T-Mobile (TMUS) is continually investing in capex (capital expenditure) to improve its network. By deploying more low-band spectrum, it continues to enhance its network. In 2Q17, it spent ~$1.3 billion on cash capex, excluding capitalized interest.
During the Goldman Sachs Communacopia Conference on September 14, 2017, Braxton Carter, T-Mobile’s chief financial officer, spoke about the company’s capex. He said, “As we expand geographically, we will certainly incur more capital and OpEx associated with that geographical expansion. But there’s a huge prize, penetration into the 1/3 of the country where we essentially have no penetration today. But we see no step-function increase in the capital profile.”
Expected capex investments in 2017
T-Mobile’s management foresees its cash capex coming in at the very high end of its $4.8 billion–$5.1 billion guidance range for 2017, excluding capitalized interest, given its initial 600 MHz (megahertz) rollout. In comparison, Verizon (VZ) forecasts capex of $16.8 billion–$17.5 billion in 2017, whereas AT&T (T) expects to spend approximately $22.0 billion on capex. Sprint (S) foresees its cash capex at $3.5 billion–$4.0 billion for fiscal 2017 (year ended March 2018), excluding devices leased through indirect channels.