T-Mobile US, Inc. (NASDAQ:TMUS) Q3 2023 Earnings Call Transcript

So we’re able to take these solutions and pair that with a hybrid 5G network solutions, sometimes in parts of the campus private, some parts utilizing the incredible public network that we have. So these are very real deployments today that have significant pull-through on other types of connectivity that we offer and really meet the challenges that CIOs are looking for, not to cut off a couple of dollars on a phone connection, but to really look at their entire solution for data and connectivity, and that’s where we’re playing because of the 5G standalone core that we have.

Mike Sievert: I mean, it’s well timed because CIOs are interested in secure connections more than ever before, and they’re interested in saving money, not necessarily on a per smartphone subscription, but broadly in their system of connectivity and our solutions do that. And so it’s great to see and obviously an all-time record quarter for enterprise for us. And then you asked about the overall postpaid phone growth rate. And yes, it’s turned out to be more resilient than a lot of people predicted. We didn’t predict. We told you when you asked us last year that we weren’t going to predict the whole category. But overall, postpaid phone growth continues to roll on, although at slightly more modest rates. And there’s lots of things driving that.

You see enterprises carrying two lines, sometimes on the same phone, sometimes on separate phones. You see postpaid growing at the expense of prepaid. That trend continues, although T-Mobile continues to grow our prepaid base across all types of connections. So we continue to lead in that space. All the donations are coming from someplace else. And then what I called in the past kind of low-calorie net adds that you see principally at some of our competitors, including newer competitors. And thank you for giving me the opportunity to go ahead and pre-announce cable’s results for them as I usually do. No, I’m kidding. We do have telemetry that tries to show us all quarter long what’s happening with our competitors and I think it’s a remarkably consistent trend.

So you see intense competition out there, probably not a lot of big surprises. And you saw us perform yet again with a market-leading, very high-quality, mostly prime 850,000 postpaid phone net additions in a quarter where we experienced an all-time record Q3 churn. So just really proud of how we’re competing in an ongoing competitive dynamic.

Jud Henry: All right. That’s a good place to wrap up. All right. Thanks, everybody, for joining us. Really appreciate all your support. And if you have any further questions, please feel free to reach out to both the Investor Relations or the media relations department. Again, thanks again for joining us today.

Operator: This concludes the T-Mobile Third Quarter Earnings Call. Thank you for your participation. You may now disconnect, and have a pleasant day.