T-Mobile USA Reports First Quarter 2013 Results

  T-Mobile USA Reports First Quarter 2013 Results

    Branded Customer Growth and Strong Adjusted EBITDA Margin - Successful
                    Introduction of the Un-carrier Promise

First Quarter 2013 T-Mobile USA Highlights Include:

  *Successful Un-Carrier, iPhone and 4G LTE launches announced on March 26^th
    to further enable growth
  *Branded customer net additions of 3,000, first branded customer growth
    since first quarter 2009

       *Branded postpaid net losses of 199,000, a 61% year-over-year
         improvement
       *Branded prepaid net additions of 202,000, the seventh consecutive
         quarter of prepaid growth
       *Total customer net additions of 579,000

  *Branded postpaid churn 1.9%, the lowest since second quarter 2008
  *Adjusted EBITDA of $1.2 billion and strong adjusted EBITDA margin of 29%

Business Wire

BELLEVUE, Wash. -- May 8, 2013

T-Mobile US, Inc. (NYSE: TMUS), the combined company resulting from the
recently completed combination of MetroPCS Communications, Inc. (MetroPCS) and
T-Mobile USA, Inc. (T-Mobile USA or the Company) today reported first quarter
2013 results for T-Mobile USA, demonstrating significant, positive customer
momentum throughout the quarter and the first positive branded customer growth
in four years. T-Mobile USA reported 3,000 branded net customer additions for
the quarter, resulting from a 61% year-over-year improvement in branded
postpaid net customer losses due primarily to improved branded postpaid churn
performance, combined with branded prepaid customer growth.

On March 26, 2013, T-Mobile USA launched the Un-carrier value proposition by
introducing our radically simplified “Simple Choice” service plan and
providing customers with the lowest out-of-pocket costs on some of the most
popular devices available in the US wireless industry. On April 12, 2013,
T-Mobile USA began selling the iPhone at all Company-owned stores in
combination with the new Simple Choice service plan. To date the Company has
sold approximately 500,000 iPhone5's to new and existing customers. On April
30, we completed the combination of T-Mobile USA and MetroPCS, at which time
the combined company's name was changed to T-Mobile US, Inc. (T-Mobile), and
on May 1, 2013, T-Mobile's stock commenced trading under the new ticker symbol
“TMUS” on the New York Stock Exchange.

T-Mobile USA's capital expenditures for the first quarter of 2013 were $1.1
billion, in support of an accelerating network modernization program on pace
to achieve 200 million covered pops with 4G LTE by the end of 2013. As of the
end of the first quarter of 2013, the Company had launched 4G LTE in seven
major metropolitan areas and modernized approximately 16,000 sites with HSPA+
on 1900 MHz spectrum.

“Our first quarter operating metrics and financial results are showing
positive impact from the changes we began making in the fourth quarter.
Branded customer net additions turned positive for the first time since the
first quarter of 2009 and our postpaid business has demonstrated significant
improvement,” said John Legere, President & CEO of T-Mobile. “We ended the
quarter with strong operational momentum, which is continuing into the second
quarter, driven by the successful launch of our Un-carrier “Simple Choice”
service plan and the introduction of the iPhone into our device line-up.
Things only get more exciting from here, having brought T-Mobile USA and
MetroPCS together to create the wireless industry's value leader and premier
challenger.”

Financial and Operational Highlights

Adjusted EBITDA for T-Mobile USA increased by 12.4% to $1.2 billion when
compared to the fourth quarter of 2012; however, on a year-over-year basis
adjusted EBITDA decreased by 7.5% primarily due to service revenue declines.
First quarter 2013 adjusted EBITDA margins of 29% were unchanged from the
first quarter of 2012 as operating cost reductions kept pace with
year-over-year service revenue declines. Adjusted EBITDA margins improved
sequentially by 4 percentage points from the fourth quarter of 2012 as a
result of lower promotional expenditures versus the fourth quarter of 2012 and
due to planned higher promotional expenditures in the second quarter of 2013
related to the iPhone and Un-carrier launches. The continued customer adoption
of the Value and Simple Choice plans, which represented 36% of T-Mobile USA's
branded postpaid customer base at the end of the first quarter of 2013, up
from 30% as of December 31, 2012, contributed to service revenue declines in
the quarter of 9.9% year-over-year and 3.0% sequentially. The decrease in
service revenue was partially offset by increases in equipment revenue,
resulting in total revenues declining 7.1% year-over-year. Branded postpaid
ARPU decreased year-over-year by 6.3% to $54.07 partially reflecting increased
adoption of Value Plans, while branded prepaid ARPU increased by 11.3% to
$28.25 due to the continuing success of the Company's monthly prepaid plans.

T-Mobile USA ended the first quarter of 2013 with approximately 34 million
customers, an increase of 579,000 customers from the fourth quarter of 2012.
The Company grew its branded customer base, with 3,000 net customer additions,
for the first time in over 15 quarters, and experienced strong growth in its
wholesale business. Postpaid net customer losses of 199,000 were reduced by
61% from the 510,000 net customer losses in the first quarter of 2012 and the
515,000 net customer losses in the fourth quarter of 2012. Strong branded
postpaid churn performance of 1.9% contributed to the significant decline in
branded customer losses. Our network modernization and strong execution on
customer retention contributed to the 60 basis point reduction in branded
postpaid churn from the first quarter of 2012 rate of 2.50%. The first quarter
of 2013 marked the seventh quarter of branded prepaid customer growth, with
net customer additions of 202,000 during the quarter. Branded prepaid churn of
7% remained consistent sequentially.

Continued progress on execution of the Challenger Strategy

T-Mobile continues to make significant progress executing the five elements of
its Challenger Strategy, the Company's playbook for challenging the industry
status quo with a disruptive approach.

Amazing 4G services

T-Mobile USA announced the launch of its 4G LTE network in seven major
metropolitan areas on March 26, 2013. The Company is making great progress
with its 4G LTE rollout and expects to meet the goal of 100 million covered
pops by mid-2013. We are also planning to deliver on the goal of 200 million
covered pops by the end of 2013.

Deployment of HSPA+ on 1900 MHz spectrum already exceeds the mid-2013 target
of 170 million covered pops, and is well on track for 200 million pops covered
by the end of 2013.

Approximately 16,000 cell sites have been modernized under the Network
Modernization program in less than 10 months. T-Mobile has total coverage of
more than 300 million pops (including roaming) and 4G coverage of 228 million
pops (HSPA+ 42 and 21 Mbps).

Value leader

On March 26, 2013, T-Mobile USA launched the Un-carrier value proposition by
introducing: the radically simple, all unlimited “Simple Choice” service plan,
eliminating annual service contracts, and offering customers the lowest
out-of-pocket cost on some of the most popular devices available in the US
wireless industry. The company also announced it would begin selling the
iPhone at all Company-owned stores on April 12^th.

As of the end of the first quarter of 2013 Value and Simple Choice plans
comprised 36% of the Company's branded postpaid base, up from 30% at the end
of the fourth quarter of 2012. During the first quarter of 2013 the Company
continued to make significant progress with its BYOD (Bring Your Own Device)
program, adding approximately 100,000 previously owned iPhones to T-Mobile
USA's network per month.

Trusted brand

First quarter 2013 branded postpaid churn was 1.9%, the lowest level since the
second quarter of 2008. This is a result of a multi-year churn and retention
program, focused on addressing root causes of churn and dissatisfaction
through policy and operational changes across all customer touch-points and
interfaces.

The March 26, 2013 launch of the Un-carrier value proposition, the “Simple
Choice” service plan and the iPhone were accompanied by a new brand
advertising campaign - focused on differentiating T-Mobile from competitors
and driving customer interest in T-Mobile.

Multi-segment player

The Company increased the number of customers served through its Mobile
Virtual Network Operator (MVNO) partnerships by 376,000 during the quarter, an
almost two-fold increase from the same period in 2012.

Business-to-Business (B2B) continues to demonstrate momentum in the first
quarter. Overall, the number of B2B customers (Corporate, Government, and
Individual Liable subscribers) grew by 7% year-over-year to 6.7 million. As
part of our increased emphasis in development of T-Mobile business customers,
Drew Kelton joined T-Mobile as the Executive Vice President of B2B.
Previously, Drew was President of the Bharti Airtel Business in India.

The combination of T-Mobile USA and MetroPCS closed on April 30, 2013, adding
another flagship brand to the T-Mobile portfolio. We anticipate this will
accelerate our multi-segment growth and increase our ability to serve the full
breadth of the wireless market.

Challenger Business Model

T-Mobile is continuously looking for opportunities to reduce overhead and
other operational costs. T-Mobile continues to re-evaluate the Company's cost
structure and eliminate initiatives which do not fit with the Un-carrier value
proposition and business model - implementing a set of changes which are
targeted to deliver more than $1 billion in gross cost savings for fiscal
2013. These cost savings, which are largely reinvested in driving customer
growth and experience, are an essential element to successful execution.

MetroPCS Combination

Following a successful regulatory review process and approval by MetroPCS'
shareholders, the combination of T-Mobile USA and MetroPCS closed on April 30,
2013, adding in another flagship brand to the T-Mobile portfolio. Together,
T-Mobile USA and MetroPCS will create the U.S. wireless industry's value
leader. The stock of the combined company, T-Mobile US, Inc., trades on the
New York Stock Exchange under the new ticker symbol “TMUS”. T-Mobile frontline
employees and executives recently celebrated the listing of TMUS by ringing
the opening bell at the New York Stock Exchange on May 1, 2013.

Quarterly Financial Results

For more details on T-Mobile USA's first quarter 2013 financial results
including our “Investor Quarterly” and detailed financial tables including the
required non-GAAP reconciliations, please visit T-Mobile US, Inc.'s Investor
Relations website at http://investor.T-Mobile.com.

Forward-Looking Statements

This news release includes “forward-looking statements” within the meaning of
the U.S. federal securities laws. Any statements made herein that are not
statements of historical fact, including statements about T-Mobile's (incl.
T-Mobile USA's) plans, outlook, beliefs, opinions, projections, and
expectations are forward-looking statements. Generally, forward-looking
statements may be identified by words such as “anticipate,” “expect,”
“suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “views,”
“may,” “will,” “forecast,” and other similar expressions. The forward-looking
statements speak only as of the date made, are based on current assumptions
and expectations, and involve a number of risks and uncertainties. Important
factors that could affect future results and cause those results to differ
materially from those expressed in the forward-looking statements include
risks discussed in our filings with the Securities and Exchange Commission,
including those described in our Current Report on Form 8-K filed with the
Securities and Exchange Commission on May 8, 2013. You should not place undue
reliance on these forward-looking statements. We do not undertake to update
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law.

Contact:

T-Mobile US, Inc.
Press Contact:
Media Relations, 425-383-4002
mediarelations@t-mobile.com
or
Investor Relations Contact:
Nils Paellmann, 212-424-2959
investor.relations@t-mobile.com
 
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