T-Mobile US, Inc. (TMUS) Earnings Call Transcript & Summary

Okay, everyone. I'm John Hodulik, the media and telecom analyst here at UBS, and I'm very happy to introduce our next speaker, Mike Sievert, the President and CEO of T-Mobile. Mike, thanks for being here.

Thanks, John.

So we were just talking about the Analyst Day you conducted about a month ago. With all that knowledge, can you just give us a sense for what the company's priorities are if you just look out into 2025?

Yes. Thanks. I hope most people tuned in. We only do this once every 3, 3.5 years or so. We had a lot of fun with it. And what we said then was that we're on a multiyear course to really reshape this company. We called it our Challenger to Champion transformation plan. And what that basically means is further extending our network leadership, which will be a huge piece for '25; further extending our value leadership, which you'll see down payments on that; and transforming how we serve customers, using data AI, digitalization. So that this customer love that's always been what sets T-Mobile apart, gets transferred into the modern era so that we can use the data that we have to serve customers in profound new ways, the way they expect to be served. And ultimately, it's basically about transferring the heroic work our people do to solve problems for customers into a new kind of heroism, which is could we just prevent those problems in the first place. And that's where our passions are.

Makes sense. Before we address a number of these issues, if we could drill down a little bit, how was Black Friday for T-Mobile and the industry in your view? And how would you compare it to last year?

It wouldn't be a UBS Conference unless you ask me about Black Friday and get an essential nonanswer like you've been getting all day. The good news is we recently reguided just a few weeks ago, and said we'd be at $3 million or so postpaid fund nets. I can tell you that that's looking -- we're very confident in that. It's been a great quarter so far. The only thing I would caution and I can just hear myself saying this in prior years as well, is that this quarter is back-end loaded. So while I'm here to tell you, it's going great. We're confident in our guidance, investors should be cautious because there's a lot of risk in the back half. Most of this quarter is still in front of us, if you will, because of the shaping of Q4 is a little different than most quarters but we feel great about it.

Got you. And there's a lot of worries among shareholders about whether or not the growth that we've seen in the wireless industry is sustainable. So how are you positioned? And is the company positioned as -- where are we actually to see sort of fewer net adds going into the '25-'26?

Yes. I'm always a little surprised by this question because it almost presumes -- yes, we get this a lot. And so I'm glad you're asking because it expresses what is on people's mind. And it almost presumes there's sort of going to be some big secular shift happening and I've been asked this for years now, and it's just kind of not happening. What's interesting is that if there's been a slowdown in sort of low-calorie net adds that don't really make a difference, what hasn't happened -- what has not happened is a slowdown in switching. In fact, switching is higher than it was 3 years ago. Like port volumes in the industry are higher than 3 years ago and flat from a year ago. So switching is where T-Mobile plays, and switching is as robust as ever. And our strategy is to profitably systematically take share at a predictable, reliable pace, no big flash in the pan. That's what people have come to expect from us. Reliable, predictable, profitable value-creating growth that's thoughtful and at a certain pace. And that's something that we see in this current environment should not be a problem.

That's interesting. So port volumes are higher. Can you talk a little bit about porting ratios? I mean are you taking more than you were, say, 12 months or 2 years ago? And is it really a function of everything you talked about at the Analyst Day sort of price value relationship?

I mean in any given week, it bounces around a little bit, but the broad trend is we're share takers. If you look at Q3, and this very environment that you're asking about to express questions that I know you feel. Remember, Q3 of 2024, the one we just reported was a decade-long record for T-Mobile in postpaid phone net additions and an all-time record for a Q3 in churn. I mean that was a great Q3. And it's in the environment that people are "worried about" might be a slowdown. So you can kind of see that our strategy is to have a value proposition, a network proposition that are noticeable -- noticeably superior to customers and to have a marketing and distribution operation that's sophisticated enough to reach the right audience with that message. And that's what we systematically do quarter after quarter in a reliable way. Sorry to be boring, but that's part of the job.

It makes it easy. Can we talk about upgrades a little bit? And then we'll talk about some of the segments that you guys are going after. But obviously, there's a scare that we would see higher upgrades with the new iPhone. Didn't happen. Do you think that the current rate of upgrades that we that we're seeing are sustainable? And is that good or bad for T-Mobile?

Well, that's the funny question because you said there was a scare that upgrades might be higher. And so we have like some signal coming in from people like, "Why are your upgrades so low? Isn't that a problem?" And others that are worried, upgrades might take off. And so for us, it's about meeting the customer where they are. Remember, 80% of our customers have 5G-capable phones. They're experiencing speeds and performance on our network that are on average, twice what they could get from our competitors nationwide across all network types. 4G and 5G on average. And so they're having a great experience and therefore, the upgrade rate is pretty low. And yet we're meeting the need. Remember, Q3 churn was the lowest Q3 ever in our history. To those that say, "Wow, are you being stingy with upgrades?" Well, no. I mean our customers love our upgrade programs, and you can see that in our numbers.

But do you think when upgrade rates or if upgrade rates move up, say, this time next year with a new form factor on the iPhone, does that sort of -- does that lead to higher churn and potentially lower profitability?

The dynamic that would cause that would also cause more switching. So right back to 2 questions ago, is switching vibrant? Is it vital? T-Mobile feeds on switching. And so a cycle of phones that causes everybody to act is of the scale we haven't seen recently, would probably drive some upgrade volume. But it would also drive an awful lot of people asking themselves, "Do I have the right provider?" And that's always a great moment for T-Mobile.

So some areas where you have been growing nicely, and you laid out again at your Analyst Day was the rural markets and the business markets. Can you give us an update on sort of where you think those numbers can go over the next couple of years? I mean how far are we in terms of attacking those opportunities at T-Mobile?

Well, at least, to our current win share may be higher. So people ask me, what's your fair share? And I always wonder like, how do you answer that exactly? I mean what is a fair share? We have the best value and the best network. What's the "fair share?" It's hard to answer. I mean there are markets where we really have a vibrant market share. Our win share in Q3 was an all-time high in smaller markets and rural areas and way above our market share, which shows we have years and years -- I mean, many years to run of share taking in these markets, without some secular change. Just executing our strategy systematically, profitably, thoughtfully winning customers. And that's wonderful. That's even before the effects of digitalization, which open up new opportunities, et cetera. So we're really excited about what's happening in smaller markets and rural areas, which, again, and our definition is 40% of the country. So this is it just small towns. This is everything that's not the top 100 cities. And so it's really nice. We're very happy with the strategy and with our performance there. In enterprise, the story is equally as exciting. Again, our market share is quite low, tons of room to run but present win share is much higher than market share. And of course, it is because in the enterprise sector, we're not facing the same kind of headwinds on reputation. I mean let's face it, we're only a few years into T-Mobile being the best network. Most Americans would still answer it somebody else. I mean we're still -- winning the reputation game with consumers, that's a tailwind on our business. That's still in front of us. But with businesses, they check out 100 phones from all the providers and they study them for weeks, and then our win share is at historic highs. And so that's a great tailwind for us because enterprises see it today. We unveiled it at Capital Markets Day. You talked about key priority. It's a groundbreaking new service. The first ever 5G dedicated slice for first responders that modernizes the way wireless companies can serve a separate service for first responders. We designed it with big organizations like the City of New York in mind. And that's just another tailwind on our enterprise and government business.

Makes sense. Maybe now turning to ARPU. How should we think about trends in ARPU and ARPA just given the competitive environment? And maybe along with that, there's been a number of pricing actions in '24. Do you think the competitive situation is such that we should expect to see similar activity in '25?

Well, it's growing. ARPA, we signaled a 3% growth, ongoing growth through the planning horizon, multiyear planning horizon. And that's the metric we obsess about more because it looks at the total relationship of the account. So it's nice to see. And as we've talked about in the past, generally speaking, the trend for us is that customers are buying up our rate card because they want more of what T-Mobile has to offer. And that is just -- that is a wonderful place to be. They see the inherent value in Go5G Next and Go5G Plus with loading above 60% on those premium rate plans. And yet the base is still only at 30% and rapidly growing. And so lots of room to run in the base. The flow has been maintained. And of course, from to time, in order to keep up with the times, we [indiscernible] changes to the base as well. We executed to the premise of your question, a set of changes first time in a decade in '24 for some customers. We didn't reach everybody with that. So there's potential more room to run with that same initiative, meaning we didn't even reach people on the same rate plans. We just partly did it. So -- but generally, our strategy is going to be around focusing on value within our rate card, not changing the rate card. And we'll be smart and thoughtful, but that's generally the approach. And so far, so good. It's working really well for us.

So how should we think about the wholesale market? Obviously, you have some pressure from ACP that you guys called out and potentially from Boost coming off the network. I think you guys called that out as maybe a headwind for '25. Is the wholesale market in general, maybe outside of those 2 issues, a potential source of growth for the company as we look out to '26?

Yes. Thanks for asking it that way. We tried to parse the 2 things. You've got some one-timers happening in the very near term. Verizon buying TracFone that will finally begin to come off. DISH, we always designed that partnership with the idea in mind that they would build their own network and that some of that volume would come off. And so those are kind of headwinds to revenues that are on a onetime basis next year, and we guided accordingly. But the underlying trends are really good. I mean of course, I think about the kind of broad picture. You've got -- there's been acquisitions of MVNOs by major providers, which just opens up entrepreneurial opportunities for people that have seen what happened in the past, and they see now market potential because the major 3 networks own most of the prior MVNOs. So entrepreneurism is fueled by that. And also big companies see opportunity in our space as well. Some are -- celebrities are inspired by what we did with Ryan Reynolds and Mint. And so there's all kinds of entrepreneurial interest from organizations, large and small. Social media influencers create a lot of opportunity. So it's a growing -- the underlying trend, absent those 2 big partners, is a growth trend for us, and we would expect that to continue through the planning period [indiscernible] .

Got you. Maybe shifting to the broadband strategy and maybe first, we'll start with fixed wireless. Obviously, a solid driver of growth, new guidance for -- it was 12 million subs in '28, I believe it was. Just how do you do -- as you look maybe even beyond the '28 and the guidance you gave, [ what products ] that you think can continue to grow just given the demand that consumers have in terms of speeds and payload?

Well, before we get to continue to grow, let's sort of deal with the kind of bear question, which is, "Is it here to stay?" And the answer is absolutely yes. And I'm always surprised at the questions because some say, well, right, but I mean demand for speed and capacity is increasing. And therefore, you're a moment in time technology. And that kind of misses the fact that wireless technology is improving and at least, the rate that demand is increasing. So look in the rearview mirror, for example. I mean the average wireless consumer in the United States is experiencing 4x -- 4x quadruple the speed of just 2019, 5 years ago. 4x faster. That's not T-Mobile. I mean we're twice as fast as our competitors. That's on average across wireless. And we're not stopping. Look at T-Mobile. We only have 60% of our mid-band spectrum deployed on 5G. And we only have 60% so far. We have lots of room to run just within our portfolio. And you heard us talk at our Capital Markets Day about our interest in advancements in the technology. We're already laying the groundwork for the next wave of technology that will further extract performance from every capital dollar and every band of frequency. And that's our job, get more and more performance out of every capital dollar and every band of frequency. And we're not sitting around on our hands. I mean, we're actually doing the doing that will bring about that future. And so of course, we're going to get to the 12 million, and this business is here for the long haul. Now the question is, can we go past 12 million? It's too soon to say, we were cautious last time. We talked about 7 million to 8 million for many years, and we only recently updated it to 12 million. And we did that once we knew we could get there without a change in our business model. Our business model for fixed wireless focuses on follow capacity. A network we've built principally for mobile, it was paid for by mobile, and we find the pockets all over the country where no normal amount of mobile usage will take up our capacity. And only in those places do we approve an applicant for home broadband. Our 12 million plan sticks with that. We're open-minded about whether or not we would have a capital burden to plan, but it would have to be a profitable one. And so far, it looks to us a better strategy to focus on the follow capacity model, at least, for this planning horizon through '28.

Beyond the 12 million, would you need capital to drive beyond the 12 million?

It depends. People ask that about 7 million to 8 million, and we just unveiled to you it's 12 million because things improved. CPEs got better. We got better at utilizing spectrum, more advanced carrier aggregation techniques than what we were planning on. So 5G didn't stand still. It got better, and we improved it to 12%. Can we pull that off again? I don't know. It's too early to say. Or will we find a capital burdened technology that actually works meaning where you can get a great return? Too early to say, but we're on the hunt.

Got it. Maybe we'll switch over to fiber. At your Analyst Day, you also unveiled 12 million to 15 million passings. A, is that the right number? Could you do more? Or just how should we think of -- especially in an age where your competitors are talking a lot about convergence versus AT&T and Verizon, that would give you a smaller footprint? And is that something that sort of worries you as convergence becomes more in focus?

What only gives us a smaller footprint by some measures? Like for example, why do we talk about passings? We talk about passings to try to get a handle on how big the customers will be, right, what the customer count will be. So let's do it like a passings equivalent. Let's start with that 12 million on fixed wireless. 12 million customers. It's not passings. So if you just do kind of typical fiber math, let's say your fiber companies shoot for better than 40% penetration. Well, 12 million customers then is like having 30 million or 35 million passings. It's passings equivalent of 30 million or 35 million passings. Add 12 million to 15 million to that, you're already knocking at the door of 50 million passings equivalent in this plan. And we signaled that we're in this business to build great products for customers and make a fair return. And in a world where we can make a fair or great return, we have some ongoing appetite in this space. We're not doing it to defend our wireless business, but we do think we have a lot of permission to win in this category and make money. And therefore, if the right opportunities present themselves at the right valuations with some limits, with limited ongoing appetite, but some ongoing appetite to round out that number a bit.

Makes sense. And you have a number of pilot markets going. And you're right, I think in general, fiber-to-the-home companies talk about 40% penetration. How do you think of that from T-Mobile's perspective? Obviously, your net promoter scores are very high, highest in the sort of connectivity business. You're obviously -- as you said, the ports are coming your way. I mean do you think -- as you look at the 12 million to 15 million homes that you can do that? Is T-Mobile -- I don't think you laid it out at your Analyst Day, but is 40% your goal? Or do you think you guys can do -- maybe you could talk a little bit about what you've seen in some of your pilot markets already. But do you think you can better than 40%?

It's too soon in the pilot markets because you typically achieve full penetration after a while but the early curves look very promising. And Look, it's hard to say. We put out the thesis that said we believe that the terminal penetration for T-Mobile would be noticeably higher than for a pure stand-alone no-name fiber company that kind of creates a fiber company that's regional in nature and is only known for that and has no other business that it ought to be noticeably higher. And the other commercial benefit is that we ought to achieve that penetration noticeably more cost effectively, right? And if you think about it in the wireless business, Look, the biggest things are the cost to acquire customers, the cost to retain customers and the cost to build networks. Well, the network piece is done by a win-win partnership. And attracting and retaining customers is a core competence of our company with not just know-how, but billions of dollars of embedded investments made over years that make us one of the best in the world at this. And so the thesis is that will translate into value creation in an adjacency this close.

Makes sense. Now your strategy is unique in that you're working with a number of smaller companies on this strategy. We have the Metronet deal and the Lumos deal still not closed. But Metronet, you gave some data, I think, at your Analyst Day that they're cranking along in terms of homes passed. But does it create some risk working with these sort of some of the smaller guys? Instead of just sort of doing it yourself, which is there are some negatives to that, too, from a cash flow standpoint than others. But does it create -- does it change the risk profile that you're working with some of these smaller guys that don't -- maybe they don't have a history of some of the bigger guys in terms of...

For now, I love the risk profile because remember, we're 50-50 partners. So we've got a lot to say. And we're 50-50 partners with fantastic companies that also have other investments and can leverage those learnings all around the world. EQT and KKR to partners in these acquisitions. And these acquisitions are some of the best run companies in the space. So we went after kind of the A+ assets that are building high-quality businesses, meeting and beating their promises and to your point, growing faster than people expect. At a smaller scale, by the way, Lumos is growing a lot faster than people expected than even we expected in our in our merger deal. And then Metronet is the single fastest-growing stand-alone kind of privately held fiber asset. And so call it, the PE-backed assets, so the ones that aren't overlaying copper. And so that's great. That's a great place to be that allows us to have aspirations like we expressed 12 million to 15 million, along with the wholesale partnerships that we've struck and possibly have room for some ambition around those numbers because the teams are that strong.

There's a lot of -- even private equity-backed independent fiber-to-the-home companies, is there room to do other deals like you've done with Metronet or Lumos? Or even smaller deals with other companies that you've worked with in the past and in some of these other markets?

Yes, I kind of hit that a second ago when I was saying there's ongoing appetite. It's limited, and we're going to be smart about it. We feel like we're -- one of the things I think partners appreciate about us is we're interested in win-wins. To us, it's not a win if we kind of extracted value out of a partnership, and we're the only ones making money. We want partnerships though where we look back on it several years later. And we were like, yes, we were smart, we were patient. We were thoughtful. And I'm proud of the ones we've struck because some were expecting -- I mean I was asked for fiber for like 2 straight years before we did these deals. And I was like, look, time will prove us right. And these are fantastic transactions. And if another one at a certain size, again, our appetite is there, but limited, presents itself where it's a real win-win and where we think we can make a great return. We're open-minded. And to your point, there are several constructs. We could strike a new partnership, we could own an asset outright. We could utilize one of these 2 instruments in the partnerships with KKR and EQT. We're open-minded about that as long as we're smart about it. And one of the things I like about these constructs is that we're essentially getting -- putting our brand to work. Remember, this is all about putting our brand to work and those assets we've spent years and billions on for about 1/5 of the dollars. Why do I say that? Well, our one equity dollar is being matched by another partner's equity dollar, 50-50 partnership. And then that entity can be levered up to 3x. And so you get up to of investment. But the brand is T-Mobile, the go-to-market is T-Mobile.

Right. Maybe last question on the topic, convergence. It's something we're hearing a lot about now. What's your view on convergence? Aside from just bundling the products together, but does it create economic value? I'm not sure. In our view, the work we've done, I think the jury is still out. In other words, there's 1 plus 1 equal 3 in putting these services. And we hear that from a lot of companies that it does in terms of lower churn or overall lower costs. But just your overall view on sort of the economic value creation of conversions?

Sure. Well, first, our view on convergence is that it's here, and it's been here for years. It's been here for at least 5 years, and that the version of it that you see is the version of it you're going to see. In other words, people who are worried about a Europe style convergence or something like that, are kind of missing the movie that it's already happened here. The typical American consumer, 80% to 85% of American consumers have been able to buy their wireless and their broadband from the same provider for over 5 years. It's not new. They've had these choices. By the way, it's not driving their choice to a great extent. It's kind of in the run rate. Cable has made -- what looks to me like a viable and successful business in this space. It's fully in the run, right? All of our success over the last half decade has been with that happening, and we expect it to continue to happen, good for them. But it's here. And so there's not like a big shoe about to drop. And why do I say that? Some of our competitors talk about things like, well, we're investing in fiber because we have more share and more success where we have fiber. And then we went and looked at that and said, "Well, that's interesting." Where they have fiber, our 2 principal competitors have fiber. T-Mobile also has more success where they have fiber. We have higher growth rates. We have penetration, at least, what's there in the nonfiber markets. And we're picking up household penetration, where Verizon says they have lower churn where they have fiber, T-Mobile has lower churn where Verizon has fiber. And so you have to be cautious about kind of the causality. There are places where customers have an affinity, they spend more and they have an affinity for this category, and that's some of the places where our competitors have fiber. So look, I think these are -- both of these categories in the U.S. are a considered purchase. People will pick the broadband as we're seeing with T-Mobile's remarkable success in broadband, fastest-growing by far for several years now. They will make a broadband choice that meets their needs for their house. And in wireless, they will make a wireless choice that meets the need for their house. And if those 2 come from the same company, wonderful. And by the way, if you ask people in a survey, would it be good if those 2 come from the same company and if 70% say, "Yes. Yes, sure." That's not like actually indicating that that's our future. Like people are -- why not? Yes. I mean -- and you think about yourself as a consumer. I mean, does this really motivate your purchase? Like in other words, a decade ago, we were writing check. Do you write checks, like do you write like get a paper bill and write a check? No. I mean the broadband is on auto pay, the wireless is on auto pay. Both these categories mean a lot to you, you're going to make the best choice for you in both of those, and that's why we're building the best broadband business we can and the best mobile business we can.

Makes sense. All right. A couple -- you know what, let's -- why don't we skip to a couple of questions about some acquisitions you guys have done. First of all, Mint Mobile. Obviously, massive growth at Mint from when you guys announced the deal until you close it. Just what does that do for your company? First of all, I'd say how would you rate that acquisition, the performance of the company since you've agreed to acquire? And then just your overall view of the prepaid market inside of T-Mobile?

You might not be surprised, I'm going to say it's going great. But that's because it's going great. So the company had in the 2 years since we first announced that partnership, the company has outperformed all of our expectations. What's interesting is since we've joined, I can tell you, it's a little counterintuitive, but I can tell you that the principal way it's helping our P&L is it's actually helping us grow our postpaid business. You know why? Because it's taking pressure off the prepaid business, which gives us financial firepower to continue investing in postpaid switching. So here's what's happening. We feel like, given that we're the market leader in prepaid, we need to keep growing prepaid at very modest rates. And we've been doing that for years. We're #1 in this space. And yet, we're still growing. Usually, that's not the case. When you're #1, you get toppled and you start going backwards. We saw that in postpaid with our competitors. We've been #1 for a while. We're holding on to that position. And we -- but let's face it. The [ immense ] amount of growth you get in the prepaid market is not the most productive stuff. And that's been true since the beginning of time. Having a brand-new segment that Mint is going after, totally new customers, new brand, new way of marketing, all digital, it just takes the pressure off. So now you get you get -- you don't have to go for that [ end ] piece of the less productive on our traditional prepaid brands, which what's that do? It gives us the financial wherewithal to plow that money into postpaid instead. And that's what we've been doing in the last couple of quarters.

And then second acquisition I want to talk about is UScellular. Just how should we -- what is the assets you're getting with UScellular do for the company?

Well, again, one of the core strategies of smaller markets and rural areas. And this is just a big step forward in those areas. It's actually material when you look at it from the point of view of that denominator. What's going to result here, first of all, is a better network for T-Mobile and UScellular customers. I mean that's a win-win. So you've seen this movie before at a larger scale when we brought T-Mobile and Sprint together is about combining the network assets and the spectrum, most of the spectrum and putting it to work in a denser better network for both customer bases. That's just a win-win. And we are going to put the T-Mobile rate card on offer for every single UScellular customer, which means lower prices. So I don't know how many mergers you've heard of in the past that are like, yes, I can promise you better networks and lower prices right from the get-go, and the company, of course, will benefit from the synergies, and it's highly accretive. So this is going to be a win all the way around, and I'm confident the government will see it that way as well.

One question about the network. I mean one of the things you said earlier talking about the fixed wireless businesses only about 60% of the spectrum has been deployed for 5G at this point. Where are you in terms of the 2.5 deployment? C-band, I don't know that you guys have started to deploy that yet. And then maybe some commentary on what happened, what do you think eventually happens to the 800 megahertz spectrum?

Okay. Well, first on mid-band. We're -- what we said at our Capital Markets Day is that we having achieved 5G network leadership in this country, do not intend to defend it and maintain it. We intend to further extend it. And so our plan over the next several years is about further extending that network lead because we have so much firepower left on the table. We have advanced technologies that have been able to get more performance out of every band of spectrum that we're way ahead on. And we have lots of spectrum that we haven't put into the fight yet. And that's going to be great for consumers and businesses. And so there's lots of room to run there. We haven't deployed in any significant way, C-band yet. We've only deployed 60% overall of our mid-band spectrum on to 5G. We have lots of 4G refarming still to go. 80% of our devices are 5G capable now. So lots of just great things that can come together there. And remember, we have a different approach. By having a 5G core, we are able to have a multilayer 5G strategy with multiple carriers of 5G aggregated. That allows us to favor the low band for the uplink, the mid-band for the downlink, aggregate all those into one connection. And it makes the circle, the diameter around any tower. We have a more dense grid than our competitors. But the circle around the more dense grid is actually bigger and that allows you to have better quality reach out to the edges. And so that's why we have 5G availability at several times, our competitors and one again from Opensignal this last quarter, the most available 5G network in the world. That's what proportion of the total time do you get 5G instead of alternate technologies. So fantastic place to be and room to run. 800. Don't know. We finished the auction. We complied with the consent decree. We informed the government. Everybody is satisfied as far as we know. And so now it's just an option. We do not have 800 in our network capacity management planning. Should we roll it out? It would be an additional benefit for our customers. We do not have proceeds from selling the 800 and the financial plans we unveiled to you last month or 2 months ago. So should we sell it? That would be found money that we can invest the benefit of our customers. And we're hard at work figuring out what's next.

Great. And just wrapping it all up here. We touched on a lot of different aspects of the business, but what would you say are the sort of core element within T-Mobile, that ensure that you'll be able to hit the guidance that you laid out and maintain that #1 role in terms of the largest -- not just wireless company in the fastest-growing wireless company in the U.S. but connectivity company in the U.S.?

Well, a couple of things. One is continuing this Un-carrier strategy around best network and best value. And best value in many senses is about this kind of full relationship of a connected life. And you see that with people. Our best value is in a world where most people are buying way up our rate card because they want the T-Mobile connected life. And the best network, we've spent a lot of time talking about. As an overlay to these things, we -- our challenger to Champion plan is about transforming our company into a deeply data-informed AI-enabled digital-first company. And we are not a company that like basically comes home from Davos and says AI words on TV. Like in other words, like we're a company that's deeply thoughtful about not how do we bring out customer service cost and OpEx but how do we serve customers better? How do we translate our love for customers that's always been the hallmark of our brand into a hybrid human digital relationship? And putting data at the center so we can actually solve their problems at scale, before it ever occurs to them they have problems? And this is just a giant opportunity for us that not only in our core wireless business, but to continue extending into adjacencies. Let me finish with an example. We talked about T-Life being the centerpiece of our digital transformation. And by the time we unveiled T-Life to you, we were on our way. We're now past 40 million downloads. And so this is -- like last week in the App Store, we were #6. We're #1 in lifestyle. #6. We have more downloads than tick talk last week. We're on this rapid growth curve. And people come to T Life, not just to check their bill, but to received their rewards, their T-Mobile Tuesdays, their Magenta Status to learn about what -- how they can take advantage of being a member at T-Mobile. And that's the beginnings of something truly special and great that will inform our transformation over these next 3 years.

Sounds good. We'll leave right there, Mike. Thanks for being here.

Thanks, John. Appreciate it. Good to see you. Thanks, everybody.