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TMUS Q2 2015 Investor Factbook

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Investor Factbook Q2 2015 1


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T-Mobile US, Inc. Investor Factbook T-Mobile US Reports Second Quarter 2015 Results 14% Revenue Growth and 25% Adjusted EBITDA Growth Year-over-Year in Q2 2015 as Customers Continue to Flock to America’s Un-carrier Second Quarter 2015 Highlights: Continued customer momentum and low churn for the fastest growing wireless company in America:      2.1 million total net adds – 9th consecutive quarter of over 1 million 1.0 million branded postpaid net adds – 4th consecutive quarter of over 1 million 760,000 branded postpaid phone net adds – expect to capture all of the industry postpaid phone growth Continued low branded postpaid phone churn of 1.3% -- down 16 bps YoY T-Mobile ranked highest in the J.D. Power Wireless Customer Care Study Strong financial performance with expected industry-leading growth in revenues and Adjusted EBITDA:  $6.1 billion service revenues, up 12% YoY  $8.2 billion total revenues, up 14% YoY  $1.8 billion Adjusted EBITDA, up 25% YoY and 31% QoQ  30% Adjusted EBITDA margin, up from 26% in 2Q14 and 24% in 1Q15  $361 million net income, up from a loss of $63 million in 1Q15  $0.42 earnings per share, strong improvement from loss of $(0.09) in 1Q15  4% QoQ improvement in branded postpaid phone ARPU, returns to positive sequential growth  Branded postpaid ABPU and ABPA hit record levels Continued expansion of the nation’s fastest 4G LTE network:     290 million POPs covered by 4G LTE – targeting 300 million by year-end 2015 212 markets areas with Wideband LTE – more than 250 market areas targeted by year-end 2015 141 market areas with 700 MHz A-Block spectrum already deployed MetroPCS network and customer migration completed, ahead of schedule  100% of MetroPCS CDMA spectrum re-farmed Raising subscriber outlook for 2015 while maintaining Adjusted EBITDA target:     Guidance range for branded postpaid net adds increased to 3.4 to 3.9 million Maintaining target of $6.8 to $7.2 billion of Adjusted EBITDA Maintaining target of $4.4 to $4.7 billion of cash capex Financial guidance excludes any impact of JUMP! On Demand “While the carriers continue to use gimmicks to confuse consumers, T-Mobile continues to listen to customers and respond with moves that blow them away. On top of adding 2.1 million new customers in the second quarter, we delivered 14% year-over-year revenue growth and 25% year-over-year Adjusted EBITDA growth. Overall, I think our results speak for themselves.” 2 —John Legere President and CEO of T-Mobile


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CUSTOMER METRICS Branded Postpaid Customers Total Branded Postpaid Net Adds (in thousands) 1,379 908  204 239 1,175 1,037 991 760 2Q14 3Q14 4Q14 1Q15 Branded postpaid phone churn was 1.32% in the second quarter of 2015, down 16 basis points compared to 1.48% in the second quarter of 2014 and up two basis points compared to 1.30% in the first quarter of 2015. The yearover-year improvement reflects ongoing improvements in the Company’s network, customer service, and the overall value of its offerings in the marketplace, resulting in increased customer satisfaction and loyalty. 134 579 Branded postpaid mobile broadband net customer additions were 248,000 in the second quarter of 2015, compared to 134,000 in the first quarter of 2015 and 329,000 in the second quarter of 2014.  1,125 T-Mobile is expected to again lead the industry in branded postpaid phone net customer additions with 760,000 in the second quarter of 2015, compared to 991,000 in the first quarter of 2015 and 579,000 in the second quarter of 2014. Branded postpaid phone gross additions in the second quarter of 2015 declined by 9% on a sequential basis, but were up 9% year-over-year. T-Mobile is expected to have captured all of the industry’s postpaid phone growth in the second quarter of 2015.  1,276 Branded postpaid net customer additions were 1,008,000 in the second quarter of 2015 compared to 1,125,000 in the first quarter of 2015 and 908,000 in the second quarter of 2014. This marked the fourth consecutive quarter in which branded postpaid net customer additions were greater than one million, a clear indicator of the continued success of the Un-carrier initiatives and strong uptake of promotions for services and devices.  1,008 2Q15 329 Phone 248 Mobile Broadband Branded Postpaid Phone Churn 1.48% 2Q14 1.64% 1.73% 1.30% 3Q14 4Q14 1Q15 1.32% 2Q15 Total Branded Prepaid Net Adds Branded Prepaid Customers (in thousands)  Branded prepaid net customer additions were 178,000 in the second quarter of 2015, compared to 73,000 in the first quarter of 2015 and 102,000 in the second quarter of 2014. The higher level of branded prepaid net customer additions in the second quarter of 2015 was driven by successful promotions for services and devices and slightly lower sequential customer migrations from branded prepaid to branded postpaid.  Migrations to branded postpaid plans reduced branded prepaid net customer additions in the second quarter of 2015 by approximately 175,000, down from 195,000 in the first quarter of 2015 and up from 85,000 in the second quarter of 2014. 411 266 178 102 2Q14 73 3Q14 4Q14 1Q15 2Q15 3


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Branded Prepaid Churn  5.39% 4.93% 4.78% 4.62% 4.50% 2Q14 3Q14 4Q14 1Q15 Branded prepaid churn was 4.93% in the second quarter of 2015, up 31 basis points from 4.62% in the first quarter of 2015 and up 43 basis points from 4.50% in the second quarter of 2014. Sequentially and year-over-year, the increase in churn was principally due to ongoing competitive activity in the marketplace. 2Q15 Total Branded Net Adds Total Branded Customers (in thousands)  1,790 1,542 1,198 1,010 2Q14 3Q14 4Q14 1,186 1Q15 Total branded net customer additions were 1,186,000 in the second quarter of 2015 compared to 1,198,000 in the first quarter of 2015 and 1,010,000 in the second quarter of 2014. This was the sixth consecutive quarter in which branded net customer additions surpassed the one million milestone. 2Q15 Total Wholesale Net Adds Wholesale Customers (in thousands)  Total wholesale net customer additions were 886,000 in the second quarter of 2015 compared to 620,000 in the first quarter of 2015 and 460,000 in the second quarter of 2014.  MVNO net customer additions were 919,000 in the second quarter of 2015 compared to 479,000 in the first quarter of 2015 and 235,000 in the second quarter of 2014.  M2M net customer losses were 33,000 in the second quarter of 2015 compared to net customer additions of 141,000 in the first quarter of 2015 and 225,000 in the second quarter of 2014. 886 460 2Q14 555 586 620 3Q14 4Q14 1Q15 2Q15 Total Net Adds Total Customers (in thousands) 2,345  Total net customer additions were 2,072,000 in the second quarter of 2015 compared to 1,818,000 in the first quarter of 2015 and 1,470,000 in the second quarter of 2014. This was the ninth consecutive quarter in which total net customer additions exceeded one million. It was also the fourth time in the last six quarters in which total net customer additions exceeded two million.  Since the launch of its first Un-carrier initiative nine quarters ago, T-Mobile has added more than 16 million total customers.  T-Mobile ended the second quarter of 2015 with more than 58.9 million total customers. 2,128 1,470 2Q14 3Q14 4Q14 1,818 1Q15 2,072 2Q15 4


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NETWORK Network Modernization Update 4G LTE Covered POPs (in millions of people) T-Mobile’s 4G LTE network now covers 290 million people, up from 275 million at the end of the first quarter of 2015 and 233 million at the end of the second quarter of 2014.  209  The Company is targeting a total 4G LTE population coverage of 300 million people by year-end 2015. During 2015, the Company expects to add one million square miles of territory under its 4G LTE coverage.  300 290 265 Wideband LTE, which refers to markets that have bandwidth of at least 15+15 MHz dedicated to 4G LTE, is currently available in 212 market areas and is now expected to be available in more than 250 market areas by year-end 2015. Customers in Wideband LTE markets are regularly observing peak speeds in the 70 Mbps range, with maximum real-world speeds in excess of 145 Mbps. 0 YE 2012 YE 2013 YE 2014 Current YE 2015 est. Average 4G LTE Speeds - 2Q15 Network Speed (in Mbps) 18.5  T-Mobile has the fastest nationwide 4G LTE network in the U.S. based on download speeds from millions of usergenerated tests. This is the sixth consecutive quarter that TMobile has led the industry in average download speeds.  In the second quarter of 2015, T-Mobile’s average 4G LTE download speed was 18.5 Mbps compared to Verizon at 18.2 Mbps, AT&T at 14.8 Mbps, and Sprint at 10.6 Mbps. 18.2 14.8 10.6 T-Mobile Verizon AT&T Sprint Based on T-Mobile’s analysis of crowd-sourced 4G LTE download speeds. Spectrum T-Mobile Average Spectrum Ownership, Top 25 Markets  At the end of the second quarter of 2015, T-Mobile owned an average of 84 MHz of spectrum across the top 25 markets in the U.S. The spectrum is comprised of an average of 10 MHz in the 700 MHz band, 30 MHz in the 1900 MHz PCS band, and 44 MHz in the AWS band.  (Band, in MHz) The Company expects to participate in future FCC spectrum auctions including the broadcast incentive auction. 700 MHz, 10 AWS, 44 PCS, 30 5


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700 MHz A-Block Spectru m Top 25 Market Deploymen t Timelin e M arket Washi ngton DC Mi nneapol i s, MN Dal l as, TX Houston TX Phi l adel phi a, PA Detroi t, MI Tampa, FL San Antoni o, TX Mi ami , FL Denver, CO Bal ti more, MD Los Angel es, CA New York, NY Atl anta, GA Seattl e, WA Portl and, OR Sacramento, CA A-Block Update  Depl oym en t Date 4Q14 4Q14 1Q15 1Q15 1Q15 1Q15 1Q15 1Q15 2Q15 2Q15 2Q15 2H15 2H15 2H15 2H15 2H15 2H15   T-Mobile owns 700 MHz A-Block spectrum covering 190 million people or approximately 60% of the U.S. population and approximately 70% of the Company’s existing branded customer base. The spectrum covers 9 of the top 10 market areas and 24 of the top 30 market areas in the U.S. Approximately 98% of the population covered by the Company’s A-Block spectrum is free and clear and ready to be deployed or will be ready for deployment in 2015. That is up from approximately 50% at the time of the original ABlock spectrum purchase from Verizon in the first quarter of 2014. T-Mobile has deployed its 700 MHz A-Block spectrum in 141 market areas. New launches in the second quarter of 2015 included the cities of Miami, Denver, Baltimore, Kansas City, Austin, and West Palm Beach. The Company plans to continue to aggressively roll-out new 700 MHz sites with new launches planned for Los Angeles, New York, Atlanta, Seattle, Portland, and Sacramento in 2015, among others. METROPCS  MetroPCS Customer Base on the TMUS Network 67% 78% 87% 92% 100%  2Q14 3Q14 4Q14 1Q15 2Q15  % of MetroPCS Spectrum ReFarmed 60% 63% 2Q14 3Q14 73% 80% 4Q14 1Q15 100%  2Q15 6 On July 1, 2015, T-Mobile officially completed the shutdown of the MetroPCS CDMA network with the decommissioning of the CDMA portion of the MetroPCS networks in Dallas, New York, Miami, Jacksonville, Orlando, and Tampa. Since the close of the business combination in May 2013, nearly 9 million legacy MetroPCS customers have been migrated to the T-Mobile network. 100% of the MetroPCS spectrum on a MHz/POP basis has now been re-farmed and integrated into the T-Mobile network, compared to 80% at the end of the first quarter of 2015. Total decommissioning costs for CDMA network shutdowns were $34 million in the second quarter of 2015, compared to $128 million in total decommissioning costs in the first quarter of 2015. The sequential decrease in total decommissioning costs was primarily due to the timing of the CDMA network shutdowns. Typically, there is a lag of approximately 3 to 6 months between network shutdown and the recognition of decommissioning costs and realization of synergies. The Company expects to incur additional network decommissioning costs in the range of $350 to $450 million with substantially all the costs to be recognized through the rest of 2015. Network decommissioning costs primarily relate to the acceleration of lease costs for decommissioned cell sites and are excluded from Adjusted EBITDA.


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UN-CARRIER INITIATIVES  At the end of the second quarter of 2015, 93% of the branded postpaid customer base was on a Simple Choice plan, up from 92% at the end of the first quarter of 2015 and 80% at the end of the second quarter of 2014.  Simple Choice Plan Penetration At the end of the second quarter of 2015, 11.3 million customers were enrolled in the JUMP! program, up from 10.3 million at the end of the first quarter of 2015 and 6.7 million at the end of the second quarter of 2014. (% of Branded Postpaid Customer Base) 89% 80% 2Q14 92% 93% 84% 3Q14 4Q14 1Q15 Un-carrier Updates 2Q15   Mobile without Borders: This program, launched on July 15, 2015, expands the benefits of T-Mobile’s Simple Choice plan by extending coverage and calling across the U.S, Canada, and Mexico at no extra charge. The upgrade makes Simple Choice the first and only wireless plan to span the entire continent.  10 GB for All: On July 15, 2015, T-Mobile updated its Family Plan program to enable qualifying family plan customers to get 10 GB of 4G LTE data at a great rate. Plans start at $100 per month for two lines each with up to 10 GB of 4G LTE data and each additional line is $20 per month. For a limited time, the fourth line is free.  Total Customers Enrolled in JUMP! Program JUMP! On Demand: On June 28, 2015, T-Mobile updated its JUMP! program to enable customers to have a low monthly payment that covers the cost of leasing a new device plus the freedom to swap their leased device for a new one up to three times in twelve months with no extra fee. Under this program, at lease inception, devices are transferred from inventory to property and equipment. Devices are then depreciated to their estimated residual value. Revenues associated with the leased devices are recognized over the term of the lease. Amping Music Freedom and iPhone®: On July 28, 2015, TMobile updated its Music Freedom program by adding Apple Music to its list of services that stream free on T-Mobile. In addition, every customer who gets a new iPhone 6 with JUMP! On Demand™ this summer can lock in the promotional price of $15 per month and simply swap it for the next comparable iPhone, if they upgrade before the end of the year. Lastly, all customers who get a new iPhone 6 with JUMP! On Demand will have exclusive priority access among T-Mobile’s customers to the next iPhone. (in millions) 6.7 2Q14 8.0 3Q14 9.3 4Q14 10.3 1Q15 11.3 1Q15 7


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DEVICES Device Sales  1Q15 Total smartphone sales were 7.4 million units in the second quarter of 2015 compared to 8.0 million units in the first quarter of 2015 and 6.2 million units in the second quarter of 2014.  2Q14 Total device sales were 8.3 million units in the second quarter of 2015 compared to 8.8 million units in the first quarter of 2015 and 6.9 million units in the second quarter of 2014.  (i n mi l l i on uni ts) The upgrade rate for branded postpaid customers was approximately 9% in the second quarter of 2015 compared to approximately 8% in the first quarter of 2015 and approximately 8% in the second quarter of 2014. 2Q15 Total Company Smartphones Non-Smartphones Mobi l e Broadband Devi ces 6.2 0.4 0.3 8.0 0.5 0.3 7.4 0.5 0.4 Total Company 6.9 8.8 8.3 EQUIPMENT INSTALLMENT PLANS (EIP)  ($ in millions) $4,690 $3,583 $3,963 $497 $380 $727 2Q14 3Q14 4Q14 QoQ Chg in Total EIP $4,842 $152 1Q15 T-Mobile financed $1.697 billion of equipment sales on EIP in the second quarter of 2015, up 14.4% from $1.483 billion in the first quarter of 2015 and up 26.5% from $1.342 billion in the second quarter of 2014. The sequential and year-overyear increase was due to higher gross customer additions, growth in devices financed through EIP, including customers choosing to JUMP!, and a higher average price per device sold.  Customers on Simple Choice plans had associated EIP billings of $1.393 billion in the second quarter of 2015, up 7.8% from $1.292 billion in the first quarter of 2015 and up 72.0% from $810 million in the second quarter of 2014.  Total EIP receivables, net of imputed discount and allowances for credit losses, were $5.114 billion at the end of the second quarter of 2015 compared to $4.842 billion at the end of the first quarter of 2015 and $3.583 billion at the end of the second quarter of 2014. The $272 million sequential increase in total EIP receivables, net in the second quarter of 2015 was higher than the sequential increase of $152 million in the first quarter of 2015, and reflects growth in devices financed through EIP.  Total EIP Receivable, net and QoQ Change in Total EIP Receivable The Company continues to expect that the growth in total EIP receivables, net will moderate significantly in 2015 compared to 2014. $5,114 $272 2Q15 Total EIP Rec., net 8


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CUSTOMER QUALITY  ($ in millions, % of Total Revs) 2.28% 2.07% 1.84% 2.17% 1.91% $164 $152 $150 $169 3Q14 4Q14 1Q15 Total bad debt expense and losses from the factoring arrangement was $156 million in the second quarter of 2015 compared to $169 million in the first quarter of 2015 and $164 million in the second quarter of 2014. Year-overyear, total bad debt expense and losses from the factoring arrangement as a percentage of total revenues decreased 37 basis points. Sequentially, total bad debt expense and losses from the factoring arrangement as a percentage of total revenues decreased 26 basis points, primarily due to a nonrecurring impact from a change to the factoring arrangement in the first quarter of 2015. $156 2Q14 EIP receivables classified as Prime were 52% of total EIP receivables at the end of the second quarter of 2015, flat from the prior quarter and down one percentage point compared to the end of the second quarter of 2014.  Total Bad Debt Expense and Losses from Factoring Arrangement 2Q15 REVENUE METRICS Branded Postpaid Phone ARPU Branded Postpaid Phone ARPU ($ per month)  Branded postpaid phone ARPU was $48.19 in the second quarter of 2015, up 3.8% from $46.43 in the first quarter of 2015 and down 2.3% from $49.32 in the second quarter of 2014. Sequentially, the increase in branded postpaid phone ARPU was primarily due to the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015. Year-over-year, the decrease was primarily due to dilution from continued growth of customers on Simple Choice plans and promotions targeting multiple phone lines, including the “4 for $100” offer.  Excluding the impacts of the non-cash net revenue deferrals for Data Stash, branded postpaid phone ARPU increased 1.0% sequentially. $49.32 $49.84 $48.26 $48.19 $46.43 2Q14 3Q14 4Q14 1Q15 2Q15 Branded Postpaid ABPU Branded Postpaid ABPU ($ per month)  $63.29 $61.59 $61.80 3Q14 4Q14 $60.94 $59.79 2Q14 1Q15 2Q15 9 Branded postpaid ABPU was a record $63.29 in the second quarter of 2015, up 3.9% from $60.94 in the first quarter of 2015 and up 5.9% from $59.79 in the second quarter of 2014. Sequentially, the increase in branded postpaid ABPU was primarily due to the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015 and growth in EIP billings on a per user basis. Year-over-year, the increase was primarily due to growth in EIP billings on a per user basis, offset in part by lower branded postpaid phone ARPU.


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 Branded Postpaid Customers per Account 2.36 2.39 Branded Postpaid Customers per Account  2.43 2.29 2.23 2Q14 3Q14 4Q14 1Q15 Excluding the impacts of the non-cash net revenue deferrals for Data Stash, branded postpaid ABPU increased 1.7% sequentially. 2Q15 Branded Postpaid ARPA Branded postpaid customers per account was 2.43 at the end of the second quarter of 2015, compared to 2.39 at the end of the first quarter of 2015 and 2.23 at the end of the second quarter of 2014. The sequential and year-over-year increase was primarily a result of service promotions targeting multiple phone lines, including the “4 for $100” offer, and increased penetration of mobile broadband devices. Branded Postpaid ARPA ($ per month)  Branded postpaid ARPA was $113.50 in the second quarter of 2015, up 5.1% from $108.04 in the first quarter of 2015 and up 6.0% from $107.11 in the second quarter of 2014. Sequentially, the increase in branded postpaid ARPA was primarily due to the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015 and an increase in the number of branded postpaid customers per account. Year-over-year, the increase was primarily due to higher regulatory program revenues and an increase in the number of branded postpaid customers per account, partially offset by dilution from continued growth of customers on promotions targeting multiple phone lines, including the “4 for $100” offer.  Excluding the impacts of the non-cash net revenue deferrals for Data Stash, branded postpaid ARPA increased 2.1% sequentially. $113.50 $109.80 $109.87 $107.11 2Q14 3Q14 4Q14 $108.04 1Q15 2Q15 Branded Postpaid ABPA Branded Postpaid ABPA ($ per month)  Branded postpaid ABPA was a record $152.31 in the second quarter of 2015, up 5.0% from $145.03 in the first quarter of 2015 and up 15.6% from $131.81 in the second quarter of 2014. Sequentially, the increase in branded postpaid ABPA was primarily due to the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015, growth in EIP billings, and an increase in the number of branded postpaid customers per account. Year-over-year, the increase was primarily due to growth in EIP billings and an increase in the number of branded postpaid customers per account.  Excluding the impacts of the non-cash net revenue deferrals for Data Stash, branded postpaid ABPA increased 2.8% sequentially. $152.31 $138.73 $143.79 $145.03 $131.81 2Q14 3Q14 4Q14 1Q15 2Q15 10


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Branded Prepaid ARPU Branded Prepaid ARPU ($ per month)  $37.81 $37.59 1Q15 4Q14 2Q15 $37.51 3Q14 $37.83 $37.16 2Q14 Branded prepaid ARPU was $37.83 in the second quarter of 2015, essentially flat from $37.81 in the first quarter of 2015 and up 1.8% from $37.16 in the second quarter of 2014. Year-over-year, the increase in branded prepaid ARPU was primarily due to an increase in data attach rates. REVENUES Service Revenue Growth at Wireless Peers Service Revenues (YoY % Growth)  15.0% 10.0% 5.0%  0.0% -5.0% -10.0% 2Q14 3Q14 4Q14 1Q15 2Q15 T-Mobile is expected to again lead the industry in yearover-year service revenue growth in the second quarter of 2015. This would mark the fifth consecutive quarter that TMobile has led the industry in year-over-year service revenue growth. Service revenues were $6.144 billion in the second quarter of 2015, up 5.6% from $5.819 billion in the first quarter of 2015 and up 12.0% from $5.484 billion in the second quarter of 2014. The year-over-year service revenue growth of 12.0% was an acceleration in the growth rate of three percentage points compared to the first quarter of 2015. Sprint Year-over-year, the increase in service revenues was primarily due to growth in the Company’s customer base from the continued success of T-Mobile’s Un-carrier initiatives as well as the success of the MetroPCS brand, partially offset by lower branded postpaid phone ARPU.  AT&T Sequentially, the increase in service revenues was primarily due to growth in the Company’s customer base from the continued success of T-Mobile’s Un-carrier initiatives and strong customer response to promotional activities targeting families as well as the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015.  Verizon  Excluding the impacts of the non-cash net revenue deferrals for Data Stash, service revenues increased 3.7% sequentially. T-Mobile Based on reported results or consensus estimates if not yet reported. Service Revenues ($ in millions) $6,144 $5,484 2Q14 $5,684 3Q14 $5,870 4Q14 $5,819 1Q15 2Q15 11


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Equipment Revenues Equipment Revenues ($ in millions)  Equipment revenues were $1.915 billion in the second quarter of 2015, up 3.5% from $1.851 billion in the first quarter of 2015 and up 19.7% from $1.600 billion in the second quarter of 2014.  Sequentially, the increase in equipment revenues was primarily due to a higher average revenue per device sold, partially offset by a decrease in the number of devices sold.  Year-over-year, the increase in equipment revenues was primarily due to an increase in the number of devices sold, including higher device upgrade volumes. $2,180 $1,851 $1,600 $1,915 $1,561 2Q14 3Q14 4Q14 1Q15 2Q15 Total Revenues Total Revenues ($ in millions)   $8,154 $7,185 $7,350 2Q14 3Q14 4Q14 $7,778 1Q15 T-Mobile is expected to again lead the industry in yearover-year total revenue growth in the second quarter of 2015. Total revenues were $8.179 billion in the second quarter of 2015, up 5.2% from $7.778 billion in the first quarter of 2015 and up 13.8% from $7.185 billion in the second quarter of 2014. $8,179 2Q15 OPERATING EXPENSES Cost of Services Cost of Services ($ in millions, % of Service Revs)  26.5% 26.2% 23.6% 24.0% 22.7% $1,453 $1,488 $1,383 $1,395 $1,397 2Q14 3Q14 4Q14 1Q15 2Q15 Cost of services was $1.397 billion in the second quarter of 2015, essentially flat compared to $1.395 billion in the first quarter of 2015 and down 3.9% from $1.453 billion in the second quarter of 2014. Sequentially, increases in cost of services due to the network expansion and 700 MHz A-Block build out were largely offset by lower lease expense. The year-over-year decrease was primarily due to network synergies realized from the decommissioning of the MetroPCS CDMA network. Cost of Equipment Sales Cost of Equipment Sales ($ in millions, % of Equipment Sales Revs)  138.4% 144.7% 147.9% 139.0% 129.0% $2,215 $2,308 $2,812 $2,679 $2,661 2Q14 3Q14 4Q14 1Q15 2Q15 12 Cost of equipment sales was $2.661 billion in the second quarter of 2015, down 0.7% from $2.679 billion in the first quarter of 2015 and up 20.1% from $2.215 billion in the second quarter of 2014. The sequential decrease was primarily due to a decrease in the number of devices sold, offset in part by a higher average cost per device sold. The year-over-year increase was primarily due to an increase in the number of devices sold, including higher device upgrade volumes.


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SG&A Expenses Selling, General and Admin. (“SG&A”) Expenses ($ in millions, % of Service Revs) 40.8%  40.2% 39.7% $2,151 $2,283 $2,333 $2,372 $2,438 2Q14 3Q14 4Q14 1Q15 2Q15 39.2% 39.7% SG&A expenses were $2.438 billion in the second quarter of 2015, up 2.8% from $2.372 billion in the first quarter of 2015 and up 13.3% from $2.151 billion in the second quarter of 2014. The sequential and year-over-year increase was primarily due to higher employee-related expenses associated with an increase in the number of retail, administrative and customer support employees to support the growing customer base and higher commissions. Additionally, an increase in promotional costs contributed to the year-over-year increase. ADJUSTED EBITDA  T-Mobile is expected to again lead the industry in yearover-year Adjusted EBITDA growth in the second quarter of 2015.  Adjusted EBITDA was $1.817 billion in the second quarter of 2015, up 30.9% from $1.388 billion in the first quarter of 2015 and up 25.2% from $1.451 billion in the second quarter of 2014.  Sequentially, the increase in Adjusted EBITDA was primarily due to higher service revenues from growth in the customer base, decreased losses on equipment sales, and the impact of the non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015, partially offset by higher selling, general and administrative expenses associated with customer growth.  Year-over-year, the increase in Adjusted EBITDA was primarily due to higher service revenues from growth in the customer base and lower cost of services, partially offset by higher selling, general and administrative expenses associated with customer growth.  Adjusted EBITDA in the second quarter of 2015 was impacted by the non-cash net revenue deferrals for Data Stash of $3 million, compared to the $112 million non-cash net revenue deferrals in the first quarter of 2015. Excluding the impacts of the non-cash net revenue deferrals for Data Stash, Adjusted EBITDA in the second quarter of 2015 increased 21.3% sequentially.  Adjusted EBITDA Adjusted EBITDA margin was 30% in the second quarter of 2015 compared to 24% in the first quarter of 2015 and 26% in the second quarter of 2014. ($ in millions, % of Service Revs) 30% 30% 26% 24% $1,451 $1,346 $1,751 $1,388 $1,817 2Q14 3Q14 4Q14 1Q15 2Q15 24% 13


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Net Income NET INCOME AND EARNINGS PER SHARE ($ in millions)  $391 $361 $101 $(63) $(94) 2Q14 3Q14 4Q14 1Q15 2Q15   Net income was $361 million in the second quarter of 2015 compared to a net loss of $63 million in the first quarter of 2015 and net income of $391 million in the second quarter of 2014. The sequential increase in net income was primarily due to higher operating income in the second quarter of 2015. The year-over-year decline was primarily due to gains on disposal of spectrum licenses of $747 million recognized in the second quarter of 2014, partially offset by a decrease in income tax expense primarily due to the impact of income tax benefits for discrete items recognized in the second quarter of 2015, including recent changes in state and local income tax laws and the recognition of certain federal tax credits. Earnings per share was $0.42 in the second quarter of 2015 compared to a loss per share of $(0.09) in the first quarter of 2015 and earnings per share of $0.48 in the second quarter of 2014. T-Mobile expects to report positive earnings per share for all the remaining quarters and the full-year of 2015. CAPITAL EXPENDITURES Cash Capex ($ in millions, % of Service Revs) 22.1% 19.9% 16.9% 17.1%  19.4% $940 $1,131 $1,299 $982 $1,191 2Q14 3Q14 4Q14 1Q15 Cash capital expenditures for property and equipment were $1.191 billion in the second quarter of 2015 compared to $982 million in the first quarter of 2015 and $940 million in the second quarter of 2014. The sequential and year-overyear increase was primarily due to the timing of network spend in connection with T-Mobile’s modernization program and the build out for the 4G LTE on the 700 MHz A-Block and 1900 MHz PCS spectrum. 2Q15 FREE CASH FLOW Free Cash Flow  ($ in millions) $56 $30 $(30) $(69) $(493) 2Q14 3Q14 4Q14 1Q15  2Q15 14 Beginning in the second quarter of 2015, T-Mobile will report Free Cash Flow, which is defined as net cash provided by operating activities less cash capital expenditures, and cease reporting Simple Free Cash Flow, which is defined as Adjusted EBITDA less cash capital expenditures. T-Mobile believes that Free Cash Flow provides a more complete representation of the cash available to pay debt and provide further investment in the business. Net cash provided by operating activities was $1.161 billion in the second quarter of 2015, compared to $489 million in the first quarter of 2015 and $970 million in the second quarter of 2014.


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 Adjusted Free Cash Flow ($ in millions) $108 $35 $73 $(54) $(422) 2Q14 3Q14 4Q14 1Q15  2Q15  Free Cash Flow was a loss of $30 million in the second quarter of 2015, compared to a loss of $493 million in the first quarter of 2015 and Free Cash Flow of $30 million in the second quarter of 2014. Sequentially, the improvement in Free Cash Flow was due to higher operating income and increases from changes in net working capital, partially offset by higher cash capital expenditures. Year-over-year, the decrease was primarily due to decreases from changes in net working capital and higher cash capital expenditures, partially offset by higher operating income. Adjusted Free Cash Flow was $73 million in the second quarter of 2015, compared to a loss of $422 million in the first quarter of 2015 and Adjusted Free Cash Flow of $35 million in the second quarter of 2014. Adjusted Free Cash Flow excludes decommissioning payments related to the one-time shutdown of the CDMA portion of the MetroPCS network from Free Cash Flow. The Company continues to expect that Free Cash Flow will be positive for the full-year 2015. CAPITAL STRUCTURE  Net Debt (excl. Tower Obligations) ($ in billions, Net Debt to LTM Adj. EBITDA) 3.4x 3.4x 3.3x  3.1x 3.0x  $17.2 $17.3 $16.6 $19.3 $19.7 2Q14 3Q14 4Q14 1Q15 2Q15  15 Net debt, excluding tower obligations, at the end of the second quarter of 2015 was $19.7 billion. Total debt, excluding tower obligations, at the end of the second quarter of 2015 was $22.4 billion and was comprised of short-term debt of $0.4 billion, long-term debt to affiliates of $5.6 billion, and long-term debt of $16.4 billion. The ratio of net debt, excluding tower obligations, to Adjusted EBITDA for the trailing last twelve month (“LTM”) period was 3.1x at the end of the second quarter of 2015 compared to 3.3x at the end of the first quarter of 2015 and 3.4x at the end of the second quarter of 2014. The Company’s cash position remains strong with $2.6 billion in cash at the end of the second quarter of 2015. The cash balance declined in the second quarter of 2015 compared to the end of the first quarter of 2015 due primarily to a decrease in accounts payable and accrued liabilities related to the timing of vendor payments.


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GUIDANCE 2015 Gu idan ce Ou tlook  Ori gi n al 1Q15 2Q15 2.2 - 3.2 3.0 - 3.5 3.4 - 3.9 Adjusted EBITDA ($ i n bi l l i ons) $6.8 - $7.2 Unchanged Unchanged Cash Capex ($ i n bi l l i ons) $4.4- $4.7 Unchanged Unchanged  Branded Postpai d Net Adds (i n mi l l i ons)    T-Mobile expects to drive further customer momentum while delivering strong growth in Adjusted EBITDA. With the success of T-Mobile's Simple Choice plan and the continued evolution of the Un-carrier strategy, branded postpaid net customer additions for full-year 2015 are now expected to be between 3.4 and 3.9 million, an increase from the previous guidance of 3.0 to 3.5 million. For full-year 2015, T-Mobile expects Adjusted EBITDA to be in the range of $6.8 to $7.2 billion, which is unchanged from previous guidance despite the increase in branded postpaid net customer additions guidance. Cash capital expenditures for full-year 2015 are expected to be in the range of $4.4 to $4.7 billion, which is unchanged from previous guidance. T-Mobile’s financial guidance for full-year 2015 excludes any benefit from the impact of JUMP! On Demand. The Company intends to disclose the aggregate non-cash impact from JUMP! On Demand and Data Stash in future quarters. In the second quarter of 2015, there were no significant impacts to financial results from JUMP! On Demand and Data Stash. OTHER EVENTS J.D. Power Recognizes T-Mobile for Customer Care  On July 30, 2015, J.D. Power recognized T-Mobile for its leadership in Customer Care Performance, awarding the Company the highest ranking among full service wireless providers in the J.D. Power 2015 Wireless Customer Care Full-Service Study – Volume 2. Regaining the highest ranking reinforces T-Mobile’s track record as an organization with a strong focus and commitment to providing an outstanding customer experience whether you call in, come in to the store, or access online. UPCOMING EVENTS (All dates and attendance tentative)  Oppenheimer 18th Annual Technology, Internet and Communications Conference, August 11-12, 2015, Boston, MA  Goldman Sachs 24th Annual Communacopia Conference, September 16-18, 2015, New York, NY  T-Mobile US, Inc. Q3 2015 Earnings Report, October 28, 2015 CONTACT INFORMATION Press: Investor Relations: Media Relations T-Mobile US, Inc. Nils Paellmann, nils.paellmann@t-mobile.com Ben Barrett, ben.barrett@t-mobile.com Chezzarae Hart, chezzarae.hart@t-mobile.com Cristal Dunkin, cristal.dunkin@t-mobile.com mediarelations@t-mobile.com http://newsroom.t-mobile.com 877-281-TMUS or 212-358-3210 investor.relations@t-mobile.com http://investor.t-mobile.com 16


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T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, 2015 (in millions, except share and per share amounts) December 31, 2014 Assets Current assets Cash and cash equivalents 2,642 $ 5,315 Accounts receivable, net of allowances of $91 and $83 $ 1,827 1,865 Equipment installment plan receivables, net 3,503 3,062 52 76 Inventories 1,135 1,085 Deferred tax assets, net 1,479 988 Other current assets 1,019 1,593 Total current assets 11,657 13,984 Property and equipment, net 16,910 16,245 Accounts receivable from affiliates Goodwill 1,683 Other assets 870 1,611 Equipment installment plan receivables due after one year, net 21,955 735 Other intangible assets, net 1,683 24,272 Spectrum licenses 1,628 320 Total assets 288 $ 57,188 $ 56,653 $ 6,645 $ 7,364 Liabilities and Stockholders' Equity Current liabilities Accounts payable and accrued liabilities Current payables to affiliates 101 231 Short-term debt 386 87 Deferred revenue 574 459 Other current liabilities 558 635 8,264 8,776 16,386 16,273 Long-term debt to affiliates 5,600 5,600 Long-term financial obligation 2,526 2,521 Deferred tax liabilities 5,306 4,873 Deferred rents 2,411 2,331 Total current liabilities Long-term debt Other long-term liabilities 642 616 32,871 32,214 — Total long-term liabilities — Commitments and contingencies Stockholders' equity 5.50% Mandatory Convertible Preferred Stock Series A, par value $0.00001 per share, 100,000,000 shares authorized; 20,000,000 and 20,000,000 shares issued and outstanding; $1,000 and $1,000 aggregate liquidation value Common Stock, par value $0.00001 per share, 1,000,000,000 shares authorized; 816,196,073 and 808,851,108 shares issued, 814,813,568 and 807,468,603 shares outstanding Additional paid-in capital — Accumulated other comprehensive income 38,503 — Treasury stock, at cost, 1,382,505 and 1,382,505 shares issued — 38,595 — 1 Accumulated deficit 1 (22,543) 16,053 Total stockholders' equity Total liabilities and stockholders' equity $ 17 (22,841) 15,663 57,188 $ 56,653


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T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three Months Ended June 30, 2015 (in millions, except shares and per share amounts) Revenues Branded postpaid revenues $ March 31, 2015 Six Months Ended June 30, June 30, 2014 2015 2014 4,075 $ 3,774 $ 3,511 $ 7,849 $ 6,958 1,861 1,842 1,736 3,703 3,384 164 158 172 322 346 44 45 65 89 133 6,144 5,819 5,484 11,963 10,821 1,915 1,851 1,600 3,766 3,048 120 108 101 228 191 8,179 7,778 7,185 15,957 14,060 Cost of services, exclusive of depreciation and amortization shown separately below Cost of equipment sales 1,397 1,395 1,453 2,792 2,917 2,661 2,679 2,215 5,340 4,501 Selling, general and administrative 2,438 2,372 2,151 4,810 4,247 Depreciation and amortization 1,075 1,087 1,129 2,162 2,184 34 128 22 162 34 (23) — (747) (23) (757) Branded prepaid revenues Wholesale revenues Roaming and other service revenues Total service revenues Equipment revenues Other revenues Total revenues Operating expenses Cost of MetroPCS business combination Gains on disposal of spectrum licenses Total operating expenses 7,582 6,223 15,243 13,126 597 Operating income 7,661 117 962 714 934 Other income (expense) Interest expense to affiliates (92) (64) (85) (156) (103) Interest expense (257) (261) (271) (518) (547) Interest income 114 112 83 226 158 Other income (expense), net 1 Income tax expense (benefit) (7) (18) (221) (285) (455) (510) 363 Income (loss) before income taxes (12) (234) Total other expense, net (8) (104) 677 259 424 2 (41) 286 (39) 184 Net income (loss) 361 (63) 391 298 240 Dividends on preferred stock (14) (14) — (28) 347 $ (77) $ Net income (loss) attributable to common stockholders $ 391 $ 270 $ — 240 Other comprehensive loss, net of tax Unrealized loss on available-for-sale securities, net of tax effect of $0, $0, $0, $0 and $(1) — Total comprehensive income (loss) — — — — Other comprehensive loss, net of tax — — — (3) (3) $ 361 $ (63) $ 391 $ 298 $ 237 Earnings (loss) per share Basic $ 0.43 $ (0.09) $ 0.49 $ 0.33 $ 0.30 Diluted $ 0.42 $ (0.09) $ 0.48 $ 0.33 $ 0.30 Weighted average shares outstanding Basic 811,605,031 808,605,526 803,923,913 810,113,564 803,226,194 Diluted 821,122,537 808,605,526 813,556,137 819,548,539 812,903,135 18


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T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Six Months Ended June 30, (in millions) 2015 Operating activities Net cash provided by operating activities $ Investing activities Purchases of property and equipment Purchases of spectrum licenses and other intangible assets Other, net 2014 1,650 $ 1,729 (2,173) (1,844) (12) (1,887) (2,367) (21) (4,029) (4,275) (248) (46) (231) (34) Net cash used in financing activities (294) (265) Change in cash and cash equivalents (2,673) (2,811) 5,315 5,891 2,642 $ 3,080 Net cash used in investing activities Financing activities Repayments of short-term debt for purchases of inventory, property and equipment, net Other, net Cash and cash equivalents Beginning of period End of period $ 19


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T-Mobile US, Inc. Supplementary Operating and Financial Data Quarter (in thousands) Six Months Ended June 30, Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 23,054 23,633 24,807 25,844 26,835 27,595 23,633 27,595 568 897 1,102 1,341 1,475 1,723 897 1,723 23,622 24,530 25,909 27,185 28,310 29,318 24,530 29,318 15,537 15,639 16,050 16,316 16,389 16,567 15,639 16,567 39,159 40,169 41,959 43,501 44,699 45,885 40,169 45,885 M2M customers 3,822 4,047 4,269 4,421 4,562 4,529 4,047 4,529 MVNO customers 6,094 6,329 6,662 7,096 7,575 8,494 6,329 8,494 9,916 10,376 10,931 11,517 12,137 13,023 10,376 13,023 49,075 50,545 52,890 55,018 56,836 58,908 50,545 58,908 Customers, end of period Branded postpaid phone customers Branded postpaid mobile broadband customers Total branded postpaid customers Branded prepaid customers Total branded customers Total wholesale customers Total customers, end of period Quarter (in thousands) Net customer additions (losses) Branded postpaid phone customers Branded postpaid mobile broadband customers Total branded postpaid customers Branded prepaid customers Total branded customers 2014 2015 Six Months Ended June 30, Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 2014 2015 1,256 579 1,175 1,037 991 760 1,835 67 329 204 239 134 248 396 382 1,323 908 1,379 1,276 1,125 1,008 2,231 2,133 465 102 411 266 73 178 567 251 1,186 2,798 2,384 1,751 1,788 1,010 1,790 1,542 1,198 M2M customers 220 225 222 152 141 (33) 445 108 MVNO customers 383 235 333 434 479 919 618 1,398 Total wholesale customers Total net customer additions 603 460 555 586 620 886 1,063 1,506 2,391 1,470 2,345 2,128 1,818 2,072 3,861 3,890 Note: Certain customer numbers may not add due to rounding. Quarter Q1 2014 Branded postpaid phone churn Branded prepaid churn 1.47 % 4.34 % Q2 2014 1.48 % 4.50 % Q3 2014 1.64 % 4.78 % 20 Six Months Ended June 30, Q4 2014 1.73 % 5.39 % Q1 2015 1.30 % 4.62 % Q2 2015 1.32 % 4.93 % 2014 1.47 % 4.42 % 2015 1.31 % 4.78 %


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T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) Quarter Six Months Ended June 30, Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 2014 Financial Metrics Service revenues (in millions) $5,337 $5,484 $5,684 $5,870 $5,819 $6,144 $10,821 $11,963 Total revenues (in millions) $6,875 $7,185 $7,350 $8,154 $7,778 $8,179 $14,060 $15,957 Adjusted EBITDA (in millions) $1,088 $1,451 $1,346 $1,751 $1,388 $1,817 $2,539 $3,205 20% 26% 24% 30% 24% 30% 23% 27% $(151) $391 $(94) $101 $(63) $361 $240 $298 $947 $940 $1,131 $1,299 $982 $1,191 $1,887 $2,173 Adjusted EBITDA margin Net income (loss) (in millions) Cash capex - Property & Equipment (in millions) 2015 Revenue Metrics Branded postpaid ARPA $108.97 $107.11 $109.80 $109.87 $108.04 $113.50 $108.02 $110.81 Branded postpaid ABPA $129.74 $131.81 $138.73 $143.79 $145.03 $152.31 $130.79 $148.72 Branded postpaid accounts, end of period 10,812 11,017 11,297 11,506 11,831 12,061 11,017 12,061 Branded postpaid customers per account 2.18 2.23 2.29 2.36 2.39 2.43 2.23 2.43 Branded postpaid phone ARPU $50.48 $49.32 $49.84 $48.26 $46.43 $48.19 $49.89 $47.33 Branded postpaid ABPU $59.54 $59.79 $61.59 $61.80 $60.94 $63.29 $59.67 $62.14 Branded prepaid ARPU $36.09 $37.16 $37.59 $37.51 $37.81 $37.83 $36.63 $37.82 Smartphone sales units (in millions) 6.9 6.2 6.9 8.0 8.0 7.4 13.1 15.4 Branded postpaid handset upgrade rate 7% 8% 9% 11% 8% 9% 15% 17% $1,249 $1,342 $1,317 $1,902 $1,483 $1,697 $2,591 $3,180 Devices Equipment Installment Plans EIP financed (in millions) EIP billings (in millions) $657 $810 $967 $1,162 $1,292 $1,393 $1,467 $2,685 $3,086 $3,583 $3,963 $4,690 $4,842 $5,114 $3,583 $5,114 EIP receivables classified as prime 53% 53% 53% 54% 52% 52% 53% 52% Total bad debt expense and losses from factoring arrangement (in millions) $157 $164 $152 $150 $169 $156 $321 $325 EIP receivables, net (in millions) Customer Quality 21


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T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited) This Investor Factbook includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. Adjusted EBITDA is reconciled to net income (loss) as follows: Quarter (in millions) Net income (loss) Adjustments: Q1 2014 $ Interest expense to affiliates (151) $ Q2 2014 Q3 2014 391 $ (94) $ Six Months Ended June 30, Q4 2014 101 $ Q1 2015 (63) $ Q2 2015 361 $ 2014 2015 240 $ 298 18 85 83 92 64 92 103 156 Interest expense 276 271 260 266 261 257 547 518 Interest income (75) (83) (97) (104) (112) (114) (158) (226) 6 12 14 (21) 8 (1) 18 7 (102) 286 (117) 99 (41) 2 184 (39) (28) 962 49 433 117 597 934 714 Other expense (income), net Income tax expense (benefit) Operating income (loss) Depreciation and amortization 1,055 1,129 1,138 1,090 1,087 1,075 2,184 2,162 Cost of MetroPCS business combination 12 22 97 168 128 34 34 162 Stock based compensation 49 63 45 54 56 71 112 127 Gains on disposal of spectrum licenses (1) — (731) 11 — — — (731) — Other, net Adjusted EBITDA (1) — $ 6 6 6 — 40 6 1,088 $ 1,451 $ 1,346 $ 1,751 $ 1,388 $ 1,817 $ 2,539 $ 40 3,205 Gains on disposal of spectrum licenses may not agree to the Condensed Consolidated Statements of Comprehensive Income (Loss) primarily due to certain routine operating activities, such as insignificant or routine spectrum license exchanges that would be expected to reoccur, and are therefore included in Adjusted EBITDA. 22


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T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) The following tables illustrate the calculation of ARPA and ABPA and reconcile these measures to the related service revenues, which we consider to be the most directly comparable GAAP financial measure to ARPA and ABPA: Quarter (in millions, except average number of accounts, ARPA and ABPA) Calculation of Branded Postpaid ARPA Branded postpaid service revenues Q1 2014 $ Divided by: Average number of branded postpaid accounts (in thousands) and number of months in period Branded postpaid ARPA $ 3,447 $ Q2 2014 3,511 $ Q3 2014 3,670 $ Six Months Ended June 30, Q4 2014 3,764 $ Q1 2015 3,774 $ Q2 2015 4,075 $ 2014 6,958 $ 2015 7,849 10,543 10,928 11,141 11,421 11,645 11,966 10,736 11,806 108.97 $ 107.11 $ 109.80 $ 109.87 $ 108.04 $ 113.50 $ 108.02 $ 110.81 3,447 $ 3,511 $ 3,670 $ 3,764 $ 3,774 $ 4,075 $ 6,958 $ 7,849 1,162 1,292 1,393 1,467 2,685 4,926 $ 5,066 $ 5,468 $ 8,425 $ Calculation of Branded Postpaid ABPA Branded postpaid service revenues $ Add: EIP billings Total billings for branded postpaid $ customers Divided by: Average number of branded postpaid accounts (in thousands) and number of months in period Branded postpaid ABPA $ 657 4,104 $ 810 4,321 $ 967 4,637 $ 10,534 10,543 10,928 11,141 11,421 11,645 11,966 10,736 11,806 129.74 $ 131.81 $ 138.73 $ 143.79 $ 145.03 $ 152.31 $ 130.79 $ 148.72 23


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T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) The following tables illustrate the calculation of ARPU and ABPU and reconcile these measures to the related service revenues, which we consider to be the most directly comparable GAAP financial measure to ARPU and ABPU: Quarter (in millions, except average number of customers, ARPU and ABPU) Calculation of Branded Postpaid Phone ARPU Branded postpaid service revenues Q1 2014 $ Q2 2014 Q3 2014 Six Months Ended June 30, Q4 2014 3,447 $ 3,511 $ 3,670 $ 3,764 $ (47) Less: Branded postpaid mobile broadband revenues (54) (68) (92) 3,400 $ 3,457 $ 3,602 $ 3,672 $ Q1 2015 3,774 $ (109) 4,075 $ (135) 6,958 $ (101) 7,849 (244) $ $ 50.48 $ 49.32 $ 49.84 $ 48.26 $ 46.43 $ 48.19 $ 49.89 $ 47.33 $ 3,447 $ 3,511 $ 3,670 $ 3,764 $ 3,774 $ 4,075 $ 6,958 $ 7,849 1,162 1,292 1,393 1,467 2,685 4,926 $ 5,066 $ 5,468 $ 8,425 $ 24,091 25,359 26,313 27,250 6,857 $ 2015 Branded postpaid phone service revenues 23,368 3,940 $ 2014 Divided by: Average number of branded postpaid phone customers (in thousands) and number of months in period Branded postpaid phone ARPU 22,447 3,665 $ Q2 2015 22,908 7,605 26,781 Calculation of Branded Postpaid ABPU Branded postpaid service revenues Add: EIP billings 657 Total billings for branded postpaid $ customers Divided by: Average number of branded postpaid customers (in thousands) and number of months in period Branded postpaid ABPU $ 4,104 $ 22,975 810 4,321 $ 24,092 967 4,637 $ 25,095 26,572 27,717 28,797 23,533 10,534 28,257 59.54 $ 59.79 $ 61.59 $ 61.80 $ 60.94 $ 63.29 $ 59.67 $ 62.14 1,648 $ 1,736 $ 1,790 $ 1,812 $ 1,842 $ 1,861 $ 3,384 $ 3,703 Calculation of Branded Prepaid ARPU Branded Prepaid Service Revenues Divided by: Average number of branded prepaid customers (in thousands) and number of months in period Branded prepaid ARPU $ 15,221 $ 36.09 $ 15,569 37.16 $ 15,875 37.59 $ 24 16,097 37.51 $ 16,238 37.81 $ 16,396 37.83 $ 15,395 36.63 $ 16,317 37.82


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T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding Tower Obligations) to last twelve months adjusted EBITDA ratio is calculated as follows: Three Months Ended Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, 2014 2014 2014 2014 2015 2015 $ 151 $ 272 $ 1,168 $ 87 $ 467 $ 386 5,600 5,600 5,600 5,600 5,600 5,600 (in millions, except net debt ratio) Short-term debt Long-term debt to affiliates Long-term debt 14,331 14,369 16,284 16,273 16,261 16,386 Less: Cash and cash equivalents (5,471) (3,080) (5,787) (5,315) (3,032) (2,642) $ 14,611 $ 17,161 $ 17,265 $ 16,645 $ 19,296 $ 19,730 $ 4,936 $ 5,122 $ 5,124 $ 5,636 $ 5,936 $ 6,302 3.0 3.4 3.4 3.0 3.3 Net Debt (excluding Tower Obligations) Divided by: Last twelve months Adjusted EBITDA (1) Net Debt (excluding Tower Obligations) to Last Twelve Months Adjusted EBITDA Ratio 3.1 (1) March 31, 2014 Adjusted EBITDA for the last twelve months includes Pro Forma combined results from Q2 2013 to reflect the results of MetroPCS prior to the business combination. Free cash flow and adjusted free cash flow are calculated as follows: Quarter (in millions) Net cash provided by operating activities Cash purchases of property and equipment Q1 2014 $ Free Cash Flow (188) MetroPCS CDMA network decommissioning payments Adjusted Free Cash Flow 759 $ (947) 9 $ (179) $ Q2 2014 Q3 2014 Six Months Ended June 30, Q4 2014 970 $ (940) 1,062 $ (1,131) 1,355 $ (1,299) 30 (69) 56 5 15 35 $ (54) $ 25 52 108 $ Q1 2015 489 $ (982) Q2 2015 2014 2015 1,161 $ (1,191) 1,729 $ (1,887) (493) (30) (158) 71 103 (422) $ 73 $ 1,650 (2,173) (523) 14 174 (144) $ (349)


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Definitions of Terms Operating and financial measures are utilized by T-Mobile's management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mobile believes the measures facilitate key operating performance comparisons with other companies in the wireless industry to provide management, investors, and analysts with useful information to assess and evaluate past performance and assist in forecasting future performance. 1. Customer - SIM card with a unique T-Mobile mobile identity number which generates revenue. Branded customers generally include customers that are qualified either for postpaid service, where they generally pay after incurring service, or prepaid service, where they generally pay in advance. Wholesale customers include Machine-to-Machine (M2M) and Mobile Virtual Network Operator (MVNO) customers that operate on T-Mobile's network, but are managed by wholesale partners. 2. Churn - Number of customers whose service was discontinued as a percentage of the average number of customers during the specified period. 3. Customers per account - The number of branded postpaid customers as of the end of the period divided by the number of branded postpaid accounts as of the end of the period. An account may include branded postpaid phone and mobile broadband customers. 4. Average Revenue Per Account (ARPA) - Average monthly branded postpaid service revenue earned per account. Branded postpaid service revenues for the specified period divided by the average number of branded postpaid accounts during the period, further divided by the number of months in the period. T-Mobile considers branded postpaid ARPA to be indicative of its revenue growth potential given the increase in the average number of branded postpaid phone customers per account and increased penetration of mobile broadband devices. Average Billings Per Account (ABPA) - Average monthly branded postpaid service revenue earned from customers plus equipment installment plan (EIP) billings divided by the average number of branded postpaid accounts during the period, further divided by the number of months in the period. T-Mobile believes average branded postpaid customer billings per account is indicative of estimated cash collections, including equipment installments, from T-Mobile's customers each month on a per account basis. Average Revenue Per User (ARPU) - Average monthly service revenue earned from customers. Service revenues for the specified period divided by the average customers during the period, further divided by the number of months in the period. Branded postpaid phone ARPU excludes mobile broadband customers and related revenues. Average Billings per User (ABPU) - Average monthly branded postpaid service revenue earned from customers plus EIP billings divided by the average branded postpaid customers during the period, further divided by the number of months in the period. T-Mobile believes branded postpaid ABPU is indicative of estimated cash collections, including equipment installments, from T-Mobile's customers each month. Service revenues - Branded postpaid, including handset insurance, branded prepaid, wholesale, and roaming and other service revenues. 5. Cost of services - Costs directly attributable to providing wireless service through the operation of T-Mobile's network, including direct switch and cell site costs, such as rent, network access and transport costs, utilities, maintenance, associated labor costs, long distance costs, regulatory program costs, roaming fees paid to other carriers and data content costs. Cost of equipment sales - Costs of devices and accessories sold to customers and dealers, device costs to fulfill insurance and warranty claims, write-downs of inventory related to shrinkage and obsolescence, and shipping and handling costs. Selling, general and administrative expenses - Costs not directly attributable to providing wireless service for the operation of sales, customer care and corporate activities. These include commissions paid to dealers and retail employees for activations and upgrades, labor and facilities costs associated with retail sales force and administrative space, marketing and promotional costs, customer support and billing, bad debt expense and administrative support activities. 6. Adjusted EBITDA - Earnings before interest expense (net of interest income), tax, depreciation, amortization, stock-based compensation and expenses not reflective of T-Mobile's ongoing operating performance. Adjusted EBITDA margin is Adjusted EBITDA divided by service revenues. Adjusted EBITDA is a non-GAAP financial measure utilized by T-Mobile's management to monitor the financial performance of its operations. T-Mobile uses Adjusted EBITDA internally as a metric to evaluate and compensate its personnel and management for their performance, and as a benchmark to evaluate T-Mobile's operating performance in comparison to its competitors. Management also uses Adjusted EBITDA to measure its ability to provide cash flows to meet future debt service, capital expenditures and working capital requirements, and to fund future growth. T-Mobile believes analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate overall operating performance and facilitate comparisons with other wireless communications companies. Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for income from operations, net income, or any other measure of financial performance reported in accordance with GAAP. The reconciliation of Adjusted EBITDA to net income (loss) is detailed in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures schedule. 7. Cash capital expenditures - Amounts paid for construction and the purchase of property and equipment. 8. Smartphones - UMTS/HSPA/HSPA+ 21/HSPA+ 42/4G LTE enabled converged devices, which integrate voice and data services. 9. Free Cash Flow - Net cash provided by operating activities less cash capital expenditures for property and equipment. Free Cash Flow is utilized by T-Mobile's management, investors, and analysts to evaluate cash available to pay debt and provide further investment in the business. The reconciliation of Free Cash Flow to net cash provided by operating activities is detailed in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures schedule. 10. Adjusted Free Cash Flow - Free Cash Flow excluding decommissioning payments related to the shutdown of the CDMA portion of the MetroPCS network. 11. Net debt - Short-term debt, long-term debt to affiliates, and long-term debt (excluding tower obligations), less cash and cash equivalents. 26


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Forward-Looking Statements This Investor Factbook 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 plans, outlook, beliefs, opinion, projections, guidance, strategy, integration of MetroPCS, expected network modernization and other advancements, 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: 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 Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 19, 2015. 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. 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 LTE network delivers outstanding wireless experiences to approximately 59 million customers who are unwilling to compromise on quality and value. Based in Bellevue, Washington, T-Mobile US provides services through its subsidiaries and operates its flagship brands, T-Mobile and MetroPCS. For more information, please visit http://www.TMobile.com. 27


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