Q4 2023 T-Mobile US Inc Earnings Call
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Speaker Change: I would now like to turn the conference over to Jud, Henry Senior Vice President and head of Investor Relations for T. Mobile U S. Please go ahead Sir.
Jud Henry: Alright, welcome to T Mobile's fourth quarter and full year 2023 earnings call joining.
Jud Henry: Joining me on the call today are Mike Sievert, our president and CEO.
Peter Oswald: Peter Oswald our CFO.
Peter Oswald: Well as other members of the senior leadership team.
Peter Oswald: During this call we will make forward looking statements, which involve risks and uncertainties that may cause actual results to differ materially from our forward looking statements. We provide a comprehensive list of risk factors in our SEC filings, which I encourage you to review.
Peter Oswald: Our earnings release, Investor Factbook, and other documents related to our results as well as reconciliations between GAAP and non-GAAP results discussed on this call can be found in the quarterly results section of the Investor Relations website.
Peter Oswald: With that let's now get it over to Mike to tell us about our results. Thanks Jud welcome everybody as you can see if you're viewing online I'm here with a good cross section of our senior team once again coming to you today from Bellevue, Washington, and looking forward to a great discussion, but first I'd like to take a moment to reflect on a historic year for T mobile and the exciting.
Mike Sievert: Momentum that we bring into 2024 23 was another year for T mobile of industry, leading growth in both customers and key financials, including all time record results across many metrics. It was also a year where T. Mobile became established as the overall network leader built on our extensive advantage.
Mike Sievert: <unk> and <unk>.
Mike Sievert: And it was the year that we effectively completed the biggest arguably the most successful telecommunications merger integration in the world delivering synergies bigger and faster than even our own ambitious goals and doing it while also accelerating five G investment in this country to the benefit of consumers and businesses.
Mike Sievert: Our remarkably consistent best value Best network strategy delivered industry, leading postpaid phone net additions of 3.1 million in 2023. This was driven by our highest postpaid phone gross adds in company history up 2% for the year and up six.
Mike Sievert: <unk> percent in Q4 and by our lowest postpaid phone churn in company history for the year our.
Mike Sievert: Our net adds essentially matched our great results from 22, despite industry postpaid phone adds decreasing year over year, you know what that means it means that our unique formula enabled us to take a higher share of postpaid phone net adds than a year ago. In fact twenty-three was our highest share of postpaid phone net adds.
Mike Sievert: Since the merger showing the ongoing durability of our differentiated strategy.
And we finished the year on a high note with Q4 postpaid phone net adds up 934000 highest in the industry by a wide margin and we did it with rising ARPA up almost 2% delivering industry, leading growth in postpaid service revenue and core EBITDA in Q4, while Alt.
Mike Sievert: So nearly doubling our adjusted free cash flow.
Mike Sievert: Let's talk about broadband we added over 2.1 million customers in twenty-three our biggest growth year, yet with more net new customers than the other largest providers combined as our product just continues to resonate in the market.
Mike Sievert: And we finished strong with 541000 net in Q4, making us one of the largest Isps in the nation with 4.8 million customers and counting at year end.
Mike Sievert: At T mobile our network is the key enabler of our growth.
Mike Sievert: Not only for the success that we've had to date, but also for years to come.
Mike Sievert: I predicted years ago that are well established five G leadership would eventually translate into overall network leadership and that was proven loud and clear in 2023 by leading third parties like Uccle, an open signal time, and again with T. Mobile sweeping every category of their tests for overall network performance listen it boils down to this.
Mike Sievert: T mobile has the broadest and the deepest and the most advanced <unk> network in the U S. Today, and we have the assets and capabilities to further extend our network leadership in 'twenty four and beyond.
Mike Sievert: Okay. One final network point, we recently celebrated a pivotal moment in our groundbreaking alliance with Spacex by kicking off testing of direct satellite cellular communications. Our teams are really excited about what's coming.
Mike Sievert: Let me just remind you of one thing our network work leadership still isn't yet fully recognized by millions of network seekers, who are still potential future customers for T mobile and yet that same network leadership is already driving our strong wind share, particularly in underpenetrated areas like enterprise and government.
Mike Sievert: And also in smaller markets in rural areas in our consumer business.
John J. Legere: Let me just double click on that growth momentum T mobile for business delivered the highest postpaid phone net adds in company history in 2020, three and we exited the year with great momentum with Q4 being our highest quarterly net adds ever.
Mike Sievert: Meanwhile, in our consumer group, we continued to grow our share of households, both in smaller markets in rural areas, where we are well on our way to our 2025 targets and even in the top 100 markets, where we grew our share year over year on the strength of our network and our compelling value proposition.
Mike Sievert: We're executing our balanced growth playbook with great and consistent success and the best part is we still have a lot of room to run.
All of this added up to delivering the highest consolidated service revenue growth in the industry in 'twenty three and it was an industry that continues to grow service revenues and cash flows while simultaneously seeing customers win from healthy competition that delivers more value and better networks.
Mike Sievert: On that all important postpaid service revenue metric, we delivered 6% growth in 2023 way above our next closest competitor.
Mike Sievert: That growth led to core adjusted EBITDA growth of over 10% and free cash flow growth of nearly 80%. All of this enables our substantial stockholder return model, which has reset returned $17 billion to stockholders. So far through the end of 'twenty three.
Mike Sievert: Including our first ever quarterly dividend in Q4.
Peter Oswald: Now Peter will share our guidance with you in a moment, but the short version is this we see continued strong customer and revenue growth translating into rapid growth in cash flows in 2024 and beyond and supporting our ambitious plans for shareholder returns that we've already shared with you.
Peter: Before I wrap up because this is a year end report I want to touch on some of the ways. We're building a connected world where everyone can thrive.
Mike Sievert: We believe reliable and affordable wireless and Internet service is a necessity for all in today's highly connected and digital world and that's why we are so proud to have connected nearly 6 million students and provided $6 $4 billion in products and services, so far under our flagship initiative.
Peter: <unk> 10 million and our other education initiatives.
Peter: We've also partnered with welcome Dot U S to provide service through Metro by T mobile to refugees entering the U S. As part of a multi year commitment of 200000 lines.
Peter: It is difficult to imagine restarting a new life in a new country without the connectivity that most of us take for granted.
Peter: We are also working hard to create a more sustainable future and we are proud to be the first U S wireless provider to commit to achieving net zero emissions across our entire carbon footprint by 2040, using SPT is net zero standard.
Mike Sievert: Alright, let me just wrap up with why I am So excited about what's ahead. We are now entering a period of tremendous value creation at T mobile driven by ongoing growth leadership, and having and by having completed at both the historic merger.
Mike Sievert: And a massive five G network build that are foundational to unlocking the cash flow potential of this business. Our network is now a differentiated competitive advantage that complements our well established value leadership this unique and powerful formula means that our significant growth and value creation opportunities only.
Mike Sievert: Continue to scale and they have lots of room to run.
Mike Sievert: As we enter 2024 with momentum I could not be more proud of this team and of our employees, who remind us every day that it's better over here at T mobile.
Peter: All right Peter over to you to talk about our key financial highlights as well as our 'twenty 'twenty four guidance all right well. Thank you Mike.
Peter Oswald: As you can see our 2020 results highlighted our strong execution and accelerating our merger integration, while leveraging our network leadership and fame per value to deliver industry, leading growth in both traditional postpaid and broadband customers our land and expand strategy also led to industry leading growth in postpaid.
Peter: Account net adds as well as ARPA growth of 1.3% before.
Peter: Before I jump into our guidance I would also like to take a moment.
Peter: A moment to note a couple of items impacting our Q4 earnings per share in.
Peter: In December of 2023, we issued $48 8 million shares to Softbank is the 45 day V Wap or our stock price reached the threshold price under the letter agreement from 2020.
Peter: This obviously increased our share count, which impacted our diluted EPS as it is treated as if those shares had been issued for the full quarter.
Peter: We expect that dilution to be more than offset by our ongoing share repurchases in 2024.
Peter: We also accelerated depreciation on certain technology assets in Q4, and would anticipate a year over year increase in depreciation and amortization of approximately 500 million to 1 billion and full year 2024, as we continue to modernize our network and technology systems and platforms.
Mike Sievert: Mike already highlighted our best in class growth in both the topline and the bottom line and how our industry leading conversion of service revenue to free cash flow continues to differentiate T mobile so.
Mike Sievert: So let me jump into how we expect that growth to continue in 2024.
Mike Sievert: Starting with customers, we expect total postpaid net customer additions to be between five and 5.5 million. The same starting guidance says last year, reflecting continued focus on profitable growth as we execute our differentiated strategy, even while expecting total industry net additions to moderate.
This assumes roughly half of postpaid net adds will be phones and the guidance also assumes the final portion of the activations of our lower our poop postpaid other data devices in the education sector with most of that impact already having been accelerated into the second half of 2023.
Mike Sievert: As we noted last quarter, we had always anticipated many of these connections, which supported educational institutions through the pandemic would roll off as the emergency connectivity program wound down and things return to normal.
Mike Sievert: Turning to core adjusted EBITDA, we expect it to be between 31.3, and $31 9 billion up nearly 9% year over year at the midpoint and above the midpoint of our capital markets day guidance for 2024.
Mike Sievert: This is three times the growth rate of peers and a year over year dollar increase comparable to what we delivered in 2023, despite no material incremental merger synergy benefits in 2024.
Mike Sievert: Our sustained growth represents the power of our industry, leading service revenue growth the operating leverage of our profitable growth model and the opportunity to continue to drive operating efficiencies in the business.
Mike Sievert: We would expect slightly different shaping across the quarters now that we're past the integration. For example, we would expect slightly less sequential improvement from Q4 2023 with Q1 of this year than we saw last year as we achieved full run rate synergies in Q4, 2023, and no longer have that as an incremental sequential factor as.
Mike Sievert: We had in past Q4 to Q1 progression, we would expect the operating leverage and efficiencies to drive EBITDA. This year to build throughout the year layered against the seasonal trends of the business.
Mike Sievert: We expect cash capex to be between $8, six and $9 4 billion as we deliver our capital efficiency unmatched in the industry on the back of our network integration and five G leadership or pull forward of Capex into 2022 and 'twenty twenty-three has provided us with a broad multi layer five G.
Mike Sievert: Work on which we can now deploy additional spectrum for capacity across those existing radios without material incremental capex required.
Mike Sievert: Our capital efficient and data informed customer driven coverage approach guides us as we continue to enhance and further expand our network.
Our expectations for free cash flow, including payments for merger related costs is in the range of $16 three to $16 9 billion. This is up approximately 22% over last year at the midpoint and five times the expected growth rate of our next closest competitor thanks to our margin expansion and capital efficiency.
Mike Sievert: It does not assume any material net cash inflows from securitization.
Mike Sievert: And this also represents a free cash flow to service revenue margin multiple percentage points higher than peers.
Mike Sievert: We expect Q1 free cash flow to be approximately 20% of that full year midpoint, given several items that fall early in the year first we expect Q1 to be the peak capex quarter, it probably 30% of the full year midpoint of the Capex guidance I just shared with you second we expect approximately half of the $6 million to $700 million of anti.
Mike Sievert: Dissipated full year 2000, and for cash merger related costs to be in Q1.
Mike Sievert: Third we have cash severance for workforce actions taken late last year.
Mike Sievert: Wharf, the monthly payments to cogent following the wireline sale will taper after April and finally, there are working capital seasonality elements coming off the higher holiday sales period.
Mike Sievert: And finally, as we continue to execute our strategy of winning and expanding account relationships. We expect full year postpaid ARPA to be up approximately 2% in 2020 for further acceleration of the growth we saw in 2023 and.
Mike Sievert: In closing, we expect 24 to be another year of profitable growth as we continue to extend our network leadership and further scale our differentiated growth opportunities. We expect this to continue to translate into industry leading growth in service revenue.
Mike Sievert: Core adjusted EBITDA and free cash flow delay.
Mike Sievert: Delivering the highest free cash flow margin in the industry to unlock shareholder value.
I couldn't be more excited about the continued them more enormous value creation opportunity that we have in front of us for years to come.
Jud Henry: And with that I will now turn the call back to Jud to begin the Q&A.
Jud Henry: Alright, let's get to your questions you can ask a question via phone by pressing Star then one and VX by sending a tweet to tmall at T mobile IR or at Mike Sievert, using cash tag team U S.
Jud Henry: I will start with a question on the phone operator first question. Please. The first question is from Simon Flannery with Morgan Stanley. Please go ahead.
Jud Henry: Great. Thank you very much.
Simon Flannery: I was wondering if you could give us a little bit more update on where you are on some of the smaller markets in terms of your market share gain and how that's factoring into your guide for this year and the same sort of thing for enterprise and government.
Simon Flannery: Where are we in that status and perhaps on fixed wireless. It was a strong result, despite some seasonality where are you in terms of exploring additional capacity auctions on a cost effective manner.
Simon Flannery: Okay, well, let's start with smaller markets and rural areas, John Why don't you jump in Yeah, you bet Hi, Selman.
John J. Legere: I'm just delighted with what's happening here in smaller markets rural areas I've been talking to all of you about this since our analyst day event back in March of 2021 and back in that time, we were at a 13% share of household position and we've set this incredibly ambitious goal to get to 20% by the end of the year 2025 across the.
John J. Legere: Entire segment, which by the way is 140 million people, 40% of the U S about 50 million households, and I updated you last time when we during our Q3 earnings report about our share taking progress in those markets and some of the really good our results overseen and I'm pleased to tell you that we've now arrived at a share of household position of smaller mark.
John: It's a rural areas of about 17, 5%.
John: And so I'm really really pleased by that and the last time I talked to you about this was about nine months ago. We were at 16, 5%. So a full percentage point since that time and when you look at what we're doing with the <unk> network build that Olsen and his team have been doing the distribution expansion and bring in this incredible marketing.
John: Infrastructure out to smaller markets rural areas people are just loving what we're doing and we're having a lot of fun doing it and I got to tell you that you know it looks like we're really in a place where we can achieve that 20% goal by 2025 based on where we are but I'm really more excited and I think the more compelling opportunity as what we can do beyond the 20% I don't.
John: Have anything to tell you about right here right now about that but I'll tell you I'm getting really excited about what we can be doing beyond this 20% goal as you think about our continued velocity in these particular markets absolutely alright, great John and also on fixed wireless.
John: The product has just really resonating maybe Mike you can say what some of the things that we're doing is to respond to this ongoing growth and the acceptance of the product in the marketplace. Yeah. I mean, one thing that is kind of just amazing when you look back at it we've essentially been in the market with our fixed wireless product for two years and in two years, we've gone from a launch product to what you.
Mike Sievert: You saw at the end of Q4, which is nearly 5 million customers on fixed wireless, making us one of the largest Isps in America with a product that still leads versus every other industry in customer satisfaction. So we're really proud of what's what's been built here and continued momentum we saw gross adds this year.
Mike Sievert: At the highest the highest they've ever been so we have a lot of demand for this product and so one of the decisions. You saw this recently take was reverting back to our standard pricing and in our fixed wireless product.
Mike Sievert: Ben So moving away from a promotional pricing that we've been on for the last two years to our standard pricing that which we put into market. Early earlier. This month and we think that still offers the best value insight inside the broadband business and the best experience as demonstrated by the NPS scores that I just talked about so we think we think there's still room to grow.
Mike Sievert: ROE and H and HSI, we still with that 5 million customer base still runway in front of us to grow both in new customers, but also in services, we think having a 5 million customer broadband base gives us the opportunity to bring more services into the home, which the team is actively exploring.
Mike Sievert: And then finally, Simon and not to steal your Thunder off just to make the short version, we havent drawn any new conclusions versus what we previously told you about possible models beyond this initial capital light model that we have for high speed Internet as you know our forecast all along I've said that model. It takes us to seven to 8 million subscribers, we're well on our way, we'll monitor that as.
We get closer and we've got a lot of time left so stay tuned if we're able to provide you with an update on that in the future, but no update today.
Simon Flannery: Great. Thank you.
Simon Flannery: Alright Simon.
Simon Flannery: Operator next question. Please the next question is from Craig Moffett with Moffett Nathanson. Please go ahead.
Simon Flannery: Yeah, Hi, thank you.
Simon Flannery: You just.
Craig Moffett: Talked about the pricing of SWA.
Craig Moffett: Move to your standard pricing I Wonder if you could just talk about the outlook for pricing of your mobile service as well.
Craig Moffett: How do you see are approved playing out over the course of.
Craig Moffett: 2024 and theirs.
Craig Moffett: There's been a lot of talk that we are in a market where prices are rising generally because we sort of think about baking that into our expectations for the coming year.
Craig Moffett: Thanks, Craig a couple of things first of all you heard Peter Guide are confident guide on 2%.
Mike Sievert: Growth in ARPA on the year and that's terrific to see and obviously there is this ongoing trend that customers, who buy T mobile can't get enough of it and they're moving up our rate card and that's great to see.
Mike Sievert: So we're in a great spot and before I say more about what opportunities we might see I'll remind everybody listening that we're in an era of unprecedented value that consumers and businesses are realizing from this category generally I've mentioned previously that typically today across the category not just at T. Mobile customers are getting three times more data than just five.
Mike Sievert: Five years ago, and at four times greater speeds industrywide than five years ago. So there's tremendous value being given to customers in this category and if there are ways for us to find optimizations in terms of how we deliver that enormous value. So that we can be more competitive and more efficient in how we operate including looking at our rate card and looking at our.
Mike Sievert: Rate plans and looking at our policies and procedures, we'll find those opportunities Q4, we took some of those opportunities we found a more efficient way to handle <unk>.
Mike Sievert: Auto pay discounts with our customers and fully put that through the base throughout Q4, and that's an important optimization right now taking a lead from Netflix as they've changed their portfolio. We've made changes to the Netflix benefits that we give which have been well accepted by customers. So there's a theme here, we may find optimizations, but we will be guided.
Mike Sievert: By a couple of things one what customers accept and appreciate because that's really important and number two we have no intentions of sacrificing our brand position as the value leader in terms of what you get for what you pay in this marketplace. That's always been a differentiator for us and we will defend that jealously, but I'd tell you, there's there's opportunities that could be.
Mike Sievert: They're in an era of unprecedented value being seen by consumers and businesses and if we can take those and meet those guidelines that I've laid out will do so.
Mike Sievert: Yeah.
Mike Sievert: Greg with respect to ARPA.
Greg Smith: As we've talked about multiple times, it's very much a mixed driven metric and on the consumer side, we have seen continued growth in <unk>.
Greg Smith: Now that's offset with some of the success and tremendous value creation that we've had in enterprise and government. Those are obviously lower arps customers with high C. L. V's larger ARPA is and so that's why the focus on one the customer value differential that we're bringing in our ARPA playbook. We believe is the right way to go and you can see that demonstrated in.
Mike Sievert: And what we delivered in 2023 in Q4 from a postpaid service revenue perspective, that's where you're kind of focused in with postpaid ARPA and frankly, what we see from a service revenue opportunity in 'twenty 'twenty four is even larger percentage growth than what we delivered in 2023, so more than 3.1% full year growth, we'll see in 'twenty four.
Mike Sievert: Despite of course, some slight ongoing headwinds in wholesale with the offset of Tracfone and other carriers. So we couldn't be more excited about this as the right playbook that delivers the most value creation in the industry.
Mike Sievert: Thank you.
Mike Sievert: No.
Mike Sievert: The next question Jonathan Chaplin from New Street. Please go ahead.
Mike Sievert: Thanks, guys actually just a few sort of housekeeping questions actually I am wondering if you can.
Mike Sievert: Give us the number of ACP subs in your base is.
Jonathan Chaplin: And whether you're sort of anticipating using some of those if the if the benefit goes away and how that sort of factored into guidance and then ditto on bonus depreciation if bonus depreciation gets extended how would that impact.
Your free cash flow guidance. Thanks, so much.
Peter Oswald: I'll start on ACP and hand, it to Peter to finish on ACP and take the bonus depreciation question.
Peter Oswald: When it comes to the number of subscribers and a reported basis substantially none is a very very small amount of metro customers and that's it. So it's constrained to our assurance wireless business, which is not reported as subscribers and to our wholesale business and.
Peter Oswald: As it relates to ACP and what's happening to it obviously that's in motion you may have noticed that our EBITDA guide was a tiny bit wider this year I would tell you that all of the outcomes that we see for ACP are fully embedded in the guide that we gave you on EBITDA.
Peter Oswald: Our risk profile around ACP is a little different than say a broadband company. They went very big into it.
Peter: Committed lots of customers and numbers to it and also I think one.
Peter: Subscribers that may or may not stick around mobile is different you know mobile mobile is a product that customers will keep and if they lose that discount our job and I think our teams up to the task is to go win them over with our high value offers and we have some of the best brands in the space with incredible value propositions and as other wireless providers see the same thing happened.
Peter: We will get after it and position our brands as the place that those people land. So there's a risk profile around it for T mobile, but I think much smaller than with other players and it's fully embedded in the guidance that said I'll, let I'll, let Peter pick up there as well as talk about the bonus depreciation and just housekeeping wise again, we don't participate in ACP on the postpaid side, we have a live.
Peter Oswald: It'll immaterial amount through metro and the rest assurance isn't reported in our subscriber counts and of course wholesale customers are not either so that's it with respect to ACP and on bonus depreciation or if we're continuing to monitor the developments and of course, we're very supportive of a tax regime that stimulates investment in to the network into the U S.
Peter Oswald: Leadership on this front with regards to 'twenty four we're not we're anticipating to be a significant cash taxpayer. So it wouldn't impact the guide for 'twenty 'twenty, four and we'll see where it goes and of course as it develops we can update you later in the year for outer years.
Peter Oswald: Awesome. Thanks, guys.
Peter Oswald: Yeah.
The next question is from John Hodulik with UBS. Please go ahead.
Peter Oswald: Great. Thanks, guys. Good luck.
Peter Oswald: Afternoon.
Peter Oswald: If we could talk all over our competition that'd be great I guess from what we can tell.
John Christopher Hodulik: On both sides first from a gross adds standpoint, you guys saw some acceleration in phone gross adds.
Quarter to quarter. So just just what youre seeing in terms of so the competitive offers in the market in the fourth quarter and maybe into into the first quarter and then on the other side churn ticked up for the first time in a while I think so what.
John Christopher Hodulik: Potentially driving that in terms of postpaid phone churn and do you expect it to do that.
John Christopher Hodulik: To remain elevated or keep moving in that direction or what should we expect there.
Mike Sievert: I'll start on churn and maybe hand, it to Mike on competition.
Mike Sievert: Churn was was up nine basis points sequentially and if you look at the last several years since we completed the merger from Q3 to Q4. The average is 10 basis points sequentially. So it's right in line, maybe even a little better than past sequential moves our business tends to be seasonal.
Mike Sievert: With Q4 being a higher time period of churn and you know and that being said I was really pleased with getting the nine basis points given some of the optimizations that we're fully implemented in Q4 that I mentioned in response to an earlier question.
Mike Sievert: Look there's no question in my mind that we are on a journey towards the best churn in this industry and that's because we have the best value and the best network and a history of being able to treat customers with respect and so we'll find that journey, making its way 24 is going to be an interesting year, because as I mentioned earlier there are.
Mike Sievert: <unk> across the board that we may find our in our best interest to take as long as they don't put at risk our superior value proposition as long as they're things that'll be well accepted or even appreciated by customers and so I can't give you specifics on the guide I can tell you that with this churn nine basis points higher sequentially, we delivered a big beat in.
Mike Sievert: Postpaid net additions on phones of 934000 bigger than we guided even during the middle of the quarter and so we're very comfortable with the formula and we're comfortable with the formula impart because competition has been remarkably consistent and I'll, let Mike talk about what we're seeing here.
Speaker Change: This has always been a really competitive environment and the industry in a dynamic and competitive and honestly that's the way we like it for us.
Mike Sievert: There's lots of competition and customers are looking around shopping T. Mobile ends up being the net winner and you see that both in twenty-three with and in Q4, specifically with T mobile having the highest share of net adds and you saw consistently throughout the year with the account growth the T mobile posted which was highest by far in the industry.
Mike Sievert: What we saw in Q4 that I would describe is generally consistent with what we saw last year offers were pretty much the same.
Mike Sievert: Aggressive, but pretty consistent with previous year I think what what's been different is the way that T mobile or what's evolved maybe I should say is the way the T mobile competes Mike and Peter both talked about this value proposition, we have of best value, which historically has always been the thing that T. Mobiles owned and then more recently <unk>.
Mike Sievert: <unk>, the best network and those two things together really creates a unique value proposition that is unmatched in the industry and is resonating with customers. You saw you saw it again in Q4 and you continue to see us enhance it as we did this year with the launch of the <unk> plans the launch of a phone freedom, which in a shopping.
Mike Sievert: Like Q4 as customers are looking to upgrade.
Mike Sievert: We think really resonated and you saw it in the net add performance.
Mike Sievert: Great. Thanks, guys.
Mike Sievert: Yes.
Speaker Change: You bet. Thanks, Jim. Thanks, John next question. Please. The next question is from Michael Rollins with Citi. Please go ahead.
Thanks, Good afternoon, two questions if I could first when you look at the core EBITDA margin profile are you still targeting to get to a margin at or above 50%.
Michael I. Rollins: How do you see the pacing to get there.
Michael I. Rollins: And then second was there anything specific that influence the pace of share buyback dollars I think it was <unk>.
Michael I. Rollins: Add a little bit year over year down sequentially, and maybe put that into context of your current capital return goals that you highlighted a few months back.
Mike Sievert: Alright, let's start with core EBITDA. According to the margin Peter Alright, well, Mike certainly our long run aspiration is to continue to see margin expansion inquiry, but much like you see us focus really the primary focus here is to continue to be the leader and continue expanding and our ability to deliver free cash flow Mark.
Mike Sievert: And relative to service revenue because that takes out all the noise of relative differentials on how P&L as a recognized backhaul et cetera, and really provides a true color for value creation, and that's where we're already in a leadership position and continue to see more expansion opportunity there.
Mike Sievert: Great and you obviously saw in Q4 it takes some investments to make sure that we could have a beat on customers and revenues and that is just helping with our confident guide in 2024. So when we see opportunities like that we take them. We've talked with you. Many times about that in the past second question was about share buybacks what happened in Q4, it was a little bit of a slowdown what are we seeing now what.
Mike Sievert: People expect naturally Mike I think what you saw was a little bit of a tapering or we're not going to talk about day to day dynamics, but a little bit of a tapering of the share buyback program as we were nearing that.
Mike Sievert: Issuance and that trigger point.
The Softbank shares so we're past that now.
Mike Sievert: We're confident in our ability to deliver what we've signed up for here, which as you know another incremental up to $16 billion currently authorized in share buybacks and dividends for 2024 and pacing towards that.
Mike Sievert: Thanks.
Mike Sievert: You bet. Thanks, Mike.
Mike Sievert: The next question is from Eric Lube Chau with Wells Fargo. Please go ahead.
Mike Sievert: I appreciate it thanks for taking the question.
Maybe just wanted to touch on the cost side of the business I know you mentioned youre at your targeted merger synergy run.
Mike Sievert: Our run rate and you had the head count reduction earlier this year, what other initiatives are on the table to kind of help you keep.
Mike Sievert: Now moving leverage up in the business either on the technology side in.
Mike Sievert: In distribution of small markets or anything else that you could comment on thank you.
Mike Sievert: Yeah, I'll just start by kind of reminding everybody that as Peter already pointed out the 24 guide at the midpoint is higher than our earlier capital markets Day Guide.
Peter Oswald: And it's 9% year over year, which is three times the expectation of our peers and so it's really terrific to see this business scaling and without the incremental year over year benefit of big expansions in synergies, that's mostly behind us almost entirely and so that's really great to see and obviously comes from ongoing progression of <unk>.
<unk> customers some of the best customers with the best payment records in the industry as well as efficiencies that we can see and how we run the business and.
Peter Oswald: And on to that as we said a big part of this is also the service revenue growth leadership that we anticipate that we expect to actually increase in 2024 on a growth basis relative to 'twenty three and then again, it's across the business I mean, we've made tremendous investments as we were expanding the network because we were expanding distribution.
Peter Oswald: We're reaping some of that but.
Make no mistake. This is a very scrappy team that's looking at not only just currently where can you continue to drive efficiencies, but how do you take advantage of the network modernization of technology modernization, while the buzzwords that you hear these days around AI and other things, but how do you do it in an uncharacteristic.
Peter Oswald: And with the customer at the center of it while driving efficiencies out of the business. So we see a lot of room to run here over over a multiyear arc on this front.
Peter Oswald: Great. Thank you.
Peter Oswald: That.
Peter Oswald: The next question is from Bryan Kraft with Deutsche Bank. Please go ahead.
Speaker Change: Hi, good afternoon.
Bryan Kraft: Two if I could first can you talk a little bit about your expectations for upgrade rates as they relate to this year's free cash flow guidance do you think.
Mike Sievert: Is low upgrade rates, we're seeing across the industry are going to begin to pick up anytime soon and are you doing anything proactively and retention that might drive it up and then separately. Mike you mentioned that you are in testing with Spacex on their device direct your device solution.
And you do get to commercial deployment of the service just curious as to what your expectations are for the products capabilities for customers how it fits into the product set and also if you have any sense for how much of your base. This feature.
Mike Sievert: Capabilities actually important too thank you.
Mike Sievert: Terrific, great well, let's start with upgrade rates.
Mike Sievert: We don't see big catalysts for change here.
Mike Sievert: Around the edges, there may be some and we can talk about those for example, we have a brand new rate plan called go five G. Next which offers upgrade benefits could could change it on the margin and other things, but generally speaking people are keeping their phones longer and they're doing that because the phones are very expensive and they're very capable for.
Mike Sievert: Our customers, 75% of them have five G funds that are able to take advantage of the vast majority of our advanced network capabilities that we already have implemented and so those kinds of things are a great position to be in and I don't think theres, a big catalyst for change in 2024.
Mike Sievert: As it relates to Spacex Yeah, we're really excited about it and way back when we announced it we talked about the capabilities starting with text messaging peer.
Mike Sievert: Peer to peer text messaging the ability to reach people. If you can see the sky, we expected to cover the Continental U S. Big parts of Alaska Big parts of the world's oceans and be able to allow you to stay in connection with your loved ones that'll progress into picture messaging and eventually <unk>.
Mike Sievert: <unk> and other capabilities and the beta we expect if things go well, we should have these capabilities in customer hands. This year as it relates to who and appeals to look anybody that finds themselves on occasion and one of the 500000 square miles in this country not covered by any of the networks and that's most of us.
Mike Sievert: And so there's something about the peace of mind, knowing that if you can see the sky generally speaking you're connected and that's our dream. That's the aspiration that we set out when we announced this partnership and its great to have the first satellites in the sky.
Bryan Kraft: Thank you.
Craig Moffett: You bet.
Speaker Change: The next question is from Kunal <unk> with Barclays. Please go ahead.
Speaker Change: Thank you.
Speaker Change: If I could first of them fixed wireless.
Earlier in the year I guess in 'twenty, three I think veal thought the thinking that it would do might slow down a little bit then.
In terms of growth rates it might be closer to 500000, but when we look at the second half of the year it feels like that.
Speaker Change: Still some secondary growth left.
Speaker Change: And so would be great to understand if this is demand driven or to some extent.
Speaker Change: As you open up the spectrum and as you.
Speaker Change: As your distribution channels become more efficient.
Speaker Change: This is more supply driven so it would be good to understand you know the mix of what's driving that growth.
Speaker Change: And then secondly on the on.
Speaker Change: On the ECP side 31, more housekeeping question I mean.
Speaker Change: As you explained I mean, it's not a big impact and it's mostly on the wholesale side, but you know the general article today mentioned some of the wholesale providers and they'd exposures, which seemed pretty big and I think some of them using Edward.
Speaker Change: This is a high margin revenue stream. So you said any way for us to understand if that is.
Speaker Change: Any timeline on when we might see this.
Speaker Change: As you mentioned, it's not material so maybe it doesn't matter than the full year scheme of things, but I don't know if it.
Speaker Change: Just the cadence of EBITDA anyway.
Speaker Change: Okay great.
Speaker Change: We don't know whether it'll be material, but we do know that and are reasonably confident that's fully embedded within all of the outcomes that we provided in our guidance range to you, but let's start with fixed wireless and go to Mike and then Mike If you want to transition to what we're seeing with ACP and Peter will probably pile on.
Speaker Change: Yeah, I think on the fixed wireless side like I like I mentioned earlier, we've seen steady demand for this product since its launched in a lot of the things that you mentioned are absolutely true like our execution has gotten better we have built more stores. So like we've got distribution closer to customers in areas like rural areas, there's more awareness of the product both generally and the overall mark.
Mike Sievert: But also within our base all of those things certainly have been factors I think the other big thing that's been a factor as churn because remember that in the net additions are the you know the difference between gross adds and the number of customers that churn and we've seen a steady improvement with churn with HSI.
Mike: Your year over year really across every single 10 year cohort, we knew the churn would come down as our base, aged and got into later cohorts, which we see the later cohorts of customers in this churn at a rate that's pretty comparable with cable. So we knew that churn would come down as our as our base, aged but what's really exciting is as the product has improved.
Mike Sievert: Himself and his experience has improved and frankly as our execution has improved even though early tenure cohort churn has started to reduce and we've seen that consistently throughout the year.
Yeah, and I would just add on to that to your point remember, we're well on our way to our seven to 8 million target and hence some of the moves we've made to really optimize value creation and so I'd, probably expect on a quarterly basis and that's might be in the 400000 Arrangers was really what you need to get to that ambition, while creating more.
Mike Sievert: Value given some of the promotional pricing that we've now paired back on ACP I think the important element is what we'll see where it goes but our anticipation with everything that Mike highlighted around the category itself is the outcomes inclusive of should ACP not continue on as embedded.
Mike Sievert: In the core EBITDA guidance range that we provided as well as in our expectation that service revenue growth will be larger than four year 24, then 2023. So that's all embedded in the guidance that we've provided.
Mike Sievert: Thank you.
Mike Sievert: Alright.
Mike Sievert: The next question is from Ric Prentiss with Raymond James and Associates. Please go ahead.
Ric Prentiss: Good afternoon.
Ric Prentiss: We will follow along those same lines a little bit can you help us understand obviously tracking went off could be some dish coming off on the wholesale side as well how much magnitude should we be expecting wholesale might drop this year, knowing that you have some ranges out there.
Mike Sievert: Yeah, we haven't specifically guided to that and remember we have a little bit of visibility given some of the M. P G, which do trail off with respect to dish, but I'd expect a continued year over year sequential decline, but not a specific guide on wholesale.
Ric Prentiss: And that's obviously factored into the guidance that we've provided absolutely.
Ric Prentiss: And then any update on mint going on 10 11 months.
Ric Prentiss: What is <unk> position on ACP.
Ric Prentiss: Yeah, So Matt when we anticipate meant to close in Q1 and that is included in the guide itself and of course that will resolved once it does close in a little bit of service revenue and cost geography changes with minimal net impact to core, but as we talked about earlier.
Ric Prentiss: But all of that including HCP contemplation is considered in the guide that we gave but it wouldn't be appropriate for me to speak specifically about mint as we haven't closed yet.
Ric Prentiss: Last one for me is you talked a lot about.
Net adds doing strong service revenue adjusted EBITDA for Tuesday versus the peer group.
Mike Sievert: Are we ever hear you guys talk about EPS, because clearly the peer group talks Etfs as well.
There are some things that make it tough but will there be some day, where do you think about talking to us about an EPS guidance.
Mike Sievert: Yeah, I think that they that they will come you know obviously, we're still in this period in 2023, we had significant merger related costs were going to have a little bit of merger related costs in 2020 for probably 150 in Q1 and 50 in Q2.
Mike Sievert: But you are going to see us have more and more focus on EPS and obviously there was a couple as I mentioned, a couple of catalysts, including the $48 8 million shares for Q4, but you'll see us more and more focused on EPS look that the margin expansion is going to flow into the bottom line and you'll see us there we're not quite there yet a little bit more work to do.
Craig Moffett: With the merger related costs and other things, but it's definitely something we keep an eye on and that's important.
Craig Moffett: And the shareholder return program that we have underway really helps with it overall. Despite this dilution event that we saw the overall trend is anti dilution as we retire shares through the program. So it's a good trend to be on.
Craig Moffett: Thanks.
Craig Moffett: We are we've got a lot of activity on social Janice you want to yeah. That's what we're seeing yeah I think theres. One we're seeing this theme in a few places. So I'll take this question. So first of all congratulations on a great year, but could you provide more color on your enterprise business, especially beyond connectivity and revenue traction.
Janice Smith: No, we havent really covered that yet.
Janice Smith: Kelly.
Janice Smith: Well, thanks, Janice and.
Janice Smith: Just tell you what are the different phase in our business.
Janice Smith: Last year my leaders transformed the talent and activity of our sales team and we've upgraded our product portfolio with solutions like T cell secure and connected workplace managed services. The Cisco Meraki that we just announced yesterday, we've moved from transacting with lower level procurement employees to sitting at the table.
Janice Smith: With <unk> as their trusted partners for connectivity solutions and also business customers as we talked about before they test our network before purchasing and what they find is the most modern the most distributed nationwide Tri band five G. Standalone commercially available for slicing network.
Janice Smith: And they have determined its superiority all of this translates right back into our core business. So we delivered on our highest quarter and year ever in business postpaid phone net additions and gross ads and our results outperformed our benchmark competitor once again.
Janice Smith: Enterprise, we delivered our highest win share rate with postpaid phone net additions in our results.
Mike Sievert: Allowed us to bring on new customers like Salesforce, and Rei and deepen our relationships with Delta door Dash meta UBS just to name a few and then the public sector, we drove double digit growth in our new public safety account, especially with first responders, who recognize that we at T. Mo will provide a more secure prioritize.
Speaker Change: Connection over a faster and larger network, we continue to grow and compete successfully and small businesses best quarter and year, yet and saw positive putting trends versus both of our principal competitors and the third consecutive quarter interested we're bringing in as a as Peter mentioned earlier.
Speaker Change: Kylie profitable customers with attractive <unk> and as it relates to <unk>.
Speaker Change: Revenue outside of our phones. We also saw some key wins in our advanced network solutions. This past quarter with Formula one in Las Vegas, where we.
Speaker Change: Leslie demonstrated a commercial.
<unk> of network slicing was 230 points of sale that was incredible and also signed a deal with PGA of America's square, where the official <unk> innovation partner enhancing how players and fans to experience. The game. So hopefully that gives you a little bit of insight on what we're seeing it's kind of need to see that if you just listen to that.
Leslie: That essentially our whole business effort is just kind of grown up.
Leslie: And we're now competing to solve really important organizational problems for enterprise and government with the corner office and that's just a different place for US and you know it's been interesting to see you've had to retool all the skills and the capabilities and the solutions and now we have this business that is just breaking records and there's a lot of room to run because we're at the very beginning I think of.
Mike Sievert: <unk> and organizational leaders rethinking their connectivity in the era of AI and when they start to assess who's best positioned in this era to provide reliable secure connectivity it with dedicated spectrum. It's T mobile and so it's just a it's just we're lucky to be in this moment.
Mike Sievert: At the very moment that everyone's rethinking everything in technology. Thanks to the advent of AI and related technologies. So it's a great place to be.
Mike Sievert: Let's go back to the phones and the next question is from Peter Zaffino with Wolfe Research. Please go ahead.
Mike Sievert: Hi, Thank you.
Peter Zaffino: I'm wondering two things what about fixed wireless.
Peter Zaffino: You talked a bit about a slowing net add growth rates still obviously at a really attractive level with better price and value for you.
Peter Zaffino: I'm wondering if you could get closer to your target thinking out a couple of years do you manage this business at a high rate of speed right up to the target and then slam on the brakes or does.
Peter Zaffino: Is there some organizational benefit to a more gradual deceleration and then the second question relates to postpaid phone <unk> I know that youre not guiding to it and just wondered if you could discuss the drivers in 'twenty four and how they might differ from 23. Thank you.
Peter Oswald: Sounds good I'll take the first one and then maybe hand it to Peter.
Peter: As we said in response to an earlier question is kind of too early to tell.
Peter: What's going to happen as we start to get towards that initial goal for our fixed wireless business of seven to 8 million subscribers as Jon reminded us and right now we want to make sure that we're serving mainstream customers with a fantastic product at a fair price and we start to ease our way towards that moment, but we also don't know as we.
Mike Sievert: Said earlier, you know, whether that's really the final destination or not whether or not there may be other models that allow us to extend past that and you know so look we'll learn more with each passing quarter, but I think the moves we've made that Mike outlined I think well a few minutes ago. This is the right time for them to make sure that we're serving mainstream customers with our great product we're meeting the demand up.
Mike Sievert: Appropriately.
Mike Sievert: And that were correctly monetizing it so that we're able to continue serving customers in the best possible way. So I'm really happy with where we are this the demand for this product based on the quality of the product has just been phenomenal and I think a lot of it now is word of mouth, because that's what happens when you get nearly $4 8 million customers using this product everyday at very high.
Mike Sievert: Nearly the best in the industry net promoter scores well then they do they tell other people that they've discovered something great and that just feeds on itself. So that's a really good place to be.
Mike Sievert: Secondly, unpacking ARPA and is there anything different in the dynamics for 24 versus 23, yeah.
Mike Sievert: You had 24, we'd expect to be generally stable to 'twenty to 'twenty three in terms of dynamics, that's going to be the same set of dynamics you have growth in high value, creating enterprise and government customers you have growth in tremendously great CRB segment customers like 55, plus and military on the consumer side, which John is just seeing true.
John: <unk> success with.
John: Youre going to see uptake of our highest tier highest value rate plans continue it at a great clip and then it just becomes a mixed driven metric and again, we tend to solve for arc pine ARPA growth in overall service revenue growth is the focus point. So that's what it's going to be more of the same with regards to ARPA.
Shlomo: You bet. Thanks Shlomo.
Shlomo: You bet hopefully you can tell we're trying to get to absolutely as many questions. As we can this time, so let's keep moving.
Shlomo: And the next question comes from Timothy Horan with Oppenheimer. Please go ahead.
Shlomo: Well. Thanks, guys you had a goal a few years ago 15 fold increase in wireless capacity.
Timothy Horan: Can you give us some update kind of where we are at this point and just what <unk> is meant for maybe latency or anything else with the network and I know you talked touched on network slicing, what was formula one and PGA doing kind of before you kind of came along for wireless capacity how much of.
Timothy Horan: Improvement wasn't so at this point.
Mike Sievert: Well first on overall capacity, it's a good opportunity to turn it to often maybe you can say what we're seeing now that we're substantially complete with the initial bill yeah. Thanks, a lot Mike and thanks for the question well overall the network capacity on this fantastic network is outstanding and keeps increasing on five.
Mike Sievert: As we are pivoting over frequency from our LTE customers over two five D and we keep doing that all the time. That's why we can stay ahead of the curve, both with our HSI customers being inside that mobile umbrella, but also making sure that we have enough capacity to grow for all the traffic growth on the network and as Mike said.
Mike Sievert: Alluded to earlier, we just see an increasing usage people use more and more of the of the goodness that we provide and I'll also say that that this is across our entire geography.
Mike Sievert: We have to remember that our network is much much larger in size than five G than any of our competitor in this country. We have on our five year coverage more than twice the area of Arcos is competitor on our ultra capacity, which is what provides all of that capacity.
Mike Sievert: When it comes to the second question, which was around network slicing and.
Mike Sievert: In Las Vegas, and as Kelly alluded to this was a true success story, we were the only operator in the world are in the country that could provide a true beta version because of our Standalone core that we have in this network of network slicing in other words, we can program our network to make sure that services work, while all the other.
Mike Sievert: Services and serving all the other customers on the network at the same time, we were able to provide network slicing during the start of the race, which meant that we could both make sure that all of those points of sales had full service to everything they were doing at the same time is 100000 customers per day, we're using our network during that <unk>.
Kelly Smith: <unk> the arrays watching their apps doing all the activities that they would be doing this as almost never happened in formula. One history is normally very congested very difficult to do anything when so many customers are accessing the network at the same time and that's what network slicing was proving to do in Las Vegas and has just started early to come we're going to roll these kinds of things.
Kelly Smith: Out too much more events in the future.
As it relates to your specific wonderful and as it relates to your specific question on the 15th I actually don't have the answer at my fingertips. So I'm going to look into that I can tell you that when we made that estimate.
Kelly Smith: What we had in mind, where the commercial results that we have delivered in spades being able to see phone usage grow the way. It has grown at T. Mobile it's now more than triple what it was five years ago four times, the speed and then some and being able to handle this massive.
Home broadband business on top as well as all the growth that we see in enterprise. So as we laid out this network back way back in 2018 and planned. It we have met every single expectation that we laid out there, including some stringent.
Kelly Smith: Commitments that we made to the FCC as part of the merger process and just completed a massive nationwide drive in order to be able to make those goals. So I.
Kelly Smith: I would be surprised if it's anything other than the 15 X has been achieved but I'll have to double check on that as it relates to the.
Kelly Smith: F. One it's fascinating you hear off talking about network slicing and what it's doing for people and there have been lots of applications. You know we talk about F. One because it's very public and it's going to be great.
Kelly Smith: Case study for all of our executive briefing center visits et cetera, but there have been lots of these now and look your previous options, where either string wires everywhere, you know which was not ideal.
Kelly Smith: Or rely on Wi Fi, where you have no control over the radio spectrum and it's our best efforts service with a shared spectrum and so this is a breakthrough for organizations that they need mission critical distributed connectivity network slicing on <unk> is a breakthrough solution for that we're going to see lots of applications law.
<unk> powering the commercial operations at F, one where its the perfect solution.
Mike Sievert: So Mike do you think there's a way that the industry can grow oracle's faster I mean, we've been kind of growing way way below inflation for a long period of time, but we're seeing major improvements in the network.
Mike: I mean is there any way to kind of get to inflation type ARPA growth overtime.
Mike Sievert: I mean, there's this industry gives a remarkable value.
And we've been talking about that a little bit during the call as it relates to T. Mobile we're always looking for ways that we can serve customers better and make sure that we build a profitable business around that and we have to do that smartly. So that we defend and extend our fame is the value provider because that's so important and we have lower <unk>.
Mike Sievert: So that should be defensible over the long haul as evidenced by things like a lower debt structure and lower cost to service that debt than anybody else in the industry. So it's a defensible place, but we have to defend it by making smart decisions and we have the best network and that should allow us to find the right optimizations to be able to serve customers better.
Mike Sievert: We can't give you predictions over the long haul other than to say that in 2024, we see opportunities and that's why we've got a confident guide and 2% year over year gain in ARPA and over the long haul we will see what happens, but I will tell you that I am pleased that customers are getting such incredible value from this category and that certainly does open up opportunities for us.
Mike Sievert: Just to make sure for T mobile that if there are opportunities for us to monetize that in smart ways that it will be appreciated by customers will find ways to do that.
Mike Sievert: Thank you.
Mike Sievert: Alright, I think we've got time for one final question operator, and that question comes from Greg Williams with TD Cowen. Please go ahead.
Greg Williams: Great. Thanks for asking me in first question is just on the industry as a whole. It's the third carrier to report this week and showing some strength here and in your postpaid add guidance I'm just curious to what degree do you expect the industry to soften up in 'twenty 'twenty four is it sort of the same level of softening you saw in 2023.
Greg Williams: Second question is just on capital allocation just curious how sacrosanct is your buyback if I think about say fiber M&A materializing and you're thinking rates could potentially come down over time would you consider.
Greg Williams: Cutting the buybacks or M&A or again is it sacrosanct and you consider levering up and keeping the buyback just curious to hear your thoughts. Thank you.
Greg Williams: Alright.
Greg Williams: In the context of the guide for the industry as a whole we do expect some moderation year over year, probably a little bit more moderation in our expectation than what you saw in 'twenty two to 'twenty three but look when you look at it from a number of scenarios and kind of give a range and our job is to within whatever happens in there to continue to be the share taking leader and when we see it.
Greg Williams: Accretive opportunities to go above and beyond much like we did in Q4 and all of 2023, we will deliver on those so that's kind of what we what we look to and work with them in terms of capital I mean would you talk about fiber and all of that if you recall, what we said is we thought it was the right time and a prudent thing to do in the rate environment and what.
We saw to Delever, a little bit more rapidly to the two and a half point by the end of 'twenty 'twenty four we're there at the end of 2023, but there's some puts and takes in terms of timing of payments for example, with respect to Columbia capital, but it was the right thing to do there, but even within that which allowed that envelope that we've announced of share buybacks and dividends.
Greg Williams: There was some room for investment and so we will look within there, but the capital allocation methodology that we look at is the same it's always been and will continue to be what are the highest value creating opportunities that we can see as a management team investing in the network investing in growth of the core business the adjacent business.
Greg Williams: And then of course, we'll look at all other things beyond that whether that's in the fiber space, whether that's the U S. Cellular's, we'd look at that process and see are there value, creating opportunities that would be the right thing to do and invest in but we have a little bit of a wiggle room in there in terms of an envelope for investment.
Greg Williams: Even within the guide that we gave you and if it's further comfort.
Greg Williams: We'll tell you obviously were going to be guided by what creates value and there are no absolutes, there so but.
Greg Williams: But I will tell you were not pursuing.
To the premise of the example in your question, we're not pursuing a big like on balance sheet transaction on balance sheet transaction in this space, where there is no big deal on the horizon that we see.
Greg Williams: That would knock us off our pace and.
Greg Williams: I think that's important calculus.
Greg Williams: If something presented itself that made a lot of sense for shareholders our jobs to bring it to you, but right now we don't see it.
Greg Williams: Got it thank you.
Kelly Smith: You bet.
Kelly Smith: Thank you Greg.
Kelly Smith: That's all the time, we have today really appreciate everybody joining us and we look forward to speaking with you again soon.
Kelly Smith: Have any further questions. Please don't hesitate to reach out to either the investor relations or media relations departments with that thank you very much.
Kelly Smith: Ladies and gentlemen, this concludes the T mobile fourth quarter earnings call.
Kelly Smith: Thank you for your participation you may now disconnect and have a pleasant day.
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