President & Chief Executive Officer
Once again, setting new records
Seven years ago we set out to disrupt the wireless industry and change the status quo by listening to our customers and solving their pain points through our signature Un-carrier moves. It's this Un-carrier strategy and our unrivaled customer-experience obsession that are the driving force of our success.
Year after year T-Mobile continues to fire on all cylinders, and 2019 was no different. In 2019 we delivered record financial results and strong customer growth. On top of that, we launched America's first nationwide 5G network with our 600 MHz spectrum. This 5G network is the foundational layer of 5G coverage, and it's just the beginning of our 5G journey! In addition, we continue to expand our footprint and improve network performance, because customers shouldn't have to sacrifice network quality for a better value.
Changing Wireless for Good
As the Un-carrier, we've built a differentiated brand that is backed by a culture centered around caring about our customers. It's these tens of thousands of crazy-talented, customer-obsessed employees who are the secret sauce to our success.
All the while, T-Mobile has been working diligently over the last two years to effectively close our merger with Sprint to create New T-Mobile on April 1, 2020, while simultaneously delivering record business results. With New T-Mobile, we will create the world's most transformative 5G network — supercharging innovation in the U.S. and connecting people throughout the country. Ultimately, the merger allows us to unlock the potential of massive scale, enabling us to support better services at lower prices.
Together we have the brand, the people, and the network to SUPERCHARGE our Un-carrier strategy!
Strong Customer Growth
In 2019 T-Mobile continued its trend of strong customer growth, as more Americans chose to join the Un-carrier movement. The company delivered 7 million total net additions, our sixth consecutive year with more than 5 million. In addition, the company added 4.9 million branded customer additions, our sixth year in a row with more than 4 million. T-Mobile led the industry, once again, with a total of 3.1 million branded postpaid phone net customer additions, further illustrating our ability to compete and take share in a competitive marketplace. And not only have customers chosen to join the Un-carrier movement — they're staying longer than ever before, as reflected by our low branded postpaid phone churn. In total, approximately 53 million customers have joined T-Mobile since the launch of the Un-carrier in 2013.
We'll continue forward with our customer-experience obsession, determined to bring the Un-carrier to every potential customer in the United States.
2019 Customer Highlights
Total Net Additions
6th year in a row >5M customer connections
Branded Net Customer Additions
6th year in a row > 4M customer additions
Branded Postpaid Net Customer Additions
5th year in a row leading the industry
Branded Postpaid Phone Net Customer Additions
6th year in a row leading the industry
Branded Prepaid Net Customer Additions
Larger branded prepaid customer base than AT&T and Verizon
Branded Postpaid Phone Churn
Beat AT&T 5 quarters in a row
J. Braxton Carter
Executive Vice President & Chief Financial Officer
T-Mobile's 2019 full-year financial performance proved that putting customers first is also beneficial to stockholders. Once again we successfully translated strong customer growth into record financial performance — including industry-leading Service Revenue percentage growth, as well as record Total Revenues, strong Net Cash Provided by Operating Activities, and record Free Cash Flow. All the while continuing our virtuous circle of translating strong customer growth into revenue growth and using those profits to further invest back into our customers. It's a win-win!
TMUS Stock Price +23.3% in 2019
2019 Financial Results
7th year in a row growing YoY
6th year in a row leading the industry in percentage growth
Strong Net Income and YoY growth
Leading the industry in percentage growth
4th year in a row growing YoY
Note: Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. Definitions, explanations and reconciliations to the most directly comparable GAAP metrics are provided in our annual report on Form 10-K for the year ended December 31, 2019.
President of Technology
America's First, Largest, and Only Nationwide 5G Network
In December 2019 T-Mobile launched America's first, largest, and only nationwide 5G network. Covering more than 200 million people and more than 5,000 cities and towns across the United States with 5G — that's more people and more places compared to anyone else! This network is our foundational layer of 5G coverage on 600 MHz low-band spectrum — and we're just getting started! As we believe, 5G should be for everyone, everywhere.
T-Mobile's 5G network reaches more cities and towns than anyone else.
Our 5G covers more people and places than anyone else.
Covering 200M POPs
No other 5G signal is more reliable indoors and out.
>5,000 Cities & Towns
Other 5G only covers city blocks. Ours covers thousands of miles.
>1M square miles
600 MHz Spectrum
T-Mobile continues its rapid deployment of 4G LTE on 600 MHz spectrum using 5G-ready equipment, with 1.5 million square miles already lit up. By the end of 2019, we covered 248 million people in nearly 8,900 cities and towns in 49 states and Puerto Rico. Combining 600 MHz spectrum and 700 MHz spectrum, we've deployed low-band spectrum to 316 million people.
Nearly 8,900 Cities & Towns
In 49 states and Puerto Rico, 1.5M Sq. Miles
We continue to expand our footprint and improve the quality of our network to better serve our customers. By the end of 2019 T-Mobile covered 327 million Americans with 4G LTE — that's approximately 99% of Americans! We've effectively caught up to Verizon and AT&T's network population coverage.
Covering 99% of America
Customers have shown that they want to do business with a company that treats them right, eliminates their pain points, and changes the rules of the industry in their favor — and that is the Un-carrier way!
At T-Mobile, we are unabashedly customer-experience obsessed. Every decision we make is centered around doing what's right for our customers and putting them first. It's this unrivaled level of customer service that serves as our key differentiator and sets us apart from the competition.
We continue to raise the bar and usher in a new era of customer experience — not just in our industry, but in every industry.
Callie R. Field
Executive Vice President, Customer Care
Famous for Customer Care
Two years ago we launched Team of Experts — a radical re-invention of the broken wireless customer service model, bringing a dedicated team of highly trained experts assigned to customer accounts.
And the results speak for themselves! Customers are happier, staying longer, and deepening their relationships with T-Mobile — all while experiencing record customer satisfaction levels. In fact, T-Mobile received the highest score in both volumes of the J.D. Power 2019 U.S. Wireless Customer Care Full-Service Study and, most recently, received the highest score from J.D. Power for their J.D. Power 2020 U.S. Wireless Customer Care Full-Service Performance Study — Volume 1.
Jon A. Freier
Executive Vice President, Consumer Markets
Expanding Retail and Delighting Customers
In 2019 we increased our retail store footprint by 1 million people, and covered more than 270 million people nationwide with our T-Mobile and Metro by T-Mobile stores, allowing even more customers to join the Un-carrier revolution!
Customers have been so satisfied with our store experience that T-Mobile received record-breaking customer satisfaction scores, with an all-time-high Net Promoter Score of 82 for full-year 2019. In addition, in August 2019 T-Mobile received the number-one spot according to the J.D. Power 2019 U.S. Wireless Purchase Experience Full-Service Performance Study — Volume 2. This was our fourth consecutive win in delivering the best customer experience in our branded retail stores, leading the full-service wireless industry for two straight years!
Expanding in Underpenetrated Customer Segments
T-Mobile for Business
Five years ago T-Mobile went after the business market with our Un-carrier move 9.0 — Business Unleashed. Since then T-Mobile for Business has more than tripled its subscriber base and continues to be a driving force in our success. In fact, we swept the highly coveted annual J.D. Power 2019 Business Wireless Customer Satisfaction Study for businesses of all sizes, for the last three years!
Michael J. Katz
Executive Vice President, T-Mobile for Business
Matthew A. Staneff
Executive Vice President & Chief Marketing Officer
Magenta First Responder
In October 2019 T-Mobile launched Magenta First Responder — the best discount in wireless for first responders and their families, with 50% off family lines! With Magenta First Responder, we're putting money right back in the pockets of our nation's first responders and their families.
Essentials Unlimited 55+
After two years of continued success with T-Mobile's Magenta Unlimited 55+ plan, we decided to up the ante. In September 2019 T-Mobile launched Essentials Unlimited 55+ — the Un-carrier's best deal for customers age 55 and up, with two lines of unlimited talk, text, and high-speed data for $55 plus tax.
In April 2018 T-Mobile launched the Magenta Military plan, delivering one of the biggest discounts ever for active duty military, veterans, and their families, by offering them 50% off family lines. Magenta Military forced AT&T and Verizon to respond and altogether created a wave of change, potentially saving military families more than a billion dollars every year.
Fostering A Culture Built on Values
T-Mobile continues to disrupt the wireless industry by staking our business on putting people first. Now we're applying our Un-carrier spirit to tackle the most pressing problems facing our communities. That means connecting the disconnected, investing in youth, serving our veterans, aiding in disaster response, and empowering employees to give back to local communities. We're mobilizing for good.
We're actively renewing our commitment to the planet. T-Mobile has a long and strong history of disrupting the status quo, and now we're getting real about doing good for our environment. We're regreening our planet, one tree at a time, through our partnership with The Nature Conservancy. We're going green at our headquarters, and shaking up the industry as the first carrier to set science-based targets for curbing our carbon emissions. And as our boldest move yet — we've set an industry-leading commitment to renewable energy. Where we lead, others follow.
Diversity and Inclusion
Diversity and inclusion have been in the Un-carrier's DNA since day one — and we've been making significant strides ever since. Today our culture is an undeniable differentiator. It's our commitment to inclusion across race, gender, age, religion, identity, and experience that drives us to challenge the status quo every day. Diversity brings fresh perspectives. Inclusion enables new and different thinking. They are key to our culture and our success, and they will continue as key aspects of who we are.
Janice V. Kapner
Executive Vice President & Chief Communications Officer
Thank you, John Legere
Effective April 1, 2020, Mike Sievert succeeded John Legere as Chief Executive Officer of T-Mobile, pursuant to previously announced leadership transition plans. John will continue in his role as a member of T-Mobile's Board of Directors through the 2020 Annual Meeting of Shareholders.
From all of us at T-Mobile, we are grateful to John Legere for his incredible leadership over the last seven years. John has led an unprecedented turnaround and success story that have positioned T-Mobile toward an even brighter future, and greatly impacted the lives of customers, employees, partners, and investors.
On April 29, 2018, T-Mobile and Sprint entered into a Business Combination Agreement to come together to form New T-Mobile. After nearly two years of tremendous hard work from both companies, T-Mobile completed its acquisition of Sprint on April 1, 2020, to create New T-Mobile.
New T-Mobile is a bigger and stronger company, positioned as a fierce competitor and formidable disrupter in the wireless industry and beyond! With T-Mobile's low-band and high-band spectrum, and Sprint's mid-band spectrum holdings, we're going to create the world's most transformational 5G network. This will allow us to SUPERCHARGE the Un-carrier strategy and be a force for good — as we work to unlock the potential of our massive scale. Backed by the additional capacity, New T-Mobile's network will be able to offer unmatched value to consumers, with better service at lower prices — delivering substantial value to shareholders, employees, and the communities we serve. New T-Mobile gives us the opportunity to become number one — in market share and in our customers' hearts — as we strive to be one of the most loved brands in the world, famous for putting customers first.
Together we have the brand, the people, and the network to supercharge the Un-carrier – bringing more competition, more innovation, and even more customer-experience obsession! With New T-Mobile we have the scale and financial firepower to take on AT&T, Verizon, and big cable like never before!
5G for Good
On November 7, 2019, T-Mobile announced its plans for the first Un-carrier move for New T-Mobile — 5G for Good! This move features three bold initiatives that harness the new company's transformational network capabilities to bring accessibility and connectivity to all Americans!
Connecting Heroes Initiative™
A 10-year commitment to provide free 5G service — unlimited talk, text, and smartphone data — to public and nonprofit state and local first-responder agencies, ensuring first responders always maintain the highest priority on T-Mobile's network, regardless of data consumption.
Project 10 Million
An unprecedented $10 billion commitment to help eradicate the “homework gap” that exists for millions of children by offering free service, hotspots, and devices at reduced costs to 10 million households around the U.S. over five years.
In response to the COVID-19 pandemic, T-Mobile launched T-Mobile Connect ahead of schedule, in March 2020, because having a reliable, low-cost connection is critical for many Americans facing financial strain during a time of crisis. This groundbreaking prepaid service offer delivers a new, competitive $15 per month prepaid option to everyone, particularly lower-income consumers. That's half the price of T-Mobile's lowest plan at the time of launch. New T-Mobile is not just a bigger company, we're a BETTER company!
Mike Sievert CEO T-Mobile, Effective April 1, 2020
Effective April 1, 2020, Mike Sievert, previously our President and Chief Operating Officer, stepped into the role of Chief Executive Officer of T-Mobile, pursuant to previously announced leadership transition plans. This decision was made as part of a thorough, multi-year succession planning process, to ensure a natural progression of the business and find a next-generation leader who is committed to the strategic direction of the company.
Mike Sievert joined T-Mobile in 2012 as Chief Marketing Officer, and he became Chief Operating Officer in 2015. In 2018 he joined the Board of Directors and was appointed President of the company. Mike has been instrumental in leading the design and execution of 16 Un-carrier moves, and is 100% committed to continuing the Un-carrier strategy.
President & Chief Executive Officer
2020 Priorities with New T-Mobile
Looking ahead to 2020 and beyond—our long-term strategy remains to effectively balance growth and profitability.
To get there, our strategy is simple:
Unlock the Potential of Massive Scale
With the combined resources of T-Mobile and Sprint, we have the opportunity to unlock the potential of massive scale. We plan to rapidly execute a seamless, high-quality integration plan, enabling us to unleash an unprecedented $43 billion in synergies — creating a company with dramatically lower costs that's able to support better services at lower prices. In the end our competitors will be scrambling to catch up, ultimately leaving consumers as the ultimate winners.
Build the World's Most Transformative 5G Network
Together with T-Mobile's low-band and high-band spectrum and Sprint's mid-band spectrum holdings, we'll build the world's most transformative 5G network, which will be our foundation for growth! New T-Mobile will have the only 5G network that's both broad and deep, reaching nearly everyone. This network will have 14 times the capacity versus T-Mobile standalone, allowing us to leapfrog the competition in terms of network performance and capacity!
Become #1 For Customers
At T-Mobile we have a brand that's second to none, and we have an opportunity to become number one for customers — in market share and in our customers' hearts. With New T-Mobile's massive scale and the world's most transformative 5G network, it has enabled us to take on the competition like never before. Our commitment to our customers is our key differentiator, and we'll continue to strive to be one of the most loved brands in the world and famous for our customer experience across all industries.
Create Substantial Value for Stakeholders
New T-Mobile is well positioned to create substantial value for all stakeholders — including shareholders, employees, and the communities we serve. Armed with the massive capacity of our 5G network, customers will no longer have to choose between great service or a lower price — with New T-Mobile they'll get both!
It's been seven incredible years building the Un-carrier. In that time we've launched 16 Un-carrier moves that helped solve customers' largest pain points within the industry! These moves created permanent structural change and forced the industry to respond.