Welcome, everybody. Mike and I are back with some huge news today. This is an important day for us, for the proposed new T-Mobile, for the wireless industry, and for consumers across the country, because we are here to announce the first Un-carrier moves we plan to make as the new T-Mobile. Yes, I said moves, plural, because we're not just making one announcement today. We've got a lot of news. More than that, we're making the Un-carrier bigger and bolder after we bring T-Mobile and Sprint together to create the new T-Mobile. For nearly seven years, the Un-carrier has driven every big change in wireless. With the new T-Mobile, the Un-carrier can and will mean even more, solving even bigger customer pain points. We'll be able to supercharge our impact and do some truly epic stuff. I'll be candid.
This deal to create the new T-Mobile has taken longer than we originally thought it would to close, and some people are still asking questions, the right questions. They want to ensure this deal will drive more innovation, stronger competition, and lower prices. These people have yet to realize that we want what they want. We're 100% aligned. We will deliver more innovation, stronger competition, and lower prices. In preparation, we've made incredible progress on the merger. As we've done that, we built the business plan. Mike and I and the whole leadership team have been incredibly inspired. I'm not just talking about the remarkable network we can build, or the ways we can change the game for rural America, or how we can ignite 5G innovation.
I'm talking about the ways we can put this network to work, doing good for the country, good for consumers, good for competition, good for innovation. That's why we're calling this set of moves today 5G for Good. We want everyone to see what this supercharged Un-carrier can do with this supercharged Un-carrier network. Frankly, we just couldn't wait any longer to share our plans.
It all starts with the new T-Mobile network that Neville Ray and team are planning, a network like nothing we've seen before. This map is what our 5G network will become together with Sprint. It's not just 1+1 equals two here. It's 1+1 equals 14. In the next few years, the new T-Mobile network will have 14 times the capacity of T-Mobile standalone, because it just happens to be that the network assets we have and Sprint has are so perfectly complementary, and when you put them together, we can do remarkable things. What we plan to do with the new T-Mobile network isn't just better, it's also different, really different, especially compared to Verizon's scattershot 5G. That's because T-Mobile is starting by covering 200 million people later this year with a broad 5G foundation on T-Mobile's 600 MHz spectrum. Did you hear that?
This year. We're excited to announce that T-Mobile's 5G launch is slated for December 6th. When we launch, we launch big, straight national, with 200 million people covered on day one. We're starting with two great devices available nationwide, the Samsung Galaxy Note10+ 5G and the OnePlus 7T Pro 5G, and many more mainstream devices are on the way next year. That is totally different from what the carriers are doing.
You know, AT&T started in 5G by lying to customers. 5G E, it's not a thing. Almost a year later, consumers still can't get real 5G from AT&T. Verizon at least has launched 5G in parts of 15 cities. That's just so adorable. We'll cover more than 5,000 cities and towns across the country with 5G this year. You can find where our coverage is on t-mobile.com. Yes, we have maps. You can't find where AT&T and Verizon 5G is because they won't tell you. They won't publish 5G maps, and there's a reason they won't. They're embarrassed by just how small their 5G networks are. Instead, Verizon's spending $ millions advertising about their 5G in, and I quote, "parts of the seating areas of a handful of NFL stadiums and concert arenas." Think about that for a minute.
Did you ever think we'd watch one of the biggest, most powerful companies on the planet celebrate the launch of wireless in a building? Not an entire state or even a city, but a frigging building. They're acting like this is a huge deal. It works in parts of this building. They're so impressed with themselves, it's just sad to watch. If the average American is lucky enough to go to one football game in a year in one of these specific stadiums and just happens to be seated in one of these mystery 5G sections, that customer ends up getting about three hours of 5G coverage total, all year long. A whopping 0.03% of their entire year. I did the math. You pay Verizon more for the 5G phone, more for the 5G plan, and you get 5G coverage 0.03% of your year.
That works out to paying about $223 for every hour you'll get a 5G signal, if you're lucky enough to get tickets in a mystery 5G section. To get out of this dilemma, to launch 5G that actually covers any meaningful area, or hell, 5G that even goes through walls, Verizon will have to steal LTE capacity from existing customers, making their already super congested network even more congested. The carriers painted themselves into a technology corner, they're trying to advertise their way out of it.
Exactly. Together with Sprint, we're the only ones who can build 5G with breadth and depth the way it's supposed to be, using all available spectrum bands. When we combine Sprint's mid-band with T-Mobile's low-band and millimeter wave spectrum, we can unlock ridiculous amounts of network capacity, and we can do it quickly. 14 times more than today in just the next few years. It's really simple. This is something we could never do if the merger doesn't happen. All that capacity means very good things. Just wrap your head around this. The combined new T-Mobile network will be crazy fast, 450 Mbps fast by 2024. Let me underscore that. LTE speeds today are around 25 Mbps - 40 Mbps . This network will be more than 10 times faster. Not incrementally faster. Not a marginal speed boost.
It's like your car going from 60 mi/hr to more than 600 mi/hr . It'll open up so many new use cases for our connected lives. Not only will it be crazy fast, it'll be crazy fast for almost everyone. We'll cover nine in 10 people in this country with at least 100 Mbps . Think about that. More than 90% of Americans with 100 Mbps . That means these speeds won't just be in major cities. They'll be in towns and rural areas all across America. All that capacity means that as the new T-Mobile, we can create new competition in home broadband as well, one of the most uncompetitive industries in existence. It means rural America will finally have meaningful coverage. Our business plan is built on covering 90% of rural Americans with great service, and it's about time.
The best part, the new T-Mobile will have so much capacity and at a lower cost to us that we'll be able to deliver our services with lower prices than ever, which you'll start to see in today's news. We've made concrete commitments to keep prices steady or even lower as we develop 5G. After that, we've built an entire business plan on competing on price with this incredibly high capacity, lower cost network. In fact, all three of today's announcements are made possible by one single thing, massive network capacity. We plan to put it to work to make a real difference, to change wireless with 5G for Good. Today's moves are focused on areas where fast, reliable service can change lives for the most deserving and underserved among us. To start things off, who's more deserving than our nation's first responders?
In times of crisis, the ability to communicate is of the utmost importance. Being able to know that necessary resources that can respond to a scene to start addressing the emergency is everything.
Budget allocations are always an issue, especially for first responders. We are constantly doing more with less. It's an interesting challenge where it's technology that's available to everyone that would be beneficial for them, but it's just not affordable. It's making sure that we can get the right technology in the hands of our first responders. Making sure that we're putting technology in place that has outcomes that are positive for the community.
We shouldn't have to decide between the tools we need and saving someone's life.
Our communities face problems today we couldn't even imagine 10 years ago. Natural disasters in greater and greater frequency, an opioid crisis that seems out of control, and increasing gun violence in once safe places. First responders see it all. They fight it all. They help us all. First responders are under more pressure than ever before. With the 5G network new T-Mobile will create, we can do our part to help and say thanks. That's why today I'm proud to announce our Connecting Heroes initiative, a new 10-year commitment to give free 5G service from the new T-Mobile to our local heroes. We're talking about connecting every public and nonprofit state and local police, fire, and EMS agency, and every one of their first responders with unlimited talk, text, and smartphone data with the highest network priority.
If all agencies sign up, it's an estimated $7.7 billion back in their budgets over 10 years. Money that can help close the budget shortfall they face year, after year, after year. Money they can put towards extra pay, life-saving tools, and better support for these brave heroes. All as a result of the tremendous network capacity we can unleash with the new T-Mobile after the merger closes. That is what we mean when we talk about using 5G for Good. First responders could have chosen to do anything, but they chose to keep us safe. This is one way we can say thank you for your service. This is the kind of difference this new combined company can make in the world.
While our Connecting Heroes initiative launches with new T-Mobile next year, today, every public and non-profit state, county or city law enforcement, fire or EMS organization that's interested can get on the list at t-mobile.com/connectingheroes. Our team will start working with you on a first come, first served basis to make sure we're ready to light things up soon after the creation of the new T-Mobile. Please go sign up. That's just the first multi-billion dollar investment we've got to announce today. The second part of 5G for Good takes on a massive pain point with an equally massive solution. There are 35 million households in this country with children, and of those, about 15% have no home internet. Kids in those households can't do their homework online or work on group projects, email teachers, or even keep tabs on their grades.
Over time, that lack of access adds up. Kids without home internet score significantly lower on math, science, and reading tests. It's called the Homework Gap. It affects millions of kids in this country through no fault of their own, just because they live in a family that can't afford it or live in a rural community without reliable internet. It's a huge issue. It's only getting more important, in part because there's no effective competition for home broadband. Almost half, 45% of households, have no choice. That means one or even zero options for high-speed home internet over 100 Mbps . That means affordable home internet is simply out of reach for society's most vulnerable. Nonprofits and governmental bodies far and wide have tried to chip away at the Homework Gap.
We even have our own effort, as does Sprint. economy requires it. Listen, corporations and nonprofits and governmental bodies far and wide have tried to chip away at the Homework Gap. We even have our own effort, as does Sprint, and together, which is great, but it's not enough. Our goal should be plain and simple, to connect every single child. For so many children, home internet access is out of reach, and it's affecting their performance in school.
The Homework Gap is much bigger than just homework. Students that don't have access to the internet are really at a disadvantage.
I've seen kids that don't have access, and it's really hindered their ability to be a part of the classroom.
They can't keep up. If young people don't have the access, they'll fall through the cracks.
Some kids will have to go to the nearby fast food place to get online because they can't do it at home. It's heartbreaking. It's sad because it doesn't need to be.
Innovative technology should improve the state of humankind. It's not that they don't have the ability to learn, it's that they really don't have the access to the information, and I think that's what we're really responsible for.
When they do have access, they're not at a disadvantage. Tomorrow could be different from today.
Imagine the world that will be available to them just by having a new set of tools that they can live their lives with.
Today, I'm honored to announce Project 10 Million, a program that will connect 10 million households over five years for free. This is a $10 billion commitment from the new T-Mobile. That's the opportunity in front of us, to connect every single child. Equality of opportunity is one of the most talked about issues in our society today. Education is supposed to be the great leveler in America. If you work hard, you can get ahead. These kids can't. They fall behind just because they can't get online to do the assignment. It's not right, it's not fair. It's not okay. We're going to do something about it. With the scale and incredible network capacity of the new T-Mobile, we can do more than just chip away at this problem. We can end the Homework Gap so that every single child is connected.
We plan to use the tremendous capacity of the new T-Mobile to connect every child. Now, I want you to understand the scale of what we're announcing. There are only 125 million households total in this country, and only 35 million with kids. We'll reach nearly 1/3 of households with kids with Project 10 Million. More than enough to ensure that every child is connected. An unprecedented effort at an unprecedented scale. We're not just chipping away at this problem, we're pulling out the frigging sledgehammer because we believe where you live shouldn't determine where you go in life, and your family's income shouldn't determine your outcome.
Project 10Million includes completely free service, 100 GB per year, which is more than enough to cover all the year's homework and then some. Plus it includes free mobile Wi-Fi hotspots and a choice of several tablets or laptops available at our cost for 10 million households. Once it's activated, it's theirs. They keep getting access for five years, free of charge. Imagine what else this could mean for those families. They'll have access to online training programs and community networks, job postings, and government resources that can be life-changing. Access to the internet means access to opportunity, and the new T-Mobile will open that door for millions.
I love the impact we can have as the new T-Mobile, the kinds of massive pain points we can solve, the kind of good we can do. That is what we mean by using 5G for Good. Listen, with this merger, there are still people who have raised questions, as we said earlier, because they're looking out for consumers. They want more innovation, stronger competition, and lower prices. Well, we agree. We want the same things, and we intend to deliver them. We're going to give you another example of what we mean by that. Frankly, we'd love to keep this a secret and surprise the hell out of AT&T and Verizon and Comcast and Charter after we launch the new T-Mobile. People understandably want to know what increased competition and lower prices really looks like. Today, we'll show you.
We're announcing a big step we will make with the new T-Mobile to foster competition, drive down prices, and totally transform the status quo in wireless. Today, we're announcing T-Mobile Connect, our lowest prices ever with the new T-Mobile. We'll slash the price of our lowest cost plan in half. It's just $15 a month for unlimited talk and text and 2GB of high-speed data. $15. 15. Customers will save at least $180 every year. To a low-income family, that can leave room in the budget for school supplies, gas in the tank, car repairs, clothing, and more.
This is going to help so many families who struggle to make ends meet so they can get connected and stay connected. We're committing that slashed price will stay slashed for at least five years. Not only that, T-Mobile Connect is the first wireless plan that automatically gets bigger and better every year because we'll introduce something totally new, the Annual Data Upgrade. We know people use more data every year. With T-Mobile Connect, you pay the same, but you get an additional 500 MB of high-speed data per month, every year, for at least five years automatically. In other words, that plan that launches with 2 gigs per month will automatically give you 2.5 gigs per month next year. 3 gigs per month the following year. After five years, you'll still pay just $15 a month, but now you're getting more than twice the high-speed data.
If you've got a 5G phone, you can access 5G, too. It's included at no extra charge. $15 for 5G. This will be the most affordable plan we've ever offered, and it's designed specifically to help people who are under the most financial pressure. Of course, anyone and everyone will be able to get it. No special qualifications are required. Listen, a pricing move this aggressive is going to completely change the wireless game. The other guys will be forced to respond, and that's going to drive down prices for everyone. It's no wonder AT&T and big cable oppose this merger. This is what more competition is all about.
This is just another example of what we've been doing as the Un-carrier for years, changing wireless for good and forcing the industry to follow, sometimes kicking and screaming. That Un-carrier spirit won't be lost as the new T-Mobile. It'll be supercharged so we can take on even bigger pain points. Because we're building a network with such massive capacity, we'll be able to stick it to AT&T and Verizon and Comcast and Charter like never before and help wireless consumers like never before. These moves are just a few examples of the kind of difference we plan to make, the kind of company we will be, and the ways we can use 5G for Good. Look, I know this has been a lot, so let me quickly recap what the new T-Mobile will do. Move number one, Connecting Heroes.
A 10-year initiative to support all of our nation's first responders with free 5G access. For every single public and nonprofit, state and local police, fire, and EMS agency, and put up to $7.7 billion back in their budgets. Move two, Project 10Million, an unprecedented commitment to connect 10 million households for free, backed by a $10 billion investment. With the resources and scale behind Project 10Million, we're aiming to do something that's never been dared before, ending the Homework Gap and ensuring every child in America is connected. Move three, T-Mobile Connect, $15 for 5G access. Our lowest price plan ever with half off our lowest price, created to spark price competition and help low-income families across the country. This is the kind of work we'll do as the new T-Mobile. This is 5G for Good. This is the Un-carrier supercharged. We're not playing the game.
We're changing the game. Of course, we won't stop. Check out this closing video, Mike and I will be back live to answer questions in just a minute.
Hey, everyone. Welcome back. Sorry for that delay. Janice Kapner, Head of Communications and Community Engagement here, and we're coming to you live from New York City. We're heading to the Q&A portion of the call, and I have a number of people here in the room with us now. I have John Legere, our Chief Executive Officer, Mike Sievert, President and COO, Matt Staneff, our EVP and Chief Marketing Officer, Jon Freier, our EVP of Consumer Markets, and Mike Katz, our EVP of T-Mobile for Business. Before we jump into our Q&A session, I have to read this disclaimer for those of you that are joining on the phone.
During this call, we will make forward-looking statements that include projections and statements about our future financial and operating results, our plans, the benefits we expect to receive from the proposed merger with Sprint, and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties outside of our control that could cause our actual results to differ materially, including the risk factors set forth in our annual report on Form 10-K and our quarterly report on Form 10-Q. In addition, in connection with the proposed transaction, on July 30th, 2018, we filed a registration statement on Form S-4 with the SEC related to the merger. The registration statement became effective on October 29th, 2018, and is available on the new T-Mobile website.
It contains important information about the T-Mobile and Sprint merger and related matters. All right, for those of you on the line, make sure you press star one on your phone to enter the queue for a question. If you're asking questions via Twitter, remember to use the hashtag #NewTMobile. John?
Well, we've got a special guest who's on the phone, our own genius, CTO Neville Ray, who at any moment can jump in and dominate the conversation for hours as it relates to any questions about 5G. Neville, you with us?
Can I go now?
No, you can't. We're going to go to questions, I just want to start by saying this is very, very exciting for all of us, and I hope we already answered one big question. Is something going to change with the new T-Mobile? Is that aggressive Un-carrier going to be the same after this merger? I think we answered that question for you. No, they're not going to be the same. We're going to be supercharged, and we're really going to take it to the competition. I am so excited and proud about what we've announced today as the first moves that the new T-Mobile will do, and the types and the size of problems that we are going to solve for customers and for this country, driven by the great capability that happens when you put the new T-Mobile together.
Operator, I think we're ready to take all calls and questions and comments, and you'll see our answers and enthusiasm jumping off this table.
Thank you. As a reminder, please press the star followed by the one on your phone to enter the queue. We'll take our first question from Sarah Krouse with The Wall Street Journal.
Hey, Sarah.
[audio distortion] the lawsuit? Easily assuage their concerns and make that case go away?
Yeah, let me answer that a little broadly. Obviously, we don't, or there would be a settlement taking place. There's so many things going on at the same time. For those of you listening, obviously, we have been preparing for the new T-Mobile and thinking about the things that we want to do, and it's right around the corner. We figured we'd get going and start announcing them. At the same time, we're prepared for a litigation on December 9th with the states who have taken action to block the deal. It's also important to note that we do have FCC and DOJ approval, the two federal agencies that are in charge of reviewing these. In that process, by the way, we made some wonderful commitments that are great for people to review.
Commitments associated with how much we will spend building on our 5G network, how much of the country we will cover with 5G, how much of rural America we will cover, how much in-home broadband marketing we will do, in what period of time. How we're going to position DISH as a competitor with the Sprint prepaid brands and the low-band spectrum and the transition services and MVNO. By the way, I should point out that the action taken by the states was unprecedented in one way. They took it before the federal agencies had ruled. That's their right. We've been meeting with many states, including New York, where we are today, and hearing what's important for them. We have had a number of states pull out of the suit, and what's important to these states is exactly the things that we're talking about.
Very important. They want to know what's going to happen to jobs, what's going to happen to prices, what's going to happen to competition. What are you going to build in my state? What's going to happen to low income? Indirectly, I would say these answers are all part of the things that are critical to them. I will tell you that I did send a letter this morning to various Attorney Generals, including Attorney General James in New York, saying, "Hey, here's some other things that are going on that might be pertinent." I really do hope, as a byproduct of this, that Americans, consumers will start thinking about what is it that's coming with new T-Mobile. What is it that's going to happen? Think about these first responders. Think about what's happening with the education gap .
Look at all these things, and look at the commitments that we have made. I think together, either through a settlement or through a very successful trial, the new T-Mobile is coming, and this is a good statement as to what we're going to be about. Thank you for the question. Operator?
Thank you. We'll take our next question from Eli Blumenthal of CNET.
Morning, everybody. Obviously, a lot of what you talked about today is contingent on the Sprint merger. Will we see any of the initiatives for the first responders, low income, et cetera, happen if this merger doesn't go through? Is this an all or nothing type of, I guess, announcement?
Yeah. Mike, do you want to start?
Well, I'd say absolutely. Everything we announced today is dependent on the massive capacity expansion that comes from the new T-Mobile. Everything we announced today, though, is also consistent with the values of our company, the values of the company we have today. As examples, as we mentioned a little earlier in the broadcast, we have initiatives in these areas at smaller scales. In fact, we announced a couple of weeks ago a standalone T-Mobile initiative for first responders we're very proud of, with half-off pricing. We have initiatives in the education space called EmpowerED, but they're nothing compared to what we can do at a greater scale once we have the synergies and the combined network capacity of this new company. That's really what we were announcing today. Our values, our supercharged Un-carrier ideals taken to the next level by the capabilities of this merger.
Right. Yeah, Eli, we don't want this to sound like a threat. What's happening, and we've said it a few times, we said it in the video, is putting this company and these networks together, 1+1 equals 14. It truly does. There's $60 billion that we'll be investing in our network and 5G capabilities. We will have 14 times the capacity of the current standalone T-Mobile. What we're also demonstrating is with that capacity, we're going to do things for good, and we're going to do things for competition, and we're going to supercharge the Un-carrier. It's not that we're saying we won't. We couldn't. Nobody could. There's magic in putting these two networks together, and that's why this is critically important. I wanted to make sure everybody could see right when it comes together, what we're going to do.
I think you have to admit, these three programs together tell you quite a bit about who the new T-Mobile is going to be and how the game's going to play. Next question.
Thank you. We'll take our next question from Ed Baig of USA Today.
Hi, Good morning. How are you doing? Obviously, proof is in the pudding with details on some of this. Can you give us some indication of how someone, particularly on the Homework Gap plan, would qualify? It's for low-income people, I gather. What's sort of the threshold there?
Yeah, absolutely. Matt, do you want to kick it off? I did want to start by clarifying because it was a question to Ed, that USA Today reporters are not seen as first responders. I just wanted to make that clear.
Hi, Ed. Thanks for the question. Let me first start and talk a little bit about this Homework Gap initiative. There's 35 million households in the U.S. with kids in school. This is K through 12. 15% of those don't have access to the internet right now. That's the first piece of this program. This is really about bridging this Homework Gap.
Going after families that can't afford the access they need to get online. Seven out of 10 teachers assign homework online. The kids get left behind if they don't have access to this. What we're going to do with this program, and again, other companies are making efforts in this area, and what's great about what we can do with new T-Mobile is we're fully funded, and we're fully able to solve this for all of them. We've got 10 million. That's why it's called the Project 10Million, is over the next five years, we're going to solve this problem for everybody. We're looking at the intersection of families without internet at home that have income issues with being able to access that and allowing them a free opportunity for service for this. What we want to do is we also want to do it right.
We're going to go reach out to the local communities, the states, and design the criteria to get enrollment to this program so it's easy and seamless and is the way we do everything at T-Mobile. We haven't solved everything yet, partly because we want to make sure we do it right and we can really take this problem on and completely end the Homework Gap with this initiative.
Matt, a couple things we have decided. First of all, the 10 million units will be allocated to each state on a population basis, so % of total national population. That's the starting point for each state out of the 10 million units. Then we'll, as you were saying, we're going to allocate them based on some simple principles. They're for families with children that are school-aged, that they're families that don't meet a certain income threshold and who are under-connected. Those are the principles, and we're going to work with local organizations to figure out the best way to allocate it based on those principles.
It's interesting because I should say, obviously, we have spent so much time in the last 18 months talking with various legislators and states about this deal, and this is an example of one where when we've spoken to several attorney generals about this idea. When people think there's a gotcha, they say, "Okay, well, how are you going to do that?" Our real answer is, you tell us. What we want to do is we want to work with you for you to tell us. We know who it needs it. You show us where they are, and we'll jointly figure out a way to get this in their hand. This truly is exactly what it sounds like. This is an attempt to take the significant capacity and power of the new T-Mobile network and solve the Homework Gap.
For me, it gives me chills because we really can do it. Together, we're going to find out exactly how to do it. The end result is going to be children who will be connected and able to do their assignments and succeed that they couldn't before. For me, that's one of the most exciting things I've ever been a part of. Operator.
Thank you. We'll take our next question from Scott Moritz of Bloomberg.
Great. Thanks. A very splashy lobbying effort to get the Sprint deal through. Kudos.
Scott.
I hope the AGs were watching for your benefit. The question I have, since you'll have nationwide 5G by the end of the year, is there going to be an additional fee for that service? Will it be a premium tier?
First, for those who are listening, Scott has this wonderful benefit of being snarky and never changing tone right through his delivery. I respect that greatly, and admire the depth with which. Yes, Scott, I'm sure, the attorney generals are watching because this is the kind of thing that they're worried about. This is the kind of things that they're hoping for, and this is going to be very important to them. Thank you for pointing that out. Along with the article that you write saying why without this new T-Mobile, these unbelievable things won't happen. Together, I think we'll be successful. On the 5G item, Mike, if you can even remember what he said.
It's very simple. No. That's in big contrast to our competitors that launched a premium and then a promotion to give you a credit against the premium, maybe pay extra for 5G, except we put a credit, maybe. That kind of stuff. We're not doing that. Our offers will include 5G access, and that's how we intend to go forward. By the way, we will have capabilities in the future to offer more as speeds build and the network becomes more higher capacity and higher speed. The 5G itself that we'll be launching on December 6, absolutely not. Our existing plans will automatically qualify you for that service.
Scott, tell the truth. Do you have 5G E? There you go. Got him. Stumped him. Stumped him. Stumped the stars. All right. Thank you, Scott.
Thanks.
Love that guy. Operator.
Thank you. We'll take our next question from David Shepardson of Reuters.
Thanks for having the call, guys, and the presentation. Your merger agreement expired, I think, Friday night. Is there any consideration by T-Mobile to renegotiate the terms or the deal or seek a lower price for Sprint?
Yeah. Thanks, Dave, for the question. There's been a lot of misunderstanding about that. Let me just clarify a few points on that. The Business Combination Arrangement, the BCA, had in it something called the long stop date, and it was a point which was 18 months in November 1st. It didn't stop the partnership or the moving forward of the Business Combination Arrangement. What it did is that was the date after which either party had a unilateral right to walk away from the deal. Now, it's sort of like going month to month on your rent. There's no more lease. You continue to move forward, as we do with great partners.
If you're going to extend it to another date, you need to take action and amend the BCA. What I can say is, yes, we are having discussions as partners about whether and how long we move forward the date. I would say that in a period in which we are full together moving forward to get this deal approved. What, if any items should be agreed between the parties in exchange for agreeing to extend those terms. Yes, we are having conversations and discussions. Be clear, the Business Combination Arrangement, everything is moving forward 100% and we're discussing how to set a new long stop date and what those terms would be. I hope that's helpful.
John, would that include potentially renegotiating the price? Is that the valuation?
Yeah. I'm not going to get into the actual terms. The question is, okay, November 1st came and went, if we need a certain amount of time to lock each other into a date, what are the things that are important to each of us? They can be value, they can be how do you handle things that have happened that need to possibly be indemnified? How do you agree on future things that you will share in order to settle the deal, et cetera. It's a broad array of things, very partnership oriented, as soon as we have light of day on that, I'm sure we'll put that out. It shouldn't be too far out. It's a positive conversation, it could include any of the things that you're talking about.
Thanks. Just briefly, you guys have made a lot of commitments, obviously, the Homework Gap, much lower prices for first responders and so on. What do you think, is there anything you could do to satisfy the AGs at this point? Would it be a longer commitment in terms of the years before you'd be allowed to raise prices? I mean, is there something specific the AGs want that you think you could give them to head off this legal challenge?
First of all, thank you for that. We have made a tremendous amount of commitments, and I think it's important now, not just for people in the governmental process, but for Americans to sit down and say, "Okay, what's this all about? What does it mean? And if my state proceeds with this and they quote win, what do they get? And if we settle or if we lose, what happens?" Well, listen, $60 billion to build the 5G network that no country on Earth has will not happen. We've committed by year to the penetration points on 5G, rural coverage, competition and in-home broadband, pricing protections. Along with these new items, we've gone to great lengths to position DISH as a very formidable competitor who will have a tremendous start on being a big player and a best of best MVNO.
If you compare all those things to Sprint, who is struggling, I think that's not being disrespectful to our partner. Very clearly, DISH has a head start and a set of commitments that will make them a much more formidable competitor than Sprint is or can be in the short term, and a new T-Mobile. The combination of those two continuing, as you saw today, to make AT&T and Verizon wake up and perform. I think that's the right portfolio. In talking with the states, I know what they're concerned about, and I just covered answers to all of them. There's a win here for everybody, and I'm hoping that the package is here. I would also say we're still having discussions, and if I missed anything, just let me know.
I think this is too important for this country and too important for Americans to let this go on much further. Thank you for the question. That's the conversation, and if there is more, we're ready to consider it.
John, how about if we go to the operator? We'll go to the Twitter feed for a couple of minutes.
Okay
from the feed. I have a screen with some of the questions coming in. Tiffany Jones, @TiffanyJones, "Will T-Mobile Connect be available as an option for anybody or just low-income families?" Jon Freier.
Yeah, you bet. Tiffany, the short answer is, it's available for anyone. It's not just for low-income families, but it's available for anyone. Like Mike said just a few moments ago, when you contrast this launch next to what Verizon did. Verizon earlier this year announced some portions of some areas of two cities for 5G. There was a $10 price increase with that. What we're announcing today is 5G nationwide and standalone T-Mobile, and of course, a deeper, broader, high capacity network within new T-Mobile for just $15 a month. That's half off, 50% off from our lowest price plan that we have today. For families that are struggling to figure out, "Hey, do I have access to the Internet or do I have food on the table? Do I have clothes for my children?
Do I have school supplies for my children or do I have access for the Internet? The new T-Mobile is not going to put families in that position of having to make those trade-offs. The answer is yes. For $15 a month, and then of course, with the Annual Data Upgrade, another 500 MB per year in terms of increase in that plan. It's available for not only folks with economic disadvantages, but it's available for anyone and everyone in this country.
I think, again, what is it that this demonstrates? Is there going to be competition in the low end of the market? Are those that need the service the most going to be able to afford it? I think we've checked that box.
Yeah.
When T-Mobile does this, you know people are going to follow. That's how it happens. That's what we do as the Un-carrier. We're making a big statement in an area that is of great importance to many, many constituents, and I love it. I'm going to go up here one more time just because I like the name. This is from Slick. Which, could be Dave Kerry, I'm not sure. It's, "Hey, @John Legere. I've had Sprint in the past, and the speeds were embarrassing. One meg was a good day, and that was on premium LTE. How will #NewT-Mobile use Sprint assets in the new strategy? What problem was Sprint having in delivering decent speeds?" Mike, do you want to start that? You want Neville? Do you-
Well.
throw to Neville?
We have Neville online. Neville, while you're answering a network question, we also have Sascha Segan, who is asking, "How are you going to get 100 Mbps home internet to rural America with only 31 MHz of 600 spectrum, which doesn't have that capacity?" Sascha might be thinking we're talking about standalone. How about talking about how the new network comes together for both of those tweets?
Thanks, Mike. Morning, everybody. Obviously, nobody more excited than me about we're going to do with the new T-Mobile. Thank you, team there in New York for outlining what's this just incredible once in a lifetime opportunity to put these huge spectral assets between Sprint and T-Mobile together and create a network like we've never seen before. Nobody more excited than me. To the questions about speeds, whether it be rural, whether it be urban, the whole capability that we have with combining T-Mobile and Sprint together is a massive combination of what are disparate spectrum assets today. If you think about the low-band spectrum that Sascha mentioned, we have 600 MHz, which is the base layer, the foundational layer of the new T-Mobile network.
John and Mike talked about how we're going to light up the first tranche of that, a nationwide layer of that, in early December this year. Finally, we start to see breadth and capabilities of 5G in a way that nobody's been able to offer today here in the U.S. That's just the first and foundational layer of the new T-Mobile. On top of that comes this deep and very capable and powerful mid-band layer, the 2.5 GHz spectrum that Sprint has. On top of that, we then move to millimeter wave deployments, which we've already made some of there in New York, for example. Millimeter wave will go on top of this wonderful thing we call the layer cake.
It's the combination of those spectrum assets, the low-band, mid-band, and high-band, that enable us to deliver not just the capacity, the 14x capacity in the future compared to where T-Mobile is today, but also these great speeds that we talked about. There will be rural areas where we will deploy absolutely low-band and mid-band assets to address Sascha's question. Across the U.S., you're going to see an incredible this kind of 10x + lift in speeds and performance, but a massive injection of capacity through basic physics. More sites as we combine these two networks together. Almost a three times increase on those sites compared to T-Mobile today of the sub-6 GHz spectrum, the mid-band and low-band, and the injection of 5G spectral efficiency, a more efficient and better bit pipe.
Those three things are multiplicative, and that's where you get this massive infusion of capacity and capability that we can do so much with in the programs that John and Mike have been outlining this morning. If you don't believe our math, I can tell you, for the last 18 months, we've explained the math and the physics to any number of people from U.S. government departments and expert agencies. You saw this last week, how they ticked off the supply equation that John and Mike were talking about this morning, and the massive capacity that the new T-Mobile can bring to the U.S. marketplace. It is a truly incredible 5G experience, and coming way faster than anything else that we see out there in the U.S. in the near to medium term. I'll stop there, John. Sorry for being long.
Thank you. Yeah. Thank you, Neville. I think everybody who is on this call, you all are the beneficiaries of seven years that I've spent with Neville. Neville being the smartest technology leader in the world from a wireless standpoint, having to take his depth of knowledge and translate it to me. Over those years, Neville has used train analogies, highway analogies, now he's taken 5G and distilled it down to a layer cake approach. I just want to say, you're welcome.
Sounds delicious.
That's right. Okay, operator, we're going to take one on the phone and then we're going to go to another one here on Twitter.
As a reminder, if you would like to ask a question via the phone, please press star one. We'll take our next question from Diana Goovaerts of Mobile World Live.
Hey, guys. Thanks for taking the question. I also asked this on Twitter. I was wondering if you could talk a little bit more about the Connecting Heroes program. Obviously, AT&T is kind of really involved in the space in terms of FirstNet. Are you positioning this as a sort of FirstNet competitor, or is this more of just kind of an individual benefit for first responders? If it is a FirstNet competitor, can you talk about how you're going to ensure reliability on the 5G network? Thank you.
Okay. I can start. No, it's not a FirstNet competitor. It's an AT&T competitor. We applaud FirstNet and the initiative behind it. The bottom line is AT&T won that bid, and they're planning to monetize our first responder community by overcharging them. Our view is the new T-Mobile brings competition to everybody, and that means bringing competition in this space to AT&T. Our thought is, with the values of our company, somebody has to address this budget gap that first responders have. We can because of the massive capacity of this new company, so we will.
Yeah. The fact is, over 75% of first responder agencies report that they have a budget shortfall. Oftentimes, way too often, we hear that that causes a trade-off on critical life-saving equipment or wireless. Many, many agencies we talk to unfortunately have to make that trade-off, not provide wireless to people in our community that can least afford not to have it. These are the heroes in our community that are oftentimes first on the scene when there's a disaster. Too many of these agencies don't have wireless. That's exactly what Connecting Heroes is going after. If all agencies take it up, it allows us to put over $7 billion back into the budgets of agencies that they can spend on other life-saving equipment.
For all of us, this is the most important connection in our lives, right? Our own connection's important, but when lives are on the line, the connections for our first responders are even more important.
There is a message here. Let's remind ourselves of what the Un-carrier is, what the Un-carrier does. We solve pain points. We cause disruption. We try to get others to do what we do. 100% we urge AT&T to give free service to first responders. We urge Verizon to give free service to first responders. I'm not sure that was the FirstNet business plan. I will point out that the new T-Mobile, if you're thinking about this financially, the $43 billion worth of synergies that are going to help fund the build of this network and create this gigantic capacity, and the economics that we've outlined to the market, they are fully intact. AT&T, I agree. First responders should be treated as heroes. We're not trying to copy you.
We're trying to give you a better example of what to do with your newfound capabilities with a section of customers that really need your help. If not, they know where they can come, and we are going to love having them here. Okay, did you?
Okay.
Yes. Go ahead.
Sorry. Could you just address the reliability question then, since 5G is kind of a new technology? I think reliability, especially for first responders, is a huge question.
Well, it goes back to the same issue. This new company, with its $43 billion in synergies, is going to allow an unprecedented investment in our network. Neville talked about some of those initiatives. Neville's actions are backed by a $60 billion budget over the next few years. That's incredible. We'll be spending it on capacity, but of course, we'll be spending it on those kinds of initiatives as well because these connections are so important. Hardening the network, making it increasingly reliable over the years, those continue to be priorities for us. We've done a nice job in that area, but there's so much more we can do. This new company has the financial resources to get it done.
Yeah, let's keep in mind, I know that's not what this call is totally about, but with the work that Neville's done already in what others are calling 5G E or advanced 4G LTE, we cover the same blanket footprint of the other players. We cover the entire country, right? We have a satisfaction rate on our network that is very high. When you move forward with the $60 billion of network investment and the creation of the 5G, the new T-Mobile is the only company, by the way, anywhere on Earth, that has a coherent, full strategy to build a ubiquitous low, mid, and high-band 5G network. Right? We got the synergies and the capital, the commitments that we've made to the FCC to make this a blanket set of capabilities. AT&T and Verizon absolutely do not have a full 5G strategy.
I don't think they ever planned to, but now they're going to be forced to, so I think that's a secondary piece of this. I will put our current network and our 5G plan as the most important reason why first responders should be with T-Mobile.
Back on Twitter, John Schutz asks, "Are first responder organizations eligible if they currently don't have a budget for a phone plan? Thinking of volunteer organizations that currently don't have funds to support phones." Yeah. Absolutely. This is exactly the use case that this Program was designed for. Unfortunately, like I said before, too many agencies find themselves in that position, and that's exactly what this Initiative is looking to address.
Yeah, we want to make sure we stick with it, because I love these questions because you have some groups who clearly are the first responders that are saving people every day.
Right.
Yes, even if you didn't have a budget for it, this is for you.
Yeah.
If you're a first responder organization who has a very small budget, you can save that portion of your budget by getting this capability. We will be so proud for you to reallocate that to other life-saving requirements within your organization. It's most important in what you're talking about, a small, local organization that needs help. Again, we're very proud of this. This is going to be one of those things that the more you peel it back, the better it's going to sound because it's real and it's a big commitment. It's something we're very proud of. Okay, operator.
Thank you. We'll take our next question from Philip Michaels of Tom's Guide.
Yeah. I just wanted to clarify, the T-Mobile Connect data plan, that goes into effect once the new T-Mobile is created and once the merger goes through, correct?
That's correct.
That's right. In fact, we're getting a lot of questions. We could get all that done pretty fast here. If you get the right few people together, have conversations, little paperwork, we can get this going fast. First responder, the whole deal. I'm ready.
Philip, we're getting a lot of the same kinds of questions online as well about availability. All these things are things we're targeting to come out with as soon as we possibly can after the close of the merger. Our teams are working hard on them right now, as we've talked to you about. This is one we can hit with right away. We know how to do this. This is something that we can come right out of the gates and tackle. As John said earlier, we wanted to keep this a surprise. We've been planning to do this. We've been talking about bringing a level of competition, especially for people who have affordability challenges in this sector. We wanted to bring a level of competition to AT&T and Verizon they've never seen, and we wanted to surprise them.
Circumstances just made it right that it's time for us to start talking about what we plan to do anyway. We'll hit right out of the gates with that one.
Listen, I feel compelled. I want to make sure, and I was open and glad to have the discussion. If you think that this is a settlement announcement, it's not. We are this close to the new T-Mobile. If we go to trial on December 9th, we're going to win. The new company is here, and we're just anxious to put it out there. On the other hand, the reason I've been open to having the conversation with you about potentially settling is because the things that the states want are the exact same things that we want. If we can violently agree and get things done, I'm wide open to it. Whatever anybody needs to do to feel like they won, I just want to get this new T-Mobile off and start helping this country in ways that I think will be amazing. Okay. Operator?
Thank you. We'll take our next question from Bryan Koenig of Law360.
Morning. Obviously, you managed to cut deals with the states as part of the coalition suing to block the merger. Wondering if you expect to cut any more of those deals, and what it is exactly that you're offering, and does it vary by state? Obviously, with Mississippi, that deal looked very similar to the commitment that had already been made on the national level. Wondering what the difference was and what the calculations are going forward as you talk to other states and potentially cut other deals.
Yeah. Again, thank you for that. We have come to a lot of deals, a lot of agreements. A few small ones the FCC and the Department of Justice, 18 of 19 state PUCs. By the way, we have 19 states, governors, attorney generals, et cetera, who support the transaction. Now we are discussing with the litigant parties, those that are involved. Frankly, we're not disclosing settlement items here, but they're exactly the things that you would expect, which is, hey, in my state, what's going to happen? What's going to happen to competition? Will you build out in my state? Will we really get 5G? Will rural coverage go up? Will there be in-home broadband? What's going to happen to jobs? What's going to happen to pricing?
In general, we are able to turn around and reach for the commitments that we've made to the federal agencies and then look at them and say, "Okay, well, let's talk about a few things. In your state, here's the things that are going to happen because of this. By the way, we're willing to let you have enforcement capability over that." We're not fooling around. This is what we're going to do. We'll agree, we'll commit. This is what's going to happen to your state. Then we step back, and we move on. In general, when you so violently agree, it's easy. Now, each state has slightly different questions, and the hardest one over time is for them to feel comfortable that there's sufficient competition. That comes in many forms.
That comes in understanding what DISH is going to do, understanding the situation Sprint is going to be in, understanding what the new T-Mobile is all about. That's a lot of the things that we're talking about here today. I will tell you that we're in New York. New York is a great example. The things that the new T-Mobile are going to do in this state for the citizens of New York. We've already announced a major new customer experience center outside of Rochester in New York. We're looking at a potential additional site in Long Island. These are big job-creating sites. We've made commitments to this state about job protections. We've made commitments here about build-out, what we're going to do. Certainly all of what you're talking about here today will accrete heavily to the citizens here of New York.
I would say the ledger of what happens in New York in wireless for consumers if the new T-Mobile is created or if a settlement is reached is here. I think what I can't lay out for you is what's the other. What happens if there is no DISH, there is no new T-Mobile, there is no 14 times capacity? AT&T and Verizon are left to their cushy duopoly that they love, and the cable companies continue to balance their whole business by gouging broadband because they don't have enough competition. That's the analysis. To me, it's pretty clear.
I don't know if you found that helpful, but I did. Okay. You want to take this one, Mike? It's online. How quickly will T-Mobile customers get access to Sprint towers, and will both sets of towers be available to T-Mobile and MVNOs? It's really not about sets of towers. It's about taking all those assets and creating one combined network using the assets of both companies. That's what allows it to unlock all that capacity. It's not taking 1+1 and making both available. It's taking the resources of the two and creating something truly great because of how the resources of the company just happen to be so complementary. The benefits start to roll in right away. It's about a three-year process before the kinds of numbers we've talked about are fully delivered, and five or six before the end state.
The benefits start to roll in for customers right away.
By the way, that Twitter came in from somebody whose name was Legere's Ghost. The at sign was @JohnDoe. The picture was a dog. I don't want to say anything. I'm thinking it was Hans Vestberg. Just saying. It's got to be, right Hans? You can ask questions directly. I know you got a lot of questions over at Verizon. You don't have to make up a fake Twitter handle. I'm here for you, dude.
Okay, operator.
Thank you. We'll take our next question from Nabila Ahmed of Bloomberg.
Hi. Thanks for taking my question. Look, I was just wondering if you could give us a bit of color on the discussions around the extension of the merger agreement and the possibility that deal terms, including price, might be renegotiated. Obviously, Sprint has continued to deteriorate.
Yeah. No, a couple things. I think I've gone a little bit further today than I had recently to just acknowledge and make sure you understand that the long stop date is the item that has expired. We, as partners, are constantly looking at the partnership. It's better than ever. We're 100% focused on getting this deal done. We are discussing what are the ways through which we would agree together to extend the long stop date to a certain time that will give us enough period of time to get this deal done. Obviously, there's many ways to do that, and it could be any of the ones that you're talking about. It's not a hostile conversation. It's an active one, so I'd rather just let that set and we'll announce or not. Remember, nothing happens, right? The process goes forward.
You just have two parties who have a unilateral right to walk. I don't see either party wanting to do that, but there's good certainty for a number of reasons in any publicly traded company of having a clear extension of that period. We've got a number of items that we are talking about, and I'd be glad to share that as soon as it's finalized.
Is there a timeframe that you're targeting for the end of those discussions?
Hopefully as close to when it ended on November 1st as possible.
If you can indulge me for one more, I wanted to ask you about the discussions that you might have had with the states. Could you talk a little bit about the efforts that you have made towards getting them to the table to talk about a settlement?
Well, of course, there's quite a few. I would say that almost across the board, the attorneys general themselves have been very open, and we've had very frank discussions. They've been very clear about their concerns. We've had many follow-up conversations. As I'm disclosing, I don't think it's a secret, we have made settlement proposals as ways to continue those conversations. There's not a one of the attorneys general, including the two major ones in New York and California, who have said other than we're interested and open to continuing have discussions. They have a job to do. They need to understand the potentials associated with competition, the impacts on the marketplace.
I think what you can see, the portfolio of what we've done is clearly, I believe, heavily answering any questions that you would have, especially as it relates to the benefits and the interest of consumers in each of the states. Trial is set for December 9th. I just continue to say we are extremely confident in our case. It's a matter of one way or the other, this new T-Mobile is coming forward. The conversations with the Attorneys General have not been hostile. They have a job to do, and we tend to vehemently agree on the questions. It's just a matter of giving them the things that are required for them to feel that those questions have been answered. Okay, operator.
Thank you. We'll take our next question from Paul Kirby of TR Daily.
Mike, Paul. I have a couple questions. One is you talked about in the first responder plan, they'll be given the highest priority. Of course, AT&T has priority access and preemption as part of their offering for FirstNet, and Verizon does as well. Are you committing to that? Is there any limit at all on the data that the first responder could use that would be capped in any way, or it would all be free?
Yeah. Thanks, Paul. Those are great questions. WPS is available today and it will continue to be available on the new plan. On data for these plans for our first responders, there is no cap. There is no throttling. There is no deprioritization. They will have the highest priority on our network because I think we can all agree that if anybody needs to stay connected, it's this group of first responders.
WPS is for voice. I'm asking about data. Verizon and AT&T offer preemption and priority access to public safety for data. Are you offering that as part of your offering to first responders?
The data will have the highest priority on our network with no throttling and no limits. Preemption's available across all three carriers.
You're offering preemption to them as well, is that correct?
Correct.
The other question I have is, you both talked about 14 x capacity. I think when you first announced the merger, you said eight times, and you talked about $60 billion in spending on 5G. When you first announced the merger, you said $40 billion. Why the change?
Thank you for the potential gotcha questions. Yeah, those are all logical questions. The $40 billion was an overall CapEx spend for three years. $60 billion is a network spend over six years. They're both numbers that we have committed to. Right now, we're speaking more pertinently about the spend on the 5G network capability and network, which is $60 billion. The eight times, 14 x, it's relative to the capacity versus whether it's the standalone T-Mobile or the two standalone companies, et cetera. I can give it to you every which way. What it is it's a shitload more capacity than any version you want to have. If you'd like follow-up on those, since I've had to testify in the Senate and Congress and use both of those, I can guarantee you that they all make sense. That's generally what they are.
Does that make sense?
Yeah. Thank you.
Okay. Since I'm the only company on Earth that takes his questions, let's go ahead and take the next question.
Thank you. Our next question comes from Walter Piecyk of LightShed.
Hey, John. Just a question on the $15 plan, just to get a sense of kind of the impact to your existing base. You've got Boost customers that potentially are low usage. What's the mix of your overall base, prepaid and postpaid, that you think currently use two gig or less? 5 gig and less, I guess.
Yeah. Well, I'm not going to unpack it for you in detail, but I can tell you a couple of things. One is this is going to be a plan that everybody qualifies for. We're going to be launching it on the flagship T-Mobile brand. Anybody can qualify for it. There are no conditions or restrictions. It's not an income-qualified plan or anything like that. That's how we do it at the Un-carrier. By the way, although we haven't talked about it a lot, there are two plans that we're launching. The 2 gig plan for $15, which is half off, as we've been saying, our previous lowest price for a plan with talk, text, and data at 2 gigs or any gigs. As well as a $25 plan with 5 gigs.
Right
Which to your point, is a very mainstream usage scenario that, again, is still lower than our previous lowest price. Mainstream 5 gigs at a lower price, $25, than we've ever offered talk, text, and data for. It's pretty amazing. With the Annual Data Upgrade, both of those move each year. In the second year, there's a half a gig more per month on each of those two plans. Taken together, that's the T-Mobile Connect initiative, and it's a mainstream offering. Now, I will say, and I want to be really clear about this, that these plans are factored into the business models that we've presented to you. When we talked about the new T-Mobile last year and the long-term aspirations for cash flow generation, for revenues, for EBITDA, for the margins of the business, these kinds of initiatives were contemplated.
What we're doing today is we're pre-disclosing them. There's no change to our synergies, nor to our long-term aspirations and financial outlooks that we've previously talked about.
Got it. In Roger's article where he talked about this like $7 billion cost on the Or I guess he didn't phrase it as a cost, but he said benefit to public safety. Again, the rate plans you just outlined compare to like $35 for 3 GB at Boost, obviously less than what the cable operators are even charging. Is the theory here that in terms of why it doesn't impact your previously stated guidance and outlook is that you're just going to get so many more customers from cable and other guys based on these rate plans relative to potentially a re-rate? There's no difference in revenue or EBITDA. Is that the kind of logic behind this?
Well, a couple things. First of all, yes, there is some logic like that. Obviously, we're doing these things to demonstrate what the network is capable of, 5G for Good, to reinforce our values. When we do that, we've learned that our brand grows, and people become more attracted to our brand. We've had plenty of experience now across seven years of what it's like to do initiatives that are good and that also draw attention to our brand. As we've grown more confident in that, we've been able to forecast the effects of that. We think this is going to be very powerful. Customers in general are going to be attracted to a company that's values-driven like this, and there's a factor in there. Separately within these communities, this is just a chance for us to go do something really powerful.
We have the capacity, and so why shouldn't we allocate some of it to something this significant?
That's only a two-question limit today for Buzz Lightyear. We'll get him next time.
All right. Appreciate it.
Thanks, Buzz. I'm going to do one on Twitter and do one on the phone, then we're going to wrap up. Ed Oswald has a question that I think we can answer quickly unless we let Neville answer it, then we'll be here till Tuesday. We're talking about capacity a lot here with the merger, can Neville provide some kind of timeline as to the goals on speed as we move through 2020 and beyond with 5G? What speeds can consumers expect in the near, mid, and long term? Neville?
Yeah, super quick. We've talked about with the 5G foundational layer we're rolling out this year, folks will start to see speeds on LTE double in most areas. Peaks will be certainly improved too, moving north of into the 100 Mbps range, especially in the early rollouts. If you look at the kind of five-year program of network build, obviously we're looking to bring as much benefit as we can early in the program. Completing our 600 rollout, and then as fast as we can, rolling out the 2.5 gig spectrum for 5G across a large and material site base. That's very front-ended in the plan, and that will certainly drive an early rise in speeds. The speeds that John and Mike talked about will be perfected over the time of the program, but we'll see hundreds of megabit averages in the early running.
To give you a quick flavor of how ready we are, we literally have thousands of T-Mobile sites ready today as soon as we have the approval whereby we can start deploying two and a half gig spectrum for 5G and start building out this layer cake on top of the low-band that we've already laid down in those areas. We're ready to run. We're waiting for the okay. As soon as we have it, we will be laying down a lot more spectrum and speeds will markedly improve even in the first 12 months of this program.
Do you have anybody else? Okay. Should we take one more here or?
Phone.
Anybody got one?
Take the phone, and then one more on Twitter, maybe.
Okay, operator, we'll take one last question. Did we lose the operator?
Hello, we'll take our last question from Sascha Segan of PCMag.
Hi, guys. I absolutely have faith that John and Mike and Neville are devoted to this strategy and to the Un-carrier plans that you guys have followed. Companies are not men, and new leadership can adopt new strategies. What guarantees are you putting down that either you guys will stay to see the length of this strategy through, or that the company is committing to the strategy in the long term in a way that, for instance, a new CEO could not make a U-turn on?
Great question, Sascha. Thank you for that. I'm sure a couple things. One is, you know our company and you know our culture, and you know that the company and the culture is not about me or Mike or Neville, that's why we're happy to show you not only these men, but this woman leader of our organization. The new T-Mobile's culture and plans are deep and committed to, are part of who we are. To do anything other than that would be a disgrace. I have certainly know Mike's about 20 years younger than me, I think you can probably lock him in through the whole 5G analysis. I would say Mike and I, Neville, Braxton, this full team are very committed to this, as is our board.
You have that from us as individuals and in the culture of the company that we're creating.
This is a strategy any team would pursue with this set of assets. The bottom line is when you put these two companies together and you have capacity like this, it's very obvious what you do with it. We've got this massive stadium and it's mostly empty. You fill it up. Any management team would fill that stadium up, bring more competition to AT&T and Verizon, lower prices, take their customers, and generate revenues that way. That's the business plan that we put out last April, and it wasn't just because we were behind it. It was because that's what any team would do to maximize their business performance with this set of assets.
Right. That last thing I'd say, Sascha, is we have made tangible, significant commitments to the federal government about all that we're going to do with serious penalties on behalf of the shareholders of this company if we do not perform. That build and those capabilities are very clear. Today is just another start of showing what are we going to do with all that capability that we have. I'm sure you'll be watching closely. If you could just change your logo a little bit on your Twitter handle I'll be able to look at it more closely. All right, operator, that's all the time we have for questions. Janice, anything for closing?
No, I think if you have additional questions, please feel free to send them to us on Twitter and use the hashtag #NewTMobile and we'll follow up.
Okay. Thanks for joining, everybody.
Thanks, everybody.
Thanks.
Thank you.
Thank you.