- Earnings call transcript Q3 2022

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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

All right. quarter call. third 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

Our well GAAP other on to Mike. results non-GAAP me earnings the found book, related documents of Relations and discussed section be Investor release, investor let as turn fact website. in it to our results that, the this results and over as call can between quarterly reconciliations the With

Mike Sievert

Thanks this everybody. so It in. welcome about another outstanding Very for third quarter back talk to is thanks and quarter to team. Thanks, of Okay. by Jud. call tuning great be to our results

working. is strategy differentiated Our

Our year. in ongoing growth our our for another consecutive leading best industry are simultaneously focus and cash quarter of we this has the while the leadership flow, guidance position network quarter raising on EBITDA delivered and delivering customers, XXXX capitalizing on third value

All incredibly team. milestone, while our I of this proud biggest integration completing am of this

closed, first the in ability provider for told building network one and while giving value plan time we for our our was the have ever. the finally merger best to you best industry's fame from customers our becoming As when to the as both expand on country, having the known

doing exactly we're we X.X years planned. just later, Now what

customers value long-established leadership beginnings noticing. by competitors' it's of really a is to XG leadership network price first giving for increases. powerful really the network never has brand And aided our they're been our the and overall been that lead translating time And for further Our better. strength

plan new has Only strategy our are our into. Our grow how they that and we're of to connected both and of TV+ move, network matters for Through and meaningful differentiated in T-Mobile's MAX, results their abroad. also to and most sustainable scale of is. Apple a lives most Un-carrier ground, XG we're are quarter combination but the really when of keeping and popular and also network, innovation best this and go Magenta people Beyond. providing the recent in expression Coverage the tap leadership T-Mobile underpenetrated we not just the are driving our this daily Well, growth it where like with unique features large addition our customers. segments on business, customers value clear demonstration To multiple air

than ensure two leadership from network and for network Capacity hopes hit plan. enhance than speaking customers, would to that. leadership beginning And informed that third is umlaut translate Think PC This reaches is coverage our more pursue T-Mobile. our simple already the T-Mobile we're it and about Easy overall more importance they customer using guide that we're knew our the multiple the Verizon of not growing original and And has opportunities translate higher it continue as to to network to Network overall eventually planned. spectrum evolution approach end we and there and from the lead biggest seeing expand we and merger Magazine. adoption recognize just stopping. This And Americans. had rapidly network into Switch will of year our us network more Ultra will the milestone. XG exactly to targeted unfolding. third-party network, XG and is driven With XG the of It them all is and to we substantially we're a the Pass, successfully launch like recognition back parties coverage up, established By and that need our switch whenever years by capital making more efficient we of data now. than leadership. a win where in QX, us. businesses, risk-free now to into decommissioned our now Sprint to what XXX network we're that network sites, leadership, our Today, our merger We lean now make integration for consumers macro leader. million Ookla, And and been levels long XG of experience and we're precisely with that's wherever XG But even way resources. to we be We earlier

that we in T-Mobile customers next-gen to technology have some just joint But practical we covered that where We not places effort do of compatible to there with have QX, go, also network. mind with combining want satellite slice SpaceX it's to matter recognize that's wireless a mid-band are that, operator SpaceX. spectrum terrestrial existing build our they any for our them because just devices a of we no customer announced from already where peace with

the quarter Our goal growth strategy leadership differentiated for network of can emerging customers anywhere another T-Mobile truly sky. produced results. connected the Overall, in this U.S. be where and is to see they differentiated

postpaid did this through before. ever company. strategies for our quarter, this of industry into company industry decisions the you outlined we them. switching share growing many record a I've central net Winning again. than the right core the account reported In times highest and QX, history get better XXX,XXX is in our in we and ambition the the that posted growth adds, highest let's In in So growth

adds industry's net all-time since phone industry-leading additions, we combined. We customer an X.X highest AT&T customers, our In million are attracting postpaid delivered is to best And proposition industry-best the our than value network net and consistently the our an addition, in an and prime mix. more which with merger contributing had high XXX,XXX. postpaid Verizon

improved was opportunities lower of the this than rural of of to markets Consider X Our And at were areas, year. success. U.S. include phone Once to improve multiple postpaid year, XX% and the I build. phone thanks from Sprint, including accelerated we and year-over-year. last end postpaid effectively network we quarter. again, our population, smaller wireless contributing XX% last said, had of points Today, Verizon's X.XX% basis as for competitive And churn, second the only consecutive are growth our the to provider distribution service our compete to which in churn network all those households. only just a

target the year. end XX% XX% now reach by of roughly our in to We year-end of and we surpassed this have to compete already these expect households

the in network continue also in never prime for markets leadership in we who markets XXX these achieved an competed audience the network. We that in the them, best network share grow of seekers recognizing to without for the We many on top winning win as the increasingly effectively T-Mobile has past. past are we

of All that is changing.

proposition where So the same in strong. are rural in and underpenetrated network driving we've markets that value the and we're areas are advantages always driving and where smaller top XXX been in growth it

between was growth in net these our geographic roughly equally split quarter account fact, two segments. the In

Okay.

business. talk Let's

ever highest to clearly seen continues our added can churn, win at for business quarters churn quarter, Meanwhile, Verizon the again business was QX. addition lower and impact phone business levels for accounts of more Verizon's in from delivering quarters they've postpaid than lowest ever had which ever in The business. the highest incumbents momentum, in business phone Business postpaid customers to be continue one delivering net one build we reported. we're phone T-Mobile up as our We of having churn

relates as increasingly partner lead advanced strategic government particularly enabling to leadership, services, XG Our agencies. XG for in to become network it for our and us a enterprises is

Okay.

on XXX,XXX record hit additions again, once expect net of Let where adds. me in high-speed another lead high. to briefly Internet And the industry we touch

than that the combined In broadband had second a fact, quarter anticipate additions I Verizon, and AT&T, more Charter T-Mobile for row. Comcast in net

value more In average we strategy macroeconomic strength of growth and our revenues, provider. years results the Net best customers industry-leading our Scores growth and over demonstrate including addition, new million since this us now with cable pace, at best financial differentiated continues guidance our Un-carrier our importantly, network source postpaid and to and new increasing Internet flows. service today. customers adjusted relationships our cash services growth in has that differentiation X to businesses enabled commercial playbook that than products more than high-speed and are higher win, we the This ever-changing an consumers fiber and can EBITDA leading year, launch, time. every attracted with than quarter T-Mobile In we to even momentum competitive our environment. These additional And establishing to particular serve and the provide a core than raise into in is translated grow XX points just X.X Promoter our and with who higher this customer

you as substantial results. be thanks Analyst and initial could know, future, plans confidence and begin authorized execution prouder repurchase to our of this in XXXX. and a in than these share our strong Board so the I did Day our earlier of Finally, program team to not

to and you financial Okay, information some Peter, on about highlights our key over our talk guidance. to more

Peter Osvaldik

quarter such we our Mike. pleasure in yet again this did It's and to reliably team All it right. a strong commitments, another on deliver Thanks, watch with QX.

up in postpaid year-over-year. best the service in X% growth resulted Our again, industry-leading growth postpaid customer once accounts revenue

the Our over core on major flow also synergies, potential to operating industry-leading profitability year-over-year and achieve unlocks revenue increase business. us and milestones. is financial operating driving growth, continued with into combined EBITDA profitability cash driving focus execution cash robust growth flow disciplined adjusted XX%. That service and two of strong on massive at customers in enabled expansion translated merger further our our of free results These

effective for major company. reached proud from much deeper access pool extremely we're all three an to to and opening have capital agencies, rating cost investment-grade a First, the

capital capital both in And Mike which shares a equipment which loss of million program also price shares issuance established business, optimizing be October securities total $X.X impact related purchase cost material second, jump X.X attractive guidance into be our XXXX the and let's to opportunistic structure expected not as a in billion price reducing QX. September, source cost. share purchase repurchased pretax right, of we the the to details in the All the another reflecting any substantially sell. billion. sale million million the repurchase have through assets mentioned, net in additions cash increased as customer provides and closing Cumulatively, We total associated $XXX and We postpaid asset-backed we for now differentiated for of we on resulted $X.X first strategy of yet of QX, to our of in on significant impact carrying we have and XXXX. planned a to XXX,XXX Also the XX.X expect includes take-or-pay, This wireline the value the repurchased that to our our of at commenced progress no receivables, million, quarter. continue announced we million with associated the closed X.X is and timeline. X.X other commercial total transaction had both the financial great our liability a to impairment our The execution for to the to midpoint, expected up churn. based financial growth and XXth, between

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

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

the reflecting by Turning up year, effective to last full free now XX% deployment higher ongoing levels million routers. any cash and cash where midpoint. to XX% success to the material we assume the which we and the our including even net be costs it does by in the increasing speed $XX We flow from cash in $XX.X XG securitization. billion, we've primarily higher be is billion, $XXX cash over at of investments expect of to be for high range This now CapEx, at and expect midpoint, $XX.X in merger-related million now than more tax based XX% $X.X inflows between of $X.X not capitalize robust year billion and results expect from to on payments our between the year-to-date. billion flow, seen free Together, rate non-recurring internet benefits we favorability, with pace

high with mid-to-high Jud customers driven to full value with I customer internet, ARPU including expect year begin new to MAX. Magenta by year, the speed will approximately Additionally, to we in call for in services, postpaid now that, range. full Q&A. be greater added attracting the postpaid X% up success to up continue phone the T-Mobile And of continued X% adoption be And we to back expect with to now ARPA turn the

Jud Henry

right, All to get questions. let's your Peter. Thanks,

one questions sending @MikeSievert and to phone can using You tweet star ask via Twitter or pressing by @TMobileIR via $TMUS. a by

phone. a please. first Operator on start the Let's question with question,

Operator

first Thank Street our you. from Research. We'll Chaplin take of New question Jonathan

Jonathan Chaplin

what's much looks you on Thanks described, you X.X quick out I'm are early deploy open starting isn't that sale net leveling question fixed are just you the would adds? as as that of a to wondering, wireless anymore? actually. had broadband in off guys. adds addressable of growing you pretty markets you deployed market off leveling gigahertz last sort Are still of spectrum. Mike. the set of run such Is It Congratulations they quarter in capacity that for on a the I some results. causing your expanding just great net markets like

Mike Sievert

all. at Not

what fact, more market, capacity picture actually of sector by it than and by different makes In than is the market sort models. sector other that's

kind of this how everybody to Just remind works.

and question that would beyond mean We'll model. Comcast competitive, and that particular that a it's AT&T, eight extra come net that question slowdown to that that It's specifically market-by-market But where us model laid we're substantially that answer homes, so tower for rapidly only XXXX, doesn't the fantastic Neville all approving neighborhoods mobile of that than the we every many the we of years have applying go so it's the a not us When And for six And I'll It's it's other country far, not after significant not usage. answer, But cost unfolds. going that. we wrong adds additional how not So we just sector, saw when and relates per the basis. really this looked addresses as us we premise out looked to really is model? sector watch also at And have what's each very a this as network seeing about mobile Charter at Verizon, we getting might only therefore like people started ask postpaid all fantastic market device. neighbors the on the for taking because very, be. some love we just remember, enough meaning why run is complete we addresses said is model. predicted effectively your it allocate to through whether a model sector, a lots go finish to in is to capacity. rarely fact getting rate, And usage only and to this capacity. to then for It's usage capital, at it's with your we entire be to mobile requires and with growing. not can took in of I the million combined, share every to and And or not sector we're once, joining And which once issues approve place finite get in it to that very sector. any in no, that your achieved in stop particular addresses then we quantum.

in In capacity fact, story. ultra-capacity? you is we deployed mid-band we're about way right fixed megahertz because now it our on Maybe a journey XXX. it's the have not XXX And can talk to the

Neville Ray

say, Jonathan, reverse comments, Yes, Mike. is your would I’ll I just on the happening. build

busiest are We tremendous the Sprint. quarter, of coming merger since our of close back just off the a actually with quarter

mid-band we modernized XG. many upgraded In and sites how with terms of

is so And and spectrum those PCS which across the that's footprint, the adding tremendous. new band expanding the And more both in megahertz existing footprint in now, just also to not we're XXXX X.X the the adding We're also is gigahertz footprint. sites.

more months we as have not the we sites So coming And right. it's online and that, just for the and more company. years move spectrum through future

becoming piece XG more The is other is efficient. great that

We does are transport all means moving standalone. that home And It to we rapidly internet and what pure lane. of leverage XG all can mean? all SA, on traffic that a

better of efficient. a more So we efficient, latency. it's get more from that's performance spectrally perspective, And course,

see ability a will we by XXXX, leadership we continue beat Obviously to we in the still early to opportunities. Mike have of can tremendous we've mid-band innings as work support out this to position, And place. if in So numbers terms we we're a network. talked are good rolling but of the in our about said, those

Jonathan Chaplin

guys. you Thank

Mike Sievert

this product is – people about that product just this the promoter are that wrap on balance love it that in us what And And net and to because just that I we're fantastic. on in keep this One all but my price of exactly for home remarks, mentioned thing I really, really does love scores our it promises. of seeing it's lower to important it's millions served. journey millions and we because it this

Jonathan. So Thanks, great.

Jonathan Chaplin

Thanks, Mike.

Mike Sievert

question. next right, All

Operator

to MoffettNathanson And Moffett of Craig moving on SVB Securities.

Craig Moffett

you. Thank questions. there, two Hi

purely chipsets than network the it? First, you be looking sense example, of that increasingly exception, sort for commonplace how that become that is really forward? story for some do more a customers? the metrics we just a you note, to internalizes a and norm the that, of you've be about XG going leased should then think market kind and thing, known advantage of and at previously And the becoming trajectory And What of bought is financial spectrum think as longer thinking resonating can on for advantage in sort with the how get should XG consumer margin service term? sort way margins second about particularly network where the more of your telling as in something we business

Mike Sievert

great. Okay,

the bringing on start I'll about what's the where spectrum, second trajectory, can with get, Let's with leased start question Peter. margins margin

Peter Osvaldik

and this been free our the rate the lot that this And been yet the most run periods, leader invest ahead that of in where a set about before multiple ability competitive aspirations look revenue laid how as thing hasn't you see, and months able tremendously continue come proud to to Capital flow? flywheel Analyst of regulatory of transaction thereafter. to capital, of to projected some out powers get times cash Day to But that obviously margins revenue translate cash business, where that I return approval competitive in is there. this as business Day, of shareholder relative has set. But is in And important Analyst a we I the we question mid- with from potential in inferred to free land long-term the terms this and that's Columbia projections are at, about of success service would into we even announced excited cash the opportunity the there service and there flow later are even service and again, convert do Yes. long-term and mean, And for are six close XXXX, up our Well the the we're that's with think both trajectory a this again, Craig. the set what to of we because subject it growth business industry. to revenue is you further us. in into we're to full our

owned it really that's what of we're on. capability And value really of creation out all business. fiber of the so shows of takes that fiber, this you gets rid laser-focused It noise leased and the versus question

Mike Sievert

anybody Yes, company consumers else treat that bottom available signal, capacity, just have question, in. they price to consumer right and and available back that at want they love and speed and want an the signal I'd jump to they that's interested and them if And a be line. will wants where want businesses the a great from Ultimately them.

a where kind puts want you forming. into? they when is usage XG network network now signal or people that do the is prior our and popular are It's now or Magenta significantly what as us in go. two around, that several And seeing that they kind top terms habit like why our the Our and using T-Mobile thing buildings you popular move more of satisfied expression with reasons the just fast. overall a plan question that either your We're they is and have? Remember becoming because powerful you we companies than one And more. they more network. are plan, were plans, have, people using faster into different certainly Wi-Fi be just are the walk you the lead XG are LTE, now said, signal. company And not more people times switch or best The you than the all using The is to leader it than and norm most of I signal MAX. about of signal that. do are around is you moving in prices, provide offers the XG really the most Wi-Fi switch position network everywhere password building they have in walked They learning the a When is is those more probably because price in T-Mobile of begging for the or were switch. more they

so, are it's the of that's AR phones our like I network consumers, the that provides of media I'll kinds T-Mobile people what look The know actually last gaming, emergence it. the a so VR I have some applications signals. was It's And go from weeks. the like of at and those it's or it's new question a uniquely are and underpinnings think, been. on share cases providers reputation. with never say, that And like win to. and it metaverse. of businesses XG matter about you XD metaverse is capacity, take unfold, or the what for go And They thing our each is just No all powerful test advantage. your the ultra-high things their about And might They latency, look believe XXX immersive the are those experiences more clearly that, on consumption, things require low use way. not how might don't

And so employees it and more a look it's certainly side than really all and come by customers than at shows side, where their where past, you the they times go, times they back. that And go, not they their more look at take it T-Mobile. hard when

hold. this to revolution Anybody of, we're I really XG taking want that? So the add beginnings to think, at

Peter Osvaldik

and more one things to I might or just is more couple the emphasize network. XG becoming two said. that say a you

overall success T-Mobile competitors. perception, in the marketplace is of gap. us I perceiving XG succeeding how one network we against close the perception in we're measuring in how are ways the two think so that increasingly, And are overall that seeing competes you're And main our our people

never can double-click for into us and Neville network seeing had of leadership we overall also some those. awards before, You're that win won

you'll when think continue really we've Coverage both we feature a internationally. start air and we'll as be a we'll XG best experiences best of network, way and businesses the about move, next covered Beyond consumers the words that about the in that these talk coverage that use about of network and covered both couple appreciate to more and talk our in about you. featured I emerge on to ground, the more where that that could with can to I quantify ground, cases the over care increasingly, see is customers the you're the the progress more when on coverage by and leading kinds unlocked think And you're of bit little and years this Final places for network. experiences

that XG usage XG of just most are in quantitative reputation the devices, Now take lead in usage the and is not most of root, measures. seeing XG but reality, devices our we're and

Ookla follow-up question? of type, So to back was other ago, it. Did you experiencing data Verizon. can a year for people I because came fast get from a example, average the they as they that fast tell just starting our jump just AT&T as or said and And that's powerful average as have regardless twice customer in. as is speeds twice hear customer, very they noticed you and that, about device

Craig Moffett

No.

Or the coverage the can propagation gigahertz spots it that you see better going is issue be map? – issue fewer because an to C-band? say, than, more an spectrum is of Just your a dead X.X is about on

Mike Sievert

reach if Capacity. people mean, by that's now, their I Well, million right now. that other to Verizon hope from forms you years And over Ultra the disclosures calls as with total it's public where Wideband XXX two be Ultra of with and they we it, C-band

assets. two ahead. years, were though assets. this of different C-band two be to continues we'd And in so And appear be ago, our now race. the deployment years are said case, of still rapid years even I in XG their they in That to And ahead years course, two are we competitors

important a signal to that's including scenarios, it resiliency as of see capacity a happen massive XX% away high low-band. even XG low-band our of and underpinned is a difference storm issues miles XG Ours of the And the on core they When And customers, our all stand-alone those in XG one we kinds with from huge notice. a with save a and that something, Americans. very things on with we XG by in day network very network network. are or reaches can maker well, beam

Craig Moffett

That’s helpful. Thank you.

Operator

And John moving Hodulik UBS. on to with

Mike Sievert

Hi, John.

John Hodulik

Mike. questions. Hi, thanks. Great, Two

First, churn and ARPU. the

– terms the in solid ARPU. mean, of on turn, Sprint improvements X.XX%, think as postpaid all given on now you continued low, that on I given very sort plans, improvement. XXXX? one penetration? of there low do the the growth is Magenta improvement the in look same are into Magenta Thanks. talked about same think still you and network, I postpaid obviously, outlined on churn sort room T-Mobile with difference is single-digit and think phone the one we guys the I is just everybody churn, continue network? the for on can between terms I ARPU First guess plan past, the in and relatively the you've the or Max you And other of where what And of then just

Mike Sievert

a way really and competitive be and to the customers. journey loves marketplace. so just have not one. our Great. best Okay. go the can't you a now, I'll make one. personalize number to Magenta heads it's We the two lowest. to, its number lowest. I satisfied value I'm team you just Peter want to we're On I'm it. Magenta be to number because Right network going the to that And turn and the ARPU we're churn. have should we on Max. going for up, Jon until on and a churn, I was to outlook best

used to to do and standing Our in many you it think that the migration Magenta But than churn question some and give that. et aren't and lot premise invisible how team unpacking for be one. will T-Mobile probably a the our I look of not color I starting and Sprint We like our people more unique customers. Sprint with that respect and cetera, We're because XXXX still. network. shut We've on them. should number was happens proposition, here's to largely to now, the we our you assets be the be going accurate. hope the down We just competitors billing your

that under some full them work to it's we satisfied on improve them We them commitment. to won't need base, we're uncarrier customer There's be do of and on how so We number undertake the one right until give going one. yes, get can plans, to customer And we base. be improvement do. for benefit. we're but we need still, have And a lot get churn to one I the focused

Okay.

So turning development and and Max Jon. Peter hearing customers, ARPU we're and to and ARPU Magenta from what

Peter Osvaldik

Perfect.

and anticipated relationships, so increasing X% the had very let point guidance increase Jon you focused ARPU Max examples metric. relationships. we had And that Sprint But the we and year-over-year expecting been of where ARPU one itself, and course, Magenta the ability the mix-driven of a trajectory as such I'll is the expand we're allow our of a just T-Mobile time, just as just think some get year. the for ARPU deepen reasons out, saw So even happen, to with But mean, to migration about when and Analyst example, a are, I such to we at same to opportunity ARPU success during is plans know, phenomenal. Day we're has when be came tailwind the an as much why have customers, the a we Magenta just you on you of about And us really, this talk history Max. of

And a perspective. second, tremendously obviously accretive fourth can is ARPU and it's so line third, blended from a ARPU, lower impact CLV that while

large has obviously, blended CLV to in. tremendously see, ARPU seeing typically lower So accretive success a that's it's where basis business of enterprise, business one. what In some business, bring a than you the you're in but

XX-plus differently is one you may switching in but see bringing than be what ARPU see a significant high and on another of segmentation a Our where driving blended mixture prime we such CLVs. that's amount customers approach, average,

that's And where more seeing focus also with mid on ARPA we're so of to the reason and relationships, as continue in strategy both but And with that's to us high such why year-over-year fixed beyond part you've and ARPA. the phone, expand to wireless. X% always land increase the heard phones, the

there. been the ARPU, things Jon going see Max has think And with great to just a of So happen. to brag a it I I'd a give And you're such little. tailwind. love mixture But lot opportunity gives a that me about comfort to do Magenta of

Jon Freier

Mike our with plans. said are pleased rate under just like Magenta all are base accounts be still We're you choosing Magenta more our customers our think XX% of joining happened existing Magenta the a I new popular few having it's new most T-Mobile, that changing also couldn't customers who XX% of Yes. Max. but that total ago, moments of And our what's Max. on We plan about not with mean bands new north we're for joining, Max. when of are only what

still Peter still the and what for that well. with business the moments saying have that benefits not we as represents consumer was for but that, just it benefits a only within few ago, So incredible represents, also our tailwinds base, opportunities

proposition month in about to Max. and included, budget the our you remember, XXXX. years something of consumers talked more, out Magenta number rolled with or included our two many that's some and XX% look included cycle we're this think got I Apple the $XXX that's when with you at And doing about TV+ customers in You of of Max, fees, XX% you about that Netflix when Magenta taxes included we the that Max, that are households now of too, what within think the for beginning with on and and all it's That's savings to on value Magenta at Wi-Fi on per pressured think completely ago, think bill value that airplanes, lines about get. so inflation, competitors

referring well. incredible a more an virtual utility, more was Mike more Xx those it. video, reality that Like customers all technologies and gaming, media, there's our as Mike loving X.Xx augmented just Xx ago, moments to few reality social So said, emerging including are

customers our So are loving it.

We particular have lot but within of more could performance and pleased card. be still the overall Magenta we're feeling to with great a rate not that just more go opportunity Max,

Mike Sievert

Okay.

Twitter to go we come we're questions out go to to where want the back seeing phone, I Before in.

We have @LinkedIn, a right. question from Roger Entner and a from similar one

So I'll version. go with Roger's

large what you question, going also the I'll all of fine. a success? it it's their and because enterprises? the you Where going And Field In competitors do for traction? TFB. or maybe said is Callie, gaining business in question the to add Business is midsize most see So fine. are SMB, calls, Is Callie business sector

going what's on? if can you said maybe answer So for it can is everybody? going just How So fine. We business be both. going fine

Callie Field

and a course, attrition. XG by we XXXX. networks I see see connection have AT&T too year, I I business providing and X.X%. Yes. grow by as TAM end subs question. of Mike, Verizon, are to IoT in can't expanding. you. than Roger, will We less grow from for thanks – Thanks, all to speak see of expected this XX%. CAGR hear and services that over be lines are work-from-home do subs of much Good well Mike. companies can't are to we the supposed to to mobile category but year-over-year. by connections third private the expander, are employee have to see and business expected a And the managed XX% XX% A

electronic from we talking product SEC, the So and us environment delivering then maintaining and this way us allows solutions. is expand to of some to that providing the And coming and a regulation portfolio our secure benefit when see they're communications and that about. the we're

double-digit fixed seeing nationwide lot seen for up of our in We're a a offering Roger, growth really we're question, XX% only your really interesting four of double-digit to enterprise which Internet, the conversations. and great our for is for In wireless revenue solution, quarter-over-quarter. XG opportunity growth business quarters quarter-over-quarter us. there's then, having we've lot in a In SMB, year-over-year. row. So And is

signed VinFast, deal a So saw a last EV in with lot manufacturer. this in we particular those global which is and quarter in verticals We automotive airlines, the of growth.

our Ford, Advanced SMRA with partnership to with is where wireless a for in Delta, opportunity we which We won in largest started land Network have with let consumer, growth America's we rural Boeing, our retailer win Solutions. and America us a the fixed partnership expand. and Supply, announced with Tractor rural

PD, public the we're Roger, IRS. great as the in Chicago sector deals ISD, seeing with well, So Dallas

then So voice it several Overall, business. SMB, and we're pretty a is see to for of really only there. different time in exciting outside categories we're product continuing across growth

Mike Sievert

happening, right. two So things are

talked labor back. We persisted And taking think That's secondly, with this pressure themselves clearly our you thought, we and expansion hybrid to while we're sponsored now and value. longer lot we kinds way office, bit a told their you of pool, in outside people distributed workplace really forecasted employee tight of is And a that you happen and which the little But very a one, of happening, superior about. being because share. this a become I predicted. told competitors, great that companies at good those. the piece. retain by than more be has taken important So the plans better employers exactly all plans – find the employees And that's would because the would we network employees this off are of is employees, phone of one that of certainly just looking just phone category Callie thing, that a for what

growth which think we’re the of share. little off takes a see pressure I sector, is dynamic, you the so in taking And their which underlying

Okay.

for the back the phone go let’s So one. to next

Operator

you. Thank

Morgan Flannery of from Stanley. Simon we’ll Next hear

Simon Flannery

Great. Thanks very much.

We’ve day debts, ads. seeking another continuing be TAM the phone lot postpaid Just million updated would other it talk Can will any just there thoughts a help that behavior. We there. over bad the But of may behavior, that weaker quarter, on value cetera? you terms you outstanding, companies talking great. hear expansion broader like in et of looks had about to any sales consumer a of sustainability on comments industry and do X customer the

Mike Sievert

have comments. I’ll a have I Peter off start and couple Great. then it

Peter Osvaldik

Yes.

So debt and bad let me with consumer behavior. start

pre-pandemic did foreshadowed QX debt seeing XXXX exactly We revenue sequentially and pandemic-related high terms As levels. pre-pandemic and you we the we’re you of step of do which percentage was we believe actually QX. what And total in from it’s conditions. debt see year water know, for a in bad perspective. down mark bad year-over-year, roughly our increase more involve muted certainly from bad to was the you levels, saw debt best normalized churn

beyond strength it And see a talked think we a strong on tremendous and on but what set? you as this see, rate we’re also uptake then Jon within about speed we’ll is both that exactly your consumers. thing seeing really, to Remember, seeing opportunity So continued, an I there. T-Mobile as anticipated internet, Yes, that. ours of plan. our work base, allow we’re mentioned, uptake before. we high that’s to is we’ve expand new really highest current To relationships with to our continue us with seeing, core another featured And also point,

I I So very, all for questions about the what Simon? very And trends. think seeing of, had optimistic there Is you. anything, I that’s a we’re hope those lot

Simon Flannery

overall postpaid The the growth? sustainability of

Peter Osvaldik

proposition continuing tremendous again, was XG been Yes. differentiated in leadership only with Well, spoke that do growth saying not we’re differentiator believe tremendous that in for opportunities it’s in the for Mike combined XXX and and do earlier. is always we’ve ultimately remember see overall is the continues leadership. to things this fame where network smaller are were about and But that that for there. that seekers expansion the us another to this And top markets and in combination the industry But of the normalized. value be plans. that two one areas, we those turning rural also combined, Network always our have into success the our the for our we longest network time, plans. are TFB growth us the value It’s is

range take Our we to mid postpaid of those ability because we net industry account And ever the now, differentiated continue network combination you the to a the So to and grow those will for X% fact the for and of switching and right? true us, and that the measure results, deliver land believe relationships in normalize. ads, ARPA. in anticipate of the to we growth as to continue opportunities, we’re know, despite the and high do going that share proof is value highest

So anything to that’s how know Mike, we’re thinking it. thoughts? I if there’s of don’t add kind about

Mike Sievert

normalization that starting just is happen. Well, to

and these last postpaid was overall fantastic. yet our moderate, more growth is quarters, performance see couple You

said, consistently quarter. underscore reliably does what is taking which quarter it on so predicated expansion. something we deeply do and Peter category actually isn’t on And after It’s predicated share our strategy

And I Prepaid there’s phenomenon. postpaid pressure And to Now be at more that’s is levels, way, some contribute – partly as happening. being to to a the but to incremental. continues us by off. expansion newer there’s looks taken business mentioned, that modest

said, our assets So competitors, for our some phones where different, And happens. so penetrated we’ll quarter the and team, about positioned we that have people segments Peter the strategy, and what’s to are the the is good around course that’s actually unlike have carrying category. two what of see as value But that’s we’re with And big are proving growing true and to win under quarter proposition we out. in that that resonates.

that I a little different. our story one of makes things think the that’s

Simon Flannery

you. Thank Great.

Mike Sievert

us phone. You in? us you force Are going bet. to Back or bring the to you are to Twitter going to

Jud Henry

question. next Operator,

Operator

we to move If please. Twitter. Yes, can

Mike Sievert

Okay. All All right, funny. right.

So we have questions that pending. a are do couple

Neville the at are where on means LTE of the converted update is of What we shutdown are network. substantial the did we finished the them now sites. looking days? Sprint and integrated could What give VoNR, LTE lot just been Sprint that’s we But one keep also we’ve the percentage new that over that And with over in voice an worked upgraded? of of network, voice kind voiceover have radio. network you like a XG So

Neville Ray

Mike. quick, these hit I’ll Yes,

And sites. part we’ve term sites the this was used at is network. majority of definition it talked work integration. big of that too. literally that’s into T-Mobile about we’ve So decom, effectively incorporating thousands thousands the in was just completed that’s And upon And the not complete a our now keep how that of network Sprint

quarter, last this lot lot a of air. upgraded were on and a brought sites decom, keep of So these

with cracking all we’ve a just so it made us – And build was quarter for too. XG the

that us. to XG. really with move work pleased of really, the So continued And coverage in behind we performance can now expansion of on vast majority have and all of

Mike Sievert

deployment business quarter So single biggest it in capital. of year the capital plan was the for our single biggest

than you more you tired should look So are.

Neville Ray

think in the the new ever Thankfully, of we’ve quarter, yes, on I guys. don’t sites, I was busiest remarkable history. have on performance It performance the modernization. Mike level seen decom, and quarter a think network on great team. But of I characteristics. Thank was you, last set delivery company’s a

Mike Sievert

there’s the you build beating shows dust, being points in and in network highest the affected When touch year-over-year it substantial customers And and set the get simultaneously that yet you’re noticing with touching were that people they’re able improvements, a history, the while improvements improvements with rate really the not network churn that’s showing our That’s churn and player second we noticing Verizon a of So powerful. row. only that a very decommissionings of to – some of at for quarter do people the basis upgrades means pardon X planfulness are our deliver they’re improvements. just temporarily. noticing and

Neville Ray

we the some from importantly plan. together on time back. an there executing throughout into team was obviously intense more the at better NR. we And on focus put churn customer were Quickly on as management, the that but way, experience moved voice process. way We And XXXX, over

globally. to multiple But forget us leader always done a see to next technology. along I it leadership the bring We’ve times position we of So seem now. with as generation in voice

voice a several NR, live XG have over voice We so in markets.

about we’ve VoNR business XG important a that sure have lane. and a see XG and Today, to our customers full our we critical voice lane to drop talked to capability. It’s that executing off that XG XG continue on is we of network before network we have service continue of all have making And test, with onto having our traffic, We experience and to strategy all all important? on that an is Why we to customer how as optimize. LTE. of want that full because down we standalone

progress, I’m of we making yet. materially where say not still couple it’s next we’re to going over expand to to the got footprint. quarters So it confident that will I’m But be do. work want we

Mike Sievert

Neville just while operator’s question. we guys watch, And on can with can that you all take the I stall back, network and out tactic a – or afternoon if bro

Operator

Michael Rollins Citi. to go we’ll next And you. with Thank

Michael Rollins

Two Hi. if afternoon. I questions Good could. Thanks.

for can inflation, the first, issued achieved flow, core looking to look back of for couple getting how at progress business the days wireless fiber just guidance, the cash the and the these in and ranges of after of network run developments your businesses? that respects? ownership pace of model increase a to substantial in at unpack you success the looking fiber EBITDA closer XXXX to free homes the as those the you’re then So front, number or and at more and about into it’s thinking the the can the we’re you network, on. of we intentions previously growth a realization have And you’re some are XXXX that fiber pipe as synergy broadband you’ve CapEx One date. secondly, And does also interest on a fixed to whether the home impact of

Mike Sievert

one with Great. Well, the let me second fiber. start on

about really the place same we time as this. in the last We’re talked we were

a which is, we management as time, last the a minded to serve this we source customers And wireless as we about a very of And are whether about are fantastic broader move our on brand, plan. open That focused asked could a our strength. said ability place and we our XG And our our fast network been in have a model team, got serve I fantastic think I it’s big and ability it. pure-play. team, love markets. business execute, business to

utilize would digital of those our smartly including And so interested and we’re distribution all adjacencies physical assets, of in very course that capabilities.

interested. And so we’re

any success interested. a fixed us could XG the less interested about wireless obvious It really reasons. both of I and drawn more haven’t conclusions it We for can’t little be makes answer whether or

to have stay you’ll So tuned.

We’re it. a having at look

do the to that One try is of learn. we we things

in broadband so – operator. it now that but home are very people, many that able of very realizing T-Fiber mobile, with on I’m And with to a some promoter to us us confidence plan consistent at what pursuing about that. And at starting many ourselves smartphones the then with XG, can to do net answer we’re pleased that are good We we’re and of be at make learning. we not we’re It’s success taking but thing? said, we’re and we’re takes because you to called also a a different. hey have guys looked that some you slinging customers and care be broadband lot our learning that in to small scale partnerships sure customers course surprising for could scores pretty growing

conclusions. no So,

that plan, just our with we We’re is we’re building any our accretive a a, hopefully a smart for we trust can augment those and that plan that ways And this confident in plan, a look better at team you haven’t things. if makes find that like investment drawn way in conclusions. we you, to we’ll

the gratifying it things was like they and relates audacious the that live is you, then, for range XXXX, changed. of have you spring has revenue hit initial might including for one and since us the we the lot things they than to ahead and that be for market in. EBITDA out has even then although the it guidelines we to No, answer the parameters short mean, look thought for yes, although the anticipate XXXX to but changed differently much XXXX us, the to it’ll look we the we it’s as were our so changes in track incredibly laid I that’s and now those The that's one to even guide. customer some though different aspirations, a in shared, that and pretty much out didn’t CapEx we beyond cash range just like, on ask Peter and changed. is, roughly XXXX those look than early. out because stories has so than outlook. right of laid As world flow We also to in thought. And and the lay so The nothing buyback tech and I’ll three and us our a different share in of plan ahead about Peter? of I you things A story other we lot land though asked. I’m amplify. all question potential ask the very aspirations, changed. makes has the there telecom. the changed, therefore, in Peter out has start And glad the answers, months things that the shared, All go

Peter Osvaldik

Yes.

MAX situation the about labor early with and arrangements Neville cost changes. I of on labor. in a insulated categories. terms environment under share-taking a rattle assumptions, can had on perspective on it's And have on As been we that much a the just a the lot Day, the inflationary our were has where with of that lot made of changed. a we relationship macroeconomic I is we what Analyst well, you well. the so think the done has back I secure just we've course, moves as to that that now, there's a a tailwind secures of because, Day how again, large to said about Mike, certainly, reflect that while rate our it is the opportunity then think changed happening just team When lot lot moves since point, off of of your such so and, of has as impacts success saw in DISH anticipated to The to long-term the What in ability We've we from edges about our debt, that happened. been talked from quarters seen business bad ARPU the brilliant three arrangement and we've revenue. a as much from Analyst still they're the – But part Magenta things and address macroeconomic an of of that secure lot And and we long-term ARPA lot of tremendous.

guide. we'll I I'd of at as call that in you is a there's and confidence many this changed been our achieving takes. later. XXXX. goals to And so the then. the we'll, in update XXXX and has world to gives update on So for the us team can there much is time not like that we're you treat we so of QX said, of out This since But looking course, that sense, audacious obviously. looking to. that. do And set Mike, Maybe forward puts success But what those forward,

Michael Rollins

Thank you.

Mike Sievert

Terrific. Thanks, Mike.

Operator

Feldman Brett to go with we'll Goldman next, And Sachs.

Mike Sievert

Hi, Brett.

Brett Feldman

You guys hear me, okay?

Mike Sievert

Yes.

Brett Feldman

Okay. Great. follow-up Kind of network. a on

guidance CapEx your year. up the nudged You for

the the talked and network of You also high-speed the XG about Internet the sensitivity accelerating build-out to routers.

picture mean way, another to at extent forward, so think And rate your have question CapEx? run you're integration, to fixed point over network And going X.X it do quarter, are what to Or wireless? to? to that now sensitive keep increasingly a the bigger Thanks. What's drivers traction a it is, from of this right that up you've what the most to be Or your support nudging to put the sensitive putting completed keep network you're going you net with is now? that you does inevitably adds if up growth million CapEx? principal

Mike Sievert

on capital start. I'll an Yes, is it doesn't incremental No, plan mean essentially free again, wireless plan. our fixed business because, that. And

space look We let rule we'll we're plan millimeter capital, plan the about out fixed look increasingly there's business that's something tapped we assets. opportunity we're we wouldn't wave that decide wireless augment have with surprise about that's you great burdened capital-free barely growing question completely you at to our know previous But that. – because that. learning business assets. with we won't with We've and if if we at and some additional to confident, our an and Now

reaching of to winning deployed they XX is like have mid-band switch. has The the this mid-band. that's already us And by first as Neville recent access people. auction where million licenses year is going when fantastic switch. flipping a already to deployed. soon fascinating. as – this given have towers radios actually assigned have significant to assigned, the It's are towers, XX,XXX flipping the it's additional areas We the our like potential end we bids, we auction in Well, those soon like that's that where are – a not

switch. For me, flipping it's like a

Neville Ray

Almost.

Mike Sievert

auction. and there, just spaces It's the almost are allowed the transmit want the immediate because we radios in white that they're to into not

they'll we're job a being and did FCC completed. I getting great the the this auction see great process anxious job done, So a do those And very know assigned. to getting

So the that the not the that and to call, capital see capital the something first on so fixed to we an or business capacity. wireless – answer additional in no, is very predicated because on question is it's unless

is from as want Neville XXX about plan capacity ago. that to add a going he Anybody to minutes moves core a add few Our the commented XXX to that? more to lot

Neville Ray

I and date. on, mean our modernization the network way ahead but majority we're of we're I'll the more – to fixed continue for we're We and of those that will of network going wireless. mid-band much in open into achieved I more obviously, just add XXXX, our complete quickly. radios. competition. addition so continues still that's not do, I modernization mean, and on have we referenced the opportunity, we've XXXX and mean earlier, as up to continue to to

continue coverage grow. Customer I grow. think the to These other to make, to will demands piece continue we investments. continue networks

and do have got rural enterprise feed in Callie business great work We to space. as We've our small town America. We growth, in referenced that. need to still

is CapEx combination And profile XG to both. the overall we capable, everything coverage XG. on And network our that it's is of add feeding So course. It's all of delivering back experience. best

earlier we XG. extend K. forward network, is our we the go on, great and about that. a leadership have plan position, as is So all as Mike referenced to And

Brett Feldman

Thank you.

Mike Sievert

All right. Terrific.

Let's to the go back phone.

Operator

Thank you.

Mike Sievert

is this last think I question. the

Yes, Jud. timing me, tell You wise.

Jud Henry

more. one take We'll

Mike Sievert

Okay. Great.

So we'll go the back Operator? phone. to

Operator

will And that question Thank come you. David of with Barden from Bank America.

David Barden

it. Hi, appreciate much. guys. Really so Thank you

Mike Sievert

Hi, Dave.

David Barden

Hi, Mike. Thank taking my questions. for you

could. I share. I mean which point first the guess, a where we presupposing, So be, I T-Mobile guess for this are two, shares to over is would Peter, get if $XXX I

overhang you that, bubble" address that's that on shares that contribute to options and very issue expect to then advertised going you've use lot buybacks. can they buyback. I to table performance to and this that churn million SoftBank's how bit wondering going the structured of about lot XX.X Mike, and how the of And your or of question, selling – And share kind think the the with was quarter about third a T-Mobile? switchers for use if could market affected you of going we're if thinking open We shares the change kind the your were of this left to market we And in what for that that you've you. those fourth second got of that and have quarter? a that, to in the this the could, you they beginning fourth operations of Verizon would unfolds? market could buyback the address "churn mean to that have a think quarter. Could big should bubble Thank what at as would SoftBank, I potential a – little quarter you be how how that

Mike Sievert

what, our Great. is Well, this just a premise on maybe ever we'll for give which to, assuming merger have and could you way we what out $XXX Peter one. only coming always that, I XXXX, the the dilution start I'll that first plan outlooks been we trigger, business all is you the that's would thought with since it it's and during because we've we gave think. accomplish, where it, then wrote event

And to sort buyback? address about do right can about that. But we're the talk with interplay share. overhang, hope how Peter, any our minds question, so maybe, which of its It's piece and been, new. second we'll we the nothing about on have there is way. that's you I get the is then share yes, always And the

Peter Osvaldik

Yes. on out a frankly, assume And around no happening SoftBank, this plan now. delivery $XXX that happen, we would that I consider achieve that Absolutely. to right? to expect, you but serious And of and discussion obviously, they because gave audacious that have that's But we assume those that much goals probably was all you'd you'll And like to as this those Dave, would share. there's we things. ask going

And what at so around discussions there SoftBank the are that's really assumes. no because exactly ongoing that, significant moment probably

rating well so So early. got – significant on earlier of we're pleased you, and as tell be progress on that share buyback core we're the to to progress, the to success a program able able just being to achieving investment-grade buyback – business the as I and begin start family share integration

remind the with come I Now you $XX.X shares, restrictions. some does that million, will it SoftBank on

ability shares, of hope their long-term that's for That's were the about be shares. what we question are and to but You they'll between and those But there. agreement them those holders with terms them. out a selling happens asking there in me on that's of sell us, part public DT them restrictions

sell restrictions in ability example, but XX% at but there's not everybody DT For a in shares, ownership of end minimum. mind any of keep might monetize SoftBank sale, other terms there a they of not at those of There's some XXXX to they the shares. those that some can't employ, shares matter have a at the amount through can't via what. that they mechanics sell is portion no They certain should

Mike Sievert

dynamic then with Yes, we're companies. of people way. our by really the And bubble, what mean them few these stepped between look, or looked competitive will while it's use. whether competitors and stuck on quarters Right. mean mill is long-term very think, philosophy that increases competitive in sort plans do And a phone to that it price out churn way, consistent time up there's payment our surprising they're I I there. us, in Yes, into like by competitive tell the jacking difference the not have last short-term. in seeing or I

said, and few And worry, don't some that brand. we building have mean be weeks. short-term now, but you power be and and decade grab up you decade that trust the bubble, as And you T-Mobile for close favor. and I Net competitive, fame our rules And and network. best the of customers, that as company is value there a Promoter absolutely And in there we've of is inflation we've customer over. say days. got a will will obsessed all now down. could people and industry of duking in network gives it's Score. as on when that the then for We're the become this it'll company Our They're out with shown saw the rapidly some money go first the that. all been transforming That's the a side a puts it's People best and those best similarity these trust a changes competitors your XG, this and that what an the on excuse to perception-wise, all our leave, a over of don't happens into not brand. it value gain forget that's lot It's even all We're year. that course, of has now not fame And advocate. power you over. customer

they year. not for value close, even fame It's this it best the made Our is and theirs. twice having worse

our that And passage carriers, there the the better because what of un-carrier. effects time But unfolds. slow because we're the value that the you so customer will word-of-mouth is that ongoing Yes, short-term the we'll they how perpetuate ability gets with terms and of may down. in onslaught some the bet fame success see to us advocate built I better be their that and and people be of might initial for customers did our of to they're leaving on

David Barden

much, you Thank great. That's Mike. so

Mike Sievert

all is Okay. And Jud, the Great. time got? we that

Jud Henry

have joining appreciate everybody But again, today. That is all time us. really we the we

to or to please everyone. Investor Media and the reach you questions, again team, look speaking you out you with we If any soon. forward other have Relations Relations Thank

Mike Sievert

Thanks, everybody.

Operator

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

pleasant now day. a You and may have disconnect

T-Mobile US (TMUS) 28 Oct 222022 Q3 Earnings call transcript