T-Mobile US, Inc. — Call Transcript 2026

Good afternoon, everyone. I'm Sebastiano Petti, and I cover the telecom, cable, and satellite space at J.P. Morgan. I wanna welcome T-Mobile's CEO, Srinivasan Gopalan. Srini, thanks for being with us today. Thanks for having me here. Just before we get started, I'd like to draw your attention to our safe harbor statement that I will be making forward-looking statements and using non-GAAP measures. Delighted to be here. Thank you. Thanks for joining us. I think it's your first time at the conference. Great. Srini, since the February capital markets update which reset multi-year guidance to reflect, you know, not only recent M&A but as well as improving underlying trends, T-Mobile followed up with a strong first quarter print. What are the two to three priorities you're most focused on executing against, I guess, over the guidance horizon? Yeah. Thanks. Look, the heart of what drives our outsized growth, both revenue but also financial and funnels into industry-leading free cash flow, is differentiation. Right? Our NPS is today, 20% higher than that of AT&T and Verizon, and the heart of that is being able to bring together best network, best value, and best experience. What I'm really focused on is widening that differentiation. In networks, that's going from 5G to 6G, that's driving 5G Advanced. In terms of protecting our position on best value, that's providing value not just once in two years but on an everyday basis. On best experience, the heart of our best experience has been our people. Now we're augmenting them with digital and AI. The reason that differentiation is so central to the way I see the world is all of the outsized growth, and I'll just give you a few examples. We've got 20 million businesses and families who are still using AT&T or Verizon because they think it's the best network. In small markets and rural areas, our market share is 24%. We're in a very, very early innings there. Enterprise, our market share is in the 10%-15% range. Massive opportunity there. Broadband, we talked about at the Capital Markets Day, we have the opportunity to get to close to 20 million customers by 2030. Then there's all the new businesses we're incubating, things like financial services, also the possibilities with edge AI and physical AI. There's a lot of growth ahead of us, and the heart of that growth is stoking differentiation. What I'm focused on is making sure that we stay streets ahead on best network, best value, best experience. The network perception, you called out, you know, the 20 million network seekers, right, that aren't yet T-Mobile subs. First quarter you saw the highest-ever share of switchers citing network quality. Beyond the passage of time and, you know, marketing and ad spend, what specifically closes the residual perception gap? Help us think about maybe realistic timeline too, when you could possibly fully neutralize that. That journey is well on its way, and you say with every passing day we get more recognition for it. Things like the Ookla Speed test, which is, you know, half a billion data points across the country. This is not kind of a drive test where you have 50 people driving around and trying to figure out who the best network is. This is billions of data points from actual customers. You've seen J.D. Power, where after 22 years, we claimed the best network position. We're getting more and more recognition from it. The thing we're learning that we're now scaling is ultimately changing network perception is about what the network means for you. Right. Right? 'Cause nobody really cares about America's best network beyond a point. Network differentiation happens when you experience it, when our network is demonstratively superior where you work, where you live, and where you play. We're getting to the place now we're able to target people at an individual level and demonstrate to them network superiority, and that's really what creates this acceleration. I don't look at this as a point of, you know, we will arrive at some point, which is the truth. The reality is we will make a lot of share gain along the way. 20 million accounts, families, businesses. Right Is a lot of runway. Just think of it this year with our guidance, you're talking a million and change accounts. That's a lot of years of growth left for us. Any update in terms of maybe what you're observing in May or since the earnings call in terms of just promotional intensity across the, you know, across the ecosystem? You know, you are still confident in customer lifetime values being maintained at appropriate levels. I guess what's underpinning the confidence that led you to raise your postpaid net add guidance after the first quarter? I think we spend a lot of time obsessing about promotions and competitive intensity at the margin. Sure, it's important, if you think of it, right, there is a flow of where the water's going and then there's kind of perturbations on top. The flow of where the water is going is based on differentiation. When you have 20% higher NPS, when you have best network, best value, best experience, there's a natural demand pool that's heading in our direction. That at its core is what gets us comfortable with raising postpaid guide. You said something really important there though, 'cause our true north on how many nets we do in terms of accounts in any quarter gets driven by our view of CLV. Yep. You saw first quarter, 6% higher accounts than last year. We didn't talk about this at great length, but also better value. Our port-in ARPA was 20% higher than our port-out ARPA. When you look at competitive intensity, yeah, sure, December promo was more intense, but as we worked through the first quarter, we saw value in going after more accounts 'cause the CLVs were strong. We were looking at our port-in ARPA versus our port-out ARPA. All of that filled us with confidence that we were booking stuff that had really strong CLVs. Quarter two is going really well. Great. You touched on SMRA, you know, share hit 24% in the first quarter. This is, I think, your 12th consecutive quarter of win share leadership, if I'm not mistaken. Just beyond word of mouth, I mean, what's resonating in these markets? Is it distribution efforts, brand? I guess, I mean, what's a long-term ceiling if you'd have, if you'd have to frame it for investors? Can I start with the second piece? Yes, sir. This theory of a long-term ceiling kind of assumes no differentiation. Right. There's this view of the world that if there are three players, everyone sits at 33% share. That assumes all three are the same. The reality is when you've got best network, best value, best experience, all three are not the same. You look at the city of New York, we have above 50% market share there. That's what happens when you bring the three things together. Not suggesting that SMRA is gonna get a 50% share, but you know, it, we're at a very, very early innings in SMRA. In terms of what we do differently in SMRA, what we're seeing is, you know, an underappreciated thing in wireless is the network effect. That's just a bad pun, but what I mean by that is when you get to something like 24%, 25% share, you get more and more word of mouth. That creates its own upward spiral where you're seeing more and more people talking to each other about the fact that the network is distinctly superior. What we've done really well in SMRA is combine the network expansion with the distribution expansion and localized marketing. Things like Friday Night 5G Lights, where we go into a small town, there's a $1 million award for fixing the football ground. Last year we had hundreds, thousands of small towns competing for this. Small town called Dierks in Arkansas, with a population of less than 2,000, got two million votes, right? That starts giving you a really local presence and local word of mouth. Interesting. I was not aware of that program. Pretty cool. Yeah. Um- It was actually in Dierks, Arkansas with Gronk. That was quite an experience. Oh, yeah? I have to look that up. You've always anchored on the best network, which we just have been touching on, at the best value. Should we read that the 2026 guide, you know, from an ARPA perspective, I apologize. Should we assume that the 2026 ARPA guide embeds a rate action at some point this year? I guess more broadly, what's the composition of the 2%, 2.5%-3% ARPA growth, and how much is pricing versus mix in terms of features? I'm not going to break up the 2.5%-3%. Let me give you directionally how we think about this thing. We guard our value leadership zealously. Now we've strategically architected our portfolio so that we have something that's quite rare in the telecoms business. We have a front book that's higher priced than our back book, which means, our existing customers actually pay less than our new customers. That just means even volume growth is ARPA accretive. The way we think about the sources of ARPA growth is we've got three distinct sources of ARPA growth. Number one, this front book, back book dynamic, which is even as we grow volume, we actually grow ARPA. Number two, expanding the nature of the relationship with our customers, which is kind of why this 20% higher NPS at 45 makes a big difference because people don't buy more things from you unless they're incredibly satisfied with the things that they've already bought. The last, and traditionally our smallest, has been thoughtful more for more rate optimizations. That's the formula you should expect to play out, not just over this year, but over the years of our thinking. Shifting gears to the broadband business and FWA. T-Mobile was again the fastest growing ISP in the first quarter, with 500,000+ broadband adds and with FWA re-accelerating year-over-year. I guess, what's driving that inflection and how is the competitive backdrop evolving now that Verizon appears to maybe be de-emphasizing FWA a bit and AT&T, you know, kind of scaling their efforts? Ultimately, it's really simple. It's an incredible product. You look at this business, right? Over the last two years, our number of customers has doubled, usage per customer has gone up 25%, and our median download speeds have gone up 50%, and they're 50% higher than our nearest competitor. What you have is an incredibly easy-to-use product. In fact, on some of our newest generation routers on Wi-Fi, right? This is not when you plug in fiber Ethernet into your computer or whatever. On Wi-Fi, we're getting 400 Mbps download, which is why our NPS is actually higher than fiber. It's just an incredible product powered by an ultra-capacity network. That's what's been driving a lot of our volume. I guess a persistent bear case that we continue to hear about less so, but is that FWA can't scale sustainably just given data usage growth curves. I guess, what leading indicators give you confidence that capacity stays ahead of demand? I guess, what are the, you know, what are the release valves if utilization tightens in specific markets? Let's talk about, you know, we talked about 15 million customers by the end of 2030. How did we get to that math? Here's what we do. We divide the country into 36 million hex bins. These are small geographic areas, typically covered by a sector or even less than a sector. For each of these areas, we look at the growth in wireless usage based on historic data and then take a conservative view going forward. And we focus that growth entirely between seven to nine at night because that's our busy hour. That's what matters as a binding constraint. We take that and block that capacity off. That is only for wireless. Everything else in the network is what we call fallow capacity. Yeah. The way we got to 15 million was we took that fallow capacity and then capped market shares. We said, "What's a reasonable market share?" Because purely because I can supply it doesn't mean there'll be demand. We capped that market share, and that gets us to 15 million assuming no incremental capacity, no incremental spectrum purchases, assuming no incremental spectral efficiency, right? That's how we get to 15 million, which is why I'm super confident of our ability to deliver on that 15 million, 'cause we will end up seeing more spectrum, and we will use the fallow part of that spectrum. We will see spectral efficiency gains. We're already seeing massive spectral efficiency gains with 5G Advanced. Right. That's before we even think about, you know. 6G coming. 6G. Yeah. Got it. Shifting to the fiber JVs, you announced two new ones ahead of the 1Q call, adding, you know, call it roughly 1.8 million passings, I think, with Oak Hill and Wren House. I guess, what made these the right partners, and what's the decision framework going forward as you think about JVs, you know, wholesale relationships, and maybe even deploying your own balance sheet for fiber M&A? Firstly, the way we think about fiber and broadband as a whole is not kind of some defensive rush to scale because we think this myth of convergence is gonna suddenly become relevant. It hasn't in the last 10 years. It's built into our run rate. People can talk about hypotheses on how convergence changes customer behavior. You look at the last 10 years, it simply hasn't happened. Our approach to fiber and fiber JVs has been to look at places where we can make double-digit IRRs, where we can scale fiber, those tend to be first to fiber areas. We do them as JVs because our partners bring incredibly value-valuable local experience in things like zoning, permitting, digging, et cetera. That'll continue to be our approach to rolling this out. When you look at our overall plans of $18 million, $19 million, that number will change with these new JVs up until 2030. It's important to remember that FWA is three-quarters of that, right? Right. Fiber plays an important role in our portfolio, but it's a role where we see where we look for places where fiber can genuinely create equity value and then double down on those with partnerships. How have your wholesale partnerships scaled or your partners scaled relative to initial expectations? Is there a preference emerging for JVs over wholesale opportunities? Look, if I talk about fiber as a whole, it's obviously very early days, right? Right. We're tracking well on our penetrations. We're getting 20% first-tier penetration. That's pretty incredible given that the vast majority of this is a greenfield fiber rollout. I'm not converting existing copper customers into fiber. Right. Right? That, that penetration's really strong, and of course, that means I get incremental value rather than ARR substitution, 'cause I'm not shutting down a copper plant to roll out fiber. In terms of preference, we like the JVs, and we will look at places where we get accretive JVs. Wholesale, depending on the structure of the deal, is a good fallback to that. We tend to be on fiber, very focused on value creation rather than kind of this is the scale we need to get to. Right. 'Cause, you know, the now, the homes passed number is a little irrelevant. It's a great segue to my next question. You've been clear that cable isn't a strategic priority and that the focus is on taking share from incumbents. Is there a scenario though, whether it be valuation, asset quality, market structure, that would change that calculus, or is cable structurally off the table? Look, I think of this stuff strategically first rather than valuation backwards. Cable is off the table from our perspective, right? The reason for that is kinda threefold. Number one, we're a growth company. Our DNA is the Un-carrier. Our DNA is changing the industry for the good of the customer. We don't play defensive. We don't like being in a place where we're the incumbent. We like being in a place where we're attacking the incumbent. The second piece is just front book, back book ARPUs, where cable's back book is so overpriced that you're spending your entire time chasing your tail. Yes. Right? Then you compete on the front book and you suddenly see spin down. Even if you get to positive net adds, you're in a place where value leakage happens. Third, you look at the speed at which wireless technology is developing, especially as you look at FWA rolling out in countries like India. Suddenly, the ecosystem becomes really exciting because you're getting CPEs cheaper. You're getting the ability to optimize your technology a lot more. At that combination, you'll compare that with where DOCSIS is going. That combination is what takes us to a place of no to cable. Just a quick follow-up on some of the fiber. You talked about the getting to 20% year one penetration, which is great. From a build perspective, I mean, how's that? Is that ramping on schedule? You know, any early learnings in the markets? We're seeing good performance on using our distribution. We're seeing good performance on using the T brand, and it's very early doors on fiber. Got it. Okay. Shifting gears. At the CMD in February, you framed a $2.7 billion cumulative cost savings target by year-end 2027. I think Peter touched on the call weighted maybe a little bit towards later stages of 2026 and beyond. Maybe help us think about from a initiative perspective, what's already in flight versus still to come, and maybe what are the largest buckets of savings opportunities? Yeah. Just one clarification. That was $2.7 billion by 2027. Yes. That doesn't mean that's gonna be the run rate going forward. This is obviously an accelerating run rate. You should expect even more going forward. In terms of places where we're seeing joy on this broader bucket of digital and AI, like firstly, it comes from a philosophy of we don't use digital and AI as, you know, shaving cost at the margin. We start by saying, "What can it do to fundamentally change our experience? What can it do?" Because very few customers actually walk into stores or call because they just wanna chat to us. They walk in the store or call because they have a problem. What digital and AI, especially with 24 million monthly actives on T Life, enables us to do is proactively address that problem before they call, or when they call, be able to deal with it quickly, efficiently, often through our voice bot. We, we made a promise at the last CMD of a 75% reduction in our call volume. We're well on track to deliver that. We're getting something like 60% containment with our IntentCX chatbot. One big source of savings and, more importantly, the next step in the customer experience is everything we're doing in care and retail. The second is the power of this taken to our software development, whether that's in network or IT, where we're seeing just incredible power in having some of our brightest engineers work with, you know, 20 agents, agentic interfaces, versus actually having them outsource a bunch of stuff. We're seeing some real movement there. Thirdly, on the network itself, I mean, when we had Winter Storm farm, that was the first scale use of AI to actually begin to do our antenna tilt remotely, right? Instead of having someone out there in the middle of a winter storm changing our antenna tilt. You're also beginning to see real innovation with things like live translate. I'd say we're well on track, on our not just our savings, but using this technology and being at the forefront of this technology to change the experience. Think, talking about great, changing the experience, you recently announced an agreement in principle to form a joint venture with AT&T and Verizon aimed at eliminating wireless dead zones by pooling your spectrum and making it available to LEO satellite providers. I think, you know, the stated goals are enabling competition, standardization, helping amongst a fragmented market. Given that a definitive agreement is yet to be reached, maybe help walk us through the strategic rationale. I mean, why does the JV What does it accomplish that T-Mobile couldn't achieve on its own through your existing partnership? Does it, you know, how do you think about the playing field or the level- Very good. of differentiation going forward? This is very much in keeping with the Un-carrier ethos, right? What we've historically done is done two things very well. One, got out there and innovated to solve a genuine customer problem. Second, once we've had experience with that innovation, sat back and looked at it and said, "If we future cast this and look around corners, where does this go? Therefore, how do we wanna play? Yeah. That's the same story that's playing out with T-Satellite. We worked really closely with SpaceX Starlink. We have a great partnership, we've now extended some of that to broadband, to build a new category, which was Direct to Cell. We've had lots of experience of how that category is playing out. Long story short, it's clear that this is going to be a fundamentally complementary category. I mean, just to give you an example, we looked at our data in May, and satellite usage is 0.0002% of our total network usage. That's three zeros, right? So it's clearly a complementary use case. We are seeing it largely focused on the national parks, that sort of territory. You look back and say, "Clear we built this product, it provides value, it does help end dead zones, and it's going to be a complementary product." How do we see this industry playing out? You're seeing more and more that there's gonna be probably three players in space. That, when I future cast this industry, I look at it and go, most consumer wireless, especially the premium offers, are gonna land up having satellite connectivity linked to it, right? We've also seen very little take-up of a la carte connectivity. Okay. Right? Pretty much no one buys satellite standalone. They buy it as part of the premium package, which gives you a bunch of other benefits, global roaming, ad-free Netflix, et cetera, et cetera. I look at it and go, "This is gonna become a standard part of most premium offerings from all players, and there'll be enough supply of it. This is no longer gonna be a source of differentiation." However, there are real problems to be solved. Problems like device ecosystem, right? Some devices support it, some don't. There isn't a uniform device ecosystem. Problems like IP, right? Standardized interfaces and standardized ways in which consumers can get access to the service. Problems like standardized spectrum. Now, you may ask the question of, if it's 0.0002%, why do you need spectrum? Right. The reality is, in hotspots, like in the national parks, you do need spectrum. Right. Because of the distribution of spectrum, I might own the right spectrum outside Zion National, and Verizon might have it over Yellowstone, right? Which doesn't help the customer. Yeah. Bringing it together creates a uniform spectrum world where we can pool in that spectrum. All of that standardization plus aggregation of demand, which for the smaller satellite players is critical, or for the recent entrants is critical, creates a satellite ecosystem that allows the American customer to get wireless plus satellite as part of a standardized package. We will compete, obviously, as providers in terms of how we innovate around that. As we look around corners, the differentiation doesn't exist, and this is about creating an efficient wholesale infrastructure. How do you think about the risk that a D2D provider eventually goes direct to consumer, whether through a build-out or an MVNO? I think you've made your, you know, views on how an MVNO with a D2D provider may or may not play out. Let's start with the MVNO first. I think I've been really clear, that's not something we're interested in. Yeah. We have criteria around how we pick an MVNO. It needs to be an incremental TAM, and we don't see how this gives us an incremental TAM. We deal with the D2D, D2C, I think there's a real danger here that as we get lost talking technology, the real question is what is the meaningful gap from a customer perspective in this market? Is there a significant, large, meaningful gap that's not being addressed? Right. Right? I think as we bring satellite and wireless together to address dead zones, I think that does address a customer need. If you think about the, in the non-dead zone areas, I'd almost frame the question to you, what do you think is the gap that D2D or D2C would address that's not being addressed by terrestrial? We can have an informed conversation on technology. Starting technology first, could there be a D2C product? Yeah. Look at the take-up of a la carte satellite, right? I'm more intrigued in what's the problem to solve. Right. That's fair. Now shifting to the network, on the Figure AI partnership, what differentiated capabilities does T-Mobile's network or platform bring to physical AI versus peers? I guess, where do you see the earliest, you know, commercial scale use cases playing out? Yeah. Look, I think the commercial scale, I think 6G we will start the journey somewhere, at least T-Mobile will, because we're well ahead on 5G. We will start the journey, I'd say 2028. For it to be at scale, you're looking at about 2030. Why we're excited by Figure AI is what our technology does in the wireless world, and we're already seeing some of this with 5G Advanced, is for physical AI to work, you need kinda three things: low latency, 'cause otherwise it's really hard, the robots will be banging into each other on the factory floor, which is not a pleasant thought, right? The second piece it does bring is voice built-in. As physical AI scales, the need to interact with robots, humanoids, drone delivery, et cetera, et cetera, will need voice built into the core network. Thirdly, you'd need the drones or the humanoids to communicate with each other, which is only possible with a low latency network. You'd need this thing we refer to as space-time coherence, which is you need to be able to know where any device is at an exact point in time. You need to know both the space and the time that you're communicating with it, right? You think of physical AI more broadly, it's only going to be possible with a low latency wireless network. Today there's only one player across America who has 5G Advanced across the country, and that's us. That sets us up in a beautiful place to get to 6G and all of the benefits of physical AI. With C-band not yet fully deployed, and I think you still have some mid-band refarming ongoing, how's T-Mobile positioning for the upper C-band auction that's expected in 2027? I guess, how do you plan on, you know, just think about the further pipeline to 800 MHz? Yeah coming to market longer term. I think the, the pipeline's really exciting, and I think Brendan Carr and the FCC have done a phenomenal job, in, you know, releasing trapped spectrum across the board and also bringing more spectrum to the market. That will enable true American leadership, in wireless technology. On the specific question of spectrum and auctions, I think there's kinda three principles that guide us. Number one, we will maintain spectrum leadership. Number two, we will be 6G leaders. Number three, we'll be extremely thoughtful on how we value spectrum. The way we've always valued spectrum, given that coverage is no longer that relevant, is really, look at a build versus buy, the cost of densification versus the cost of buying that spectrum. That's how we will continue valuing spectrum. When we value a spectrum like that, sometimes we look at some spectrum and say, "We're gonna walk away from that," like the EchoStar spectrum. You should expect us to absolutely be present, and those three principles will guide what we buy and how much. Well, that makes a lot of sense, I guess. We'll see once we have, I guess, visibility into how much upper C-band's coming to market. Seems like plenty of opportunities and, you know, great balance sheet to, relative to peers to kind of take advantage of some of that. We'll Definitely something to watch. On the 1Q call or just ahead of that, the board announced that you took 2026 total stockholder returns authorization up by $3.6 billion now to, quote, "as much as $18.2." As you think about the pullback in shares and the management team's view of intrinsic value, which you touch on, how are you weighing buyback versus the buyback pace versus other use cases, and what would shift that priority? I think we've had a very consistent and successful algorithm to capital allocation. We start with leverage. We assess what the right leverage is. We're still of the view that 2.5 is the right leverage. You look at everything that you need to do from an organic business perspective, and you look at things like M&A and spectrum. Our focus areas on M&A and spectrum have been really clear. M&A is focused on double-digit IRR opportunities and fiber. Spectrum, we've talked about what's coming. We've talked about also kind of specific spectrum deals that we've done. That funnels through to shareholder return. That's exactly the way we're consistently gonna look at it. That formula hasn't changed, and we don't see why it should change. I would be remiss not to ask about some recent headlines. I guess in regards to the potential there was the Bloomberg article or whomever that cited Deutsche Telekom's interest in pursuing a potential combination. Your comments from the call aside, I mean, any feedback or maybe what you're hearing from your largest shareholders and what are they telling you about, you know, a potential combination? I guess more broadly, we've talked about fiber M&A, but I guess what's the appetite for, you know, "transformish," transformational M&A more broadly? Yeah. I'll answer the second part and then come to the first. When most people ask me about transformation M&A, that's normally code for are you buying cable? Yes. I think I've been really clear on that. Yeah. I won't go back over that ground, right? On your question on the Bloomberg article, I'll say what Peter, myself, Tim have said over the last few days, right? Which is we won't comment on speculation, and nor is there anything to comment about really. On the back of the article, we did get a bunch of inbounds on governance. Just to clarify our governance in consistent with Delaware law, any such hypothetical transaction would need the majority of minorities, or the majority of what's called the undisinterested shareholders, and both DT and our board of directors have confirmed this. That's really all that there is to say. Got it. Understood. I guess maybe going back, talking about maintaining, you know, being a leader in 6G. Help us think about the development timeline there. Does it require a big new CapEx cycle? Is it more software or virtualization driven, just layered on top of the 5G Advanced infrastructure? Look, there's puts and takes, but the answer, the best answer we have so far is there's no fundamental change in capital intensity. The puts and takes are fairly simple. You'll need a new air interface. Yep. No indication that that's gonna be step function different. You'll end up having some AI compute, because this will be the first, the first wireless network that not only processes bits and bytes, but also processes tokens. The idea would be to look at fallow compute or to build a 6G network which has the same cost structure or an AI-enabled network that has the same cost structure as a 5G network. I think there's a lot of indication that a lot more innovation will happen on the core, which will balance out some of it. On balance, I don't see any change in the direction of capital intensity. Great. Well, Srini, thank you for the time. Thank you Thanks for joining us. Pleasure. Thank you. Thank you so much. Thanks, everybody. Thanks.

Speaker 1: Good afternoon, everyone. I'm Sebastiano Petti, and I cover the telecom, cable, and satellite space at J.P. Morgan. I wanna welcome T-Mobile's CEO, Srinivasan Gopalan. Srini, thanks for being with us today. Good afternoon, everyone. good afternoon everyone I'm Sebastiano Petti, and I cover the telecom, cable, and satellite space at J.P. i'm sebastiano petti and i cover the telecom cable and satellite space at j.p Morgan. morgan I wanna welcome T-Mobile's CEO, Srinivasan Gopalan. i wanna welcome t-mobile's ceo srinivasan gopalan Srini, thanks for being with us today. srini thanks for being with us today

Speaker 2: Thanks for having me here. Just before we get started, I'd like to draw your attention to our safe harbor statement that I will be making forward-looking statements and using non-GAAP measures. Delighted to be here. Thanks for having me here. thanks for having me here Just before we get started, I'd like to draw your attention to our safe harbor statement that I will be making forward-looking statements and using non-GAAP measures. just before we get started i'd like to draw your attention to our safe harbor statement that i will be making forward-looking statements and using non-gaap measures Delighted to be here. delighted to be here

Speaker 1: Thank you. Thanks for joining us. I think it's your first time at the conference. Great. Srini, since the February capital markets update which reset multi-year guidance to reflect, you know, not only recent M&A but as well as improving underlying trends, T-Mobile followed up with a strong first quarter print. What are the two to three priorities you're most focused on executing against, I guess, over the guidance horizon? Thank you. thank you Thanks for joining us. thanks for joining us I think it's your first time at the conference. i think it's your first time at the conference Great. great Srini, since the February capital markets update which reset multi-year guidance to reflect, you know, not only recent M&A but as well as improving underlying trends, T-Mobile followed up with a strong first quarter print. srini since the february capital markets update which reset multi-year guidance to reflect you know not only recent m&a but as well as improving underlying trends t-mobile followed up with a strong first quarter print What are the two to three priorities you're most focused on executing against, I guess, over the guidance horizon? what are the two to three priorities you're most focused on executing against i guess over the guidance horizon

Speaker 2: Yeah. Thanks. Look, the heart of what drives our outsized growth, both revenue but also financial and funnels into industry-leading free cash flow, is differentiation. Right? Our NPS is today, 20% higher than that of AT&T and Verizon, and the heart of that is being able to bring together best network, best value, and best experience. What I'm really focused on is widening that differentiation. In networks, that's going from 5G to 6G, that's driving 5G Advanced. In terms of protecting our position on best value, that's providing value not just once in two years but on an everyday basis. On best experience, the heart of our best experience has been our people. Now we're augmenting them with digital and AI. Yeah. yeah Thanks. thanks Look, the heart of what drives our outsized growth, both revenue but also financial and funnels into industry-leading free cash flow, is differentiation. look the heart of what drives our outsized growth both revenue but also financial and funnels into industry-leading free cash flow is differentiation Right? right Our NPS is today, 20% higher than that of AT&T and Verizon, and the heart of that is being able to bring together best network, best value, and best experience. our nps is today 20% higher than that of at&t and verizon and the heart of that is being able to bring together best network best value and best experience What I'm really focused on is widening that differentiation. what i'm really focused on is widening that differentiation In networks, that's going from 5G to 6G, that's driving 5G Advanced. in networks that's going from 5g to 6g that's driving 5g advanced In terms of protecting our position on best value, that's providing value not just once in two years but on an everyday basis. in terms of protecting our position on best value that's providing value not just once in two years but on an everyday basis On best experience, the heart of our best experience has been our people. on best experience the heart of our best experience has been our people Now we're augmenting them with digital and AI. now we're augmenting them with digital and ai The reason that differentiation is so central to the way I see the world is all of the outsized growth, and I'll just give you a few examples. We've got 20 million businesses and families who are still using AT&T or Verizon because they think it's the best network. In small markets and rural areas, our market share is 24%. We're in a very, very early innings there. Enterprise, our market share is in the 10%-15% range. Massive opportunity there. Broadband, we talked about at the Capital Markets Day, we have the opportunity to get to close to 20 million customers by 2030. Then there's all the new businesses we're incubating, things like financial services, also the possibilities with edge AI and physical AI. The reason that differentiation is so central to the way I see the world is all of the outsized growth, and I'll just give you a few examples. the reason that differentiation is so central to the way i see the world is all of the outsized growth and i'll just give you a few examples We've got 20 million businesses and families who are still using AT&T or Verizon because they think it's the best network. we've got 20 million businesses and families who are still using at&t or verizon because they think it's the best network In small markets and rural areas, our market share is 24%. in small markets and rural areas our market share is 24% We're in a very, very early innings there. we're in a very very early innings there Enterprise, our market share is in the 10%-15% range. enterprise our market share is in the 10%-15% range Massive opportunity there. massive opportunity there Broadband, we talked about at the Capital Markets Day, we have the opportunity to get to close to 20 million customers by 2030. broadband we talked about at the capital markets day we have the opportunity to get to close to 20 million customers by 2030 Then there's all the new businesses we're incubating, things like financial services, also the possibilities with edge AI and physical AI. then there's all the new businesses we're incubating things like financial services also the possibilities with edge ai and physical ai There's a lot of growth ahead of us, and the heart of that growth is stoking differentiation. What I'm focused on is making sure that we stay streets ahead on best network, best value, best experience. There's a lot of growth ahead of us, and the heart of that growth is stoking differentiation. there's a lot of growth ahead of us and the heart of that growth is stoking differentiation What I'm focused on is making sure that we stay streets ahead on best network, best value, best experience. what i'm focused on is making sure that we stay streets ahead on best network best value best experience

Speaker 1: The network perception, you called out, you know, the 20 million network seekers, right, that aren't yet T-Mobile subs. First quarter you saw the highest-ever share of switchers citing network quality. Beyond the passage of time and, you know, marketing and ad spend, what specifically closes the residual perception gap? Help us think about maybe realistic timeline too, when you could possibly fully neutralize that. The network perception, you called out, you know, the 20 million network seekers, right, that aren't yet T-Mobile subs. the network perception you called out you know the 20 million network seekers right that aren't yet t-mobile subs First quarter you saw the highest-ever share of switchers citing network quality. first quarter you saw the highest-ever share of switchers citing network quality Beyond the passage of time and, you know, marketing and ad spend, what specifically closes the residual perception gap? beyond the passage of time and you know marketing and ad spend what specifically closes the residual perception gap Help us think about maybe realistic timeline too, when you could possibly fully neutralize that. help us think about maybe realistic timeline too when you could possibly fully neutralize that

Speaker 2: That journey is well on its way, and you say with every passing day we get more recognition for it. Things like the Ookla Speed test, which is, you know, half a billion data points across the country. This is not kind of a drive test where you have 50 people driving around and trying to figure out who the best network is. This is billions of data points from actual customers. You've seen J.D. Power, where after 22 years, we claimed the best network position. We're getting more and more recognition from it. The thing we're learning that we're now scaling is ultimately changing network perception is about what the network means for you. That journey is well on its way, and you say with every passing day we get more recognition for it. that journey is well on its way and you say with every passing day we get more recognition for it Things like the Ookla Speed test, which is, you know, half a billion data points across the country. things like the ookla speed test which is you know half a billion data points across the country This is not kind of a drive test where you have 50 people driving around and trying to figure out who the best network is. this is not kind of a drive test where you have 50 people driving around and trying to figure out who the best network is This is billions of data points from actual customers. this is billions of data points from actual customers You've seen J.D. you've seen j.d Power, where after 22 years, we claimed the best network position. power where after 22 years we claimed the best network position We're getting more and more recognition from it. we're getting more and more recognition from it The thing we're learning that we're now scaling is ultimately changing network perception is about what the network means for you. the thing we're learning that we're now scaling is ultimately changing network perception is about what the network means for you

Speaker 1: Right. Right. right

Speaker 2: Right? 'Cause nobody really cares about America's best network beyond a point. Network differentiation happens when you experience it, when our network is demonstratively superior where you work, where you live, and where you play. We're getting to the place now we're able to target people at an individual level and demonstrate to them network superiority, and that's really what creates this acceleration. I don't look at this as a point of, you know, we will arrive at some point, which is the truth. The reality is we will make a lot of share gain along the way. 20 million accounts, families, businesses. Right? 'Cause nobody really cares about America's best network beyond a point. right 'cause nobody really cares about america's best network beyond a point Network differentiation happens when you experience it, when our network is demonstratively superior where you work, where you live, and where you play. network differentiation happens when you experience it when our network is demonstratively superior where you work where you live and where you play We're getting to the place now we're able to target people at an individual level and demonstrate to them network superiority, and that's really what creates this acceleration. we're getting to the place now we're able to target people at an individual level and demonstrate to them network superiority and that's really what creates this acceleration I don't look at this as a point of, you know, we will arrive at some point, which is the truth. i don't look at this as a point of you know we will arrive at some point which is the truth The reality is we will make a lot of share gain along the way. 20 million accounts, families, businesses. the reality is we will make a lot of share gain along the way 20 million accounts families businesses

Speaker 1: Right Right right

Speaker 2: Is a lot of runway. Just think of it this year with our guidance, you're talking a million and change accounts. That's a lot of years of growth left for us. Is a lot of runway. is a lot of runway Just think of it this year with our guidance, you're talking a million and change accounts. just think of it this year with our guidance you're talking a million and change accounts That's a lot of years of growth left for us. that's a lot of years of growth left for us

Speaker 1: Any update in terms of maybe what you're observing in May or since the earnings call in terms of just promotional intensity across the, you know, across the ecosystem? You know, you are still confident in customer lifetime values being maintained at appropriate levels. I guess what's underpinning the confidence that led you to raise your postpaid net add guidance after the first quarter? Any update in terms of maybe what you're observing in May or since the earnings call in terms of just promotional intensity across the, you know, across the ecosystem? any update in terms of maybe what you're observing in may or since the earnings call in terms of just promotional intensity across the you know across the ecosystem You know, you are still confident in customer lifetime values being maintained at appropriate levels. you know you are still confident in customer lifetime values being maintained at appropriate levels I guess what's underpinning the confidence that led you to raise your postpaid net add guidance after the first quarter? i guess what's underpinning the confidence that led you to raise your postpaid net add guidance after the first quarter

Speaker 2: I think we spend a lot of time obsessing about promotions and competitive intensity at the margin. Sure, it's important, if you think of it, right, there is a flow of where the water's going and then there's kind of perturbations on top. The flow of where the water is going is based on differentiation. When you have 20% higher NPS, when you have best network, best value, best experience, there's a natural demand pool that's heading in our direction. That at its core is what gets us comfortable with raising postpaid guide. You said something really important there though, 'cause our true north on how many nets we do in terms of accounts in any quarter gets driven by our view of CLV. I think we spend a lot of time obsessing about promotions and competitive intensity at the margin. i think we spend a lot of time obsessing about promotions and competitive intensity at the margin Sure, it's important, if you think of it, right, there is a flow of where the water's going and then there's kind of perturbations on top. sure it's important if you think of it right there is a flow of where the water's going and then there's kind of perturbations on top The flow of where the water is going is based on differentiation. the flow of where the water is going is based on differentiation When you have 20% higher NPS, when you have best network, best value, best experience, there's a natural demand pool that's heading in our direction. when you have 20% higher nps when you have best network best value best experience there's a natural demand pool that's heading in our direction That at its core is what gets us comfortable with raising postpaid guide. that at its core is what gets us comfortable with raising postpaid guide You said something really important there though, 'cause our true north on how many nets we do in terms of accounts in any quarter gets driven by our view of CLV. you said something really important there though 'cause our true north on how many nets we do in terms of accounts in any quarter gets driven by our view of clv

Speaker 1: Yep. Yep. yep

Speaker 2: You saw first quarter, 6% higher accounts than last year. We didn't talk about this at great length, but also better value. Our port-in ARPA was 20% higher than our port-out ARPA. When you look at competitive intensity, yeah, sure, December promo was more intense, but as we worked through the first quarter, we saw value in going after more accounts 'cause the CLVs were strong. We were looking at our port-in ARPA versus our port-out ARPA. All of that filled us with confidence that we were booking stuff that had really strong CLVs. Quarter two is going really well. You saw first quarter, 6% higher accounts than last year. you saw first quarter 6% higher accounts than last year We didn't talk about this at great length, but also better value. we didn't talk about this at great length but also better value Our port-in ARPA was 20% higher than our port-out ARPA. our port-in arpa was 20% higher than our port-out arpa When you look at competitive intensity, yeah, sure, December promo was more intense, but as we worked through the first quarter, we saw value in going after more accounts 'cause the CLVs were strong. when you look at competitive intensity yeah sure december promo was more intense but as we worked through the first quarter we saw value in going after more accounts 'cause the clvs were strong We were looking at our port-in ARPA versus our port-out ARPA. we were looking at our port-in arpa versus our port-out arpa All of that filled us with confidence that we were booking stuff that had really strong CLVs. all of that filled us with confidence that we were booking stuff that had really strong clvs Quarter two is going really well. quarter two is going really well

Speaker 1: Great. You touched on SMRA, you know, share hit 24% in the first quarter. This is, I think, your 12th consecutive quarter of win share leadership, if I'm not mistaken. Just beyond word of mouth, I mean, what's resonating in these markets? Is it distribution efforts, brand? I guess, I mean, what's a long-term ceiling if you'd have, if you'd have to frame it for investors? Great. great You touched on SMRA, you know, share hit 24% in the first quarter. you touched on smra you know share hit 24% in the first quarter This is, I think, your 12th consecutive quarter of win share leadership, if I'm not mistaken. this is i think your 12th consecutive quarter of win share leadership if i'm not mistaken Just beyond word of mouth, I mean, what's resonating in these markets? just beyond word of mouth i mean what's resonating in these markets Is it distribution efforts, brand? is it distribution efforts brand I guess, I mean, what's a long-term ceiling if you'd have, if you'd have to frame it for investors? i guess i mean what's a long-term ceiling if you'd have if you'd have to frame it for investors

Speaker 2: Can I start with the second piece? Can I start with the second piece? can i start with the second piece

Speaker 1: Yes, sir. Yes, sir. yes sir

Speaker 2: This theory of a long-term ceiling kind of assumes no differentiation. This theory of a long-term ceiling kind of assumes no differentiation. this theory of a long-term ceiling kind of assumes no differentiation

Speaker 1: Right. Right. right

Speaker 2: There's this view of the world that if there are three players, everyone sits at 33% share. That assumes all three are the same. The reality is when you've got best network, best value, best experience, all three are not the same. You look at the city of New York, we have above 50% market share there. That's what happens when you bring the three things together. Not suggesting that SMRA is gonna get a 50% share, but you know, it, we're at a very, very early innings in SMRA. In terms of what we do differently in SMRA, what we're seeing is, you know, an underappreciated thing in wireless is the network effect. There's this view of the world that if there are three players, everyone sits at 33% share. there's this view of the world that if there are three players everyone sits at 33% share That assumes all three are the same. that assumes all three are the same The reality is when you've got best network, best value, best experience, all three are not the same. the reality is when you've got best network best value best experience all three are not the same You look at the city of New York, we have above 50% market share there. you look at the city of new york we have above 50% market share there That's what happens when you bring the three things together. that's what happens when you bring the three things together Not suggesting that SMRA is gonna get a 50% share, but you know, it, we're at a very, very early innings in SMRA. not suggesting that smra is gonna get a 50% share but you know it we're at a very very early innings in smra In terms of what we do differently in SMRA, what we're seeing is, you know, an underappreciated thing in wireless is the network effect. in terms of what we do differently in smra what we're seeing is you know an underappreciated thing in wireless is the network effect That's just a bad pun, but what I mean by that is when you get to something like 24%, 25% share, you get more and more word of mouth. That creates its own upward spiral where you're seeing more and more people talking to each other about the fact that the network is distinctly superior. What we've done really well in SMRA is combine the network expansion with the distribution expansion and localized marketing. Things like Friday Night 5G Lights, where we go into a small town, there's a $1 million award for fixing the football ground. Last year we had hundreds, thousands of small towns competing for this. Small town called Dierks in Arkansas, with a population of less than 2,000, got two million votes, right? That's just a bad pun, but what I mean by that is when you get to something like 24%, 25% share, you get more and more word of mouth. that's just a bad pun but what i mean by that is when you get to something like 24% 25% share you get more and more word of mouth That creates its own upward spiral where you're seeing more and more people talking to each other about the fact that the network is distinctly superior. that creates its own upward spiral where you're seeing more and more people talking to each other about the fact that the network is distinctly superior What we've done really well in SMRA is combine the network expansion with the distribution expansion and localized marketing. what we've done really well in smra is combine the network expansion with the distribution expansion and localized marketing Things like Friday Night 5G Lights, where we go into a small town, there's a $1 million award for fixing the football ground. things like friday night 5g lights where we go into a small town there's a $1 million award for fixing the football ground Last year we had hundreds, thousands of small towns competing for this. last year we had hundreds thousands of small towns competing for this Small town called Dierks in Arkansas, with a population of less than 2,000, got two million votes, right? small town called dierks in arkansas with a population of less than 2,000 got two million votes right That starts giving you a really local presence and local word of mouth. That starts giving you a really local presence and local word of mouth. that starts giving you a really local presence and local word of mouth

Speaker 1: Interesting. I was not aware of that program. Pretty cool. Interesting. interesting I was not aware of that program. i was not aware of that program Pretty cool. pretty cool

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Um- Um- um-

Speaker 2: It was actually in Dierks, Arkansas with Gronk. That was quite an experience. It was actually in Dierks, Arkansas with Gronk. it was actually in dierks arkansas with gronk That was quite an experience. that was quite an experience

Speaker 1: Oh, yeah? I have to look that up. You've always anchored on the best network, which we just have been touching on, at the best value. Should we read that the 2026 guide, you know, from an ARPA perspective, I apologize. Should we assume that the 2026 ARPA guide embeds a rate action at some point this year? I guess more broadly, what's the composition of the 2%, 2.5%-3% ARPA growth, and how much is pricing versus mix in terms of features? Oh, yeah? oh yeah I have to look that up. i have to look that up You've always anchored on the best network, which we just have been touching on, at the best value. you've always anchored on the best network which we just have been touching on at the best value Should we read that the 2026 guide, you know, from an ARPA perspective, I apologize. should we read that the 2026 guide you know from an arpa perspective i apologize Should we assume that the 2026 ARPA guide embeds a rate action at some point this year? should we assume that the 2026 arpa guide embeds a rate action at some point this year I guess more broadly, what's the composition of the 2%, 2.5%-3% ARPA growth, and how much is pricing versus mix in terms of features? i guess more broadly what's the composition of the 2% 2.5%-3% arpa growth and how much is pricing versus mix in terms of features

Speaker 2: I'm not going to break up the 2.5%-3%. Let me give you directionally how we think about this thing. We guard our value leadership zealously. Now we've strategically architected our portfolio so that we have something that's quite rare in the telecoms business. We have a front book that's higher priced than our back book, which means, our existing customers actually pay less than our new customers. That just means even volume growth is ARPA accretive. The way we think about the sources of ARPA growth is we've got three distinct sources of ARPA growth. Number one, this front book, back book dynamic, which is even as we grow volume, we actually grow ARPA. I'm not going to break up the 2.5%-3%. i'm not going to break up the 2.5%-3% Let me give you directionally how we think about this thing. let me give you directionally how we think about this thing We guard our value leadership zealously. we guard our value leadership zealously Now we've strategically architected our portfolio so that we have something that's quite rare in the telecoms business. now we've strategically architected our portfolio so that we have something that's quite rare in the telecoms business We have a front book that's higher priced than our back book, which means, our existing customers actually pay less than our new customers. we have a front book that's higher priced than our back book which means our existing customers actually pay less than our new customers That just means even volume growth is ARPA accretive. that just means even volume growth is arpa accretive The way we think about the sources of ARPA growth is we've got three distinct sources of ARPA growth. the way we think about the sources of arpa growth is we've got three distinct sources of arpa growth Number one, this front book, back book dynamic, which is even as we grow volume, we actually grow ARPA. number one this front book back book dynamic which is even as we grow volume we actually grow arpa Number two, expanding the nature of the relationship with our customers, which is kind of why this 20% higher NPS at 45 makes a big difference because people don't buy more things from you unless they're incredibly satisfied with the things that they've already bought. The last, and traditionally our smallest, has been thoughtful more for more rate optimizations. That's the formula you should expect to play out, not just over this year, but over the years of our thinking. Number two, expanding the nature of the relationship with our customers, which is kind of why this 20% higher NPS at 45 makes a big difference because people don't buy more things from you unless they're incredibly satisfied with the things that they've already bought. number two expanding the nature of the relationship with our customers which is kind of why this 20% higher nps at 45 makes a big difference because people don't buy more things from you unless they're incredibly satisfied with the things that they've already bought The last, and traditionally our smallest, has been thoughtful more for more rate optimizations. the last and traditionally our smallest has been thoughtful more for more rate optimizations That's the formula you should expect to play out, not just over this year, but over the years of our thinking. that's the formula you should expect to play out not just over this year but over the years of our thinking

Speaker 1: Shifting gears to the broadband business and FWA. T-Mobile was again the fastest growing ISP in the first quarter, with 500,000+ broadband adds and with FWA re-accelerating year-over-year. I guess, what's driving that inflection and how is the competitive backdrop evolving now that Verizon appears to maybe be de-emphasizing FWA a bit and AT&T, you know, kind of scaling their efforts? Shifting gears to the broadband business and FWA. shifting gears to the broadband business and fwa T-Mobile was again the fastest growing ISP in the first quarter, with 500,000+ broadband adds and with FWA re-accelerating year-over-year. t-mobile was again the fastest growing isp in the first quarter with 500,000+ broadband adds and with fwa re-accelerating year-over-year I guess, what's driving that inflection and how is the competitive backdrop evolving now that Verizon appears to maybe be de-emphasizing FWA a bit and AT&T, you know, kind of scaling their efforts? i guess what's driving that inflection and how is the competitive backdrop evolving now that verizon appears to maybe be de-emphasizing fwa a bit and at&t you know kind of scaling their efforts

Speaker 2: Ultimately, it's really simple. It's an incredible product. You look at this business, right? Over the last two years, our number of customers has doubled, usage per customer has gone up 25%, and our median download speeds have gone up 50%, and they're 50% higher than our nearest competitor. What you have is an incredibly easy-to-use product. In fact, on some of our newest generation routers on Wi-Fi, right? This is not when you plug in fiber Ethernet into your computer or whatever. On Wi-Fi, we're getting 400 Mbps download, which is why our NPS is actually higher than fiber. It's just an incredible product powered by an ultra-capacity network. That's what's been driving a lot of our volume. Ultimately, it's really simple. ultimately it's really simple It's an incredible product. it's an incredible product You look at this business, right? you look at this business right Over the last two years, our number of customers has doubled, usage per customer has gone up 25%, and our median download speeds have gone up 50%, and they're 50% higher than our nearest competitor. over the last two years our number of customers has doubled usage per customer has gone up 25% and our median download speeds have gone up 50% and they're 50% higher than our nearest competitor What you have is an incredibly easy-to-use product. what you have is an incredibly easy-to-use product In fact, on some of our newest generation routers on Wi-Fi, right? in fact on some of our newest generation routers on wi-fi right This is not when you plug in fiber Ethernet into your computer or whatever. this is not when you plug in fiber ethernet into your computer or whatever On Wi-Fi, we're getting 400 Mbps download, which is why our NPS is actually higher than fiber. on wi-fi we're getting 400 mbps download which is why our nps is actually higher than fiber It's just an incredible product powered by an ultra-capacity network. it's just an incredible product powered by an ultra-capacity network That's what's been driving a lot of our volume. that's what's been driving a lot of our volume

Speaker 1: I guess a persistent bear case that we continue to hear about less so, but is that FWA can't scale sustainably just given data usage growth curves. I guess, what leading indicators give you confidence that capacity stays ahead of demand? I guess, what are the, you know, what are the release valves if utilization tightens in specific markets? I guess a persistent bear case that we continue to hear about less so, but is that FWA can't scale sustainably just given data usage growth curves. i guess a persistent bear case that we continue to hear about less so but is that fwa can't scale sustainably just given data usage growth curves I guess, what leading indicators give you confidence that capacity stays ahead of demand? i guess what leading indicators give you confidence that capacity stays ahead of demand I guess, what are the, you know, what are the release valves if utilization tightens in specific markets? i guess what are the you know what are the release valves if utilization tightens in specific markets

Speaker 2: Let's talk about, you know, we talked about 15 million customers by the end of 2030. How did we get to that math? Here's what we do. We divide the country into 36 million hex bins. These are small geographic areas, typically covered by a sector or even less than a sector. For each of these areas, we look at the growth in wireless usage based on historic data and then take a conservative view going forward. And we focus that growth entirely between seven to nine at night because that's our busy hour. That's what matters as a binding constraint. We take that and block that capacity off. That is only for wireless. Everything else in the network is what we call fallow capacity. Let's talk about, you know, we talked about 15 million customers by the end of 2030. let's talk about you know we talked about 15 million customers by the end of 2030 How did we get to that math? how did we get to that math Here's what we do. here's what we do We divide the country into 36 million hex bins. we divide the country into 36 million hex bins These are small geographic areas, typically covered by a sector or even less than a sector. these are small geographic areas typically covered by a sector or even less than a sector For each of these areas, we look at the growth in wireless usage based on historic data and then take a conservative view going forward. for each of these areas we look at the growth in wireless usage based on historic data and then take a conservative view going forward And we focus that growth entirely between seven to nine at night because that's our busy hour. and we focus that growth entirely between seven to nine at night because that's our busy hour That's what matters as a binding constraint. that's what matters as a binding constraint We take that and block that capacity off. we take that and block that capacity off That is only for wireless. Everything else in the network is what we call fallow capacity. that is only for wireless. everything else in the network is what we call fallow capacity

Speaker 1: Yeah. Yeah. yeah

Speaker 2: The way we got to 15 million was we took that fallow capacity and then capped market shares. We said, "What's a reasonable market share?" Because purely because I can supply it doesn't mean there'll be demand. We capped that market share, and that gets us to 15 million assuming no incremental capacity, no incremental spectrum purchases, assuming no incremental spectral efficiency, right? That's how we get to 15 million, which is why I'm super confident of our ability to deliver on that 15 million, 'cause we will end up seeing more spectrum, and we will use the fallow part of that spectrum. We will see spectral efficiency gains. We're already seeing massive spectral efficiency gains with 5G Advanced. The way we got to 15 million was we took that fallow capacity and then capped market shares. the way we got to 15 million was we took that fallow capacity and then capped market shares We said, "What's a reasonable market share?" Because purely because I can supply it doesn't mean there'll be demand. we said "what's a reasonable market share?" because purely because i can supply it doesn't mean there'll be demand We capped that market share, and that gets us to 15 million assuming no incremental capacity, no incremental spectrum purchases, assuming no incremental spectral efficiency, right? we capped that market share and that gets us to 15 million assuming no incremental capacity no incremental spectrum purchases assuming no incremental spectral efficiency right That's how we get to 15 million, which is why I'm super confident of our ability to deliver on that 15 million, 'cause we will end up seeing more spectrum, and we will use the fallow part of that spectrum. that's how we get to 15 million which is why i'm super confident of our ability to deliver on that 15 million 'cause we will end up seeing more spectrum and we will use the fallow part of that spectrum We will see spectral efficiency gains. we will see spectral efficiency gains We're already seeing massive spectral efficiency gains with 5G Advanced. we're already seeing massive spectral efficiency gains with 5g advanced

Speaker 1: Right. That's before we even think about, you know. Right. right That's before we even think about, you know. that's before we even think about you know

Speaker 2: 6G coming. 6G coming. 6g coming

Speaker 1: 6G. 6G. 6g

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Got it. Shifting to the fiber JVs, you announced two new ones ahead of the 1Q call, adding, you know, call it roughly 1.8 million passings, I think, with Oak Hill and Wren House. I guess, what made these the right partners, and what's the decision framework going forward as you think about JVs, you know, wholesale relationships, and maybe even deploying your own balance sheet for fiber M&A? Got it. got it Shifting to the fiber JVs, you announced two new ones ahead of the 1Q call, adding, you know, call it roughly 1.8 million passings, I think, with Oak Hill and Wren House. shifting to the fiber jvs you announced two new ones ahead of the 1q call adding you know call it roughly 1.8 million passings i think with oak hill and wren house I guess, what made these the right partners, and what's the decision framework going forward as you think about JVs, you know, wholesale relationships, and maybe even deploying your own balance sheet for fiber M&A? i guess what made these the right partners and what's the decision framework going forward as you think about jvs you know wholesale relationships and maybe even deploying your own balance sheet for fiber m&a

Speaker 2: Firstly, the way we think about fiber and broadband as a whole is not kind of some defensive rush to scale because we think this myth of convergence is gonna suddenly become relevant. It hasn't in the last 10 years. It's built into our run rate. People can talk about hypotheses on how convergence changes customer behavior. You look at the last 10 years, it simply hasn't happened. Our approach to fiber and fiber JVs has been to look at places where we can make double-digit IRRs, where we can scale fiber, those tend to be first to fiber areas. We do them as JVs because our partners bring incredibly value-valuable local experience in things like zoning, permitting, digging, et cetera. That'll continue to be our approach to rolling this out. Firstly, the way we think about fiber and broadband as a whole is not kind of some defensive rush to scale because we think this myth of convergence is gonna suddenly become relevant. firstly the way we think about fiber and broadband as a whole is not kind of some defensive rush to scale because we think this myth of convergence is gonna suddenly become relevant It hasn't in the last 10 years. it hasn't in the last 10 years It's built into our run rate. it's built into our run rate People can talk about hypotheses on how convergence changes customer behavior. people can talk about hypotheses on how convergence changes customer behavior You look at the last 10 years, it simply hasn't happened. you look at the last 10 years it simply hasn't happened Our approach to fiber and fiber JVs has been to look at places where we can make double-digit IRRs, where we can scale fiber, those tend to be first to fiber areas. our approach to fiber and fiber jvs has been to look at places where we can make double-digit irrs where we can scale fiber those tend to be first to fiber areas We do them as JVs because our partners bring incredibly value-valuable local experience in things like zoning, permitting, digging, et cetera. we do them as jvs because our partners bring incredibly value-valuable local experience in things like zoning permitting digging et cetera That'll continue to be our approach to rolling this out. that'll continue to be our approach to rolling this out When you look at our overall plans of $18 million, $19 million, that number will change with these new JVs up until 2030. It's important to remember that FWA is three-quarters of that, right? When you look at our overall plans of $18 million, $19 million, that number will change with these new JVs up until 2030. when you look at our overall plans of $18 million, $19 million that number will change with these new jvs up until 2030 It's important to remember that FWA is three-quarters of that, right? it's important to remember that fwa is three-quarters of that right

Speaker 1: Right. Right. right

Speaker 2: Fiber plays an important role in our portfolio, but it's a role where we see where we look for places where fiber can genuinely create equity value and then double down on those with partnerships. Fiber plays an important role in our portfolio, but it's a role where we see where we look for places where fiber can genuinely create equity value and then double down on those with partnerships. fiber plays an important role in our portfolio but it's a role where we see where we look for places where fiber can genuinely create equity value and then double down on those with partnerships

Speaker 1: How have your wholesale partnerships scaled or your partners scaled relative to initial expectations? Is there a preference emerging for JVs over wholesale opportunities? How have your wholesale partnerships scaled or your partners scaled relative to initial expectations? how have your wholesale partnerships scaled or your partners scaled relative to initial expectations Is there a preference emerging for JVs over wholesale opportunities? is there a preference emerging for jvs over wholesale opportunities

Speaker 2: Look, if I talk about fiber as a whole, it's obviously very early days, right? Look, if I talk about fiber as a whole, it's obviously very early days, right? look if i talk about fiber as a whole it's obviously very early days right

Speaker 1: Right. Right. right

Speaker 2: We're tracking well on our penetrations. We're getting 20% first-tier penetration. That's pretty incredible given that the vast majority of this is a greenfield fiber rollout. I'm not converting existing copper customers into fiber. We're tracking well on our penetrations. we're tracking well on our penetrations We're getting 20% first-tier penetration. we're getting 20% first-tier penetration That's pretty incredible given that the vast majority of this is a greenfield fiber rollout. that's pretty incredible given that the vast majority of this is a greenfield fiber rollout I'm not converting existing copper customers into fiber. i'm not converting existing copper customers into fiber

Speaker 1: Right. Right. right

Speaker 2: Right? That, that penetration's really strong, and of course, that means I get incremental value rather than ARR substitution, 'cause I'm not shutting down a copper plant to roll out fiber. In terms of preference, we like the JVs, and we will look at places where we get accretive JVs. Wholesale, depending on the structure of the deal, is a good fallback to that. We tend to be on fiber, very focused on value creation rather than kind of this is the scale we need to get to. Right? right That, that penetration's really strong, and of course, that means I get incremental value rather than ARR substitution, 'cause I'm not shutting down a copper plant to roll out fiber. that that penetration's really strong and of course that means i get incremental value rather than arr substitution 'cause i'm not shutting down a copper plant to roll out fiber In terms of preference, we like the JVs, and we will look at places where we get accretive JVs. in terms of preference we like the jvs and we will look at places where we get accretive jvs Wholesale, depending on the structure of the deal, is a good fallback to that. wholesale depending on the structure of the deal is a good fallback to that We tend to be on fiber, very focused on value creation rather than kind of this is the scale we need to get to. we tend to be on fiber very focused on value creation rather than kind of this is the scale we need to get to

Speaker 1: Right. Right. right

Speaker 2: 'Cause, you know, the now, the homes passed number is a little irrelevant. 'Cause, you know, the now, the homes passed number is a little irrelevant. 'cause you know the now the homes passed number is a little irrelevant

Speaker 1: It's a great segue to my next question. You've been clear that cable isn't a strategic priority and that the focus is on taking share from incumbents. Is there a scenario though, whether it be valuation, asset quality, market structure, that would change that calculus, or is cable structurally off the table? It's a great segue to my next question. it's a great segue to my next question You've been clear that cable isn't a strategic priority and that the focus is on taking share from incumbents. you've been clear that cable isn't a strategic priority and that the focus is on taking share from incumbents Is there a scenario though, whether it be valuation, asset quality, market structure, that would change that calculus, or is cable structurally off the table? is there a scenario though whether it be valuation asset quality market structure that would change that calculus or is cable structurally off the table

Speaker 2: Look, I think of this stuff strategically first rather than valuation backwards. Cable is off the table from our perspective, right? The reason for that is kinda threefold. Number one, we're a growth company. Our DNA is the Un-carrier. Our DNA is changing the industry for the good of the customer. We don't play defensive. We don't like being in a place where we're the incumbent. We like being in a place where we're attacking the incumbent. The second piece is just front book, back book ARPUs, where cable's back book is so overpriced that you're spending your entire time chasing your tail. Look, I think of this stuff strategically first rather than valuation backwards. look i think of this stuff strategically first rather than valuation backwards Cable is off the table from our perspective, right? cable is off the table from our perspective right The reason for that is kinda threefold. the reason for that is kinda threefold Number one, we're a growth company. number one we're a growth company Our DNA is the Un-carrier. our dna is the un-carrier Our DNA is changing the industry for the good of the customer. our dna is changing the industry for the good of the customer We don't play defensive. we don't play defensive We don't like being in a place where we're the incumbent. we don't like being in a place where we're the incumbent We like being in a place where we're attacking the incumbent. we like being in a place where we're attacking the incumbent The second piece is just front book, back book ARPUs, where cable's back book is so overpriced that you're spending your entire time chasing your tail. the second piece is just front book back book arpus where cable's back book is so overpriced that you're spending your entire time chasing your tail

Speaker 1: Yes. Yes. yes

Speaker 2: Right? Then you compete on the front book and you suddenly see spin down. Even if you get to positive net adds, you're in a place where value leakage happens. Third, you look at the speed at which wireless technology is developing, especially as you look at FWA rolling out in countries like India. Suddenly, the ecosystem becomes really exciting because you're getting CPEs cheaper. You're getting the ability to optimize your technology a lot more. At that combination, you'll compare that with where DOCSIS is going. That combination is what takes us to a place of no to cable. Right? right Then you compete on the front book and you suddenly see spin down. then you compete on the front book and you suddenly see spin down Even if you get to positive net adds, you're in a place where value leakage happens. even if you get to positive net adds you're in a place where value leakage happens Third, you look at the speed at which wireless technology is developing, especially as you look at FWA rolling out in countries like India. third you look at the speed at which wireless technology is developing especially as you look at fwa rolling out in countries like india Suddenly, the ecosystem becomes really exciting because you're getting CPEs cheaper. suddenly the ecosystem becomes really exciting because you're getting cpes cheaper You're getting the ability to optimize your technology a lot more. you're getting the ability to optimize your technology a lot more At that combination, you'll compare that with where DOCSIS is going. at that combination you'll compare that with where docsis is going That combination is what takes us to a place of no to cable. that combination is what takes us to a place of no to cable

Speaker 1: Just a quick follow-up on some of the fiber. You talked about the getting to 20% year one penetration, which is great. From a build perspective, I mean, how's that? Is that ramping on schedule? You know, any early learnings in the markets? Just a quick follow-up on some of the fiber. just a quick follow-up on some of the fiber You talked about the getting to 20% year one penetration, which is great. you talked about the getting to 20% year one penetration which is great From a build perspective, I mean, how's that? from a build perspective i mean how's that Is that ramping on schedule? is that ramping on schedule You know, any early learnings in the markets? you know any early learnings in the markets

Speaker 2: We're seeing good performance on using our distribution. We're seeing good performance on using the T brand, and it's very early doors on fiber. We're seeing good performance on using our distribution. we're seeing good performance on using our distribution We're seeing good performance on using the T brand, and it's very early doors on fiber. we're seeing good performance on using the t brand and it's very early doors on fiber

Speaker 1: Got it. Okay. Shifting gears. At the CMD in February, you framed a $2.7 billion cumulative cost savings target by year-end 2027. I think Peter touched on the call weighted maybe a little bit towards later stages of 2026 and beyond. Maybe help us think about from a initiative perspective, what's already in flight versus still to come, and maybe what are the largest buckets of savings opportunities? Got it. got it Okay. okay Shifting gears. shifting gears At the CMD in February, you framed a $2.7 billion cumulative cost savings target by year-end 2027. at the cmd in february you framed a $2.7 billion cumulative cost savings target by year-end 2027 I think Peter touched on the call weighted maybe a little bit towards later stages of 2026 and beyond. i think peter touched on the call weighted maybe a little bit towards later stages of 2026 and beyond Maybe help us think about from a initiative perspective, what's already in flight versus still to come, and maybe what are the largest buckets of savings opportunities? maybe help us think about from a initiative perspective what's already in flight versus still to come and maybe what are the largest buckets of savings opportunities

Speaker 2: Yeah. Just one clarification. That was $2.7 billion by 2027. Yeah. yeah Just one clarification. just one clarification That was $2.7 billion by 2027. that was $2.7 billion by 2027

Speaker 1: Yes. Yes. yes

Speaker 2: That doesn't mean that's gonna be the run rate going forward. This is obviously an accelerating run rate. You should expect even more going forward. In terms of places where we're seeing joy on this broader bucket of digital and AI, like firstly, it comes from a philosophy of we don't use digital and AI as, you know, shaving cost at the margin. We start by saying, "What can it do to fundamentally change our experience? What can it do?" Because very few customers actually walk into stores or call because they just wanna chat to us. They walk in the store or call because they have a problem. That doesn't mean that's gonna be the run rate going forward. that doesn't mean that's gonna be the run rate going forward This is obviously an accelerating run rate. this is obviously an accelerating run rate You should expect even more going forward. you should expect even more going forward In terms of places where we're seeing joy on this broader bucket of digital and AI, like firstly, it comes from a philosophy of we don't use digital and AI as, you know, shaving cost at the margin. We start by saying, "What can it do to fundamentally change our experience? in terms of places where we're seeing joy on this broader bucket of digital and ai like firstly it comes from a philosophy of we don't use digital and ai as you know shaving cost at the margin. we start by saying "what can it do to fundamentally change our experience What can it do?" Because very few customers actually walk into stores or call because they just wanna chat to us. what can it do?" because very few customers actually walk into stores or call because they just wanna chat to us They walk in the store or call because they have a problem. they walk in the store or call because they have a problem What digital and AI, especially with 24 million monthly actives on T Life, enables us to do is proactively address that problem before they call, or when they call, be able to deal with it quickly, efficiently, often through our voice bot. We, we made a promise at the last CMD of a 75% reduction in our call volume. We're well on track to deliver that. We're getting something like 60% containment with our IntentCX chatbot. One big source of savings and, more importantly, the next step in the customer experience is everything we're doing in care and retail. What digital and AI, especially with 24 million monthly actives on T Life, enables us to do is proactively address that problem before they call, or when they call, be able to deal with it quickly, efficiently, often through our voice bot. what digital and ai especially with 24 million monthly actives on t life enables us to do is proactively address that problem before they call or when they call be able to deal with it quickly efficiently often through our voice bot We, we made a promise at the last CMD of a 75% reduction in our call volume. we we made a promise at the last cmd of a 75% reduction in our call volume We're well on track to deliver that. we're well on track to deliver that We're getting something like 60% containment with our IntentCX chatbot. we're getting something like 60% containment with our intentcx chatbot One big source of savings and, more importantly, the next step in the customer experience is everything we're doing in care and retail. one big source of savings and more importantly the next step in the customer experience is everything we're doing in care and retail The second is the power of this taken to our software development, whether that's in network or IT, where we're seeing just incredible power in having some of our brightest engineers work with, you know, 20 agents, agentic interfaces, versus actually having them outsource a bunch of stuff. We're seeing some real movement there. Thirdly, on the network itself, I mean, when we had Winter Storm farm, that was the first scale use of AI to actually begin to do our antenna tilt remotely, right? Instead of having someone out there in the middle of a winter storm changing our antenna tilt. You're also beginning to see real innovation with things like live translate. The second is the power of this taken to our software development, whether that's in network or IT, where we're seeing just incredible power in having some of our brightest engineers work with, you know, 20 agents, agentic interfaces, versus actually having them outsource a bunch of stuff. the second is the power of this taken to our software development whether that's in network or it where we're seeing just incredible power in having some of our brightest engineers work with you know 20 agents agentic interfaces versus actually having them outsource a bunch of stuff We're seeing some real movement there. we're seeing some real movement there Thirdly, on the network itself, I mean, when we had Winter Storm farm, that was the first scale use of AI to actually begin to do our antenna tilt remotely, right? thirdly on the network itself i mean when we had winter storm farm that was the first scale use of ai to actually begin to do our antenna tilt remotely right Instead of having someone out there in the middle of a winter storm changing our antenna tilt. instead of having someone out there in the middle of a winter storm changing our antenna tilt You're also beginning to see real innovation with things like live translate. you're also beginning to see real innovation with things like live translate I'd say we're well on track, on our not just our savings, but using this technology and being at the forefront of this technology to change the experience. I'd say we're well on track, on our not just our savings, but using this technology and being at the forefront of this technology to change the experience. i'd say we're well on track on our not just our savings but using this technology and being at the forefront of this technology to change the experience

Speaker 1: Think, talking about great, changing the experience, you recently announced an agreement in principle to form a joint venture with AT&T and Verizon aimed at eliminating wireless dead zones by pooling your spectrum and making it available to LEO satellite providers. I think, you know, the stated goals are enabling competition, standardization, helping amongst a fragmented market. Given that a definitive agreement is yet to be reached, maybe help walk us through the strategic rationale. I mean, why does the JV What does it accomplish that T-Mobile couldn't achieve on its own through your existing partnership? Does it, you know, how do you think about the playing field or the level- Think, talking about great, changing the experience, you recently announced an agreement in principle to form a joint venture with AT&T and Verizon aimed at eliminating wireless dead zones by pooling your spectrum and making it available to LEO satellite providers. think talking about great changing the experience you recently announced an agreement in principle to form a joint venture with at&t and verizon aimed at eliminating wireless dead zones by pooling your spectrum and making it available to leo satellite providers I think, you know, the stated goals are enabling competition, standardization, helping amongst a fragmented market. i think you know the stated goals are enabling competition standardization helping amongst a fragmented market Given that a definitive agreement is yet to be reached, maybe help walk us through the strategic rationale. given that a definitive agreement is yet to be reached maybe help walk us through the strategic rationale I mean, why does the JV What does it accomplish that T-Mobile couldn't achieve on its own through your existing partnership? i mean why does the jv what does it accomplish that t-mobile couldn't achieve on its own through your existing partnership Does it, you know, how do you think about the playing field or the level- does it you know how do you think about the playing field or the level-

Speaker 2: Very good. Very good. very good

Speaker 1: of differentiation going forward? of differentiation going forward? of differentiation going forward

Speaker 2: This is very much in keeping with the Un-carrier ethos, right? What we've historically done is done two things very well. One, got out there and innovated to solve a genuine customer problem. Second, once we've had experience with that innovation, sat back and looked at it and said, "If we future cast this and look around corners, where does this go? Therefore, how do we wanna play? This is very much in keeping with the Un-carrier ethos, right? this is very much in keeping with the un-carrier ethos right What we've historically done is done two things very well. what we've historically done is done two things very well One, got out there and innovated to solve a genuine customer problem. one got out there and innovated to solve a genuine customer problem Second, once we've had experience with that innovation, sat back and looked at it and said, "If we future cast this and look around corners, where does this go? second once we've had experience with that innovation sat back and looked at it and said "if we future cast this and look around corners where does this go Therefore, how do we wanna play? therefore how do we wanna play

Speaker 1: Yeah. Yeah. yeah

Speaker 2: That's the same story that's playing out with T-Satellite. We worked really closely with SpaceX Starlink. We have a great partnership, we've now extended some of that to broadband, to build a new category, which was Direct to Cell. We've had lots of experience of how that category is playing out. Long story short, it's clear that this is going to be a fundamentally complementary category. I mean, just to give you an example, we looked at our data in May, and satellite usage is 0.0002% of our total network usage. That's three zeros, right? So it's clearly a complementary use case. We are seeing it largely focused on the national parks, that sort of territory. That's the same story that's playing out with T-Satellite. that's the same story that's playing out with t-satellite We worked really closely with SpaceX Starlink. we worked really closely with spacex starlink We have a great partnership, we've now extended some of that to broadband, to build a new category, which was Direct to Cell. we have a great partnership we've now extended some of that to broadband to build a new category which was direct to cell We've had lots of experience of how that category is playing out. we've had lots of experience of how that category is playing out Long story short, it's clear that this is going to be a fundamentally complementary category. long story short it's clear that this is going to be a fundamentally complementary category I mean, just to give you an example, we looked at our data in May, and satellite usage is 0.0002% of our total network usage. i mean just to give you an example we looked at our data in may and satellite usage is 0.0002% of our total network usage That's three zeros, right? that's three zeros right So it's clearly a complementary use case. so it's clearly a complementary use case We are seeing it largely focused on the national parks, that sort of territory. we are seeing it largely focused on the national parks that sort of territory You look back and say, "Clear we built this product, it provides value, it does help end dead zones, and it's going to be a complementary product." How do we see this industry playing out? You're seeing more and more that there's gonna be probably three players in space. You look back and say, "Clear we built this product, it provides value, it does help end dead zones, and it's going to be a complementary product." How do we see this industry playing out? you look back and say "clear we built this product it provides value it does help end dead zones and it's going to be a complementary product." how do we see this industry playing out You're seeing more and more that there's gonna be probably three players in space. you're seeing more and more that there's gonna be probably three players in space That, when I future cast this industry, I look at it and go, most consumer wireless, especially the premium offers, are gonna land up having satellite connectivity linked to it, right? We've also seen very little take-up of a la carte connectivity. That, when I future cast this industry, I look at it and go, most consumer wireless, especially the premium offers, are gonna land up having satellite connectivity linked to it, right? that when i future cast this industry i look at it and go most consumer wireless especially the premium offers are gonna land up having satellite connectivity linked to it right We've also seen very little take-up of a la carte connectivity. we've also seen very little take-up of a la carte connectivity

Speaker 1: Okay. Okay. okay

Speaker 2: Right? Pretty much no one buys satellite standalone. They buy it as part of the premium package, which gives you a bunch of other benefits, global roaming, ad-free Netflix, et cetera, et cetera. I look at it and go, "This is gonna become a standard part of most premium offerings from all players, and there'll be enough supply of it. This is no longer gonna be a source of differentiation." However, there are real problems to be solved. Problems like device ecosystem, right? Some devices support it, some don't. There isn't a uniform device ecosystem. Problems like IP, right? Standardized interfaces and standardized ways in which consumers can get access to the service. Problems like standardized spectrum. Now, you may ask the question of, if it's 0.0002%, why do you need spectrum? Right? right Pretty much no one buys satellite standalone. pretty much no one buys satellite standalone They buy it as part of the premium package, which gives you a bunch of other benefits, global roaming, ad-free Netflix, et cetera, et cetera. they buy it as part of the premium package which gives you a bunch of other benefits global roaming ad-free netflix et cetera et cetera I look at it and go, "This is gonna become a standard part of most premium offerings from all players, and there'll be enough supply of it. i look at it and go "this is gonna become a standard part of most premium offerings from all players and there'll be enough supply of it This is no longer gonna be a source of differentiation." However, there are real problems to be solved. this is no longer gonna be a source of differentiation." however there are real problems to be solved Problems like device ecosystem, right? problems like device ecosystem right Some devices support it, some don't. some devices support it some don't There isn't a uniform device ecosystem. there isn't a uniform device ecosystem Problems like IP, right? problems like ip right Standardized interfaces and standardized ways in which consumers can get access to the service. standardized interfaces and standardized ways in which consumers can get access to the service Problems like standardized spectrum. problems like standardized spectrum Now, you may ask the question of, if it's 0.0002%, why do you need spectrum? now you may ask the question of if it's 0.0002% why do you need spectrum Right. The reality is, in hotspots, like in the national parks, you do need spectrum. Right. right The reality is, in hotspots, like in the national parks, you do need spectrum. the reality is in hotspots like in the national parks you do need spectrum

Speaker 1: Right. Right. right

Speaker 2: Because of the distribution of spectrum, I might own the right spectrum outside Zion National, and Verizon might have it over Yellowstone, right? Which doesn't help the customer. Because of the distribution of spectrum, I might own the right spectrum outside Zion National, and Verizon might have it over Yellowstone, right? because of the distribution of spectrum i might own the right spectrum outside zion national and verizon might have it over yellowstone right Which doesn't help the customer. which doesn't help the customer

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Bringing it together creates a uniform spectrum world where we can pool in that spectrum. All of that standardization plus aggregation of demand, which for the smaller satellite players is critical, or for the recent entrants is critical, creates a satellite ecosystem that allows the American customer to get wireless plus satellite as part of a standardized package. We will compete, obviously, as providers in terms of how we innovate around that. As we look around corners, the differentiation doesn't exist, and this is about creating an efficient wholesale infrastructure. Bringing it together creates a uniform spectrum world where we can pool in that spectrum. bringing it together creates a uniform spectrum world where we can pool in that spectrum All of that standardization plus aggregation of demand, which for the smaller satellite players is critical, or for the recent entrants is critical, creates a satellite ecosystem that allows the American customer to get wireless plus satellite as part of a standardized package. all of that standardization plus aggregation of demand which for the smaller satellite players is critical or for the recent entrants is critical creates a satellite ecosystem that allows the american customer to get wireless plus satellite as part of a standardized package We will compete, obviously, as providers in terms of how we innovate around that. we will compete obviously as providers in terms of how we innovate around that As we look around corners, the differentiation doesn't exist, and this is about creating an efficient wholesale infrastructure. as we look around corners the differentiation doesn't exist and this is about creating an efficient wholesale infrastructure

Speaker 1: How do you think about the risk that a D2D provider eventually goes direct to consumer, whether through a build-out or an MVNO? I think you've made your, you know, views on how an MVNO with a D2D provider may or may not play out. How do you think about the risk that a D2D provider eventually goes direct to consumer, whether through a build-out or an MVNO? how do you think about the risk that a d2d provider eventually goes direct to consumer whether through a build-out or an mvno I think you've made your, you know, views on how an MVNO with a D2D provider may or may not play out. i think you've made your you know views on how an mvno with a d2d provider may or may not play out

Speaker 2: Let's start with the MVNO first. I think I've been really clear, that's not something we're interested in. Let's start with the MVNO first. let's start with the mvno first I think I've been really clear, that's not something we're interested in. i think i've been really clear that's not something we're interested in

Speaker 1: Yeah. Yeah. yeah

Speaker 2: We have criteria around how we pick an MVNO. It needs to be an incremental TAM, and we don't see how this gives us an incremental TAM. We deal with the D2D, D2C, I think there's a real danger here that as we get lost talking technology, the real question is what is the meaningful gap from a customer perspective in this market? Is there a significant, large, meaningful gap that's not being addressed? We have criteria around how we pick an MVNO. we have criteria around how we pick an mvno It needs to be an incremental TAM, and we don't see how this gives us an incremental TAM. it needs to be an incremental tam and we don't see how this gives us an incremental tam We deal with the D2D, D2C, I think there's a real danger here that as we get lost talking technology, the real question is what is the meaningful gap from a customer perspective in this market? we deal with the d2d d2c, i think there's a real danger here that as we get lost talking technology the real question is what is the meaningful gap from a customer perspective in this market Is there a significant, large, meaningful gap that's not being addressed? is there a significant large meaningful gap that's not being addressed

Speaker 1: Right. Right. right

Speaker 2: Right? I think as we bring satellite and wireless together to address dead zones, I think that does address a customer need. If you think about the, in the non-dead zone areas, I'd almost frame the question to you, what do you think is the gap that D2D or D2C would address that's not being addressed by terrestrial? We can have an informed conversation on technology. Starting technology first, could there be a D2C product? Yeah. Look at the take-up of a la carte satellite, right? I'm more intrigued in what's the problem to solve. Right? right I think as we bring satellite and wireless together to address dead zones, I think that does address a customer need. i think as we bring satellite and wireless together to address dead zones i think that does address a customer need If you think about the, in the non-dead zone areas, I'd almost frame the question to you, what do you think is the gap that D2D or D2C would address that's not being addressed by terrestrial? if you think about the in the non-dead zone areas i'd almost frame the question to you what do you think is the gap that d2d or d2c would address that's not being addressed by terrestrial We can have an informed conversation on technology. we can have an informed conversation on technology Starting technology first, could there be a D2C product? starting technology first could there be a d2c product Yeah. yeah Look at the take-up of a la carte satellite, right? look at the take-up of a la carte satellite right I'm more intrigued in what's the problem to solve. i'm more intrigued in what's the problem to solve

Speaker 1: Right. That's fair. Now shifting to the network, on the Figure AI partnership, what differentiated capabilities does T-Mobile's network or platform bring to physical AI versus peers? I guess, where do you see the earliest, you know, commercial scale use cases playing out? Right. right That's fair. that's fair Now shifting to the network, on the Figure AI partnership, what differentiated capabilities does T-Mobile's network or platform bring to physical AI versus peers? now shifting to the network on the figure ai partnership what differentiated capabilities does t-mobile's network or platform bring to physical ai versus peers I guess, where do you see the earliest, you know, commercial scale use cases playing out? i guess where do you see the earliest you know commercial scale use cases playing out

Speaker 2: Yeah. Look, I think the commercial scale, I think 6G we will start the journey somewhere, at least T-Mobile will, because we're well ahead on 5G. We will start the journey, I'd say 2028. For it to be at scale, you're looking at about 2030. Why we're excited by Figure AI is what our technology does in the wireless world, and we're already seeing some of this with 5G Advanced, is for physical AI to work, you need kinda three things: low latency, 'cause otherwise it's really hard, the robots will be banging into each other on the factory floor, which is not a pleasant thought, right? The second piece it does bring is voice built-in. Yeah. yeah Look, I think the commercial scale, I think 6G we will start the journey somewhere, at least T-Mobile will, because we're well ahead on 5G. look i think the commercial scale i think 6g we will start the journey somewhere at least t-mobile will because we're well ahead on 5g We will start the journey, I'd say 2028. we will start the journey i'd say 2028 For it to be at scale, you're looking at about 2030. for it to be at scale you're looking at about 2030 Why we're excited by Figure AI is what our technology does in the wireless world, and we're already seeing some of this with 5G Advanced, is for physical AI to work, you need kinda three things: low latency, 'cause otherwise it's really hard, the robots will be banging into each other on the factory floor, which is not a pleasant thought, right? why we're excited by figure ai is what our technology does in the wireless world and we're already seeing some of this with 5g advanced is for physical ai to work you need kinda three things low latency 'cause otherwise it's really hard the robots will be banging into each other on the factory floor which is not a pleasant thought right The second piece it does bring is voice built-in. the second piece it does bring is voice built-in As physical AI scales, the need to interact with robots, humanoids, drone delivery, et cetera, et cetera, will need voice built into the core network. Thirdly, you'd need the drones or the humanoids to communicate with each other, which is only possible with a low latency network. You'd need this thing we refer to as space-time coherence, which is you need to be able to know where any device is at an exact point in time. You need to know both the space and the time that you're communicating with it, right? You think of physical AI more broadly, it's only going to be possible with a low latency wireless network. Today there's only one player across America who has 5G Advanced across the country, and that's us. As physical AI scales, the need to interact with robots, humanoids, drone delivery, et cetera, et cetera, will need voice built into the core network. as physical ai scales the need to interact with robots humanoids drone delivery et cetera et cetera will need voice built into the core network Thirdly, you'd need the drones or the humanoids to communicate with each other, which is only possible with a low latency network. thirdly you'd need the drones or the humanoids to communicate with each other which is only possible with a low latency network You'd need this thing we refer to as space-time coherence, which is you need to be able to know where any device is at an exact point in time. you'd need this thing we refer to as space-time coherence which is you need to be able to know where any device is at an exact point in time You need to know both the space and the time that you're communicating with it, right? you need to know both the space and the time that you're communicating with it right You think of physical AI more broadly, it's only going to be possible with a low latency wireless network. you think of physical ai more broadly it's only going to be possible with a low latency wireless network Today there's only one player across America who has 5G Advanced across the country, and that's us. today there's only one player across america who has 5g advanced across the country and that's us That sets us up in a beautiful place to get to 6G and all of the benefits of physical AI. That sets us up in a beautiful place to get to 6G and all of the benefits of physical AI. that sets us up in a beautiful place to get to 6g and all of the benefits of physical ai

Speaker 1: With C-band not yet fully deployed, and I think you still have some mid-band refarming ongoing, how's T-Mobile positioning for the upper C-band auction that's expected in 2027? I guess, how do you plan on, you know, just think about the further pipeline to 800 MHz? With C-band not yet fully deployed, and I think you still have some mid-band refarming ongoing, how's T-Mobile positioning for the upper C-band auction that's expected in 2027? with c-band not yet fully deployed and i think you still have some mid-band refarming ongoing how's t-mobile positioning for the upper c-band auction that's expected in 2027 I guess, how do you plan on, you know, just think about the further pipeline to 800 MHz? i guess how do you plan on you know just think about the further pipeline to 800 mhz

Speaker 2: Yeah Yeah yeah

Speaker 1: coming to market longer term. coming to market longer term. coming to market longer term

Speaker 2: I think the, the pipeline's really exciting, and I think Brendan Carr and the FCC have done a phenomenal job, in, you know, releasing trapped spectrum across the board and also bringing more spectrum to the market. That will enable true American leadership, in wireless technology. On the specific question of spectrum and auctions, I think there's kinda three principles that guide us. Number one, we will maintain spectrum leadership. Number two, we will be 6G leaders. Number three, we'll be extremely thoughtful on how we value spectrum. The way we've always valued spectrum, given that coverage is no longer that relevant, is really, look at a build versus buy, the cost of densification versus the cost of buying that spectrum. That's how we will continue valuing spectrum. I think the, the pipeline's really exciting, and I think Brendan Carr and the FCC have done a phenomenal job, in, you know, releasing trapped spectrum across the board and also bringing more spectrum to the market. i think the the pipeline's really exciting and i think brendan carr and the fcc have done a phenomenal job in you know releasing trapped spectrum across the board and also bringing more spectrum to the market That will enable true American leadership, in wireless technology. that will enable true american leadership in wireless technology On the specific question of spectrum and auctions, I think there's kinda three principles that guide us. on the specific question of spectrum and auctions i think there's kinda three principles that guide us Number one, we will maintain spectrum leadership. number one we will maintain spectrum leadership Number two, we will be 6G leaders. number two we will be 6g leaders Number three, we'll be extremely thoughtful on how we value spectrum. number three we'll be extremely thoughtful on how we value spectrum The way we've always valued spectrum, given that coverage is no longer that relevant, is really, look at a build versus buy, the cost of densification versus the cost of buying that spectrum. the way we've always valued spectrum given that coverage is no longer that relevant is really look at a build versus buy the cost of densification versus the cost of buying that spectrum That's how we will continue valuing spectrum. that's how we will continue valuing spectrum When we value a spectrum like that, sometimes we look at some spectrum and say, "We're gonna walk away from that," like the EchoStar spectrum. You should expect us to absolutely be present, and those three principles will guide what we buy and how much. When we value a spectrum like that, sometimes we look at some spectrum and say, "We're gonna walk away from that," like the EchoStar spectrum. when we value a spectrum like that sometimes we look at some spectrum and say "we're gonna walk away from that," like the echostar spectrum You should expect us to absolutely be present, and those three principles will guide what we buy and how much. you should expect us to absolutely be present and those three principles will guide what we buy and how much

Speaker 1: Well, that makes a lot of sense, I guess. We'll see once we have, I guess, visibility into how much upper C-band's coming to market. Seems like plenty of opportunities and, you know, great balance sheet to, relative to peers to kind of take advantage of some of that. We'll Definitely something to watch. Well, that makes a lot of sense, I guess. well that makes a lot of sense i guess We'll see once we have, I guess, visibility into how much upper C-band's coming to market. we'll see once we have i guess visibility into how much upper c-band's coming to market Seems like plenty of opportunities and, you know, great balance sheet to, relative to peers to kind of take advantage of some of that. seems like plenty of opportunities and you know great balance sheet to relative to peers to kind of take advantage of some of that We'll Definitely something to watch. we'll definitely something to watch On the 1Q call or just ahead of that, the board announced that you took 2026 total stockholder returns authorization up by $3.6 billion now to, quote, "as much as $18.2." As you think about the pullback in shares and the management team's view of intrinsic value, which you touch on, how are you weighing buyback versus the buyback pace versus other use cases, and what would shift that priority? On the 1Q call or just ahead of that, the board announced that you took 2026 total stockholder returns authorization up by $3.6 billion now to, quote, "as much as $18.2." As you think about the pullback in shares and the management team's view of intrinsic value, which you touch on, how are you weighing buyback versus the buyback pace versus other use cases, and what would shift that priority? on the 1q call or just ahead of that the board announced that you took 2026 total stockholder returns authorization up by $3.6 billion now to quote "as much as $18.2." as you think about the pullback in shares and the management team's view of intrinsic value which you touch on how are you weighing buyback versus the buyback pace versus other use cases and what would shift that priority

Speaker 2: I think we've had a very consistent and successful algorithm to capital allocation. We start with leverage. We assess what the right leverage is. We're still of the view that 2.5 is the right leverage. You look at everything that you need to do from an organic business perspective, and you look at things like M&A and spectrum. Our focus areas on M&A and spectrum have been really clear. M&A is focused on double-digit IRR opportunities and fiber. Spectrum, we've talked about what's coming. We've talked about also kind of specific spectrum deals that we've done. That funnels through to shareholder return. That's exactly the way we're consistently gonna look at it. That formula hasn't changed, and we don't see why it should change. I think we've had a very consistent and successful algorithm to capital allocation. i think we've had a very consistent and successful algorithm to capital allocation We start with leverage. we start with leverage We assess what the right leverage is. we assess what the right leverage is We're still of the view that 2.5 is the right leverage. we're still of the view that 2.5 is the right leverage You look at everything that you need to do from an organic business perspective, and you look at things like M&A and spectrum. you look at everything that you need to do from an organic business perspective and you look at things like m&a and spectrum Our focus areas on M&A and spectrum have been really clear. our focus areas on m&a and spectrum have been really clear M&A is focused on double-digit IRR opportunities and fiber. m&a is focused on double-digit irr opportunities and fiber Spectrum, we've talked about what's coming. spectrum we've talked about what's coming We've talked about also kind of specific spectrum deals that we've done. we've talked about also kind of specific spectrum deals that we've done That funnels through to shareholder return. that funnels through to shareholder return That's exactly the way we're consistently gonna look at it. that's exactly the way we're consistently gonna look at it That formula hasn't changed, and we don't see why it should change. that formula hasn't changed and we don't see why it should change

Speaker 1: I would be remiss not to ask about some recent headlines. I guess in regards to the potential there was the Bloomberg article or whomever that cited Deutsche Telekom's interest in pursuing a potential combination. Your comments from the call aside, I mean, any feedback or maybe what you're hearing from your largest shareholders and what are they telling you about, you know, a potential combination? I guess more broadly, we've talked about fiber M&A, but I guess what's the appetite for, you know, "transformish," transformational M&A more broadly? I would be remiss not to ask about some recent headlines. i would be remiss not to ask about some recent headlines I guess in regards to the potential there was the Bloomberg article or whomever that cited Deutsche Telekom's interest in pursuing a potential combination. i guess in regards to the potential there was the bloomberg article or whomever that cited deutsche telekom's interest in pursuing a potential combination Your comments from the call aside, I mean, any feedback or maybe what you're hearing from your largest shareholders and what are they telling you about, you know, a potential combination? your comments from the call aside i mean any feedback or maybe what you're hearing from your largest shareholders and what are they telling you about you know a potential combination I guess more broadly, we've talked about fiber M&A, but I guess what's the appetite for, you know, "transformish," transformational M&A more broadly? i guess more broadly we've talked about fiber m&a but i guess what's the appetite for you know "transformish," transformational m&a more broadly

Speaker 2: Yeah. I'll answer the second part and then come to the first. When most people ask me about transformation M&A, that's normally code for are you buying cable? Yeah. yeah I'll answer the second part and then come to the first. i'll answer the second part and then come to the first When most people ask me about transformation M&A, that's normally code for are you buying cable? when most people ask me about transformation m&a that's normally code for are you buying cable

Speaker 1: Yes. Yes. yes

Speaker 2: I think I've been really clear on that. I think I've been really clear on that. i think i've been really clear on that

Speaker 1: Yeah. Yeah. yeah

Speaker 2: I won't go back over that ground, right? On your question on the Bloomberg article, I'll say what Peter, myself, Tim have said over the last few days, right? Which is we won't comment on speculation, and nor is there anything to comment about really. On the back of the article, we did get a bunch of inbounds on governance. Just to clarify our governance in consistent with Delaware law, any such hypothetical transaction would need the majority of minorities, or the majority of what's called the undisinterested shareholders, and both DT and our board of directors have confirmed this. That's really all that there is to say. I won't go back over that ground, right? i won't go back over that ground right On your question on the Bloomberg article, I'll say what Peter, myself, Tim have said over the last few days, right? on your question on the bloomberg article i'll say what peter myself tim have said over the last few days right Which is we won't comment on speculation, and nor is there anything to comment about really. which is we won't comment on speculation and nor is there anything to comment about really On the back of the article, we did get a bunch of inbounds on governance. on the back of the article we did get a bunch of inbounds on governance Just to clarify our governance in consistent with Delaware law, any such hypothetical transaction would need the majority of minorities, or the majority of what's called the undisinterested shareholders, and both DT and our board of directors have confirmed this. just to clarify our governance in consistent with delaware law any such hypothetical transaction would need the majority of minorities or the majority of what's called the undisinterested shareholders and both dt and our board of directors have confirmed this That's really all that there is to say. that's really all that there is to say

Speaker 1: Got it. Understood. I guess maybe going back, talking about maintaining, you know, being a leader in 6G. Help us think about the development timeline there. Does it require a big new CapEx cycle? Is it more software or virtualization driven, just layered on top of the 5G Advanced infrastructure? Got it. got it Understood. understood I guess maybe going back, talking about maintaining, you know, being a leader in 6G. i guess maybe going back talking about maintaining you know being a leader in 6g Help us think about the development timeline there. help us think about the development timeline there Does it require a big new CapEx cycle? does it require a big new capex cycle Is it more software or virtualization driven, just layered on top of the 5G Advanced infrastructure? is it more software or virtualization driven just layered on top of the 5g advanced infrastructure

Speaker 2: Look, there's puts and takes, but the answer, the best answer we have so far is there's no fundamental change in capital intensity. The puts and takes are fairly simple. You'll need a new air interface. Look, there's puts and takes, but the answer, the best answer we have so far is there's no fundamental change in capital intensity. look there's puts and takes but the answer the best answer we have so far is there's no fundamental change in capital intensity The puts and takes are fairly simple. the puts and takes are fairly simple You'll need a new air interface. you'll need a new air interface

Speaker 1: Yep. Yep. yep

Speaker 2: No indication that that's gonna be step function different. You'll end up having some AI compute, because this will be the first, the first wireless network that not only processes bits and bytes, but also processes tokens. The idea would be to look at fallow compute or to build a 6G network which has the same cost structure or an AI-enabled network that has the same cost structure as a 5G network. I think there's a lot of indication that a lot more innovation will happen on the core, which will balance out some of it. On balance, I don't see any change in the direction of capital intensity. No indication that that's gonna be step function different. no indication that that's gonna be step function different You'll end up having some AI compute, because this will be the first, the first wireless network that not only processes bits and bytes, but also processes tokens. you'll end up having some ai compute because this will be the first the first wireless network that not only processes bits and bytes but also processes tokens The idea would be to look at fallow compute or to build a 6G network which has the same cost structure or an AI-enabled network that has the same cost structure as a 5G network. the idea would be to look at fallow compute or to build a 6g network which has the same cost structure or an ai-enabled network that has the same cost structure as a 5g network I think there's a lot of indication that a lot more innovation will happen on the core, which will balance out some of it. i think there's a lot of indication that a lot more innovation will happen on the core which will balance out some of it On balance, I don't see any change in the direction of capital intensity. on balance i don't see any change in the direction of capital intensity

Speaker 1: Great. Well, Srini, thank you for the time. Great. great Well, Srini, thank you for the time. well srini thank you for the time

Speaker 2: Thank you Thank you thank you

Speaker 1: Thanks for joining us. Thanks for joining us. thanks for joining us

Speaker 2: Pleasure. Thank you. Thank you so much. Pleasure. pleasure Thank you. thank you Thank you so much. thank you so much

Speaker 1: Thanks, everybody. Thanks, everybody. thanks everybody

Speaker 2: Thanks. Thanks. thanks