T-Mobile US (TMUS) 3 Nov 212021 Q3 Earnings call transcript

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

All right. Quarter Call. Third T-Mobile's to XXXX Earnings Welcome

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

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

the Our as between and other not discussed the historical XXXX, quarter results with QX and to are now I standalone earnings of be Book related would to documents section that Investor and to let prior results that, results can prior period like the release quiet Investor like well turn that remind of Fact Relations found for everyone now Sprint. it me to Mike. T-Mobile our will quarterly we the I'd on over to comment on XXX non-GAAP note, our that on merger also today. results, With in this second to represents call reconciliations the as auction GAAP website.

ever. XXXX. it's for everybody, our And Thanks, Jud the this noticed, our exceeded stage have integration targets share even at and is only here We've be our as might not expectations, stretch but of quarter's to team, great more hi, so results to this you you, Wall entering than own confident with we journey. home Street feeling are

bottom new across we success, is our we last that year, profitability, end The and growth, and network end financial increasing And merger to unique of that pain and point in the XG lead combination T-Mobile deliver just we network as This provides in wireless already cash positioning contributing differentiated and we've differentiating we since been in award-winning truly the creating the long-term before in other our best our T-Mobile best between combined trade-off the We me in the profitable implications. position when said postpaid customers, Well, our the merger. said industry we'd are expectations, service fairly and postpaid unique un you. you. and to let with every would And That closed value be to about points. counts tell may results, on growth. choose age-old assets that solving board our net XG the the adds have In our of Only has again all. done closed with once as playbook -carrier proposition, plans best you where in best is growth This remember today. revenues, era that done and postpaid line. never QX, problem guys we -carrier, of that we significant pain market-leading it service. with meant a the uniquely un with guidance quarter having the that the assets from ways and revenue top-line about biggest at terms customer flows is model priced that the and both. unlimited In Again, in synergies. position and

free flow We cash industry core growth. growth also the and lead EBITDA in

because understand adds than our net leadership highest ever the and anyone. And the markets our that are a of X/X areas driving markets. are still our already up growth. we our adds very contributing really organizations of better innings build-out in distribution Let's of rural talk accounts and about highlights board. expansion and Smaller In enterprise, all and smaller are few early across this ultra-capacity brand of in we're the new gross equities delivered XG about

other my Internet, XG net highest-ever and than territory. adds markets. delivered adds from came back Tableau I of In that right. promotional have about X/X the For cable urban you of in environment of industry, how our and our also suburban understand to QX, is raised recent net growth. questions Verizon, in T-Mobile our many and uniquely high-speed words, and more point positioned about industry source All sustainability the we Coming on

really actually matters some question And have whether XG to consumers.

sentiment for this of on believe and healthy peers some. some that have actions is our do understand a the I may of I category growing our industry, While soured

and is I'm customers view on purposely sharing how these addressing all T-Mobile's and head-on focused today, my differentiated, position business. perceptions and So approach competitive for for of our

in sure healthy is T-Mobile, like competition. start of I'm question I've Because customers as Listen, first when it's this mind, said top win, around. historically we we actually intensity The industry. at the promotional shopping before,

in decade we're plan. a In [Indiscernible] positioned putting to running merger years And on therefore, XG from ahead all and Our that laser-focused significant This that time them a significant why of stay because we offers compelling customer a while XG XG, place we churn we're, they off Meanwhile, competitors and of possible. integration put huge Sprint quickly to and growth is and factors AT&T embrace our as T-Mobile. it's everyone we our imagine T-Mobile of XG three of have Every out we or opportunity leaning take of generally to, T-Mobile is have are device know, customers, the all else device better people are to offers, customers go that can't as they're once I pay up unlike buy-down ahead. get that sell don't we explain to churn so coming at faster time. on you to And they device with in schedule. devices Verizon were which because XG all way, much temporarily come what customer's a into offers take in upgrade customers or completing hands a of the our under-penetrated to notice so to a and some, competitive ahead stay bring secondly, they We're experience strategic. in opportunity can't difference device trying for are I even though pricing have, promotions signal network as from we're or to their to they XG, are can contrast, they unlikely really has, expensive similarly most device is assets works into along. to XG. advantage. ahead we networks, big that this on are find leap up while a their speeds push to way fear competitive like we abject in on a P&L works Listen, as as a XG ahead And

just from of And XG customer. case of device customers up customer of expense, half right phone they're Every work those future average. XG they to on most devices realize do their AT&T T-Mobile, the upgraded is future a into that a Balance XG with upgrade XG T-Mobile competitive feel new racking they time every works XXX more to that did playing capacity take of to better, one our billions strength time at customers dollars and 's Rocking country shiny At than device, great their fortune their XG fact, it. a a phone? on speeds How demonstrably today. those potential impacts spending home, In when of like a per Sheet. being reaching ultra megabits to the second it XG, only

made, easier would such in The in be industry. under-penetrated this as cut new accounts T-Mobile a diversified customer to the recent industry. etc. that's or chase to to of source industry unmatched answer lines. in transparent disclosing at our do is know T-Mobile, is as growth second being has question accounts This One I what way What the opportunity was markets the around is are and one adjustments everyone of if growth in instead look and sustainability as that to

opportunities and Our accounts than in did in year-over-year. the XXX huge, XXXX. difference our Verizon postpaid that years, our Does into million advantage era, We're of with account QX rural and thick people, million growth land disclose familiar? while with AT&T even A more capacity others million competitive year-over-year, We see smaller markets, suddenly accounts much a is X We're aspire what's people. coverage areas. big year-over-year area, the the in Un this as and new XG up -carrier QX while by network X million accounts. net toward Listen, cover rural million to markets ultra growth end integration. us and time a and in only are value as people in should. we XXX XXX times of XXX disruptive It combining march by customer net XXX giving America markets between geographic areas. with the we X roughly more in which best significant ahead, we The XG the service. stronger smaller new a covering no leading in the account didn't highest sound to had And doubled smaller

and the just markets. combined areas exactly last playbook that That's and number we X we're -carrier took experience. a the smaller in the competitive We're in few bringing to network metros, same to from the X Newly value markets, not in bringing with network. competitive customer number playbook Un except ran tab major disruptive rural the the years over us markets smaller

position one, superior a by just network advantage not to And run. forget advantage. anchored room major not We castle. We're in bring let's current having to got leadership markets, to our is perceived goal our a have that we as Our XG. in our being without defending

and all another core, these are postpaid well-positioned paint win and for private and appeal with executing services they plan. on In capabilities is speed, come rural with that built-out enterprise. for larger leadership that have XG up, already making services flanks share Now, in that a more large our the has anybody, opportunity these shouldn't And competitors well, traditional defend markets active primarily when to line, network and network, like show already only you network new which for to with We've trials heats already share are advanced opportunities and markets, services, big And enterprise and XG doors. already little we where growth widest who customers as represent we're markets demonstrating we remind outsized the have opening capacity. say and as government to and me XG differentiated. the today. I smaller seen increase make reach, mobile XG exactly in competition They're for our in the in enterprises with in in XG tough opportunity to better value. millions in they're areas you, broadly bash to all let it Bottom to many XG standalone T-Mobile an why our them distributed T-Mobile the edge our to advanced networks. to upside capture us is and compute advanced but their brush. overpriced it, with they this, not a it same better clear are real profitable are shop

What one. future brand, phone that love straight a to set out our As proudly through the postpaid to that our on delivered industry performance success. signal growth part is our relative I growth momentum. out look our Magenta hear pre as the slowed record net there this highest misperceptions I'd debate, we adds QX. has of year-to-date on -merger ever of T-Mobile's Magenta And We

even history after transfers the we're With force Company cylinders, strategy in competing the working for all in and full profitable, churning base. Sprint Magenta high now. is of on happening firing ever also our result quality, integration and Magenta, year, uncarrier into smartly, This industry-leading rapidly highest normalizing growth. the business the higher through we're Our Sprint is

right base, put adds Just the else net the perspective, same QX are about X.X them down been potential in work it as in in That shows Sprint Magenta as our churn our million to way would've journey. our for churn we future adds ahead to that tailwind growth base engine we the to get point levels. industry. Sprint if this to in had to And the anyone where churn of phone gross Magenta least reinforces be, this at our you want flows our

X/X compressed very executing are so that of customer of churn migrated, our our the what we're impacts, team we're Which to us. full temporary playbook the others integration continue we finish we have made have experience to the execute Sprint elevated that way frame. how temporarily being from benefiting to partly ahead of schedule. With I'm see working is value does brings time encouraged by behind make the results, from at particularly While but customers, forward frames Sprint proposition. T-Mobile over the a customers, Sprint the get migration in And to when least all to both short-lived. today, have and proud done business benefit the of integration time this

As media articles customers. XG, they Magenta par be gears. consumers how similar and commenting and on the analysts XG seen performance. Changing availability limited notes and on with have churn already some between I've indifferent should given

a differentiator. are While their of they're percentage see when high AT&T and them more distinct have customer absolutely XG, only benefits and At big are deployments. of a likely at right early from C-band nor seeing look geographically companies Verizon. T-Mobile, is benefit their they distributed percentage small customers Those much from and bases a a XG to

XG within the people. over XG of fact half blazing fast Here's enjoying a country, now XX% area XX T-Mobile coverage times around faster over reaches that are customers XXX ultracapaciy of speeds of for than fun our you, XG. Well,

matter and AT&T customers. in are Verizon areas. to XG is and percentage demonstrated this their T-Mobile's customer what really see beginning We to leadership the Ask of -- of several in at fastest And bases XG. T-Mobile their footprint

see where than customers. now or in overall network future XX% year-over-year our reliability we resonating is The other potential is higher non-customers, network perception words, for and over to among perception first pulling, leadership our area increased AT&T. has According metrics in

down, scores we Our scored taking year Potential notice recognition the flat matching to times XX% leader XG are Verizon from while over XX%, has customers among higher of AT&T. and are potential than three a Verizon, as lead. our customers ago. increased

guided from a is which unlocking that's engagement the gigabytes The XG continue communication, not the a month month Verizon this taken differentiated and of applications, adoption is Sure, app differentiated address take that some mixed industry And be magnitude earnings owner's is the more smartphone cash the They network be an is tripled that our guys? differences in new potential CAGR economics. maybe industry want for metaverse guided a flow. Cable world, potential, rates XG creation cable I at we belief based of also network, anyone from to best rates the the the full mind some wireless our in aspect The key. are XX yet TikTok this there XX is the to from experience on of those MAX, choosing just see and fact XG unlimited best today. of service challenged this And today. that off customers average And usage on pairing is of the limited, ready, are model. And is to our industry reflected. EBITDA. Magenta this final killer time, of experience primary roughly We with smartphone. on offers way quite expectations, conversion not hard gigs market From the average calling, the going. see industry-leading in might their cash advantage using value but unmatched to the in using day back significant that the Verizon. second Company free value on the without our by all did XG a are be cut the seen customers around have in to has and free aren't of see the Take XG mentioned, will has they and XG experience question capacity suggest perspective. emerging era. XX they only as a I that but the should a and the taking we there with that XG first a when end of more into we've of offers growth and support Magenta significant they and than smallest gigs to so-called geography synergy MAX. constructing From real video XXXX. of consumers reflecting revenues T-Mobile automatically in quality and shareholder you deliver already valuation Never pressed plan will it that XG our T-Mobile's a That new in AT&T quickly barely XXXX MAX spending cash throttle very and measured of their means plan would exceed is short not half where promotional the to a perspective, of industry. current the flow, this now are our network. that reality XX% because reinforces of smartphone

I wrap Before I to do last up, quarter. we on cyber-attack experienced the want comment

today, reported with after in our unauthorized T-Mobile of and of complete. and we cybersecurity the now As our the criminal promptly conducted assistance closed previously systems our we customers. against a located we updated filings this becoming That's And leading world to investigation, and cyber-attack forensic access aware experts. to

we're to help the directly work a our Cyber and team into partnering brightest our We customers this which customer's to further and throughout respond support for and also further the the Mandiant elevating and our why our to like with building protect I've cybersecurity a data this in mindset it right. a to forward this Transformation is and of We're we've incident. to extensive priority work our our to us efforts do process. me, top number And Office, reporting steps Protecting best a and taken cybersecurity security undertook Company, accordingly. culture, KPMG is enhance created practices

cash of extending us All financial to our we best further working and turn quarter terrific and and merger growth win absolutely leading is our industry-leading hand how before XG our in highlights I network I express lead years synergies am strategy another while over the a the outstanding for industry ahead. the right, increasing postpaid our team. EBITDA, guidance, We postpaid adjusted customer the to revenue, to want cards have few Peter, it expected core service Overall, proud while you. year. All postpaid Peter executed I clearly Now, subscribers. growth and delivering flow. this free over take through to in and of to

All Mike. right. Thanks,

our in executed QX results board. see, can again across winning we yet you As the we expectations exceeded delivered playbook as and strong

about account net doubled adding start Let's adds we year as adds our talking a that in Mike mentioned, from And account where QX the postpaid growth, net for ago, X years. XXX,XXX. by highest is

journey, continue will flexibility the to family on to our only optimize a Fitch We with results adds year-over-year. and structure. We shareholder we cash rapid of postpaid adds. unlocking provider based net proud the net industry-leading capital expansion work to on I'm is phone team growth postpaid us the rating. all also provide as service and us XXX,XXX significant our strong record of core high the X and an grow rating EBITDA This delivered significant to industry-leading X% to from upgraded flow increase service million year agencies And growth year-over-year. contributed cash revenue our record extremely investment-grade value. X.X free margins Company's including momentum our in were delivered agencies. And incremental with also of These we beginning of with postpaid corporate the the including just free financial revenue, flow ago national August, Forex further upgrades continued adjusted of moving

raise synergy switching EBITDA X.X net synergies, expected merger billion, between and and and service in with QX. adjusted continue our we growth $XX.X how for momentum which opportunities, activity growth increased expected reflecting be to Let's and expect postpaid We X.X revenue $XX.X are profitable now to billion. to now by realization. Core this $X.X is progress our continued beaten million, Primarily total driven impacts talk XXXX quarter. between additions towards prudent be expected be rapid about share-taking as from another now outlook between higher

X.X% by payments costs is expect $X operating merger-related billion core billion activities before be be Net merger billion. of range and We $XX.X in EBITDA to taxes. between cash including now adjusted provided in to to the not included $XX.X expected

integration. billion does $X.X continue securitization. free $X.X our billion capex cash be increasing between the for to Together, billion material deployment not $XX.X proceeds in costs, expect we a payments We merger-related cash and $XX.X robust XG network and and from between as pace this and assume flow billion of any to results including

prior Our to XXXX to reorganizations. QX entity effective XX% tax associated legal with XX% guide primarily tax rate was state materially due benefits our of certain below

We for that year. for to to to Magenta year, relatively which XX% our put QX a us QX. to XX% continued the recorded more in And XX, effective QX, insurance at $X expect in item revenue device within ARPU promotional rate offset One the products up from Sprint higher is be tax QX contribution. is to which full-year of last and our typical to by between fact equivalent higher revenue to result note XXXX. the rate that in continuously the flat by our guidance now driven full-year we is and a be ARPU our as amongst products, which converting XX% our full last account strategy would be postpaid expect seasonal XX% Magenta expected expand about we that EBITDA expect are our adoption driven MAX flat have phone rate ARPA customers ARPU Both to customers full-year to trending This and the XX benefits than impact relationships. of I'll from

wrap I on to there. to come I'd points out Before questions addressing Mike's up, back like

as by their up our retail our industry. X% in the content T-Mobile, in industry up a supported revenue. cable written how service business, in has which have an the driven some about That's ARPU. quality At analysts billion questioned over bet, and for our AT&T growth MVNO ARPU reduction X final of has and revenue to grossing of third-party promotions growth. margins growth come. postpaid as are rung evidenced is years $X Several of point And and contra costs real on industry, by around revenue. our Balance Some have the primarily treated pressure drivers Sheet, service growth for content the how their been by earnings And to

the and share back execution has However, of amortized with We're are I think future value a call been we point enable the shareholders, promotional our flow. unfairly a the most one broad strong with the T-Mobile, kicking to actions take minimal us on of Q&A. At to in industry balance momentum the invest player. with in expansion Altogether, now with No on and when through including significant you expenses cash our to our a can network over for the to track painted Jud? to based expenses brush will Jud potentially continue And I that, to business only deliver amount upfront begin sheet. turn substantial our sustainable free growth in repurchases Company. our plans ahead. on unlock

All right.

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

you. take first question of Cusick Phil JPMorgan. our from Thank We'll

Hi, Phil.

it. Appreciate Thanks. guys. Hey,

digits to year. you're next reasonable the and talk just for in that else, anyway. going your a with Is industry? CDMA whether LTE by -- talk Let's double about Thank down a slowdown And you. confidence the you impact. I about AT&T actually know then can everything but the it's and the think Dish end the second, growing in little year, on I everything expectation of of at EBITDA base, bit delayed. the about thinking next planning CDMA shut

Peter 'XX, the Thanks, in go advance. with Phil. and and I'll one. start Maybe X months hand he'll you it ahead first on to guide

sure our our doing synergies to that we determining outlook that needed decided time. had a think the looking meet our we to sunset sure make has in to to parties disclosure carefully after following of is Justice's. sure the X involved, of move as opportunity you expected. other yeah, those On March. say there end or from that had the with the We've been to make and to out network And the most we there they talks the is did network all impact plans by that at date that the financials, CDMA, the plan every months the material And talks, our involved of that in was single upon Justice. there what CDMA ourselves Department to at of But know I to the just wouldn't in I make What customer to to take in voluntarily Department the at we own switch the be opportunity out including our deliver and that interest, time did given is time. ability goal that public everyone which we want to a superior and

they needed. would when at said over we all more we've something than as to Now, would But X well be months current everyone XXst involved everybody a year we run it extra like us rates, look that even way time, believe along, December notice an rates, the the provides looks that ample actual and we've at given appreciate. that

able own. of to they that And we And that's to on because our partners faster, appear that that be we're were to we action on pleased our this to everything just necessary, we took something so, voluntary seeing, we be think And would and that based this is be do. I'd moving like be. is don't think all

a to on cons exciting will it you Peter. the looking but EBITDA effects forward next I for and doubt Peter give hand on much to an 'XX, all to it, but As relates friend pros year, my we're and

about But our Phil, give Yeah. certainly points update think full a part provide me you how around year-end we let we'll a as of couple calls. and guide you of 'XX.

DISH, of in you duration about today look billion questions I around how the DISH a First, we I we they LRP, said well part we momentum what's is highlighted we're think strength the business. would $X know and revenue And the assume already go always 'XX. XX for QX is Again, always the word and as the at and player, away, under of there's given continuing, their facilities it took at and and our guidance, would the earnings business DISH call. was revenue of that us plan. recommit the impact around been become we potential during doing underlying XX-service heard again the full revenue on that the and that

seen probably growth saw area postpaid is you but not the and the the I'm you've account around that other. just most so net results phone mean, real additions postpaid where I excited. And today, the

a would momentum 'XX, like of with areas the to for with our ARPU dilution customer the less to of in in to that MAX XXXX, be just and now from is to I the the going that a we've Magenta to I XXXX. flat 'XX excitement flat full-year seen guide remember, now business updated One see relatively off full-year be probably And is in be highlight base path to 'XX. which of base that's X% there and our higher than 'XX

our is raising working year certain us to today. flexibility take vendors and And the I'd free XX-K, And this see and as where also area, savings. look updated that The significant fully into drive generate see happening do you opportunity other really is already it's are contemplated what's capital is you in allowed say prepayments and continually you guide we're excited, cash our flow. with

as take cash flow. that how think flow. is And is very ultimate of the about into we translate as expression it cash the value that really revenue free for service about Mike you and said, excited So, 'XX, creation I'm opportunity

Phil. Perfect,

Pete. Thanks, Thanks, Mike.

Next question.

from Goldman Brett Sachs. question Our Feldman next of comes

obviously the stage having legacy in customer subs pretty a Why Thanks. still Magenta adds the T-Mobile a move plan half Thank at really a you're customers still deeper over would implies comment quarter positive point network integration appreciated. giving aligned over could of trend was the customers sequential made customer other Sprint thousand follow-up and year? sprint Maybe into have XX% to been on play ARPU the out takes about that us next this Sprint be a with strong of moving just the with at point start the next your churn see the would The other sprint of losses? is next Thank of with and a takes puts inflection insight churn how MAX would've characteristics material a so integration, you you. couple those hundred year. traffic question. with at and any net been the into the into your Sprint experience some as legacy you phone you've on in been postpaid positive dilution we if customer, then over words, a quarters, to the aggregate off for it you're Magenta just of what's would been what And few which losing in

going number whatever you bear to doing to who strategy a have for to best a in this migrated as a listen we're showing can you Terrific. a second be our But industry better network function in that shorter if maybe integration of when integration tremendous periods great get churn, us Sprint during to the is I'll the with of much John there follows do frame, to on means knows, a that has give we're we're start And into experience the period happen one add he are customers it this we anything over. that and happen of On one. puts I'll give ask tighter Sprint then trying Peter first going as is but affect to with them our is integration hand and compressing extent. seeing every pleased we're churn have integration, first in integration one, And really and customer on that time to Sprint a an and of and we're period takes as and to a patients customers. the XG time experience. still mind them what greater anybody what

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T-Mobile fully you're on be selection That the could there network. So, here. means some bias

fully T-Mobile the biller. on You're

You're engaged with the T-Mobile brand.

T-Mobile rate T-Mobile expert and You've plans tax service. moved you're of to team inclusive experiencing

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really that's promising. So

frame. because have integration during the side, elevated opportunity only happening less it's churn through we Sprint we while somewhat this to time time we're think and with I we're would the the compressing come frames seeing than a actually because Now, losses overall expected compressed have from

take us as device handsets before of like pleased and -- XXX to we as compatible particularly network. Sprint know things the actions we're today. those to Magenta underlying Sprint anything as customers things the to you'll ARPU, with with one our important unbelievably customers John, are their to John? our in Magenta you and need, forward And we through We it's handsets, advantage you're seeing see most team need talk we'll moving else because and offers what you'd with they think have like seeing performance about go to on and great the everything full questions seeing, I just add of is initiative I trends megahertz they synergy. to like are our get what well What you the get your Because Sprint very if is saw,

in results Sprint a lot We've us. been and starting not through the earnest Still effort going you're the over the with that whole experience, of in the those that events, a in dramatic that that's network that you far. we a we what doing for being Mike SIM take then Well of together, like a changing look this you're from with QX. back full But months that. done that, were that and seen and putting you experts, what namely plans from this That's a We've the out of hit T-Mobile so put the that we're all app, work integration we two, parts, I Mike, from seen devices accounts of Because bringing really on moving Sprint the a we've of in XXX-megahertz a think so back sure important team and experience, network, last When the our said, the X, running focused bring have lot number for T-Mobile, experience discrete and X, inclusive and of number -- QX and licenses, porting bringing with if in but in together, place we one, in traffic capabilities they since great an increases in full XX this really within moving T-Mobile, coming we're Mike, XXX customers T-Mobile, started disparate on greatest don't network full QX we've the on tax great rate at the on. sprint.com, Sprint experience over full in our application, having you that cards. that latest really a associated make seeing that. pleased that megahertz. logging a plans, device it's is about And QX. do so to got enough. course, here. in really and like we've not customer it's said I'm things award-winning year, lot you August still team in of we're to the big And and on we're initiatives you T-Mobile far XXXX, moving

to We a bullish, overall like It's during that. said. Mike to going be be compressed timeframe continue

do track XXXX height understand what but of as work tough, a time. business front always best-in-class. Tailwinds are no right have left And my always and For it's little handling, this we a do. any business say of of covering for terms still and would take but in a migrations the why to Integration that, a to those and first-in-class lot We of question XX we're look years on hope see you in I do been I long little well painful and us, of I ahead. a now. in you in do migration obviously who -- this integration bit at got in integration, of are how things I we about we and need are this this Because to to we've overall a work we're grilling, beyond. of bit have been lot

the We have a on still Magenta side that need that side. lot keeps come still over there's of sites to the Sprint on

ahead going the the up lot is of a flat and telling negative to get each schedule. on a handset as updates than sounds year, work you -- show ARPU can promised on with it ahead your full goal of time service, -- all. that you've that migrations of advantage I have focused Brett, faster And with We're lot on second us lots we done people can this full seen least and need going so, and A expected. into customer do question, very do on station X% of paraphrase part us we after have take Peter, we're roughly ARPU pull to we're you like of that of but to all rate destination network. at migrations We year plans, the to our picture.

So isn't year? why going that to happen again next

Absolutely. Brett.

XXXX assumption account always focused Let end the X% how through those growth. ARPA and do was relationships Underpinned have expand really the of on you do was the growth dilution you know, year-over-year under how me LRP get and right? because -- as plan you

enterprise from growth So, amongst I'll account ARPU. where into very phone as you ARPA value-add could and for example and about connected we tailwind some one other, where of we to would are certainly in a look or a think But the might lower new that there's in actual of those that be be of than our the and which give things government, other in our you so other the CLV that a phone will but areas maybe than you large the year, itself. you, stronger government devices as also ARPU and going type MAX of opportunity much And forward dilutive, lot to enterprise of about ARPU postpaid relationship number and cases, blended strong certainly the many see a services a where and you're talked business typically, base, be relationship. the Magenta momentum next impact, great

and yet value to from dilution ARPU relationship. see could account tremendously a you where area accretive T-Mobile whole one that's So

not I'm So, puts all you to going and takes. the give

to the throughout plan. ARPA something of But and you great again, let earnings course You on got on instead of to you me QX. this at expansion guide year-end leave momentum certainly, focused

That's Thank great. you.

Okay. Brett.

can if Okay, the prepare or see the Twitter team, operator, on just and that you we'll to the we'll back you out after to great, be two, one. then do this one call that get next phone feed

Thank you.

Craig with MoffettNathanson. from Our next Moffett comes question

everybody Hi. to the I now, X%. total now prepaid that for phone numbers almost could. a if growth pushing combined, and Two industry postpaid higher your and questions seen is subscription, else's, you, to even we've One, rate

times whether and or combined that's can wireless about of their that with think how be do if could competitive. fiber just your talk seeing to I the and X what second, is of they about just if fixed wonder a offers now, see what plans. of [Indiscernible] grow and competitors what wireless then convergence making could there's about there. you're wireless I wonder critical that from the Is that whether what role or it and you industry lot talk So been you you population, is? And wireline think talk you about way the you

you to I'll the competitors answers and first to more one. I quite that. think see what's why there's all have or all well with ARPA about Terrific, in don't same we no driving growth of about because talking don't as line reasons transparency. account It's growth start start at our the and over decided one the amount accounts the we of ambiguity much of

net accounts you largest and for was shows postpaid in it that of a business. XXX,XXX so the the you And new the Our ARPA relationships side QX. X years see on rising quality

we're not surprisingly, from didn't prime points percentage more One up a mean a our and have better is is getting because about year talk more the several better network. things we that prime, I ago. of and we

best to attract levels the industry. in customers to the starting higher it's where -- attract So,

in It’s not so, a improve. And the that lines might account in to isn't due numbers. ARPA to goals, over lifelines not is side, not EBITDA our be us, through very growth, Generally, that well It's subprime, mix subscriber weirdness is certain for industry-leading cash healthy. some growth of you we expect. growth, our It's in flow and might our for as material it EBB because competitors underneath because program our due the you but it's some our EBB no on competitors, growth. but which have for things of continues see flowing as prime that not postpaid to accounts industry-leading you our see to to And extent.

question. certainly And are places will we is like sustainable be which the play after able about organic an been It's you what under-penetrated expected Prepaid be enterprise, is. know do. it of assets. a have a don't so, and of flat, look, of to some rural in there's so I other how from transference in to us, amount markets would've there know strategy who's that sustainable the But if a has going how become rate. strategy doesn't sustainable, win? areas who country. and home it small And huge investors don't it I for don't where segments, is. we to is These what and periods? look, deliver themselves should guys set reliable XX% growth ongoing second ask your broadband, majorly going are the time different like all Like

X now from or race. XG And XG, the in ahead here we'll going our well and race years to XG so that opportunity that's in us. translate -- in between that and to massive on years that years we're for ahead you as lead tell And the I'm X to more be X

we're and underlying that are anymore, how things integration that's happening to extent other a but to to look, the the investors Sprint be very tailwind They're that's with feeding really not and you around. where only And going ask is small amount short-lived We'll have going believe will be turn there a with whether for temporary on our but themselves see trends. guys. of not think will churn, them goes, I driven what's pleased so, some

about home Now your about second broadband. convergence question and is

fiber, push we being and our category First, talk we're maybe talk to question with I multi how etc. player doing then as want a can on about about into broadband the home

that there we end punitive. there what typically they that in they And So, while have prices, not up like. majority we're to consumers the are fiber lot there we're But that realize are customers, in us are, of see. very customers, for modems, explode from very, Mike is What's translating other question mentioned, that seeing choices to are urban taxes, those choices. coming do fees up are of on a customers is the know out don't of offering very that only as or limited having charges with is get for our They and other high And providers. cable those, are great that? with paying suburban getting is what they seeing want to our places, aren't areas, thing part a start and promotions, coming a put why and Well, good they're a one their is cable are terms they're offerings also very convergence is, they What products. price, of customers but and that today. with we'll that and that's product big beginning from fiber what

about these a cable And very a gouge you seeing works. paying that my actually say, I'm and companies this know fair so, have to having and that existing extremely paying on what, doesn't I an I'm And me irritated come product explode, people amount don't we're be things. amount, is in

from add we coming sources, from rural what in people fiber. we markets. product. is frankly, satellite, quarter etc., we've DSL, And cable launched continued see has resulted for And seen since highest and this so, even us, other quite net our the And momentum

XG more very to going excited continue to about more choice. more, So customers capacity still as and and our begin and we're giving built, ultra We're network more that product. gets this follow

Perfect.

Well, that. Twitter to then after let's Okay. -- the see what's and come we'll go back on let's Jud, phones

We've good. you case a great XG question talk got use enterprise here. Can Sounds about opportunities? potential

right my [Indiscernible] go to Let's

saw big that as XG about not really connected use tablets, other talked forget X proud connectivity, let's killer that and -- core smartphones, beginning, the say Yeah. I'm to case Mike Perfect. we Well, the first and is like and devices, area, win improve our is, have huge and And above win rate is in trending well in what continuing to rate continue we market that's resulting improve in our that to growth. our share seen QX.

core you course the over than is happened more connectivity just years Verizon at in business X the than the what's last to look XX% now, better growth XXXX 's. space. in from of our If

So, core correlation your use this with the we're in growth XG seeing emerging cases. connectivity XG big us of additional correlate business. these the as leader that But as around in question T-Mobile

we're cases, that really things about government well-positioned these network XG our XG core. network XG involved other delivered market because we've we about we our really a new XXX the But a bring with talked mid-band the on of fact use features our enterprise our One got to is a a in well talked enterprise our of -- like Mike to some network little scale key differentiate the of that these customers. bit are network. way positioning services people we've multiple covering have ultra million also advanced last network. earnings in we trials to us And that network that we're and lot has built dedicated the that with around think XG XG we've

like first. opportunity also core market traffic isn't -- cool and future. better for be dedicated customer applications. we think It's gives So, our us the have in us is to enterprise slicing customer delivering our that government through for XG ability going really running network and network customers to features we a XG performance the that's And network to a bring big with

customers We can can. to average have data we help a on their than highly distributed competitors network closer our of data centers so application process

And working to America operations week auto And though with building. largest on use big under-weighing, going one U.S improve every got even faster, edge them a see like us of of so, at application use these that airlines the about right trials with fleet are this, single one of on-ground with we're We're self-driving cases that doing allows you cases have help customers a of don't now. they're bunch largest press these one in releases a we've right of now support hubs. and data we mobile the autonomous significant their for customers with instance, to major their OEMs big, big working use-case and number process

going (ph.) we well So, made use decisions biggest with business on really advanced the them. co-innovate in because and forward. XG positioned these that engineering of enterprise the the network we're think differentiate working with for some and world we're solutions And companies our helping his customers Nevel these team of cases to

to Operator, Terrific. thump. let's go back the

Thank you.

take Jonathan from of will Chaplin next question Street New We our Research.

presumably insights share switching going lowest stare call, measure of guys. iPhone powder you been launched of and the September? you -- to has us period understand the saving it's Mike, Thanks, quarter merger. in -- is the that happened your and what can third on that second really the you since I that's so is since the said the I'm And your to now guys dry a flare some given the if year you into year close give in SOGA earlier high, for you're that sort based, wondering your where decisions be think I in guys quarter really the

sorry we Quarter. to talked Fourth something earlier there event seeing Quarter in we've that entered breach happened as the quoted was things that, muted in that think after that there this of early that about, effect was impact we Peter's big that And August, we stronger in Yes, see question that and I Fourth were you heard data did one very-very the we happened. first listen, of and from a the trends is and the I a were was while the nice because remarks, and much finished shows and saying

that customers themselves move on from. to prepared Something have generally

good. And so that's

a pointed model, like On churn were are the at what out the other hand, may at was Magenta will our all to was but this, I that if minute we with don't our I you normalize what minute, after like churn a and one it of of And this look know finished just things if for for look the it our levels. if integration. just look look, to say,

and like period, that underpenetrated segments with very would've the SOGA delivering well. and -- we're these We share, X.X quarter, no to gross you can With also million journey. EBITDA we've we we're side. are this very see that execution into doing, that and about, elsewhere And industry-leading SOGA to than this the at lurches is of biggest when. you it couple the that the want and unanticipated, a we far the with takes reliability consistency where of about points reliable, don't is reactions really getting the ad big we're adds make And in that talked sustainable etc. knee-jerk point And we and been wherewithal guys as They promotions, By for think history make growth, versus shows in picture. apparent deliver. SOGA and industry-leading sure ought phones last it and level journey our you etc. outsized net see we're too creating in flow the take expensive that this periods but rather And our look postpaid What be plan want got kind other you given time competitors linkage in a that we category strategic on doing. sustainable, don't this penetrate chasing as our growth, to of more have. Our that behind Jonathan, we any may investors cash we us consistently all it. pleased figure go

the have your follow a on going how at guys Mike, enormous process and integration scale complex I circle also you this say comparable just -- you is it you'll complexity Sprint integration, once get industry you're a an the quickly in resources of pace that at all on maybe that side It the take that's benefits happy mentioned we've in and And say you times When unfairly Is ever can integration right is got, seen. focusing needs any least function f the have churn how than integration with the couple of on just up or which share. business? focus of you've and better the far more complexity on to is that this in journey the to management that given right you point that. the the now. that in increasing bandwidth [Indiscernible] now through be the the just aside, managed at business

I about don't relevant bandwidth, point. a management it's think certainly but resources are

you One of see integration to heavily outpacing things timeframes expectations the the our for is on we're our into plan. we're doing, as costs achieve spending and this

benefits with. deliver down go I cash to wouldn't integration, far a we as on the get and flow the because during So But just And than into deeply for in expected benefits for be way to this we think sooner. more payments ride benefit done different shareholders giant that magnitude able think trade-off flows and making, want along, The be to of strategy. lot to resources pace. takes us leap of a Probably us can we great you the the to sausage sooner, plan ask the that cash affected think get that by ahead along rate for trust positively a get plow customers we quickly. and you that's of investors integration the right reliably it to we're a our by I the is market asking the

the power this a delivering brand of deliver SOGA to customers to we're of beautifully. 'XX for in effect. that this and go, deliver us paying we allows that flow pleased underlying the is prime the of growth, that Which the And we're SOGA you investing about. very amount business, and as we're all and get shows into Magenta your part quality, something height in and this EBITDA and is going as cash I'm So, accordingly the during performing outpacing of is major But point, even un -carrier have high full which we it to is force integration.

trends, on and people the integration. have side had well very before. I tackling quality that for trade-off of back biggest those us between both, to point noticing We never of That and are the all. like pain bond make this We're always delivering think And (ph.) they're price.

-- would And Jonathan add, just I

guys. Thanks,

to you've integration. happens -- around we're expanding I know while the post were this building smaller remember, thinking still rural markets to distribution and area. what we're you got SOGA ahead And delivering in network

you We're that Un just the delivering -- talk is differentiated be be. XX% with network going SOGA experience bringing going that the heard differentiated relative bringing the machine I everything to successful in ultra fully guy's date, made how experience so T-Mobile, population. is -carrier know that us eight XG to it except other comes covered a in of a is away XXX when with that all this So, about we're that Mike deployed And experience fully that that before it we're to the doing the pops the there. going with last from uncarrier don't XG, is capacity to goodness million blow to just years of

could bring SOGA. how So of just that's machine XX% another impact as we look it area as forward, you that this to

a Peter. great Thanks That's point. Mike. Thanks,

bet. You

question, next Let's the go Operator. to

of UBS. Thank from you, we'll Hodulik John take our next question

questions A of for couple Great. quick you.

it all, decelerating cash you has last been grew to [Indiscernible] so on X.X% sub-base, where think about Thanks. maybe networks performing I X%. coming fixed I anything is -- the of service. the the or guys the there areas how are for of out first him growth it selling size for few of the is you sitting in it cash wireless there way visibility through usage that maybe terms XXX,XXX think subs by sub-based, in or quarters, one. over growth. the mean, target a That's I guidance that cash to of the you by sprint with you linear the that guys the terms the can EBITDA the see us you network down in himself. quarter, network. acceleration First suggests EBITDA, because And as pulled on sort that of about EBITDA, but fixed anything [Indiscernible] from then Do number else And have tell bottom then, of there's year, terms of growth wireless, the the synergies of over of Sprint this here have in that year-end it's this

wireless. pacing, Okay. EBITDA, synergy fixed and

Peter, So, let's with you. start

trying me tease think out 'XX I EBITDA. core John, to of Yeah. you're

good job, So again.

'XX I'll you all free revert and how think about back business I comments and around I the see to cash flow. the the excitement shaping know

was guide, integration, a synergy XXXX of again There the also that's the increase third business but to XX.XX from the On adjusted yeah, as allowed to a between right. underlying in row, you're growth core and absolutely a for the yet another XX.XX result only us EBITDA -- increase billion. not quarter

LRP. terms And continues and period as decommissioning, course about but So the the talk not as grow business it's you to when over significant of That next momentum or and XX in of really synergies Nebel decommission maybe a spoken of opportunity let as us year of to record the how it certainly talk I'll hand synergies But that you terms decommissioning to in through and we of tremendously the Nebel Nebel? merger-related up the how we how year XX achieve and the excited and such before, about we sets big out look portion cost. achieve of into is linear you sites. the that. I'll for a

the as Peter. got hope I here, And whole John, own, not all -- a in my room on team I'm we're Thanks,

are It ignored, [Indiscernible] seems you like being a

progress the development into in quickly in We're made on making and in, a developments we and already start synergy pipeline. very synergy But well We're 'XX. great good 'XX.

'XX just really Peter it's As biggest is year our and not outlined, linear.

is inside the Our XXXX. our complete to goal substantially activity across network decommissioning

building on the building the of this almost on call pick first to-date, 'XX before guys, the terms positive the nationwide We're during is always network making move great and today, and a but it progress capacity as and migration, unrealistically, So, tail, a big the be you've progress just the half, things is tail, mean we've network decommissioning scale super this get from of our reach and and of we're said, even an year. good breadth other based in won't linear of we're heard really going will our second up exciting. be to And reach year mid-band made but progress, the strategy will we've making we in I and arm's XG started. be ultra capacity with either, a integration, into is all as network, there ahead plan everybody certainly

question, in great is just Verizon more megahertz between that we're the at doing So, with growing broadband XG the XXX the AT&T growth to million generate and footprint. capacity and was product place, performing strong. XXX we're areas of are half That's covered C-band in we phenomenal. network a will dedicated successfully people huge John, in-home of and both. well. can available back we rate. where them on the spectrum great with The have products for and your that how from We're [Indiscernible] year really across demand is There's a around this the by end ultra that capacity, targeting spectrum of mid-band that

and capacity including and and referenced. lot is the so, a you And opportunities, exciting, generating capability growth broadband product growth great truly in-home that we're specifically for of activism

Yeah.

last widely year. [Indiscernible] a were of home early of start. lots Verizon, that, quarter, beta for team launched did on out tell that new last delivered we net twice this And three-year Verizon had at XG XG pretty month kinds the as customers who gigs demand head I you of available. this there of this and more a We did shows broadband. pace that didn't it running now well the of as detail. we disclose the on you shows that quarter broadband our we As XG out have there, than people that footprint of and doing are kind you there's lot out a that course of Which and things combined. the network of XG and fiber also latent capacity of on on Hundreds network,

about now customers. what kind we're maybe you So getting talk of feedback could from

Yes, I Mike. know, thanks

great couple the points that. the we're X the to by of I million aspire XXX quarter, that's -- XXXX, XXX,XXX we're remind a with Nebel's we a Choice Awards. do PC all we, Mike a of end companies beginning initially year, only we our we year, other that customers We're for the it's is the many and seeing not to at We're fine. too track into we than to the As way Magazine. just them just well much recognition I several use small and we at a there using track a us gigs opportunities, -- to -- everyone of we're think out On cable record said the to of month X the Customers lots even to we keep overall industry. of be delight Readers’ from had us higher in percentage seeing by million product. This start. customers which that that we uptake is on us great very we high network industry this One, really have think is customers gives mentioned, big I opportunity what's serving liking there's seeing it's many like penetration really They a I see rated we so and seem And and and this of mean, to hope up. NPS off last internally... third-party also great more customers. of the can a lot surprising product lot be

but want the it these them fast solving we why as be either rises rising viable like problems high-speed we not are that choice usage real solving and for think where a that's deal problem it decent giving cable, fair while you you and to, will one, so is life, into a so that our or of look, looks -- I that we're the would wasn't satisfied, as by customers. there's right, frustrated capacity, able a you there boy and will price place and you're you coming your put first so unplug a a where code. change Company can treat and that

surprisingly, a big people net have home real excited for about for home this not problem kind terabyte or broadband of we using so, month. The problems solved solving scores That's $XX.XX to high. those promoter of We're a so like X% X% broadband. our customers a That's are business.

then go let's from more to and they Jud back John, feed. Thanks prepare this X screen Operator of us Twitter maybe want big to the

Q comes Thank you. next - America. of David of have Barden from question Bank The we

that taking think would a margin. through Thanks the to Magenta Hey, you than XX% your the comments realization Sprint of the so Mike, it's migrate impact, to at I my that guess, lot Verizon it shutdown for network we are how said the first MAX the talked blog its get need more metered guys. the the much the questions. and of end no extend related would if we're customers I interested parties taking the post was the making? if And about the to and of far. some the all went last opportunity deadline Mike kick begin financial Obviously, a Magenta second then of and MAX just of sat you we're as Are to base, I decided a at you importance comfortable the of getting? relative March could network XXst. if out, stands In have ARPU convinced saying down with are kind to we're question you And Thanks. that share shutdown base. again, March where ready the to, least And unlimited. could, percentage lift concession, you network just to what XXst shutdown to synergies. about and wondering to the we this related I have, to went be, is I

the see of a side this then further second for don't XG, a the right one, in We getting getting XG hands Dave, we'll to dividing, network capacity of the any just with people MAX. the start high And the cause about talk Magenta digital me upgraded and Let rates wouldn't we the delay. at And based when all the it further. study curves people also run and our CDMA, it the just caused of business. certainly who it's be to we pointed for urgent look need delay most and they run on rates as important upgrades declining

right wouldn't we financials it, the back our further that to it. lots What a to wonder, found our it up And is best with get signing feel deals the responsive our market. this do plan pleased and on a you, we app would Magenta Mike to further that's one. the and we this network this were and the expect thing catalyst. been huge video, way handset even that able We a XG. does they hotspot And to needed in be to conversations We So, voluntary interesting, of other mobile their looked handle, it's of and while that don't smartphone asking of see really the are for I which of pleased to the the and Department XG no growth. this on expect the to able using was be execute think base, XX do you ability were basis, month we you, Justice problem. and partner run -- we're growth, the so see this there's impact premise cause is no, I might then shows have on When ago, there promised opportunities. for that go amazing no a popular. is can't people that just carefully. do best to But experience any your said no, a a that we very just we question getting it's of delay much able would be network Magenta base its for in we will delay as and is We nor gigs I way to here, very competitively guys And is by certainly delay that the we're a in wanted Man, the exhaust room wouldn't to plan, at reason. on give to to us, we all don't base that you it further, though because starting be gigs been MAX, They're started. sensitive. little to do the to this MAX that expression The XX able month. a killer shows usage the first social a have too media

- the - MAX the where Wi Fi, signal the around look password. and walk that's Fi provide world's - don't ask into going. for and Wi customers Magenta you Our Fi this building and a Wi for They

room much than it but do I of on your we the agree to seeing, the Yes, can't is, we're premise other do. parse too what really about with excited have which question so we're So, we base here? run

it. really Mike, Thanks, appreciate

of certainly into It on put the context seeing you three MAX MAX, into gigs industry's the in LTE. XX Magenta on cable in just If network. you industry compare the when that It's consumption XG you're leading helps perspective. with times what on in XG Magenta that's terms best to incredible put competition

offers" talking my remarks, network prepared that the As I you about XX talked throttle prioritization you. we are throttled in about busy, after you We're if is not about see gigs. talking "unlimited

and compete that you on And hand able plan on reason the with side. wireless a on going, the going like we building. to to in wherewithal to truly be unlimited cards a they're they have First I go. AT&T quality Verizon and an wireless XG think value And that have the of don't we're know plans with all, that the of calling world. owner's really of don't why the or think are that where XG I where in plan. to XG that's compete economics And all, the us so, network the don't of for I strategically. we're that second

guys. you, Thank

want you Thanks, Dave. we one the did go -- more to find? Do on

Walmart here Bill on Best relative with what's view the one quickly that recent yes, distribution distribution so hit the recently these and growth if the past. something [Indiscernible] the and John XQ on front? that quick to years announcements and 'XX relationships, a driving on got we've want to channels Buy on you Yes, future

we're this. so bet, about You excited

days so You or made have of couple where we XX -- just announcements the last days, in a XX

excited our be incredibly products. rural across and we're them stores going T-Mobile this. course. across expanded to We're Walmart Buy then have stores. and of And of by markets on in have and Best smaller launched Metro expanding Not we X,XXX [Indiscernible] into and about T-Mobile T-Mobile XXX a and also lot Walmart those areas,

Best their then to a done those It pandemic as in you for when the what incredible has U.S, what when I Walmart retailer premier Buy attractive they Buy consumer the what have digital electronics in are Walmart at think Walmart rural opportunities look America. particular look you across has Best done at how is us. the is companies. transformation and has completely shop go revolutionized done place and and

retail You've in got to a large remember too retailers these in played is national in that long haven't national time. we very really

As fact, quarter, we retail these the locations. national with our last in of just matter announcements, number of quadrupled

spaces we significant Buy Best as in opportunities in for to the our see customer those opportunities So, basis big well. Walmart in as Company switching of those and be and see

very opportunity is attracted they So, we're several doing. are Company to our Walmart represents years. network doing, attracted to best the industry's that next what and what is Buy Clearly, the Best XG of the over all

and confident Walmart Buy, there. or don't great bullish have in and But numbers several months, we're years future we're opportunities. in and the So, strategic very tell very you these our I about excited to in Best a we've by relationships engaged on bullish very that. very conversations that the the approach exactly with channel QX give last We've beyond. about over I'll been of we're just got you lot

Well, terrific. I'm going to a up it wrap here in second.

all, questions so and want great for of in didn't these to get queue that might you thank you I people First have and the answers know gave to. I been the we to some we all long apologies

is that's has of team cards the is are as emphatic of the the And get it's and yes, competitive. growth for about when questions answer a execute questions an and topics. you leader? the with saying, a getting the available those sector lot of in investors And to your competitive is man, still and what anxious us address way what in my an to team out it way, We What's the sustainably remarks big We I gave and people And competitive. address I opportunities I you Jud today, situation well to we deliver assets try high-quality some FD-compliant following room is, our questions incredibly we the hoping that and this to who hand we there talk to guys And prepared on? to really going like a of to those know address and it we are see of some to question you competitive? in noticed, Are to marketplace the the I questions meeting. were and answer that had. to kind always you. But run. like

So, Thanks Jud, And we tuning. for final? appreciate you. anything

No.

Just again, thank you, everybody for your time.

any have Thank up. Media and Investor you to Relations follow-up or please again. out we're you happy to Relations reach follow questions, If

for gentlemen, Third Earnings Quarter and this you your Ladies Thank concludes today's Call. T-Mobile participation.

pleasant You day. have may a and now disconnect,