T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Merger or Acquisition (January 2014)
25 slides from T-mobile Us's merger presentation, Jan 6, 2014
Slide 1: T-Mobile US, Inc. A-Block Spectrum Transactions
T-Mobile US, Inc. A-Block Spectrum Transactions Exhibit 99.2
Slide 2: Disclaimer
2 Disclaimer This presentation contains “forward-looking” statements within the meaning of the U.S. federal securities laws. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any statemen
Slide 3: Agenda
Financial Overview Strategic Overview Spectrum and Network Overview Braxton Carter, CF O John Legere, President and CEO 3 Neville Ray , CTO Q&A Agenda
Slide 4: Strategic Overview
4 Strategic Overview John Legere President and CEO
Slide 5: Recent Activity
5 Launched Un-carrier 3.0, Part 2: Tablets Unleashed Reported Strong Q3 Results Completed the sale of primary shares raising net proceeds of approximately $1.8 billion Completed the sale of $2 billion of Senior Notes Recent Activity Oct 22 Nov 5 Nov 20 Nov 21
Slide 6: Highlights of A-Block Transactions
6 Highlights of A-Block Transactions 700 MHz A-Block spectrum from Verizon for $3.315B in consideration – $2.365 billion in cash and the transfer of some AWS and PCS spectrum licenses valued at approximately $950 million* Including existing A-Block holdings in Boston, spectrum covers 158 million peo
Slide 7: Enhancing Our Spectrum Position
7 Completed AWS deal with U.S. Cellular Announced 700 MHz A-Block spectrum licenses from Verizon Wireless Excellent opportunities to acquire valuable spectrum in the near future (e.g., AWS-3 and 600 MHz auctions) Enhancing Our Spectrum Position
Slide 8: Financial Overview
8 Financial Overview Braxton Carter CF O
Slide 9: Comparable Spectrum Comps – Highlights
9 Comparable Spectrum Comps – 700 MHz Highlights Details of Transactions (1) Markets defined as Cellular Market Areas (CMAs) (2) Markets defined as Basic Trading Areas (BTAs) Comparable Spectrum Note: $ per MHz pop price estimates will vary based on the year of underlying population data used in the
Slide 10: Value-Creating Deals for TMUS Shareholders
10 Value-Creating Deals for TMUS Shareholders “Best in Class” mid-band = Speed and Capacity New low-band = Coverage and Reliability Subscriber and capital impacts: – Increased gross adds – Lower Churn – Reduction in future capex Spectrum dispositions will not impair our ability to reach 20+20 MHz 4G
Slide 11: Financing Detail
11 Financing Detail Purchase to be funded by cash on hand, supported by our recent equity and debt deals Equity Debt (1) Based on 3Q13 cash, proforma for recent debt and equity raise $14.0 $16.4 Current Post Deal Net Debt excl. towers ($B) (1) 2.6x 3.0x Current Post Deal LTM Leverage Ratio (1) $6.2
Slide 12: Implementation and Next Steps
12 Implementation and Next Steps Deals are expected to close in mid-2014 Rapid deployment 2014 capex guidance to be provided with 4Q13 results Increased optionality around future spectrum transactions – Disciplined in evaluation of future A-Block transactions – Remain open to future swaps – Plan to
Slide 13: Spectrum and Network Overview
13 Spectrum and Network Overview Neville Ray CT O
Slide 14: A-Block License Areas
14 A-Block License Areas What are we Buying? T-Mobile’s 700 MHz A-Block holdings would cover 158 million people (including Boston) and 70% of T-Mobile’s customers. 251 metropolitan areas, including 9 of the top 10 and 21 of the top 30 markets. Legend New license Existing
Slide 15: Transactions significantly improve T-Mobile's spectrum depth
15 Transactions significantly improve T-Mobile’s spectrum depth Enhanced Spectrum Position Total spectrum in Top 25 Major Metro Areas (in MHz) (1) MHz totals do not tie out exactly due to rounding (1) (1) 0.4 AWS PCS 700MHz Total Before After
Slide 16: Importance of Low-Band Spectrum
16 Sub-Urban and Rural Coverage In-Building Penetration Complements Mid-Band Spectrum Low-band coverage Sub-Urban Urban Importance of Low-Band Spectrum Cell sites overlaid with 700MHz will benefit from a significantly larger coverage footprint in suburban and rural areas Cost effective coverage exte
Slide 17: Resolution of A-Block Interference
17 Digital TV Channel 51 E-Block transmissions Resolution of A-Block Interference Lower 700 MHz Band Channel 51 service areas cover less than 50% of licensed POPs Mitigation techniques exists to shrink these zones today Fully resolved as part of the Broadcast Incentive Auction Dish agreed to reduce
Slide 18: Early Deployment Opportunity
18 A-Block build-out can start in 2014 outside the Ch.51 Service contours with more than 50% of covered population in such areas Initial markets where Ch.51 is not present include Washington DC, Dallas, Philadelphia, Houston, Miami and Minneapolis T-Mobile has large number of existing sites (~15,000
Slide 19: Handsets and Infrastructure
19 Infrastructure Handsets Handsets and Infrastructure A-block network infrastructure has already been developed and deployed We have a large base of existing sites to facilitate rapid deployment We have a strong record of deploying new bands and technologies rapidly First devices compatible with A-
Slide 20: Recap Highlights
20 Recap Highlights John Legere President and CE O
Slide 21: Recap Highlights
21 Recap Highlights 700 MHz A-Block spectrum from Verizon for $3.315B – $2.365 billion in cash and the transfer of some AWS and PCS spectrum licenses valued at approximately $950 million* Including existing A-Block holdings in Boston, spectrum covers 158 million people or approximately 50% of the U.
Slide 22: Q&A
22 Q&A
Slide 23: Appendix
23 Appendix
Slide 24: A-Block: Top Cellular Market Areas
24 A-Block: 21 of the Top 30 Cellular Market Areas
Slide 25: AWS/PCS License Exchange Markets
25 CMA BTA TO T-MOBILE: CMA BTA Covered Covered AWS PCS 700 Total AWS PCS 700 AWS PCS 700 Total AWS PCS 700 Total Market Market Market Name POPs (MM) POPs (MM) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) (MHz) TMUS Spectrum Ownership in AWS/PCS/700 MHz Bands T