T-Mobile US (TMUS) Wells Fargo 8th Annual TMT Summit Conference summary

Market environment and performance

• Q4 saw intense but familiar promotional activity, especially around Black Friday, with strong sales and switching activity reported.

• Postpaid phone net additions are on track to meet full-year guidance, with a back-end loaded quarter expected.

• Industry-wide upgrade rates remain at historic lows, attributed to high device quality and widespread 5G adoption.

• Despite lower upgrade rates, overall sales and switching were up during the iPhone 16 launch period.

Capital allocation and financial outlook

• Capital allocation priorities remain: invest in core business, pursue strategic investments, then return excess to shareholders.

• 2025 will focus on digital and technology transformation, with CapEx expected at $9–$10 billion.

• Mid-single-digit EBITDA growth is expected in 2025, with working capital and free cash flow stable year-over-year.

Convergence and product bundling

• Convergence of wireless and wireline is seen as an established trend, not a future one.

• No significant difference in growth between fiber and non-fiber markets; share gains continue in both.

• Bundling multiple products (smartphone, tablet, watch, fixed wireless) increases customer retention and lowers churn.