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MetroPCS Reports Second Quarter 2012 Results

  MetroPCS Reports Second Quarter 2012 Results

             Highest Quarterly Adjusted EBITDA in Company History

Second Quarter 2012 Highlights Include:

  *Quarterly consolidated total revenues of approximately $1.3 billion, an
    increase of 6% over the second quarter of 2011
  *Quarterly service revenue of approximately $1.2 billion, an increase of 4%
    over the second quarter of 2011
  *Record Adjusted EBITDA of $477 million, an increase of 33% over the second
    quarter of 2011
  *Record Adjusted EBITDA margin of 41.1%, an increase of 900 bps over the
    second quarter of 2011
  *Quarterly net income of $149 million, an increase of 77% over the second
    quarter of 2011
  *Quarterly churn of 3.4%, down 50 bps from the second quarter of 2011
  *Quarterly net subscriber loss of 186 thousand, resulting in a 2% increase
    in total subscribers over the prior twelve month period
  *Quarterly ARPU of $40.62, an increase of $0.13 over second quarter 2011
  *Surpassed 700 thousand 4G LTE subscribers, representing approximately 8%
    of total subscribers

Business Wire

DALLAS -- July 26, 2012

MetroPCS Communications, Inc. (NYSE: PCS), the nation’s leading provider of no
annual contract, unlimited, flat-rate wireless communications service, today
announced financial and operational results for the quarter ended June 30,
2012. MetroPCS reported quarterly Adjusted EBITDA of $477 million for the
second quarter 2012 and ended the quarter with 9.3 million subscribers.

Roger D. Linquist, Chairman and Chief Executive Officer of MetroPCS, said,
“During the second quarter, we focused on generating Adjusted EBITDA and cash
flow versus subscriber growth as we position for our anticipated launch of 4G
LTE For All by the end of the third quarter. I’m pleased to report that with
this emphasis, we reported both the highest Adjusted EBITDA as well as the
highest Adjusted EBITDA margin in Company history as a result of this focus.
Second quarter churn of 3.4% was primarily driven by continued investments in
our network as well as lower year-to-date subscriber growth.

“Looking towards the remainder of 2012, we believe demand for high-speed
wireless broadband service will increase and we will be well positioned to
meet that demand with our 4G LTE network, which now serves approximately 8% of
our subscriber base. With our plan to manage our current spectrum holdings, we
believe our subscribers’ current and future anticipated data demands will be
met. Importantly, we should have a full 10MHz dedicated to 4G LTE in most
major metropolitan areas by the end of the year. Our 4G LTE handset ecosystem
is building and we remain on track to launch 4G LTE For All by the end of the
third quarter. During the fourth quarter, we expect our 4G LTE For All
initiative to lead to a return to subscriber growth. As we focus on the launch
of 4G LTE For All late in the third quarter, we expect incremental pressure on
our CPGA and CPU. We believe we are the best deal in town when it comes to
voice and text. In an increasingly data-centric world, our 4G LTE For All
initiative we believe provides unmatched value, with all taxes and regulatory
fees included,” Linquist concluded.

Key Consolidated Financial and Operating Metrics

(in millions, except percentages, per share, per subscriber and subscriber amounts)
                                                                                            
                Three Months Ended                                   Six Months Ended
                June 30,                                             June 30,
                2012            2011            Change           2012            2011            Change
Service         $ 1,159           $ 1,113             4     %        $ 2,318           $ 2,164             7     %
revenues
Total           $ 1,281           $ 1,209             6     %        $ 2,558           $ 2,404             6     %
revenues
Income from     $ 312             $ 210               48    %        $ 410             $ 356               15    %
operations
Net income      $ 149             $ 84                77    %        $ 170             $ 141               21    %
Diluted EPS     $ 0.41            $ 0.23            $ 0.18           $ 0.46            $ 0.38            $ 0.08
Adjusted        $ 477             $ 357               33    %        $ 739             $ 643               15    %
EBITDA^(1)
Adjusted
EBITDA as a
percentage of     41.1      %       32.1      %     900 bps            31.9      %       29.7      %     220 bps
service
revenues
                                                                                                         
ARPU^(1)        $ 40.62           $ 40.49           $ 0.13           $ 40.59           $ 40.46           $ 0.13
CPGA^(1)        $ 190.53          $ 177.88          $ 12.65          $ 215.76          $ 166.60          $ 49.16
CPU^(1)         $ 18.40           $ 18.94           $ (0.54 )        $ 20.63           $ 19.35           $ 1.28
Churn-Average     3.4       %       3.9       %     (50 bps)           3.3       %       3.6       %     (30 bps)
Monthly Rate
                                                                                                         
Consolidated
Subscribers
End of Period     9,292,251         9,079,865         2     %          9,292,251         9,079,865         2     %
Net Additions     (186,062  )       198,810           (194  %)         (54,408   )       924,755           (106  %)
Penetration
of Covered        9.1       %       9.1       %     0 bps              9.1       %       9.1       %     0 bps
POPs^(2)
                                                                                                         

(1) For a reconciliation of non-GAAP financial measures, please refer to the
section entitled “Definition of Terms and Reconciliation of non-GAAP Financial
Measures” included at the end of this release.

(2) Number of covered POPs covered by MetroPCS Communications, Inc. network
increased 1.9 million from 6/30/11 to 6/30/12 to 102 million.

Quarterly Consolidated Results

  *Consolidated service revenues of approximately $1.2 billion for the second
    quarter of 2012, an increase of $46 million, or 4%, when compared to the
    prior year’s second quarter.
  *Income from operations increased $102 million, or 48%, for the second
    quarter of 2012 when compared to the prior year’s second quarter.
  *Net income increased $65 million, or 77%, for the second quarter of 2012
    when compared to the prior year’s second quarter.
  *Adjusted EBITDA of $477 million increased by $120 million for the second
    quarter of 2012, or 33%, when compared to the prior year’s second quarter.
  *Average revenue per user (ARPU) of $40.62 for the second quarter of 2012
    represents an increase of $0.13 when compared to the second quarter of
    2011. The increase in ARPU was primarily attributable to continued demand
    for our Wireless for All and 4G LTE service plans offset by promotional
    service plans and an increase in family plan penetration from 38% of our
    customer base as of June 30, 2011 to 42% of our customer base as of June
    30, 2012.
  *The Company’s cost per gross addition (CPGA) of $191 for the second
    quarter of 2012 represents an increase of $13 when compared to the prior
    year’s second quarter. The increase is primarily driven by lower gross
    additions partially offset by decreased promotional activities as compared
    to the three months ended June 30, 2011.
  *Cost per user (CPU) decreased to $18.40 in the second quarter of 2012, or
    a 3% decrease over the second quarter of 2011. The decrease in CPU is
    primarily driven by a decrease in retention expense for existing customers
    as well as a decrease in long distance cost and taxes and regulatory fees.
    These items were partially offset by an increase in costs associated with
    our 4G LTE network upgrade and roaming expenses associated with Metro USA.
    During the quarter we experienced $3.06 in CPU directly related to handset
    upgrades compared to $3.73 in the prior year’s second quarter.
  *Churn decreased 50 basis points from 3.9% to 3.4% when compared to the
    second quarter of 2011. The decrease in churn was primarily driven by
    continued investments in our network and lower year-to-date subscriber
    growth.

Financial Guidance for 2012

For the year ending December 31, 2012, MetroPCS today reaffirms its prior
guidance, originally provided on February 23, 2012. MetroPCS currently expects
to incur capital expenditures in the range of $900 million to $1.0 billion on
a consolidated basis for the year ending December 31, 2012.

MetroPCS Conference Call Information

MetroPCS Communications, Inc. will host a conference call to discuss its
Second Quarter 2012 Earnings Results at 9:00 a.m. Eastern Time (ET) on
Thursday, July 26, 2012.

Date:                   Thursday, July 26, 2012
Time:                     9:00 a.m. ET
Call-in Numbers:          Toll free: 800-432-9830
International:            719-234-7318
Participant Passcode:     3440910
                          

Please plan on accessing the conference call ten minutes prior to the
scheduled start time.

The conference call will be broadcast live via the Company’s Investor
Relations website at investor.metropcs.com. A replay of the webcast will be
available on the website beginning at approximately 12:30 p.m. ET on July 26,
2012.

A replay of the conference call will be available for one week starting
shortly after the call concludes and can be accessed by dialing 888-203-1112
(toll free) or 719-457-0820 (international). The passcode required to listen
to the replay is 3440910.

To automatically receive MetroPCS financial news by e-mail, please visit the
Investor Relations portion of the MetroPCS website, investor.metropcs.com, and
subscribe to E-mail Alerts.

All registered marks, including but not limited to, Wireless for All, are
registered service marks of MetroPCS Wireless, Inc. All rights reserved. All
other company and product names mentioned may be trademarks or registered
marks of the respective companies with which they are associated.

About MetroPCS Communications, Inc.

Dallas-based MetroPCS Communications, Inc. (NYSE: PCS) is a provider of no
annual contract, unlimited wireless communications service for a flat-rate.
MetroPCS is the fifth largest facilities-based wireless carrier in the United
States based on number of subscribers served. With Metro USA(SM), MetroPCS
customers can use their service in areas throughout the United States covering
a population of over 280 million people. As of June 30, 2012, MetroPCS had
approximately 9.3 million subscribers. For more information please visit
www.metropcs.com.

Forward-Looking Statements

This release includes “forward-looking statements” for the purpose of the
“safe harbor” provisions within the meaning of the Private Securities
Litigation Reform Act of 1995, as amended, and rule 3(b)-6 under the
Securities Exchange Act of 1934, as amended. Any statements made in this
release that are not statements of historical fact, including statements about
our plans, beliefs, opinions, projections, and expectations, are
forward-looking statements and should be evaluated as such. Forward-looking
statements include information concerning the reasons for our operational and
financial results, the demand for wireless broadband services, our ability to
meet customer demands, the projected launch date of our 4G LTE for All plan,
our network capabilities, our ability to increase subscribers, expectations
regarding future CPGA, our planned additions to and time of availability of
handsets and the prices for such handsets, our ability to drive profitable
growth, our guidance on capital expenditures for 2012 and statements that may
relate to our plans, objectives, strategies, goals, future events, future
revenues or performance, capital expenditures, financing needs, and other
information that is not historical information. These forward-looking
statements often include words such as “anticipate,” “expect,” “suggests,”
“plan,” “believe,” “intend,” “estimates,” “targets,” “views,” “becomes,”
“projects,” “should,” “would,” “could,” “may,” “will,” “forecast,” and other
similar expressions.

These forward-looking statements are based on reasonable assumptions at the
time they are made, including our current expectations, plans, beliefs,
opinions and assumptions in light of our experience in the industry, as well
as our perceptions of historical trends, current conditions, expected future
developments and other factors we believe are appropriate under the
circumstances and at such times. Forward-looking statements are not guarantees
of future performance or results. Actual financial results, performance or
results of operations may differ materially from those expressed in the
forward-looking statements. Factors that may materially affect such
forward-looking statements include, but are not limited to:

  *the ability of our vendors to supply the handsets we need in the time
    frames we require;
  *our and our competitor’s current and planned promotions, marketing, sales
    and other initiatives and our ability to respond to and support them;
  *our ability to manage our networks to deliver the services, content,
    service quality and speed our customers expect and demand and to maintain
    and increase the capacity of our networks and business systems to satisfy
    the demands of our customers and the demands placed by devices on our
    networks;
  *the highly competitive nature of our industry and changes in the
    competitive landscape;
  *the current economic environment in the United States; disruptions to the
    credit and financial markets in the United States; and contractions or
    limited growth on consumer spending as a result of the uncertainty in the
    United States economy;
  *our ability to manage our growth, achieve planned growth, manage churn
    rates, maintain our cost structure, and achieve additional economies of
    scale;
  *our ability to negotiate and maintain acceptable agreements with our
    suppliers and vendors, including roaming arrangements;
  *the seasonality of our business and any failure to have strong customer
    growth in the first and fourth quarters;
  *increases or changes in taxes and regulatory fees or the services to, or
    the manner in, which such taxes and fees are applied, calculated or
    collected;
  *the rapid technological changes in our industry, our ability to adapt,
    respond and deploy new technologies, and successfully offer new services
    using such new technology;
  *our ability to fulfill the demands and expectations of our customers,
    provide the customer care our customers demand, secure the products,
    services, applications, content and network infrastructure equipment we
    need, or which our customers or potential customers want, expect or
    demand;
  *the availability of additional spectrum, our ability to secure additional
    spectrum, or secure it at acceptable prices, when we need it;
  *our ability to adequately defend against suits filed by others and to
    enforce or protect our intellectual property rights;
  *our capital structure, including our indebtedness amount, the limitations
    imposed by the covenants in our indebtedness and the maintenance of our
    financial and disclosure controls and procedures;
  *our ability to attract and retain key members of management and train
    personnel;
  *our reliance on third parties to provide distribution, products, software
    content and services that are integral, used or sold by to our business
    and the ability of our suppliers to perform, develop and timely provide us
    with technological developments, products and services we need to remain
    competitive;
  *possible disruptions or intrusions of our network, billing, operational
    support and customer care systems which may limit or disrupt our ability
    to provide service or which may cause disclosure or improper use of our
    customers’ information and the associated harm to our customers, our
    systems, our reputation and our goodwill;
  *the rates, nature, collectability and applicability of taxes and
    regulatory fees on the services we provide;
  *governmental regulation affecting our services and changes in government
    regulation, and the costs of compliance and our failure to comply with
    such regulations; and
  *other factors described or referenced in our annual report on Form 10-K
    for the year ended December 31, 2011 filed on February 29, 2012 and from
    time to time in our quarterly report on Form 10-Q, for the quarter ended
    June 30, 2012, to be filed on or before August 9, 2012, as well as
    subsequent quarterly reports on Form 10-Q, or current reports on Form 8-K,
    all of which are on file with the SEC and may be obtained free of charge
    through the SEC’s website http://www.sec.gov, from the Company’s website
    at www.metropcs.com under the investor relations tab, or from the Company
    by contacting the Investor Relations department.

The forward-looking statements speak only as of the date made, are based on
current assumptions and expectations, and are subject to the factors above,
among other things, and involve risks, uncertainties, events, circumstances
and assumptions, many of which are beyond our ability to foresee, control or
predict. You should not place undue reliance on these forward-looking
statements. All future written and oral forward looking statements
attributable to us or persons acting on our behalf are expressly qualified in
their entirety by our cautionary statements. MetroPCS Communications, Inc.
does not intend to, is not obligated to, and does not undertake a duty to,
update any forward-looking statement to reflect the occurrence of events or
circumstances after the date of this release, except as required by law. The
results for the second quarter of 2012 may not be reflective of results for
any subsequent period or the full year 2012. MetroPCS does not plan to update
nor reaffirm guidance except through formal public disclosure pursuant to
Regulation FD.

                                                             
MetroPCS Communications, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands, except share and per share information)
(Unaudited)
                                                                 
                                               June 30,          December 31,
                                               2012              2011
CURRENT ASSETS:
Cash and cash equivalents                      $ 1,901,168       $ 1,943,282
Short-term investments                           447,386           299,972
Inventories                                      259,011           239,648
Accounts receivable (net of allowance for
uncollectible accounts of $639 and $601 at       87,860            78,023
June 30, 2012 and December 31, 2011,
respectively)
Prepaid expenses                                 88,087            55,712
Deferred charges                                 82,365            74,970
Deferred tax assets                              7,214             7,214
Other current assets                            22,709          44,772    
Total current assets                             2,895,800         2,743,593
Property and equipment, net                      4,069,340         4,017,999
Restricted cash and investments                  2,076             2,576
Long-term investments                            6,319             6,319
FCC licenses                                     2,561,904         2,539,041
Other assets                                    194,193         173,403   
Total assets                                   $ 9,729,632      $ 9,482,931 
CURRENT LIABILITIES:
Accounts payable and accrued expenses          $ 431,919         $ 512,346
Current maturities of long-term debt             35,306            33,460
Deferred revenue                                 244,390           245,705
Other current liabilities                       30,263          25,212    
Total current liabilities                        741,878           816,723
Long-term debt, net                              4,726,434         4,711,021
Deferred tax liabilities                         924,613           817,106
Deferred rents                                   129,289           120,028
Other long-term liabilities                     91,128          90,453    
Total liabilities                                6,613,342         6,555,331
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Preferred stock, par value $0.0001 per
share, 100,000,000 shares authorized; no
shares of preferred stock issued and             —                 —
outstanding at June 30, 2012 and December
31, 2011
Common stock, par value $0.0001 per share,
1,000,000,000 shares authorized, 363,402,032
and 362,460,395 shares issued and                36                36
outstanding at June 30, 2012 and December
31, 2011, respectively
Additional paid-in capital                       1,804,923         1,784,273
Retained earnings                                1,329,257         1,159,418
Accumulated other comprehensive loss             (8,586    )       (9,295    )
Less treasury stock, at cost, 873,008 and
602,881 treasury shares at June 30, 2012 and    (9,340    )      (6,832    )
December 31, 2011, respectively
Total stockholders’ equity                      3,116,290       2,927,600 
Total liabilities and stockholders’ equity     $ 9,729,632      $ 9,482,931 
                                                                             

                                                          
MetroPCS Communications, Inc. and Subsidiaries
Condensed Consolidated Statements of Income and Comprehensive Income
(in thousands, except share and per share information)
(Unaudited)
                                                               
                     For the Three Months Ended                For the Six Months Ended
                     June 30,                                  June 30,
                     2012              2011                  2012              2011
REVENUES:
Service revenues     $ 1,158,942         $ 1,113,292           $ 2,317,721         $ 2,163,509
Equipment revenues    122,238           96,161              240,049           240,320     
Total revenues         1,281,180           1,209,453             2,557,770           2,403,829
OPERATING
EXPENSES:
Cost of service
(excluding
depreciation and
amortization
expense of             368,418             366,030               757,345             707,447
$133,736,
$115,455, $265,959
and $227,282 shown
separately below)
Cost of equipment      277,922             342,534               736,786             751,796
Selling, general
and administrative
expenses
(excluding
depreciation and
amortization           167,494             154,556               344,088             324,327
expense of
$19,615, $19,070,
$40,210 and
$35,937 shown
separately below)
Depreciation and       153,351             134,525               306,169             263,219
amortization
Loss on disposal      2,047             1,553               3,166             1,448       
of assets
Total operating       969,232           999,198             2,147,554         2,048,237   
expenses
Income from            311,948             210,255               410,216             355,592
operations
OTHER EXPENSE
(INCOME):
Interest expense       69,486              66,980                139,569             123,541
Interest income        (374        )       (511        )         (748        )       (1,026      )
Other (income)         (210        )       (186        )         (313        )       (442        )
expense, net
Loss on
extinguishment of     —                 9,536               —                 9,536       
debt
Total other            68,902              75,819                138,508             131,609
expense
Income before
provision for          243,046             134,436               271,708             223,983
income taxes
Provision for         (94,211     )      (50,101     )        (101,869    )      (83,269     )
income taxes
Net income           $ 148,835          $ 84,335             $ 169,839          $ 140,714     
Other
comprehensive
income (loss):
Unrealized gains
on
available-for-sale
securities, net of     64                  66                    81                  165
tax of $42, $40,
$51 and $102,
respectively
Unrealized losses
on cash flow
hedging
derivatives, net       (1,032      )       (13,374     )         (4,165      )       (12,774     )
of tax benefit of
$1,034, $8,299,
$2,606 and $7,923,
respectively
Reclassification
adjustment for
gains on
available-for-sale
securities             (15         )       (93         )         (39         )       (197        )
included in net
income, net of tax
of $12, $57, $25
and $122,
respectively
Reclassification
adjustment for
losses on cash
flow hedging
derivatives
included in net       1,945             3,762               4,832             6,639       
income, net of tax
benefit of $1,575,
$2,319, $3,023 and
$4,118,
respectively
Total other
comprehensive         962               (9,639      )        709               (6,167      )
income (loss)
Comprehensive        $ 149,797          $ 74,696             $ 170,548          $ 134,547     
income
Net income per
common share:
Basic                $ 0.41             $ 0.23               $ 0.46             $ 0.39        
Diluted              $ 0.41             $ 0.23               $ 0.46             $ 0.38        
Weighted average
shares:
Basic                 363,263,805       360,226,487         362,991,209       358,616,324 
Diluted               363,514,983       365,390,280         364,148,811       363,153,234 
                                                                                                 

                                             
MetroPCS Communications, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
                                               
                                               For the Six Months Ended
                                               June 30,
                                               2012            2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income                                     $ 169,839         $ 140,714
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization                    306,169           263,219
Provision for uncollectible accounts             3,238             261
receivable
Deferred rent expense                            9,374             7,832
Cost of abandoned cell sites                     941               380
Stock-based compensation expense                 19,499            22,244
Non-cash interest expense                        3,663             4,015
Loss on disposal of assets                       3,166             1,448
Loss on extinguishment of debt                   —                 9,536
Gain on sale of investments                      (64       )       (319      )
Accretion of asset retirement obligations        3,219             2,762
Deferred income taxes                            107,237           81,395
Changes in assets and liabilities:
Inventories                                      (19,363   )       21,001
Accounts receivable, net                         (9,832    )       (4,710    )
Prepaid expenses                                 (32,292   )       (14,512   )
Deferred charges                                 (7,395    )       (5,157    )
Other assets                                     20,325            20,081
Accounts payable and accrued expenses            (122,685  )       (85,346   )
Deferred revenue                                 (1,315    )       10,990
Other liabilities                               2,846           6,266     
Net cash provided by operating activities        456,570           482,100
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment              (326,215  )       (451,573  )
Change in prepaid purchases of property and      (15,386   )       (17,691   )
equipment
Proceeds from sale of property and equipment     888               603
Purchase of investments                          (447,285  )       (299,826  )
Proceeds from maturity of investments            300,000           375,000
Change in restricted cash and investments        500               —
Acquisitions of FCC licenses and microwave       (22,831   )       (3,283    )
clearing costs
Cash used in asset acquisitions                 —               (7,495    )
Net cash used in investing activities            (510,329  )       (404,265  )
CASH FLOWS FROM FINANCING ACTIVITIES:
Change in book overdraft                         29,261            1,263
Proceeds from debt issuance, net of discount     —                 1,497,500
Debt issuance costs                              —                 (15,351   )
Repayment of debt                                (12,695   )       (11,598   )
Retirement of senior secured credit facility     —                 (535,792  )
debt
Payments on capital lease obligations            (4,211    )       (4,474    )
Purchase of treasury stock                       (2,508    )       (3,591    )
Proceeds from exercise of stock options         1,798           53,671    
Net cash provided by financing activities       11,645          981,628   
(DECREASE) INCREASE CASH AND CASH                (42,114   )       1,059,463
EQUIVALENTS
CASH AND CASH EQUIVALENTS, beginning of         1,943,282       796,531   
period
CASH AND CASH EQUIVALENTS, end of period       $ 1,901,168      $ 1,855,994 
                                                                             

Definition of Terms and Reconciliation of Non-GAAP Financial Measures

The Company utilizes certain financial measures and key performance indicators
that are not calculated in accordance with GAAP to assess our financial and
operating performance. A non-GAAP financial measure is defined as a numerical
measure of a company's financial performance that (i) excludes amounts, or is
subject to adjustments that have the effect of excluding amounts, that are
included in the comparable measure calculated and presented in accordance with
GAAP in the statement of income or statement of cash flows, or (ii) includes
amounts, or is subject to adjustments that have the effect of including
amounts, that are excluded from the comparable measure so calculated and
presented.

Average revenue per user, or ARPU, cost per gross addition, or CPGA, cost per
user, or CPU, and Adjusted EBITDA are non-GAAP financial measures utilized by
the Company's management to judge the Company's ability to meet its liquidity
requirements and to evaluate its operating performance. Management believes
that these measures are important in understanding the performance of the
Company's operations from period to period, and although every company in the
wireless industry does not define each of these measures in precisely the same
way, management believes that these measures (which are common in the wireless
industry) facilitate key liquidity and operating performance comparisons with
other companies in the wireless industry. The following tables reconcile the
Company's non-GAAP financial measures with the Company's financial statements
presented in accordance with GAAP.

ARPU - The Company utilizes ARPU to evaluate its per-customer service revenue
realization and to assist in forecasting future service revenues. ARPU is
calculated exclusive of pass through charges that the Company collects from
its customers and remits to the appropriate government agencies.

Average number of customers for any measurement period is determined by
dividing (a)the sum of the average monthly number of customers for the
measurement period by (b)the number of months in such period. Average monthly
number of customers for any month represents the sum of the number of
customers on the first day of the month and the last day of the month divided
by two. The Company believes investors use ARPU primarily as a tool to track
changes in our average revenue per customer and to compare our per customer
service revenues to those of other wireless broadband mobile providers,
although other providers may calculate this measure differently. The following
table reconciles total revenues used in the calculation of ARPU to service
revenues, which we consider to be the most directly comparable GAAP financial
measure to ARPU.

             Three Months Ended June 30,        Six Months Ended June 30,
              2012            2011                2012            2011
              (in thousands, except average number of customers and ARPU)
Calculation
of Average
Revenue Per
User
(ARPU):
Service       $ 1,158,942       $ 1,113,292         $ 2,317,721       $ 2,163,509
revenues
Less: Pass
through        (15,645   )      (20,735   )        (32,150   )      (42,010   )
charges
Net service   $ 1,143,297      $ 1,092,557        $ 2,285,571      $ 2,121,499 
revenues
Divided by:
Average        9,381,638       8,994,405         9,385,051       8,739,720 
number of
customers
ARPU          $ 40.62          $ 40.49            $ 40.59          $ 40.46     
                                                                                  

CPGA - The Company utilizes CPGA to assess the efficiency of its distribution
strategy, validate the initial capital invested in its customers and determine
the number of months to recover its customer acquisition costs. This measure
also allows management to compare the Company's average acquisition costs per
new customer to those of other wireless broadband mobile providers, although
other providers may calculate this measure differently. Equipment revenues
related to new customers are deducted from selling expenses in this
calculation as they represent amounts paid by customers at the time their
service is activated that reduce the Company's acquisition cost of those
customers. Additionally, equipment costs associated with existing customers,
net of related revenues, are excluded as this measure is intended to reflect
only the acquisition costs related to new customers. The Company believes
investors use CPGA primarily as a tool to track changes in our average cost of
acquiring new customers and to compare our per customer acquisition costs to
those of other wireless broadband mobile providers, although other providers
may calculate this measure differently. The following table reconciles total
costs used in the calculation of CPGA to selling expenses, which the Company
considers to be the most directly comparable GAAP financial measure to CPGA.

             Three Months Ended June 30,       Six Months Ended June 30,
              2012           2011                2012            2011
              (in thousands, except gross customer additions and CPGA)
Calculation
of Cost Per
Gross
Addition
(CPGA):
Selling       $ 79,170         $ 78,522            $ 174,711         $ 170,384
expenses
Less:
Equipment       (122,238 )       (96,161   )         (240,049  )       (240,320  )
revenues
Add:
Equipment
revenue not     84,581           59,355              178,649           134,589
associated
with new
customers
Add: Cost
of              277,922          342,534             736,786           751,796
equipment
Less:
Equipment
costs not      (170,565 )      (159,931  )        (465,394  )      (352,133  )
associated
with new
customers
Gross
addition      $ 148,870       $ 224,319          $ 384,703        $ 464,316   
expenses
Divided by:
Gross          781,349        1,261,091         1,782,985       2,786,971 
customer
additions
CPGA          $ 190.53        $ 177.88           $ 215.76         $ 166.60    
                                                                                 

CPU - The Company utilizes CPU as a tool to evaluate the non-selling cash
expenses associated with ongoing business operations on a per customer basis,
to track changes in these non-selling cash costs over time, and to help
evaluate how changes in the Company's business operations affect non-selling
cash costs per customer. In addition, CPU provides management with a useful
measure to compare our non-selling cash costs per customer with those of other
wireless broadband mobile providers. The Company believes investors use CPU
primarily as a tool to track changes in the Company's non-selling cash costs
over time and to compare the Company's non-selling cash costs to those of
other wireless broadband mobile providers, although other providers may
calculate this measure differently. The following table reconciles total costs
used in the calculation of CPU to cost of service, which we consider to be the
most directly comparable GAAP financial measure to CPU.

                Three Months Ended June 30,        Six Months Ended June 30,
                 2012            2011                2012            2011
                 (in thousands, except average number of customers and CPU)
Calculation of
Cost Per User
(CPU):
Cost of          $ 368,418         $ 366,030           $ 757,345         $ 707,447
service
Add: General
and                88,324            76,034              169,377           153,943
administrative
expense
Add: Net loss
on equipment
transactions
unrelated to       85,984            100,576             286,745           217,544
initial
customer
acquisition
Less:
Stock-based
compensation
expense
included in        (9,343    )       (10,960   )         (19,499   )       (22,244   )
cost of
service and
general and
administrative
expense
Less: Pass
through           (15,645   )      (20,735   )        (32,150   )      (42,010   )
charges
Total costs
used in the      $ 517,738        $ 510,945          $ 1,161,818      $ 1,014,680 
calculation of
CPU
Divided by:
Average number    9,381,638       8,994,405         9,385,051       8,739,720 
of customers
CPU              $ 18.40          $ 18.94            $ 20.63          $ 19.35     
                                                                                     

Adjusted EBITDA - The Company utilizes Adjusted EBITDA to monitor the
financial performance of its operations. This measurement, together with GAAP
measures such as revenue and income from operations, assists management in its
decision-making process related to the operations of the company's business.
Adjusted EBITDA has limitations as an analytical tool and should not be
considered in isolation or as a substitute for income from operations, net
income, or any other measure of financial performance reported in accordance
with GAAP. In addition, other providers may calculate this measure
differently.

The Company believes that analysts and investors use Adjusted EBITDA as a
supplemental measure to evaluate its overall operating performance and that
this metric facilitates the comparisons with other wireless communications
companies. The Company uses Adjusted EBITDA internally as a metric to evaluate
and compensate its personnel and management for their performance, and as a
benchmark to evaluate its operating performance in comparison to its
competitors. Management also uses Adjusted EBITDA to measure, from
period-to-period, the company's ability to provide cash flows to meet future
debt services, capital expenditures and working capital requirements and fund
future growth.

The following tables illustrate the calculation of Adjusted EBITDA and
reconcile Adjusted EBITDA to net income and cash flows from operating
activities, which we consider to be the most directly comparable GAAP
financial measures to Adjusted EBITDA.

                Three Months Ended June 30,    Six Months Ended June 30,
                 2012          2011              2012          2011
                 (in thousands)
Calculation of
Adjusted
EBITDA:
Net income       $ 148,835       $ 84,335          $ 169,839       $ 140,714
Adjustments:
Depreciation
and                153,351         134,525           306,169         263,219
amortization
Loss on
disposal of        2,047           1,553             3,166           1,448
assets
Stock-based
compensation       9,343           10,960            19,499          22,244
expense
Interest           69,486          66,980            139,569         123,541
expense
Interest           (374    )       (511    )         (748    )       (1,026  )
income
Other (income)     (210    )       (186    )         (313    )       (442    )
expense, net
Loss on
extinguishment     —               9,536             —               9,536
of debt
Provision for     94,211        50,101          101,869       83,269  
income taxes
Adjusted         $ 476,689      $ 357,293        $ 739,050      $ 642,503 
EBITDA
                                                                             

                                              
                 Three Months Ended June 30,       Six Months Ended June 30,
                 2012          2011              2012           2011
                 (in thousands)
Reconciliation
of Net Cash
Provided by
Operating
Activities to
Adjusted
EBITDA:
Net cash
provided by      $ 319,665       $ 343,786         $ 456,570        $ 482,100
operating
activities
Adjustments:
Interest           69,486          66,980            139,569          123,541
expense
Non-cash
interest           (1,833  )       (2,022  )         (3,663   )       (4,015  )
expense
Interest           (374    )       (511    )         (748     )       (1,026  )
income
Other (income)     (210    )       (186    )         (313     )       (442    )
expense, net
Provision for
uncollectible      (3,345  )       (95     )         (3,238   )       (261    )
accounts
receivable
Deferred rent      (4,582  )       (3,738  )         (9,374   )       (7,832  )
expense
Cost of
abandoned cell     (518    )       (323    )         (941     )       (380    )
sites
Gain on sale
and maturity       27              151               64               319
of investments
Accretion of
asset              (1,630  )       (1,449  )         (3,219   )       (2,762  )
retirement
obligations
Provision for      94,211          50,101            101,869          83,269
income taxes
Deferred           (92,880 )       (49,138 )         (107,237 )       (81,395 )
income taxes
Changes in
working           98,672        (46,263 )        169,711        51,387  
capital
Adjusted         $ 476,689      $ 357,293        $ 739,050       $ 642,503 
EBITDA

Contact:

MetroPCS Communications, Inc.
Keith Terreri, 214-570-4641
Vice President - Finance & Treasurer
or
Jim Mathias, 214-570-4641
Director – Investor Relations
investor_relations@metropcs.com
 
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