T-Mobile US, Inc. 5.500% Senior Notes due March 2070 Goldman Sachs Communacopia + Technology Conference 2026

It is great to be here. Thanks for having me. Great.

Great. Just before I get started, I need to draw your attention to the safe harbor statement. We just pull that up or It was just on.

It was just on. Just to make sure that I'm covered on that, because I will talk a bit about the future and use some non-GAAP measures. Let me start with your question of has anything surprised me almost a year in. Not really, because I've been associated with the company for nearly 10 years now. I must say, though, what has impressed me is the depth and width of our strategic moats, because I tend to think of most businesses and industries as what makes them sustainable is the quality of the moat that you have around you. I think about our moat in two ways. The first is the growth portfolio and what growth it enables, and the second is culture. Because in a company like ours, the two of them are inextricably linked. Let's talk growth first. When I look at what we have, and I'll start with consumer wireless, our biggest business.

Consumer wireless, we're unique because we're the only carrier who can genuinely say we offer the best network, best value, and best experience. Let me spend a minute on best network first. In many ways, when we talk about best network, where we are at this point in time uniquely feels a bit like being back in 2020, where you have some players talking about how network doesn't differentiate, which shocks me a bit because that's your core product. Others deploying capital into other businesses. We are ruthlessly single-minded focused on building the best network and enhancing it. We're already the best network, now we're really working hard at how we enhance it. Let's put some facts behind that. We rolled out our 5G standalone back in late 2020.

It's almost five years ahead of the rest of the industry. We're continuing to double down on our network, and we're seeing big payoffs on that. Quarter 2, our port-ins had a 20% higher ARPU than our port-outs. Our premium loading plan ratios is in the 60s, as against the base, which is in the mid-30s. We're seeing that consequent doubling down on best network really paying off in terms of the quality of customer we're attracting. The second leg of this, which is best value. That's something we've historically been really famous for. We define best value not just as best price, but the best value to break through customer pain points. We just launched our Nothing plan, which addresses a significant pain point.

And the way I think about value is, again, this is partly what you offer the customer, partly what your economic sets you up to do. Again, we are unique in that our front book is, or our new customers are actually higher priced than our base, which gives us enormous flexibility in terms of how we price, but also means we are probably the only player in this industry where when you see growth in net adds, it also means growth in revenue because the math of it is ridiculously simple. If you are losing customers of much higher value than what you are gaining, then you need more than positive net adds to dig yourself out of the revenue hole.

We are in the very fortunate place where, and we will zealously guard that, where our best value position is not just about what we offer the customer, but also a fundamental flywheel in terms of how it drives our economics. Best experience, great people, and I will talk a bit about that when I double down on culture. Now fueled by T-Life, more than 30 million monthly actives, and I know we will come back to talk about AI, but now fueled by AI and the huge strides we are making on that. All of that really covers off why I am super excited by growth in consumer wireless. The big thing is it is not just consumer wireless, because you look beyond consumer wireless. You look at our broadband business.

We have created the FWA category, and we just upped our guidance a little while ago from 12 million to 15 million customers by 2030. You add on 3 million to 4 million fiber customers, and we are talking about doubling a business in the next four years. That business came from a standing start in 2023. So when you are thinking growth, huge upside there. Then you look at T-Mobile for Business. More and more businesses are going wireless. More and more businesses are recognizing that if your business depends on it, there is really only one wireless network you can count on. And we have 10%, 12% share when you look at the bigger businesses, lots of upside there. What is even more exciting than that is physical and edge AI.

You just had Jensen on stage, and he and I have spent a lot of time talking about when AI becomes kinetic or mobile, when objects with AI are more than places you write poetry, but things that move. Having a low latency 5G SA going on to 6G network is absolutely critical. Then the latest addition on our growth portfolio, financial services. We launched credit cards back in November, and Capital One is already calling it one of their most successful co-branded launches. So I look at that portfolio and it is hugely exciting. I have seen the business from the board, but I think the thing that has surprised me to some extent, that has impressed me, is the depth and the width of the moat, because these are not individual pricing strategies or tactics. These are real, sustainable, defendable positions.

The number that captures a lot of it for me is an NPS of 46, which is the highest amongst the big three ever. The other big bit of the secret sauce that I think is totally unreplicable is culture. That is a big part of what T-Mobile has been. That culture plays very closely to customer experience. That is all about being completely obsessed about that. The way we articulate it is frontline first and the customer is why. We have doubled down on that. I have doubled down on that over the last three to four months. We have got three big programs going. One of them is the Magenta AI Institute, which is we are spending more than $100 million over the next few years.

Really, and this is a bold claim, to be the best in the world at preparing our people for the future, because we believe that that is critical to who we are. Second bit of it is pretty unique. It is called Frontline Connect. This will make you laugh because lots of companies have these things where you get senior management to go spend a day or two in the field, in stores, or on the network side, et cetera. Frontline Connect is unique. 750 managers, everyone director plus, will spend two days. Here is where the rubber hits the road. You do not get your annual stock bonus unless you make a commitment on how you will improve the life of the frontline, and the store manager or the frontline person signs off that that commitment will make a difference to their life. That includes me. Last but not least, there is value share, which is as we look at all this growth, we will create enormous value, and we are committed to sharing that with our employees.

So we have announced a $12,000 multi-year grant, based on performance, to all our employees, every one of them. So that is close to a billion-dollar investment in doubling down on our culture. So I put those two things together and that is really what the moat looks like. A big part of culture is also leadership team, and we have been very thoughtful as a company in how we plan transitions. You saw the Mike-me transition. There was no kind of surprise. I have now got a management team and a leadership team that I feel balances the depth of experience at T-Mobile.