T-Mobile US Reports Preliminary Fourth Quarter 2013 Customer Results

  T-Mobile US Reports Preliminary Fourth Quarter 2013 Customer Results

Bold Un-carrier moves drive strong customer results, third consecutive quarter
of over 1 million total net customer additions, 4.4 million customers added in
        2013 and the best branded postpaid performance in eight years

Preliminary Fourth Quarter 2013 Customer Highlights:

  *Total net customer additions of 1.645 million, compared to 1.023 million
    in the third quarter of 2013 and a loss of 32,000 in the fourth quarter of
    2012.
  *Strong branded postpaid net customer additions of 869,000, compared to
    648,000 in the third quarter of 2013 and a loss of 515,000 in the fourth
    quarter of 2012.

       *Branded postpaid net customer additions of 869,000 include phone net
         additions of 800,000 and mobile broadband net additions of 69,000.

  *Accelerating branded prepaid net customer additions of 112,000, compared
    to 24,000 in the third quarter of 2013 and 73,000 in the fourth quarter of
    2012.
  *Continued low branded postpaid churn of 1.7%, compared to 1.7% in the
    third quarter of 2013 and 2.5% in the fourth quarter of 2012.

Business Wire

BELLEVUE, Wash. -- January 8, 2014

T-Mobile US, Inc. (NYSE:TMUS) today provided a preliminary view of key
customer results for the fourth quarter of 2013, demonstrating continued
strong momentum and positive customer response to its Un-carrier moves. The
Company generated over 1.6 million total customer additions and reported
strong positive branded postpaid net customer additions for the third quarter
in a row, as well as continued acceleration in branded prepaid net customer
additions and ongoing improvements in branded postpaid churn.

“Our Un-carrier moves have clearly upended this industry,” said John Legere,
President and CEO of T-Mobile. “Over the past 12 months, 4.4 million customers
have come to T-Mobile in response to greater flexibility and choice. We have
clearly struck a chord with customers and will continue to look for ways to
expand on that in 2014.”

T-Mobile expects to release full fourth quarter results on February 25, 2014.

Preliminary Fourth Quarter 2013 Customer Results

In the fourth quarter, T-Mobile added 1.645 million customers, bringing its
total base to 46.7 million across postpaid, prepaid and wholesale. This was
the third quarter in a row that the Company has generated more than 1 million
customer additions. In addition, the fourth quarter of 2013 had the most
branded postpaid net customer additions since the fourth quarter of 2005.

T-Mobile also reported ongoing strength in its branded postpaid customer
segment. Branded postpaid net customer additions were 869,000, which
represents a 34% improvement compared to the third quarter of 2013. This was
the third quarter in a row of positive branded postpaid net customer
additions, and was also the best result for any quarter this year. For the
full year 2013, the Company reported branded postpaid net customer additions
of 2.0 million, on a pro forma combined basis, above its guidance for branded
postpaid net additions of between 1.6 and 1.8 million. Branded postpaid phone
net additions were 800,000, compared to 643,000 in the third quarter of 2013
and a loss of 511,000 for the fourth quarter of 2012. Mobile broadband
postpaid net additions, primarily consisting of tablets, were 69,000 in the
fourth quarter of 2013, compared to 5,000 mobile broadband postpaid net
additions in the third quarter of 2013, demonstrating the success of
T-Mobile's Un-carrier 3.0, part II initiative of "Tablets unleashed".

Branded prepaid net customer additions in the fourth quarter of 2013 showed
both sequential and year-over-year improvement. T-Mobile had 112,000 branded
prepaid additions, which represents an improvement of 88,000 compared to the
third quarter of 2013. The improved performance was due to a combination of
compelling product offers, expanded MetroPCS coverage, and seasonal strength.
Branded prepaid net customer additions in the fourth quarter of 2013 were
impacted by continued migrations of approximately 120,000 from branded prepaid
to branded postpaid.

Wholesale net customer additions in the fourth quarter of 2013 were 664,000,
compared to 351,000 in the third quarter of 2013 and 410,000 in the fourth
quarter of 2012. Machine to Machine (M2M) net customer additions were 172,000
and Mobile Virtual Network Operator (MVNO) net customer additions were
492,000.

Branded postpaid churn of 1.7% in the fourth quarter of 2013 was consistent
sequentially but declined 80 basis points year-over-year. The 80 basis point
decline in churn represents the best quarterly year-over-year churn
improvement in 2013.

Branded prepaid churn of 5.1% in the fourth quarter of 2013 was up 10 basis
points sequentially and up 20 basis points year-over-year.

For comparability purposes, results are presented on a pro forma combined
basis to reflect the business combination of T-Mobile USA and MetroPCS.

Preliminary Customer Results and Churn Metrics

The following table sets forth the number of ending customers:


                        As of                            % Change
                         December   September   December
(in thousands)           31,       30,        31,        Qtr/Qtr  Year/Year
                         2013       2013        2012 *
Customers, end of
period
Branded postpaid         22,299     21,430      20,293     4.1  %    9.9    %
customers
Branded prepaid          15,072     14,960      14,713     0.7  %    2.4    %
customers
Total branded            37,371     36,390      35,006     2.7  %    6.8    %
customers
M2M customers            3,602      3,430       3,090      5.0  %    16.6   %
MVNO customers           5,711      5,219       4,180      9.4  %    36.6   %
Total wholesale          9,313      8,649       7,270      7.7  %    28.1   %
customers
Total customers, end     46,684     45,039      42,276     3.7  %    10.4   %
of period


The following table sets forth the number of net customer additions (losses):


            Three Months Ended               % Change             Year Ended        % Change
(in          December   September   December                                            2013 vs
thousands)   31,       30,        31,        Qtr/Qtr  Year/Year   2013   2012       2012
             2013       2013        2012 *
Net
customer
additions
(losses)
Branded
postpaid     869        648         (515  )    34.1  %   NM          2,006   (2,074 )   NM
customers
Branded
prepaid      112       24         73        NM       53.4   %    359     548       (34.5 )%
customers
Total
branded      981       672        (442  )    46.0  %   NM         2,365   (1,526 )   NM    
customers
M2M          172        7           135        NM        27.4   %    512     660        (22.4 )%
customers
MVNO         492       344        275       43.0  %   78.9   %    1,531   610       NM    
customers
Total
wholesale    664       351        410       89.2  %   62.0   %    2,043   1,270     60.9  %
customers
Total net
customer     1,645     1,023      (32   )    60.8  %   NM         4,408   (256   )   NM    
additions
(losses)

NM - Not meaningful.


The following table sets forth the churn:


             Three Months Ended                             
              December   September   December   Quarter-over-   Year-over-Year
              31,       30,        31,        Quarter         Change
              2013       2013        2012 *     Change
Branded
postpaid      1.7   %    1.7   %     2.5   %    —               -80 bps
churn
Branded
prepaid       5.1   %    5.0   %     4.9   %    +10 bps         +20 bps
churn


* For comparability purposes, the tables above represent the results of
T-Mobile USA and MetroPCS on a pro forma combined basis as if the business
combination had occurred at the beginning of 2012. The Company's customer
results for the fourth quarter and full year of 2013 are preliminary and
subject to completion of the Company's year-end closing review procedures.
Full fourth quarter results are expected to be released on February 25, 2014.

About T-Mobile US, Inc.:

As America's Un-carrier, T-Mobile US, Inc. (NYSE: "TMUS") is redefining the
way consumers and businesses buy wireless services through leading product and
service innovation. The Company's advanced nationwide 4G and 4G LTE network
delivers outstanding wireless experiences for customers who are unwilling to
compromise on quality and value. Based in Bellevue, Wash., T-Mobile US, Inc.
provides services through its subsidiaries and operates its flagship brands,
T-Mobile and MetroPCS. It currently serves approximately 46.7 million wireless
subscribers and provides products and services through over 70,000 points of
distribution. For more information, please visit http://www.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 US, Inc.'s
expected customer results and expectations relating to continued growth and
operating plans, are forward-looking statements. Generally, forward-looking
statements may be identified by words such as "anticipate," "expect,"
"suggests," "plan," “project,” "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, among others, the following: the possibility that our
final customer results may change as a result of the completion of our
year-end closing procedures; our ability to compete in the highly competitive
U.S. wireless telecommunications industry; adverse conditions in the U.S. and
international economies and markets; significant capital commitments and the
capital expenditures required to effect our business plan; our ability to
adapt to future changes in technology, enhance existing offerings, and
introduce new offerings to address customers' changing demands; changes in
legal and regulatory requirements, including any change or increase in
restrictions on our ability to operate our network; our ability to
successfully maintain and improve our network, and the possibility of
incurring additional costs in doing so; major equipment failures; severe
weather conditions or other force majeure events; and other risks described in
our filings with the Securities and Exchange Commission, including those
described in our Quarterly Report on Form 10-Q filed with the Securities and
Exchange Commission on August 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:
Media Relations
mediarelations@t-mobile.com
http://newsroom.t-mobile.com
or
Investor Relations:
Nils Paellmann, 877-281-TMUS or 212-358-3210
investor.relations@t-mobile.com
http://investor.t-mobile.com
 
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