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. And 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 7 years, the Un carrier has driven every big change in wireless. But 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. But 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.
And 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 5 gs 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. And that's why we're calling this set of moves today 5 gs for good. We want everyone to see what this supercharged uncarrier can do with this supercharged uncarrier network.
Frankly, we just couldn't wait any longer to share our plans.
And 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 5 gs network will become together with Sprint. It's not just 1 +1 equals 2 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 5 gs. That's because T Mobile is starting by covering 200,000,000 people later this year with a broad 5 gs foundation on T Mobile's 600 megahertz spectrum. Did you hear that? This year, we're excited to announce that T Mobile's 5 gs launch is slated for December 6. And when we launch, we launch big, straight national with 200,000,000 people covered on day 1.
We're starting with 2 great devices available nationwide, the Samsung Note 10 plus 5 gs and the OnePlus 7T Pro 5 gs, and many more mainstream devices are on the way next year. And that is totally different from what the carriers are doing.
AT and T started in 5 gs by lying to customers. 5 gsE, it's not a thing. Almost a year later, consumers still can't get real 5 gs from AT and T. Verizon at least has launched 5 gs in parts of 15 cities. That's just so adorable.
We'll cover more than 5,000 cities and towns across the country with 5 gs this year. You can find where our coverage is on tdashmobile.com. Yes, we have maps, but you can't find where AT and T and Verizon 5 gs is because they won't tell you. They won't publish 5 gs maps, and there's a reason they won't. They're embarrassed by just how small their 5 gs networks are.
Instead, Verizon's spending 1,000,000 advertising about their 5 gs in, and I quote, parts of the seating areas of a handful of NFL stadiums and concert arenas. Now think about that for a minute. 1st, 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 friggin' building, and 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. And if the average American is lucky enough to go to 1 football game in a year in one of these specific stadiums and just happens to be seated in one of these mystery 5 gs sections, that customer ends up getting about 3 hours of 5 gs coverage total, all year long, a whopping 0.03% of their entire year. I did the math. So you pay Verizon more for the 5 gs phone, more for the 5 gs plan, and you get 5 gs coverage 0.03 percent of your year.
That works out to paying about $2.23 for every hour you'll get a 5 gs signal, if you're lucky enough to get tickets in a mystery 5 gs section. And to get out of this dilemma to launch 5 gs that actually covers any meaningful area or hell, 5 gs 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, and they're trying to advertise their way out
of it. Exactly. Together with Sprint, we're the only ones who can build 5 gs 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. And all that capacity means very good things. I mean, just wrap your head around this. The combined New T Mobile network will be crazy fast, 4 50 megabits per second fast by 2024.
Let me underscore that. LTE speeds today are around 25 to 40 megabits per second. So 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 miles an hour to more than 600 miles an hour. It will open up so many new use cases for our connected lives.
And not only will it be crazy fast, it will be crazy fast for almost everyone. We'll cover 9 in 10 people
in this country with at least 100 megabits per second. Think about that. More than 90% of Americans with 100 megabits per second. 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.
And 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 5 gs. And 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 5 gs for good. Today's moves are focused on areas where fast reliable service can change lives for the most deserving and underserved among us. And to start things off, who's more deserving than our nation's first responders? In times of crisis, the ability addressing the emergency is everything.
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 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. 1st responders see it all. They fight it all. They help us all.
1st responders are under more pressure than ever before. With the 5 gs 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 5 gs service from the New T Mobile to our local heroes. We're talking about connecting every public and non profit 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 $7,700,000,000 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 5 gs for good. 1st responders could have chosen to do anything, but they chose to keep us safe.
So 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. And 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 tdashmobile.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. So please go sign up. And that's just the first multibillion dollar investment we've got to announce today.
The second part of 5 gs for good takes on a massive pain point with an equally massive solution. There are 35,000,000 households in this country with children. And of those, about 15% have no home Internet. So 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, and 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 and 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 1 or even 0 options for high speed home Internet over 100 megabits per second.
And that means affordable home Internet is simply out of reach for society's most vulnerable. And in a time when full participation in the digital profits and governmental bodies far and wide have tried to chip away at the homework gap. We even have our own effort as does Sprint. The 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 we've 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 its 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 it's heartbreaking. It's sad because it doesn't need to be.
Innovative technology should improve the
end of the year.
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.
Today, I'm honored to announce Project 10,000,000, a program that will connect 10,000,000 households over 5 years for free. This is a $10,000,000,000 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, and education is supposed to be the great leveler in America. If you work hard, you can get ahead.
Yet 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, and it's not okay, and 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 125,000,000 households total in this country and only 35,000,000 with kids. We'll reach nearly 1 third of households with kids with Project 10,000,000, 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 friggin' 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 10,000,000 includes completely free service, 100 gigs 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 10,000,000 households. And once it's activated, it's theirs. They keep getting access for 5 years free of charge. And 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 1,000,000.
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. Again, that is what we mean by using 5 gs 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. So 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 and T and Verizon and Comcast and Charter after we launched the New T Mobile. But people understandably want to know what increased competition and lower prices really looks like. So 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 2 gigabytes of high speed data. $15, 1.5.
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.
And we're committing that slashed price will stay slashed for at least 5 years. Not only that, T Mobile Connect is the 1st 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. So with T Mobile Connect, you pay the same, but you get an additional 500 megabytes of high speed data per month every year for at least 5 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 5 years, you'll still pay just $15 a month, but now you're getting more than twice the high speed data.
And if you've got a 5 gs phone, you can access 5 gs too. It's included at no extra charge, dollars 15 for 5 gs. 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. But 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 and 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 and 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 5 gs for good.
Look, I know this has been a lot, so let me quickly recap what the New T Mobile will do. Move number 1, Connecting Heroes, a 10 year initiative to support all of our nation's first responders with free 5 gs access. For every single public and non profit state and local police buyer and EMS agency and put up to $7,700,000,000 back in their budgets. Move 2, Project 10,000,000, an unprecedented commitment to connect 10,000,000 households for free, backed by a $10,000,000,000 investment. With the resources and scale behind Project 10,000,000, we're aiming to do something that's never been dared before, ending the homework gap and ensuring every child in America is connected.
And move 3, T Mobile Connect, $15 for 5 gs 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 5 gs for good. This is the uncarrier supercharged. We're not playing the game, we're changing the game.
And of course, we won't stop. Now check out this closing video and then Mike and I will be back live to answer questions in just a minute.
Hey, everyone. Welcome back. Sorry for that delay. Janice Kaffner, Head of Communications and Community Engagement here, and we're coming to you live from New York City. We're heading to the Q and 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 Siebert, President and COO Matt Staniff, our EVP and Chief Marketing Officer John Fryer, our EVP of Consumer Markets and Mike Katz, our EVP of T Mobile for Business. Before we jump into our Q and 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 ks and our quarterly report on Form 10 Q. In addition, in connection with the proposed transaction, on July 30, 20 18, we filed a registration statement on Form S-four with the SEC related to the merger.
The registration statement became effective on October 29, 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. John?
Well, and 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 5 gs. Neville, you're with us?
Am I going now?
No, you can't. We're going to go to questions, but 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 uncarrier 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. And 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. So 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.
Hi, Sarah.
Hi, there. Do you have any assurances from the state's meetings on the law to you that this package will
Yes. Kate, so let's 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. So 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.
So we figured we'd get going and start announcing them. At the same time, we're prepared for a litigation on December 9 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, 2 federal agencies that are in charge of reviewing these. And 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 5 gs network, how much of the country we will cover with 5 gs, 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. And then we started to 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, but that's their right. We've been meeting with many, many states, including New York where we are today, and hearing what's important for them. We haven't 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? So indirectly, I would say, these answers are all part of the things that are critical to them. And I will tell you that I did send a letter this morning to various attorneys, including Attorney General James in New York saying, Hey, here's some other things that are going on that might be pertinent. And 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 this first responders. Think about what's happening with the education gap. And look at all these things and look at the commitments that we have made. And 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.
Good morning, everybody.
So 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, etcetera, happen if this merger doesn't go through? Is this an all or nothing type of, I guess, announcement?
Yes. Let's Mike, do you want to start?
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 stand alone 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. And that's really what we were announcing today. Our values, our supercharged uncarrier ideals taken to the next level by the capabilities of
this merger. Yes, Eli, this isn't I don't want we don't want this to sound like a threat. What's happening, and we've said it a few times, we've said it in the video, is putting this company and these networks together, 1 +1equals14. It truly does. That $60,000,000,000 that we'll be investing in our network and 5 gs capabilities.
We will have 14x the capacity of the current standalone T Mobile. Now 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. So it's not that we're saying we won't. We couldn't. Nobody could.
But there's magic in putting these two networks together and that's why this critically important. And I wanted to make sure everybody could see right when it comes together what we're going to do. And 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 is going to play.
Next question?
Thank you. We'll take our next question from Ed Beg of USA TODAY. Obviously, proof is in the pudding with details on some of this. So can you give us some indication of how someone, particularly on the homework gap plan, would qualify? For low income people, I gather, what's sort of the threshold there?
Yes, absolutely. Matt, do you want to kick it off?
I did want to start by clarifying, because there was a question to Ed, that USA TODAY reporters are not seen as first responders. I just wanted to make that clear.
Ed, thanks for the question. Let me first start and talk a little bit about this Homer Gap initiative. There's 35,000,000 households in the U. S. With kids in school.
This is K-twelve. 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 and going after families that can't afford the access they need to get online. 7 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 $10,000,000 that's why it's called the project $10,000,000 is over the next 5 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 free opportunity for service for this.
What we want to do is we also want to do it right. So 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. So 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 in the homework app with this initiative.
And Matt, a couple of things we have decided. First of all, the 10,000,000 units will be allocated to each state on a population basis, so percent of total national population. So that's the starting point for each state out of the 10,000,000 units. And 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 there are families that don't meet a certain income threshold and who are under connected.
And so 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.
Yes. It's Yes, 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? Well, our real answer is, you tell us. What we want to do is we want to work with you for you to tell us where we know who needs it.
You show us where they are and we'll jointly figure out a way to get this in their hand. But 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. And for me, it gives me chills because we really can do it. And so together, we're going to find out exactly how to do it, but 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.
And 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. I hope the AGs were watching for your benefit. The question I have, since you'll have nationwide 5 gs by the end of the year, is there going to be an additional fee for that service?
Will it be a premium year?
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. And 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. So thank you for pointing that out.
And 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 5 gs item, Mike, if you can even remember what he said.
It's very simple. No, no. And 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 5 gs, except we put a credit, maybe, that kind of stuff. We're not doing that. Our offers will include 5 gs access, and that's how we intend to go forward.
And by the way, we will have capabilities in the future to offer more as these as speeds build and the network becomes more higher capacity and higher speed. But the 5 gs itself that we'll be launching on December 6, absolutely not. It'll be our existing plans will automatically qualify you for that service.
Scott, tell the truth. Do you have 5 gsE? There you go. Stump them. Stump them.
Thank you. We'll take our next question from David Shepherson 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?
Yes. Thanks, Dave, for the question. There have been a lot of misunderstanding about that. And I'll just clarify a few points on that. So 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. And 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. But if you're going to extend it to another date, you need to take action and amend the BCA. So what I can say is, yes, we are having discussions as partners about whether and how long we move forward the date. And I would say that in a period in which we are full together moving forward to get this deal approved and what, if any, items should be agreed between the parties in exchange for agreeing to extend those terms. So yes, we are having conversations and discussions.
But 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. So I hope that's helpful.
John, would that include potentially renegotiating the price, the valuation?
Yes. I'm not going to get into the actual terms. But the question is, okay, so November 1 came and went. And 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? And 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, etcetera? So it's a broad array of things, very partnership oriented. And as soon as we have light of day on that, I'm sure we'll put that out. And it shouldn't be too far out in the future. But it's a positive conversation, and 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 could you'd be allowed to raise prices?
I mean, what is there something specific the AGs want that you think you could give them to head off this legal challenge?
First of all, and 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 win, what do they get?
And if we settle or if we lose, what happens? Well, listen, dollars 60,000,000,000 to build the 5 gs network that no country on earth has will not happen. We've committed by year to the penetration points on 5 gs, rural coverage, competition and in home broadband, pricing protections, along with these new items, we've done great, 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. So if you compare all those things to Sprint, who's struggling, I think that's not being disrespectful to our partner. But 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.
And the combination of those 2 continuing, as you saw today, to make AT and T and Verizon wake up and perform. So 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. So 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 because I think this is too important for this country and too important for Americans to let this go on much further. But thank you for the question. That's the conversation. And if there is more, we're ready to consider it.
And John, do you think how about if we go to the operator, we'll go to the Twitter feed for a couple of minutes and take a couple 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? John Fryer.
Yes, you bet. So Tiffany, the short answer is it's available for anyone. It's not just for low income families, but it's available for anyone. And like Mike said just a few moments ago, when you contrast this launch next to what Verizon did, so Verizon earlier this year announced some portions of some areas of 2 cities for 5 gs. And there was a $10 price increase with that.
What we're announcing today is 5 gs nationwide in standalone T Mobile and of course, a deeper, broader high capacity network within New T Mobile for just $15 a month. And that's half off what 50% off from our lowest price plan that we have today. So for families that are struggling to figure out how 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. And so for $15 a month, and then of course with the annual data upgrade, another 500 megabytes per year in terms of increasing that plan, but it's available for not only folks with economic disadvantages, but it's available for anyone and everyone in this country.
And I think, let's again, let's what is it we 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. And you know 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 carriers. So 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 Carey, I'm not sure.
It's hey Johnledger. I've had Sprint in the past and the speeds were embarrassing. 1 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
think I'm
going to throw it to Neville?
Yes. And we have Neville online. And Neville, while you're answering a network question, we also have Sasha Sagan, who is asking, how are you going to get 100 megabits per second home Internet to rural America with only 31 megahertz of 600 spectrum, which doesn't have that capacity. So Sasha might be thinking we're talking about standalone. So how about talking about how the new network comes together for both of those tweets?
Yes. Thanks, Mike. Good morning, everybody. Obviously, nobody more excited than me about what we're going to do with the New T Mobile. Thank you, team.
They're 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. So 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. So if you think about the low band spectrum that Sasha mentioned, we have 600 megahertz, which is the base layer, the foundational layer of the New T Mobile network. And 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.
So finally, we start to see breadth and capabilities of 5 gs in a way that nobody has been able to offer today here in the U. S. But 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 gigahertz spectrum that Sprint has. And on top of that, we then move to millimeter wave deployments, which we've already made some of They're in New York, for example, and millimeter wave will go on top of this wonderful thing we call the layer cake.
And it's the combination of those spectrum assets, low, mid 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. And there will be rural areas where we will deploy absolutely low and mid band assets to address Sasha's question. And across the U. S, you're going to see an incredible this kind of 10x plus 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 3 times increase on those sites compared to T Mobile today of the sub-six gigahertz spectrum, the mid and low band and the injection of 5 gs spectral efficiency, a more efficient and better bit pipe. And 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. And if you don't believe our math, then I can tell you we've 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. And 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. A truly incredible 5 gs experience and coming way faster than anything else that we see out there in the U. S. In the medium to near to medium term.
I'll stop there, John. Sorry for being long.
Yes. Thank you, Neville. And I think everybody was on this call. You all are the beneficiaries of 7 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. And over those years, Neville has used train analogies, highway analogies, and now he's taken 5 gs and distilled it down to a layer cake approach.
And 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.
We'll take our next question from Diana Gilbert of Mobile World Life.
Live. I also asked this on Twitter, but I was wondering if you could talk a little bit more about the Connecting Heroes program. Obviously, AT and T is kind of really involved in the space in terms of FirstNet. So are you positioning this as a sort of FirstNet competitor? Or is this more of just kind of an individual benefit for first responders?
And if it is the FirstNet competitor, can you talk about how you're going to ensure reliability on the 5 gs network? Thank you.
Okay. I can start. No, we it's not a FirstNet competitor, it's an AT and T competitor. We applaud FirstNet and the initiative behind it. But the bottom line is AT and T won that bid, and they're planning to monetize our first responder community by overcharging them.
And our view is the new T Mobile brings competition to everybody, and that means bringing competition in this space to AT and T. And 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.
Yes. And the fact is over 75% of first responder agencies report that they have a budget shortfall. And oftentimes, way too often, we hear that, that causes a trade off on critical life saving equipment or wireless. And 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.
And too many of these agencies don't have wireless, and that's exactly what this initiative is going after. If all agencies take it up, it allows us to put over $7,000,000,000 back into the budgets of agencies that they can spend on other life saving equipment.
And for all of us, this is the most important connection in our lives, right? Our own connection is important. But when lives are on the line, the connections for our first responders are even more important.
So but there is a message here. Let's remind ourselves 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. So 100%, we urge AT and 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 $43,000,000,000 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. So AT and T, I agree. First responders should be treated as heroes.
So 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 customers that really need your help. And if not, they know where they can come, and we are going to love having them here. Okay. Did you yes, go ahead.
Sorry, could you just address the reliability question then, since 5 gs is kind of a new technology? I mean, I think reliability, especially for first responders, is a huge question.
Well, it goes back to the same issue. This new company with its $43,000,000,000 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 $60,000,000,000 budget over the next few years. That's incredible.
So 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. So hardening the network, making it increasingly reliable over the years, those continue to be priorities for ours. 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.
Yes. Let's keep in mind, no, that's not what this call is totally about. But with the work that Neville has done already in what others are calling 5 gsE or advanced 4 gs LTE, we cover the same blanket footprint of the other place. We cover the entire country, right? We have a satisfaction rate on our network that is very high.
Now when you move forward with the $60,000,000,000 of network investment in the creation of the 5 gs, 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 5 gs network, right? So we've got the synergies and the capital, the commitments that we've made to the FCC to make this a blanket set of capabilities. And AT and T and Verizon absolutely do not have a full 5 gs 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.
So I will put our current network and our 5 gs plan as the most important reason why first responders should be with T Mobile.
And 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,
yes, I mean absolutely. I mean this is exactly the use case that this program was designed for. And unfortunately, like I said before, too many agencies find themselves in that position, and that's exactly what this initiative is looking to address.
We want to make sure we stick with it because that is I can see I love these questions because you have some groups who clearly are the 1st responders that are saving people every day. And yes, even if you didn't have a budget for it, this is for you. If you're a 1st responder organization who has a very small budget, you can save that portion of your budget by getting this capability and we will be so proud for you to reallocate that to other life saving requirements within your organization. And it's most, most important in what you're talking about, a small local organization that needs help. So 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 PalmSky.
Yes. 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, And we could get all that done pretty fast here. If you get the right few people together, little conversations, little paperwork, we can get this going fast, 1st responder, the whole deal. I'm ready.
And Philip, we're getting a lot of the same kinds of questions online as well about availability. All these things are things that 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, but this is one that 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.
And 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 and T and Verizon they've never seen, and we wanted to surprise them. But circumstances just made it right that it's time for us to start talking about what we plan to do anyway.
So 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. But 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, right? The new company is here and we're just anxious to put it out there. Now on the other hand, the reason I've been open to having the conversation with you about potentially selling is because the things that the states want, and get 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?
We'll take our next question from Brian Koenig of Law 360.
Good morning. Obviously, you managed to cut deals with the states as part of the coalition's failing 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 commitments that had already been made on the national level. So wondering what the difference was and what the calculations are going forward as you talk to other states and potentially cut other deals?
Yes. We've 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, etcetera, who support the transaction. And now we are discussing with the litigant parties, those that are involved.
And frankly, settlement, 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 5 gs? 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? And 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.
And by the way, we're willing to let you have enforcement capability over that because 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.
And then we step back and we move on. But 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, right? And 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. And 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 the state about job protections. We've made commitments here about build out, what we're going to do. And certainly, all of what you're talking about here today will accrete heavily to the citizens here of New York.
So 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 and 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 Okay. You want to 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 VNOs? It's really not about sets of towers. It's about taking all those assets and creating 1 combined network using the assets of both companies.
And that's what allows it to unlock all that capacity. It's not taking 1 plus 1 and making both available. It's taking the resources of the 2 and creating something truly great because of how the resources of the company just happen to be so complementary. So it happened the benefits start to roll in right away. It's about a 3 year process before the kinds of numbers we've talked about are fully delivered and 5 or 6 before the end state.
But the benefits start to roll in for customers right away.
By the way, that Twitter came in from somebody whose name was Ledger's ghost. The sign was John Doe. The picture was a dog. I don't want to say anything, but I'm thinking it was Hans Vestberg. Just say it, it's got to be, right?
Hans, you can ask questions directly. I know you got a lot of questions over Verizon, but you don't have to make up a fake Twitter handle. I'm here for you, dude. Okay, operator?
We'll take our next question from Nabil 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? I mean, obviously Sprint has continued to deteriorate.
Yes. No, a couple of things. And 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. And 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. And obviously, there's many ways to do that and it could be any of the ones that you're talking about. But 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. Because remember, nothing happens, right? The process goes forward. You just have 2 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.
So 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 time frame that you're targeting for the end of those discussions?
Hopefully as close to when it ended on November 1 as possible.
And if
I 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 like getting them to the table to talk about a settlement?
Well, of course, there's quite a few. And 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 and we've had many follow-up conversations And we as I'm disclosing, I don't think it's secret, we have made settlement proposals as ways to continue those conversations. There's not a one of the attorneys general, including the 2 major ones in New York California, who have said other than, we're interested and open to continuing to have discussions. They have a job to do.
They need to understand the potentials associated with competition, the impacts on the marketplace. But I think, as 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 9. I just continue to say we are extremely confident in our case. And so it's a matter of one way or the other, this new T Mobile is coming forward.
But 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. And then 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 PR DAILIES.
My call. I have a couple of questions. One is you talked about in the first responder plan, they'll be given the highest priority. Of course, AT and T has priority access and preemption as part of their offering for FirstNet and Verizon does as well. Are you committing to that?
And is there any limit at all in the data that the first responder could use that would be capped in any way or it would all be free?
Yes. Thanks, Paul. Those are great questions. So WPS is available today and it will continue to be available on the new plan. And 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.
So WPS is for voice, so I'm asking about data. Verizon and AT and T offer preemption and priority access to public safety for data. Are you offering that as part of your offering to first responders?
So the data will have the highest priority on our network with no throttling and no limits. Preemption is available across all three carriers.
So you're offering preemption to them as well. Is that correct?
Correct.
And then the other question I have is, you talked you both talked about 14 times capacity. I think when you first announced the merger, you said 8 times and you talked about $60,000,000,000 in spending on 5 gs. When you first announced the merger, you said $40,000,000,000 So why the change?
Is thank you for the potential gotcha questions. Yes, those are all logical questions. The $40,000,000,000 was an overall CapEx spend for 3 years. Dollars 60,000,000,000 is a network spend over 6 years. So they're both numbers that we have committed to.
Right now, we're speaking more pertinently about the spend on the 5 gs network capability and network, which is $60,000,000,000 dollars And the 8x, 14x, it's relative to the capacity versus whether it's the standalone T Mobile or the 2 standalone companies, etcetera. So I can give it to you every which way. What it is, is it's a shitload more capacity than any version you want to have. But 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. But that's generally what they are.
Does that make sense?
Yes. Thank you.
Okay. I hesitate to take the next question, operator. But 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 and just to get a sense of kind of the impact to your existing base, you've got loose customers that potentially are low usage. What is the mix of your overall base prepaid and postpaid that you think currently use 2 gig or less and 5 gig and less, I guess?
Yes. Well, I'm not going to unpack it for you in detail, but I can tell you a couple 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. You don't it's not an income qualified plan or anything like that. So that's how we do it at The Un carrier. And by the way, although we haven't talked about it a lot, there are 2 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, which to your point is a very mainstream usage scenario that again is still lower than our previous lowest price.
So mainstream 5 gigs at a lower price, dollars 25 than we've ever offered talk, text and data for. It's pretty amazing. And then with the annual data upgrade, both of those move each year. So in the 2nd year, there's a 0.5 gig more per month on each of those two plans. So 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. And so 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. So there's no change to our synergies nor to our long term aspirations and financial outlooks that we've previously talked about.
Got it. So in Roger's article where he talked about this like $7,000,000,000 cost on the or I guess he didn't phrase it as a cost, but he said benefit to public safety. And again, the rate plans you just outlined compared to like $35 for 3 gig at boost, obviously, less than what the cable operators are even charging. So 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. So there's no difference in revenue or EBITDA.
Is that the kind of logic behind this?
Well, a couple of 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, 5 gs for good to reinforce our values. But 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 7 years of what it's like to do initiatives that are good and that also draw attention to our brand.
And as we've grown more confident in that, we've been able to forecast the effects of that. So 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. But separately, within these communities, this is just a chance for us to go do something really powerful.
And we have the capacity. And so why shouldn't we allocate some of it to something this significant?
So that's only a 2 question limit today for Buzz Lightyear. We'll get him next time. Thanks, Buzz. So there's one I'm going to do one on Twitter and do one on the phone, then we're going to wrap up. But 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.
While 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 5 gs? What speeds can consumers expect in the near, mid and long term? Neville?
Yes, so super quick. So we've talked about with the 5 gs 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 mips range, especially in the early rollouts. If you look at the kind of 5 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 5 gs across a large and material site base. So 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. And 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 2.5 gig spectrum for 5 gs and start building out this layer cake on top of the low band that we've already laid down in those areas. So we're ready to run. We're waiting for the okay. And as soon as we have it, we will be laying down a lot more spectrum and speeds will markedly improve even in the 1st 12 months of this program.
Do you have anybody else? Sasha? Okay. Should we take one more here or 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?
We'll take our last question from Sansa Sheikin of P. C. Mag.
Hi, guys. So I absolutely have faith that John and Mike and Neville are devoted to this strategy and to the uncarrier plans that you guys have followed. But 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 the way that, for couple of 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. And 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 and are part of who we are and to do anything other than that would be a disgrace. And I have certainly no Mike's about 20 years younger than me. So I think you can probably lock him in through the whole 5 gs analysis.
But I would say, Mike and I and Neville and Braxton and this full team are very committed to this, as is our Board. And you have that from us as individuals and in the culture of the company that
we're in. That's a strategy any team would pursue with this set of assets. The bottom line is when you put these 2 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 and 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, Sasha, 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. So 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, 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 New T Mobile and we'll follow-up.
Okay. Thanks for joining everybody.
Thanks everybody. Thank you.