8-KRegulation FD

T-Mobile US, Inc. 8-K Report, Regulation FD Disclosure (Mar 18, 2020)

Filed March 18, 2020For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) has filed an 8-K to disclose actions taken in response to the COVID-19 pandemic. The company is temporarily closing approximately 80% of its company-owned stores, with remaining locations operating on reduced hours. T-Mobile is also implementing several initiatives to enhance customer connectivity during this period, including providing unlimited smartphone data for 60 days, offering additional mobile hotspot data, and increasing data allowances for Lifeline partners and students through its EmpowerED program. The company acknowledges that the COVID-19 pandemic will materially impact its business operations, customer demand, and supply chain. Due to the uncertainty surrounding the pandemic's magnitude and duration, T-Mobile is currently unable to predict the specific financial impact on its liquidity, financial condition, and results of operations. Further updates on the impacts, including potential revisions to full-year 2020 guidance, are expected during the first quarter earnings release.

Key Highlights

  • 1Temporary closure of ~80% of company-owned T-Mobile stores, with remaining stores on reduced hours (10 am - 6 pm local time) until at least March 31.
  • 2Provision of unlimited smartphone data for all current T-Mobile and Metro by T-Mobile customers for 60 days (excluding roaming).
  • 3Offering 10GB of additional monthly smartphone mobile hotspot data for the next two months (20GB total) to eligible postpaid and Metro customers.
  • 4Increasing data allowances for Lifeline partners (up to 5GB/month for 60 days) and students in the EmpowerED program (at least 20GB/month for 60 days).
  • 5Secured agreements for additional 600 MHz spectrum for 60 days to expand network capacity.
  • 6Expanding roaming access for Sprint customers to use the T-Mobile network.
  • 7Acknowledges potential material impact of COVID-19 on liquidity, financial condition, and results of operations due to uncertainty in magnitude and duration.

Frequently Asked Questions

T-Mobile is temporarily closing approximately 80% of its company-owned stores. The remaining 20% of stores will operate on reduced hours, from 10 a.m. to 6 p.m. local time, until at least March 31. This is subject to guidance from government agencies.

T-Mobile is providing unlimited smartphone data to all current T-Mobile and Metro by T-Mobile customers for 60 days (excluding roaming). Additionally, eligible postpaid and Metro customers will receive 20GB of extra mobile hotspot data over the next two months. The company is also increasing data for Lifeline partners and students using its EmpowerED program.

T-Mobile acknowledges that COVID-19 is impacting and will continue to impact its business operations, customer demand, and suppliers. However, due to the uncertainty surrounding the magnitude and duration of the pandemic, the company is currently unable to predict the precise impact on its liquidity, financial condition, and results of operations, but notes it could be material. Further details are expected during the first quarter earnings release.

Yes, T-Mobile has announced agreements with spectrum holders for an additional 600 MHz spectrum for the next 60 days. This aims to expand network capacity for customers across the country.