Mobile Pricing and ARPU Outlook
Q: What is the outlook for mobile pricing and ARPU in 2024?
A: T-Mobile expects 2% growth in ARPA for 2024, driven by customers moving up the rate card and optimizing rate plans and policies. " They remain committed to their value leadership but see opportunities to monetize the unprecedented value delivered to customers. " Service revenue growth in 2024 is anticipated to exceed the 3.1% achieved in 2023. "

Fixed Wireless Growth and Pricing
Q: How is Fixed Wireless performing, and what's the outlook?
A: With nearly 5 million customers after two years, Fixed Wireless has strong demand, making T-Mobile one of the largest ISPs in America. " They've moved away from promotional pricing to standard pricing, confident in the product's value. " They're on track to reach 7–8 million subscribers but see potential to surpass that target. " "

Capital Allocation and Share Buybacks
Q: What's influencing the pace of share buybacks and capital allocation?
A: T-Mobile is committed to delivering up to $16 billion in share buybacks and dividends in 2024. " The pace slowed slightly due to the SoftBank share issuance but is expected to continue. " They are not pursuing large acquisitions that would impact the buyback plan and have room for investment within their capital return program. "

Margin Expansion and EBITDA Growth
Q: Are you still targeting a core EBITDA margin at or above 50%?
A: While aiming for margin expansion, T-Mobile focuses on leading and growing free cash flow margin relative to service revenue. " The 2024 guidance midpoint reflects a 9% year-over-year growth, which is three times the expectation of peers. "

Competition and Churn Trends
Q: What's driving churn increase, and how is competition affecting you?
A: Churn increased by 9 basis points sequentially, aligning with seasonal trends. " T-Mobile is confident in reducing churn due to offering the best value and network. " Competition remains consistent, and T-Mobile continues to win customers with unmatched value. "

Enterprise Business Performance
Q: How is your enterprise business progressing beyond connectivity?
A: T-Mobile achieved its highest quarter and year in business postpaid phone net additions and gross adds. " They've transformed their sales approach, partnering with CIOs and upgrading their product portfolio. " New clients include Salesforce and REI, with deepened relationships with Delta, DoorDash, Meta, and UPS. "

Impact of ACP Program Changes
Q: How does the potential end of ACP benefits affect your guidance?
A: T-Mobile's exposure to ACP is minimal, with substantially none in their reported base. " Any potential impacts are fully embedded in their EBITDA guidance. " "

Wholesale Revenue Outlook
Q: What is the expected impact of wholesale revenue declines?
A: A continued year-over-year decline in wholesale revenue is expected due to factors like TracFone and other carriers transitioning off the network. " This decline is factored into their guidance. "

Upgrade Rates and Free Cash Flow
Q: Will low upgrade rates affect free cash flow guidance?
A: Upgrade rates are expected to remain low as customers keep phones longer due to high costs and capable devices. " This trend is incorporated into T-Mobile's free cash flow guidance. "

SpaceX Partnership Progress
Q: What are the expectations for the SpaceX direct-to-device service?
A: Beta testing is expected this year, offering connectivity in unserved areas starting with text messaging and eventually voice and data. " This service appeals to anyone in areas not covered by networks. "

Network Capacity and 5G Advancements
Q: Can you update on the 15x capacity goal and 5G impact?
A: Network capacity is growing, staying ahead by transitioning from LTE to 5G. " Their 5G coverage is over twice that of competitors. " Network slicing was successfully demonstrated at Formula 1, enhancing high-demand event services. "

EPS Guidance Outlook
Q: Will you provide EPS guidance in the future?
A: As merger-related costs diminish, T-Mobile plans to focus more on EPS. " Significant costs in 2023 and some remaining in 2024 make immediate EPS guidance premature. "

Approach to Fixed Wireless Subscriber Target
Q: How will you manage Fixed Wireless growth nearing your target?
A: T-Mobile will continue to meet demand appropriately, focusing on mainstream customers and fair pricing. " They acknowledge it's early to tell if they'll exceed the 7–8 million subscriber goal but are open to extending beyond it. "

Cost Efficiencies and Leverage
Q: What initiatives aim to improve leverage and efficiency?
A: Beyond reaching merger synergy targets, T-Mobile is exploring efficiencies through network modernization and leveraging technologies like AI. " They see ongoing opportunities to drive efficiencies while prioritizing customers. "

Progress in Rural Markets
Q: How are you performing in smaller markets and rural areas?
A: T-Mobile has achieved a 17.5% share of households in rural areas, up from 16.5% nine months ago. " They're on track to meet the 20% goal by 2025 and are optimistic about exceeding it. "