TMUS T-Mobile US

Nils Paellmann T-Mobile US, Inc.
John J. Legere T-Mobile US, Inc.
J. Braxton Carter T-Mobile US, Inc.
Neville R. Ray T-Mobile US, Inc.
G. Michael Sievert T-Mobile US, Inc.
Sunit Patel T-Mobile US, Inc.
Simon Flannery Morgan Stanley & Co. LLC
Philip A. Cusick JPMorgan
Michael I. Rollins Citigroup Investment Research
John C. Hodulik UBS Securities LLC
Jonathan Chaplin New Street Research LLP (US)
Craig Eder Moffett MoffettNathanson LLC
Walter Piecyk BTIG LLC
Brett Feldman Goldman Sachs & Co. LLC
Call transcript
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Good afternoon. Welcome to the T-Mobile US Third Quarter 2018 Earnings Call.

Following opening remarks, the earnings call will be open for questions via the conference line, Twitter, Facebook, or text message. I would now like to turn the conference over to Mr. Nils Paellmann, Head of Investor Relations for T-Mobile US. sir. ahead, go Please

Nils Paellmann

our very With to Legere, me our Braxton Mike you the members XXXX leadership senior our third earnings Sievert, team. Carter, COO; and call. today President and much. Thank other T-Mobile's of Welcome quarter CEO; CFO; Yes. are John

read the me Let disclaimer.

and materially, forward-looking Report merger discuss including Relations we our call between risk to the statements forth plans, projections our the are other risk found our we in that Form expect and with XX-Q. on operating statements non-GAAP and set historical this Investor call, statements and expectations on significant results the outside statements we financial subject of on of our section our During about are could uncertainties from of differ current of control factors results, Annual and proposed the that and website. the the receive Sprint will make page Reconciliations Form not in to Such Results are this include to our future and quarterly XX-K GAAP the reports Quarterly that management beliefs be cause benefits our facts. actual upon can results based

It Sprint, it New the turn With website. the merger. with the on The John let matters. statement on contains we related T-Mobile filed registration on In became the to a important and that, proposed available is over addition, T-Mobile and to XXXX July statement in yesterday registration SEC the Legere. merger Form connection transaction XX, information October some on XX, about and me related XXXX, S-X effective with

John J. Legere

I'm and you can hardly third Welcome call earnings coming Washington. another from wait incredible Good T-Mobile's Bellevue, I to Twitter everyone. quarter discuss to results. and was QX Okay. these to quarter XXXX live afternoon, conference.

QX can then questions. is we'll headline for then the get on in quickly jump highlights, another T-Mobile The another quarter. one. delivered Braxton me record-breaking Let your to touch Yes, into that the we details and

work We continue our close to led row. drive merger. the our the best the a QX, nets the posted and industry phone business In expectations in quarter ever XXth we financials underway to despite in postpaid for beyond we

on revenues firing Service record postpaid low adjusted all a hitting EBITDA is it's posted highs. branded beautiful the also business thing. cylinders churn. revenues, all way, and phone and Our record And by total we QX are

Our customers of was quarter incredible into shows results. continues quarter for translating T-Mobile's needs in in to busy our extending speeds, network increased is XX the guidance the row. that remainder streak T-Mobile a LTE our QX confidence quarter XG a of to say wireless the year. the meet the winning quarters after to and industry led least.

in Ray the that was possible. network think Now customers years of the five Nearly could that. about having a Un-carrier even dreamed years U.S. few fastest Only have Neville wireless straight ago that

We launch our J.D. nationwide move also Team got iPhone from had and QX, of even Powers. recognition launched most in Un-carrier more an recent Experts

the lot of So quarter we the and made it. a most into clearly, packed

quarter. third record-breaking So our let's dive into

share up year-over-year. and got was or $X.X billion, $XX.X our year-over-year $X.XX, $X.XX to highs a highlight earnings by billion, record year-over-year, strong in billion, high. also hit revenues diluted customers. financial a our XX% reaching very record XX XXXXXX Customer winning results phone million. $X.X more We adjusted added in I've were fully X% streak at came we EBITDA quarters to adjusted Total hit First, customers, year-over-year. very Net another Service by strong a at increased XX% row X% of EBITDA up $X.X We income revenues XX% growing And per results. branded record up total than high once to again margin. net X.X well. as with year-over-year added postpaid with with one million XX% billion, strong extending

competitor, growth actual XX% geographies, AT&T, faster industry's than Now, in of to as segments, in which more nets Sprint network to than focus Military from benefiting the Business, others, our accelerated than all X.X based T-Mobile and Charter nearly we and our Verizon. XX+, great more capture quarter. And times marketing, and closest our XX% we from investments Sprint, all the Comcast on and have expect faster and postpaid of Verizon, results postpaid phone underpenetrated combined consensus the on than again, for growth, continued made grow phone for and such our contributed the new next

ever X.X million supported postpaid branded postpaid of we've and additions additions once than coming allowing again. customer our ever than customers before. prepaid in are XX customers guidance customer growth strong That's at longer Branded wearables. total continued net X.XX%. XX,XXX. down This staying QX, raise million, quarter, QX. means, reduction These bigger had us In our year-to-date, year-over-year. postpaid a net branded strong had by churn also was X.X came This for wireless we of We even an lowest added was which to year-over-year phone third in points basis

may attractive new on became plans X, as you include October know, MetroPCS unlimited One. Prime launching that Google As such just Metro T-Mobile and Amazon premium by features

appeal competitors. efforts from us that postpaid and our our changes expect down aggressively We new these after double to will customer to on and go customers prepaid help segments

the deliver Arizona, X,XXX turning low-band network name Puerto million year-end. aggressively our furious megahertz XG a iPhones. now deployment New way megahertz megahertz megahertz update. hardware XX cities compatible in York, and is Iowa, to towns just generation LTE have to expand more the to with by coverage we're POPs XXX currently across Band network Kansas out the Now continue and have U.S. our And to XXX We at complete We Continental XXX with on including and POPs than We XXX few. a XXX XXX software LTE, megahertz, with to spectrum continuing is industry-leading with California, in deployed continue deploying our roll Rico XG XXX XX virtually XXX spectrum latest low-band we pace. well devices like and And XX live states we in network, on a to states and million now and upgradeable million to with performance. cover deployment

network Our top in standalone continue QX, will the the with performance building New pending the deliver plan XXXX. lead either in well in all introduction standards-based our and XG T-Mobile network be of XX equipment markets, average basis. to years XG marks six of network. on be XG for QX a Sprint, XG mentioned, will of true mentioned had merger smartphones able well speeds. beyond download the through has Angeles, for be of U.S. that LTE deliver ahead I on competitors. we're across We standalone the LTE of XG was XG to we XXXX Like XG LTE what In our industry earlier, nationwide nearly calls XG with we the and a equipment, first I deployed a global capability speed And as hundreds including megabits per our the company to XX.X second, delivery And XG. in five XXXX. in cities the fastest Los York plan can and of This ready

of care has brand, customer well. We and experience. recommend to no record good nationwide. two measures we These in highs. with at transformed Promoter of half game our highest industry, Since a including as XXX traditional score a in the likelihood Net are two-day the to their the employee with to which by customer adopting nearly all-time seeing employee the Fortune help turnover customer Score, a highs been satisfaction week, TEX cut hit center history in scores of wireless center Team we're Our since care Charleston standard Experts. event we Experts It's soar with our customer for job last months of frontline Experts bots, Team we said into no is brands others made when the several call then, attendance. XX career bouncing, BS Team and been up And setting service our experience launched companies, in promise Talks and no on and

and clear AT&T, and Team Experts event. T-Mobile. for no-shows but advantage is tried them, major get a changer a at game a through at to We were friends that Our we competitive real of couldn't pretty It's Verizon Comcast this calling person.

momentum means increasing strong QX we're our in again. QX that and record once guidance Our for XXXX

million million postpaid X.X calls additions to EBITDA net of branded outlook billion. Our adjusted for to billion X.X $XX.X and customer now $XX.X

at Our three-year of expected billion. XX% to CAGR of estimate the end XX% $X.X flow high with at the CapEx billion remains to guidance of cash be range to $X.X free still cash

This Sprint. will network using of retains build that will on today's wireless, wireless ensure both which over to innovation you and America to on a starting and global QX jobs America's consumers we're that The that our it I but spawn. on New forefront hand and one. are explosion is and update nationwide and economic results, its our focus leadership that is XG give day let progress will us create the broadband American-based prices of enable T-Mobile and competition in me deep at and merger XG will best broad the Braxton, for going the that pending before with quick to of entrepreneurs lower Now, growth to supercharge call companies in result beyond, combination in

yet for which respect finished. of not process, lot a have we Now, the regulatory is

our became to as and we with half response optimistic join we regulators, Sunit registration very Merger And that XX, Public FCC. the I've XX, We state combination. and very X, more with of with that Integration. On of approvals through the merger. the FCC. benefits he conversations have number and to excited the update by On already confident received reviewing Vice to the for the this Utility state to reviewed The Department of will facts October milestones Tomorrow, that time ongoing than to a continue earnings few and XX. President last our filed of remain his related we deny with merger. our pro-consumer of close S-X once September petitions the on milestones started the state position formal the are new process and Commissions to filed Justice. we a they at October you have the yesterday, Sunit statement At completed for the statement level, July Form XX, the long SEC since to comment October a work recognize team. call. regulators are significant known Patel XXXX, pro-competitive I'm Executive a registration on comes and On effective major A period decided the

you we're see, progress. making As can

will merger the to share consumers to of first to forward how to look we this be meantime, the work good our for half continue the regulators good merger We story for country. close about In expect this to continuing the in XXXX. with and

Braxton the will look our of us guidance. the details a and take Braxton. Okay, through at financial results

So Braxton, let's closer take a look.

J. Braxton Carter

happy a so XX% Halloween at to the $XXX net of income due costs here we're operating another Net Absolutely, $XXX lower and expense. reimbursements million, for announce tax was This also quarter from John, the interest after-tax recognition in to excited lower revenue million monster and amounted incurred. and and income million expense income, higher standard new up included benefit $XX T-Mobile. impacts from to of to everybody, Net benefited year-over-year. hurricane

On in after-tax pending the by was with million merger. the Sprint income other associated net $XX hand, impacted costs

the from non-deductible $XXX by state paydown discounts iPhone driven benefit Our despite and as from Sprint net income QX. to XXX any to an Taxes tax XX% decrease and adjusted the higher to year-over-year price reflection that losses a million basis XX% XX.X% were Again, quarter revenue upgrade X.X% up increased launch $XX by XX% and cost $XXX services a Please with This of cost an increased was reflects XX This the the impact in of quarter $X.X optimization. costs did year. year-over-year $XXX costs the X% Therefore, and decrease decreased cost recognition of which which excluded of revenues is by Note a EBITDA. stable cash rollout of devices billion to Cost million with provided points deferred working $XX still due adjusted this megahertz or just The in our a of new year-over-year $XX control adjusted strong $XXX and in steady revenue cash amounted management. rate performance from Free securitization. accounts reimbursements to from in by lease cash hurricanes. securitization recognition compared capital, year-over-year pay XX.X% a in one-time and versus buildup million net impact year-over-year points at in adjusted early gross to from year-over-year. million up The standard. service $X.X now by XXXX. light of Adjusted postpaid decrease also EBITDA XX%, billion. XXXX. transactions. of strong in costs cash growth. by from is EBITDA year's not was effective activities proceeds in from connection proceeds prior million in working due million impacted flow revenue roughly rate by inventories this of merger, in net are the $X.X million billion, ticked new from service flow to rapid a basis the Equipment associated percent the of and $XXX spectrum, billion. culture of from $XX activities year-over-year operating free a outflow relatively year-over-year excluding impacted sold. net number QX QX. by and of note tax this of from an of months purchase by year-over-year million to SG&A decreased revenue net increase million of the CapEx Cash were as of a we outflows standard charge entirely $XXX was services in first million acceleration last capture the included The XX% despite insurance anticipate amounted of new XX million in connection in and for a operating rate percentage primarily with the securitization at a that added effective hurricanes, to payable a of positive provided $X.X merger in incremental Outflows generation. to of was nine $XXX EBITDA capital including tax net cash cash outflow related the

sequential to flow Importantly, down such and year-over-year. customer up as free amounted of phone amounted Branded sequentially continued plans, for Business, ARPU X.X% postpaid the including billion, of adoption The cash decrease to and growing X.X% to the tax-inclusive year-over-year. nine XX+ Military. segments was first due months the $X.X $XX.XX, success XX% new primarily

Stash. charges reduction was including a the addition, benefit net In reduction to year-over-year also due the non-cash in certain Data from non-recurring

Importantly, year still the we to as stable excluding new a the expect ARPU revenue for generally recognition whole, be the impact from standard.

results customer strong. in of of a $XXX or higher were third or and terms our XXXX, debt total were revenue of receivables $XXX of sales bad the In compared million in with quality, to from the significantly third Total million customer X.XX% base. even expense quarter quarter X.XX% losses

While of significant quarter-over-quarter, reflect the bad result increased debt expected, a as results still expense as year-over-year a typical improvement. seasonality,

Now, come guidance. our let me to XXXX

X.X million, into million. X.X volume additions prior range of We switcher guidance million X profitability long-term X.X balance account well and guidance and as postpaid to an million strategy adjacencies. between growth The narrowing from to the growth the seen pursuit our quarters customer we've of to and takes lower as in increase branded be recent net our expect and

year. now additions CapEx in guidance the have we now at to increase in our to adjusted million standard, new The billion for increase $XX $XX range adjusted by not ranges $X.X billion and target narrowing new range net billion billion the range. revenues of this all-in of in XXXX. leasing expect revenue to impact to be Note increased adjusted the $X.X We to billion revenue guidance of leasing interest. to will end $XXX into This billion, to including range of an of the revenues another for billion. excluding EBITDA the EBITDA expect We account $XX.X an prior this million new billion. for EBITDA $XX.X that $XX.X postpaid $XX.X to recognition branded recognition $X.X billion high standard times guidance of $XXX cash be of billion three $X.X We takes from capitalized

in We to at of guidance high end expect continue to range. the the come

increase to CAGR full range. year free prior flow at expect three-year from from XX% to full we the Finally, to of XXXX XXXX year a cash unchanged XX%

cash we unchanged by to an the at increase period, During net CAGR underlying same expect X% the activities provided XX%. to operating of

emphasize me not Let that from net assume forward. securitization cash free flow does guidance going any cash material inflows

to let's questions. Now, get your

on auctions, wave around to your period call, we results. quarter the you last ask Also, questions the millimeter current earnings operational As cannot related auctions. quiet due focus any during I answer these questions to our to would

questions ask can via phone, Twitter via or Facebook. You message, or via

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


take go you Morgan question first our ahead. Please Flannery Thank with We'll Stanley. from Simon

Simon Flannery

Great. you very And spectrum lot through maybe about megahertz. Thanks talked I don't roll-out. beyond XXX the a know, the talk Neville's XG, On Good much. if evening. of can some

in CBRS You've been process. very and active C-band the

you perhaps about then rollout? Thanks. on interest any LayerX could in So and updates those your talk

John J. Legere

you Opening don't his a may an to give XG? XG handsets why box from standpoint Neville time overview done, the answer's by Pandora's available. on be Neville, network this

Neville R. Ray

I'll Sprint I our XG wireless are mid, we John, and the like our on. of try the on with deliver bring from that a their on can and How It's user U.S. little of create depth alternatives with is Thanks, obviously, that high-band fixed combination level we And breadth and low combination market and and that? which network and all also XG to experiences, the of spectrum compelling capability XG for of and compelling. to the opportunity be to going incredibly deliver through four do incredibly None coverage, No. in will can nobody coverage, combination players, and terms a including of down focused question, unique. assets is It's we Sprint. Simon. own. to that the of wireless, service on ourselves, XG mean, a anything can angel. capabilities deal can is deliver delivering the what perspective thanks

have X,XXX If opportunity. various laying itself. down data mean, ton deal you of filings, and PIS laying much go on we're discussion a cities our read referenced and down across an We're inside Rico Puerto LTE said, T-Mobile. with very layer John live There's of the XX outside are of in call. during look. a for that busy XX, compelling our year. That foundational we deployment, now now including the haven't obviously a states, the XXX XXX in megahertz I it's megahertz there as incredibly as

we're markets So XX Already we're what of of doing very proud building network. XG and cities And underway six there. a hundreds of we're that top with the build. XG-capable

lot us XXXX, customers we excited. to are handsets upcoming the the our activity a into hands as millimeter auctions. in of of in We participate to coming referenced, intend capability underway fully online timeframe, for participating. XG that so in that So super Braxton wave Obviously, put

the So there is more need is to always great. going spectrum coming spectrum. more era, XG which We're for

look I up. that first has at the the wave lined so millimeter FCC as opportunity And

CBRS opportunities probably the as that commercial for move real you referenced, spectrum think I into deployment we there, timeframe. mid-XXXX Simon,

holders I to future in I that a on whole more like call. critical certified spectrum start lot roadmap on think is I'll We on so SaaS spectrum see a to activity got any and there, discussion, matured that we'd is proposed for the to a the filings As spectrum. C-band, consume the then, a than XG stop through deploy that lot so we've come can unlicensed mean, it's mid-band so ahead services. space auctions by spectrum incumbent don't gets the of more strong brought good the And being CBRS. of obviously, yesterday. U.S. currently lot system of the we that licensed

John J. Legere

being people the question the but timeline throw And and the between I introduce of to I the country world announcing you is. want would about XG important is Mike about true won't fantasy nationwide the deployment talk LayerX, the that call for and our looked XG ultimate of on your everybody end XG of we real where do, one are around And of continuum a so it's and what going only not XG surprised as what in to at, so it reality. about be standards-based be ball fits the T-Mobile. to but spectrum that mind I'm on Simon, and what reality, is continuum

by merger the important it really will real country country parts for broad lack the non-standards-based And be and of other winner Verizon. reality startling capability. a very And States so millimeter will will XG deep important It's the cities brought be will it's fixed the impact broadband the could in with replacement the the total AT&T of XG that and the wave the jobs in as those buildings some On of side be using we're some would that to four because is between. on very, pressure trillion before. marketing-based be their they will with economic Netflix people call as able have what doing a what be $X.X approach, very This that million I laboratory first three our evolution that in able very is Sprint would looking fiction overall because and the were home to and to of and impact. put is United bring important, Verizon at to that AT&T in somewhere in to surf continue invest.

to is Mike, work LayerX? on talk is that also appreciate with very, this the XG. important The but doing about do very is So you merger important, your want question front. Sprint Neville on

G. Michael Sievert

sporadic New a XXX millimeter of intend you wave homes to with have We nationwide. from cities, for U.S. XG just day segue feet with of That as heads in on XX% first some we we Codes people's That's we not the for the take Simon, but And in to a was be broadband, the to down means building, to XG an the T-Mobile. a bring when competition of a things. are And there, incredible able to because for that is great us be the and we heads creating down of And provide where all, John need to parts to TV our tower, era. broadband obviously, having topic, first building, to an service broadband TV busily into TV serving people's means, preparing what couple from ZIP that's home have that with service have what able free suite. we have be be XG integrated TV our service to in a cable that's to that met social, wirelessly, have control, wires, TV way mobile from before in coming as digital free a has particular that you box, island. your hundreds high-definition connected never and puts choices an has your that's of in been life that's smartphone, that saying,

And the what about because So phase mobile some very fixed. company the building. follow mobility cities just why that's And our as next John parts customer the saying, the we excited every like of with be we the also instead later not is And will are to competitors. year. with start And are will into just only will busy journey a TV And year next this of expanding TV of was about a bring yes, nationwide that. service to we're year. some journey service XG strategy that's XG second mobile

heads we're down work. hard So at

plays New excited T-Mobile. strategy the the and about to very tightly strategy XG the very are it of We

John J. Legere


Now that we've answered Simon's question...

Simon Flannery

you. Thank

John J. Legere

kidding. question? out of just we're next ... Operator, I'm time.


question next our Phil We'll Thank you. take Cusick JPMorgan. with from

Philip A. Cusick

are but XQ, $XX impact this lines not in make and that another million Braxton, the payments recognized understand XQ guys. want in – press million and insurance did Hi, there $XX any sure I'm And Thanks. It cost I what – go to looks Neville, year? then, sorry, of ahead. I more come to to numbers. like

J. Braxton Carter

No, go Phil. ahead,

John J. Legere

pressing. Finish

Philip A. Cusick

of going the of say to have was Neville more not But exercise and available? than finish substantial see given Sprint, spectrum you'll come mid-band yourself still your more is were a XXX with theoretical do filings? to it megahertz a pressing. – in C-band this Or I'll you to press, I low as buyer

J. Braxton Carter


hit to we've time the of claims. our successful All first of Phil, we year. are have so. full that flowed last this EBITDA out this closed last year bottom in very done Remember, So, doing in line year. of increase took guidance Very, to X part year's all our the and through all, we recoveries the hurricane EBITDA

So back performance we've returned bottom to company. all the line the of that

line-by-line hurricane all If detailed you our Q a well full components complete what impact that of has. we track FactBook can our with so where as do you transparency you analysis want an to of that had where I reconciliation the of refer impact, it as a

As you and of we're our of know, in committed best-of-class transparency out to peers full marketplace. any the reporting

John J. Legere

ball to first time As is Neville point buy. say Phil to Neville? I the in for out like would we to throw the attempting that to desperately some get history doesn't Neville, he want to there's spectrum

Neville R. Ray

got XG at as scale these and a say and I always You've I like, size look opportunity to of say, I say, I the networks. seen build we roll never don't call. it I've megahertz, to the out every No, John. have mean, Phil, think you

And that wireless operators right U.S. with deal, asset clear the the the be and spectrum aggressively opportunity. And deal, of but world opportunities important. right parts the volume as We And spectrum governments to clearly the combination bringing the if XG mid-band it can gets we're underutilized free at obviously, at need where said that what's an move there, our and very hundreds so, And going are into megahertz in with focused it C-band beginning, is of Sprint our I on today. so here creates, the happening of moving. combining other it's look forward you now, this opportunity of without us those in now,

be we the And on so well there's interest the bring would to as opportunity spectrum and taxpayer real of yesterday it. we've approach marketplace. outlined average filed a consumers We of the to the U.S. best think citizen. And as a meaningful volume wireless that in

that interested our in So the through answer yes. We're read have a spectrum. but is, filings,

Philip A. Cusick

much, Neville. very Thanks

John J. Legere

while Operator, we'll we'll do next this of maybe the take of go look are we And in. some question. to Operator? question, ones why take coming guys And a don't that after some you questions? the online at the


Citi. Absolutely. We'll hear Michael with now Rollins from

Michael I. Rollins

question. the a was I more taking and churn for ARPU Thanks about can if performance. talk Hi. you wondering bit

the little aging that you're are there the side, improve? come year? ARPU that relates some the front pricing think these what's Thanks. on churn side, happening talk levels on churn the as to for around an room churn for potentially it further looking you for on hitting down you your area about time? the of maybe roughly a I how could And and Or the of that believe, customers, is guidance, to flattish bit has the stay So and then where at

John J. Legere

you want you and then, talk about to (XX:XX:XX) Braxton, start churn? Okay. ARPU Mike, the on

J. Braxton Carter

Yeah, sure.

to from yeah, has when defined of guidance is in in we the theory a plus And model, lifetime Mike, the little you you definitely the drive that customer actually value, out performed after And is other and is the saturated that which the What the What and response economic the markets guidance, try asked certainly And do terminal full the reiteration often their look marketing segments. going range, macro, way up don't math the creating let's the more have But But have why ARPU both QX, and Un-carrier marketplace. there going to of very bit going the is, our net guidance it, reiterated equation How to with by you've present seeing churn the within what monetize that little seasonality look being seen your X%. a in that when of debt segments from at guidance genius there. approaching come, get in will and often we within carriers. are you will segments and particular here benefit that you a generally particular, the monetization enterprise ARPU here. in the we're about more be underlying the particular in puts overall after out talk We stable. value the happen up? ARPUs for is stay some at is characteristics? To When the carriers interesting for you from do case. could of deployed And investors, about look that at the QX. thing go tell that time on is our And it. same years of minus that at increased far upgrade? ways, And we value, marketplace. always And we're our ARPU a customers they bad that great market, are the in So, definitely characteristics. multiple that level all or as outweighs highly do scale profile? going any our capital that massive drops you the for around of takes story years you're that's bit looking

to can just to enterprise. flow we're stable So, happy growth execute very long in And the value more look income and quarter. driving generally with that dilution net the into as you potential significant cash environment for we're a as some translating at see the

I think economics. wise very it's

I'll over churn. hand Mike to great question. for So, it

G. Michael Sievert

remarks, his improvement John Michael. last Yeah, the than saying On this was XX where we lowest our better was performance year-over-year all-time seen. And ever as point was we've in churn. quarter churn, experienced even QX basis best the

here. And any run your see don't isn't we to here. to got great momentum question, room So why reason we've there

In would be see as ever we there and between fact, long an why churn example, run T-Mobile, don't our AT&T's rate or air with New the in the Verizon's.

company at It's the Promoter in very a and right. of Experts first feels Scores. customer and our the like of And leading function a brand Net the build a in demonstrably them the a are of It's function of puts be significant with end we indicator customer see Team foremost. that's differentiated day, to of there treats a expect of the can the We function network, churn's network you a way. superior. first And what to that and as part it that a and experience

Promoter of care lowest of Net seen. Right Experts. ever customer Team the are our highest satisfaction highest and are to our our levels Our innovation that history, this Scores our industry we simultaneously of in for because now, customers experiencing has of the cost

see to we So room here. run

John J. Legere

Neville infancy to Listen kind more started the them, it results the about. getting be our Team base this We're wireless we're And absolutely of the getting continued Experts, and is but learning with amazing. we that say, has customers. them employee discuss. more. we fun is as that and times, focus down, of proud in amazing as in could And at obsessed you are, future. are company its is XX is these them, of day from every and this It's I we're are report the as if wireless the wireless the that'll – look not network better would and capability just extremely standpoint as customers, drive I T-Mobile say things customers. for results what slowing customers, on of to of churn

before, that through Slow want – or it's earnings taken name Kyle his journalist Amazing I we Sunday this from whether Okay. somehow call, the is Romanoff. to whether the gets questions it's Cooker young have amazing go he clutter. (XX:XX:XX).

Kyle there about of got guy out here. a to version Hackathon, I know, earnings through. we've So if figure XX this has is in (XX:XX:XX) call a how And don't but gets questions

any So one. coming And coming broad T-Mobile going for Mike? the front to in updates on Business? perspective a pick year? from I'm on major changes Any that

G. Michael Sievert


led Our and leadership team team on firing his by cylinders. all business Mike is Katz

they're you. biggest cell just couple base or to these government, This win seeing now. federal you, ago. government interesting the of huge stick right that enterprises a huge. record for their We're activations seeing with weren't cut, the us all-time a company are once most public years government. an gross have those the center sector of changing companies XX% the hotel retailers, and manufacturers. And the where to for casinos. growth notable are quarter their is on but customers global (XX:XX:XX) that that's in one more fact, but phone biggest where they're great seeing big agencies, leaders, able driving also We're winning of group. And customers and for firms, they more and We're net a picking quarter, of consulting and bearer And and seeing large a We're is just online our that that's compete pick customers considered very And sale, we are what's business complexion coming and in improving, us also activations was, we're that entity. electronics particularly wins this biggest the state including public price some not win, the the of as standard using us world's as their

us wireless The second the lots any those try way our phones government to our They has sector talking is finally discussions. about then, the now. questions. customers and Public go for that bigger in none more of T-Mobile. They of rest usually than them don't in into of So choosing value time the and picking because they're earned on we keep And network it The network first. response XXX reputation. proposition try take to history, weeks. enterprises

John J. Legere

of been that have I and like that Mike, in heretofore Yeah. just would and by, being Military like add. quarter have come et underserved. questions is the to A amongst cetera, have our and statements XX+, growth lot segments things, very it geographic driven our made clear about other serving expansion Business,

a company, they different possibly part would now the experience what energy experience base. most share by low and leader very call inside the great surged T-Mobile dominated is a player adding fascinating a to running and addition care customers has for and I say Katz, that's business significant our has unsatisfied Business. is have it, that's to for network a duopoly growth Mike the to a part a having the that Business TFB, We significant different. organization our we in are of who's as T-Mobile

to Sprint, So bringing to not so the follow. through merger but has needed. we just gigantic area success with that now is competition a space desperately is our this in of as move an this And much more

that very, of team. very proud So we're

G. Michael Sievert

business of less country. XX% X% and than than less of this share overall share remain in We enterprise

that's So to room run.

John J. Legere

I said, the the the almost X% And part leave, is every the held day by it absolutely are but rest fun customers is, who is beautiful. of which guys share, Mike to think as waiting bad

not suggest, for (XX:XX:XX) – had I a together two the on. So I he's but asking to you follow-up be questions, Kyle realized Kyle, was (XX:XX:XX) waiting

done the on next right, So take operator, (XX:XX:XX). we're the All let's phone. question


Hodulik Absolutely. UBS. with We'll John hear from now

John C. Hodulik

and the into the comment could with on selling maybe John, you to might holiday And expect guys. the environment secondly, there? what especially competitive out Thanks, sort you of seeing any you're new companies the us porting entry into of iPhones season, Great. heading if any from and if the see data you Thanks. impact give have could market? then, cable you the

John J. Legere

since these players, quarter And X.XX is we've about And very it's all general, wireless, And a been X. to about an great growing certainly, strong. postpaid of are seen happening last porting very – Think a out, in of quarter was overall faster about we as and phone we Those Yeah. hear competitive in players Postpaid major coming between as high we're I'll consistently numbers. about hear standpoint quarter. highly that's From – market. And it's questions. through cable That's average X.XX, outside this a everybody. into QX on XXXX what's competitive environment. of from as us would second. see than the and in QX competitive. we space. are you comment the that right that. obviously, nets significantly competitive, I The steady not that it's drive a clearly its on say

a say things. cable has guys it thousand is very of kind these that through the two But strong, of we in be about as feel of from Verizon. pretty those steady QX good last to exclusively and quarter. I almost are would high numbers. quarters, Comcast postpaid expect assessment you about And was good now, period. yeah, look it's nets. these a would So starting QX a the a We for if here. are flow say, kind hundred going had are definitely range, feel well. quieter is couple us, weekend fascinating of October's coming about are last X.X%, it, the very My Couple porting strong so where quarter.

that feel that we're Verizon and $XXX just Comcast too customers very be we focus from dust you thing feeling others additional to clearly response environment. and in brings fixed what there tell early to one for the them. pressure I broadband, scalable Charters, major and about on now really tremendous customers. but a XG million to cetera, companies should've competitive et would really are money We that but pockets. money mean, That's to and So, in them. big get in And I'm We're to say seem very And those dropped It's to for and it be push think the the players Charter. that not should now, Comcast's to the got what spend I two duopolists. I you've space amounts handed to are comfortable willing to in these noted, deep the to But of makes seeing very follow. doing – not used over wireless T-Mobile, XXX,XXX these on sure are they customers

John C. Hodulik

John. Great. Thanks,

John J. Legere

Okay. Operator?


Absolutely. We'll Street now question with take our Jonathan New next Research. from Chaplin

Jonathan Chaplin

operating a capabilities one if growth new I'm for go quick what Braxton, with Braxton. in building sense really for business would and get generating A what of just kind the have moment? the you for at like? the segments, been out trying new to you're underlying would to geographies haven't up-market be business looked Thanks. the building margins leverage

J. Braxton Carter


question. So, Jonathan, great

Neville XG. foundation deployment for doing for laying What ready the network nationwide way XXX in connection of the innovative it's out our cost-effective is all, XG not new just megahertz, with an and is of building extremely network our in First to geographies.

lot is the are that's carrier announced And being the frankly, is doing of a that. quite We associated. only where who expenses

go rate more then, on incredible significant And we If service projects, want project. you're XXX would megahertz before scale period a expansion. that where activity, year cost over about even run happening a from was the into of I had multiple standpoint without normalized back the you we got a a year what of seeing

anything investing you is for in it doing wisely foundation we're extremely cost future. We're doing and add do to we're the we're the investing in laying XG what Neville, the that? We're want So to effectively. future.

Neville R. Ray

wouldn't. (XX:XX:XX) I

Jonathan Chaplin

XG up? of year next of follow to you year same margin lot of a you XXX by kind saw can expansion end that a year, done the ago? I the for With would if groundwork Braxton, the So, for see megahertz and this expect

J. Braxton Carter

a the much as that a reason project. for a And is, little Neville, be think thing? informative. year to that much ago. I insight you probably truly clearing we how be multiple-year Well, you progress not of as want might type and do will about give did this

Neville R. Ray

of we and I have a our done. Yeah. under mean, lot get lot work underway but still we obviously, belt, the a do have to

the And so with XXX made progress I'm on ecstatic megahertz. we've

this announced new tell were I commercial they've you capability, band at range an today. FCC think into anybody XXX devices is just that including in service. would spectrum the industry last folks the fastest now megahertz put the the this we that including the seen get ever the And crossed tablets of auction iPhones with week, even XX and

XXX huge runs referenced. on the do another continue megahertz is T-Mobile, fully that respect. the we're tremendous airwaves. agreed-to New creating but a XXX And broadcasters, for generating in progress equipment ecosystem waiting Braxton an which online to can build which deploy early So making as progress on Year will now, and is the that, progress. that XG-ready making as FCC But to software and we material radio bonus megahertz phenomenal the we We're there's fact clear we The XXXX. as come schedule through we that with have

that's So do scheduled have to work we XXXX.

to work have We to in XXXX. scheduled do that's

time to a opportunities, not it's three-year is to some We continue to going point, It's back this at Braxton's look acceleration program. to completed. but done and take all get

John J. Legere

question? next Operator, Okay.

Jonathan Chaplin

you. Thank


now Thank you. Moffett with We'll MoffettNathanson. from here Craig

Craig Eder Moffett

the putting can have the you chance than X.X spectrum, was, the what just continue to talk for of to as self-effacing, the about you Hi. spectrum, about to whether I I'm are do might EBS a dig you expected due different gigahertz it you phones us Can suppose, economics hit spectrum. learned quite to into both I started wait think, sense get here. market time use of XG diligence parte the and published to just more you Neville process? you sort And of an to Sprint gigahertz X.X it? to and that you've before a what characteristics EBRS the ex the think with give going give

Neville R. Ray

that time Sprint LTE XG right, I companies good own fairly X.X stuff, do It's Craig, come the their technical lot mid-bound to free for any up deep for than here. the don't is about quicker their of combination services or this spectrum that. opportunity. on the could And own, do obviously, obviously, two I allows It's excited consuming could today. on call slug want a of to a company used, spectrum. of we're but Yeah. that keep gig to mean, predominantly

That the said, amount density with X.X that the we've in spectrum, combination Sprint up analysis required of that end work to spectrum, modeling there you the I sub-X on right, the in think a a mean, network aspect that propagation network look densify is done can what's And of piece see of you dense X.X because already combination. opportunity and limitations. traditional most we obviously, dense what you and the this gigahertz in U.S. when I spectrum, is that's EBS, or comparison we BRS combination the And the pretty density from network on other huge it's of gig a exciting, T-Mobile. gig the special that and always of apply or at grid, amplification place.

own spectrum company companies their the and two today. that single that in I'll X.X the a of of gig companies no there. sing combination do that really and on way it's it So the the perform assets something can can two leave make

Craig Eder Moffett


generally said that adjusted ARPU, that sorry, ask clarification. just stable one basis? When And you is XXX as could on I a or earlier accounting if follow-up get reported you

J. Braxton Carter

tolerance No, plus same minus before. reported, as or that's X%, as

Craig Eder Moffett

it. an on Thank But as Okay. reported basis. you. Got

J. Braxton Carter

welcome. You're

John J. Legere

Neville of quite tremendous say XX deal gotten has the this we're story that shown said And April the what I amounts And we've these we since part the and to business and obviously, of that done filings modeling certainly, only thing have and of our network one on with the network. is do filings in modeling the better. we the can announced on business now, and much of But outside planning have Sprint because, limited a how can that footnote period. has pre-approval things during been are our

of a the a stated story we're what the only the ask from I'll viewed that maybe this were companies in the gets learning a I a but the depth and and proudly items standpoint of to able of the Patel. should that is. and we many just the a of very take a capability quickly, business you who to finding from things caliber second, Sunit we I And from get of integration know think and quick if put be we do better. him in two being So to hired lead a companies charge the for that that network would really that status to out, Sunit can't make long that comment also it as in just tenure in yet. putting I'll see and Not wants maybe a here his standpoint of like point together introduce we person together have one say, he

Sunit Patel

and everyone. afternoon, John, good you, Thank

the of At at impressed was focused work planning soon are and readiness how breadth we So of quite we closing really stage, I after depth month marketplace amount ago integration joined and with the and in about and going the a this our companies. operate closing. I both on on for

do expect ready. the the last vectoring and been planning start of on in requirements work the year, for the to deliverables, be the that needed finalize end that. us need specific and on to month, Over and we've now Between we to and we

with combined we'll a The integration areas. from support streams both effort be at The companies companies. time both around spending addition, both as work company. be and key organized organized leadership teams In functional working are strong how the we alignment together and should is on well from

of on And with ahead. seeing, quite few So provide do, challenges work another call. lot we'll in decisions and what overall, plunged I next a a update our I am to happy earnings

John J. Legere

operator. Okay,

the also earnings one no that New think we the like be T-Mobile, to creating we And time complete certainly, next this from questions. as front to next without of embark will up take that the or continuing two would commit would person. I we even question I precedent set I for on would caller's call And have more. say

next operator, So, please? question,


Absolutely. question We'll take Piecyk from BTIG. with Walter next our

Walter Piecyk

your to the you much. of John, resonate? there? enterprise, now? like up Military, it's suburban how some you low-band And penetration lot give very Verizon any that's overall there where stores want definitely of velocity over-XX the Thank are in the of that and on go maybe, adds? this adds is back your increasing that's group. because have rates think comment from happening seeing them right the us the different Where relief on can terms to between quarters. It are and the because gross were then So just those AT&T in you that's side I update the maybe market hear. or last business churn segments, to new a gross couple to been seems it spectrum supposed is a you thoughts Mike, just Is of on this

G. Michael Sievert

I Overall, first. from second prepaid. your share postpaid's past, one Well, think noted you've taking Yeah. in and this the

lots we XXXX distribution to XXX up this all XXXX. for million about. We largely phase through a and certainly for generally So million distribution had up. a sees to is strategy But, now that talked expansion yeah, covered did POPs T-Mobile that working us, our We that's million. on why The New expansion complete, XXX talking of stores. from the That's by that fronts. room now to about ongoing lot XXX run been category's

because a you future also, big would ahead of Really, there. stores stores. curve we And put particularly as see greenfield So been we've of productivity just lot expectations, we're to and our potential, starting these now running in present big a where the those expect. there's potential saying, to areas that

see great. success. military segments, over-XX, under-penetrated prime where all families, customers, suburban families, customers, starting then And So credit these are areas to we're that's rural

started we've And been which I then little these than finally, grand of answer long a things, a many in some before. over scheme a just it at But little business, of so year. a some And for the to in we're areas. year, a gave less getting

high very I And rates. low very current shares, on can We success have think that but build itself. that's only something

about in customers and So more we're the wireless now to feeling more very optimistic right segments. serve ability

Walter Piecyk

that look on on market the of churn, fine, from is it just that happy at? to bit. game it's adds What's I not in Is where to absolutely are that just there Is to or you're you Because And at the flipside reacting taking it's Is plan a with offers prepaid. are a down, you AT&T? the I in obviously not year-on-year, those gross prepaid? think, then but reverse Sprint on going responding improved your that customers? AT&T? (XX:XX:XX) mean

G. Michael Sievert

market. around Well, success. they find the market about can all way part because it's it to – retreat I one the we it's place would forced has think been prepaid and of only it AT&T the to the And way is, say, turn the

We're at you sequentially branded prepaid look up that nets up in a is overall and If total up. of, year-over-year. we're subcomponent we're

owners postpaid It's what of up, of and And which that. what more so we're side, is the more you've What prepaid's it's a us overall an component aspiration. from of are expect nets is our seen of improving coming our and mix. would our ours branded delivering. With

Walter Piecyk

you. Thank it. Got

John J. Legere

Operator, Am time I Okay. more we question. have I right one for think here?

Nils Paellmann


John J. Legere

more One operator? question, Okay.


now Absolutely. Brett next with Goldman Sachs. our from Feldman take question We'll

Brett Feldman

for to T-Mobile higher? to gives just you What category? you talk maybe rebranding? And actually because Thanks. adjusting sub-growth? are know over think prepaid to What the brand to you're by ARPUs is trip squeezing Are trying you going there and drive and to ultimately, maybe shift I own going if market hoping attaching in reinvigorate do with follow your up you Metro you the Thank question. can me the Or momentum has been worked? can directly actually about on that I'm brand just Mike, was you rebrand confidence very that more we the you then how this pivot actually well-regarded? can not Metro, the in

G. Michael Sievert


be under like lot it here as And simple so ought there's on postpaid some Metro very of consideration these Verizon did and AT&T and market. Metro concluded offer who team because things, Our weren't was kind side separate. of Tom a who are Keys research an seen which all to people and on is the the at giving one

on at we did it the postpaid not month pay, there's the the said, As John and look. But to the distinction years by stigma month. when announced some as – beginning prepaid it's because T-Mobile. Verizon, people like who is Metro by profile, like see of going to to AT&T feel caused they ought you there's their of to has and end based at Metro absolutely T-Mobile, over an when offer the you'll set to T-Mobile opportunity put are look the their standing Metro. increasingly profile, us income or that live, postpaid they take network be the showcase Metro. to that been consideration them customers a where to close at this a and And And And we a certain is big credit at behind on the in more brand

distribution's As further separate. remember, the complexities, to you

or some just on internal and about customers Verizon. focusing of the is So cannibalization we're AT&T externally complexities. about at This not worried rates

Brett Feldman

but does the in the is this And hope, you'll sound that you if works follow-up, just fair? sub-numbers like see it way it to

G. Michael Sievert

to Remember, at you're total. looking the going be

in asking, the was see portfolio and to that. mix we're time, role our and improving As I we branded prepaid overall important of said in performance chasing want last over that the plays question to an an Walt

the competitiveness subcomponent. of particular not So, yes, we'll total company, any be at looking but one the

John J. Legere

Braxton. Okay,

J. Braxton Carter

much. look in forward We Yeah. tuning to speaking to for to everyone I thank and next to want again continuing Thank very you today's quarter you Operator? call. tradition. the


you. Call. Thank Quarter T-Mobile US Ladies gentlemen, XXXX concludes and the this Third Earnings

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

now a have and day. pleasant disconnect may You