T-Mobile(TMUS) - 2025 Q4 - Annual Report

Customer Base and Revenue - As of December 31, 2025, the company serves 142.4 million postpaid and prepaid customers, generating significant revenue from affordable wireless communications and broadband services[20] - In 2025, service revenues from wireless communications and broadband services were primarily generated from postpaid (81%) and prepaid (15%) customers[31] Spectrum and Network - The company has an average of 394 MHz of combined low- and mid-band spectrum nationwide, including 185 MHz in the 2.5 GHz band and 1,059 GHz of mmWave spectrum licenses[35] - A License Purchase Agreement with Comcast was entered into in September 2023, with total cash consideration between $1.2 billion and $3.4 billion for acquiring spectrum in the 600 MHz band[35] - The company has been recognized for having America's best network, utilizing a multilayer spectrum portfolio to enhance network performance[28] Environmental Initiatives - The company plans to pursue a science-based net-zero emissions target for 2040, covering Scope 1, 2, and 3 emissions, and has been investing in renewable energy since 2021[48] Service Plans - The company offers a variety of service plans, including premium Experience plans with unlimited talk, text, and data, and Essentials plans for budget-conscious customers[22] Workforce - The company employs approximately 75,000 full-time and part-time employees as of December 31, 2025, focusing on a dynamic and inclusive culture[36] Competitive Landscape - The telecommunications industry remains competitive, with the company being the second largest provider in the U.S., facing competition from major carriers like AT&T and Verizon[34] - The FCC's allocation of additional spectrum for broadband CMRS could significantly increase competition, impacting license values and financial condition[49] - The FCC lifted restrictions on EBS licenses, allowing current holders to sell licenses, which may lead to increased competition for 2.5 GHz licenses on the secondary market[51] - Several states have passed laws affecting wireless service providers, including privacy and net neutrality regulations, which could impose significant business costs[53] Financial Instruments and Risks - The company has €4.8 billion in EUR-denominated Senior Notes, subject to foreign currency exchange rate fluctuations, and has implemented cross-currency swap agreements to mitigate risks[349] - As of December 31, 2025, the company had drawn $2.0 billion under its ECA Facilities, which bear interest indexed to a benchmark rate plus a fixed margin[350] Broadband Expansion - The company is actively working on expanding its broadband services, including 5G broadband and fiber, to enhance consumer access[24] Foreign Ownership Regulations - Direct foreign ownership in CMRS licensees is limited to 20%, while indirect foreign ownership over 25% requires FCC approval; DT has been authorized for up to 100% ownership[50]