T-Mobile US CFO on the Big Hack, Verizon Tracfone, Supply Chain Shortages, and FWA

Peter Osvaldik (photo below), executive vice president & chief financial officer (CFO) of T-Mobile US provided a business update today at the BofA 2021 Media, Communications and Entertainment Conference

Selected Quotes:

“With respect to the (well advertised) data breach, T-Mobile US is not immune to criminal acts, but we have a responsibility to our customers which we take very seriously. We acted quickly to shut down the attack, investigate and get in touch with the consumers that were impacted. We definitely saw some temporary customer cautiousness. But now, several weeks later, consumer flows have normalized. We’re taking significant steps to enhance our security.”

“$750M annual T-Mo revenues would go away if Verizon is successful in acquiring Tracfone, which is clearly a competitor.  We feel good in that space, especially with Metro by T-Mobile as the leading pre-paid service provider.”

“The network experience will become more compelling with 5G, especially mid band (2.5GHz) 5G with 300M bit/sec targeted speeds and the massive capacity that brings.  We’re exactly in the right spot as we take these assets and deploy them at breakneck speeds.”

“We are the 5G (U.S.) leader and that lead will continue to grow. We were first to bring a differentiated rate plan (Magenta MAX) that won’t slow you down.”

“Certainly, from a network perspective, we’re not experiencing any supply chain issues. From a home broadband (FWA) perspective, sometimes demand did exceed supply. We’re already seeing increasing supply there. We feel very good about our momentum on the home broadband side of the house.”

“Samsung has really fallen behind the eight ball relative to other OEMs [original equipment manufacturers] on the global supply chain issue.” Osvaldik noted that Samsung discontinued its Galaxy Note smartphone “which many of our customers just loved,” and that many of the company’s S-series smartphones “are in very short supply.”

“A lot of our customer base are very significant Samsung lovers, and so we probably saw a little bit more of the supply chain issue there. Others (wireless network operators) that have an Apple oriented customer base have been less impacted.”

“The demand we’re seeing for FWA, with download speeds of 100 M bit/sec and soon to increase, is very strong.  We have a target of 7 to 8M FWA customers by the end of 2025.  We’re confident we’ll receive our target (number of subscribers) this year.”

“Large enterprises and government are a tremendous opportunity for us.  It’s opened up a lot of conversations with government organizations. We’re very pleased with the traction we’ve seen.”

Peter Osvaldik Photo

 

 

 

 

 

 

 

 

Peter Osvaldik, Executive Vice President & CFO, T-Mobile

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References:

https://investor.t-mobile.com/investors/default.aspx

https://www.lightreading.com/5g/t-mobile-cfo-samsung-has-really-fallen-behind-eight-ball-/d/d-id/772085?

One thought on “T-Mobile US CFO on the Big Hack, Verizon Tracfone, Supply Chain Shortages, and FWA

  1. T-Mobile’s lead in the deployment of valuable mid-band spectrum for 5G might not last long, according to some analysts.

    “T-Mobile’s competitors have been on a spectrum buying spree since the Sprint deal was approved. … T-Mobile’s spectrum lead has shrunk, primarily due to the C-band and CBRS spectrum auctions. That gap could close further, following yet another auction of midband spectrum this year,” wrote the LightShed analysts, pointing to the spectrum Verizon and AT&T purchased in the recent CBRS and C-band spectrum auctions. Moreover, the FCC’s upcoming midband spectrum auction in October – dubbed the “Andromeda auction” by Light Reading – promises to release even more spectrum.

    LightShed analysts warned that the situation could “limit T-Mobile’s ability to offer a differentiated wireless service offering.”

    https://www.lightreading.com/5g/is-t-mobile-losing-its-edge/a/d-id/772141?

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