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T-Mobile’s Capex Plans for 2019

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T-Mobile’s capital expenditures

T-Mobile (TMUS), the third-largest US wireless carrier, has been continuously investing in capex to improve its network. In the first quarter, T-Mobile spent $1.8 billion on cash capex, excluding capitalized interest, compared to $1.3 billion in the first quarter of 2018 and $1.1 billion in the fourth quarter of 2018.

The sequential and year-over-year increase was mainly due to growth in the network build. T-Mobile continued the deployment of the 600 MHz low-band spectrum and started laying the groundwork for 5G technology.

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Expected capex investments in 2019

T-Mobile expects its cash capex for 2019, excluding capitalized interest of $400 million, to be $5.4 billion–$5.7 billion. The target includes expenditures for 600 MHz and 5G deployment. In fiscal 2018, T-Mobile spent $5.2 billion on cash capex excluding capitalized interest.

In comparison, AT&T (T) expects its gross capex to be in the $23.0 billion range.

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