T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2022 results yesterday, citing “industry-leading growth” in postpaid and broadband customers driven by its “unparalleled 5G network and best value combination.” The company said with the robust pace of its 5G deployment and network integration, it expects cash CapEx to be between $13.2 billion and $13.5 billion which is up $100 million at the midpoint of the guidance as it tries to capitalize on growth opportunities while enhancing the customer network experience.
“Together, we now expect free cash flow, including payments for merger-related costs, to be in the range of $7.2 billion to $7.6 billion which we raised $50 million at the midpoint,” said Mike Sievert, CEO of T-Mobile.
Sievert said the company has achieved some important milestones on merger integration referring to Sprint customers that are on the T-Mobile network who now have T-Mobile plans and T-Mobile device plans. Those customers are now 37 percent of T-Mobile’s base, according to Sievert.
“T-Mobile continues to be the growth leader in this industry, with another beat and raise quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results,” Sievert said. “Only the Un-carrier’s unparalleled network leadership in the 5G era has enabled us to give customers the best network and best value without compromise, and effectively solve one of the most prevalent pain points in the wireless industry. And we are accomplishing this while advancing our integration and delivering bigger synergies faster than expected. I’m excited to carry our momentum forward through the rest of the year.”
The CEO said the company’s greatest impact was to awaken the industry to the transformational performance of mid-band spectrum for Ultra Capacity 5G.
“We already cover 225 million Americans and nearly 85 percent of all T-Mobile customers with these game-changing experiences,” Sievert said. “We caused others to pivot from an apparent willingness to leave fast 5G to a select few customers within arm’s reach of a millimeter wave site. And now we see them greatly increasing their investments in mid-band spectrum and deployment. They are trying to chase us but only to realize they will be and are years behind T-Mobile.”
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