Download Report
2016 Annual Report
REWRITING THE RULES. FORCING CHANGE.
Message from John
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VERIZON
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AT&T
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SPRINT
BEATING THE COMPETITION
Better. Faster.
Different.

In 2016, our performance pushed us even further ahead of the competition. And we’re not just doing it BETTER and FASTER than the other guys—we’re doing it DIFFERENT. For 14 quarters, we’ve been the ONLY U.S. wireless company that has consistently grown BOTH our postpaid phone and prepaid businesses. For three years and counting, we’ve outpaced the competition in postpaid phone and total net additions. Our financials are just as strong. We’ve led the industry in service revenue growth and total revenue growth for three years in a row. For full year 2016, we more than doubled our earnings per share and free cash flow. Right on top of all that, we again delivered the FASTEST 4G LTE network in the nation—for the third straight year.

A CLASS OF OUR OWN
Best customer growth in the industry –
AGAIN

With the Un-carrier consistently outpacing the competition, the numbers show we’re now in a class of our own. Since the start, skeptics have doubted our results were sustainable. T-Mobile’s 2016 performance again shows the skeptics got it wrong. T-Mobile set out to change a stupid, broken, arrogant industry by listening to customers and solving their pain points. As a result, customers have come to T-Mobile in droves, making T-Mobile the fastest growing wireless company in the U.S.

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Total Customers End of Year
WITH FINANCIAL RESULTS TO MATCH
Taking care of customers is also good for stockholders
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INDUSTRY-LEADING RESULTS
Translating customer growth to financial growth

In 2016, we again produced the best financial results in the industry by translating strong customer growth to strong growth in revenue, net income, earnings per share, adjusted EBITDA and—ultimately—free cash flow1. Additionally, T-Mobile’s share price growth for 2016 was up well ahead of stock market indices. These consistently strong results over the past three years prove that putting customers first is also good for stockholders.

  • TMUS stock price up 47% in 2016 ($39.12 closing price on 12/31/15 to $57.51 closing price on 12/30/16)
  • +106% $1.69 Earnings Per Share
  • 2nd year in a row leading the industry in consolidated reported earnings per share percentage growth.
TMUS STOCK PRICE UP 47% IN 2016

$39.12 closing price on 12/31/15 to $57.51 closing price on 12/30/16
FUELED BY MORE UN-CARRIER MOVES
Our Un-carrier strategy has upended U.S. wireless
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CHANGING THE GAME
Industry-shaking, consumer-friendly moves

From the start, our not-so-secret recipe for success has been listening to customers and solving their pain points. Four years and 13 industry-rattling Un-carrier moves later, we’re changing wireless for good—and forcing the competition to change along with it. Already, we’ve eliminated annual service contracts, ended overages, enabled upgrades anytime, offered free international data-roaming in over 140 countries and destinations, unleashed unlimited music and video streaming options, and launched all unlimited plans with monthly taxes and fees included. The Un-carrier’s momentum has become a consumer revolution that sets T-Mobile completely apart from the competition—with business results to match.

Un-carrier moves
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UN-CARRIER 11
T-Mobile Tuesdays

During a nationwide simulcast to millions of Un-carrier customers, T-Mobile President & CEO John Legere unveiled the company’s 11th iconic Un-carrier move — #GetThanked — a set of initiatives dedicated exclusively to thanking T-Mobile customers with ownership in the company and free stuff every week.

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UN-CARRIER 12
T-Mobile ONE

We announced T-Mobile ONE—a radical new take on how Americans access the mobile Internet. With unlimited everything, T-Mobile ONE unleashes customers to use their smartphones how they want, without ever worrying about data limits again. T-Mobile ONE upends the very idea of traditional wireless rate plans with a single, simple, 100% unlimited offer for smartphones—and even tablets.

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UN-CARRIER 13
Un-carrier Next

T-Mobile kicked off the next phase of its Un-carrier movement—unveiling a set of new moves aimed at eliminating some of the worst customer pain points in wireless. At the Un-carrier Next press event, we announced an end to monthly fees and added taxes, giving customers exclusive power to change the price they pay, and even putting money back in their pockets for data they don’t use.
IT'S ALL UNLIMITED. ALL IN!

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tmobile-tuesday
UN-CARRIER 11
T-Mobile Tuesdays

During a nationwide simulcast to millions of Un-carrier customers, T-Mobile President & CEO John Legere unveiled the company’s 11th iconic Un-carrier move — #GetThanked — a set of initiatives dedicated exclusively to thanking T-Mobile customers with ownership in the company and free stuff every week.

tmobile-tuesday
UN-CARRIER 13
Un-carrier Next

T-Mobile kicked off the next phase of its Un-carrier movement—unveiling a set of new moves aimed at eliminating some of the worst customer pain points in wireless. At the Un-carrier Next press event, we announced an end to monthly fees and added taxes, giving customers exclusive power to change the price they pay, and even putting money back in their pockets for data they don’t use.
IT'S ALL UNLIMITED. ALL IN!

Un-carrier moves
tmobile-tuesday
UN-CARRIER 12
T-Mobile ONE

We announced T-Mobile ONE—a radical new take on how Americans access the mobile Internet. With unlimited everything, T-Mobile ONE unleashes customers to use their smartphones how they want, without ever worrying about data limits again. T-Mobile ONE upends the very idea of traditional wireless rate plans with a single, simple, 100% unlimited offer for smartphones—and even tablets.

FASTEST 4G LTE NETWORK IN THE NATION — AGAIN

We’re continuing to make investments in our network to provide 320 million people with 4G LTE coverage by year-end 2017

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INVESTMENTS THAT MATTER
Network parity with Verizon

T-Mobile’s incredible results are fueled by investments we’ve made in our network. At the end of 2016, our 4G LTE coverage was at 314 million POPs, and we’re targeting 320 million by year-end 2017. Multiple sources confirmed what we already knew—T-Mobile’s network is at parity with Verizon’s.

THE NUMBERS DON’T LIE
3 years of speed leadership for
T-Mobile
Average 4G LTE Download and Upload Speeds - 4Q16
(in Mbps, D/L at Base, U/L at Top)

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Based on T-Mobile's analysis of crowd-sourced 4G LTE download and upload speeds.
Speed matters

For three years running, we’ve delivered the nation’s fastest download AND upload LTE speeds.

With today’s massive rise in social sharing, upload speeds are increasingly critical. Our upload speeds are a full 40% faster than Verizon—the next closest competitor—and more than 150% faster than Sprint.

Massive coverage

Our deployment of T-Mobile Extended Range LTE on the 700 MHz A-Block spectrum band is far ahead of schedule.

500 markets markets live at the end of 2016, covering more than 252 million people, and we’re rapidly rolling out our remaining 700 MHz A-Block spectrum.

Always expanding

This network expansion also gives us the unique ability to grow our distribution footprint by 30 to 40 million POPs by the middle of 2017.

1,400 stores were added in 2016 almost 400 T-Mobile stores and 1,000 MetroPCS stores.

CUSTOMERS FIRST

Our Un-carrier strategy begins and ends with the customer in mind

Crowd-sourced testing.
THE UN-CARRIER STRATEGY
Removing pain points and improving the customer experience

Every industry-disrupting move we’ve made has been about removing pain points and improving the customer experience. Every new network technology we roll out is about improving the customer’s network experience. This gives focus and impetus to everything we do.

Crowd-sourced testing.
THE REAL WORLD
Crowd-sourced testing

We emphasize crowd-sourced test results that reflect real-world customer experiences on our network. The old-school drive tests simply can’t capture our customers’ real network experience everywhere they live, work and play. The focus is on serving the customer.

Putting the customer first.
HOW DO WE DO IT?
Putting the customer first

T-Mobile Tuesdays put a modern twist on the conventional loyalty program, because it’s not about customers proving their loyalty to us. It’s us about thanking them. T-Mobile ONE is about unleashing customers to use their smartphones without ever worrying about data limits and putting an end to monthly taxes and fees—all inspired by our focus on the customer.

Laser Focus.
EMPLOYEE PASSION
Laser focus

Intense focus on our customers gives real meaning to being a T-Mobile employee. Our people are passionate about changing wireless for good—on behalf of our customers. It gives us a very simple, very human measure of our success as a company. Over the past several years, we’ve seen this laser focus deliver strong results to the bottom line and to our valued stockholders.

AN INCREDIBLE YEAR
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Note: Adjusted EBITDA and free cash flow are non-GAAP financial measures. Definitions, explanations and reconciliations to the comparable GAAP metrics are provided in our Form 10-K and other filings with the SEC.