Ericsson and Nokia Siemens Networks on Board for Network Modernization and LTE Deployment; America’s Largest 4G Network Continues to Expand to New Markets
New Orleans — May. 7, 2012
Today, T-Mobile USA, Inc. announced multi-year agreements with Ericsson and Nokia Siemens Networks (NSN) to support T-Mobile’s $4 billion 4G network evolution plan, including network modernization and deployment of long term evolution (LTE) service in 20131.
As part of the agreements, Ericsson and Nokia Siemens Networks will provide and install state of the art, Release 10 capable equipment at 37,000 cell sites across T-Mobile’s 4G network, increasing signal quality and enhancing performance beginning in 2012. T-Mobile also expects to be the first carrier in North America to broadly deploy antenna integrated radios, enabling accelerated deployment and reduced site loading.
Last week, T-Mobile secured the AWS spectrum licenses from AT&T which were agreed to as part of the breakup of the proposed merger between the two companies. This new spectrum, in addition to the refarming effort, enables the launch of LTE in AWS spectrum and up to 20 MHz of LTE in 75% of the top 25 markets.
“We’re making great progress on our four billion dollar 4G network transformation,” said Neville Ray, chief technology officer, T-Mobile USA. “With these partners on board and the AT&T AWS spectrum secured, we’re on track to enhance our 4G experience this year and deliver nationwide LTE in 2013.”
The company’s timing for LTE allows T-Mobile to take advantage of the latest and most advanced LTE technology infrastructure, improving the overall capacity and performance of its 4G network, while optimizing the company’s spectrum resources. T-Mobile will also apply deep LTE technology experience gained from its parent, Deutsche Telekom, a recognized global leader in LTE development and standardization.
As part of the company’s network modernization effort, T-Mobile also plans to launch 4G HSPA+ service in the 1900 MHz band in a large number of markets by the end of the year. Network modernization trials have shown up to a 33 percent increase in HSPA+ data speeds as well as improved in-building coverage. Rolling out 4G HSPA+ services in the 1900 MHz band will also provide customers with the ability to use a broader range of devices, including the iPhone, on T-Mobile’s 4G network.
T-Mobile also announced that its nationwide HSPA+ network has expanded to deliver a competitive 4G experience to well over 220 million people in 229 markets. In addition to an expanding 4G footprint, the 4G experience T-Mobile provides is pervasive among its customer base.
“In contrast to our competitors, nearly half of T-Mobile’s postpaid smartphone customers are using a 4G device,” said Ray. “Not only are we delivering a fast 4G experience to a higher percentage of our customers, we’re also making it more affordable to step up to 4G. Whether you’re purchasing one of our latest 4G superphones – or bringing your own device, you can get better value with T-Mobile.”
Beginning today, customers in Little Rock, Ark.; Hattiesburg, Miss.; Springfield, Mo. and Madison, Wis. can experience the fast speeds available on America’s Largest 4G Network. Customers in Fayetteville and Little Rock, Ark.; Lake Charles, La. and Springfield, Mo. can experience the faster speeds offered by our HSPA+ 42 network with devices such as the recently launched HTC One™ S. Current customers are experiencing average speeds approaching 8 Mbps with peaks up to 22 Mbps using T-Mobile’s HTC One S.
About T-Mobile USA:
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the fourth quarter of 2011, approximately 129 million mobile customers were served by the mobile communication segments of the Deutsche Telekom group — 33.2 million by T-Mobile USA — all via a common technology platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42. T-Mobile USA’s innovative wireless products and services help empower people to connect to those who matter most. Multiple independent research studies continue to rank T-Mobile USA among the highest in numerous regions throughout the U.S. in wireless customer care and call quality. For more information, please visit http://www.T-Mobile.com. T-Mobile is a federally registered trademark of Deutsche Telekom AG. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations. 1 LTE launch assumes successful refarming of spectrum. Need remains for additional spectrum for broader/deeper LTE deployment. Forward-Looking Statements This press release contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements may include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labour or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favourable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise. In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.