T-Mobile US (TMUS) CMD 2024 summary

Strategic vision and future plans

• Outlined a multi-year plan for profitable growth leadership, focusing on network, customer experience, and expansion in broadband and new businesses through 2027 and beyond.

• Announced a new goal to reach 12 million 5G broadband customers by 2028, up from the previous 7–8 million target, and plans to cover 12–15 million homes with fiber through joint ventures and partnerships.

• Emphasized transformation into a digital-first, AI-enabled company, targeting 100% digital upgrades and a 75% reduction in inbound customer service contacts by 2027.

• Launched new business adjacencies, including T-Ads, satellite-to-cellular, and advanced network solutions, leveraging core assets and partnerships.

• Achieved and exceeded merger synergy targets, completing network integration a year early and delivering $8B+ in synergies.

Network leadership and technology innovation

• Maintains the largest and fastest 5G network in the U.S., with 90% of sites on low-band and 80% on multiple mid-band frequencies, and ongoing investments in spectrum and site density.

• Only 60% of spectrum deployed on 5G, providing significant room for further growth and performance improvements.

• Introduced customer-driven coverage, an AI-powered approach to capital allocation and network optimization, using granular data to improve customer outcomes.

• Announced the implementation of 5G Advanced and AI-RAN, partnering with NVIDIA, Ericsson, and Nokia to create an AI-powered network innovation center.

• Demonstrated leadership in network slicing, enabling differentiated services for enterprise and government customers, including T Priority for first responders.

Financial guidance and capital allocation

• Projects service revenue CAGR of ~5% through 2027, four times the industry peer group.

• Expects EBITDA CAGR of 7% and free cash flow CAGR of 8%, with $18–19 billion in free cash flow by 2027, despite becoming a full cash taxpayer.

• Maintains $9–10 billion annual CapEx envelope, prioritizing network leadership and digital transformation.

• Plans up to $50 billion in shareholder returns through dividends and buybacks by 2027, with an additional $20 billion in flexibility for investments or further returns.

• Fiber joint ventures modeled at 20%+ IRR, with potential for higher penetration and cost efficiencies versus standalone overbuilders.