Eight years ago, our unstoppable mindset sparked a revolution. T-Mobile changed wireless forever by putting customers first, treating them right, and changing the rules of the industry in their favor; itʼs what makes us the Un-carrier. And in 2020 — a year of extraordinary challenges — T-Mobile and Sprint joined forces to supercharge this proven Un-carrier strategy. Our combined people and assets, along with our newfound scale and capabilities, enabled T-Mobile to serve our customers better than ever before, and as a result we delivered our best year ever.
In 2020, T-Mobile again led the entire industry in customer growth, while overtaking AT&T as the number two player in U.S. wireless. We also delivered strong financial results that met or exceeded our guidance, as we rapidly worked to integrate T-Mobile and Sprint while delivering merger synergies bigger and faster than originally planned. On top of that, T-Mobile established itself as the undisputed network leader in the 5G era, with the largest, fastest, and most available 5G network in the United States. Together with Sprint, we’ve created not just a bigger, but a better T-Mobile. Together, we’re positioned to lead this industry for the duration of the 5G era and beyond. And together, we are truly unstoppable.
We changed wireless for good —
and we’re just getting started!
With our proven ability to compete and an unrelenting focus on the customer, our 5G network leadership combined with our already proven value and experience leadership, have enabled us to supercharge the Un-carrier. Our results are driven by leveraging our powerful brand and newfound scale to deliver more for consumers and businesses, in more places across the country, on our way to becoming number one in customer choice and number one in customers’ hearts.
In 2020, T-Mobile further cemented our position as the growth leader in wireless. The combined company delivered 5.6 million total net customer additions in 2020, and surpassed AT&T to become the number two wireless provider in the United States with 102.1 million total customers. The company recorded 5.5 million postpaid net customer additions, the highest postpaid customer growth in our history, including 2.2 million postpaid phone net customer additions. In a year that saw a low switching environment driven by COVID-19, T-Mobile proved that we can not only compete, but we can continue to take share in any competitive environment. T-Mobile is clearly positioned as the only U.S. wireless provider that can and will simultaneously deliver the best value and the best network to customers across the country. Our success in 2020 has set the stage for continued growth in the years ahead.
2020 Customer Highlights
Best in industry and our highest in four years
Best in industry and most in company history
Leading the industry for the 7th year in a row
Consistently growing both postpaid and prepaid
Including lowest in the industry postpaid phone churn for our Magenta base(excluding customers acquired in the Sprint merger)
Note: Starting in Q1 2020, we discontinued reporting wholesale customers to focus on postpaid and prepaid customers and wholesale revenues, which we consider more relevant than the number of wholesale customers given the expansion of M2M and IoT products.
Unless otherwise noted, historical results for T-Mobile after the close of the Sprint merger on April 1, 2020, reflect the Sprint merger and are inclusive of the results and operations of Sprint, while historical results prior to April 1, 2020, do not reflect the Sprint merger and are inclusive of the results and operations of stand-alone T-Mobile only. As such, the year-over-year changes may not be meaningful.
T-Mobile's full-year financial performance once again proves that putting customers first is good for business. We translated strong customer growth into robust financial performance, including strong Service Revenues, Net Income, Adjusted EBITDA, Net Cash provided by operating activities and Free Cash Flow. Our synergy-backed model enabled us to simultaneously deliver excellent financial results while leading the industry in customer growth.
2020 Financial Results
$45.0B in 2019
$34.5B in 2019
$3.5B in 2019
$13.4B in 2019
net cash Provided by operating activities$8.6B
$6.8B in 2019Includes payments for merger
and integration costs
FREE cash flow Excluding gross payments for the
settlement of interest rate swaps
$4.3B in 2019Includes payments for merger
and integration costs
Note: Adjusted EBITDA and Free Cash Flow excluding gross payments for the settlement of interest rate swaps are non-GAAP financial measures. Definitions, explanations, and reconciliations to the most directly comparable GAAP measures are provided in our annual report on Form 10-K for the year ended December 31, 2020.
THE UNDISPUTED LEADER IN THE 5G ERA
In 2020, T-Mobile established itself as the undisputed network leader in the 5G era, covering more people and more places than anyone else. At the end of 2020, T-Mobile’s Extended Range 5G delivered 5G coverage across 1.6 million square miles, reaching more than 280 million people. With dedicated spectrum across low, mid, and high bands, T-Mobile’s network resources are unmatched, allowing us to deliver the nation’s largest, fastest, and most available 5G network. T-Mobile is setting the pace of innovation in the 5G era, and we won’t stop!
T-Mobile has established itself as a global leader in 5G by delivering numerous technology firsts, including the first nationwide standalone 5G network in the world.
AMERICA’S LARGEST, FASTEST,
AND MOST AVAILABLE 5G NETWORK
Closing the merger and driving integration
On April 1, 2020, we closed our historic merger with Sprint and hit the ground running to bring the new, supercharged Un-carrier to even more consumers and businesses across the U.S. We introduced our new senior leadership team, aligned our brands as T-Mobile, ramped our network buildout, accelerated synergy realization, and so much more. We did this all while continuing to serve our existing customers and welcoming tens of millions of Sprint customers to the T-Mobile family.
INCREDIBLE PROGRESS IN OUR FIRST YEAR TOGETHER
Established a new leadership team bringing together the best of T-Mobile and Sprint.
Unified retail operations and rebranded thousands of Sprint stores to our flagship T-Mobile brand.
More than 4 million Sprint customer network migrations completed, and network cross-provisioning enabled.
Commenced site decommissioning and ramped network rollout to pave the way for durable 5G leadership.
Delivered $1.3 billion in merger synergies in 2020, well ahead of plan and guiding to $2.7-$3.0 billion in merger synergies in 2021.
Delivering more for the
customers we serve
Launched in 2019, T-Mobile’s Home Internet Pilot brought the benefits of the Un-carrier to home broadband and began to shake up an industry badly in need of competition. T-Mobile ended 2020 with more than 100 thousand broadband customers in our limited pilot. This pilot lays the groundwork for the commercial launch of our home broadband offering in 2021, and we’re excited to leverage our 5G network to deepen our customer relationships and unlock even more value for consumers and businesses alike.
In 2020, T-Mobile launched Scam Shield, the industry’s most comprehensive set of solutions to help protect customers from the abusive scam calls and robocalls that comprise the Federal Communications Commission’s leading complaint. Scam Shield features customer safeguards, including Scam ID and Scam Block, plus technology built into the heart of T-Mobile’s network designed to stop scams and robocalls in their tracks — all at no extra cost.
To help customers navigate the financial impacts of the COVID-19 pandemic, in early 2020 T-Mobile accelerated the launch of our first “5G for Good” initiative, T-Mobile Connect. T-Mobile Connect offers customer plans at half the price of our lowest priced smartphone plan, helping ensure everyone has an affordable option to get and stay connected.
Another of our “5G for Good” initiatives, Connecting Heroes, represents T-Mobile’s 10-year commitment to provide free smartphone service, including 5G access, to state and local nonprofit first-responder agencies across the nation. With state and local budgets under pressure nationwide, Connecting Heroes enables our first responder agencies to redirect dollars previously spent on wireless service toward lifesaving equipment, PPE, and training in an effort to help America’s frontline heroes at such a critical time.
we love our customers
Taking the customer
experience to new heights.
Putting customers first has always been the guiding principle of the Un-carrier — and that commitment enabled us to better serve our customers even as we navigated a global pandemic. In 2020, customers increasingly utilized digital for shopping and service interactions, and once again T-Mobile delivered industry-leading performance. Our focus on digital engagement and support that can empower customers to engage with us in the ways that work for them came to life this year, and we have more opportunity ahead. In parallel, our focus and commitment ensured we could make a rapid transition to relocate nearly 14,000 Care Experts from 17 Customer Experience Centers to a work-from-home environment and support our customers — and our Care Team won 2020’s top spot in J.D. Power’s Full-Service Wireless Customer Care Study for the seventh time in a row. Additionally, Metro by T-Mobile topped their segment in the J.D. Power U.S. Wireless Customer Care Mobile Virtual Network Operator Performance Study for the third time in a row, and T-Mobile for Business was top-ranked across all business sizes in the J.D. Power U.S. Business Wireless Satisfaction Study for the fourth year running!
Our Care Team won 2020’s top spot in J.D. Power’s Full-Service Wireless Customer Care Study – our 7th consecutive win!
Making an impact that matters
In 2020, T-Mobile not only became a bigger company, but a better one, delivering even more to the customers, employees, and communities we serve.
In September 2020, T-Mobile launched Project 10Million, a historic five-year, $10.7 billion initiative taking on an audacious goal: eradicating America’s homework gap by providing affordable, reliable wireless connectivity to the 10 million U.S. students currently without access to the internet at home. Since the start of the pandemic, T-Mobile has helped connect more than 2 million students across the country, including our Project 10Million participants. Project 10Million builds on Sprint’s 1Million Project Foundation, and T-Mobile is partnering with school districts across the country to offer free wireless hotspots, free high-speed data, and access to laptops and tablets at cost. And as remote schooling became the norm for many schools in 2020 due to the COVID-19 pandemic, T-Mobile enhanced the program to also offer school districts low-cost unlimited data options. Bridging the Digital Divide is a priority for us, and 2020 marked the beginning of work that should only grow from here.
The COVID-19 pandemic impacted everyone in 2020. Our top priority throughout the pandemic has been keeping our employees safe and our customers connected. T-Mobile was one of the first companies to sign the FCC’s Keep Americans Connected Pledge, to ensure customers could stay connected during the widespread job losses caused by the pandemic. We also launched a number of initiatives throughout 2020 to support our employees and customers throughout the pandemic. To support impacted communities, we launched #CaptureKindness and delivered 15 million meals to families and children in particular need during the pandemic. We partnered with the CDC Foundation to donate half a million medical face masks to protect healthcare workers on the frontline, and donated to the Boys & Girls Clubs of America COVID-19 relief fund to help provide childcare options to our brave frontline workers during lockdown.
Diversity, Equity, and Inclusion
Diversity, equity, and inclusion have always been at the heart of T-Mobile’s DNA. In 2020, these topics were brought to the forefront of the national conversation, and T-Mobile’s deep and long-standing commitment to our people, our customers, and the communities we serve has proved more important than ever. DE&I is critical to our Un-carrier culture, and it makes us a better and more successful company as a result. Last year we deepened this commitment by announcing an External Diversity and Inclusion Council, made up of the best thinkers and advocates in the DE&I space. This council is only one piece of our Equity in Action Plan to help identify priorities and set a course to hold the company accountable and make meaningful progress in diversity, equity, and inclusion.
The wireless industry plays an increasingly important part in advancing sustainable development goals, and T-Mobile has taken an Un-carrier approach as we continue to follow through on our long-standing enterprise sustainability commitments. T-Mobile established science-based targets to make a public commitment to reducing the sector’s overall carbon footprint, and we were the first major U.S. wireless provider to commit to 100% renewable energy back in 2018 — a goal we expect to achieve in 2021! Additionally, in 2020, T-Mobile landed on CDP’s A List for leadership in environmental ambition, action, and transparency — the only U.S. wireless provider to achieve that distinction.
2021: MAKING THE KEY INVESTMENTS TO UNLOCK AN INCREDIBLE FUTURE
In 2020, T-Mobile and Sprint joined forces and delivered the best year in our history. Our mission is to be the best in the world at connecting customers to their world, and together we will be relentless and unstoppable in that pursuit.
2021 will serve as a key investment year as we lay the foundation for an even better future.
The investments we’re making will further advance our strategic priorities and enable T-Mobile to achieve our vision — to become number one in customer choice and number one in customers’ hearts.
Unlock the Value Potential of Synergies and Scale
Build the World’s Best 5G Network
Deliver the Best Experience from the Best Team
T-Mobile accomplished so much in 2020, delivering industry-leading customer growth, overdelivering on merger synergies to deliver strong financial results, and building the nation’s leading 5G network — and we did it all while supporting our customers and employees through a global pandemic and positioning the company for long-term success.