Financial Data and Key Metrics Changes - T-Mobile reported a strong Q1 2025, with postpaid service revenues growing 8% year over year and overall service revenues increasing by 5% [21][22] - Core adjusted EBITDA also grew 8% year over year, which is double the average of its wireless peer group [22] - Adjusted free cash flow reached $4.4 billion, marking a new Q1 record and translating to an industry-leading adjusted free cash flow conversion from service revenues of 26% [22] Business Line Data and Key Metrics Changes - T-Mobile achieved a record of 1.3 million total postpaid net additions in Q1, leading the industry in both total postpaid and postpaid phone net additions [10][21] - The company added 424,000 net customers in its 5G broadband segment, marking the thirteenth consecutive quarter of leading the broadband industry in customer growth [13] - Postpaid average revenue per account (ARPA) grew nearly 4%, the highest Q1 growth in eight years [11] Market Data and Key Metrics Changes - T-Mobile continued to grow its share of households across the top 100 markets, not just in smaller markets and rural areas [10] - The company reported that 60% of lines on new accounts are opting for premium plans, which is about double the current base [11] - The broadband business saw its highest ever Q1 ARPU growth, indicating strong customer demand [13] Company Strategy and Development Direction - T-Mobile is focused on delivering thoughtful, profitable, and durable growth, leveraging its best network and digital capabilities to enhance customer experience [23] - The company is set to officially launch T Fiber later in Q2, following the completion of its acquisition of Lumos, aiming to expand broadband choices for more Americans [14] - T-Mobile is also innovating with its T Satellite service, which aims to keep customers connected automatically, with commercial service starting in July [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain growth despite macroeconomic changes, emphasizing a strong focus on execution and customer service [8][23] - The management team highlighted that the competitive landscape remains intense, but T-Mobile's differentiated value proposition continues to resonate with customers [60] - The company expects to deliver total postpaid net customer additions of between 5.5 million and 6 million for the full year, with an increase in postpaid ARPA growth expectations to at least 3.5% [26] Other Important Information - T-Mobile's digital platform, TLIFE, has seen significant adoption, with over half of postpaid phone upgrades completed digitally by the end of Q1 [20] - The company is actively pursuing M&A opportunities, including the recent acquisition of Lumos and plans for MetroNet, which are expected to contribute positively to service revenues [29][75] Q&A Session Summary Question: What is the biggest opportunity ahead for T-Mobile? - Management highlighted the combination of a strong customer-focused culture, the best network, and advanced digital capabilities as key opportunities for growth [36][38] Question: Can you provide more details on T Fiber and its market approach? - T-Mobile plans to leverage its existing customer base and retail distribution to drive T Fiber's growth, particularly targeting customers on the fixed wireless waitlist [40][41] Question: How is T-Mobile managing pricing and churn? - Management indicated that recent price increases have been well-received, and churn rates are expected to be temporary as customers adjust [52][53] Question: What is the outlook for broadband contributions to postpaid net additions? - While specific guidance was not provided, management expressed confidence in maintaining strong growth in broadband and fiber segments [102] Question: How is T-Mobile addressing potential tariff impacts on handsets? - Management noted that any significant tariffs would likely be passed on to customers, potentially affecting upgrade rates, but currently, no material impact is anticipated [110][111] Question: What is the current state of the prepaid market? - T-Mobile's prepaid segment remains stable, with continued growth and reduced churn year over year, indicating resilience in this market [88][90]