T-Mobile US (TMUS) 25 Apr 242024 Q1 Earnings call transcript

Company Profile

Participants

Jud Henry	executive
G. Sievert	executive
Peter Osvaldik	executive
Michael Rollins	analyst
Jon Freier	executive
John Hodulik	analyst
Callie Field	executive
Craig Moffett	analyst
Michael Katz	executive
Jonathan Chaplin	analyst
Simon Flannery	analyst
David Barden	analyst
Eric Luebchow	analyst
Ulf Ewaldsson	executive
Samuel McHugh	analyst
Kannan Venkateshwar	analyst

Call transcript

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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, Strategic Adviser, Investor Relations for T-Mobile US. Please go ahead, sir.

Jud Henry

Welcome to T-Mobile's First Quarter 2024 Earnings Call.

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

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

our and on Relations Our well results results, be earnings to back documents and as discussed the book website. reconciliations results other found release, this GAAP between Investor quarterly section of as related investor can in non-GAAP our call

And over with Mike. it that, to me let turn

G. Sievert

Jud. afternoon, Okay. Thanks, Good Welcome. everybody.

a to of We're forward you're team here. from senior you to good part and If you a I've online, watching we're coming the Washington can Bellevue, today, see discussion. looking great got that

QX great some is the a and are in the I'll as we're from accordingly. we we expected in in off you board year guidance our increasing on The and results, year briefly XXXX. across then and a your few our fact, to we'll unfolding right with get to touch in what better see can areas, highlights, line And for questions. right start

comment First, growth. a on

by right lower We were were with line in while in phone just QX net take last adds net continue QX percentage. share to adds double-digit as expected, that industry postpaid year, a with

were proposition matched ever even phone while showing for love postpaid fourth quarter, Our to that gross in postpaid value up phone and adds best Un-carrier resonate our market. gross the best adds down. QX the our value, With year-over-year the churn continues we network. network consecutive customers best And industry proposition

phones a on postpaid lowest comment for QX. upgrades those in ever Second,

that retention I which stay part winning and the of The our T-Mobile postpaid is term. powerful a only our they that already network. metric letting have experience have the customers' as over to enjoy, network the where our profitable demonstrates showcases smartphone, customer is put pace choose the growth best-in-class drives with we they formula long the think on drive strategy X/X ongoing network demonstrating they're customers of increasingly by for value our an greatest a loyalty can natural customer and phone differentiated how the investments T-Mobile It having customers this upgrades. also XG of demand impact,

smaller exciting segments. large still Overall, from growth T-Mobile's durable, core runway part consumers for most across our of metros to continues from market-leading business. that And enterprises to the there is the ahead growth markets in SMBs, businesses major years are differentiated and momentum many

Okay.

as nets broadband major nets of even share the a broadband. to Let's than be great been expected than all our XXX,XXX value That's it are a providers industry higher from X for ago again. we broadband the Home did talk fastest-growing formula us past love broadband too. a provider made and great that's years. net in again the expected are year represent QX a of on once customers network, the more and half to adds

the customers. way high-speed million would. strategy over serve is we exactly proudly Our X it broadband now we Internet unfolding And said

sunsetting our nominal announced, value that at points. customers growing we're promotions previously of customer Langara successfully we as also ] And attracting the base, [ and price our

are customers intend to for of find we serve this latest plans home just networks on-the-go to ways the In ways mesh addition, our usage space new the better. to value enhance continue and for and new rate

Okay.

for announced venture capital-light Europe excited customers. acquire the model, brings a U.S. the last one and even to today, and that example the everything infrastructure been partners. we've Consistent such to on to leading year, And great have of Lumos. table. comment across this fiber. me JV and Let and experienced with is we us joint a investors is wealth with we're a of for latest EQT will the a would serve knowledge more that while saying smart said I've allow partnerships fiber broadband profitably EQT the of

is has The build has Lumos management We're the in years ahead. cost-effective team to to more households efficient, more in excited doing to really building under accelerate been able fiber Brian experience and outstanding what Stading and an targeted and reach of model. be years Lumos already

XXXX, $XXX invest get than owner including by relationships, million a to customers upon less to and will about to we million Lumos there. now, X.X convert and and year XXXX at T-Mobile wholesale $XXX model. will another fiber between we XX% expect million target own and Together, be homes close, passed which T-Mobile as of a expects their existing customer Lumos a will 'XX the close, from

with to the expect is contemplated we stockholder we that track you as shared And fall. of funds back This it ambitions. our set we exactly strategic type envelope investment program stockholder remain value-creating relates the current that we of last had our when to on return aside, return

received Lastly, to acquire we May X. on report currently regulatory so close have to Mint I we, and expect to happy therefore, Ultra approval that am Mobile. And

further the in We are they absolute family. learning focused on from to value. great compelling and are customers while them fuel products really team looking Un-carrier to to segments. a forward their direct-to-consumer also welcoming value in And are I they're to fit offering know because success work rock stars their going We'll the at hyper who

principal rate growth we T-Mobile cash the Financially, growth T-Mobile of that highest profitable again core industry. growth the competitors. again market-leading and consolidated how in margins QX, And in flow double free adjusted EBITDA revenue translates service delivered our showed into was the

up. wrap to So

broadband passing in cash T-Mobile. for our more in quarter builds what's be continuing Our it confidence consistent working. and of delivering model in wireless take while profitability only industry-leading is flows. each revenue, on about I with It's We growth success. service focused remain and share and excited ahead couldn't to

forward our with you we to that like the creation you're again this in where just going topics we're see ways, plan for in them know into opportunities big have how seizing started. ahead. coming, that to a to we're we that deeper Day Markets many you once think want I that years value we company going Capital how and on see to getting I And enormous look the translate And fall, will

Okay. highlights Peter, over to on you talk to our and guidance. update key an about financial our

Peter Osvaldik

in adjusted cash as momentum. flow bottom top with Well, best-in-class thank industry-leading you see, line the continues highlighted right, and to service XXXX and differentiate to both our conversion how Mike All free you, Mike. kicked we off great growth revenue can our already of T-Mobile.

up the in how at we where will postpaid and to as be growth ARPA from our with continue and additions into expect customers, we year the within the we base. let XXXX $XXX,XXX to grow for between both XXXX. So acceleration expect We Starting optimization plan to of now the that in further up me X% growth XXXX, rate execution our a $X.X jump postpaid saw relationships expectations now win strategy and in anticipate total midpoint. to million full of customer updated taking actions continued further and $X.X account million, expand net

as last for There original adds adds because phone quarter, phone net in we we postpaid our slight net growth expected is our coming headwinds in change no with and to anticipate guidance year-over-year expectations QX's strong are in adjusted on all-in postpaid rate QX those related between up plan accretive Core which be basis. and X% to now and is to the business an $XX.X midpoint. $XX.X optimizations, QX year-over-year at EBITDA million the billion, to expected from

delivered service in our last mentioned on of affordable call, the as rate is industry-leading the appears within XXXX in with higher a the at expect point than even that earnings contemplated and And we the revenue connectivity XXXX increased we this time guidance. program and at to accelerate I growth imminent discontinuation in

expect a our $X.X as to continue CapEx our We be industry on $X.X leadership. of to back in billion network between capital integration the XG deliver efficiency cash we and billion and unmatched

any Lastly, Xx year free to the is rate the of merger-related for adjusted flow also flow, next billion. securitization. $XX.X percentage multiple thanks competitor, last and now of than capital range not XX% our growth our payments expect $XX.X to cash over we at million to in margin, the higher adjusted expected from expansion up to net service cash is revenue This an inflows This points efficiency assume material does peers. midpoint which closest represents free and and be costs margin including cash

unique in growth continue our opportunities. we to be our profitable year to and So continue differentiated of closing, expect another we growth XXXX scale further leadership network to extend as

creation margin translate shareholder free to front be years flow cash We with enormous opportunity into cash EBITDA value. of come. adjusted about to the free industry, more adjusted service us couldn't to in and excited highest continue expect have the continued core value that the industry-leading revenue, we in this along unlocking in I flow growth for

Okay.

excellence. moment announce a equally to finance of forward I a our the strong to introduce know her [ Before take at years leadership. we for other roles up Cathy role continuing on I'm changing to for corporate Jud under XX it XX of MoffettNathanson Relations look I'm excited a unbelievable at Cathy, you earnings just SVP time tradition our organization. the in side new of from Altice We Investor our on fabulous T-Mobile's guard Cathy may cycles After Investor among open Relations to in Investor on IR, USA in or Relations. side of sell an the excited as tremendously Many Q&A, broader Yao within ] And want resume. take to

turn begin to with now that, I Q&A. last And to Jud the Jud? back will call his

Jud Henry

[Operator a on please. get right, Operator, questions. to the Thanks, phone. Instructions] Peter. with first let's All We'll your question, start question

Operator

with question comes Rollins The first Citi. Michael from

Michael Rollins

Congrats, role. the Jud, new on

Just of could. if a I questions, couple

us some that and pricing unpack subscriber of Can the T-Mobile to be upgrades, industry having and a with switcher first, you actions churn? secondly, XQ. is navigating update the taking lower those give then you're net competitive performance an could the may how benefit? So approaching back, changes some how the some in mentioned seeing you're about and step seeing how the XQ, you of lower plan you're affect on can on taking pool landscape, And how just you that think you if the how seemingly these actions

G. Sievert

to John our you I and on or -- I'll span comment hand a value to do going a broader question Okay. going means that I long-standing market. a Freier particular really this second industry for announce risen, in, then today. to the don't not will comment one. of in and changes we Costs challenge being the many that over surely, of changes is context. of what years, But have time. strategy kind tell in over it happened give or nothing question, any have of lack No, jump leader first on the the Great. we're plans I'll Well, a why

going But to from we see world change, we're you leadership. there plans. that they'll on add that And rate value in to we're understand anything. costs go customers the customer Peter the just changes the Do I before to understand the once every changes want question first accept one? the that think EBITDA if that. will many that margins more contained announce that tell I are that that We've on and And that a jealously we particularly guard are changes, We've as the the over side around years and side there understood to the on X made and here here you all second older well guidance all the ARPA as of and looks revenue actually there side not in takes. may within with be anything months. where And like outcomes and what what past shared.

Peter Osvaldik

I think it. you got

G. Sievert

are What seeing the that? driving What's upgrades? we up. Jon? on context Competitive with competition, What's on happening Okay.

Jon Freier

Yes, you bet.

So in look happening you our just I'll consistent within whether intensity. space bit high-speed that can and marketplace, differentiated environment have as overall generally Kelly areas, markets overall Internet government or our at little competitively. but smaller these the a be been tell intense in it's continue talk an competitive you few the to about It's And whether growth well. in our moments for competitive be that been what's enterprise a opportunities, we business, and about that rural as

vectors of far, continue have growth a And during to unique be front underpenetrated lot so of we on that context, these success a continue of so overall competitive to have runway in but us. we lot good that

leaning competitive So intense, navigating is in, competitor sometimes sometimes out. competitor is always one are that. is while environment changing. that leaning always We're one Things

it's little more oriented. Sometimes bit a device

very and Sometimes years is navigated might overall comfortable terms rate it to with in years competitive competitive more unfolding. the of out. now be environment continue oriented how how be environment for and But that is playing we've that

to of the natural With demand respect upgrades. meet continue to we upgrades,

time low targeted it's really phone staying something is for for at see, can natural company's upgrade rates, of been that it's record demand matching lengthening not the with you when differentiated history. pleased free surgical the best rate unfolding. both devices how this when sure. the with But for at of you than the performance and customers As our exclusively. We've of and are is some postpaid incredible overall proposition, network the staying staying same kind overall the the very we're worlds X.X% They're low rates in the value upgrade churn experience QX and best we're a more cycle very, offers upgrade have the

G. Sievert

add just I'll last one thing.

and customers of customers prepared T-Mobile's talk in lead more having remarks, my hope, XG. are have during And with devices, those about I experience call. pleased differentiated XG in the I'm I we with so As XX% that, happened. can what's said very a our

to lead. our continue We extend

have And the people And at having -- do it stepwise so experience you all right in even that They your can the people by on just competitive tell is they'll impetus prematurely above that swap fast to we're out, fact benchmark. And phone, enough phones, upgrading or a it which when there. do a isn't continue those to it. fantastic way. you're XG

customers continue think is pace at So that upgrade our we appropriate. the just to

Operator

Hodulik with question next comes The from John UBS.

John Hodulik

the Lumos on first Maybe transaction.

And other at you the you is about just left of to for then Firstly, that's U.S. we something similar the of particular -- today, demand small in being there capacity a about meet how able X.X all expect in country? parts and much fixed the you're mean in part the deals we if look Should that had homes about similar your a Can about million talked any of little Is the constraints passed. in rest I should one wireless the with release as there bit talk And expect you not guys we broadband seeing line network. areas? growth country.

Unknown Executive

What ecosystem execute are your kind you to strategy? on partner of building

G. Sievert

let's to then, go straight Well Callie.

Callie Field

things, in answering think it seeing And growth on line in we're for question are category one all question. QX, benchmark the our top to of think, saw in postpaid in that the be John, is I right a on across category, business interesting that's thanks, the Well, on that our we going I nets. but growth outpacing delivering us. John bit only phone competitor CLV We And the very now strong was might in growth business comment again on also if little that segments. pressure not

the delivered we our the strongest postpaid ever company. And just nets of history in in Enterprise,

in consecutive ratios enterprise. also had We X churn lowest ever our In port for delivered highest positive we were quarters. SMB, our net and

to partnerships for mission-critical a customers. AI And Pad really from So see comp price with pace we're we've with solution-oriented being really delivering with a Dow that the really we graduated push-to-talk. liking business. the of just sale

asked of we're OCS the our And I building Ted, some our and as partnering with serve like OEMs you government as working the to who we're ecosystem comes segment partners largest also working that with know, Ericsson with are customers. Cisco it when Obviously, well industry experts in

focus really their on building us customers out them enterprise allows our to ecosystem to and So to innovate love enabling really scale. that solutions, at

mention key I Solutions in of Advanced a just business. will wins Network the couple

from seamless Atlanta preferred U.S. laptop. a with deploy private partner, shore. solution we're we're us Coast to hybrid about. Guard SIM-based working about XG as on out to as but wireless headquarters, us at And slice strategic have network their with Also not really then connectivity network deploying build a deliver partnership XG also connected solution secure Ericsson, them with provider. a ship working excited first might SASE network our which agreement named only where also a within You to we're the our is Delta, they But with read their a

in of So the we're business of solutions, that the really bringing overall. and momentum about excited we're kinds enterprises the on sort the

G. Sievert

because It's trying happened really face. unfolded problems to the is solutions And meetings from I our like to capabilities built we conversations have emerging way SIMs And would security with in what's sell or front. the hear strategic interesting how Callie most and have mean, some many about out when XG in ago. team it that all this procurement of talk best we're companies different to kinds enterprise, like X were capabilities of take in connectivity enterprises SIM-based X years as us like you is and us, other that that network slicing, strategy are department. pressing suddenly, XG we it's

not back those used giving us that's in price so just to winning And us then it's win. all so advanced to services also smartphones XG that struggle revenues we to hard those and hard have

really this of here. the been we're And some nice we're low But we organizations to love that that mistake, is the great going make it's and leader place compete. face. problems enterprises to And connectivity and today, So prices, value be complicated no evolution. most a solving

Callie Field

agree. Yes. Mike. Totally you, Thank

Jud Henry

Okay. All right.

again. this try get can a we Let's question? Operator,

Operator

UBS. question comes Hodulik John The next from with

John Hodulik

Great. Okay.

a I the of questions transaction. So on Lumos have couple

should side, this wireless over similar how is release, in how guys areas talked where that of not of guys capacity? you wireless? the in second homes years? broadband could seeing that's get of the one-off? a the transaction left demand of And should the about you to X of out being next passing, running seeing other just fixed much of regions? And think deals we the as talking fulfill to that sort million we big today Or you're first you're this are able So expect are fixed still then you X.X all, first. then And in on that about other all, in growth So

G. Sievert

Okay.

remind our All selling normal won't Let's listeners, we predict capacity. where capacity, I suck start our wireless know you strategy excess always usage has this, second I one. phone that fixed if about of with been cell all the along, XG know up

the And said updates several this to don't that, millions millions strategy. now had broadband try X so about to X could saw at said of million of serving leading total we this opportunity. under I've them And scale, to about and we're gives on originally haven't strategy in We opportunity we this serve customers. that we're to million extend any examining thinking working conclusions terms ways we drawn that. customers have We and yet. on any times, us

We in fantastic an economic it's customers a sure make will way to have sure product have to done a make and and it's they in experience. way done have we that love,

the being about relieves strategy we some said, can because what's network fiber the a we'll pressure about able interesting think TAM. to it, on in the That totally extend that's fiber, where be that to XG -- category. And customers become separate naturally fiber will some if obviously, future, XG an you offer then right, to And neighbor opens up customer. and which their for opportunity a is be a up really fiber, graduate

have long So there's then operates, people address Lumos we where excess there. those even of accepted your places capacity. that currently described system. the they have who some their point, haven't put where their applied, in predicted customer, isn't fixed a be And to wireless in TAM address because a and expansion yet places list They them our one of applied wait we we to I

lots opportunity of there. there's So

the we opportunistically And other that's about don't that first look, are interested learn, basically around to smart lead to to open-minded here. We're capital-light, that our think to passed. very first are. great that us homes And to change we relates But we're grow, brand ways not find be. about changes this is of this will we're anything to of strategy is that we to and than done this. any in who wholesale continue a it place this put As to cetera, millions have very And question our expand. we've et space, for going in many, your say

on-balance -- changing capital-efficient something and return lay acquisitions very this that struck model examined. regulatory can't efficient, EQT open-minded. efficient investors strategy, we capital we high and begin long and our started with and said, accelerate. no like sheet this currently have the being know intentions are the And big not all It's wait of and way, term our can to No get capital in if build that. being we're see that a we That we've out track we like for Lumos, get fast, to through bodies this really approved

Operator

next Craig from The question is with MoffatNathanson. Moffett

Craig Moffett

if call. quarter. affect the congratulations. an and question that introduced customers without postpaid you because those But sort thank right just Jud, how talk just ensure if won't able upend especially A plan how ACP you before that's that but perhaps on support And support Can the which congratulations was ACP. credit your quarters expect scratcher do just just what will think expiry XX-some-odd you first, plan you about kind all this you on of whether obligatory have talk business, me well? to business to you of your I it ACP, coming government might about And topic checks, think no impact where business, of for an could offer. head think to you And I Cathy help. wonder you you as with a about she's ACP, that longer just prepaid the a of your your

G. Sievert

talk about with what picture to see financial you in the so go expected out as it ACP. of we then there because can be for could of disentangle and turndown the relates Mike Katz some out to we some misunderstanding financial we'll offers there. start Peter these And the let's Well,

Michael Katz

Thanks, Craig. Yes.

funding talked At of part what expectations First, the with to on is guidance that And going a the important that as shared in it's are to T-Mobile we're point, contextualize question like the your has end. program ACP. reminder, And impact about participated is the first of answer I contemplated our that this ACP Peter expecting earlier. and the how program. to think fully in

in we in any of postpaid in postpaid our form business. not nonexistent participated First products. any across all, It's have

We small amount. have a

prepaid participation via we've inside is we prepaid, wholesale thousand hundred partners said our think of amount portfolio. a the I wholesale inside And couple our vast work that our of of owned with.

for also to not we wholesale those where that partners, are away -- That So own so We in customers just and going with contextualize is. but we wireless in both plans small customers said, that on is being the prepaid communication help our the a amount transition. business, from. to have think participation our working category with walk them are to

need and closely and these whether we're working it's customers like the customers partners Lifeline. alternative, other to or find another programs So alternative, the plans with them other with another

in So deep we're doing that.

of are focused a to partners value are And in and if to wholesale transition. And on inside our like feel come talked like the also opportunity, passion think to our But help a may portfolio that services. position, brands mint, brands to we you value that to we value and and delivering their Metro focus around think at around stranded continue regarding that's Mike lot look these customers soon honestly, T-Mobile, to customers wireless from look, great all our and competitors a find both our about value. be

that's I for hope helpful you're the So question answering.

Peter Osvaldik

bit this a thinking little highlighted just our questions, really around your let think well. other to Craig. And that Yes. I And Mike on maybe add me

about think we us, you, activations front in check. And in it's we can think continue the debt. that of to the February, of we range gave anticipate. -- so that that into you, behind fully And it's the I about we we as front tell credit new more one, outcomes Of range us. it's bad guidance but levels you of than of course, us, healthy of no very but asked No when baked see

to our continue the a actually revenue. be of bad debt leader of total percentage compared We terms in as peers to

always see there. things. happy We're very new trying with we So testing we're what and

number because payments For incremental example, credit prepaid that's an what to know risk a data into have ability we those behave the customers who really without informed and check. data how way and a over certain time And exactly around on-time credit postpaid have an have graduate and for of consumers those are. customers we

beneficial entity, going we we're of the testing bad always the what do. consumers at that to and around risk rates being around, really protection thoughtful be debt that's for why course, sit while for edges So is very we

G. Sievert

And not programs many that's had We've for new. that years.

Craig Moffett

getting might be any though, risk, histories risk there the Is paid bills good who've as customers that therefore, have government, been credit credit ACP essentially ends? by and their higher ACP

Peter Osvaldik

absolutely. Yes,

You're absolutely said, are right, small. that is and sitting amount Metro customers as that's prepaid thoughtful and ACP around. the very of Remember, Mike our Katz in base

in X. et small X very postpaid is a that's base the So even Postpaid absolutely is for us.

help you out can of Connect you there lifeline about think like launch saw or type low-cost other construct. some consumers and And so other get us to ways or and programs really finding products, into probably T-Mobile it's opportunities

T-Mobile. stay So look, connected in sure customers course, we're to be being, thoughtful making around risk of thoughtful very very going category around to profile this critical the while

G. Sievert

Yes.

when else's. are stand up people And brands of offers a time a might out, not those our serve everybody they they are offer, this, and and that them we're brands find that for incredible we new because be that pointed got going at with there it's front them. need Mike customers in will incredible to sure portfolio facing we're right, famous that But are of we've make As just going this for and to value.

Operator

question with And comes Jonathan the New Chaplin Research. next Street from

Jonathan Chaplin

X and to I'll questions them. Jud try to Cathy, I've Congratulations consolidate that's ask. fantastic call, news. Jud's it's last to Since got

on update fiber together can us aggregate. an just So of give Mike, if strategies in I'm collecting that wondering the you you're the sort

So so Lumos far you've the deal. announced pilot

of there from how guys on put I a [ homes incremental about We're do the many to is you last Intrepid are infrastructure partnering with to my of and in? And how together, of here? assets think be the those building putting you And sort you much to? ]. deals with then that -- copper is, sense versus EQT just guys all when new upgrading? about think there cash How of the far many amount that much this about how who have existing seem it say trying is on capitalization total so sort how they're passed focused how debt? do you And comes of we've Tilman, -- can get out sorts those then Scifi specifically, for had all question of infrastructure. How -- deals Lumosel

G. Sievert

sort successful product. you broad and fact a selling we an we've on wildly new The in of strategy well are both great to we investor You small And a believe product than superior XG because virtue too so generate returns than to proven we've about very a the opportunistic. here know-how. our Internet. that wholesale, work, fiber do much already bet. our We know-how complements to purely success with ourselves that partnership that get strategy putting on this by opportunity have which our to XG brand to assets And us, our way disinterested that's the and through got team could Home as we other of T-Mobile far, employed a as strategies started give across won't we're

millions of You distribution, of our our tens our brand, our incredible think team. about leading incredible customers,

are T-Mobile We advantages wouldn't them. customers have very all These to financial use investor that our data front put purely in have. relevant offers us of experience to that or are permission about disinterested insightful their give

could, return we can this have a extract area and say, we that's at some better And look others confidence. than we so when

defensive And that standpoint, so convergence think opportunistic about from from standpoint. not we it a

is stand complements superior a product We where believe out and generate happy return just stand-alone it and that tall and already that there. have customers a convergence. place that "need" can this offers we we think on financial and make We T-Mobile that our leadership a

Beyond excited that, say about like go. could I than We're We what the can't earlier. strategy partnership. I this about more it said where much other very

will a a million is matter. from nice us. and that everything enough standpoint it threshold can course, we to for through things the we to Peter of multistate that do to it an which And the a get this the It fund will of footprint. Maybe equity. about with I one debt equity needs be debt have to it will on formed of big but homes passed, combination capital some structure additional we comment is to as the X.X think be wherewithal give it be decided and like It

Peter Osvaldik

Jon, Yes. all the I And involved again, details can't we give this. in you have because counterparties

XX-XX It will venture. be First, joint a it for unconsolidated is us.

an it's us. equity for method So investment

it will tenant and EQT the million. ratio, infusion there $X.X debt-to-equity great a of kind then partner infrastructure that And about cash there point. million, customers, there having what just entity a this that that would And the needs everybody for overarching in -- an T-Mobile an ability obviously, as to from XX-XX, of anchor actually incremental is based maximum thought up. from cash in of it's as X:X a form Mike think an well. lever process captures to that is about but get be this funding the the given the of EQT. a And that there is And be you be, to So equivalent will the when entity infusion on retail as is said, is given also example, $XXX -- fine

Jonathan Chaplin

One can. quick I Peter, follow-up, if

mentioned you at like of set in capital for sort the this that aside things You beginning XXXX.

sort of capital used reservoir that yet. whole up You of haven't

left you at X those If of or spectrum? is towards more what's this sort directed it there, transactions how Like balance like you between fiber do assets? look

Peter Osvaldik

profile best is. what T-Mobile at the is looking It really for return

And up. have lease those. come may may up, up refusal first could X.X sometimes, We the spectrum come gig we as of you and around then some spectrum they have rights come opportunities know, of not

don't what's normal a times, process have through the we've it We would thought then still we exactly of tumble line have remaining how you should it's we're to that to described very bucket. use of dollar as every sight up, opportunities still balance. going come So right? in and that's But that we how or we should we think allocation many capital about

G. Sievert

changed you those one you, that have the our reasons at that to would to our why that we superior transparent, have was we we we we that. put would you customers confidence use a yet course, assets in transparent opportunities things that's it clear sees And has see the we still nothing is return within envelope and so So know this, could partnerships the range. that, wanted that that why beginning to delight and make that to whether of with I that extract things stockholder an spectrum, were other unusually there wherewithal mean like that return wanted embedded it ambitions. we financial could, out maybe pursue and would the normal know-how able be that -- this honor in And we to

can't approval. really have to to started wait and get we're been one this So get once pleased bring to able fruition, to we

Operator

from Simon with And Morgan Flannery the Stanley. is question next

Simon Flannery

of bit Thanks I wanted welcome, And help, about Great. the luck, margins, for and if to a Peter, could. best little all Jud. I Cathy. talk

of margins X%, nice year-over-year. had nearly You growth basis points XXX up EBITDA

suggested going year. I in to were the think past, the of you the sort cadence ramp through

bit talk So getting just opportunity? little year both longer here. just this term, we're and perhaps trajectory, you Mike, think, started margin just said a I about the

we the So us status passed megahertz you expect you we XXX months give And third coming spectrum about can off should then you auctioning given in spectrum, terms what on could. April in cost of to any just X talk the the the side, update from maybe that DISH deadline, parties? on if of

G. Sievert

I'll and one second. first the the take take You

Peter Osvaldik

actually. exciting tremendously It's Simon. Thanks, story, a Absolutely.

this of the of One in times as successful we've talked a of which about last we've of we rate raised itself. deal of as pendency the the now tremendously synergies, merger QX the is during couple and integration, year, achieved before, run execution reasons,

run rates now create see unlock of that. significant, to had that continue synergy this during there's to And are in that quite EBITDA what so couple fact, we increases those though, similar we a with guide days. And things

outsized growth. that share to turning revenue of continuing continued outsized those service and taking and leveraging taking, we're costs into course, is fact take that outsized the profitable One fixed share

postpaid of back year-over-year of flow like on nature you so going here to efficiency service growth have optimization you lot into thinking can we a margin X.X% the efficiencies And a where revenue obviously have of continue. fixed when So we're Besides base we gives delivered leverage. that, really, this that cost quarter of the of It's we expansion. around extract that of out it's customer that continued a business we kind it can plow acquisition, culture.

so and that ways we we we every bespoke in next particularly we about count flow But to tend it's most whether ability capital hyper CapEx the investments efficiencies profiles what for really create service value tranche our have and play delivering unlocks how single to revenue on flow and flow that expense cash value-creating how a make purchases, see spectrum sure about do and in that. to revenue this that That we dollar service conversion. of sure approach us. whether for I we're that's the importantly, it's And how returns, unique over best time. talked of to making free the continue some cash we're this, free all profile, make it as focused is free think expansion, cash further that And out think we period we we've and do

G. Sievert

of we benchmark a like strategy at cash margins flogging and capital a we don't is are EBITDA would of we're And And there. we'll profile. I But up with our doesn't time. geography a we than is a we talk think, if is flow are. pleased sort we're But when what the you strategy competitors. making cash look bps great doesn't is have, look whole think also at have about a durably though sound when margins, durable. superior confidence we margins say, cash what are some investment it book point it's story flow secret we more and the because we this in capital-efficient margins we progress I'm at our lot XXX story. that be the view miss king more almost, tell growing we Even the our to that have more cash they sauce think I But inclusive hope think therefore, a standpoint, from going fact we're that durably

usage you I the past we all, of business I into mean be Jonathan. But plan. didn't ago with think we've that auction Well, XXX. first know put this our that talking that planning we the I conservative our that from around XXX. will spectrum proceeds they remind any reserve what our into network just pretty of question relates as We And in plan, fund. capacity financial told few by it Peter, people that minutes what about include to be did so about how to chosen would Second to in also plan money were has going found the and secondly, not a is

with And to so kind spectrum begun. which out of what either here found use. keep we auction, no matter way happens has to figure get a that and this capacity get We and

conclude successfully. hand lots nationwide it, interesting action And especially with enhances this also things may can But that a low we technologies. on is have our contiguous do if great this of cash does, profile. spectrum emerging with band, we'll And it

we we update interested have have the what's parties. commenced, that So

believe We meet There's to will reason have nonbinding interest. indications the that of we reserve.

say little too we So to the past soon. more is binding kind of after have Everything we'll a of nonbinding, parts this. it's but get

But planning. way for stay it's again, us, because it whichever shakes So of conservative win tuned. out a our

Operator

from Bank The question is David with Barden of America. next

David Barden

Congrats Jud and Perfect. to Cathy.

results be after a calculation, So trending I first has couple guess the market quarters. question and going kind been down that's of the how comments to impacted would of kind for the of my business the related in about ARPU

consumer unpack here could it reported postpaid obligated watching number ask of number. I so how wondering free to other and the maybe lines business? versus subscriber how I'm contribute of we're balances you the evolve you between kind kind to if things Obviously, was that And and

back now between to X% -- X.X% go basically slightly X.X%. second Lumos XX% prepared about invest XX% under question, the situation, to of if the would maybe, just could, this of to you're And and XXXX, around today, have Mike, and you're if you basically between to that, you billion I America. $X.XX got own And of households in that saying

in worth the damage the spend grand the money it is why brain looks the Like point? organization the realistically to so building the something years is that get what scheme? to small So

G. Sievert

than one. start this And Yes. one, company X.X think and funding, less not million it for Thanks, it we accelerate per growth. for over this goal you to it Look, to I'm the that's less we're that's out, like $X.X we works me to Peter premise of is And branded about I'll for close those from think what T-Mobile about really up the with because other to of in us it's entity $XXX is time, and the passing. half on. because Well, of of way if then make -- being stays sort let it put excited we that capital on passings. second perform question, the that hand the to And the a spread that that to the David. billion getting lot first sure and all enabling I so passings the way and

the customer nationwide signaled get constructs to this like to But an margins. our strategy. augmentations And to open I multimillion a already to we're strategy able way broadband And do that. smart is be is to around this

it, add to more for ends. too. than X.X in is it'll this growth this we're engine could probably maybe end, certainly future, million isn't the that a This and into obligated so continue where up And not the

in So complementing wholesale think very embedded our and into the we already that's it it's about that on how construct us pivots a scaled assets better entity I are go this efficiencies a based appealing Lumos would about I to go-to-market product the to love a return complementary of And strategy. we model. getting And the market. makes and as for think

So helps. hopefully, that

you question it then all first old versus unpack and age that stuff? bit the and business free lines answer once little could ARPU, your vis-a-vis of question again, To consumer a maybe on

Peter Osvaldik

from ARPA, expand that both just we And and year. them, But probably saying those second trickles as half well down optimization. the Yes, plan we'll land absolutely. accounts, And unfold we've that ARPU guide Dave, primarily drive on been respect them, in an into with well. focus updated more ARPA, as as gave as the see continued of long freight that to is our

more expecting the as a say metric. mix-driven probably maybe half we're I'd you second say, up, is X.X%, year. again, But to be this of much, year, ARPU weighted So it very say, the to

there's both goodness now versus ARPA don't you expect terms go space heavily and account where creation space and in the after we great accretion that but consumer much so as us ARPA, accounts And just to are of separately business, would disclose and Kelly strong. government value was talking enterprise lower. But really and ARPUs naturally, the about, CLVs is and enterprise and

segmented see in in XX-plus the with in you offers So space segment the success -- like consumer consumer segment. in even the military

you and we're willing lower those each reasons again, customers to have ARPUs do CLVs of because types great Once in own for with differential their segment.

ARPU. So increase we're expect going probably strategy. to continue we about now this pursue again, X.X% in But to

understand some that's Now this happening I question, stuff the in industry. line age there's whole old because

first do don't free we lines. know, you As

Now number greater to in accounts in terms encourages of because higher of our long generate sticky, be the of lifetime plan had lines more rate we've get number a ARPA construct lines and constructs value. higher our more that

there's no sequential at from But there change really a year-over-year been all trajectory perspective.

QX than less very contributed much this it rate me fact, last don't did do again, we free But that is And it lines. In would QX. say to a I construct. first plan

year-over-year happened our of any you to in -- not to add industry. that's have what relative of it's And kind so a performance really contributor sort the of net see terms

Operator

comes question with Fargo. Luebchow from next the Wells And Eric

Eric Luebchow

Great.

gigahertz your of part a FWA provide to how DoD for kind color large is offload Or between to would there to X to market? mobile be capacity network building addressable subs could network provide target further fiber-to-the-home strategy AWS? progress refarming a X.X any anything on future a positioning put as additional sequencing just your today, to color areas you're underpenetrated goal helpful. could Just opportunities mid-band is wireless to the out at in the your high advantage, C-band, be And in spectrum? fixed how you where level, about maybe particularly might you or on follow-up would as in it to traditional maintain existing higher -- working made look either you at you to be spectrum peers have work spectrum, on talk the potential the Just an expand capital then you're Any option? alternative secondly,

G. Sievert

Sounds good.

network. mean, the I Let's I am happening one team. is what Ulf start with pleased with really and second with about

continue actually extend We to our lead.

favorite average look all and the all If competitive customers you look of of are our nationwide, the our all at having, double the that don't are benchmarks. but actually look at ahead pulling and we're customers just denominator, somebody's speeds nationwide experience

reasons for looking the customers so that just reaching many many the what's XG, and experience. that XXX looking a can it's and how that availability XG, for places with but layer in of color is on is so Maybe of results give And Auction more a all to the it's people and so XG the full we're been -- underneath not more at in one this you that which us connected of. little talk unfolding, deploying keeps cake, fantastic technologies about advanced that

Ulf Ewaldsson

mentioned yes, Mike. excited the And you, C-band. thank and we're very about how you network And keeps advancing. Well, it

ahead. we the in then and So as also C-band we they narrowed between But speeds, downlink we still where it, another we us there. that have a again. some gap quarter the said, see it are median areas that And little of out our though noticed put you bit, and the launched way launched even overall do are competitors gaining

reason constructed And main for the unique that network. the way and the is us we've doing really built

the only towards XG. are in completely one country dedicated who X We has the and

And us we in stand-alone now, XXX. have we together the have. network. gives We advantage footprint that with the and deployment we that And have X,XXX have X.X, big larger the that

our XG. we fact, capable XX% now sites of of have In

We are and working have carrier... our sites traffic-wise, of working about on all stand-alone with XX% that technology these tri-band traffic with

G. Sievert

that about one. more talk Let's

XX% attaching connection reliability the how does the all XG. site time, affect the connection? X of so of are -- people our Somebody quality that with bands and XG of to And the a of the

Ulf Ewaldsson

so much that, because we is have, very even an this also more remarkable Well, out stat. of and

just creates you're experience. consistent a no mid-band, There there LTE. an on that traffic the when means of is more It is toggling XX% no much have toggling. between which We

entire staying now band in mid-band. the and XG In fact, targeting you're low between

So toggling. another factor of no

The for other one have unique this and is a is that we thing T-Mobile. grid, a

grid a is from a on that have the experience. based beginning We mid-band

as between consistent competitors get opposed grid and we higher more low so -- to is very -- C-band of therefore higher a than on our So X.X. a less band a the sort when X.X, our deploy we interrupted, C-band. experience some and band a who has towers consistent of creates That and not experience. clear

G. Sievert

low be is And our why might year in a high-quality the bands That's XG, the benefit cetera. things of of the the competitors the you be really condition you're experiencing net we mid-band, is those differentiated are advanced seeing effect X we further. a right, variable, everybody of those because grid rollout edge of our on aggregation the uplink lot bands we're link carrier our get cell in XG where spectrum a like focused And that are cetera, time, time. et in the and with reaches The giving somebody of of tighter techniques downlink XG consistent techniques terms quite advanced more the that XX% with signal the all et is these all use experience. time, on and your X but all so of band, strength, might a

Ulf Ewaldsson

Ookla were it's OpenSignal by right, very network came experience. And overall We the another I we recognized having leader. quarter That's reliable in recognized. measurements at saw mean the we also most in where Mike. as the

it in mentioned population So us our auction we network. Over then I XX% were our more bit to of you It And quickly even. shoot a and think by medium those million, are lit we XXX remarkable deployed. weeks speeds get XG to facts, able XX up a took up about about Eric. X our how all entire or linked also little

So very quickly really spectrum result can and our a shows we fast. that and very deploy good

G. Sievert

there this I chat thank fireside been saying the sure is and just up out of X on catching kind over. and misnomer make there are our all -- party years and data, our in but Well, you rhetoric. the remain the I've a we network. party it's you did And -- for because radically can And ahead is XG, of And years, to see everybody having that in the it is want for about customers experience. differentiated not joining this

about that. So glad you really asked

target. And fiber Now and there where -- we about that rolling intend can't plan on much not we another help you out we're was a have question, because though, to Look, I don't happy of beginning broadband. our the We're big into a this of is about this initiative we to that energy really it go it. put initiatives and wave intend how here. augments

-- I but look, a regional that sector excess So neighborhood the thing will want because this we in do It's a as we isn't people about. neighborhood sector-by-sector kind talking -- coffee XG that order by where experience have were for that hung give just competitive Internet. of remind really gets to home assessment, capacity to to

individual broadband. for if mobile home then then that predicted all households usage soak But capacity, approved isn't to up get

have have wouldn't are expanding Very further XG now. fiber, initiative actually to we're right But those And be about TAM if we where now roll to focused those it. this the on be added. and report out to neighborhoods nothing potentially. neighborhoods the neighbors really so door out can otherwise that's we added happy some who And things then of these

Jud Henry

that popcorn sorry, That one. I'm my didn't was great. bring for I

Operator

Paribas. from next the Sam is McHugh BNP question with And

Samuel McHugh

with, I year have you you color this any of Just notifications X, impact rest of think in about we on forward? what start I year? products the address. then guess, adds you can FWA secondly, kind on in in wholesale kind we people new suggesting on have, us the to on how more might reports think broadly, year penetration think the through that I should the selling seen potential of fiber kind the move home any going that you're on levels can the you give existing Do And of about think FWA, of so will to begin agreement cadence And the who seeing JV. net X,

G. Sievert

Thank you. to go for we'll Mike And questions. both

Michael Katz

Yes.

fiber But markets those T-Mobile we've So think launched haven't when wholesale has question. existing for of Remember, brand been other to how relative year. advantage first, that these that that even assets heard we about a and and give you the us talking new Mike is a us get But would inside the are the we're spread on investors, lot to wholesale play pace that we're in about XX what is see that starting around markets a year what scale, XX% Remember, seeing these out parts exactly at those of country. in markets. markets. over the in we're small first

with really there. we're penetration that pleased So we're seeing the

FWA and And week, at customers obviously X your context is and home little question, let moving launched broadband millions over huge a we And bit look inside of an and at technology to our important couple we us most additional well me of other sit this on which tons of think Now into million just in earlier needs. a we talked the new their what from house. we're this us of gives hearing I about couple a milestone products. as business insight of in specifically, for the us I've those. as Mike from in to expand give that now home this to with last calls mentioned us. homes give products the customers services think And quarter, opportunity, center opportunities the of of

week, CPE. ability our and to integrates add addition HSI CPE we that to gives in that this package. and Home, regular into They called Whole mesh the expand customers can in router a our -- launched provide we which earlier So program that the

give footprint their they themselves inside much So larger home. WiFi can a

that additional devices all your attach some for also support peripheral We network. the include to

you need as laptop we'll or printer you've on, if that this program. a of So part a offer got that support

we Away offered not that secondly, like a one things product It of And those because or new life plans use really because a only that. we've customers RV they're to we're called ]. about from for And their use their power. in then I'm on customers cases while as or we move along created in of their that camping. this And boat is we couple want your a this into [ running to specifically RV. anything just one requires or is new see wire excited And power, this a program the that customers heard their this house allow move requires

RV on to RVs I'm we Camping with they're to World. really them, going combination a thing excited programs is customers be integrate about retailer inside the that World, camping these if HSI other is to and that in and our partnering The Away us partnership and with struck Camping with with in In familiar sell the routers country, sell. they to their you're not largest

G. Sievert

orders fiber mike.katz Away it's send can for question, these remember, -- way, new our at one very you rates the your penetration what seeing asked about you all product wholesale with -- projects. is because we're are early greenfield the last which And by

And year we're that trending at penetration to XX%. industry way so sign good benchmarks. above small seeing the a that. rates partners to rates far, were than were after penetration so much were a higher That's That's these are terminal your wholesale X starting out -- good on so our partnerships scale, struck. But

the so was we're far, our to do these going grow. news and small-scale of positive, confidence small-scale So anyway, adding, to to But that's range everything pilots so very course, from it's like seeing wholesale in today. far

covers Sam. So your question, that

Samuel McHugh

FWA. on Just the cadence

G. Sievert

parts Let's tell what about. time one me that more

Samuel McHugh

net tea seen terms from of obviously add of kind others and rest in think about some through then And We've kind we the year. how the should of going forward? development moves growth of

G. Sievert

XXX,XXX happened. delivered it. we as that past. sunsetting We But don't made this promotions that's more on the our XXX,XXX when around the seen would thing longer We we've of XXX,XXX. one instead did indicated be what like guide changes And in the quarter do we we

range. that have million rest customers the the the we've guided haven't that on in We but to XXXX of by goal said well year, of always we're track million on we the X X anticipated being end to

XXX-and-some quarter prepared I And what's than thousand. XXX,XXX this additions net XXX,XXX year's and percentage my actually interesting broadband represented, adds of said a net is that in higher as total last remarks,

number in And net means there more competitive others that adds than so the right in a the more than space. very of half, all we're combined with sticking

really at And summarized. . kinds services base promotion not this is pricing time, appreciate, we're where that's of important, so customer with happy to it sunsets, same the value-added the but the through we're Mike also or just of because through value that start and seeing just

Jud Henry

one in question please. Operator, let's squeeze

Operator

comes with that Venkateshwar And question Barclays. Kannan from

Kannan Venkateshwar

bit Congratulations, to I'm more. Jud more and along on a Cathy netco broadband. prior on trying once response maybe Mike, little your

one to scale a have you market fiber. you're of the little hedging be operators in wireless. on through comments already now You this broadband your and in bit But seem fixed biggest

ambitions or might of term. here the have scale long that terms In kind you the of

ultimate where goes? how of see you terms its to business talk you out Or option little it terms could as this of in vision is to scale a So bit there in the behind this as at you you evolving longer-term the viewing a maybe ambitions here the see about this a company what point want market mix? cheap and are test a whole

G. Sievert

be -- I mentioned this be and think do our Capital Markets say little I on plan can lay one how this to out but intend interest element multiyear a fall will to want will also that Day fundamentally I space have at an them And people are. this about who of that unsatisfying, we it be no in view couple Yes, Even more we a include view. element says that of long-term an view would that will things. I And patient include a changing because opportunistic. we that we a know

think mobile lot that generating business that's in And of mobile-first life. of that's superior piece industry this program we're a superior successful this highly embarked flow in cash a we our strategy. sense of upon shareholder our a because makes are We return returns

have it all this we that some on our it for on you'll have us opportunistic when out, of a in a because with confidence And hopefully, patient. We're to our I be. we're for see like kind sign even going to so strategy. as core going core to premature we be strategy out business. our expect lay So that part but to be area of confidence -- where of patience detailed our going we're And it's be in We're to there going we be much patient I said on look, lay element call. smart. because to to the be us reasons you this will

Jud Henry

time us Investor with and an Well, day. It's joining that's privilege departments. great been absolute definitely to you or a appreciate we questions, Relations you. any if that, all Relations out reach have And everyone today. with additional Media And please working the have we questions, the either have for

G. Sievert

Thanks, everybody.

Operator

First Earnings Ladies and gentlemen, Thank this concludes Quarter you participation. for T-Mobile the Call. your

You a pleasant may disconnect, day. and now have

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