T-Mobile US (TMUS) UBS Global Media & Communications Conference summary

Strategic priorities and transformation

• Focused on extending network and value leadership through 2025, leveraging data, AI, and digitalization to enhance customer experience and prevent issues before they arise.

• Transformation plan aims to shift from a challenger to a champion, modernizing customer service and operational efficiency.

• Emphasis on systematic, profitable share gains, especially through customer switching, which remains robust.

• Rural and enterprise markets are key growth areas, with win share at record highs and significant runway for expansion.

• Digitalization and new services like T-Priority for first responders are expected to drive further enterprise growth.

Financial performance and growth outlook

• Confident in achieving guidance of around three million postpaid net adds for the current quarter, though Q4 is back-end loaded and carries risk.

• ARPA is projected to grow at 3% annually over the multi-year planning horizon, driven by customer migration to premium plans.

• Recent pricing actions in 2024 affected only part of the base, leaving room for further initiatives, but the focus remains on value within the rate card.

• Underlying wholesale trends are positive despite near-term headwinds from partner transitions; entrepreneurial and influencer-driven MVNO growth is expected.

Broadband and convergence strategy

• Fixed wireless is projected to reach 12 million subscribers by 2028, leveraging fallow network capacity without significant new capital investment.

• Potential to exceed 12 million depends on future technology improvements and capital returns; current strategy is cautious but open-minded.

• Fiber strategy targets 12–15 million passings, with penetration expected to be higher and more cost-effective than standalone fiber companies due to brand strength and partnerships.

• Partnerships with Metronet and Lumos are seen as low-risk, high-growth, and scalable, with ongoing but limited appetite for similar deals.

• Convergence is viewed as an established trend in the U.S., with bundling not being a primary driver of customer choice; focus remains on building best-in-class broadband and wireless businesses.