T-Mobile US (TMUS) 6 May 202020 Q1 Earnings call transcript

Good afternoon. Welcome to the T-Mobile US First Quarter 2020 Earnings Call.

Following opening remarks, the earnings call will be open for questions. [Operator Instructions]

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

CFO; T-Mobile's leadership to today President Carter, members President Sievert, me XXXX as well are our Ray, other our Technology; Braxton as CEO; the Welcome and Quarter Mike First senior Earnings of Neville our team. and Call. With

refer our QX to all referencing standalone are Please any on comments results company. and post-merger note combined Corporation this prior the XXXX merger to that, forward-looking Sprint statements call related to with T-Mobile

During projections are light this merger completed plans, receive future COVID-XX of historical operating we that call, to not will make statements in facts. recently our and financial with and statements other forward-looking Sprint, results the include expect our our benefits our we statements business that about from operations and and

statements in XX-Q Reconciliations of the expectations set differ risks control results Form and beliefs results of quarterly our based our to upon uncertainties actual GAAP discuss management in Relations filed that outside results Such the Investor significant of current, risk our found quarterly factors page subject our the our we including the of cause and are and are could materially, and to be between this non-GAAP report on section today. the website. call forth can on

now me to it turn Let Mike. over

and rooms the maybe everybody call a joining for kitchens to in. and country. Jud, few and our our thanks you coming to earnings across a first live to home lot quarter Well, mostly thanks Welcome from offices living

moment I was, a what our crazy team. think me this let And saying, for by a proud really history start and in just quarter

by history, it closed couple mergers making of unlock immediate the our fighting work of on started years. to months, combination. the for for the after of integration this And telecom one we value two last progress Over we've largest over in

reinvented we how CEO And fast about it all is customers, you pace. with we here the and team business during talk we through company a pandemic serve results, a incredibly completely did leadership established all for We an transitioned pretty to we're new global what our some today. it office, our and at fantastic which all posting while we

a early some to on cover. I our team and out thoughts highlights team guidance got unpack delivering about will QX of already early brag for in and share New fast impacts our roll are on touch lot network. T-Mobile has from QX. wins we'll share in financials Sprint the insights We've and from Neville the network, some Okay. onto of about to X.X that some including gigahertz New his ground Braxton done to spectrum the cover Then COVID-XX, plan and of work of T-Mobile really the the those some York course some and Philadelphia

Amazingly, closing and with you, merger it's opportunity tell ahead. the just been five we're Sprint our fired let weeks about incredibly since up finally me

for While every process anyone a this deal we've hit we rapid running. during longer the moment the took could plan imagined, process of the approval and have of to took way companies for these integration than ground advantage

than As to our the we potentially synergies Sprint from faster of unlock rate And and in even the businesses, we and like network and integration. improvements our we'll than our see planned. opportunity like procurement increased areas scale rationalization potentially to this in even from of likely retail additional move upside see acceleration dig subscribers churn into an combined combination more planned, faster originally opportunities

as now. serve value And environment this I position incredibly the T-Mobile we'll been all to network customers, deliver continues about lot in of unprecedented There's talk we The and say will the particularly it. about to well find ourselves changing that a New landscape economic proposition that can change. even right more

it better not are better between or going said have to network. I'll a say to a before, choose customers I've value today, again it and

With the customers New T-Mobile will both. finally get

our do we into The navigated of company our and has so Before to how nothing has be results, COVID-XX been I team of people heroic. far. responded every of the short highlight, support dive impacts of the way I has and couldn't want this customers And each one to prouder them.

steps customers employees. how safety unfolded while working to continue highlighted become has to us, would simultaneously the in And health stay our took to it's crucial ensure and has lives. connectivity hard as of crisis we front daily our to of our connected, The immediate protect

and all like Through fulfillment. and do to support first And the remotely, things of customers of impacts retail, our We temporary introduced to work employees us virtual transitioning to transition, to and wide-scale scores. including XX,XXX T-Mobile employees continue have makes service customer the deliver record-high we with to translated to one to help this mobile employees care industry-leading take our steps and part stepped Sprint. that store and that different. into utilized has bold were our from U.S.-based frontline satisfaction We up enable capabilities digital COVID-XX big curbside NPS mitigate the our closures

the Right see and usage changes we network that in out in patterns. of gate, would knew increases our demand

megahertz increase roaming to doubling So expanding Sprint we temporarily took and including for XXX immediate capacity capacity, customers. action our

performed excellent has customers. reliability our delivering phenomenally, Our for network

spectrum average crisis, capacity. XXX-megahertz OpenSignal XXX according increased speeds layered actually the fact, during we to after LTE megahertz additional our even download significantly on on this In

communications during appreciate FCC's a Chairman, really and industry to the Connected Keep done Americans also I of crisis. proud supporter and the together the FCC this have We're Pledge, Pai the work the bring entire

fees business As small of to ability late by impacted maintained their a and customers consumer we've pay. our COVID-XX, waived service result regardless for our and of commitment,

the of available phases and our smartphone early as impacts data Additionally, customers, high-speed COVID-XX. the they in lift data additional smartphone support made of the we Connect chose the crisis, mobile to launch T-Mobile of accelerated navigate hotspot to caps

initiatives & Clubs the America, across of is of to a to and dollars schools our doing care workers. number local through country. health proud of frontline support team what communities programs really Feeding to for help this also support donated our Girls We've Boys for I'm from the millions America of

is While not to what's to communities do we'll over, for start and the support employees to as this right customers things our continue reopen. and steps definitely our take necessary pandemic

will retail result impacts very continued near-term impacts additions, and some This our in closed in revenues Stores revenues to And service business. traffic been the reduced short-term. subsequent equipment our customer that obviously temporarily have and that store volumes.

second some continuity, introduced continue likely has also with first quarter help operational performance part the quarter. the our of will overall to which We latter impacted in and the changes business in

the when looking for to starts stands for. likely we post a who and be need value most. It's tougher there in it's to brand our customers environment across industry nation continue will for COVID-XX, are emerge and us customers they we'll the our Un-carrier be better As economic what

AT&T switching squeezing low get be there as things budget will levels factors will and These as there looking the it's to churn who mean monthly from able be today's be to most likely be search will increase constrained. an better keep change, from from in expect value. we the bills Verizon that customers more industry will across And their certainly under I out customers high also carriers in to likely and of help. already are won't a themselves

and pool does well switchers. of keep it intend taker, that way. T-Mobile in know larger We environment proven with the disproportionately an share We're a to I that past from

consolidate there will marketing as we just constrained be T-Mobile geared this and And and are their in prepaid budgets. starts products life. later a summer, our our switching We of for to expect needs, come with postpaid that offers customers particularly the new opportunity to under to this to time brand

Okay. T-Mobile Time for highlights from stand-alone a few QX.

combined led this of we is industry net the phones, time in the growth, in Not which about with driver, sum customer the growth with but industry branded the total Big that's in that Let's a including row combined XX again I'm main XX% rest start the Cable. with of once our of industry, double of additions business approximately quarters counting, leading QX. postpaid industry the where XXX,XXX

And XXX,XXX. losses XXX,XXX, branded net prepaid adds quarter. yielding were the Total XXX,XXX additions for branded total net postpaid net were

customer our X shows in last the of posted XX of of churn bps numbers. low We experience I'm at proud company, and One last versus versus in phone QX quarter. basis is part points X.XX%, down our postpaid which record obsession things branded down up a most this year

investing I'm also of our care really to deliver first place. to in the ability is their customers our these years, the of EBITDA leads growth, difficult well our we proud flow network during simultaneously while back started into if cash said team's leads customer which company revenue leads which right to in growth, we customers and for cycle financial success it the taking employees times. which We've what which and our growth, customers and run results, invest experience, to

benefit continues X% more alike. in Our the financial big billion, next QX to in high QX than consumers formula up results this best and provider. show shareholders the Service $X.X twice that an rate year-over-year, of of all-time hit growth revenues winning

up EBITDA $X.X costs, record $XXX XX% Adjusted also for cash XX% an billion, created despite environment the merger-related up payments million, of Free by all-time hit was excluding high flow, year-over-year year-over-year. COVID-XX.

and T-Mobile at Now Neville COVID-XX, of continue the network about work our his hard let's talk incredible growth team expanding our story, quality New are and the foundation Despite and network. making progress. footprint

putting spectrum, best being on to And us path world's perform. the network. to continues integrate Sprint's our we XG amplified Our network build that's as

a The and our complete, moving cycle was on work the years take able extended the site permitting to lot team ahead about leasing to whole but take of process of approval time. will of to three get advantage

combined mid-band XXX and holdings spectrum T-Mobile megahertz and spectrum controls the XXX Combining of the megahertz. nationwide, Sprint, of T-Mobile New low-band

AT&T is that New triple that nearly mid-band and double and combined low of T-Mobile's nearly of Verizon. spectrum

behind that know wonder no And carriers millimeter what? leapfrog Verizon And and on last to know years we two X,XXX AT&T. over with network depending wave you merger megahertz spectrum than more the capability. millimeter their they strategy. Well, while wave We're too and the fighting are XG scenes. the of the They ready spectrum have spent AT&T it. It's for

up our the already we'll in already X.X-gigahertz City we on spectrum second live XXX per light with tests. Philadelphia And we've fact, live cities and will T-Mobile megabits speeds more as XXXX and peak New And in in In beyond. many went is network there York over well. started be just of other deploying yesterday our

Sprint customers, a roaming expanding well a coverage has we're For XX% as seeing network of as the the big network More and experience to result. are network in weekly we compatible enhanced T-Mobile availability. access increase than delivering base XG Sprint today, T-Mobile significantly to by the on phone improve handsets postpaid as an

spectrum projects, in year. America's about over we out at talk on hard us million heard of first December, past remain we gate. XXX-megahertz launched more early Finally, network the nationwide XG work the right that, you the people all covering on network XXX than Recall

million XXX have today, St. XG just We in turned week Bay this lighting Columbus, the people recently up California covered well. we Area as of up Ohio, XG with and Louis, Detroit,

deliver Braxton, in another our record In delivered for So telecom of as history. of weeks to hit to before to We it just business setting in I rose New across the and driving quarter let say running the mergers hand unprecedented largest changes customers the T-Mobile. our close and one our the first face five over we simultaneously this. occasion ground adversity, the me while

plans. our confident our transaction we and synergy of ever already about ability see We this the feel potential than to opportunities upside for unlock massive to more

mission fired-up we're customers. on workforce of passionate, the drive serving business depends moving and is innovation supercharge and this absolute competition. to one it, singular in rapidly industry Our this success on best focused The being at

and that's amazing stand emerge to positioned they when to right the most. and a from COVID-XX start value customers best we deliver up need brand with look an is great it ahead, a As combined for network T-Mobile

take CFO, to And it's take through guidance. financials and us Braxton the ask time it away. with our now that, to Braxton Carter

potential, hat team is deliver ahead Hey, And thanks more the to T-Mobile country. significant. will synergy unlock lies couldn't my Mike. here proudly for in out massive look opportunity the am And I what for we the in as excited so The I wearing that yes, be New future. wine magenta Washington

in are million income financial million costs up was Let Similarly, X% well was taxes me Note merger-related net million amounted to $X.XX some QX earnings QX, EBITDA. in $X.XX, costs quarter million adjusted of the income get up COVID-XX-related $XX fully related Sprint by impacted $XXX the per why. as details And the before to Sprint into as from $XXX excluded $XXX of diluted to $X.XX the of merger EPS quarter. first and to COVID-XX. combined costs year-over-year. was of that These related X%. by best the share net burdened explain Record

primarily a SG&A increased equipment percentage The investments QX, services to to amounted service as of rollout higher services higher XG. year-over-year by cost network Cost increase billion, rapid XG due in of year-over-year. expenses. XXX-megahertz up by partially XX% of of a XX points EBITDA the the revenues as spectrum lower was our to record offset service continued $X.X transform sales, and revenues Adjusted basis LTE and and we to

a SG&A difficult of by points QX people time. percentage as in this as revenues invested and in XX year-over-year service we increased basis customers our during

Excluding cleaning-related points million commission COVID-XX have XX SG&A of costs, supplemental $XXX and employee basis year-over-year. merger-related of third-party and the costs down million Sprint $XXX would been payroll

CapEx cash provided QX cash operating decreased Free flow included $XXX increased year-over-year cash in increased in payments flow by and for in to merger-related million X%. net Free $XXX cash as costs. XX% by activities million QX, XX%

payments free would been have cash merger-related $XXX these flow million. Excluding

to postpaid Netflix in plans a inclusive was ARPU amounted our as nonrecurring tax increase and a generally which plans. reduction the segments program promotional revenues offering, of success by including new stable and Branded adoption QX, $XX.XX phone charges in rate year-over-year our the growing customer the growth in in certain offset ongoing an in were and activities sequentially of regulatory continued from reduction

flat We was and reintroduced revenue focus year-over-year. per ARPA revenue this also per on QX growing was postpaid relationship. postpaid or Branded the account, is ARPA customer essentially average in quarter, which account we real $XXX.XX as branded total

the COVID-XX. from or of XXXX. our of total quality, In losses by of the in million the results bad impacts in quarter of expense were revenues and X.XX% first total first million X.XX% $XXX receivables compared of impacted in of the quarter to macroeconomic of quarter Total customer debt terms revenues sale $XXX XXXX, was first or

in lifetime credit standard, now flat new excluding have which the However, the QX. credit would adoption been loss upfront, year-over-year debt of losses recognizes expected bad

few We given are may closely debt economic these economic next on current pressure but feel very we well quarters, to backdrop, through bad which watching the bad debt conditions. are prepared the put we manage in

T-Mobile AT&T is $XX issue billion $XX the recently in financing. we investment-grade you closed day XX-year basically book feel raised the hit market, super weeks to subsequent we debt that closed quarter, end and market inside our market, Even been And for to billion an reason that One where being we in when trading. excitement and of first literally the what to well achieved. am When think in notes the we're notes first $XX the the investment-grade we proud confidence I of been it, able we notes. despite the led to prepared have of in about merger the billion. our it invest order trading have in issuance are markets

inception quiet strong In showing reopened with since which our another been syndication market, the crisis. had loan merger from loan the leverage of the effectively addition, recent investors COVID

market our businesses. speed remarkable of us our our that liquidity the go full on team ability in to by the confidence Just support integration and from and gives and Sprint a T-Mobile execution ahead

to uncertainty for So guidance. the time. the impact accounting, at alignment we around let's QX are purchase to providing ongoing policy of get price T-Mobile this COVID-XX, guidance work accounting New XXXX for Due

combined the T-Mobile into QX we for visibility year conditions full and provide to year. expect COVID-XX guidance our have share better quarterly the the call of when earnings hopefully and back New of economic XXXX on half We results the

to in in reflects of to closures billion EBITDA For offset store adds, and lower we be expect including of is range between COVID-XX, expected the partially lower XXX,XXX. postpaid zero impact gross $X.X the churn. and $X.X additions QX. ongoing Adjusted by billion net This QX, customer retail

revenues Our EBITDA billion. of target adjusted billion includes leasing $X.X to $X.X

million the flows. equipment XXXX $XXX net QX In we for year. before into are $XXX including between XXXX to million costs to $X.X of $XXX billion from costs interest property EBITDA substantially the the $X.X expected purchases get and excluded expected and will adjusted be billion impact as capitalized of These but Cash approximately of cash are QX parts and and outer income taxes. million to will are merger-related be ramp

forward to severance-related store These a into rationalization opportunities any as potential are such before build spending network accelerate restructuring, pull amounts incremental of through realization QX, additional expenses. synergy and

are COVID-XX-related of $X.X billion. payments gross $X.X between billion costs be interest not settlement the be taxes. included of $XXX in before payments in billion adjusted range including to and expected million to the expected for by to EBITDA $X operating and merger-related $XXX COVID-XX-related to million costs activities cash provided swaps is includes rate in Net for

COVID-XX-related in including of the the billion flow settlement merger-related expected to $X.X of payments is and cash for in but $X.X interest costs rate $X.X for swaps billion billion. payments Free gross range to excluding be

will and need from to COVID-XX federal what regarding state, steps employees appropriate We best agencies as and to developments take monitor to for do customers. align we evaluate continue government guidelines business our a is to local and with

financial condition XXXX be We the as COVID-XX expect to for liquidity impacted our pandemic operating remainder potentially to and the and well as continue business results by of thereafter. adversely

the continued and bad support protect The include business supply additions, chains. full to equipment COVID-XX is higher debt our sales; impact which revenues to increase customers, potential net first and subject of during and on disruptions Potential to XXXX; difficult and and uncertainty. impacts customer our and predict equipment cost costs the expense; from quarter of cost to may employees lower incurred will is of our

areas. various process of In addition, reevaluating are in we across the spending our operating

uncertainties The guidance related the adversely actions uncertainty QX we the spending the of COVID-XX from impact provided. and impacts also recessional duration our given may to adjust We any to around pandemic. are magnitude taking the significant arising COVID-XX

questions. your to get let's Now

phone ask Twitter. You via via questions or can

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

question Morgan come Simon Instructions] first will And you. our Flannery from Stanley. Thank [Operator with

Hey, so far? for initiatives around give color for now from fixed difficult thanks And in are far, the you finding more circumstances bit Good but wireless need lighting what the give you're things could evening. XXXX you. Neville, you Can so maybe us up. color whatever. Thank have and And Mike, you've very to weeks good all you work taking to the what where integration, much. us then what XG the obviously a the color. expect to are team, to the any Thanks you Sprint little see just been what few where during of areas a on sense a perhaps had with longer the -- positives beyond?

Well, say sure. synergy have said Yes we're been we than see bigger to is go if things as and of faster in that that on had team, Simon, one to potential I the upfront excited my I about and remarks weeks is more after five to most attainment go expecting. anything we one as growth

that. for And to them of lift a see this a of leasing move merger. comes reasons permitting we're And a long network. and there's when Among to on things track we certain fact and time for faster prepare the we number lot it opportunities like that fast. had to We moving

our And be there's to this that as up synergies. these ahead stay it faster to to rationalization than schedule this Retail to now that we of calculated able may that be appear a to going start go expected. might down, knock two-year-old all plans relative does pace

something move et area getting cetera was thought quickly more marketing accelerate after time. an and due the be would like always take rationalized that synergies. people brand systems to exceed could we little issues, may to of get to and able but pretty fleets to expected looks Procurement plan. always faster had We a retail one We bit possibility issues

Sprint hopes most a at we customer customers faster tackle churn sensitive one had we we're is And network which they there Already the lit able we is things. the movement how expected And On the financially roaming we've have that. They customers that we as and of up see certainly to you see to be pace. it, more of can respond for starting this side, like level do faster know great. what? than Sprint to to integration

it or five to I is just yet. we're a optimistic. standalone position you can print in anything that, you you today in So guide really our from give not very we're to saw strong. that, concrete business weeks tell on And

were numbers You than better saw days couple Those most of our subscriber Sprint a expected. people ago.

also with into So walked momentum. we this some

a temporary Now view on are business. anything out know everybody. what? in But opportunity temporary. bite And to as our Braxton if of pointed They're social that And just distancing lifts. our there we're for out, environment COVID impacts going you that when the see that there's that took is

going really drop prepared might important, value. so They're right switching people be in for. I up if they've be low carrier. elevated what to no going is got looking sure to are they asking said This to for will customers category. going and but right if not stand I to As the category they're versus remarks, comes be my and they've They're we looking hungry the value. And to levels, is got be these make mean, way. this give

our we're we feel question, Even very your we there's than aspects very better contemplated premise deal perhaps and everybody industry have stride. mid that we And So speaking, the though even Comparatively feel ago. long-term, knocked to that feeling model some the their this in over two of it's good. off it look, optimistic. years

for I network was about broadband, Your follow-up and conditions relates think and right? too might Neville second the as it to question, I

Sure.

it pick I'll up. Yes.

north outlined and this the sub-X XXX to of megahertz key, the of eager and more for in out. So, right? great nobody is team now and advantage stuff the than me I get gig my and Simon, Mike rolled I spectrum team spectrum space. T-Mobile have see this to XG mean, referenced absolutely rollout mean material X.X-gigahertz as is that's you we mid-band

zoning before building sit And of So the the deal. leasing York X.X were actually. pendency activity. We've Philly we hands and stuff in into of on our during New didn't deal we the got parts closed

and that week. New some online York this stuff turn we rollout were immediately on just we that X.X so close to and of able coming And referenced up

on I mean And X.X-gigahertz critical spectrum and to fixed, piece. that the question is your broadband

rollout XG just us our and this that serving going ramp to start it also one that mobility for we that's in traditional start space. broadband to build we're capacity specifically with, killing the service capacity to with As great wireless customers but not

that some going us X.X broadband capability But rolling to at too our shaping overnight. out that the material And forward. delivering see customers Obviously, as as months take get It's we'll we we've outlined across into plans. landscape in we our we it how fully time. hopeful becomes and deal next to takes a the not and years -- It's out Probably do available I capacity some we not we'll and this to look as competitive advocacy start then beyond. inroads of making we're as roll be and wish that our I'm program very complete business nation. year, move could much year that but to part

cable mean, knows good competitive man. of the least companies market Simon are I the good people, everybody in companies. that. it's They're history the but

resonate value competitors. mean, us is to know I to to as to a had many Neville there, choice, people with And you one XG-based that And to that for millions we've we're to so you access as that's we're I fun. a how in Internet be single got people able itching know have of And to get going home think never bring because man, never going choice proposition them. of be we're wired. says,

in network condition. the got we've to So get

market to very change more see this to a we're we forever. and and it's year opportunity big go, year, next beyond that than landscape but said, Neville in As rearing that

Great. a lot. Thanks

Okay.

the Hope coming one operator. phone another is from

Thank you.

Goldman next Our Brett comes question Feldman Sachs. with from

Thanks. I to want actually follow-up

Hi, Brett.

initially the guys. were I faster churn maybe to Sprint want you hoped. you Hey, down just to about something talking bring follow-up Mike than ability

more which do roaming a outlets superior making Are lot of available bogey Can maybe aren't legacy side You the what to Is the has on what's customers I here? coverage T-Mobile to there But T-Mobile onto on rapidly and there the churn alluded tactic, twice which you mean, one to you right you have churn. network, T-Mobile legacy get do? need? was certain them. to the realistic? it was vulnerable levels? else rate who plans What's Sprint phone down

it at just not, net the I and so company for of have of forth? cash a the but one Braxton. know closing quick do what pro the And or all if Thanks. position you then forma was know closing don't fees you

take yes, I'll Well, Brett. one. And the first

driver carrier anything. and you what away for the number than As drives any Sprint And particularly Network. network. is that's one the know then one more is And churn for people value. of second

it. been you then of to churn churn No the That's best prices key the up network. bar network bump building, one's best those the best we're that top at And value that out value. two and the proposition those the And why building we're drivers against able none. are offer ever Those before, are the lowest people two of two.

rate start network not incredible in fast seen. to ever the to how I the on Sprint their rate merger to network to going out, at plans. shoppers give best that But up this they're country. we going as industry's the going be them predict them you customers, of turn because the And dawn for change this industry can't So to will to going smartest We're of some those this best serve honor we're because we're to their plans. yet rate force has, that them plans,

starting some already that see and people like benefits And we're so it. of to

lot got of a to that's do. But great. work we've So

and don't Sprint with To much your different account, does, that that other lines we suggest differences to ARPU, and are Sprint would has unlimited customers, between a have that T-Mobile but therefore do and do added and more point prices higher. turns dynamic T-Mobile more to with artifacts have all lines average much do. per It prices that fact really up plans, we about tuning a numbers are the like, of has think Sprint's not different than of that on Sprint's to the out artifacts, penetration ARPU don't rate It higher. business,

So to at it. get I can't wait

we're brand fleet As faster integrated to going can that. going we're brand going see we're from unify T-Mobile one we this we that for flagship to they than And that to Sprint start what under an up think expect. retail tuned network experience and all like with about, get summer customers to everything we to I talked do integrated

Brett Hey $X.X T-Mobile on have X/X billion $X a merger-related billion in undrawn fully we on for we opening cash revolver New paying or the pro the expenses year. cash place forma actual all after five had

$XX total billion billion two balance billion half sheet, a modeled ago, and two revolver. opening modeled liquidity we liquidity. Amazingly of years So, of we when a years -- $X $XX.X the including a of

ahead. $X.X actually we're So, billion

I to want great point a And question. out it's

financing With we in to business to get a place need and opening do to that funded fully synergies. liquidity the rate to we the everything do run plan have

Mike means you heard offset some acceleration also laser-focused acceleration given unlocks on for acceleration to of especially this talk those just quicker. of in which unprecedented are And about of synergies but we getting COVID-XX the cost synergies And impacts some to enthusiasm we're that seeing achieve crisis of about world. the our these

Thank you.

again this @MikeSievert. questions can Twitter to send And #TMUS go let's So, Twitter since you is us a or over conference.

city of Neville simultaneously. you assume might has says he's bring you talking New Actually macro question. a Neville. Walt into gigahertz let's Piecyk what there's address percent about Walt the in have the X.X conversation. York. questions I two

again then we Ronald one night. because I @ronald_XXX, love last this And launched

T-Mobile the how Brooklyn? you the Bronx expand We leave City of parts NYC launched cover about to out York full-layer our didn't New Staten in Island Okay. cake. like So, last Hey Neville Queens example and new Neville? cake of and fully first when layer it night will the

just this with we're could literally Mike we're I this this wish weeks earlier already it as both on; are mean I all we yes mean to questions say I combination we're delighted five Sprint. but getting said I make And we're But week. would started start. to into happen deploying.

out were have coming think but would think deploying quickly quick. we're I a out So, folks blocks we don't to cities. in determined -- of made spectrum the X.X-gig be the big and starting come I start we super anticipated so many we

you for Here's a fun stat all.

through days March the look If what that and launched just in deal. the of we of built put you Philly at square really air on and we XX inside miles the

wave footprint nationwide footprint in half the that it's of miles of Verizon's metro XG square entire approximately times the Philly, on two millimeter at look you two, if basis. and But a a

rolling they've know don't month I doubled a thing the in mean we more two footprint. XG But say years. I out they So, than been this for

XG wave to mean coverage it we're perspective. mid-band versus going And a millimeter yes, just from I kill

in to We're we're So, a mean we're I'll done a give moving guys focus my happen. quickly. team great us. a that's I making who've the the obviously to Ericsson job in moving. this shout big markets the out for key Northeast

lay and rollout start will work super-quick. as we across at the from importantly, And super X.X-gigahertz thousands off more X.X build of out risk. is a of forward, in And great We're from which move to and spectrum did look going sites benefiting year we we XXXX. launch last to that

been has to cetera. service critical deal through are primary managed have delays paramount But Obviously provider cover with and we've the and COVID So, et safety as concern. as a permitting working a with federal their key. our we teams health air

new move of month onto We this is out into sites. ramp we last to actually over of year. month built May very April And X,XXX rolling on heavily as sites this through the and our plan those spectrum

of X.X lots So, gig coming.

York, most as in the are very sights the metros New our markets northeast across much of U.S. of all major the Philly

posted. lot keep come more moves So, and to a we'll everybody

with New megabit there testing York stuff some New in York social XXX asked. And were around per protocols that XXX of saw distancing and shelter-at-home social Ronald as but folks speeds. observing Mike just and looking assume running up I I even turned on second and said

rolled is megahertz. of XX spectrum very at a to out And X.X-gigahertz volume XX time in so this point this with limited

we remember the with have about secured And XXX. combination Sprint with

go but the way incredibly capability, just is what performance of ground have on terms we to we the have long exciting. in a So,

and deal balance to we're our to that key we aggressively as out So, key the to that experience through this consumer roll year. of move going

discussing because at And while I you're we're bit risk the a on roll you're and Neville the questions But getting roaming by now question this know situation Brett's and some site. responded to on ask a peril enthusiastic. I little I

experiencing networks. are roaming technology because how briefly itself essentially just of is while using two that now Can a touch so funny extensively? Sprint very operate we But Sprint experience customers we've our turn day-to-day what's Could you customers turned is happening? like more roaming much they're the experience on we're customers. And kind that up about tell all you us that the it for of roaming

terms again on absolutely. roaming effectively clubs. LTE I John data X/X all to mean kudos turned we and our work Prasad and of of in up across And sites Mike [ph] integration and I Yes momentum Sore [ph] the team nationwide mean

time sure of So, to make could work all happen. that ahead the

network churn network can that know base roamers. seeing of the -- does that term overall off that uptake. we're now postpaid mean We a wherever they on And leveraging key customer basis, churn like I Sprint Sprint network. around what It mean? they Sprint and don't they be, in T-Mobile network. was rural location geography in million Manhattan see we're wherever within now the fall seeing I Sprint approximately customers the it be unique driver a the building that XX in weekly the a means roaming, that but or or may T-Mobile big when the

that's postpaid the we than phone with of one-third base that So subscriber have Sprint. more

So of uptake. a lot

million to out growing within our band. that XXX weed. which like layer the the or access out a mean that knocking week And phone we've of launched our for day customers that's last And so and every park strategy now Area. then footprint XG footprint too. that is on getting mean teams the provided I cake and access been XG-capable and the the have our a building layer it We nationwide of growing low to XG footprint XXX Sprint with I is the Bay pops. just activated just foundational so

focused best sure lots our they on So customers very, dimensions Sprint all Sprint are of the network. the very that getting that of T-Mobile and of combination making from can

we next everyone. from joining the for Operator thanks queue. let's the phone question today. all That's have. the take us Thanks time Well,

you. Thank

from Our next Citi. Michael comes Rollins with question

Mike. Hi,

what's could A provide some environment. the customer to if of this Good activity just behavior. quarter and as additional color little afternoon. Curious, Hi. you in Thanks. more you're sales of maybe terms approaching happening payment of the just midpoint the

number the that will COVID-XX disclosed cost a have of excluded And you their have be earlier customers for pledges taken. from companies mentioned Some EBITDA.

you it to was incorporated into million would million XQ. about those Thanks. Could just expand $XXX expenses? think I get on $XXX what for

with -- then you And in on cost. let's the think Braxton, and about on we're can marketplace. what's the I the Matt maybe team start tag included and seeing what how to

Yes, absolutely.

and not have to million-ish $XXX accomplishment supplemental down So critical time worked. what you crisis, start COVID busting we happened call service. the of of the And everyone were about paying that to the pay amazing reported It's of really customer center. of we for At Mike with an paid pay in guidance hazard had infrastructure a this up. some put

community. now of in and keep customer time the were not our has support XX% over happened as also But during dealer paying as absolutely retailer period, working. well pay our hazard reps to Callie in connected That the intact. home that pay well and service team fully supplemental and we

at really this million point. that So is dissipating $XXX

out opening reoccurring item. a of significantly said, the distribution As we're significant this. up country Mike that as be And won't steps

to that's roughly The expenditure. And protocols $XX and and a is in worthwhile second ticket. protect very extensive our protect important customers, understandable facilities PPE. million a our and to extremely place, item Very and people cleaning and

a pledge. of here is debt debts, aren't bad for going The to of to disconnect that in And course, other debt, our range with which working. that business. million in up XX final about here is to $XXX extended be due. of ultimate been to seen on has the at people item through nor the point, need bad inability bad happening somewhere best who $XX are specifically, related to multiple the this this layers building pledge, on All pay is we've come And to now June range regular you're FCC estimate that cost able million. this our the up payments What's that be is we included on were

We customers got certainly taking who that are additional mitigation aren't debt. But paying have do number anticipate of We that customers are bad paying. we and we items. thus significant a

for of So that's other really to the you question? other that. part breakdown go Any your the questions we before on

helpful. Thanks. That's very

welcome, You’re Michael.

Yes.

The bit. competitive a second we're piece, environment share taker has with share quite and fallen taker. a likes of home certain churn amount itself a Everybody's been churn. a And a

innovative so able to that notwithstanding providers. less switch ways we people friction environment and we've been very really and done. where And get have to an competing that And hard are being obviously, like to able finding

of So March. came a fast it then, things stop and pretty February. we And were killing course, in January to in

it the in be took started and was to slowdowns in decisive. We shutdowns execute very whole retail were our it where felt here We important quicker we of than others more and based seriously thing to Seattle probably did. March. We're

that we don't may been little March you more in a you're what moved has effective we Matt, So equalized And faster. But why than All now. us have color some. on give environment from talk may curbside little mitigate Matt and some to happening bit market virtual things briefly Jon about the very ask retail Staneff. then And a I of and to seeing?

Mike Thanks, Yes. the for question.

measures pronounced pretty a what health and had these is general. we now retail our to seeing corner. other of right you're for our took a we're and the places in are safety in consistent decline proactive off what customers a Sievert generally business just Mike we what saw that are rapid slowdown hearing because the in around said, market the turn right And and is As stores the you're things starting And to in news in starting gate. the things marketplace with seeing and rebound employees

and Consumers as again to switching stimulus money are said, marketplace our marketplace. enjoy that's as marketplace And some to the in categories of interpret prepaid to quite to it's down coming we month. slowed expect Mike closed while there's the was a like and market this first rebound forward. move We're generally to speaking a and where react the us starting part seeing a industry shop bit that of to the naturally important is so of more. switch. It we faster a that you and adds net continue the lot for for grow a in There's rebound little starting in out as would really

normal is quarter. the marketplace see in got consumer areas of levels behavior talked this the that signs rebounding to about, some see a we to get the and back we've I've to buying but starting out go as way switching we're industry throughout long thing to So

some particular of need students the that strength other on also example. and We've learning in public Lots some of things nature. is connectivity of sector seen an areas

we've active parts those participating well. pretty markets in So in as been of the

retail change Jon We're what waiting to rapid about work the market just we we've how in Freier changing not done just normal. return to operate. means very company. to briefly for We're this the

to decision, account. -- to Yes, add And tmobile.com, our into went of you experts, lines the Mike. its with an and quickest from course, our our of meaning of about the in took to decisions as stores be be there able of when number XXth to XX% to nature a sit button on know employees bold action just a big can company-owned of convert mobile to yes retail a most you Thank we go our T-Mobile, learn close sideline retail rather retail we to just expert virtual take majority take them space the more you of your March on able about this and chat one you. let And that click stores. than chat and kind

and environment action We learning to on home. children take had number a for learning that remote that, of of support had a a lot a of people to those learning people environment environments course, virtual in

that customers there we virtual the while in retail stores to saw be serve mobile stores of to continue in work and by have virtual wanted We environment in way. typically increase we our retail So that that our continue converting XXX% number experts to to closed. that were people in a typically

and running working store a didn't also the app capability to and a And at up within then up pick a able stand T-Mobile this from his curbside delivery to to walk continue through COVID-XX have a with to we kind we be that chat prior curbside our we talk of were able transaction that Stanford product perspective a and of delivery and in and can and to of team, Toni through stores way. I to up And have be [ph] today. is, through technology okay, kind all that company-owned capability that able contactless

So got I customers. and I million said a these our couldn't and tell of to this times, capabilities of but team once in got all And serve proud Callie team all you that of rapid Field's maybe we've probably fashion serve in say company turned country continue the stores, customer times. more proud to me to of one continuity to our business going. be the care, to customers of entire let more be and there continue just just and on couldn't frontline best even teams million had planet. in We heroism be the the our teams I of the face to the just of this fast keep move

the go Well, phone question. terrific. operator, let’s to Well, for next back

Certainly.

with comes Hodulik question Our next UBS. from John

Hey, John.

I guess, are question. postpaid XQ Mike? to how XXX,XXX. phones number. subset Typically the New a for add T-Mobile Hey, for for zero on Thanks that you guidance postpaid first Great. of are that doing net

quarter? guide in the then know I are your phones bringing of you typically if of in second some how those don't might sort So postpaid phones, that And closed stores stores background there's understand lose but the we within terms guys to online? you should in maybe actually are assumptions that of number that terms what back

network. guys the any terms you'd secure in term that a of from your you Neville. for spectrum? your the outlook XXX-megahertz with ability that performance, talk from I'd grant question LTE that deployment to are longer imagine on kind then And are to on of What that And basis? of you thoughts Could about DISH? you deploy Thanks. extra getting spectrum

Okay. try fast. I'm to those hit pretty to going

piece, trends be nice positive, first the all So postpaid And on of expect we're phones negative. we first seeing no, not to develop.

the that quarter. guidance we'll through the very So the we see we gave of that hopeful gave. I'm strength rest

but assume would going a June May not that social the and continue bit. change May ebbs behavior. And more increasing momentum changes. it assume would We see through as in quarter than some April, assume happening than on But that it a doesn't wholesale slowly customer distancing to does we have more step

second do the want one you quickly? very to And Neville, hit

And Let to in track quick way really got we record know playbook changed. not you were the our changed too. We and said our what nothing an we playbook. to conservative of about impeccable me going We're has just has Street. position do Neville? doing The add John, we that.

Yes.

during needed We obviously, I John. country doubled XXX I it our our commitment. the COVID-XX. pledge We've, thanks extended of kind and great speeds. think mean, So was the our additional customers

they those XXX period. see continue customers our us serve if with I'm hopeful working during better to and are extend. this enable many We will to they will to of providers

during deal allowed and what exactly So traffic lot saw a increases speed peaks is with difficult in network more more very time. of was a capacity and to needed we on the and that us

we're the out big extend thank Chairman and to that us the pledge shout spectrum. their FCC a and said, loaned us the holders continues. And I longer So hopeful Pai and you also they'll as little with as

Thank you.

All right.

go back operator. to the Let’s phone,

Certainly.

comes next from Cusick JPMorgan. with question Our Philip

Hey, Phil.

and the Congratulations on Great. Mike again done your promotion. deal on getting

to your $X.X the First guide billion EBITDA Braxton assuming was of about ex-leasing EBITDA XQ T-Mobile, XQ would stable imply $X.XX billion. at Sprint to from

a you look to billion to this run lower. expect restate going doing which we at maybe $X guide Do Sprint's forward? run way little is the about is methodology? a that EBITDA this about rate, from So good rate expected what Or

great It's question Yes. Phil. a

you that over out. XXX policies aligning be And we of in process on significant disparate. the the accounting pro informed in are are formas put items the We can that

know we we're lot stuff miscellaneous that certainly and a those So, of there's and in material But working outs the embedded are here. ins through.

the And that exercise have the this are we statement. the not to We of going of differences at value how assets do the allocation. purchase geography the income very also price create significant are throughout what point assets, known

we're accounting deviations valuation numbers the business, what including baked the material any that the guidance. already all valuation the EBITDA wireline price net that through capitalized rate add from so But not is this depreciation or But can on come out devices this. and of And when create changes and anticipate on providing comes it issues we EPS, what is. things will worked run the lease forth. of assets haven't there are but what to so be don't the that some purchase We into like the

quantify we're work, multiple everything, significant a will that It have to And the we're will specifically the will And see position categories. T-Mobile of we not will you to significant. mentioned KPI that finish course be It through it. also until Hopefully to that a be And that's reductions We disclosures, looking helpful. will as KPIs we in business. be on policies. impacts base. in subscriber have pour have our significant that there in adjustments you alignment as at the various Sprint

That it of guidance, that helpful. as any -- putting wouldn't and of is to guidance range on be to you're is it leasing enough to I then ex fair the back you've just this changes you that go since say out to the But given? mentioned outside that EBITDA total push

we guide. the in we conservative and got but an we're have way given wouldn't that we it. -- its material We track that here fully And representation impeccable record believe or

to then I the pledge us? number in that the didn't just thing give Great. And quickly, category. quantify FCC subscribers you last Can you hear of

work is is of for quantify was have have didn't carried a may that just our on of to some find be jump people people with of different We Callie way XX% us but with XX,XXX our core how we our big needs -- Yes. in. on part every and to doing occasionally to circumstances. this very of -- deal And piece We having part from who Field competitors doing that. tight because did is home, than we've meet customer. because move their a to and going yes, on every budgets of I work difficult while to normal our workforce. carried it team we having working customer and and that's competency with A operate and

is a so it's big not honoring incremental. part is not trying costly. hard pledge this count But because and we're they're it's of up to those new they and them afford. ways a that. to are I'm and But customer And can't to customer can at It understand it's and it's leadership. so have done team to that financial quantify total not product us every on proud make our under treat And And of And numbers. sure we potential of encourage difficult you working them we individual in you costly. of very stack heroes Callie's just afford the care say not customers. going disconnect to to of but are found they've sure those up them. going for is kinds they make I'm that service What to fantastic bills we're tally. stepped the

looking Let's Bill the Mike for Is don't from want low-hanging I go emceeing ignore growth asking for Group. to Braxton Twitter phone. will segment of Mike Enterprise be and fruit? on it and Ho two up and what's to T-Mobile the And Business just have minutes few to example for for I warning Twitter. more ahead competition? about step call. then fair the Sievert Katz, away to is integrating ramping the And everybody, But thinking us. enterprise, will last

of races. bit Mike want you to you're of opportunity. consumer really that a integrating We're just X have very Sprint about day way if know capture I brand. combined team's enterprise seeing. part. I'm week. give entire the fast doing was talking we team behind and And achieved day about for one proposition getting under T-Mobile proud the one the Katz being color T-Mobile off force his this briefly keep on this how forming what the Mike We're achieved don't and they're value to what By talking to That and mid-summer. an selling already little

into Mike. the lot think integration. quarters large momentum lot at the enterprise T-Mobile of record We already every thing a had Yes of last Thanks we single couple momentum. one for years Yes. I of stand-alone and so is quarter, important coming a government that's had in

customers that the a trade-off and to now talked great as historically So larger at customers with. beginning price and Mike experience is this network call it has work about is to to consumers. lot important having this great now integrated And of to enterprise between team the that trade as service

timing And what as result as with responding And a better be we're for is of to so we're really, in interact that. COVID and And we of couldn't they're enterprises. think macroeconomic COVID. big the far the impacts really middle I it seeing

We're think a considering that the opportunity positions for seeing what many enterprises And structure we going spend lot this and spend us through of that and they big transformation their how in AT&T the revenue category. cost Verizon in including control exercises of enterprise they space. XX%

So, well really opportunity think positioned growth big and we're a we for big, us it's post-merger.

you. Thank

comes Our from Chaplin next Jonathan New with Street. question

you is this taking last the for questions. call, the Thanks Braxton, earnings on? get we

That's question... are on? you Mike, still a

That's why I asked.

Okay.

Let I way that retire supposed years ago. I've to two times. was me -- this tell extended me it let you put three

today. announce will anywhere. Ultimately I'm I We And whatever have capacity, this nothing form, future. not in love the to company. some I part going definitely be of

for announcements. tuned stay future Just

a for Rooting extension. fourth

mean integration billion the you are summer, in there's retail year? should $X synergies quickly, the in you does -- captured the the the about done by if of guys sometime very Just that on end that getting by have SG&A

not We're quantifications. do prepared point to this really at

what were then to original you of plans point. and quarter be what New accelerations earnings saying listen frankly, at we're will T-Mobile earnings just first And we'll wait that through in work And the on be If are to providing it we were, which right Jonathan, have time we this going specifically just and to we call, able by about plan now second guidance, really to color, provide color. the operationalizing to call we driven need COVID. some quite

we reiterate, are estimate are we're all on extremely not synergies very good to fully and but I opportunity that's more want than an news. that, focused to you is that's don't confident as I $XX we acceleration baked, the on that other want billion. of actually give

And acceleration that. part point of is our only some at of moves this

saying. of I for this got making do of a those can and focused frankly, up to because the them material the and pressures accelerate with. got mean COVID, we you're as period, Jon, to extent time it's lot we're And going here on pressures But, we've super you anything? to to want that addressing during increase quite NPV. we work add

say a I the this of of taking the transaction working this plan. calls And the I you longer of that, exactly reiterate had what getting what we've bit approved Braxton, runway really just finish Yes. benefits to cross we're a last hard. one We're said. little longer Mike finally think will and to opportunity And exactly to an line couple to seeing. Sievert that, had that, is that's

through around had number we're through of doing have that, them working physically with owned independently quickly. operators Also that been not together. once discussions very gotten impossible, we're we because would closures. internal efforts we through We've of lot and have that, that be a We're operated integration integration, have very thought working store a

tens to all having companies work retail pleased that the in virtually. amount got thousands bringing of the with across virtually, of the that do team the been together. of but just country two legacy about this of do between We're We've we're incredibly employees I've interactions we can

the taking in terms up Sprint do that's And systems gone training, them Sprint to legacy systems the legacy speed far, people into stores. into thus well installing Magenta installing people legacy having our on incredibly getting of stores, just necessary

can the T-Mobile visit. matter yes, can that customer help or regardless of Sprint-branded say, we store a you no that customer, So if we you a you're

weeks even good five-and-a-half So not weeks, into integration six after close. place, really this it are we six a call in weeks,

very We're very we're we're confident. we've of We're of realizing And year. soon. had. terms So that fast. distribution-related here on bullish you ahead moving very this schedule some forward results synergies our to discussions the in showing looking We're

guys. Thanks,

Okay.

please? question, Next

Thank you.

Fritzsche question Fargo. with Our next from come Wells Jennifer will

Thank question. you taking my

Hey, Jennifer.

needs to fiber Neville's wanted ask this programmed been is and maybe all is Hi, questions. a in that guys. more category. the wires -- taking We've to element. Thanks I wireless believe with strong

significant thousands So of I to fiber you're this and going think requires connect X.X sites you That said backhaul. year.

current and do last How thoughts what didn't like seem were taking may, one capabilities, Has are on would you it that one positive Or your at DSS an we on competitors confident of then, you build? I these all? spoke that doing of organic calls. partners? you if your are And in fiber just changed time on

hit these I'll So quick, Jennifer.

So world a let And not generally others get that fiber them to leased the model. We our we need. build for we our great sites. prices We from model services has do and been today for fiber backhaul. just do we've And for volumes these all spectrum sites performance backhaul we're multi-gig out of with some time. upgrading our are a of supported scaling limited XG by the been we're seeing X.X

in will a place with our our and lot we're very that intense in space so, And to continue providers model. competition that a drive of strong on

to looks So that continue on.

big think, was kind that industry call seem And still my comments feel a of I in one last trailing they're Not on I do is call yes, to discussion trailing. a DSS, On -- and clear on vendor was DSS. I that very really. there lot better? the

something message similar on happen heard key So I think XG it is, rollout. going and Jennifer the will to to happen. our sum the year. We've this DSS not of dependent for DSS us from is we're competition But is, our

having footprint spectrum nationwide rollout And already. with there at earlier fiber a to mentioned And our it's the the share users as LTE LTE XG growing with not is users. between to the And and I of spectrum call. way users that's tremendous XG in pace,

cover position of having our our of a of wealth reliant provides that on wealth be And to spectrum not DSS. terms us in

technology. we will deploy Now bumpy. that said, still the it's But

thank Great, you.

operator. Okay

question one take final will here. We

Thank MoffettNathanson. you. will And our Craig final question with today from come Moffett

company. get you Hi. I not. little you mentioned margins to speak sorry walk how on in over walk or of through don't to a just But still -- the merged know we've I'm it, while Mike mid-XXs mid-XX the got if CNBC Mike long-term wondering you the could whether so ago, since

the are of where how then the difference sources to that And Sort AT&T's the today? mid-XXs? you to say get gap and of your or close between margins Verizon's

talked guidance the same of rolled guidance And dependency that really there Craig, there. Unfortunately was was about merger. and had leave. during to aspects about that the Mike are talking multiple Mike Yes. we That out

The is first aspect scale. of course

business can capital-intensive been has When leverage our changes. some we cost quite the on fixed of in structures cost AT&T Verizon, this look highly transparency versus which analyze frankly and and at whatever on reducing with we their the get

parts We believe that efficient is piece many we're part We of of in believe structure. is actually cost more super scale important. a huge much that of driven. our scale it And that

with just is company. the scale. a this our this of completion had growth merger, significant in increase we course, a And Of

And essential even this though, Mike early was part being this as But said, we went social our growth a to drove traffic that fire, QX place in on of time stop. will crazy be the will pandemic everything continue March, we in we're And an hit the temporary. until all company. distancing in period, and just

to combined for scale of costs it the that is the really with down this the part expansion. By reduction major a we shutting continue having in equation, second significant will the we fixed So component gained is the the associated organically duplicate And margin second assets. the overall efficiencies business, massive the merger. then from network, with

this. confidence can that to And he's to with his heard so everything quickly. on you've you've on I'm this we the doing progress extreme also has have made us mean, And Neville call able make been amazed that. just team that that we're I heard accelerate

readouts you create that's ultimately of on, goes giving chasing a lot much synergies. time color how these there. more and aggressiveness, And about focus And and we'll to be we're as a lot goodness going

Braxton. you, Thank

You're welcome.

for want I in. thank Okay. everybody's safe. are really families hope tuning to I everybody

of very, to And results with second we're very sharing for of forward a here. exciting, set the you lot the Our of these on much working call with thoughts earnings you T-Mobile be And the very, quarter, times. to first the are going things it's New look we difficult during Operator? very results first that and very and

and T-Mobile gentlemen, this the you. Thank Ladies U.S. concludes

Earnings Call. First XXXX, Quarter

the any questions, you your Thank may you or contact you If have Investor further departments. participation. Relations media for

day. You may have now And pleasant disconnect. a