T-Mobile US, Inc. (NASDAQ:TMUS) Q2 2023 Earnings Call Transcript

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Mike Sievert: Sure. Well, the first thing I would point out is that any proceeds from that have not been contemplated in the long-range cash planning. So if there’s cash that comes from that soon, that be incremental to the planning expectations. We’re still awaiting DISH’s decision. So just as an update, and I think our filings made some of this clear. The deadline has come and gone for them to determine whether or not they would exercise their privilege to buy that spectrum for $3.6 billion. But they asked for some additional time of the DOJ and we did not object to that. And so we have committed that we would not terminate their agreement and right to do that at any time before August 11. But in fact, we’re in discussions with DISH about whether or not there might be a win-win that’s different from their initial privilege.

And if there is that would be wonderful. But obviously, that deadline is coming. So – but our view was it was worth taking the extra time, especially since they asked for it in case there’s a bigger win-win to be had here.

Brett Feldman: Thank you. Appreciate it.

Jud Henry: Operator, next question, please.

Operator: Thank you. That will come from the line of Craig Moffett with MoffettNathanson. Your line is open.

Craig Moffett: Hi. Thank you. Two questions. One, as long as we’re on the topic of DISH. Outside of the 800, if the opportunity came up, would you have an appetite for more mid-band spectrum, either from DISH or perhaps any other source. And what we’re talking about sort of meaningful size chunks here. And then second, if you could just talk about the pacing and trajectory of fixed wireless, as you now with a little more experience under your belt, as you look out towards your long-term guidance, how do you think about the pacing to get to 8 million or so households?

Mike Sievert: Sounds great. Well, I’ll tackle the first one and then maybe hand to Mike Katz for the second one. And I don’t mean to be flip, Craig, but I think you’ve been following us for so long. You know we’ve never met spectrum, we didn’t like. And so of course. And — but one thing that distinguishes us from other providers is that when we get our hands on spectrum, we put it to work right away for the benefit of the American consumer. And so — that’s not only in the public interest, but that’s in the interest of T-Mobile and our customers. And so you see that in how we’re deploying so ambitiously the 2.5 gigahertz that are the proceeds of the merger, having built the best 5G network in history on that spectrum acquisition that came through the merger.

So look, I mean, we’re always on the hunt for other ways to add capacity to our network because it allows us to do amazing things like not only continue to take share and grow and meet ever rising needs of customers on their smartphones, but also to get after the subject of your second question, which is fixed wireless access. And — to the first part of your second question, nothing has changed in our aspiration. We’re still on the hunt for that single-digit penetration. And maybe Mike could comment about what we’re seeing in the marketplace and the rate and pace of our growth versus our expectations.

Michael Katz: Yeah. Thanks, Mike. Thanks, Craig, for the question. We couldn’t be happier with what’s going on with this HSI business. You probably saw from all of our results, we just crossed over 3.7 million customers in this business. And this pacing that we’re on, which we told you last quarter and the quarter before, right around where we were in Q2, right around 500,000 customers. We — it gives us confidence that the 7 million to 8 million total customers that we committed to at the end of this planning period that we’ve got high confidence that we’re going to get there. One of the things that Mike mentioned in his comments that I think is worth reiterating is, we saw in Q2 again, our highest gross adds. And our gross adds have increased every single quarter since we launched this product.

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