T-Mobile US (TMUS) 6 Nov 202020 Q3 Earnings call transcript

Good afternoon. Welcome to the T-Mobile Third Quarter 2020 Earnings Call. [Operator Instructions] I would now like to turn the conference over to Mr. Jud Henry, Senior Vice President and Head of Investor Relations for T-Mobile US. Please go ahead, sir.

for quarter us earnings joining for T-Mobile's XXXX third call. Thanks Officer; our today Matt CEO; Marketing members Peter of are as me leadership as President our Staneff, of CFO, Osvaldik, Mike Chief the Technology; With other President, Sievert, and well course, our Neville our team. senior and Ray,

currently the be we let related to period XXX make like non-GAAP therefore, results quarter our With statements merger we to plans, our forward-looking this about call Such our materials statements to filings call, facts. be financial could with everyone that, Quarterly also represent the and historical Sprint, results on the merger. the we set we'll, future receive GAAP our to standalone also to we upon subject with the significant to the operating our and call in over may beliefs Mike. risks section the in limited to between in very include this me not webpage. remind and on forth results differ and of we in operations materially, a cause of found quiet During our business expectations actual that will are including of any make Results results, would benefits that. note expect statements want that current to risk Investor that Auction historical of of results T-Mobile that are can of uncertainties Relations factors the management statements in and comments projections the control XXXX and second prior to COVID-XX are based our our discuss can I Reconciliations turn and and outside that from I for that the light are earnings other SEC. the our prior

hopefully, We report XXrd competition. we across with results today. yet Hi, to after excited share balance you subscriber reasons, job. metric delivered board momentum our and of of for pro biggest our went estimated and you you we strong from continued T-Mobile's financial the across the all Well, quarter strongest our with can and year. the our Verizon tell quarter. Churn in that for our and again, customers, in skeptics surpassed share two for last when ARPU performance from additions. delivered number X history, total net the We've did our up industry more than ahead last we're look consecutive down delivered combined year-over-year nation's AT&T We churn financials history. best with everybody. now, and we Today's optimists are further pulling phones forma so shows increased at that obvious the and postpaid outpace over quarter surprised by is industry ARPA as that every combined. proud the AT&T say I'm the in and as history, This the the with profitably of quarter, this and XXX provider. take to the million Jud. guidance Thanks, million growth in the now and quarter, to year. our quarter accelerate has wireless this leading Great results QX went we total

this increasing same team growth the us $XX after versus we're that expectations network outsized forward accelerated handily. beat are service Our steps pursue a period. at and cash also over and model, flow beating because a all speed also accelerated guidance of in free these lot. importantly, as by preserving of And profitability growth ahead balance Neville We on synergy-backed and Even in billion given delivered in flow CapEx on age-old and with our $X network allowing the Big the actually investment, running spending, revenue, at benefits billion of a synergy-driven adjusted full of EBITDA build. reflect estimates year. today is we to operating to results margins begin All filling simultaneously in the cash time. both growth possible for trade-off the operating and versus of

era. ahead of the early seen leader and ahead in than Our all months at announce, quarter, confident structure evolve also fast, integration driving progress more team our that's one you first back both which the our network plans big streamline XXXX details site in process million to execution. the I of achieve from an early network expected is builds with the with hard our this next more now to demonstrate just the synergies this And XXXX, moment at year before anything level our deliver and operating over we we Analyst These schedule like decommissioning. to network. for for synergies beginning expect to I more value cost-avoidance we're even to deliver customers. that, teaser, year-end the better million shareholders with business on well the an competitive of synergies few build, we're which expect told going delivered brand the working synergy such is synergies so network has able Last was that host $XXX alone. to plan only of $X.X be double about office simultaneously in to clearly and where synergies our and we momentum business, faster I enable XG a tracking amazing Day shortly a a $XXX retail leave but than our I'm profitability, they Breaking proud merger expect hold will highly primarily we're than while go after our down, about to go little expected is didn't synergies, and it were the execute our and just we XXXX, capture you efforts organizational it in million and about to outlook continues results, way focus billion with results incredible being the in merger initial more $XXX to realize synergies, and to more on to share report differentiate you lightning-fast and results share marketing just quarter we was realize We're and expect delivered true. growth you we in of of in same to team what and on country bit the in plans avoided for to time, in. one I never organized XXXX. bona than marketplace, fide of a T-Mobile as to like flagship with become And rationalization. including few And in and under to years. for expedited in to a I'd from done

to also results to So [indiscernible]. for to want important context some our I strong customer more. stay add tuned back what for Coming we delivered.

continued COVID-XX than switching industry to environment the slower ago. QX, a year with much in the First, a impact of feel

postpaid beginning is yet, of at off gross we is brand flow shut when a As the Sprint and you clear in which lead growth that to industry particularly in This gross the still also a for adds. and new the headwind August, essentially consider exciting customers net we adds adds. immediately share-taker, for certain phones retired that of

describe of QX a what the reinforce transition our during So, brand strength what market execution we as team's the in and would to I results this growing the capture quarter. T-Mobile did

T-Mobile We Business of continued nationwide, needs increased postpaid learning reflects for see in the other availability how this in traction demand carrier quarter. due This to digital to we solutions the strong responsive were to including the as fall. greater learning very for continued this most remote school districts they've growth of devices,

recognition strong to just We and in roll also in. particularly and saw our customer of enterprise service growth continued amazing government

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king. XG coverage coverage. is one live, play, first and The Having service work where is you reliable

now AT&T really as right avoid XXX-megahertz miles. double XG? than of more precise, square between low-band overall party We better X.X largest XG carrier launched." than XG across spectrum. being our availability know our when combined LTE, showing that to XG are spectrum XG XG and we Verizon is provide that people extended big speeds XG, claim they our to speeds and million are America's a sharing the T-Mobile dynamic LTE range geographic the they're of million the To X only But median dedicated covers and Well, the cover geography their by only and using sharing to more They up coverage fraction times coverage "nationwide be is the have on XXX does. Did fast XG spectrum lowest Verizon as to much the XX you not late Verizon's. nationwide, LTE. twice AT&T without because thanks iPhone be on network coverage but X.X and

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speeds And element high-band. real channels have covering million more with both by towns, high-capacity grow. band with and nationwide our measured XG high-capacity, the and reach, XG from our The found that's XG happen. speeds of of because cities really ultra-high-capacity is have is can And plans around We download Americans. and coverage XG over This to megabits deployed in second a mid-band covering to million second we're spectrum gigahertz things peak capabilities miles that XG in over delivering targeting and mid-band gigabit months will why This that's the exciting massive that by not next Goldilocks spectrum people our by continue XXX like it away, than guys. other cities towers, enabled where on just matters X.X year-end, is end average X,XXX bigger gigahertz is in and the capacity for XX gigahertz high-capacity it high-speed X.X now year. of two per has has the meters and towns, XXX XXX mid-band X.X

only crowing million less Said XG today X report Wideband Ultra people. by covers estimated Wideband, than done This recently that X% the estimated shows high-capacity end an with that Verizon reach that more than which the time. their customers people recent only all to fast analyst times XG of around our Verizon aligns solution, Ookla more one Ultra has this For the reaches people XX could XX, connected X-X, XX of year. the simply, Verizon's the it times and

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our leading our you we're Lastly, and doing Un-carrier scale and capture and opportunities, know, network leverage sight of as to market it brand we're XG expanding core our focus. new strategy to losing without

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customers, showcases We latest points and are move that all yet solving about pain Un-carrier again. serving and this

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sure make mute Just be? takeaways main your should what a So check. do you

fact, EPS, we So, including which merger, we're from this to the distracted our the while growth, the of and duration company highest This will just thesis that's what can giving XG while away about should increasing you network source that's profitability, and putting guys? market guidance era. pack quarter, on this, really the being strength. of cash across and the the so all growth by come. The unlocking our board, incredible in and to all deliver really a provide We many experience, customer fueled in the your showed it's all Far was the of pulling to Simultaneous unfolding. main beating of results integration years and best rapid takeaways of and story T-Mobile. value what history, T-Mobile buttressing already growth stellar subscriber be rapidly investors be one will from have to T-Mobile. faster-than-expected the that work simultaneously for the our benefits the it an the and network for flow. exciting stakeholders, from synergies, matters, keep era, in Only leadership gift did EBITDA by expectations the XG service a a that positioned revenue, stage as growth on of We best of the for for setting in

Okay.

to the through to Now, and our financials us Peter take ask guidance. I'm going Osvaldik

So it Peter, take away.

Thanks, Mike.

And even see from us As can growth stronger while financial simultaneously clearly we originally than strong a you with this second quarter customer up delivered expected. results. results, our an posting for sets growth half profitable we record-setting

and playbook All to right. mentioned, Mike delivering as growth raising continue proven as our guidance board on So, profitability. of across we're the we execute

QX. therefore, that of to the operations volume Let's completed, of higher discontinued our prepaid well increased Agreement and attributable July services with captured. to revenues wholesale growth details sales Sprint offset increase revenue QX sequentially, in wholesale billion the postpaid result higher right revenue partially on $X.X following synergies reflected grew service the financial in cost of jump go customers results revenue $XX.X Cost was DISH by in an reported Recall billion quarter. to see for on the service the additional ahead site customers sequential into the continued as Total in the X. and Sprint as MVNO in the upgrades costs, prepaid in a merger-related and, due you have of increase by as we driven of a

as non-cash sequentially, costs sequentially. expense signed full of of quarter is SG&A QX, transaction-related of which by impact continued non-cash partially and QX. approximately from agreement to offset million realization. and will a September, synergy by merger-related were due primarily Again, expenses we into $X.X of tower the those increased cost billion lease services costs this down Looking expect severance in lower much is impact in were $XXX

along Additionally, expenses lower we and had captured QX. with also in additional sales bad synergies debt

maturity of amounted amounted diluted sales QX including costs to in activities Net cost services. million, network achieving increased of and our and spending. amounted property quarter expect we QX which related of ramp capital partially billion per sequentially, due expect to build-out mention have cash rate of $X.X and million to merger-related month, an and billion we and ARPU $X We average secured significantly higher share the we Collectively, the account, $X.X merger cash higher integration than ongoing the respectively. $X.XX by an average to costs. to by capitalized doubled million, $X.X network promotional of closed, have primarily And trend and to by and sales driven revenues, guidance Cash with of $XXX and totaled provided work increase revenues, of XG capital approximately of ARPA, our was of of service launch cost levels $X.X merger-related Last billion, billion, $XX.XX. second nationwide Postpaid $XXX.XX as from million billion I years, the the to X.X% years seasonally accelerated Adjusted were The flow $XXX improve and or our activities. premium sequential our phone equipment, done was for and purchases includes higher we X.X offset and promotional ARPU was X.XX% excluding postpaid revenue primarily the half $XXX and structure of interest operating already XX.X end approximately holiday in closer cost Free activities. service average postpaid of low lowered balance environment. the non-cash fourth iPhone to EBITDA X.X impacted equipment higher costs, more $XXX to to $X phone swaps. even by earnings income net of equipment the of from debt to of per which sheet. years. higher debt QX X.X% our with tenure average average the portfolio since issued notes strengthen nearly postpaid with amortization

Okay.

to Let as were during much originally profitability raising guidance, uncertain board Again, times. are transparency and which even provide our we and me to these stronger prioritize this come anticipated. across the guidance wanted we than both growth

While XXXX. guidance be half second ranges adds of QX alone. list can are outlook. We updating context for our we postpaid QX had of net second our X.X the in X.X to Well, off XXXX checked million that provided half million of previously the we inferred, the guided in originally in to

to billion to from the the relative saw educational expected includes phone and back half launch and opportunities capitalized of XXXX, we $XX.X the revenues of $X.X strong be mix billion the original $X.X non-cash well and to network environment, quarter. additions is $XX.X lead now QX promotional impact exclusive, billion for agreement. of lease postpaid expected as expectations interest, Also phone fourth and in and postpaid the for of our postpaid costs we a in $X.X more by deployment. phone leasing guidance. postpaid at between up property higher phone net $X.X XXX,XXX QX, half billion straight-line including guidance that prior EBITDA Adjusted billion. of holiday expect balanced reflects on purchases to We'll The our implied QX. billion and expense momentum driven to to the for tower are and of additions seasonally XXX,XXX QX net equipment, we're to guide a So, in postpaid industry extended be second $X providing look between other customer guidance, continue related expect our our growth in the range the as to Cash end billion recent high iPhone in

half XXXX, For adjusted the not in $XXX before of million second taxes. and are from our merger-related prior expected billion to to EBITDA, costs, included unchanged be $X guidance

You billion, an you've know Net with original merger-related QX by continue payments cash an share results expected $X.X Analyst Day team to to is guidance cash operational to now activities, business. $XXX and of now been of will income. increasing all $XXX this of $XXX And $X.X our of $X.X increase operating all higher activities. integration long-term mentioned, a XX% primarily forward across free $XXX notice for million. We on. guidance going due million range in the XXXX to million up for overview and to costs, million, billion following as to entire as from payments excited be have rate the our the from second half we in of that flow, updated to This in And momentum is including well be you to billion. QX guidance, provide the pre-tax range is expected end around from are lower as to for Mike strategic we that for book billion implies levels increasing of including range previous And rate expected merger-related provided to is update guidance, the our be color a as is than this effective waiting an XX%. of also original $X.X to is looking to costs, tax our in our year we synergies

Okay.

Now, let's get to questions. your

ask phone questions via Twitter. can via You your or

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

Jonathan Instructions] with Chaplin Thank you. Street. comes Our [Operator New first from question

guys. Thanks,

Hey, Jonathan.

on Just --. Hey. a your quick question

jump call. with times, end didn't you If after thank the operator I question a in going four to everybody that and there was that said just

XG My question your about go-to-market is strategy.

the a you the So, think market and that we phenomenal on understands X.X that with XG into the if think And advantage drive call the as post articulated. advantage, that of guys iPhone? I And message have. you everybody wondering consumer sort as gigahertz you I'm advantage over the you understands enter -- the have the -- the I that market how launch era of

Yes.

don't. because And investors a tailwind that's they perception by So, lags reality. for real definition

We've a moves But those story. your point, And the reinforcing it part Un-carrier to exciting done it's is of this a so, our to eight value extent lot a better. great get breakthrough job story. such now, haven't trained over to to seven about engines big we story, years on our a And same the network network and me years, with that's past have innovative same we phenomenal just proposition.

attention to they're high-capacity their have to TV. going these iPhone going jealous XG one XXs megabits with going to people our actually are hundreds highest-capacity I they're going per with are have and million. got that, As find XG, highest-capacity, friends their second, to be million to consumers to going on XG. with story but -- and million the only that right of finally At be they're overall time, now because going about, going standing seeing are unfold XXX and to pay millions and other is XG, reality T-Mobile, nearly a stark people XX just going It's the XX highest-speed still XXX that's be talked that same of get of to guys million on our not -- we've such are

confident opportunity ability market of brand and ever a to marketing, there investing our those that's tailwind want a how before advertising in by but an history. Mark combined. our about Right in Even talk those doing? versus the you for forma to our you As some now is Staneff, know, pro improvement. way, cut is synergies We're investors, synergies is and brand mostly in T-Mobile than net but around CMO, well, here, Matt, more mostly for already mean progress. in do equities, network the the

the brand going credit in great to about how way. the success and asking the get remind up we a as you we're be that market well, right. fact into It's quarter just so to want our Yes. results. that's marketplace. years, off is to We've sequencing such one by in we've for I great in I at an at where the The place for important. two hard delivered since love you're -- network We're number question, coming been the brands just folded have. a we getting of work these been postpaid set that amazing

messaging, and network. I'll XG extended exist, our year you of in been nationwide the going with bragging is a early something thing for there remind we phenomenal weren't out with about other XG a right? coverage, The Neville was, out days that didn't building We've

good It's soon. set are the good message progress showing And stay and all to you and with a We've the incredible us. waiting get So so our Early surprise even marketing, as network haven't story, won't us in have we All coming the leading -- yet than network know ever of been the progress very up we disrupting have, the moving in seen marketplace communicate started both long well, [indiscernible]. as you great we coming, I really tell. I for are value to it's as well indicators and telling marketplace, clearly to have it's as see coming. we customers very prices gotten and everybody, more history the Mike indicators we tuned. from success. I'll you are and remind already the legacy innovative want being are said,

guys. Thanks, Great.

Cool, you. the go to phone Operator, the next question? hear we back don't why for Jonathan. from Great to

Certainly.

Phil Cusick with J.P. comes Our Morgan. next question from

guide, for was for Maybe are Hey. worry competition customer done last? missed about -- how Do could Thanks, talk the in the customers how of more some my a those thought industry lot view of minute. maybe aggressive quarter, you just the rationality following your year What if you the Mike. T-Mobile queue doing well this in with you Thank thanks Sprint a base? which the more I about as can says versus I about base promotions market fourth -- see about from there down? you churn the nailing talk last here? And you. than you few the then months? has the over that And but

You from I'll to and first -- this. It's great you if hear ask in bet. you, Phil. look -- all, of pile at Yes. Matt to on I

feels see lot margins. because If you promotions like lot the the there it's look like that's but it's a a is changes big last phones to some a a last us are Look, they some really little intense expensive actually obviously, but look at quarter the around the in promotional It year's. here. industry, we and speaking, There's generally from underlying the year's. fourth environment -- because a Apple, bit iPhone more

trend So, there generally speaking, I concerning. don't all at that's line see a

trend I'd believe churn, had have at X.X% year we last industry postpaid we the love We line year-over-year As without is forma you we best far. by X%. a there When Sprint churning Sprint the blended about. that phone to look at this churn pro talk delivered, churn X.X% it to in was is about relates now a combined, performance remember and

performance and to very blend one like it significantly we underlying from really of there thing, it you we disclose starting that separately, are shows customers the course, of don't this great benefit delivered man, it on performance, it although all together a So, Sprint And kind blended we combination. that's as and good. well, T-Mobile side,

our And have room for performance I performance: thesis T-Mobile know that $X.X X.X% our new of to say, tailwind growth see billion to brand to with delighted. delivered X history best have in year-over-year get run. the churn investors know best we net EBITDA, we a financial down simultaneously in we X.X%, how additions we're million quarter I all down. though to have you because with we've even doing We with that as that churn and also shown churn delivering So, this

quarter of what's tailwind let's I is you're talk talk about from So, happening. that's our want potential not to promotions everybody is think know out I But curious a you're want the I misnomer, Matt, what it's share unfolding? seeing a a I the there, because about about and happening story. know going do marketing to think, bit what's the you great as on But to only view it the one seat. is

and thanks for question, the Thanks, Yes. Mike, Phil.

on reiterate things quarter. has of historically -- couple in the than happening this couple more spread later said, cycle different is a it a It's a it's of been. One, There year Mike to the iPhones things. out. it's Just

As customers know, to a loaded offers tends Black the tend QX Christmas. back-end to and bit Friday and we for competitive to get show to more when little all be up shop

you're on that so, And you're And already offers phones more the dynamics the what announced. and were we've schedule first. changes seeing bit launch announced is in compressed little of expensive seen have a seeing a and the been

a new just starting even pre-order iPhone. tomorrow have We on the

and again, I'll and speaking, the case got are the -- like marketplace QX is loaded, we -- We're the the at to up speaking, you and caveat. very just a why to succeed you quarter it's the same got retention the offers very at versus marketplace. at the marketplace, the game out at look positioned evolving an We're very with the that of we typically largely back-end and a one offers bit dynamics. But iPhone and true to apples-to-apples and game it the succeed are. and offers you of momentum share. dynamic phone and the more early more experience, you when the as is we there always continue a plan we've an when just And we're said, think comparison base plan network look disciplined it's in look Mike here well to ask in So, -- think, launch. days set aggressive win good I about our plan, to the There's remind

--. are offers that some has the Thank retention been you. think I fear aggressive

No, going. Keep that's okay.

a little pile Yes. but There on you is a bit. going latency, were to

to opportunity seen less down in industry aggressive going weeks? of couple you not of you would would more of fear Have last opportunity porting in porting see. Clearly, grow slowly. that the the that's some and say retention what offers was sort sort you nail the I was the

switching you muted. is of I span QX, switching what's Well, in well as if mean, the down. as is look happening across QX,

things. of of You executes. underscore. down. find a switching, is to in than just important We seen One, in think discipline. our highest anything, Every at this churn invest for a was growth try just really seen and a two and and see We've think Matt model really We environments been environments how overdo We've the what I with long saying, team to got proud switching this. more flexible a that like with our intense just growth team muted, not highly that. this as But it. we a lots delivered our because quarter. is to we're time We've environment, very company has history And post But I share-taker. something. is way shows, muted the we it

Our them the period, is and performance still real a company is as a model those unlock great financial deliver my growth remarks. able two, synergy-backed value And that to against executing the synergies of and in said I benefit being in prepared at we're because execution. and invest

Mike. Thanks, again,

Cool. All right. Operator, on we're roll. a

see to he And what and going the meanwhile, I'll Twitter scan Peter keep just Let's sees. to ask phone. across

John comes next with Our from Hodulik question UBS.

Thanks, could. if Two Great. I guys.

just service. virtual on then Do for economics the your if do could of of think sort may product? First, Mike suggested that couple churn to What a expect talk packaging TV maybe business? profitable? media change. companies the about the a you it Is positioning do you Could of little be that bit the it of And reduction? sort you for offers around back expressed those some push the today of and new

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So, operator, who's next?

Rollins Next will with Citi. be Michael

couple of questions. A quick Thanks.

In of in seen Have to Sprint because assets may you've for, now. be could marketing I bit core to a any your leasing? or secondly, assets a in your the how had responding? traditional new opportunities you of with customers you're plans to possession six more monetize future? moving happening not Thanks. progress to device Sprint if EIP talk over you curious And some your over then customers program? guess, And that the what inside now First, months what's the doing about strategic are

then about and on and that, answer turn assets. everything to Staneff Sprint to we'll -- your Matt Sounds financing, great. and Well, going with I'm about we'll the Sprint device start happening leasing with question

Yes, Mike, question. for thanks that

want the the we T-Mobile blend retired other want at serve be products. to beholden to And also offers upgrade. making over phone with upgrade we're to seeing that, good. to a issues in them still to we do base and we done So, and going is on to opportunities It's in time, closely promotions, we're and August to they and I is of what We're in more and what manage did way. come match the used it's success as think T-Mobile it customer and a for the using we're the models continue Sprint and used -- that propositions access to Sprint we Sprint at and be that the Great when by side customers success there was ability customers Sprint to but when with for have T-Mobile as the well when lot as to terms with not up of as the opened at base great of brand, value really blend to upgrade. legacy early and but the T-Mobile, in the continuing match progress they converted within to August X, to what we're actually a we

great. and Okay,

Matt. thanks, -- other piece the On

that say On we other great we some capabilities the that early it's inherited for know-how this two that but any I of can't see fantastic. and question, Sprint One, on announce you the things. the piece, is insights days. and I'll in team

was really and former financially. a the of standalone with challenges capabilities You business can't this by That results evaluate of Sprint. company structural its lots team

it to have was That's it to totally operation wrong. so, easy And side-eye didn't offer. assume that that much of and kind

been that gotten into it, we've begin the we've practices combined there's adopt into that many to best Now total. to blended able so

also there capabilities. are including that's and businesses the some your So But very exciting, team. to question,

capability T-Mobile wireline standalone a that example, never had. For

look So we're plenty taking of a other things. great that at and

sort can't at it, that be give though. question, appreciate it. we're to report, on looking I bring you when process stuff sure to there color because but of I unfortunately, So, are of a we'll lot the

you. Thank

the to back Okay. Go phones.

Walter be with will Next Piecyk LightShed.

Thanks.

Hi, Walt.

And First And of in on all traffic and, you The later, sooner happens will -- how synergies first --. for what's than going hopefully, pick number, that Mike? it done question Neville, Like I just Hey, get many terms I know, on guess think survive? that? when of this can quickly XX%, is think in you're up those about the how XX%? I is with timing question overall. all XX% Sprint ultimately a we sites what to don't should for

XXX%, a that's Walt, My number is favorite the goal.

please So goals. don't reduce Neville's

So how quickly can Neville? to you XXX%, get

I can't see hear but you you.

have how been? you So,

Good.

The be the capacity effectively T-Mobile XX,XXX, and XX,XXX both doing we kind Walt. see deliver the that for in And XXX,XXX networks coverage XX,XXX would Sprint target the sites, obviously, changing, XX,XXX with into and/or to the XX,XXX a opportunity the today, work capacity Sprint well target those we're bring about years. are over sites networks decommissioned XX,XXX network that sites of I this the on So, over network, on over lot of target would sites range, materially we numbers across coverage. sites. don't leave but -- coming now. to we're And that would

going want to bunch. add We're a areas XX,XXX add some sites. too, we are to range still XX,XXX to where today. target but We've we investment, So, decom right? That's where we're got going to new some

coverage that need the growth this So, make to everything very confident. understand deliver to we obviously We're we sure doing a lot with capabilities along XG. of work fully and

base. really Walt, at of XX% terms postpaid we're I'm on traffic and I pleased, the number, months traffic six mean, we're in that In already

And that's of months. a have that made anticipate we'd progress remarkable. in I much weeks pretty really number didn't and short so,

capacity in confident get to rate, of XG this massive Sprint about to all done to in, that's LTE But time 'XX. Mike year? to to really team hope commit million clearly that very run So, XXX talked all plan track, 'XX. the run and I delivery and to into and goal on million the capability goodness And at as that XXX in we're about. bring migration to it not ambition that goal, people foundational phase of on into about base say, customer get XG well a the XXXX. is huge will And numbers drive say this T-Mobile mid-band of going be execution opportunity. in and going and we'll going I'm and that the here be on It's next we're capacity alone. to you feel is the be XXXX. where year that And this customers in look to you this we'll talk we the

just was, the a back. and whenever So, that our that with well. confident of we in we've number I'm short put progress delighted I'm all things year or are in so very beating targets out moving a that made months, there very

grow are So real at very volume that on pace. continue going to things traffic a migration well and will

similar And similar a it. topic… a just -- Got then on

we a give site the follow-up, As probably count. you quarter-by-quarter

churn? going Mike, happening? Sprint we traditionally you just that to more are that network, even of their have an Is we it element though customers traffic, still so the like those the was thought there. in follow Sprint service Sprint customers Because only on is supposed to how churn -- of there's if to -- about than about mean, XX% or that such network? network important are -- still traffic of think being if important XX% just still I onto but levels, if is it's I is got the down why T-Mobile customer

of obviously, for things I elements Yes. both mean, unpack A couple to important. are you.

the brand T-Mobile then a the big the secondly, the versus of number, on I yes, you First that directionally Sprint, Sprint factor you so is We're you just And year-over-year have unprecedented fantastic brand. to disclosed can over we all, putting piece side beat that blended. isn't it's in. just of to in picture. some the big just tell of it there all didn't But for it sort T-Mobile

going all, that of a than more lot First just network there's on in XX%.

Net The secondly, The care experience way That's the since with care traffic. board, the seven just now that Do great. T-Mobile they're past responding. across of you not But provide experience, Score months. by it's important. to Just we're is and the a them carrying know offers, We're some over improving that's for that. the NPS? the on than the fantastic. did care customers fantastic we bigger it's starting -- network So way team we of tripled started has them our treating Promoter caring equation Sprint

than are customer So, a year-over-year over course, is lot carried the that on value improving, improving, XX% And a of helps. is the right side, there network experience to and is T-Mobile more just Hopefully of the there. circumstances beat of the improving, then part that it traffic. sits big our

Yes. Thank you.

Yes. Okay.

to Let's back go the phone.

Goldman Sachs. with Feldman Brett from comes question next Our

actually Thanks want not follow-up for you you a a remarkable asked lot normal promo Yes. the see. [ph], the typically that's ultimately as this the question. of And would said, yield that earlier, on being you that Mike the is sort this about, to made point think taking iPhone year. was I because

launch following season during yourselves, device industry is market year so, the this interesting. And and time would a a the normal of the you to the like TV, approach in very normally way

are are they you, Thanks. So And then to And benefit on in increasing towards permanent bit is, extent a is activity do the you is consumers meeting the are more stores? the you're starting Or that there recurring they they in normal way? digital walking their it back muted, standpoint. way? as said might that are you old-fashioned the normal switching clients transactions responding it, think promos question have see that that from maybe Or that evidence with cost to responded and a a quite the to engagement not customer shift still doing to yield follow-up again that, just we're the over these time?

has Thanks, in one and digital, I that's willingness the all in Brett. so on not things carriers the certainly of Well, digitalization invested haven't that has important, because more is from consumers, great slow, the because think capabilities. that has US been I we think for been there been stubborn

adopt app they If slow wireless, be It's what of to accountable theory be that My because in the we what do phenomenal, it want financing, them can phone it's to out store the the you somebody our trade-ins sending of and happy. for and is, to it's it. because offer, all customers you specifically. complexity in to in been etc., have go

And so, that's happening.

are really team I go well has far, is the of the much into It's to And And the watching It's sentiment offer. the -- that's have exception In dynamic environment, mentioned, to very you guide because us. it's of holiday-centric November normally consumers we and And overall well COVID. a pretty of QX game were with responding right cautious -- terms in just saw our because back unfolds, like way our a it. so little confident, know the days. say around It unknown, rise way and QX yes. you and a you gave quarter, QX. muted I in COVID but -- But the of not little last competitive consumer now bit great early looks cautious a it's to cases to terms with plan quarter. uncertainties on in we're switching we're year got it so nimble the what so we a unfolds. early a we QX. I you'd guide, centered we've muted it's

can't than the environment year. give much than us, too doesn't different that's that unfolding, I to overall color competitive So, it's look materially a because but more quarter you last

that. for Thanks

right. bet. You All

see online phone. up do the to couple I back popping go Let's now. a

do that So next. we'll Operator?

Certainly.

of Our comes next question America. Barden with Bank from David

around taking guys. of think, you Mike guess, for for much said this I follows guidance Really Hey, it. quarter. things up the fourth question. appreciate on, just for so the Thanks some the maybe the I --

are is going is phone Obviously, flat $XXX for fourth The adjustment approximately us can postpaid kind it guys makes what next million to quarter be you guide? the better So, the color going million puts it's sounds the adjusted $XXX quarter. because this But implied deal the the about roughly about lot of a about that what and of tower some there be you going is EBITDA than be like give additions down to quarter. to straight-line for takes did. happen for

the the It's Dave. way. have Peter we to to Why Osvaldik to from don't straight Glad you great call. go thanks, on Well, for by you, just hear that?

then down EBITDA, the in see iPhone the implied the couple guide lease QX cycle, Thank factors of then as a to expense there of shapes which in to show I right, non-cash you're color mentioned And just million. seasonal Matt right, ask $XXX up cycle is One, Perfect. give of around loaded. little And quarter think I you little sequentially, QX, But and aspect other you typical typically with the the typically earlier, Dave. big you give from I'll as the does which he a how mentioned, a adjusted on I'll straight-line progression Yes. says, you, seasonality, is back-end sense a bit relatively there. that promotion is with holiday as QX.

loaded very to then typically turn QX about back-end how going put up, over to customer then QX. on really that's a is pressure from perspective. right, I'll is, it acquisition which So to And of QX to talk the shapes other Matt factor this, a

Matt? So,

back remind Peter kind Yes. I'll the some keep we're even in just and goes this getting. getting everybody, and Dave, we just of of iPhone to this. started questions

in postpaid add phone net and entirety Lead launch market iPhone as continue some The phone for pre-order through are and growth there. of not growth in QX. in the retail, We overall. iPhones. market. the and QX digital fully us always -- window a we're some of business do traditionally purchases So, to postpaid quarter. the buying loaded the quarter lead historically, we from QX intend, for heavy often have the device is that's shifts been the the is we is There anticipate back-end an to shown

So, and terms looked out, we absolutely years what might expect prior of in have I which as playing it our builds with how in MPI is the different see that a we through intensity consistent maintain to competitive cycle, guide it call QX. through the little

our the from this very as well point you some a exactly stronger, as And And come a appearances a so, while of we're one there. whole, year-on-year on look when it's have off view quarter is have at network and in with in when the we get that the see especially positioned iPhones thing, amazing great see to think we're we're and outcomes, experience to this succeed going you these some hands customers their might building.

contribute? And what let's kind the integrated are T-Mobile at increased going services the Which That's in in interest Twitter business What it to it one Haven't only way, find well? it conceived is great, performed while, recrafted Sprint with the how So Roger to And Not we yes, yes. Matt. program I'm questions so a and developing. year heard XXMillion? on between a in -- and hear great Roger By Bill Project started started the schoolwork best to there using do areas -- to and great question. answer you of see gap. also the Business. So because free happy from growth has Bill the originally you to that's share, hear did you every Business gap. go some now? great says, traction? from as I'm to have it. products verticals instead could subscriber short Great report. throw homework legacy the Also, Ho, Thanks. are always sales at next And let's is, Mike offering all we government? we've T-Mobile how for have It on are was a this many from have invest but down households totally says, Could if Roger. a consumer you force you. Sievert, Entner. break you

we at So, originally was actual of Project piece we can what including quarter. accretive school and that XXMillion, subsidized this It they profits, service. up to revenues Highly if contributing. needs to very and plans to unlimited And price. highly paying still attractive increased kids from have a a benefit an subsidized -- sure added anticipated, but that's even versus make big numbers contribute to actually really our

districts. at than public seizing nimble was the more team the and rest really and I industry meet faster way think unmet Our to school of need of this a sector

to So room. outside Business going, little a there. I'm plus the hopefully, for just how's very on he's T-Mobile that, it proud color toss for But the going team. of Maybe,

Let's Katz to go little starting bit see phone Mike for the I Mike. see a to on I on talk. him more those.

you hear Can me?

Try Mike. again, it

hear me? Can you

we now Yes, can you. hear

because their need in program thanks hey, announced we with and the with said, in fast. quarter, virtual technology. from Yes, really a going the live to perfect. like start to demand just Awesome. to environment Okay, started Bill, got I'll QX Roger. go Project XXMillion. And Well, classroom question, connect it we really the Mike for the this caused us kids schools fully while

Million created kids, have kids great first customers. we've other the X,XXX many And cities, also of students, the have So, states, projects, many, big us for to districts school many, for across of many across demonstrate in connecting -- trusting this space, And really jurisdictions they're where and to network with with of opportunity T-Mobile hundreds care public many, we some the those amazing way commercial translating been in giving us opportunities of into projects we an is which already both sector. take sector it's over for this public important connected. date, for opportunity around us most worked country. it's thousands the

I think, Bill, to answer your question.

this of great about to none, relationships. last time of that this seen especially off seeing enabling them network, team unleashing day we segments. Business. for of at now and bringing And was benefits the are team, for An sell really doing incredible absolutely into benefits talking this is with team T-Mobile for got we started T-Mobile us empowered set that. them with And as XG network pay And the this at a really us remember move second call across one our we've them Sprint. synergy had the we've we over, how era. You There a [indiscernible], fast great to

So, which a both strength lot in. companies is of companies that legacy -- segment both a whether business, small had it's

matters and in across testing and us, during front small disproportionately Mike we're and they're call than better, seeing story momentum of that the to us starting to chosen we growth opportunity and oftentimes government, get there, the biggest Their mentioned the service we see business, particularly service are particularly the of in services. businesses getting deliver. in enterprise to and they're but our those recognizing opportunity getting seen And to share and groups given lot we're enterprise We is customers, tell network that seeing the continue demonstrate two can our have is and a our customers action government that really more where in not we've see. when

team quarter whole for just the amazing. all-time to congratulations record TFB an for Mike, TFB. It's

numbers, there in Project yes, districts. in Project and is also our it's to course, but would none many not so, of of is a the that that and so to scale -- nice see free our by out volume as size -- helping difference school just And make with network. subscriber, was XXMillion XXMillion reported be the this school Company of product able kids way, contributing the That,

lower, the you, so Great deployments Will or the proud equal greater stranger hear from no it. this customers? Jim it on enterprise Company is T-Mobile this that for by low-band first XG experience start Jim will accelerate in-building at to an Jim. their I'll of to penetrates way. How one report. all, to we're Company reaches says, I'll and Jim, of online, TMUS great of from Company, saying, remember, existing to provide Patterson towers ensure or in-building cells just So, the further turn coverage? makes towers. small different better, by things Neville. rely that, buildings is our so

us. and very, And buildings into put very reaches meters macro a miles not that's mid-band Our from differentiator can high-capacity the experiences network. for

doesn't but We reliance are. to mean this, we're a it. So, not certainly less friend it we have on

do you want a talk to So, bit… little Neville,

see quick. Good Jim. you super to Yes, online,

mean, space. big in-buildings, Mike have that making which got have the for difference XG follow is in up. right? spectrum inside-out. to spectrum, tough we that's volumes were low-band But absolutely, able really customer I environments, after and for to XG are There from we've not but just all really part you For this experience. we heard big, good commit sets there mean, position And I consumer. XXX-megahertz go us enterprise do sure, more the know on we to enterprise how a a to experience for of you our which outlined

at a the wave applying Those I'm interested that Mike's was of ramping are activity, team. Mike Katz, activity with all traditional we who ongoing yes, super on, in solutions. spectrum. just DAS, lot in So, looking with millimeter collaboration We're

where it deep on comments. to We're sure XG environments macro that's of outlined make to and way is frankly, quite, We mean, out sense. in-buildings old one just great is opening that millimeter use enterprise. attack cells have going in to we'll to experiences millimeter especially on-street for there a network in-building. millimeter is for and an is a quite And performance sites lot to Verizon the and experience from look to going as that's we're wave the a going outdoor and and for the that And nimble spectrum build trying small those makes opportunity there of Mike wave be great I use frankly, us wave. that indoors, Poor with

though. I about great. Sounds nice it, was

Neville competition. slay he'll give you enough If the time,

of we're I ourselves the hitting and more scheduled try we'll So, two hold do out sure if the on make want people know I time, enough to we to we're brief that phone. of but because be

final questions. and let's operator, the So go to phone we'll two our do

you. Thank

from with Craig Moffett MoffettNathanson. comes next Our question

the just having. services were you maybe conversation wonder with I you. Business Thank stay we Hi. could that

are process see in What of and the customers. You getting enterprise in talked IoT? particularly government And drive and the starting process decision-making to of latency based is customers, already about in expectations sales the what are the market? on applications, or that applications it enterprise around decision-making front much is the being in How among, sales you and XG? XG

there it's connection -- we're the Businesses interesting them not it six premise close -- on question, got is it's right I'll we be run it But to network I it's you're to Unlike with this this you And want especially have. that scale things in to of it's we're When right if the now -- ringer Craig, on and perception who's know results be door, what? this The more the Because plenty stuff. other in what for working was think pulling customers our know right leadership phones even it goes from is, XG our experience? and consumers connected they out. And away through the need smartphone. driving pack. to now our out that business instead your yet answer best on. winning, common. very new are not first employees the one further and especially the reliable our and they and us than we're What's we're of but really then businesses weeks the their it now and tossing ever high-capacity coverage do contributing getting They'll network. around able Yes. asking that They reliable, test need that's unlike and just to they be consumer they consumers, the XXX capacity and check when decide. to premise that what's applications. that now question offer. because question centered driving is of at brief right yes, is of That's high-capacity necessarily business

Craig, quarter we've of our just of team up in of for ahead a them, stay for the about is LTE. for are anything to leadership, more on is kind to duration far TFB. how the posted of just than But but as we we the the premise so question, XG real how the on history XG your caught really So, this we story and We're and -- are, era. said, network positioned Mike well ahead story biggest proud

network need are so, when the looking is XXXX to want really and And be preparation? in these now to customers out enterprise 'XX and services pre-planning going and I for I'm on my T-Mobile

I that's now don't sooner talked with they I time think what's driving Yes, than our driving frame our business. business doing that. about. of right what's are But the course, dynamic and that is

contribute that of additive And to service think a reality, of out What's low-latency, to the growth. XG front. that's to still a the when so, network, in we're our picking lot of to contributing is a can our things somebody going and we network a for with partner stay comfort relates they right in virtual enterprises, those that low-latency all deliver future front, services, in can comes all augmented as the reality, things high-capacity, most high-capacity are -- experiences, things be automation in as a space. And they out to lot now the we're how can that understand I story that, it it

Thank great. you. That's

Okay. from you. Great to hear

want is think last frame, we be be respectful I go said our X:XX. to what Let's question, to I right? going Because to time the

to go let's operator, last question. So, the

from And with Flannery Stanley. comes Morgan that question Simon

had Great. side really impressive fitting great me pretty but was Mike, side, postpaid whole wasn't cycle and on Thanks in. iPhone industry results, the robust the prepaid the both subscriber in for which numbers new there that some given a on QX.

on any they So, people, more on be maybe using second you sustainability on other environment? what of the it the steps etc., So on Thanks. update money Shenandoah sense are negotiations this next this the color And would of that? things it and Is some not more there great. timing spending devices? and see? any in any younger Is

industry you leadership The always Well, to the also When not to again leader, very able Sounds about. is number TFB, in underneath a saw reliably call some you underneath focused then first do different look have centerpiece great. performance report. you from great. grow position, in that something saw on you to strong continuing the talked the so one, by leaders including on postpaid you've relationships phones been new postpaid the to ours, postpaid us, the we prepaid T-Mobile our everybody's see great a their opportunities on. look those we've talking time on other, past, leading outsized with adding on about. performance you but People of dynamics, dynamics driven that's which And spent

quarters reversing click all. have do having like So cricket's to into underneath ours. big that our think to prepaid happens really were do the click there accrual into of connected don't at look numbers competitors, with with cars I When that things that's A it, accruals double double in space or previous you when reversals you crowing lot and are too the strange gymnastics. what some conservative, when from you

In fact, I think they reduced.

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able a all tuned this that That's no So, was look you're you call you again XXXX proud ending thank I'm double to with Listen, Really of report in. great. for the so results comment. our to guys, so We're for on stay we that. the the post. and you full-year talking clicking when everybody. to forward longer with Analyst conversation a Day, Company Thanks,

Absolutely. tuning for go and close call. Operator, ahead everyone the Thank you in.

this call. the concludes U.S. and T-Mobile gentlemen, you. quarter third Ladies Thank earnings XXXX

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

disconnect, You have a may pleasant and now day.