T-Mobile US Inc (NYSE:TMUS) Q1 2019 Earnings Conference Call - Final Transcript

Apr 25, 2019 • 04:30 pm ET

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T-Mobile US Inc (NYSE:TMUS) Q1 2019 Earnings Conference Call - Final Transcript

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Q & A
Executive
J. Braxton Carter

fact book for a quantification of those items.

Analyst
Philip Cusick

Thank you.

Executive
John J. Legere

Okay. Operator?

Operator
Operator

Thank you. We'll take our next question from Michael Rollins of Citi.

Analyst
Michael Rollins

Thanks. Two, if I could. First, if you could talk a little bit more about what you're seeing on the ARPU front and the competitive environment for pricing more broadly. And second, can you give us an update on how you're thinking about bundles within the category, especially in the context of your current Netflix promotion and what you're starting the launch with Layer 3? Thanks.

Executive
Mike Sievert

So, a couple of things. One is, overall this was another quarter of pretty good competitive intensity and everybody has different lens on it. I can tell you that in a quarter where we think we took 88% of all of the postpaid phone net adds and help to drive AT&T and Verizon, both into negative territory, it shows that whether it's -- you define it as a more modestly competitive quarter or whether you define it as a more intensely competitive quarter, I would imagine it sure felt intense over there at those places.

For us, it was just another quarter of delivering what you've come to expect us to deliver, regardless of the condition, so I'm really pleased with that. And then Michael, you had a second question -- it was about bundling. Listen, bundling -- it depends on what you mean by bundling; if what you mean by bundling is that will give you a decent deal on the core product, only if you buy a bunch of other stuff, you don't really want, no, we're not going to do bundling, that's the game plan that AT&T pursues.

You can only get a fair deal, lot of the time depending on how they pulse their promotions on their core wireless product when you take a bunch of crap on satellite TV that you don't want. Now, on the other hand, if you're asking, are we going to plunge ourselves into home broadband with a disruptive offer in the new T-Mobile? Absolutely we are. Are we going to augment that with TV offers that range from full line cable TV replacement to more disruptive lower price offers, absolutely we're going to do that. Are we going to offer those in concert with wireless and create value propositions that are attractive to consumers? Yes, that's what the un-carrier does. So, it all comes down to what do you mean by bundling.

Executive
John J. Legere

Well, he was confused he was referring to what AT&T does, which is ongoing.

Executive
J. Braxton Carter

Hey Mike, let me add a couple of things on the ARPU. I think first and foremost, you're seeing very clearly that we're reiterating our guidance relating to ARPU. And if you look back the last two years, we've been at the low end of that guidance, obviously. And the underlying theory here with the un-carrier, we have much more terminal value unlock by not trying to monetize the existing customer base, but by