T-Mobile US, Inc. (NASDAQ:TMUS) Q2 2023 Earnings Call Transcript

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Mike Sievert: Well, it’s a good thing you are because we’re filling it up. So what’s interesting is that with 3.7 million high-speed Internet customers and rapidly growing, the average speeds on our network are not just twice as fast as our competitors, but growing. We’re speeding up, not slowing down on this network in terms of the average person’s lived experience. And that’s just phenomenal. And it’s — and we’ve got tons of capacity that we have not yet rolled out, which opens up more and more opportunity on our way to not only the 7 million to 8 million high-speed Internet customers, but our ability to, with the best network, continue to take share from our competitors. We said at the beginning, we had a two plus year advantage, and we would have it for the duration of the 5G era, and you’re proving us right with that work. So thank you. Operator?

Operator: Your next question comes from the line of Simon Flannery with Morgan Stanley. Your line is open.

Simon Flannery: Great. thanks a lot. Good evening. Just following up, if I could, on that spectrum deployment. I think in the past, you’ve talked about rolling out fixed wireless to a majority of the U.S. Perhaps you could just help us understand where you are on coverage today with the base offer and how that should evolve over time now that you’re at 285 going to 300. And I guess a related question is for Ulf. You didn’t mention the millimeter wave. I know you’ve been looking at potentially a macro overlay product. How are you thinking about that at the moment or attacking MDUs with millimeter wave. Thanks.

Mike Sievert : Well, let’s start with the millimeter wave question and we can come back to the coverage on fixed wireless. I can touch on that one.

Ulf Ewaldsson: Right. So we are actually using millimeter wave today. We have deployments that we early on started off in Manhattan, for example, in Los Angeles in some areas where we really have that extraordinary capacity need we can use the tool of millimeter wave. Our general strategy is not based on millimeter wave. It’s based on a macro strategy, which is our layered approach, we’re our low band in our mid-band and now also being our PCS spectrum for 5G. But millimeter wave could also be potentially an interesting play for us when it comes to enhancing capacities that could be used, for example, for HSI. And we are working with our vendors, and we are working through our OEMs to figure out if we can make a viable economic and technical performance case out of that with them.

Mike Sievert: And that kind of bridges to your second question. Maybe this is a good time to remind everybody how our capacity model works for fixed wireless access. Essentially, right now, we serve about the potential of about 50 million homes, but they’re not in certain geographies. They’re geographically dispersed all over the U.S. because the way our model works is we’re selling excess capacity sector by sector. And so what we do is study every sector from every tower in our network and determine what amount of normative smartphone usage will there be over the next several years. And in areas where there’s still excess capacity, we today approve applicants for home Internet use. And right now, there’s about 50 million home addresses, where if you were to go into our tool and apply to be our customer, we’d say, yes, out of the 145 million in the country.

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