T-Mobile US Q4 Earnings Call Highlights

Core Insights - T-Mobile is transitioning from a value carrier to a leader in network quality, emphasizing its advancements in spectrum depth and network density, particularly with its 5G standalone core [2][4] - The company is focusing on three differentiation areas: network, value, and customer experience, which are expected to expand growth opportunities across various segments [3] Financial Outlook - T-Mobile set a multi-year financial roadmap targeting approximately $77 billion in service revenue by 2026, with 900,000 to 1 million postpaid net additions and core adjusted EBITDA of $37 to $37.5 billion [5][14] - For 2027, the company expects service revenue between $80.5 billion and $81.5 billion, with a projected core adjusted EBITDA of $40 to $41 billion [15] Customer Experience and Value Proposition - T-Mobile's pricing strategy positions existing customers 12% to 15% lower than competitors AT&T and Verizon, with new customers seeing a 20% to 30% value gap when considering additional benefits [8] - The T-Life app has surpassed 100 million downloads, with a significant increase in unassisted upgrades, indicating improved customer engagement [9] Network Expansion and Broadband Goals - T-Mobile aims to reach 15 million fixed wireless access (FWA) customers by 2030, up from a previous target of 12 million, and plans to add 3 to 4 million customers through its T-Fiber initiative [6][12][13] - The company has increased its market share in rural areas from 13% in 2020 to 24% today, targeting network seekers who previously preferred competitors [11] Capital Allocation and Shareholder Returns - T-Mobile has returned over $45 billion to shareholders since initiating its buyback program, with plans to allocate up to $30 billion for shareholder returns in the coming years [18] - The company is accelerating share buybacks to up to $5 billion in Q1, with a remaining allocation envelope of over $52 billion for 2026-2027 [18]