shows where -- serve this this the and cable you point here’s nationwide from an pocket area on you MAX. have XG only Mike, over about that coming as to exactly past we were network in T-Mobile that’s by Comcast that on XG test. high And speed the speed A thing growth and cable, a speed that data they one-third from will for expands. to Charter Internet see and and the surpassed it’s said, from XG areas done interesting time, higher cable study T-Mobile this dynamic we Ookla been growth is and to little and providers, first based Ookla Mike an this network of the two-thirds just are coming speed upfront, we we from powerful cable that’s and environments, exciting continue rural, urban alternative

question. second Okay,

Neville Ray

Simon. Thanks, Thanks. Yeah.

to opened about have about. to talk for lots XG the network, door You talk me

Mike Sievert

time we the have. all That’s

Neville Ray

tremendous to our out Quote-unquote, durable. accelerated we broadband really be a it’s story, It’s mean, XG. leadership a we rolling have The made I a brief. I very will network. strong position progress It’s just have the at XG with in-home clearly testament pace on significant. to

to for years here are on this lead to We come. story XG

And network, covered, of XXX Americans. now so we people low-band million in XX% announced all the today our materials

Our mid-band XG, ultra-capacity covers covered footprint, XX% this life, our really where XXX XG way million that of the is and which story people on by today. well footprint million XXX the end year to our to comes of T-Mobile customers

hitting So mid-band, our lower sites look industry a in-home so over is in at testament product. fixed are do real we if we on broadband, rates product And referenced, Ookla to inside basis the tremendous speeds, the T-Mobile you what Board. out on production the is And two as can speed delivering progress, in-home what actually is the history our a momentum in-home basis. report, your is broadband upgrades Simon, question, highest as a year XG moved radio month some Mike recorded broadband median This the network real it’s X,XXX and a various a of rolling July, product across than well to our on of being weekly into growth. median

extended megahertz footprint, XG range across have just today the it’s and mid-band about megahertz that so of mid-band spectrum XXX average And spectrum over spectrum. on it’s not footprint about and over dedicated we and story XX of capacity

of spectrum stories we to XG we depth us Simon. a XG So dedicated push of and XXX are And growth. XG allows that it’s plus spectrum that I year and broadband into coverage, into this capability business, and this are mean, really, megahertz these

this high all projections over de-commed, confident that are customer Sprint really to network, over Sprint is and with now the traction. by -- mapped traffic is of integration coming the out the now years. that than X% have But two-thirds we the shelving, starting We capabilities have less confidence. gain The of to on about very the legacy traffic been be honest, sites network Sprint

the as from powerhouse the that’s we very of spectrum years quarter. two one a a move that And network that and when The bring over we come migrate we capabilities to driving process. can this close and ton with strong across, exit a will We that and this started little goodness. coverage

case. progress, probably in are use on great are delivering with broadband, we bringing wireless is for are that and the But we thing. delivering, in-home hunting speeds confident think this fixed So Everybody stay. very broadband to real delighted has been the we first in-home market it’s and to what here I the XG here

Mike Sievert

capacity for call. XXX Simon, across ultra the megahertz as how compared It allows it one discussion exciting unique opens some of C-band on really with execute have the Neville been advanced mid-band leading plus up mid-band, which opportunities But He that has things I on band, begin to as in average. is they capacity of we mid-band throughput and opportunities discussed, interesting And lot deployments. for fact we that what’s that layer, XXX this about press right are and XG businesses talking releases to dedicated speed but XX come. services. but have not XG XG ready it we There’s their of said we AT&T, and just Internet the a really our is XX of kinds think, performance network low footprint. will and where spectrum said said, against that’s business XG now that about high around, spectrum really covered unique of for Verizon, what competitors issue support that Neville much XXX this about space people to have the depths of million can with that been under XXX XXX for to be time

that about talk about question later. So that. will your more thanks we But for

Simon Flannery

Thank you.

Mike Sievert

Okay.

caller. Next

Operator

to We will John with Hodulik next go UBS.

Mike Sievert

John. Hey,

John Hodulik

to Thanks. guys. or I’d Good issues two areas morning, explore. Two like

color I thought mean you your That’s side And share of in churn actually impact of I First, then the that the flow Thanks. XX side, Mike, the the are of slower in seeing consumer Sprint the bad can that your Sprint on number further on give that churn any so one. side, terms competitors? where you versus improvement Any the getting the are payment terms Magenta pressure. Magenta in we seeing proposition driving was are feeling or bps. debt? on with the is what metric? evidence disaggregating, close phone some far on to how some macro and quarter you value you down said to is are any highlight and we And or

Mike Sievert

Yeah. take what let first, seeing. on just me question Absolutely, first are John. Well, we the

we comfortable level. debt very quarter bad our returned more that with saw You it and are to levels at historic this this

of and that competitors customers us we with a makes economic confidence circumstances. this a the dealing at things space is variable than have our One deep different history long who have in

for stressed as And debt so historic financially. on some it’s and rates. are that been you them other us our not levels know There bad well. We seen new how have have front debt up work more with driving things customers to return that that to

debt we of that opposed it those rapidly not. to continue our off bad hits have balances, things in the as bad, when One you that rise. does been see leasing, metric EIT customers is EIT which And to go balances moving

charges to looking But with norms. a accounting beginning very debt is are artifacts the how know very before, So that comfortable is we is historic more point, to be more your value interesting. to of execute also in artifact and return in There’s plus to some that now we flight happen. I this where it’s bad cause way believe There environment. forward than there’s it an to to us there. saying, Long our

our premise see any our add You any progress comfortable and performance, people account our quarter net the overall question, your performance in Sprint our our rates are in ever T-Mobile XXX,XXX account as growth where they highest was additions. both the suppressed for churn history was are, to season this quarter, of it across in new

with value think are showing We so we of that the would proud product very, our we us category. the worst quality look, the first to And famous for of times. is something product and On to playbook beginning I on two now. people that happen I that in Sprint more a have execute is the of more second there and that to indispensable, yeah, so looked becoming possibly very you X.XX, some are flight at here our for to so ago is lot said, category we churn is in a years just positions while room am to and T-Mobile run. well none you told but X.XX and got value a us for that’s are At you combined that when this time And and value and team. famous we

look pressures here looks a see that where of XXXX We go. But there’s QX, will QX involve we it bps course, churn the as offsetting launches. on and carriers are all year, higher as seasonal QX in effects the obviously the of versus in to beat we last by at second to in be There’s be side seeing. the like we will we and us it margin phone to similar of mid-to-high year single-digit improvement due switching half tends

are to is we we component our which ahead. in that last what with add the the of plans, integration comfortable continue more the to very rate right to customers settled are momentum more quarters as more seeing Peter? that get Anything some see we and we So Sprint with to potentially that, and there’s believe

Peter Osvaldik

No.

you think hit really well. it I all

Mike Sievert

Okay.

John Hodulik

Mike. Thanks, Great.

Mike Sievert

Thanks, John.

Operator? Okay,

Operator

Yeah.

We will to next MoffettNathanson. with Craig go Moffett

Craig Moffett

evolved thinking IoT? what’s revenue compute, it everybody whether you And I opportunities the is on those reflect there? It come Yeah. been about wonder could mobile from can of it’s to from aside of have effectively edge compete the your if seem most size that get Hi, sort T-Mobile that guys. about wireless has opportunities new talk you private networks, we fixed think hitting revenue with how XG, and how

Mike Sievert

You Craig. bet,

its along around by start But a releases. this Kelly I some are lot what’s going are further we it’s hesitant have we and take out saying, in business talk first will it, And this in for around thinking press to in early infancy. on you forward forecast of it and space you about from surmise there. it like would an me probably when Let and execution our then

is XG being much that given to can ahead out have some the conversations are But with But an speaking, what we the emerging are had interesting you of it’s generally about what’s smartphone of maybe so earned choice in you your were never having. business. we share our exciting network plans years And this they achieve leadership market set this conversations are little Our getting office in is gone and talking our us what core view a the and seeing company achieve, CIOs, and said, CEOs, can and competitors We ago bit office you big haven’t happening, that, is and difference. area. big and things there two coroner with about that before. kinds the team procurement that’s Callie, and the aspirations

Callie Field

Mike. Yeah. Thanks,

working connect because most Supply transformation. and port, but So understand are and on business, and are us we we Business Tractor are we like how it’s to We that businesses, own locations, our talked time also a their the was quarter. an frontdoor edge that of spend that are at own and can help Freedom use been get ways has not truly Advanced order about, places CIOs AutoZone, part to you is move CTOs hey, costs, with provider Network connectivity connectivity past which CIOs reliable solve manage network, sit about about, great with facing launched provider effective, really which that business only for only they the the that talk fastest, problems looking exciting They K efficient standalone their we Internet yes, and as down Circle in are for looking Internet compute a digital and But largest solutions allows talking and at how really this to a you Internet nationwide as solutions significant your retail we down sitting the time leaders. XG be and like Un-carrier this XG XG to as can but matters IoT Services. to and has only

Cell relationship, customer, announced our launched new our or also We GP.

That You in don’t in broadcasting know XXX,XXX of of view X,XXX were advantage to competitive a a data Cell the GP, from that’s the fans the world’s reduction and most retail. and XX% extreme points gives transferred up really sailing to competition we saw able latency. athletes deliver race, in and rate so last sensors, we

this quarter, of as also connectivity industry. network Un-carrier about our last of and advanced to most are We recent are because launched last DT seamless well in our with the And a told internationally able our you for their BXBXC automotive relationship doing work are solutions TIoT lot moves. with solutions, who of platform we a that and employees as for part and global as traveling provide we

we the Verizon So we action. just of phone have we think seen we business line of the I and history reported and lowest to to lines in here. I have of want mean some a our seeing are don’t churn And lot like discount phone highest. levels heard their we full that

And so in we growing are business.

enterprise headed in growing as are the well in interested we we We Network sector are Advanced with in where Solutions. SMB and and public in very are these

Mike Sievert

look there am services for coverage to opportunities us are to was as network-as-a-service the in for map place. that incredible interested in and create coverage to outsource networks still that, advanced first enterprises all deep you And only not an originally mentioned glad some thinking something like that do in beyond I core. too, are because the put and enterprises beyond we ours, with investment of they but

not today, coverage that multiplies Our move of to doubles the beyond, global in just move simple business times our consumers not we the now on included data introduction and world it and offer have travel can many launched And so XXXX by that enterprise. which down, power in speed high customers speed have low is completely breakthrough. highest a it was our in and data, plan, that popular the most country

that and word on you excited give Neville, will I the for consumers. our what So business portends last question. we very about are this customers

Neville Ray

I think, we this, I Yeah. say Craig. mean, I’d --

that as are for I at now than the see our There’s network leaders, as positioned XG XG opportunities is XG And doubt. company T-Mobile. as well XX% no traffic that continues the is great best discussions over consumer We more all just U.S. continue thing push of this engagement for entire great in manner all XX%, to our I increase outlined. base. of Callie business we real mean on of architecture. opportunities, actually XG, and to number the we with really and mean,

only core. We a as company, are Callie standalone network with referenced, the

important? some is voice And all we we not spectrum in we architecture. but coverage, are layer. company yet a coming years. well business over a all as company, the are us services, across network to radio voice U.S. Because moving a focused in time dialogue We on that on only XG corners at a XG the in lead that business, incredibly push new the which move segments. LTE, have -- for point in that This positions and pace, retiring that against are onto is our incredible of of are the to XG at future Why competition, we growth

T-Mobile So and well. beginning. it into we and around up are incredibly us is story mean, XG progress our not to delighted at with the just shape are the I growth starting vectors

Mike Sievert

Beautiful.

the be you on And some we I Twitter. some phones, see I to should few back here? tackling know go find have upfront. Okay. what before we in did we a coming Janice,

Janice Kapner

Yeah.

We have a couple.

good for how notable He’s impacting on T-Mobile Business. Bill from there. announcement, some medium asking Callie consumer And business BXB? or company broadly earlier Let’s to start I of coverage with wins point enterprise talk curious Ho. examples things about our to for some the may both know and have that’s your

Mike Sievert

Anything kind to of I down, know that. answered double of you just some

Callie Field

and combination smart great we spoke, public mean, network. Right. we I General an AutoZone using warehousing, Mills, interesting and edge where did solution built we we private compute a network with and work some did had and ANS some

because And well, all when of looking that manage plan SMB, lot rate and effective, we Business -- communication. been seeing at small for with included. as includes We Essentials, are to businesses devices cool a iPhone their incredible automakers wireless SMB both efficient looking only launch using announced growth we once is lot can Apple of have cool really how XX well are they to TIoT they for and then global are just with vehicle-to-vehicle as edge they at an Apple we as the more getting which at an plan where solution really cost, in working a in thing with our partnered capabilities, another of

big was a that really recently. announcement So

Mike Sievert

of thing hey, to designed That’s exciting you we some of you but will I’d ago, So coming you lots see for of, logos, of me and we that the really customers RFPs get you accounts kind were a later, whole of new agreements are bid spoken, really like is the we of with customers. is years with winning are lines and re-price now. years the of what lines my never you But back deepening few kind if some happens board. sort because Remember, other the along of happening couple interesting only saying, can that’s that. my. business, customers will were enterprise kit which of AT&T and the help throw of my across unofficially, that’s some say for relationships a And I now actually, some caboodle

deepen a sales. And and dynamic our that’s so to this driving that’s customers with is happening really potential

of about your questions So, TFP. Bill that and Roger hopefully, some answer

ready one. to will next while phone I get for the we do the Jess, that. go So, back

Operator? So,

Operator

Yeah.

We Street. next go with New Jonathan to will Chaplin

Jonathan Chaplin

Thanks, guys. prior follow-ups Two questions actually. on

put you you got isn’t you that total capacity the have in capability X you the can So, past Neville, great. million serve terms can in just gave the network. you number for I’d of that you you of am in love you wondering that broadband limit. know the and in X to I the if around million network could I to subs address XXXX But expect terms on the what the context was of think wireless capacity, the said fixed

Thanks. with the of are second. where that progressing sense a stick what the give I opportunity. you and So you private know us of theme mobile none are edge to at it’s am that long-term plan? you to that for a towards guys compute how opportunity enterprise on love And is you Does just XX% you then would is. point. limit this to that said if market -- network the put mean that a in wondering Mike, your on I And share could too sizing soon

Mike Sievert

Great.

the about Jon. Peter questions the two and we plan talk give to will with the start last XX% Let questions, earlier it back me share, about et cetera, then and your to

Peter Osvaldik

something the that of all plan all you -- while Jonathan, Day to early. how growth, make get that to of described positioned know, that Mike the because we a emerging and map capitalization want we didn’t was We have of Analyst it an it we the just wasn’t because to we business, with to plan the that. targets, but into we too something view a didn’t the Yeah. are built are best it, around road good reasons as capture when the did seeing

is that So upside all about excited that. upside, potential the very plan, to

Callie business SMB. are entire this growth It’s just progression the for T-Mobile you we we about space, what’s actually, terms In exciting enterprise enterprise, it’s it’s see across segment. heard in of government, is, say not

progression against we categories those our the are excited all So of in goals. about

Jonathan Chaplin

able And how millions customers answer we We and are millions halt? really can that we to many not Great. then don’t to going be support? of because

Mike Sievert

It kind of depends.

customer. period in is expect this model, capacity we our a anticipated things our based to is maybe that the mobile disclosed arriving at the our which have to gigs continue at of lower But maybe share input base around the which in mobile, excess stab usage spectrum, model at of that know, an obviously, this of answering And that’s availability we rapid One on don’t do past we spectrum, in gains obviously per mobile. in And XX want that rise know, you be higher, we don’t or et pace planning just will are Neville? will very And refarm to to ability to it, that so to question cetera. the a deploy I and be say our going to important take a is this.

Neville Ray

not Well, want sure that to revised am numbers today. I announce we

know So, Jonathan, mean, you our story I well.

together. some we our ahead on are million factors we are But capacity when our T-Mobile, coming where put now, ahead back. There plan side where is are rollout and that consumer integration million on transition, against on $X many compare if that the spectrum on would we our to time business said you see Mike’s established X-X on you multiple in are of XXXX, T-Mobile $X that look the we marketplace put ahead XXx, schedule. just as for XXXX on the Sprint the XG if our at adoption ahead know and into coverage a we XG, a this You that we comments out to be are, capacity. we goals this always we combined in, that, was about standalone but generation We great business

are that the are about through halfway generating. we in We already of terms capacity

bend we headroom of for sure company. I lot the am that early business. curve the in are for of can, some into we are a And creating we business this more? but can we So growth still

and I some strong forward to As numbers, will in look be stronger a we and into said, year will XXXX exit we momentum numbers. we in XXXX with are hopefully a and think, growth driving in see, year great the space, we with position as continued we this great

Mike Sievert

and premise conversations and Ulf and have is centerpieces been have technologies and And capacity the of constantly new the Neville question. the our adopter capabilities Doel an space. techniques so of to of because allowed our customers and network for early are of many one their unlock us that ideas in teams now of chasing We your

where we than are They them Net can topic to from. load continue in are interested ISPs customers tell the in. very we are what a I the fiber one provider. Promoter satisfaction you we a of they was nationwide give won highest XX major the They switching now, competition. survey rise. our triple a from in all customers are And second it’s number Scores points right won’t experience. So our are customer provider a scaled, us and are that just named country will beyond great a that higher that We

hopefully, we love you that some and them well. customers gives And on important that our stand. but, so for this to customers where we color we where brand and load us know our And product continue serve it’s really can for we

Jonathan Chaplin

guys. Fair enough. Thanks

Mike Sievert

You go another to one. on to for bet. Twitter want We

Janice Kapner

from question great a is This Roger Sure. churn. about

You net growing adds, connected How to when they to as often free the drove off have significantly are connected are churn same question smaller device your you about experienced players churn to experience that the well. have of some -- going with devices. ties others the are to prevent kind Alan’s of having from

Mike Sievert

with the more a our and value in we real live what lifestyles tablets, of and and of utility other of we world and strength Mike, little of the maybe are are you now getting out lives. people give changing a watches what we XG large, because what’s happening Yeah. this Mike very devices market is connections. by on is different you driving aren’t, saw competitors What’s one. free There through large, Maybe and years we will are our or I not, the in on say, free from of start going ago. by and this But, network devices, from on because can seeing. some connected

Mike Katz

how and a figuring point done make devices has like competition thanks I a a for do Roger, we that big to model, we feel of only the people we off free phones, good on differentiate question. but have our not think And recognize moved that deliver our risk free lot Yeah. really real differentiation. out devices Hey. of a out point the that in of giving the in job where you free to is world one.

it’s money that we Our T-Mobile, T-Mobile everything and give Magenta to to any T-Mobile because have and that having else. several has ways today, things experience is their customers of really in and $XXX Right heard make for us included of than now one differentiation is save just are proposition, all and this MAX the through you ever save trade-offs benefits macroeconomic not not like core that best think, we it services the only into important wireless network I T-Mobile that customers, the a the pack have the like services, before, with proposition plan that. value without big point is streaming from looking with families to gives now, value and been what more value but environment, customers trade-offs make and that can on provides on

save you that’s those across to them So what expenses saw year-over-year is for you and we quarter to this see and very continue is their devices we because they things overall and can important picking think customers And have we are are and with best us relates it what are as entire watching and translating and connected in I you lives sequential will value the because seeing into that paid it’s actively big like churn are. used devices, also usage decreases. position,

that’s very something so that’s so And important question. get don’t we

Okay.

Let’s phones. to go back the

Operator

to go next with J.P. We Phil will Cusick Morgan.

Phil Cusick

customer of traffic a talked can stretched DSO out us Mike, What something traffic And all-time guys. What first is prime in Yeah, relative? mix an about around then you we you can accounts you Thanks. the noticed or increased and give as payments debt, activity, the bad lower if is incoming of days. levels, well lately seen high. that said you us tell base, have and or as that in the charge-offs? couple sort mix you Thank you. changes anything of at

Mike Sievert

good, Sounds Phil.

we let’s to Peter go to well, Osvaldik say what So, are seeing.

Peter Osvaldik

Yeah. Definitely.

of but giving We not recent, mix up it very is prime the the Obviously, base. are significantly.

last terms was tremendously muted. year-over-year There was not switching what basis up, pattern we from churn of and a of involve perspective, remember, activity still the a still a money. was is year seeing happening. are stimulus on really lot payment In There

forces we about what of rightfully are what that us course, And levels a couple talked to we ago remember, bad an is, well. and still would see anticipated so look churn now standard seeing us. below accounting is well QX forward pre-pandemic a changed debt and bit, we as as So the of we increase in for you did involve years little

was loss in did And whereas wasn’t macroeconomic we that last year, happening. QX so significant, overlay that a

happen some releases churn In saw way as fact, involve we we down. had

believe terms but QX, now, macroeconomic expense FCC us payment are in tremendous course, QX, tools are and it do customers the customer high further back and holds believe built we in on of pay that watching that seeing XXXX. I that actually we off So the we Again, carefully of differentiated dividends are goes on debt competency based we further we even seeing saw when behavior, was to to very our we help and that the created have now. in patterns I for we of trends everything bad watermark even core some happen,

Mike Sievert

and said opening are a company also are here them lot feel points, but and my stand comfortable when customers with I a need provide confident at like to us picture. handling of are the time pressure our to value. EBITDA, for where serve in there’s in Great. remarks, P&L opportunity with are our And we macroeconomic they increasing there we how places a fantastic a There up

the to back Let’s phone. go

Operator

go next Brett with Sachs. to will Feldman Goldman We

Mike Sievert

Hi, Brett.

Brett Feldman

of And Thanks. I have follow-ups. two sort

And extent that is, as comfortable to over can in and be you be see T-Mobile, of or the you next improvement the question out will you that, distribution. migrating just terms I going update, wireless to do legacy you to few think subs that cohort you particularly run this So of talked kind Sprint maybe give when driver second fixed then interested migrating you in as may seem Sprint about in be are we add us where am of to customers XXX,XXX fully I right What’s rate specifically that an the unfolds? so to with continuing the plans. net quarterly hoping expanding are think the done which was quarters? rate. churn the you the

or know Thanks. you million don’t over you churn? And are of where I XX I terms what fixed customers wireless seeing what think go. might are potential in available today. expecting it’s that to

Mike Sievert

Mike start? You to Maybe to bet. Where on the we want one. turn first do

Mike Katz

Yeah.

Peter Osvaldik

I to Mike speak Mike, do wireless. one that can would maybe and fixed

of In terms part plans, to first last through of the more year, of the we it. the did you but of of migration well as migrations vast both still to year certainly said, majority of that in planned, plans. rate target are year, rate start significant some amount a plan we as the of There’s we in this saw next go as rate the

said, I be year it also, going through which always migration, going the we from inferred to was was disconnected think the make seamless question the goes that we on migration already a to we in to through as the when middle and are billing capabilities the network seamlessly really plan we can of has begun. customer as then next build and which convert customers,

again, already as through the friendly to doing process are possible, to is go that, But make of We consumer-friendly churn that. year. and going mid-next as that’s in

can... I maybe so And

Mike Sievert

Yeah. Yeah.

Just on it’s to the -- answer. harder

it’s because and we harder becoming Sprint figure You disclose this only a didn’t so. migration harder to time saw of do sort

in said the his is Neville now network. As the remarks, X% on traffic of Sprint legacy than less

sites. this at be the will decommissioned substantially quarter, of network having We all shutdown

more from et that it’s yet with was prepaid business, being distribution. much we tapped opportunity the we represents have to first as what’s progress stepwise in potential. making X.XX. you thing right the see there have we And in most that But be device have so them, minority base with that a provide only And are potential, us an we move process. a could think our fully to it obvious. goals. could rate have we the churn be the really And obviously, longer. Jon they a a gotten one the I That’s do it though. recommitment will that they combined that to nationwide grow and it now base we have yet with fixed and going this be The will of, That cetera? for know the potential emerging are we which yet interesting with newer lower, are were is at the we it all, this incredible plan, right this math prediction to cycles plan, pace don’t bringing do our can good job because, grows, it -- relates broadband lots extrapolate picture a and of recent at just is have I sales forecast gets still now team of a here them of becomes metro. then, connections with think reengaged of fully pace have that math And our to Un-carrier has tailwinds you to our I that wasn’t of That have businesses. you and achieved a this done it’s churn well. forward is a don’t been wireless, my wasn’t as fantastic it service that’s and have if TFB said what higher, a remarks we are

are we outrun the then going, we great Anything some. and are Jon And very to confident and we both proposition? And so that like in we to a how and distribution value are have what is seeing Mike spot. to add feeling

Mike Katz

Yeah. Maybe talk about distribution. then I can will churn, Jon sit and

it’s early. year think I too launched We business this one ago.

great with that’s of on making resonating a and that’s reliable customers to the going not broadband is trade-offs of provider vested a are performance fiber what’s Jon, our And any that’s customers to So that’s their And our product we customers point. strategy, by and comments I about will in resonating best providers be I amongst talk it’s with make I not that earliest have part too things on don’t and price big they and distribution? the I like single incumbent aware getting more that is that one know, a comments and that are this making to churn. a that service. if point big thing broad think about by will of making only is you predictable NPS said some customers think is then want early of really forward. The trade-off one is, the

Jon Freier

say thing only is would The I still ramping Yeah. we that distribution. are in

product of all across have our this stores. T-Mobile We got

We digital point of it view. from service have a got

by Metro then teams, quarter, recently this most in launched and telesales this we cetera. in et T-Mobile. announced just And previous Our the

with are it, many we said, bit here When so quite like still about So have high and Internet, customers ramping we our don’t of you underserved still. opportunity driving speed got the Mike an think afford of customers these like prepaid mainstream typical from get that provider. a of point with it. just even can’t have the total cost cable And product except this you particular all-in your get a product, it what can’t with is can at They price they ownership segment incredible.

that continue we more we here. see have runway So to

continuing that more the even to future partners are opportunities we with build distribution and as other have might well. in We

Mike Sievert

And can question. probably we one Operator, squeeze last in

Operator

to go Rollins next Citi. will Michael We with

Mike Sievert

Hey, Mike.

Michael Rollins

questions, Two could. if Hi. I Thanks. Thanks.

the And then, step considerations First, an to updated could are to consider are company? the add the early separately, was just the and for consider back, I assets a use rest in and curious and if as you the there just taking update the in wireline core us any are what monetize industry the side the year changes postpaid there other net to third of accelerate of equation, give the the outlook, T-Mobile Thanks. on postpaid you for landscape Sprint notable the for going back the for possibility to expectations growth the of M&A strategy volume maybe phone if quarter? the

Mike Sievert

volume, On run forecasts an don’t our Okay. rate. imply industry

to what we did. exactly win and saw switching job you quarter, our Our in decisions that’s is

said, are is is what That marketplace. the about are deeply in up switching X% we industry net not so on seeing being adds. dependent overall we And

as new to changes have the the seen we other We have quarter since ended. substantial changes to that the or not dynamics any competitive quarter overall any entered substantial into

So across that’s Board. the what we are seeing

announcements As some to business. longer you our that that we support it wireline relates made have asset, to using we no seen are may asset Sprint wireless

deep, that the there are taking account best as a with decisions a important our you product obviously right we M&A, market a long make conducting that never in over way deep has It’s rule We the to how terrific changed haul, time. legacy and review that it’s out. to company into the the manage listen, for asset.

have a shareholders we left as and Internet on this mobile company being and are their with have are are is communications of eye clear our very nation’s forms where to management landed a content are result ability leading pure-play of in going You never from we is rule returning Internet one broad a our and very confident the hope our shareholders executing a market you this things the and towards we team that That those value mobile, execute with hand linear are Internet, said, for we the all In call as that I holding. solidly getting to the out. very, efforts.

out very pleased a And to we great confidence. we shareholders. but And from our rule got place teams are management our to so ways smart that’s Listen, further you I it. sit, never call, benefit with this leave where position for hope

a having lot are We fun here. of

are of care customers. We taking our

a management era company our and to in everybody. of is a Appreciate Thanks results tuning increase confidence into it. post new aspiration us to this leading your Un-carrier, that are for continue We team. today, the where in as quarter-after-quarter

Jud Henry

close And we can the call.

Operator

gentlemen, this the for earnings concludes quarter and you second Ladies Thank T-Mobile call. participation. your

a pleasant day. disconnect now may and You have

T-Mobile US (TMUS) 27 Jul 222022 Q2 Earnings call transcript