T-Mobile US Annual Report 2013

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FY2013 Annual Report · T-Mobile US

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Annual Report to Stockholders 2013

What a
difference
a year makes.

The
Un-carrier
Revolution

T-Mobile tackled consumer pain points
and rewrote the rules of wireless.

MARCH 2013
PUT AN END TO ANNUAL
SERVICE CONTRACTS.

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Consumers hate long-term service
contracts, costly overages and complicated
service plans. So T-Mobile got rid of them.
Our Simple Choice plan provides unlimited
everything, without an annual service
contract, with simple, straightforward pricing.

Mobile has changed the world
in profound ways. What insanity
it would be to not change with it.

MAY 2013
T-MOBILE AND METROPCS
JOINED FORCES: THE
UN-CARRIER WENT PUBLIC.

APRIL 2013
T-MOBILE
UNLEASHED iPHONE.®

T-Mobile gave consumers what they
want: a radically simple, affordable
iPhone experience on a blazing-fast,
truly reliable 4G nationwide network.

The new T-Mobile US, Inc. was formed
through the combination of T-Mobile and
MetroPCS, and began trading on the
New York Stock Exchange under the
ticker TMUS on May 1, 2013 — creating
an even stronger disruptive force in the
U.S. wireless market.

OCTOBER 2013
MADE THE WORLD
YOUR NETWORK —
AT NO EXTRA CHARGE.

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JULY 2013
INTRODUCED JUMP!
UPGRADE WHEN
YOU WANT, NOT WHEN
YOU ARE TOLD.

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Nobody wants to be stuck with an old
phone. That’s why T-Mobile launched
JUMP!, the best upgrade program on the
market. It’s a groundbreaking approach
to more frequent phone upgrades,
putting an end to the upgrade runaround.

Everyone should be free to travel without
sky-high international roaming fees.
T-Mobile customers get unlimited data
in 120+ countries and destinations at
no extra charge. And here in the U.S.,
T-Mobile announced it had delivered
nationwide 4G LTE covering more than
200 million people in 233 metro areas
coast to coast.

People don’t need another wireless
carrier that has modeled itself after
a utility company.

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OCTOBER 2013
UNLEASHED
TABLETS WITH FREE
DATA FOR LIFE.

NOVEMBER 2013
EXPANDED METROPCS
MARKETS.

per
month

Get
200MB
FREE
DATA for
LIFE
with your tablet

MetroPCS aggressively expanded,
adding 15 new metropolitan areas,
tripling its reach to 45 markets across
the United States just six months after
the T-Mobile-MetroPCS combination.

T-Mobile revolutionized how
customers buy and use tablets —
with free data for life. Customers
get 200 MB of free data every
month with any tablet. T-Mobile
also announced it would carry the
iPad® Air™ and iPad mini,™ beginning
in November, starting at $0 down.

We are the Un-carrier. Un-willing to play
by ridiculous rules. Un-satisfied with the
status quo. Un-afraid to innovate.

JANUARY 2014
INTRODUCED
CONTRACT FREEDOM
FOR FAMILIES.

The last barrier to switch to T-Mobile
comes down. T-Mobile set consumers
free from being locked into other carriers’
contracts. We will pay an entire family’s
Early Termination Fees so they can come
to the Un-carrier.

JANUARY 2014
NOW THE FASTEST
4G LTE IN THE NATION.

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Millions of speed tests from real
people using their own phones prove it:
T-Mobile’s nationwide 4G LTE network
is the fastest network in the nation.

We gained 4.4 million new customers
in 2013, and we became the fastest-
growing wireless company in the U.S.

AND WE’RE JUST GETTING STARTED.

John Legere @JohnLegere • Apr 24

Told ya we were going to change the
industry with #uncarrier! #nailedit
T-Mobile.com/UnCarrierYear1

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2013
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from

Commission File Number: 1-33409

T-MOBILE US, INC.

DELAWARE
(State of incorporation)

12920 SE 38th Street, Bellevue, Washington
(Address of principal executive offices)

20-0836269
(I.R.S. Employer Identification No.)

98006-1350
(Zip Code)

(425) 378-4000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class
Common Stock, $0.00001 par value per share

Name of Each Exchange on Which Registered
NYSE

Securities registered pursuant to Section 12(g) of the Act:
None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months
(or for such shorter period that the registrant was required to submit and post such files). Yes

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this Form 10-K.

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting
company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange
Act.
Large accelerated filer
Non-accelerated filer

Accelerated filer
Smaller reporting company

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes

As of June 28, 2013, the aggregate market value of the registrant’s common stock held by non-affiliates of the registrant was $4.3 billion
based on the closing sale price as reported on the NYSE. As of January 31, 2014, there were 802,454,478 shares of common stock
outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Part III of this Annual Report on Form 10-K incorporates by reference certain portions of the definitive Proxy Statement for the registrant’s
Annual Meeting of Stockholders, which definitive Proxy Statement shall be filed with the Securities and Exchange Commission within 120
days after the end of the fiscal year to which this Report relates.

T-Mobile US, Inc.
Form 10-K
For the Year Ended December 31, 2013

Table of Contents

Item 1.

Business

Item 1A. Risk Factors

Item 1B. Unresolved Staff Comments

Item 2.

Item 3.

Item 4.

Item 5.

Item 6.
Item 7.

Properties

Legal Proceedings

Mine Safety Disclosures

Market for Registrant’s Common Equity, Related Stockholder Matters and
Issuer Purchases of Equity Securities

Selected Financial Data
Management’s Discussion and Analysis of Financial Condition and Results
of Operations

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Item 8.
Item 9.

Financial Statements and Supplementary Data

Changes in and Disagreements With Accountants on Accounting and
Financial Disclosure

Item 9A. Controls and Procedures

Item 9B. Other Information

Item 10. Directors, Executive Officers and Corporate Governance

Item 11.
Item 12.

Executive Compensation

Security Ownership of Certain Beneficial Owners and Management and
Related Stockholder Matters

Item 13.

Certain Relationships and Related Transactions, and Director Independence

Item 14.

Principal Accounting Fees and Services

Item 15.

Exhibits and Financial Statement Schedules

SIGNATURES

INDEX TO EXHIBITS

PART I

PART II

PART III

PART IV

PART I.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements in this report include forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All statements, other than statements of historical fact, including information concerning our possible or
assumed future results of operations, are forward-looking statements. These forward-looking statements are generally
identified by the words “anticipates,” “believes,” “estimates,” “expects,” or similar expressions.

Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and
may cause actual results to differ materially from the forward-looking statements. The following important factors, along with
the Risk Factors included in Part I, Item 1A of this Form 10-K, could affect future results and cause those results to differ
materially from those expressed in the forward-looking statements:

•
•

•
•
•
•

adverse conditions in the U.S. and international economies or disruptions to the credit and financial markets;
competition in the wireless services market;
the ability to complete and realize expected synergies and other benefits of acquisitions;
the inability to implement our business strategies or ability to fund our wireless operations, including payment for
additional spectrum, network upgrades, and technological advancements;
the ability to renew our spectrum licenses on attractive terms or acquire new spectrum licenses;
the ability to manage growth in wireless data services, including network quality and acquisition of adequate spectrum
licenses at reasonable costs and terms;
• material changes in available technology;
•
•
•

the timing, scope and financial impact of our deployment of 4G Long-Term Evolution (“LTE”) technology;
the impact on our networks and business from major technology equipment failures;
breaches of network or information technology security, natural disasters or terrorist attacks or existing or future
litigation and any resulting financial impact not covered by insurance;
any changes in the regulatory environments in which we operate, including any increase in restrictions on the ability to
operate our networks;
any disruption of our key suppliers’ provisioning of products or services;

•
• material adverse changes in labor matters, including labor negotiations or additional organizing activity, and any

•

resulting financial and/or operational impact;
changes in accounting assumptions that regulatory agencies, including the Securities and Exchange Commission
(“SEC”), may require or that result from changes in the accounting rules or their application, which could result in an
impact on earnings; and,
changes in tax laws, regulations and existing standards and the resolution of disputes with any taxing jurisdictions.

•

Additional information concerning these and other risk factors is contained in the Risk Factors included in Part I, Item 1A of
this Form 10-K.

You should carefully read and consider the cautionary statements contained or referred to in this section in connection with any
subsequent written or oral forward-looking statements that may be issued by us or persons acting on our behalf, and all future
written and oral forward-looking statements attributable to us are expressly qualified in their entirety by the foregoing
cautionary statements.

Item 1. Business

Business Overview

In this Annual Report on Form 10-K (“Form 10-K” or “Report”), unless the context indicates otherwise, references to “T-
Mobile”, “T-Mobile US”, “our Company”, “the Company”, “we”, “our”, and “us” refer to T-Mobile US, Inc., a Delaware
corporation, and its wholly-owned subsidiaries. T-Mobile US, Inc. was originally incorporated as MetroPCS Communications,
Inc. (“MetroPCS”) in the State of Delaware in 2004. In connection with the business combination, described below, our name
was changed to “T-Mobile US, Inc.” on April 30, 2013. Our principal operating subsidiary, T-Mobile USA, Inc. (“T-Mobile
USA”) was formed in 1994 as VoiceStream Wireless PCS (“VoiceStream”), a subsidiary of Western Wireless Corporation
(“Western Wireless”). VoiceStream was spun off from Western Wireless in May 1999, acquired by Deutsche Telekom AG
(“Deutsche Telekom”) on May 31, 2001 and renamed T-Mobile USA, Inc. in July 2002.

T-Mobile is a national provider of mobile communications services with a network covering more than 280 million people
throughout the United States. Our objective is to be the simple choice for a better mobile life across all of our brands, including

T-Mobile, MetroPCS, and GoSmart. Our intent is to bring this proposition to life across our customer base of retail, wholesale
and business (“B2B”) customers through our owned and operated retail stores, third party distributors, as well as through our
websites (www.T-Mobile.com and www.MetroPCS.com). The information on our websites is not part of this Form 10-K.

We generate revenue by offering affordable postpaid and prepaid wireless voice, messaging and data services, and wholesale
wireless services. As of December 31, 2013, we provided service to approximately 47 million customers through our
nationwide network. We also generate revenues by offering a wide selection of wireless handsets and accessories, including
smartphones, wireless-enabled computers such as notebooks and tablets, and data cards, which are manufactured by various
suppliers. Our most significant expenses are related to expanding and providing network services, acquiring and retaining
customers, and compensating employees.

Business Combination with MetroPCS

T-Mobile US, Inc. was formed through the business combination between T-Mobile USA and MetroPCS (“business
combination”), which closed on April 30, 2013. Under the terms of the business combination with MetroPCS, Deutsche
Telekom, the parent of T-Mobile USA, received shares of common stock of the combined company in exchange for its transfer
of all of T-Mobile USA’s common stock. The business combination aimed to provide us with expanded scale, spectrum, and
financial resources to compete aggressively with other, larger U.S. wireless carriers. The business combination was accounted
for as a reverse acquisition with T-Mobile USA as the accounting acquirer. Accordingly, T-Mobile USA’s historical financial
statements became the historical financial statements of the combined company. See Note 2 – Business Combinations of the
Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K for further information regarding
the business combination.

Business Strategy

We continue to aggressively pursue our Un-carrier strategy, which includes the following elements:

Un-carrier Value Proposition

We are a leading value-oriented postpaid and prepaid wireless carrier in the United States. We are the fourth largest provider of
postpaid service plans and the third largest provider of prepaid service plans as measured by subscribers. In 2013, we
introduced the Un-carrier strategy to address consumer pain points and frustration with the unnecessary cost and complexity of
wireless service. We believe Un-carrier phases 1.0 through 3.0 have been successful, as evidenced by our strong customer
growth momentum since the launch of our Un-carrier strategy in March 2013.

In March 2013, with the launch of phase 1.0 of our Un-carrier value proposition, we introduced Simple Choice plans, which
eliminated annual service contracts and provided customers with affordable rate plans without the complexity of caps and
overage charges. Customers on Simple Choice plans can purchase the most popular smartphones and if qualified, pay for them
with a low out-of-pocket payment and 24 affordable interest-free monthly installments. The continued modernization of the
network and introduction of the Apple® iPhone® in the second quarter of 2013 further repositioned T-Mobile as a provider of
dependable high-speed service with a full range of desirable handsets and devices.

In July 2013, we announced Just Upgrade My Phone (“JUMP!™”) as phase 2.0 of our Un-carrier value proposition, which
allows participating customers to upgrade their eligible handset.

In October 2013, we unveiled phase 3.0 of our Un-carrier value proposition, which provides our Simple Choice customers
reduced United States to international calling rates and roaming fees, and data roaming while traveling abroad in over 100
countries at no extra cost. In November 2013, we began to offer the Apple iPad® Air and iPad mini with Retina display. In
addition, every T-Mobile tablet user can receive up to 200 MB of free 4G LTE data every month for as long as they own their
tablet and use it on our network, even if they are not yet a T-Mobile mobile internet customer.

In January 2014, we launched phase 4.0 of our Un-carrier value proposition, which eliminated one of the last remaining
obstacles for customers wanting to switch from other carriers to T-Mobile by offering to reimburse early termination fees when
they switch from other carriers and trade in their eligible devices.

Network Modernization and Customer Experience

We are currently in the process of rapidly upgrading our network to nationwide 4G LTE services. In October 2013, we
announced we exceeded our 2013 targets for 4G LTE network coverage by delivering 4G LTE to more than 200 million people

in 254 metropolitan areas. In addition, we deployed 10x10 MHz 4G LTE in 24 of the top 25 metropolitan areas in 2013. We
expect to deploy at least 20x20 MHz 4G LTE in approximately 90% of the top 25 metropolitan areas in 2014 and beyond.
Additionally, the migration of MetroPCS brand legacy Code Division Multiple Access (“CDMA”) customers onto T-Mobile’s
4G High Speed Packet Access Plus (“HSPA+”) and LTE network is ahead of schedule, providing faster network performance
for MetroPCS customers with compatible handsets. We have continued our expansion of the MetroPCS brand into new
geographic markets with the launch of more than 1,700 distribution points in 30 new markets by the end of 2013.

As of December 31, 2013, we held licenses for wireless spectrum suitable for wireless broadband mobile services, including
both HSPA+ and 4G LTE. As of December 31, 2013, we had an average of approximately 74 MHz of spectrum in the top 100
major metropolitan areas and an average of approximately 77 MHz of spectrum in the top 25 major metropolitan areas. In
January 2014, we entered into agreements with Verizon Communications, Inc. (“Verizon”) to acquire 700 MHz A-Block
spectrum licenses covering approximately 150 million people, which will provide upon closing (together with the A-Block
spectrum licenses we already own for Boston) T-Mobile with important low-band spectrum in 9 of the top 10 and 21 of the top
30 markets across the United States.

Multi-brand Focus

We plan to continue to operate in multiple brands to accelerate growth. Further, the addition of the MetroPCS and GoSmart
brands to T-Mobile’s portfolio increased our ability to serve the full breadth of the wireless market. During 2013, we
accelerated the growth of the MetroPCS brand by expanding into new geographic regions and expect to continue this growth
into new regions in 2014. In the fourth quarter of 2013, we expanded the Simple Choice plans to include our prepaid and B2B
customers, which allow these customers to enjoy the benefits of the Simple Choice plans. Additionally, we expect continued
expansion of our wholesale business through Mobile Virtual Network Operators (“MVNO”) and other wholesale relationships.

Aligned Cost Structure

We continue to pursue a low-cost business operating model to drive cost savings, which can then be reinvested in the business.
These cost-reduction programs are on-going as we continue to simplify our business and drive operational efficiencies and cost
savings in areas such as network optimization, customer roaming, customer service and improved customer collection rates. A
portion of these savings have been, and will continue to be, reinvested into growth of our business.

Services and Products

T-Mobile provides wireless communication services nationwide through a variety of service plan options. These include our
Value and Simple Choice plans, which allow customers to subscribe for wireless services separately from, or without purchase
of or upfront payment for, a handset. We offer services, handsets, tablets and accessories directly to consumers through our
owned and operated retail stores, as well as through our websites. In addition, we sell handsets, tablets and accessories to
dealers and other third party distributors for resale through independent third-party retail outlets and a variety of third-party
websites.

We introduced our Simple Choice plans as part of phase 1.0 of our Un-carrier value proposition in March 2013. Simple Choice
plans eliminated annual service contracts and simplified the lineup of consumer rate plans to one affordable plan for unlimited
talk, text and web service with the option to add data services. Depending on their credit profile, customers are qualified either
for postpaid service, where they generally pay after incurring monthly service, or prepaid service, where they generally pay in
advance.

Customers on our Simple Choice, or similar plans, benefit from reduced monthly service charges and can choose whether to
use their own compatible handset on our network or purchase a handset from us or one of our dealers. Our Value and Simple
Choice plans result in increased equipment revenue for each handset sold compared to traditional bundled price plans that
typically offer a significant handset discount but involve higher monthly service charges.

Depending on their credit profile, qualifying customers who purchase a handset from us have the option of financing a portion
of the purchase price at the time of sale over an installment period using our Equipment Installment Plan (“EIP”). In July 2013,
we launched phase 2.0 of our Un-carrier value proposition, JUMP!, under which qualifying customers who finance their initial
handset purchase with an EIP and enroll in JUMP! can upgrade their handset. Customers who participate in JUMP! receive a
credit for their outstanding EIP balance provided they trade in an eligible used handset at the time of upgrade and purchase a
new handset from T-Mobile.

Service Areas

We provide wireless voice, text and data services nationwide, with a network covering all major metropolitan areas and
approximately 280 million people in the United States, excluding roaming coverage.

Upon completion of the migration of the MetroPCS customer base, we expect to have approximately 55,000 equivalent cell
sites, including macro sites and certain distributed antenna system (“DAS”) network nodes retained from the MetroPCS
network. As part of the business combination, we are in the process of decommissioning redundant cell sites and the
MetroPCS CDMA network, while also integrating select MetroPCS assets, primarily DAS nodes, in certain metropolitan areas
into the overall network.

In October 2013, we purchased 10 MHz of Advanced Wireless Services (“AWS”) spectrum from United States Cellular
Corporation (“U.S. Cellular”) for $308 million in cash. The spectrum covers a total of 32 million people in 29 markets.
Through spectrum transfers and purchases, including a pending acquisition of 700 MHz A-Block spectrum from Verizon, we
expect to further enhance our portfolio of nationwide broadband spectrum and enable the expansion of LTE coverage to new
markets.

Distribution

As of December 31, 2013, we had approximately 70,000 total points of distribution, including approximately 8,000 T-Mobile
and MetroPCS branded locations and 62,000 third-party and national retailer locations, as well as distribution through our
websites. Our distribution density in major metropolitan areas provides customers with the convenience of having retail and
service locations close to where they live and work.

Customers

T-Mobile generates revenue from three primary categories of customers: branded postpaid, branded prepaid and wholesale.
Branded postpaid customers generally include customers that are qualified to pay after incurring service and branded prepaid
customers generally include customers who pay in advance. We generate the majority of our service revenues by providing
wireless communication services to branded postpaid customers. Therefore, our ability to acquire and retain branded postpaid
customers is significant to our business, including the generation of service revenues, equipment sales and other revenues. Our
branded prepaid customers include customers of the T-Mobile, MetroPCS and GoSmart brands. Wholesale customers include
Machine-to-Machine (“M2M”) customers and MVNO customers that operate on the T-Mobile network, but are managed by
wholesale partners.

During the twelve months ended December 31, 2013, 69% of our service revenues were generated by providing wireless
communication services to branded postpaid customers, compared to 26% from branded prepaid customers, and 5% from
wholesale customers, roaming and other services.

Competition

The wireless telecommunications industry is expected to remain highly competitive and we face substantial competition. Our
competitors include larger national carriers, such as AT&T Inc. (“AT&T”), Verizon and Sprint Corporation (“Sprint”), which
offer predominantly contract-based service plans; and numerous smaller regional carriers and MVNOs, such as TracFone
Wireless, Inc., many of which offer no-contract, prepaid service plans. AT&T and Verizon are significantly larger than us and
may enjoy greater resources and scale advantages as compared to us. SoftBank Corp recently acquired a majority of the equity
of Sprint and has announced plans to increase capital spending on network modernization and expansion. Other competitors,
including new entrants and companies using alternative business models may also compete effectively.

Employees

As of December 31, 2013, we employed approximately 40,000 full-time and part-time employees. As of that date, less than 20
employees were covered by a collective bargaining agreement.

Regulation

Pursuant to its authority under the Communications Act of 1934, as amended (“Communications Act”), the Federal
Communications Commission (“FCC”) regulates many key aspects of our business, including licensing, construction, the
operation and use of our network, modifications of our network, control and ownership of our business, the sale of certain
business assets, domestic roaming arrangements and interconnection agreements. The FCC has a number of complex
requirements and proceedings that affect our operations and that could increase our costs or diminish our revenues. For

example, the FCC has rules regarding provision of 911 and E-911 services, porting telephone numbers, interconnection,
roaming, internet openness, and the universal service and Lifeline programs. Many of these and other issues are being
considered in ongoing proceedings, and we cannot predict whether or how such actions will affect our business, financial
condition, or results of operations. Our ability to provide services and generate revenues could be harmed by adverse
regulatory action or changes to existing laws and regulations. In addition, regulation of companies that offer competing
services can impact our business indirectly.

Wireless communications providers must be licensed by the FCC to provide communications services at specified spectrum
frequencies within specified geographic areas and must comply with the rules and policies governing the use of the spectrum as
adopted by the FCC. The FCC issues each license for a fixed period of time, typically 10 years in the case of cellular, personal
communications services (“PCS”) and point-to-point microwave licenses. AWS licenses have an initial term of 15 years, with
successive 10-year terms thereafter. While the FCC has generally renewed licenses given to operating companies like us, the
FCC has authority to both revoke a license for cause and to deny a license renewal if a renewal is not in the public interest.
Furthermore, we could be subject to fines, forfeitures and other penalties (including, in extreme cases, revocation of our
licenses) for failure to comply with FCC regulations, even if any such non-compliance was unintentional. The loss of any
licenses, or any related fines or forfeitures, could adversely affect our business, results of operations and financial condition.

Additionally, Congress’ and the FCC’s allocation of additional spectrum for broadband commercial mobile radio service
(“CMRS”), which includes cellular and personal communication services and specialized mobile radio, could significantly
increase competition. We cannot assess the impact that any developments that may occur in the U.S. economy or any future
spectrum allocations by the FCC may have on license values. FCC spectrum auctions and other market developments may
adversely affect the market value of our licenses in the future. A significant decline in the value of our licenses could adversely
affect the carrying value of our licenses on our balance sheet and our results of operations and financial condition. In addition,
the FCC periodically reviews its policies on how to evaluate a carrier’s spectrum holdings in the context of transactions and
auctions. A change in these policies could affect spectrum resources and competition among us and other carriers.

Congress and the FCC have imposed limitations on foreign ownership of CMRS licensees that exceeds 20% direct ownership
or 25% indirect ownership. The FCC has ruled that higher levels of indirect foreign ownership, even up to 100%, are
presumptively consistent with the public interest albeit subject to review. Consistent with that established policy, the FCC has
issued a declaratory ruling authorizing up to 100% ownership of our company by Deutsche Telekom. This declaratory ruling,
and our licenses, are conditioned on Deutsche Telekom’s and the Company’s compliance with a network security agreement
with the Department of Justice, the Federal Bureau of Investigation and the Department of Homeland Security. Failure to
comply with the terms of this agreement could result in fines, injunctions and other penalties, including potentially revocation
of our spectrum licenses. The loss of any licenses, or any related fines or forfeitures, could adversely affect our business,
results of operations and financial condition.

While the Communications Act generally preempts state and local governments from regulating the entry of, or the rates
charged by, wireless carriers, certain state and local governments regulate other terms and conditions of wireless service,
including billing, termination of service arrangements and the imposition of early termination fees, advertising, network
outages, the use of handsets while driving, zoning and land use. Further, the FCC and the Federal Aviation Administration
regulate the siting, lighting and construction of transmitter towers and antennae. Tower siting and construction are also subject
to state and local zoning, as well as federal statutes regarding environmental and historic preservation. The future costs to
comply with all relevant regulations are to some extent unknown and regulations could result in higher operating expenses in
the future.

Executive Officers of the Registrant

Name

John J. Legere

James (Jim) C. Alling

David R. Carey

J. Braxton Carter

Peter A. Ewens

Age

Position

President, Chief Executive Officer

53 Executive Vice President and Chief Operating Officer T-Mobile Business

60 Executive Vice President, Corporate Services

55 Executive Vice President and Chief Financial Officer

51 Executive Vice President, Corporate Strategy

Alexander Andrew (Drew) Kelton

55 Executive Vice President, Business-to-Business (“B2B”)

Thomas C. Keys

Gary A. King

David A. Miller

Larry L. Myers

Neville R. Ray

G. Michael (Mike) Sievert

55 Executive Vice President and Chief Operating Officer, MetroPCS Business

56 Executive Vice President, Chief Information Officer

53 Executive Vice President, General Counsel and Secretary

59 Executive Vice President, Human Resources

51 Executive Vice President and Chief Technology Officer

44 Executive Vice President and Chief Marketing Officer

John J. Legere, age 55, has served as a member of our Board of Directors since April 30, 2013 and is a member of the
Executive Committee of the board. Mr. Legere joined T-Mobile in September 2012 as President and Chief Executive Officer
and became our President and Chief Executive Officer on April 30, 2013 upon the consummation of the business combination.
Mr. Legere has over 32 years’ experience in the U.S. and global telecommunications and technology industries. Prior to joining
T-Mobile, Mr. Legere served as Chief Executive Officer of Global Crossing Limited, a telecommunications company, from
October 2001 to October 2011. Before joining Global Crossing, he served as Chief Executive Officer of Asia Global Crossing;
as president of Dell Computer Corporation’s operations in Europe, the Middle East, and Africa; as president Asia-Pacific for
Dell; as president of AT&T Asia Pacific; as head of AT&T’s outsourcing program and as head of AT&T global strategy and
business development. Mr. Legere serves on the CTIA Board of Directors. Mr. Legere received a Bachelor’s degree in
Business Administration from the University of Massachusetts, a Master of Science degree as an Alfred P. Sloan Fellow at the
Massachusetts Institute of Technology, and a Master of Business Administration degree from Fairleigh Dickinson University,
and he completed Harvard Business School’s Program for Management Development (“PMD”).

James (Jim) C. Alling, age 53, serves as our Executive Vice President and Chief Operating Officer, T-Mobile Business. In this
role, Mr. Alling is in charge of customer-facing activities for a subscription base of over 30 million users. Mr. Alling has also
served as the Chief Operating Officer of T-Mobile USA since August 2009. Before joining T-Mobile USA, Mr. Alling worked
as a President of Starbucks Coffee Company, a global coffee company and coffeehouse chain, for eleven years, until July 2008.
Mr. Alling began his career in 1985 at Nestle S.A., where he held various senior management positions in the packaged goods
marketing sector before eventually becoming a VP/General Manager for Nestle USA. Mr. Alling received a Bachelor of Arts
degree from DePauw University in Greencastle, Indiana with a double major in Economics and Spanish; he then obtained a
Master of International Management degree from the Thunderbird School of International Management.

David R. Carey, age 60, serves as our Executive Vice President, Corporate Services, responsible for leading the Enterprise
Program Office, Corporate Communications, Corporate Real Estate, Corporate Responsibility and the CEO Staff. Mr. Carey
has also served in the same role with T-Mobile USA since March 2013. Before joining T-Mobile USA, from October 2011 to
March 2013, Mr. Carey served as the CEO and Founder of TeleScope Advisors, LLC, an advisory firm specializing in
telecommunications. Mr. Carey served as Executive Vice President at Global Crossing Limited, a telecommunications
company, from September 1999 to October 2011. Mr. Carey’s career spans 35 years in the telecom and energy services
industries. His experience in telecom includes leadership positions at AT&T, LG&E Energy, Frontier Communications and
Global Crossing. He currently serves on the advisory board of Hewlett-Packard Corporation. Mr. Carey holds a Master of
Science in Management Science from the Massachusetts Institute of Technology, where he was appointed to a Sloan
Fellowship, and received his Bachelor of Science degree at Clarkson University.

J. Braxton Carter, age 55, serves as our Executive Vice President and Chief Financial Officer, and is responsible for leading the
financial functions of the Company. Mr. Carter served as MetroPCS’s Chief Financial Officer from February 2008 until the
consummation of the business combination. Mr. Carter also served as MetroPCS’s Vice Chairman from May 2011 until the
consummation of the business combination. From March 2005 to February 2008, he was Senior Vice President and Chief
Financial Officer and from February 2001 to March 2005 he was Vice President, Corporate Operations of MetroPCS.
Mr. Carter also has extensive senior management experience in the retail industry and spent ten years in public accounting.
Mr. Carter is a certified public accountant. Mr. Carter presently serves on the Board of Directors of, and as Chairman of the
Audit Committee of, e-Rewards, Inc., and serves on the Board of Advisors of Amdocs Limited. Mr. Carter received a Bachelor
of Science degree from The University of Colorado with a major in accounting.

Peter A. Ewens, age 51, serves as our Executive Vice President, Corporate Strategy. He leads the Company’s corporate
strategy, business development and M&A activities, which include spectrum strategy and acquisitions, co-brand partnerships,
and T-Mobile’s participation as a founding partner in the Isis mobile commerce joint venture with AT&T and Verizon Wireless.
Mr. Ewens has also served as Executive Vice President and Chief Strategy Officer of T-Mobile USA since July 2010. From
April 2008 until July 2010, Mr. Ewens was Senior Vice President, Corporate Strategy at T-Mobile USA. Before joining T-
Mobile USA, Mr. Ewens was Vice President of OEM Business at Sun Microsystems, a computer software and information
technology services company, from June 2006 through March 2008. Before that, Mr. Ewens was a partner at McKinsey &
Company, a global management consulting firm. Mr. Ewens received a Master of Science in Management from the Sloan
School at Massachusetts Institute of Technology, and Master’s and Bachelor’s degrees in Electrical Engineering from the
University of Toronto.

Alexander Andrew (Drew) Kelton, age 55, serves as our Executive Vice President, Business-to-Business (“B2B”), responsible
for leading the B2B organization, helping to redefine the B2B wireless experience for our business customers, and growing
market share in this important segment. Mr. Kelton has also served as T-Mobile USA’s Executive Vice President of B2B since
April 2013. Previously, Mr. Kelton served as President of Bharti Airtel Business, a leading Indian global telecommunications
company, from June 2010 to April 2013. Before that, he served as the Managing Director for Telstra Corporation Limited, an
Australian telecommunications and media company, responsible for international operations, from May 2002 to June 2010.
Previously, Mr. Kelton held executive posts with Asia Global Crossing Limited, a telecommunications company, and Saturn
Global Network Services Holdings Limited, an international provider of end-to-end managed voice and data services.
Mr. Kelton has also held a variety of international sales, marketing, product and engineering roles with Timeplex, LLC, a
provider of networking systems and support services, and The Plessey Co. plc., a British-based international electronics,
defense and telecommunications company. Mr. Kelton serves on the Board of Directors of Mobile Active (Australia), a mobile
advertising, design and development company, and the Board of Directors of Limas StockWatch (Indonesia), a financial
services information company. Mr. Kelton received a Bachelor of Science degree in electronics and electrical engineering from
the University of Western Scotland.

Thomas C. Keys, age 55, serves as our Executive Vice President and Chief Operating Officer MetroPCS Business, responsible
for leading the operations of the MetroPCS business unit including all customer-facing activities related to the MetroPCS
brands. Mr. Keys served as MetroPCS’s President from May 2011 until the consummation of the business combination, and as
Chief Operating Officer since June 2007. Mr. Keys also served as MetroPCS’s President from June 2007 to December 2007,
Senior Vice President, Market Operations, West, from January 2007 until June 2007, and as Vice President and General
Manager, Dallas, from April 2005 until January 2007. Mr. Keys received a Bachelor of Arts degree from State University of
New York at Oswego, and a Master of Arts from Syracuse University.

Gary A. King, age 56, serves as our Executive Vice President, Chief Information Officer, and is responsible for managing the
development of information technology systems. Prior to joining T-Mobile, Mr. King served as Executive Vice President and
Chief Information Officer of Chico’s FAS, Inc. from October 2004 to April 2013. Previously, he was the Chief Information
officer of Barnes & Noble Inc. from May 2002 to October 2004 and also served as its Vice President. Prior to that, Mr. King
served as Executive Vice President-Operations of Barnesandnoble.com since December 31, 2001 and its Chief Technology
Officer from January 1999 to May 2002. Prior to that, he spent ten years from 1988 to 1999 with Avon Products, Inc., and
served as its Vice President, Global Information Technology from 1996 to 1999. He also held various systems management
positions with Unisys Corporation and Borroughs Corporation from 1982 to 1987. Mr. King serves on the Advisory Boards of
Center for Supply Chain Management at the University of Florida, Trident Capital and Pivotlink. Mr. King received a Bachelor
of Science degree from the University of Florida with a major in computer science.

David A. Miller, age 53, serves as our Executive Vice President, General Counsel and Secretary. Mr. Miller oversees all legal
affairs and government affairs functions of the Company. Mr. Miller has also served as T-Mobile USA’s Chief Legal Officer,
Executive Vice President, General Counsel and Secretary. Mr. Miller was appointed Senior Vice President and General
Counsel of T-Mobile USA in April 2002 and Executive Vice President in January 2011. Previously, Mr. Miller served as
Director of Legal Affairs for Western Wireless (a predecessor to T-Mobile USA) from March 1995 to May 1999, and he
became Vice President of Legal Affairs of VoiceStream Wireless Corporation in May 1999 following its spin-off from Western
Wireless. VoiceStream Wireless was acquired by Deutsche Telekom in May 2001, when it became T-Mobile USA. Prior to
joining Western Wireless, Mr. Miller was an attorney with the law firm of Lane Powell and began his law career as an attorney
with the firm McCutchen, Doyle, Brown and Enersen (now Bingham McCutchen). Mr. Miller serves on the Board of Directors
of the Competitive Carriers Association and is a member of its Executive Committee. Mr. Miller received a Bachelor’s degree
in Economics from the University of Washington and a Juris Doctor from Harvard Law School.

Larry L. Myers, age 59, serves as our Executive Vice President, Human Resources. Mr. Myers is responsible for leading the
human resources function that supports our employees across the country. Mr. Myers has also served as Executive Vice
President of Human Resources and Chief People Officer of T-Mobile USA since June 2008. From January 2001 to May 2008,
Mr. Myers served as senior vice president of human resources for Washington Group International, a corporation which
provided integrated engineering, construction, and management services to businesses and governments around the world.
Mr. Myers has more than 35 years of experience in human resources management. Mr. Myers received degrees in sociology
and business administration from Idaho State University.

Neville R. Ray, age 51, serves as our Executive Vice President and Chief Technology Officer. Mr. Ray joined T-Mobile USA
(then VoiceStream) in April 2000 and since December 2010 has served as its Chief Technology Officer, responsible for the
national management and development of the T-Mobile USA wireless network and the company’s IT services and operations.
Prior to joining T-Mobile USA, from September 1996 to September 1999, Mr. Ray served as Network Vice President for
Pacific Bell Mobile Services. He served as Chairperson of 4G Americas from 2008 through 2013, which promotes and
facilitates the seamless deployment throughout the Americas of the 3GPP family of technologies, including HSPA, HSPA+, and
LTE. He has also served as a member of the National Telecommunications and Information Administration’s Commerce
Spectrum Management Advisory Committee (“CSMAC”) and the Federal Communications Commission’s Communications
Security, Reliability and Interoperability Council (“CSRIC”). Mr. Ray is an honors graduate of The City University of London
and a member of the Institution of Electrical and Electronic Engineers and the Institution of Civil Engineers.

G. Michael (Mike) Sievert, age 44, serves as our Executive Vice President and Chief Marketing Officer. Mr. Sievert is
responsible for strategic development and execution of all marketing, product development, and pricing programs and activities
for the Company. Mr. Sievert has also served as Executive Vice President and Chief Marketing Officer of T-Mobile USA since
November 2012. Prior to joining T-Mobile USA, Mr. Sievert was an entrepreneur and investor involved with several Seattle-
area start-up companies, most recently serving as CEO of Discovery Bay Games, a maker of accessories and add-ons for tablet
computers, from April 2012 to November 2012. From April 2009 to June 2011, he was Chief Commercial Officer at Clearwire
Corporation, a broadband communications provider, responsible for all customer-facing operations. From February 2008 to
January 2009, Mr. Sievert was co-founder and CEO of Switchbox Labs, Inc., a consumer technologies developer, leading up to
its sale to Lenovo. He also served from January 2005 to February 2008 as Corporate Vice President of the worldwide Windows
group at Microsoft Corporation, responsible for global product management and P&L performance for that unit. Prior to
Microsoft, he served as Executive Vice President and Chief Marketing Officer at AT&T Wireless for three years. He also
served as Chief Sales and Marketing officer at E*TRADE Financial and began his career with management positions at
Procter & Gamble and IBM. He has served on the boards of Rogers Wireless in Canada, Switch & Data Corporation, and a
number of technology start-ups. Mr. Sievert received a Bachelor’s degree in Economics from the Wharton School at the
University of Pennsylvania.

Available Information

T-Mobile’s Form 10-K and all other reports and amendments filed with or furnished to the SEC, are publicly available free of
charge on the Investor Relations section of our website at investor.t-mobile.com or at www.sec.gov as soon as reasonably
practicable after these materials are filed with or furnished to the SEC. Our corporate governance guidelines, code of business
conduct, code of ethics for senior financial officers and charters for the audit, compensation, nominating and corporate
governance and executive committees of our board of directors are also posted on the Investor Relations section of T-Mobile’s
website at investor.t-mobile.com. The information on our website is not part of this or any other report T-Mobile files with, or
furnishes to, the SEC.

Item 1A. Risk Factors

In addition to the other information contained in this Form 10-K, the following risk factors should be considered carefully in
evaluating T-Mobile US. Our business, financial condition, liquidity or results of operations could be materially adversely
affected by any of these risks.

Risks Related to Our Business and the Wireless Industry

The scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use, may adversely affect
our business strategy and financial planning.

Based on industry trends, we believe that the average data usage of our customers will continue to rise. Therefore, at some
point in the future we will need to acquire additional spectrum in order to continue our customer growth, expand into new
metropolitan areas, maintain our quality of service, meet increasing customer demands, and deploy new technologies. We will

be at a competitive disadvantage and possibly experience erosion in the quality of service in certain markets if we fail to gain
access to necessary spectrum before reaching capacity, especially below 1 GHz - low band spectrum.

The continued interest in, and aggregation of, spectrum by the largest national carriers may reduce our ability to acquire
spectrum from other carriers or otherwise negatively impact our ability to gain access to spectrum through other means. As a
result, we may need to acquire spectrum through government auctions and/or enter into spectrum sharing arrangements, which
are subject to certain risks and uncertainties. For example, the FCC has encountered resistance to its plans to make additional
spectrum available, which has created uncertainty about the timing and availability of spectrum through government auctions.

In addition, the FCC may impose conditions on the use of new wireless broadband mobile spectrum, including new restrictions
or rules governing the use or access to current or future spectrum. This could increase pressure on capacity. Additional
conditions that may be imposed by the FCC include heightened build-out requirements, limited renewal rights, clearing
obligations, or open access or net neutrality requirements that may make it less attractive or less economical to acquire
spectrum. The FCC has a pending notice of proposed rulemaking to examine whether the current spectrum screen used in
acquisitions of spectrum should be changed or whether a spectrum cap should be imposed. In addition, rules may be
established for future government spectrum auctions that may negatively impact our ability to obtain spectrum economically or
in appropriate configurations or coverage areas.

If we cannot acquire needed spectrum from the government or otherwise, if new competitors acquire spectrum that will allow
them to provide services competitive with our services, or if we cannot deploy services on a timely basis without burdensome
conditions, at adequate cost, and while maintaining network quality levels, then our ability to attract and retain customers and
our associated financial performance could be materially adversely affected.

Increasing competition for wireless customers could adversely affect our operating results.

We have multiple wireless competitors in each of our service areas, some of which have greater resources than us. We compete
for customers based principally on service/device offerings, price, call quality, data use experience, coverage area, and
customer service. In addition, we are facing growing competition from providers offering services using alternative wireless
technologies and IP-based networks, as well as traditional wireline networks. To the extent we are unable to compete
effectively with these and new competitors, our business and operating results could be adversely affected. We expect market
saturation to continue to cause the wireless industry’s customer growth rate to be moderate in comparison with historical
growth rates or possibly negative, leading to increased competition for customers. We also expect that our customers’ growing
demand for data services will place constraints on our network capacity. Together with the competitive factors we face, these
capacity issues will continue to put pressure on pricing and margins as companies compete for potential customers. Our ability
to respond will depend on, among other things, continued absolute and relative improvement in network quality and customer
services, effective marketing and selling of products and services, attractive pricing, and cost management, all of which will
involve significant expenses.

If we are unable to attract and retain wireless subscribers our financial performance will be impaired.

Customer demand for our products and services is impacted by numerous factors including, but not limited to, our service
offerings, pricing, network performance, customer perceptions, competitive offers, sales and distribution channels, economic
conditions and customer service. Managing these factors, and customers’ expectations of these factors, is essential in attracting
and retaining customers.

We continuously incur capital expenditures and operating expenses in order to improve and enhance our products, services,
applications and content to remain competitive and to keep up with our customer demand. If we fail to improve and enhance
our products and services or expand the capacity of, or make upgrades to, our network to remain competitive, or if we fail to
keep up with customer demand, including by maintaining access to desired handsets, content and features, our ability to attract
and retain customers would be adversely affected. In particular, our gross new subscriber activations may decrease and our
subscriber churn may increase, leaving us unable to meet the assumptions of our business plan. Even if we effectively manage
the factors listed above that are within our control, there can be no assurance that our existing customers will not switch to
another wireless provider or that we will be able to attract new customers. There would be a material adverse impact on our
business, financial condition, and operating results if we are unable to grow our customer base at the levels we project, or
achieve the aggregate levels of customer penetration that we currently believe are possible with our business model.

Consolidation in the wireless industry through mergers, acquisitions and joint ventures could create increased
competition.

Joint ventures, mergers, acquisitions and strategic alliances in the wireless industry have resulted in and are expected to result
in larger competitors competing for a limited number of customers. The two largest national wireless broadband mobile
carriers currently serve a significant percentage of all wireless customers, and hold significant spectrum and other resources.
Our largest competitors may be able to enter into exclusive handset or content arrangements, execute pervasive advertising and
marketing campaigns, or otherwise improve their cost position relative to ours. In addition, the refusal of our large competitors
to provide critical access to resources and inputs, such as roaming services on reasonable terms, may improve their position
within the wireless broadband mobile services industry. These factors, together with the effects of the increasing aggregate
penetration of wireless services in all metropolitan areas, and the ability of our larger competitors to use resources to build out
their networks and to quickly deploy advanced technologies, which have made it more difficult for smaller carriers like us to
attract and retain customers, may adversely affect our competitive position and ability to grow, which would have a material
adverse effect on our business, financial condition, and operating results.

Our reputation and financial condition could be materially adversely affected by system failures, security or data
breaches, improper disclosure of personal data, business disruptions, and unauthorized use or interference with our
network and other systems.

To be successful, we must provide our customers with reliable, trustworthy service and protect the communications, location,
and personal information shared or generated by our customers. We rely upon our systems and networks, and the systems and
networks of other providers and suppliers, to provide and support our services and, in some cases, to protect our customers’ and
our information. Failure of our or others’ systems, networks and infrastructure may prevent us from providing reliable service,
or may allow for the unauthorized access, destruction, use or dissemination of our customers’ or our Company’s information.
Examples of these risks include:

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denial of service and other malicious or abusive attacks by third parties, including cyber-attacks or breaches of
network or information technology security;
improper disclosure and handling of sensitive data including personally identifiable information by employees or
vendors;
responding to deceptive communications (phishing for example) or unintentionally executing malicious code;
physical damage, power surges or outages, or equipment failure, including those as a result of severe weather, natural
disasters, terrorist attacks, and acts of war;
theft of customer or proprietary information, including it being offered for sale, or used for competitive (dis)
advantage, and/or corporate extortion;
unauthorized access to our information technology, billing, customer care and provisioning systems and networks, and
those of our suppliers and other providers;
supplier failures or delays; and
other systems failures or outages.

Such events could cause us to lose customers, lose revenue, incur expenses, suffer reputational and goodwill damages, and
subject us to litigation or governmental investigation. Remediation costs could include liability for information loss, repairing
infrastructure and systems, and/or costs of incentives offered to customers. Our insurance may not cover, or be adequate to
fully reimburse us for, costs and losses associated with such events.

If we are unable to take advantage of technological developments on a timely basis, then we may experience a decline in
demand for our services or face challenges in implementing our business strategy.

In order to grow and remain competitive, we will need to adapt to future changes in technology, enhance our existing offerings,
and introduce new offerings to address our current and potential customers’ changing demands. For example, we are in the
process of transforming and upgrading our network to deploy LTE Release 10 and use multimode integrated radios that can
handle Global System for Mobile Communications (“GSM”), HSPA+ and LTE. Modernizing the network is subject to risk
from equipment changes, and migration of customers from existing spectrum bands. Scheduling and supplier delays,
unexpected or increased costs, technological constraints, regulatory permitting issues, subscriber dissatisfaction, and other risks
could cause delays in building out the new network, which could result in significant costs, or reduce the anticipated benefits of
the upgrades. These risks will be reduced as we progress and ultimately complete our network modernization efforts in 2014.
In general, the development of new services in the wireless telecommunications industry will require us to anticipate and
respond to the continuously changing demands of our customers, which we may not be able to do accurately or timely. We

could experience a material adverse effect on our business, operations, financial position, and operating results if our new
services fail to retain or gain acceptance in the marketplace or if costs associated with these services are higher than anticipated.

Economic and market conditions may adversely affect our business and financial performance, as well as our access to
financing on favorable terms or at all.

Our business and financial performance are sensitive to changes in general economic conditions, including changes in interest
rates, consumer credit conditions, consumer debt levels, consumer confidence, rates of inflation (or concerns about deflation),
unemployment rates, energy costs and other macro-economic factors. Market and economic conditions have been
unprecedented and challenging in recent years. Concerns about the systemic impact of a long-term downturn, high
underemployment and unemployment, high energy costs, the availability and cost of credit and unstable housing and credit
markets have contributed to increased market volatility and economic uncertainty.

Renewed market turbulence and weak economic conditions may materially adversely affect our business and financial
performance in a number of ways. Our services are available to a broad customer base, a significant segment of which may be
more vulnerable to weak economic conditions. We may have greater difficulty in gaining new customers within this segment
and existing customers may be more likely to terminate service due to an inability to pay. Competing for customers within this
segment also puts pressure on our pricing structure and margins. In addition, the instability in the global financial markets has
resulted in periodic volatility in the credit, equity, and fixed income markets. This volatility could limit our access to the credit
markets, leading to higher borrowing costs or, in some cases, the inability to obtain financing on terms that are acceptable to us,
or at all.

Weak economic conditions and tight credit conditions may also adversely impact our suppliers and dealers, some of which have
filed for or may be considering bankruptcy, or may experience cash flow or liquidity problems or are unable to obtain or
refinance credit such that they may no longer be able to operate. Any of these could adversely impact our ability to distribute,
market, or sell our products and services. Sustained difficult, or worsening, general economic conditions could have a material
adverse effect on our business, financial condition and results of operations.

The failure to successfully integrate the T-Mobile and MetroPCS businesses in the expected time frame could adversely
affect our future operating results. Many of the anticipated benefits of the combination may not be realized for a
significant period of time, if at all.

Our success will depend, in large part, on our ability to realize the anticipated benefits, including projected synergies and cost
savings, from combining the T-Mobile business with the MetroPCS business. This integration will be complex, time-
consuming, require significant capital expenditures, and may divert management’s time and attention from the business. The
failure to successfully integrate and manage the challenges presented by the integration process may prevent us from achieving
the anticipated benefits of the business combination of T-Mobile and MetroPCS and have a material adverse effect on our
business, financial condition and operating results.

Potential difficulties in the integration process include, among others, the following:

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unexpected costs incurred in integrating the T-Mobile and MetroPCS businesses or inability to achieve the cost
savings anticipated to result from the business combination;

• migrating customers from the legacy MetroPCS network to our global system for mobile communications, which we

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refer to as GSM, evolved high speed packet access, which we refer to as HSPA+, and LTE networks;
decommissioning the legacy MetroPCS network;
integrating existing back office and customer facing information systems, cell sites and network infrastructure,
customer service programs, and distributed antenna systems;
combining or coordinating product and service offerings, subscriber plans, customer services, and sales and marketing
approaches;
addressing the effects of the business combination on our business and the previously established relationships
between each of T-Mobile and MetroPCS and their employees, customers, suppliers, content providers, distributors,
dealers, retailers, regulators, affiliates, joint venture partners, and the communities in which they operated; and
difficulties in consolidating and preparing the Company’s financial statements, or having to restate the financial
statements of the Company.

Many of the anticipated synergies are not expected to occur for a significant time period and will require substantial capital
expenditures in the near term to be fully realized. Even if we are able to integrate the two businesses successfully, we may not
realize the full anticipated benefits of the merger, including anticipated synergies expected from the integration, or achieve such
benefits within the anticipated time frame or at all.

We no longer require consumers to sign annual service contracts for post-paid services and offer consumers equipment
financing, and this strategy may not succeed in the long term.

With the launch of our ‘Simple Choice Plans’, we no longer require consumers to sign annual service contracts to obtain post-
paid service, while offering EIP to permit customers to finance handsets which they purchase from us. While we anticipate that
we will continue to employ similar “Un-Carrier” tactics as part of our business strategy, our service plans and EIP offerings
may not meet our customers’ or potential customers’ needs, expectations, or demands. In addition, with this reduction in long-
term service contracts,the vast majority of our customers can discontinue their service at any time without penalty or advance
notice to us other than paying off any residual commitment they may have for device financing. We cannot assure you that our
strategies to address customer churn will be successful. In addition, we may not be able to profitably replace customers who
leave our service or replace them at all. We could experience reduced revenues and increased marketing costs to attract
replacement customers if we experience a churn rate higher than we expect, which could reduce our profit margin and
profitability. Our operational and financial performance may be adversely affected if we are unable to grow our customer base
and achieve the customer penetration levels that we anticipate with this business model.

Certain retail customers have the option to pay for their devices in installments over a period of up to 24 months under our EIP.
These EIP offerings subject us to increased risks relating to consumer credit issues, which could result in increases to our bad
debt expense and potential write-offs of account balances under the EIP receivables. These arrangements may be particularly
sensitive to changes in general economic conditions, as discussed above, and any declines in the credit quality of our customer
base could have a material adverse effect on our operating results and financial condition.

We rely on third-parties to provide specialized products or services for the operation of our business, and a failure or
inability by such parties to provide these products or services could adversely affect our business, results of operations,
and financial condition.

We depend heavily on suppliers and other third parties in order for us to efficiently operate our business. Our business is
complex, and it is not unusual for multiple vendors located in multiple locations to help us to develop, maintain, and
troubleshoot products and services, such as network components, software development services, and billing and customer
service support. Our suppliers often provide services outside of the United States, which carries associated additional
regulatory and legal obligations. We generally rely upon the suppliers to provide contractual assurances and accurate
information regarding risks associated with their provision of products or services in accordance with our expectations and
standards, and they may fail to do so.

Generally, there are multiple sources for the types of products and services we purchase or use. However, we currently rely on
one key supplier for billing services, a limited number of suppliers for voice and data communications transport services,
network infrastructure, equipment, handsets, and other devices, and payment processing services, among other products and
services we rely on. Disruptions with respect to such suppliers, or failure of such suppliers to adequately perform, could have a
material adverse on our financial performance.

In the past, our suppliers, contractors and third-party retailers have not always performed at the levels we expect or at the levels
required by their contracts. Our business could be severely disrupted if key suppliers, contractors, service providers, or third-
party retailers fail to comply with their contracts or become unable to continue the supply due to patent or other intellectual
property infringement actions, or other disruptions. Our business could also be disrupted if we experience delays or service
degradation during any transition to a new outsourcing provider or other supplier, such as a billing vendor, or we were required
to replace the supplied products or services with those from another source, especially if the replacement became necessary on
short notice. Any such disruptions could have a material adverse effect on our business, results of operations and financial
condition.

Our financial performance will be impaired if we experience high fraud rates related to device financing, credit cards,
dealers, or subscriptions.

Our operating costs could increase substantially as a result of fraud, including device financing, customer credit card,
subscription or dealer fraud. If our fraud detection strategies and processes are not successful in detecting and controlling
fraud, whether directly or by way of the systems, processes, and operations of third parties such as national retailers, dealers
and others, the resulting loss of revenue or increased expenses could have a materially adverse impact on our financial
condition and results of operations.

Our significant indebtedness could adversely affect our business, financial condition and operating results.

Our ability to make payments on our debt, to repay our existing indebtedness when due, and to fund operations and significant
planned capital expenditures will depend on our ability to generate cash in the future, which is in turn subject to the operational
risks described elsewhere in this section. Our debt service obligations could have material adverse effects on our operations
and financial results, including by:

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limiting our ability to borrow money or sell stock to fund our operational, financing or strategic needs;
limiting our flexibility in planning for, or reacting to, changes in our business or the communications industry or
pursuing growth opportunities;
reducing the amount of cash available for other operational or strategic needs; and
placing us at a competitive disadvantage to competitors who are less leveraged than we are.

In addition, a substantial portion of our debt, including $5.6 billion in principal amount of the notes we issued to Deutsche
Telekom in connection with the business combination between T-Mobile and MetroPCS and borrowings under our $500
million credit facility with Deutsche Telekom, bears interest at variable rates. If market interest rates increase, variable-rate
debt will create higher debt service requirements, which could adversely affect our cash flow. While we have and may enter
into agreements limiting our exposure to higher interest rates in the future, any such agreements may not offer complete
protection from this risk, and any portion not subject to such agreements would have full exposure to higher interest rates. Any
of these risks could have a material adverse effect on our business, financial condition, and operating results.

The agreements governing our indebtedness include restrictive covenants that limit our operating flexibility.

The agreements governing our indebtedness impose significant operating and financial restrictions on us. These restrictions,
subject in certain cases to customary baskets, exceptions and incurrence-based ratio tests, may limit our ability to engage in
some transactions, including the following:

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incurring additional indebtedness and issuing preferred stock;
paying dividends, redeeming capital stock or making other restricted payments or investments;
selling or buying assets, properties or licenses;
developing assets, properties or licenses which we have or in the future may procure;
creating liens on assets;
participating in future FCC auctions of spectrum or private sales of spectrum;
engaging in mergers, acquisitions, business combinations, or other transactions;
entering into transactions with affiliates; and
placing restrictions on the ability of subsidiaries to pay dividends or make other payments.

These restrictions could limit our ability to react to changes in our operating environment or the economy. Any future
indebtedness that we incur may contain similar or more restrictive covenants. Any failure to comply with the restrictions of our
debt agreements may result in an event of default under these agreements, which in turn may result in defaults or acceleration
of obligations under these agreements and other agreements, giving our lenders the right to terminate any commitments they
had made to provide us with further funds and to require us to repay all amounts then outstanding. Any of these events would
have a material adverse effect on our financial position and performance.

Our business and stock price may be adversely affected if our internal controls are not effective.

Section 404 of the Sarbanes-Oxley Act of 2002, as amended, and the SEC rules and regulations promulgated thereunder,
require companies to conduct a comprehensive evaluation of their internal control over financial reporting. To comply with
this statute, each year we are required to document and test our internal control over financial reporting; our management is
required to assess and issue a report concerning our internal control over financial reporting; and our independent registered
public accounting firm is required to report on the effectiveness of our internal control over financial reporting.

We cannot assure you that we will not discover material weaknesses in the future, including material weaknesses resulting from
difficulties, errors, delays, or disruptions while we integrate the T-Mobile and MetroPCS businesses. The existence of one or
more material weaknesses could result in errors in our financial statements, and substantial costs and resources may be required
to rectify these or other internal control deficiencies. If we are unable to comply with the requirements of Section 404 in a
timely manner or assert that our internal control over financial reporting is effective, investors may lose confidence in the
accuracy and completeness of our financial reports and the trading price of our common stock could be negatively affected, and
we could become subject to investigations by the stock exchange on which our securities are listed, the SEC, or other
regulatory authorities, which could require additional financial and management resources.

We have made significant changes to our corporate structure, strategy, and operations in effort to revitalize the business
and effect change in our market position.

Over the last few years and in connection with the business combination, we have made significant corporate changes
including: new executive leadership and changes in executive leadership responsibilities, new governance structures, call center
consolidation, organizational restructuring, and changed methods of funding. Although these changes are designed to improve
company performance, in some cases they insert additional business complexity, and thus are accompanied by associated risks
to effective operations. For example, these new initiatives may divert the attention of our management and other personnel
may increase our legal and compliance costs and make some activities more time-consuming and costly.

We rely on highly-skilled personnel throughout all levels of our business. Our business could be harmed if we are
unable to retain or motivate key personnel, hire qualified personnel, or maintain our corporate culture.

We believe that our future success depends in substantial part on our ability to recruit, hire, motivate, develop, and retain
talented and highly-skilled personnel. Achieving this objective may be difficult due to many factors, including fluctuations in
economic and industry conditions, competitors’ hiring practices, employee tolerance for the significant amount of change
within and demands on our company and our industry, and the effectiveness of our compensation programs. If we do not
succeed in retaining and motivating our existing key employees and in attracting new key personnel, we may be unable to meet
our business plan and, as a result, our revenue growth and profitability may be materially adversely affected.

Risk related to Legal and Regulatory Matters

We operate throughout the United States, Puerto Rico, and the U.S. Virgin Islands, and as such are subject to
regulatory and legislative action by applicable local, state and federal governmental entities, which may increase our
costs of providing products or services, or require us to change our business operations, products, or services or subject
us to material adverse impacts if we fail to comply with such regulations.

The FCC regulates the licensing, construction, modification, operation, ownership, sale, and interconnection of wireless
communications systems, as do some state and local regulatory agencies. The FCC reviews and in some cases restricts non-
U.S. ownership of wireless communications systems. We cannot assure you that the FCC or any state or local agencies having
jurisdiction over our business will not adopt regulations or take other enforcement or other actions that would adversely affect
our business, impose new costs, or require changes in current or planned operations. We are subject to regulatory action by the
FCC and other federal agencies, as well as judicial review and actions, on issues related to the wireless industry that include,
but are not limited to: roaming, network outages, spectrum allocation and licensing, pole attachments, intercarrier
compensation, Universal Service Fund (“USF”), net neutrality, special access, 911 services, consumer protection including
cramming, bill shock, and handset unlocking, consumer privacy, and cybersecurity.

In addition, states and local governments are increasingly focused on the quality of service and support that wireless carriers
provide to their customers, including business practices (such as third-party billing, or “cramming”), and several agencies have
proposed or enacted new and potentially burdensome regulations in these areas.

We also cannot assure you that Congress will not amend the Communications Act, from which the FCC obtains its authority
and which serves to limit state authority, or enact other legislation in a manner that could be adverse to our business.
Enactment of additional state or federal regulations may increase our costs of providing services (including, through
contributions to universal service programs, which may require us to subsidize our competitors) or require us to change our
services. Failure to comply with applicable regulations could have a material adverse effect on our business, financial
condition and results of operations.

Furthermore, we could be subject to fines, forfeitures and other penalties (including, in extreme cases, revocation of our
licenses) for failure to comply with the FCC or other governmental regulations, even if any such non-compliance was
unintentional. The loss of any licenses, or any related fines or forfeitures, could adversely affect our business, results of
operations and financial condition.

Unfavorable outcomes of legal proceedings may adversely affect our business and financial condition.

We are regularly involved in a number of legal proceedings before various state and federal courts, the FCC, federal and state
and local regulatory agencies. Such legal proceedings, which can include lawsuits and government investigations and
inquiries, can be complex, costly, and highly disruptive to business operations by diverting the attention and energies of
management and other key personnel. The assessment of the outcome of legal proceedings, including our potential liability, if
any, is a highly subjective process that requires judgments about future events that are not within our control. The outcome of

litigation or other legal proceedings, including amounts ultimately received or paid upon settlement, may differ materially from
amounts accrued in the financial statements. In addition, litigation or similar proceedings could impose restraints on our
current or future manner of doing business. Such potential outcomes, including judgments, awards, settlements or orders,
could have a material adverse effect on our business, financial condition, operating results, or ability to do business.

We may be unable to protect our intellectual property.

We rely on a combination of patent, service mark, trademark, and trade secret laws and contractual restrictions to establish and
protect our proprietary rights, all of which offer only limited protection. The steps we have taken to protect our intellectual
property may not prevent the misappropriation of our proprietary rights. Moreover, others may independently develop
processes and technologies that are competitive to ours. We cannot be sure that any legal actions against such infringers will be
successful, even when our rights have been infringed. We cannot assure you that our patent applications or patents will be
granted or enforceable, or that the rights granted under any patent that may be issued will provide us with any competitive
advantages. In addition, we cannot assure you that any trademark or service mark registrations will be issued with respect to
pending or future applications or will provide adequate protection of our brands. We do not have insurance coverage for
intellectual property losses, and as such, a charge for an anticipated settlement, or an adverse ruling awarding damages,
represents unplanned loss events. Any of these factors could have a material adverse effect on our business, financial condition
and results of operations.

We use equipment, software, technology, and content in the operation of our business, which may subject us to third-
party intellectual property claims and we may be adversely affected by litigation involving our suppliers.

We are a defendant in numerous intellectual property lawsuits, including patent infringement lawsuits, which exposes us to the
risk of adverse financial impact either by way of significant settlement amounts or damage awards. As we adopt new
technologies and new business systems, and provide customers with new products and/or services, we may face additional
infringement claims. These claims could require us to cease certain activities or to cease selling relevant products and services.
These claims can be time-consuming and costly to defend, and divert management resources. In addition to litigation directly
involving our Company, our vendors and suppliers can be threatened with patent litigation and/or subjected to the threat of
disruption or blockage of sale, use, or importation of products, posing the risk of supply chain interruption to particular
products and associated services and exposing us to material adverse operational and financial impacts.

We increasingly offer products, directly and indirectly, that include highly regulated financial services, which may
subject us to additional state and federal regulations. These regulations may increase our compliance costs and failure
to comply with such regulations may adversely affect our business.

We currently offer direct financing to our customers through our EIP and indirect financing through an arrangement with a
bank. We may in the future offer additional financial services to our customers directly or indirectly through arrangements with
banking or other financial institutions. As a result of extending these services to our customers, our regulatory compliance
obligations have and may continue to increase. If we fail to comply with the financial services, consumer protection and other
regulations that apply to the financial services we offer, we may face the risk of increased consumer complaints and
examinations or enforcement actions by federal and state regulatory agencies, as well as regulatory fines, penalties and civil
litigation.

Our business may be impacted by new or changing tax laws or regulations and actions by federal, state, local or non-
U.S. agencies, or how judicial authorities apply tax laws.

We calculate and remit surcharges, taxes and fees to numerous federal, state, local and non-U.S jurisdictions in connection with
the products and services we provide. These fees include federal USF fees and common carrier regulatory fees. In addition,
many state and local governments impose various surcharges, taxes and fees on our sales and to our purchases of
telecommunications services from various carriers. In many cases, the applicability and method of calculating these
surcharges, taxes and fees may be uncertain, and our calculation, assessment and remittance of these amounts may be
contested. In the event that we have incorrectly assessed and remitted amounts that were due, we could be subject to fines and
penalties, which could materially impact our financial condition. In the event that federal, state, local and/or non-U.S.
municipalities were to significantly increase taxes and regulatory fees on our services or seek to impose new ones, it could have
a material adverse effect on our margins and financial and operational results.

Our wireless licenses are subject to renewal and may be revoked in the event that we violate applicable laws.

Our existing wireless licenses are subject to renewal upon the expiration of the 10-year or 15-year period for which they are
granted. Historically, the FCC has approved our license renewal applications. However, the Communications Act provides that

licenses may be revoked for cause and license renewal applications denied if the FCC determines that a renewal would not
serve the public interest. Many of our wireless licenses are subject to interim or final construction requirements and there is no
guarantee that the FCC will find our construction, or the construction of prior licensees, sufficient to meet the build-out or
renewal requirements. If we fail to timely file to renew any wireless license, or fail to meet any regulatory requirements for
renewal, including construction and substantial service requirements, we could be denied a license renewal. In addition, our
licenses are subject to our compliance with the terms set forth in the agreement pertaining to national security among Deutsche
Telekom, the Federal Bureau of Investigation, the Department of Justice, the Department of Homeland Security and the
Company. The failure of Deutsche Telekom or the Company to comply with the terms of this agreement could result in fines,
injunctions and other penalties, including potential revocation of our spectrum licenses. The FCC has pending a rulemaking
proceeding to reevaluate, among other things, its wireless license renewal showings and standards and may in this or other
proceedings promulgate changes or additional substantial requirements or conditions to its renewal rules, including revising
license build out requirements. Accordingly, we cannot assure you that the FCC will renew our wireless licenses upon their
expiration. If any of our wireless licenses were to be revoked or not renewed upon expiration, we would not be permitted to
provide services under that license, which could have a material adverse effect on our business, results of operations, and
financial condition.

Our business could be adversely affected by findings of product liability for health/safety risks from wireless devices
and transmission equipment, as well as by changes to regulations/RF emission standards.

We do not manufacture devices or other equipment sold by us, and we depend on our suppliers to provide defect-free and safe
equipment. Suppliers are required by applicable law to manufacture their devices to meet certain governmentally imposed
safety criteria. However, even if the devices we sell meet the regulatory safety criteria, we could be held liable with the
equipment manufacturers and suppliers for any harm caused by products we sell if such products are later found to have design
or manufacturing defects. We generally seek to enter into indemnification agreements with the manufacturers who supply us
with devices to protect us from losses associated with product liability, but we cannot guarantee that we will be fully protected
against all losses associated with a product that is found to be defective.

Allegations have been made that the use of wireless handsets and wireless transmission equipment, such as cell towers, may be
linked to various health concerns, including cancer and brain tumors. Lawsuits have been filed against manufacturers and
carriers in the industry claiming damages for alleged health problems arising from the use of wireless handsets. In addition, the
FCC recently indicated that it plans to gather additional data regarding wireless handset emissions to update its assessment of
this issue. The media has also reported incidents of handset battery malfunction, including reports of batteries that have
overheated. These allegations may lead to changes in regulatory standards. There have also been other allegations regarding
wireless technology, including allegations that wireless handset emissions may interfere with various electronic medical
devices (including hearing aids and pacemakers), airbags, and anti-lock brakes.

Additionally, there are safety risks associated with the use of wireless devices while operating vehicles or equipment. Concerns
over any of these risks and the effect of any legislation, rules or regulations that have been and may be adopted in response to
these risks could limit our ability to sell our wireless services.

Related to Ownership of our Common Stock

We are controlled by Deutsche Telekom, whose interests may differ from the interests of our other stockholders.

Deutsche Telekom beneficially owns a majority of the outstanding shares of our common stock. Through its control of the
voting power of our common stock and the rights granted to Deutsche Telekom in our certificate of incorporation and the
Stockholder’s Agreement, Deutsche Telekom controls the election of a majority of our directors and all other matters requiring
the approval of our stockholders. By virtue of Deutsche Telekom’s voting control, we are a “controlled company”, as defined
in the New York Stock Exchange, or NYSE, listing rules, and are not subject to NYSE requirements that would otherwise
require us to have a majority of independent directors, a nominating committee composed solely of independent directors, or a
compensation committee composed solely of independent directors.

In addition, our certificate of incorporation and the Stockholder’s Agreement restrict us from taking certain actions without
Deutsche Telekom’s prior written consent as long as Deutsche Telekom beneficially owns 30% or more of the outstanding
shares of our common stock, including the incurrence of debt (excluding certain permitted debt) if our consolidated ratio of
debt to cash flow for the most recently ended four full fiscal quarters for which financial statements are available would exceed
5.25 to 1.0 on a pro forma basis, the acquisition of any business, debt or equity interests, operations or assets of any person for
consideration in excess of $1 billion, the sale of any of our or our subsidiaries’ divisions, businesses, operations or equity
interests for consideration in excess of $1 billion, any change in the size of our board of directors, the issuances of equity
securities in excess of 10% of our outstanding shares or to repurchase debt held by Deutsche Telekom, the repurchase or

redemption of equity securities or the declaration of extraordinary or in-kind dividends or distributions other than on a pro rata
basis, or the termination or hiring of our chief executive officer. These restrictions could prevent us from taking actions that
our board of directors may otherwise determine are in the best interests of the Company and our stockholders or that may be in
the best interests of our other stakeholders.

Deutsche Telekom effectively has control over all matters submitted to our stockholders for approval, including the election or
removal of directors, changes to our certificate of incorporation, a sale or merger of our company and other transactions
requiring stockholder approval under Delaware law. Deutsche Telekom may have strategic, financial, or other interests
different from our other stockholders, including as the holder of a substantial amount of our indebtedness, and may make
decisions adverse to the interests of our other stockholders.

Future sales of our common stock, including sales by Deutsche Telekom, could have a negative impact on our stock
price.

We cannot predict the effect, if any, that market sales of shares or the availability of shares of our common stock will have on
the prevailing trading price of our common stock from time to time. Sales of a substantial number of shares of our common
stock could cause our stock price to decline.

Pursuant to the terms of the Stockholder’s Agreement, Deutsche Telekom was prohibited from transferring any shares of our
common stock for six months after the closing of the business combination, which occurred on April 30, 2013. This lock-up
period expired on October 30, 2013. During an eighteen month lock-up period beginning April 30, 2013, Deutsche Telekom is
only permitted to sell its shares of our common stock if approved by our board of directors (including a majority of directors
not affiliated with Deutsche Telekom), in transactions in which all of our other stockholders participate on the same basis, or
subject to certain limitations (including that resales by any transferee will be subject to the same limitations), in non-public
sales. After the expiration of this eighteen month lock-up period, Deutsche Telekom will be free to transfer its shares in public
sales without notice, as long as such transactions would not result in the transferee owning 30% or more of the outstanding
shares of our common stock. (If a transfer would exceed the 30% threshold, it is prohibited unless the transferee makes a
binding offer to purchase all of the other outstanding shares on the same price and terms.) The sale of shares of our common
stock by Deutsche Telekom (other than in transactions involving the purchase of all of our outstanding shares) could
significantly increase the number of shares available in the market, which could cause a decrease in our stock price. In
addition, even if Deutsche Telekom does not sell a large number of its shares into the market, its right to transfer a large number
of shares into the market may depress our stock price.

Our stock price may be volatile, and may fluctuate based upon factors that have little or nothing to do with our
business, financial condition, and operating results.

The trading prices of the securities of communications companies historically have been highly volatile, and the trading price
of our common stock may be subject to wide fluctuations. Our stock price may fluctuate in reaction to a number of events and
factors that may include, among other things:

•

our or our competitors’ actual or anticipated operating and financial results; introduction of new products and services
by us or our competitors or changes in service plans or pricing by us or our competitors;
analyst projections, predictions and forecasts, analyst target prices for our securities and changes in, or our failure to
meet, securities analysts’ expectations;

• Deutsche Telekom’s financial performance, results of operation, or actions implied or taken by Deutsche Telekom;
entry of new competitors into our markets or perceptions of increased price competition, including a price war;
•
•
our performance, including subscriber growth, and our financial and operational metric performance;
• market perceptions relating to our services, network, handsets and deployment of our 4G LTE platform and our access

to iconic handsets, services, applications or content;

• market perceptions of the wireless communications industry and valuation models for us and the industry;
•
•
•
•

changes in our credit rating or future prospects;
the availability or perceived availability of additional capital in general and our access to such capital;
actual or anticipated consolidation, or other strategic mergers or acquisition activities involving us or our competitors;
disruptions of our operations or service providers or other vendors necessary to our network operations; the general
state of the U.S. and world economies; and
availability of additional spectrum, whether by the announcement, commencement, bidding and closing of auctions for
new spectrum or the acquisition of companies that own spectrum.

•

In addition, the stock market has been volatile in the recent past and has experienced significant price and volume fluctuations,
which may continue for the foreseeable future. This volatility has had a significant impact on the trading price of securities

issued by many companies, including companies in the communications industry. These changes frequently occur irrespective
of the operating performance of the affected companies. Hence, the trading price of our common stock could fluctuate based
upon factors that have little or nothing to do with our business, financial condition and operating results.

Our stockholder rights plan could prevent a change in control of our Company in instances in which some stockholders
may believe a change in control is in their best interests.

We have a stockholder rights plan (“Rights Plan”) in effect. The Rights Plan will cause substantial dilution to a person or group
that attempts to acquire our Company on terms that our board of directors does not believe are in our and our stockholders’ best
interest. The Rights Plan is intended to protect stockholders in the event of an unfair or coercive offer to acquire the Company
and to provide our board of directors with adequate time to evaluate unsolicited offers. The Rights Plan may prevent or make
takeovers or unsolicited corporate transactions with respect to our Company more difficult, even if stockholders may consider
such transactions favorable, possibly including transactions in which stockholders might otherwise receive a premium for their
shares.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

As of December 31, 2013, we leased approximately 64,000 cell sites, 70 switching centers and 10 data centers, totaling
approximately 2.0 million square feet. In addition, we had 17 leased call centers, totaling approximately 1.2 million square
feet, and 31 leased warehouses, totaling approximately 580,000 square feet. We also leased approximately 2,400 retail
locations, including stores ranging in size from approximately 300 square feet to 11,000 square feet.

We currently lease office space totaling approximately 1.0 million square feet for our corporate headquarters in Bellevue,
Washington. We use these offices for engineering and administrative purposes. We also lease space throughout the United
States, totaling approximately 1.4 million square feet as of December 31, 2013, for use by our regional offices primarily for
administrative, engineering and sales purposes.

Item 3. Legal Proceedings

See Note 12 – Commitments and Contingencies of the Notes to the Consolidated Financial Statements included in Part II, Item
8 of this Form 10-K for information regarding certain legal proceedings in which we are involved.

Item 4. Mine Safety Disclosures

None.

PART II.

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity
Securities

Market Information

Our common stock has traded on the New York Stock Exchange (“NYSE”) under the symbol “TMUS” since May 1, 2013, the
first trading day after the closing of the business combination with MetroPCS. As of December 31, 2013, there were 336
registered stockholders of record of our common stock, but we estimate the total number of stockholders to be much higher as a
number of our shares are held by brokers or dealers for their customers in street name. For periods prior to the closing of the
business combination with MetroPCS, the prices represent the high and low sales prices of our common stock, as reported by
the NYSE under the symbol “PCS”, adjusted to reflect the 1-for-2 reverse stock split effected on April 30, 2013, but not
adjusted on a per share basis for the aggregate cash payment of $1.5 billion to MetroPCS stockholders in connection with the
business combination. See also Note 2 – Business Combinations of the Notes to the Consolidated Financial Statements
included in Part II, Item 8 of this Form 10-K.

The high and low common stock sales prices per share were as follows:

Year Ended December 31, 2013:

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Year Ended December 31, 2012:

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

High

Low

22.08

25.02

26.66

34.10

24.34

18.62

24.96

29.02

18.28

16.01

22.74

24.90

15.72

11.06

12.14

19.26

We have never paid or declared any cash dividends on our common stock, and we do not intend to declare or pay any cash
dividends on our common stock in the foreseeable future. Our unsecured revolving credit facility with Deutsche Telekom and
the indentures and supplemental indentures governing our long-term debt, excluding capital leases, contain covenants that,
among other things, restrict our ability to declare or pay dividends. We currently intend to retain future earnings, if any, to
invest in our business. Subject to Delaware law, our board of directors will determine the payment of future dividends on our
common stock, if any, and the amount of any dividends in light of:

•
•
•
•
•
•

any applicable contractual restrictions limiting our ability to pay dividends;
our earnings and cash flows;
our capital requirements;
our future needs for cash;
our financial condition; and
other factors our board of directors deems relevant.

Item 6. Selected Financial Data

The following selected financial data are derived from our consolidated financial statements. In connection with the business
combination with MetroPCS, the selected financial data prior to May 1, 2013 represents T-Mobile USA’s historical financial
data. The data below should be read in conjunction with “Risk Factors” included in Part 1, Item 1A, “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” included in Part II, Item 7 and “Financial
Statements and Supplementary Data” included in Part II, Item 8 of this Form 10-K.

Selected Financial Data (in millions, except per share and customer amounts):

As of and for the Year Ended December 31,

2013

2012

2011

2010

2009

Statement of Operations Data

Total service revenues

Total revenues

Operating income (loss)

Total other expense, net

Income tax expense (benefit)

Net income (loss)

Earnings (loss) per share:

Basic

Diluted

Other Financial Data

Net cash provided by operating activities

Purchases of property and equipment

Total customers (in thousands)

Balance Sheet Data

Cash and cash equivalents

Property and equipment, net

Spectrum licenses

Total assets

Total debt, excluding long-term financial
obligation

Stockholders’ equity

19,068

17,213

18,481

18,733

24,420

996

(945)

0.05

19,719

(6,397)

(589)

350

(7,336)

(13.70)

20,618

(4,279)

(655)

(216)

(4,718)

(8.81)

21,347

2,705

(526)

822

1,354

2.53

3,545

3,862

4,980

4,905

(4,025)

46,684

(2,901)

33,389

(2,729)

33,185

(2,819)

33,734

5,891

394

390

109

15,349

18,122

49,953

20,189

14,245

12,807

14,550

33,622

14,945

6,115

12,703

12,814

40,609

15,627

15,785

13,213

15,282

46,291

16,293

20,492

18,960

21,531

3,056

(720)

860

1,470

2.75

5,437

(3,687)

33,790

207

13,192

15,256

46,774

13,749

24,250

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Except as expressly stated, the financial condition and results of operations discussed throughout Management’s Discussion
and Analysis of Financial Condition and Results of Operations (“MD&A”) are those of T-Mobile US, Inc. and its consolidated
subsidiaries.

Overview

The MD&A is intended to provide a reader of our financial statements with a narrative explanation from the perspective of
management of our financial condition, results of operations, liquidity and certain other factors that may affect future results.
The MD&A is provided as a supplement to, and should be read in conjunction with, our audited Consolidated Financial
Statements for the three years ended December 31, 2013 included in Part II, Item 8 of this Form 10-K. Unless expressly stated
otherwise, the comparisons presented in this MD&A refer to the same period in the prior year. T-Mobile’s MD&A is presented
in the following sections:

Financial Highlights

Performance Measures

•
• Other Highlights
• Results of Operations
•
• Liquidity and Capital Resources
• Contractual Obligations
• Off-Balance Sheet Arrangements
• Related Party Transactions
• Restructuring Costs
• Critical Accounting Policies and Estimates
• Recently Issued Accounting Standards

Financial Highlights

• Total revenues increased 24% to $24.4 billion in 2013 compared to $19.7 billion in 2012.
•
• Total net customer additions were 4,377,000 for year ended December 31, 2013, a significant improvement compared

Service revenues increased 11% to $19.1 billion in 2013 compared to $17.2 billion in 2012.

to 203,000 net customer additions in 2012.

• Branded postpaid churn of 1.7% for the year ended December 31, 2013, a 70 basis point improvement compared to

2.4% in 2012.

• Adjusted EBITDA of $4.9 billion for the year ended December 31, 2013 consistent with 2012.
• Cash capital expenditures for property and equipment were $4.0 billion for the year ended December 31, 2013

compared to $2.9 billion in 2012.

Other Highlights

Un-carrier value proposition – In March 2013, we launched phase 1.0 of our Un-carrier value proposition by introducing the
unlimited Simple Choice plans, which do not require an annual service contract. Qualified customers are eligible for device
financing with EIP, which provides customers with low out-of-pocket costs on popular devices. In July 2013, we unveiled
phase 2.0 of our Un-carrier value proposition, JUMP!, a groundbreaking approach to provide more frequent phone upgrades.
At the same time we launched Simple Choice No Credit, which provides families an affordable multi-line service option
without credit checks. In October 2013, we unveiled phase 3.0 of our Un-carrier value proposition, which provides customers
reduced calling rates from the United States to international destinations and reduced roaming fees, including 2G data while
traveling abroad in over 100 countries at no extra cost. In November 2013, we began to offer the Apple iPad Air and iPad mini.
In addition, every T-Mobile tablet user can receive up to 200 MB of free 4G LTE data every month for as long as they own
their tablet and use it on our network, even if they are not yet a T-Mobile mobile internet customer. In January 2014, we
launched phase 4.0 of our Un-carrier value proposition, which reimburses customers’ early termination fees when they switch
from other carriers and trade in their eligible device. The reimbursement of early termination fees will be recorded as a
reduction of equipment sales revenues, and will accordingly have a negative impact on both revenue and Adjusted EBITDA.

Business combination with MetroPCS – On April 30, 2013, the business combination of T-Mobile USA and MetroPCS was
completed. See Note 2 – Business Combinations of the Notes to the Consolidated Financial Statements included in Part II,
Item 8 of this Form 10-K. The business combination united two wireless innovators with one common vision: to bring wireless
consumers exciting new choices while delivering an exceptional experience. On May 1, 2013, the combined company, T-
Mobile US, Inc., began trading on the NYSE under the ticker “TMUS.” Since the business combination, T-Mobile has
achieved significant milestones in the integration of the MetroPCS business. In addition, we have extended the geographic
presence of the MetroPCS brand to 30 additional markets and have launched more than 1,700 distribution points in these new
markets as of December 31, 2013.

New product offerings – In addition to the new products introduced through Un-carrier initiatives 1.0 through 4.0, we began
selling the iPhone at all company-owned stores in combination with the new Simple Choice plans in April 2013. Additionally,
in November 2013, we began to offer the Apple iPad Air and iPad mini, both with Wi-Fi + Cellular enabled network
technology. In addition, we began to offer qualifying tablet owners up to 200 MB of free 4G LTE data every month for as long
as they own their tablet and use it on our network.

Debt and equity issuances – In connection with the business combination with MetroPCS, Deutsche Telekom recapitalized T-
Mobile USA by retiring T-Mobile USA’s long-term debt to affiliates with an aggregate principal amount of $14.5 billion and all
related derivative instruments in exchange for new senior unsecured notes in an aggregate principal amount of $11.2 billion and
additional paid-in capital. In August 2013 and November 2013, we completed offerings of new senior unsecured notes in
aggregate principal amounts of $500 million and $2.0 billion, respectively. Also in November 2013, we completed a public
offering of 72,765,000 shares of our common stock at a price to the public of $25 per share.

Spectrum purchases – In October 2013, we closed the purchase of 10 MHz of AWS spectrum from U.S. Cellular for $308
million in cash. The spectrum covers a total of 32 million people in 29 markets. In January 2014, we entered into agreements
with Verizon for the acquisition of 700 MHz A-Block spectrum licenses in exchange for approximately $2.4 billion in cash and
the transfer of certain AWS spectrum and PCS spectrum. The spectrum licenses to be acquired from Verizon cover more than
150 million people, including approximately 50% of the U.S. population and 70% of our existing customer base, in 23 markets.
The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to occur in
mid-2014. These transactions are expected to further enhance our portfolio of U.S. nationwide broadband spectrum and enable
the expansion of LTE coverage to new markets.

Results of Operations

Set forth below is a summary of consolidated results:

(in millions)

Revenues

Branded postpaid revenues

Branded prepaid revenues

Wholesale revenues

Roaming and other service revenues

Total service revenues

Equipment sales

Other revenues

Total revenues

Operating expenses

Cost of services, exclusive of depreciation and amortization shown
separately below

Cost of equipment sales

Selling, general and administrative

Depreciation and amortization

MetroPCS transaction and integration costs

Impairment charges

Restructuring costs

Other, net

Total operating expenses

Operating income (loss)

Other income (expense)

Interest expense to affiliates

Interest expense

Interest income

Other income (expense), net

Total other expense, net

Income (loss) before income taxes

Income tax expense (benefit)

Net income (loss)

NM – Not Meaningful

Year Ended December 31,

2013

2012

2011

Percentage
Change 2013
Versus 2012

Percentage
Change 2012
Versus 2011

13,166

14,521

4,945

613

344

19,068

5,033

319

24,420

5,279

6,976

7,382

3,627

108

—

(2)

23,424

996

(678)

(545)

189

(945)

1,715

544

433

17,213

2,242

264

19,719

4,661

3,437

6,796

3,187

8,134

(191)

26,116

(6,397)

(661)

—

(5)

(589)

(6,986)

350

(7,336) $

16,230

1,307

443

501

18,481

1,901

236

20,618

4,952

3,646

6,728

2,982

—

6,420

—

169

24,897

(4,279)

(670)

—

(10)

(655)

(4,934)

(216)

(4,718)

(9)%

13 %

(21)%

11 %

124 %

21 %

24 %

13 %

103 %

9 %

14 %

(36)%

(99)%

(10)%

3 %

145 %

60 %

(95)%

(11)%

31 %

23 %

(14)%

(7)%

18 %

12 %

(4)%

(6)%

1 %

7 %

27 %

5 %

49 %

(1)%

(50)%

(10)%

42 %

55 %

Year Ended December 31, 2013 Compared to Year Ended December 31, 2012

Revenues

Branded postpaid revenues decreased $1.4 billion, or 9%, for the year ended December 31, 2013, compared to the same
period in 2012. The decrease was primarily attributable to lower average revenue per user (“ARPU”). See “Performance
Measures” for a description of ARPU. Branded postpaid ARPU was negatively impacted by the growth of our Value and
Simple Choice plans which have lower priced rate plans than other branded postpaid rate plans. Compared to other traditional
bundled postpaid price plans, Value and Simple Choice plans result in lower service revenues but higher equipment sales at the
time of the purchase as the plans do not include a bundled sale of a discounted handset. Branded postpaid customers on Value
and Simple Choice plans more than doubled over the past twelve months to 69% of the branded postpaid customer base at
December 31, 2013, compared to 30% at December 31, 2012.

Branded prepaid revenues increased $3.2 billion for the year ended December 31, 2013, compared to the same period in
2012. Of the increase, approximately $2.9 billion was due to the inclusion of the operating results of MetroPCS since May 1,
2013. Excluding MetroPCS operating results, the increase for the year ended December 31, 2013 resulted primarily from an
increase in average branded prepaid customers driven by the success of T-Mobile’s monthly prepaid service plans, including
data services that also have higher ARPU.

Wholesale revenues increased $69 million, or 13%, for the year ended December 31, 2013, compared to the same period in
2012. The increase was primarily attributable to growth of the average number of MVNO customers for the period. The
increase in MVNO customers was due in part to growth of government subsidized Lifeline programs offered by our MVNO
partners along with MVNO partnerships launched in the fourth quarter of 2012. However, a significant portion of our MVNO
partners’ recent customer growth has been in lower ARPU products that result in revenues that do not increase in proportion
with customer growth.

Roaming and other service revenues decreased $89 million, or 21%, for the year ended December 31, 2013, compared to the
same period in 2012. The decrease was primarily attributable to lower early termination fees of $58 million due to the no
annual service contract features of Simple Choice plans launched in March 2013. Additionally, international voice and
domestic data revenues decreased due to rate reductions negotiated with certain roaming partners.

Equipment sales increased $2.8 billion, or 124%, for the year ended December 31, 2013, compared to the same period in
2012. The increase was primarily attributable to significant growth in the number of handsets sold and an increase in the rate
of customers upgrading their handset. Additionally, equipment sales increased due to growth in the sales of smartphones,
which have a higher average revenue per unit sold as compared to other handsets. This was driven by our introduction of both
the Apple iPhone 5 and the Samsung Galaxy S®4 in the second quarter of 2013, and the Apple iPhone 5s and iPhone 5c in the
third quarter of 2013. Additionally, the inclusion of MetroPCS’s operating results since May 1, 2013 contributed
approximately $450 million to the increase in equipment sales for the year ended December 31, 2013.

We financed $3.3 billion of equipment sales revenues through equipment installment plans during the year ended December 31,
2013, a significant increase from $946 million in the year ended December 31, 2012 resulting from growth in Value and Simple
Choice Plans. Additionally, customers had associated equipment installment plan billings of $1.5 billion in the year ended
December 31, 2013, compared to $450 million in the year ended December 31, 2012.

Other revenues increased $55 million, or 21%, for the year ended December 31, 2013, compared to the same period in 2012
due primarily to an increase in imputed rental income on wireless communication tower sites.

Operating Expenses

Cost of services increased $618 million, or 13%, for the year ended December 31, 2013, compared to the same period in 2012.
Of the increase, approximately $800 million was due to the inclusion of the operating results of MetroPCS since May 1, 2013.
Cost of services, excluding MetroPCS, decreased due to lower roaming expenses of $126 million related to reduced roaming
rates negotiated with certain roaming partners. Additionally, due to the network transition to enhanced telecommunication lines
with higher capacity, we were able to accommodate higher data volumes at a lower cost.

Cost of equipment sales increased $3.5 billion, or 103%, for the year ended December 31, 2013, compared to the same period
in 2012. The increase in cost of equipment sales was primarily attributable to a 67% increase in the volume of handsets sold
during the year ended December 31, 2013. The increase was partially attributable to higher average cost per unit of each
handset sold due in part to a 90% increase in the sale of smartphones units for the year ended December 31, 2013, compared to
the same period in 2012. Additionally, the inclusion of MetroPCS’s operating results since May 1, 2013 contributed
approximately $950 million to the increase in cost of equipment sales for the year ended December 31, 2013.

Selling, general and administrative increased $586 million, or 9%, for the year ended December 31, 2013, compared to the
same period in 2012. Of the increase, approximately $650 million was attributable to the inclusion of operating results of
MetroPCS since May 1, 2013. Selling, general and administrative expenses, excluding MetroPCS, decreased $61 million, or
1%, primarily driven by $241 million in lower bad debt expense, net of recoveries, as a result of improved credit quality of our
customer portfolio. This decrease was partially offset by higher commission expenses driven by increased gross customer
additions during the year ended December 31, 2013.

Depreciation and amortization increased $440 million, or 14%, for the year ended December 31, 2013, compared to the same
period in 2012. Depreciation and amortization attributable to MetroPCS since May 1, 2013 was approximately $550 million.
Depreciation and amortization expenses, excluding MetroPCS, decreased in 2013, as 2012 included increased depreciation
expense due to the shortening of useful lives of certain network equipment to be replaced in connection with network
modernization efforts.

MetroPCS transaction and integration costs increased $101 million for the year ended December 31, 2013, compared to the
same period in 2012 due primarily to personnel related costs associated with the change in control, professional services costs
and network integration expenses associated with the business combination between T-Mobile USA and MetroPCS. See also
25

Note 2 – Business Combinations of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form
10-K.

Restructuring costs of $54 million for the year ended December 31, 2013 were related to our 2013 cost restructuring program
to align our operations to our new strategy and position the company for future growth. Costs associated with the 2013
restructuring program primarily consist of severance and other personnel-related costs. Restructuring costs of $85 million for
the year ended December 31, 2012 related primarily to the consolidation of our call center operations in 2012.

Other, net for the year ended December 31, 2013 reflects a $2 million gain on a spectrum license transaction. Other, net for
the year ended December 31, 2012, respectively, reflects a $191 million gain due primarily to an AWS spectrum license
exchange, partially offset by costs associated with the terminated AT&T acquisition of T-Mobile USA.

Other Income (Expense)

Interest expense to affiliates increased $17 million, or 3%, for the year ended December 31, 2013, compared to the same
period in 2012. Prior to the closing of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile
USA by retiring its long-term debt to affiliates of $14.5 billion and all related derivative instruments, in exchange for new
senior unsecured notes of $11.2 billion. Later in 2013, Deutsche Telekom sold the senior non-reset notes resulting in an
aggregate principal reduction of $5.6 billion in long-term debt to affiliates. The increase in interest expense to affiliates was
primarily due to losses related to the retirement of derivative instruments associated with the extinguishment of the long-term
debt to affiliates prior to the business combination, and higher average interest rates on the new senior unsecured notes. See
also Note 7 – Debt and Note 13 – Additional Financial Information of the Notes to the Consolidated Financial Statements
included in Part II, Item 8 of this Form 10-K.

Interest expense increased $545 million for the year ended December 31, 2013, compared to the same period in 2012. The
increase in interest expense is primarily the result of MetroPCS long-term debt assumed during the second quarter of 2013 in
connection with the business combination, as well as new senior notes issued during 2013. Additionally, interest expense of
approximately $200 million for the year ended December 31, 2013 related to the long-term financial obligation resulting from
the Tower Transaction that closed on November 30, 2012. The Tower Transaction and related impacts are further described in
Note 8 – Tower Transaction and Related Long-Term Financial Obligation of the Notes to the Consolidated Financial Statements
included in Part II, Item 8 of this Form 10-K.

Interest income increased $112 million for the year ended December 31, 2013, compared to the same period in 2012. The
increase in interest income is primarily the result of the significant growth in handsets financed through our equipment
installment plans for the year ended December 31, 2013. Deferred interest associated with our EIP receivables is imputed at
the time of sale and then recognized over the financed installment term.

Other income (expense), net increased $94 million for the year ended December 31, 2013, compared to the same period in
2012. The increase in other income (expense), net was primarily due to the recognition of gains related to the retirement of
derivative instruments associated with the pre-business combination long-term debt to affiliates. See also Note 7 – Debt and
Note 13 – Additional Financial Information of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of
this Form 10-K.

Income Taxes

Income tax expense decreased $334 million for the year ended December 31, 2013, compared to the same period in 2012. The
decrease in income tax expense was primarily due to lower pre-tax income, exclusive of impairment charges. The effective tax
rate was 31.4% and (5.0)% for the years ended December 31, 2013 and 2012, respectively. The change in the effective tax rate
for 2013 compared to 2012 was primarily due to the impact of the goodwill impairment recorded in 2012.

Guarantor Subsidiaries

Pursuant to the indenture and the supplemental indentures, the long-term debt, excluding capital leases, are fully and
unconditionally guaranteed, jointly and severally, on a senior unsecured basis by T-Mobile US, Inc. (“Parent”) and certain of T-
Mobile USA’s (“Issuer”) 100% owned subsidiaries (“Guarantor Subsidiaries”). In 2013, T-Mobile entered into an agreement
with Cook Inlet Voice and Data Services, Inc. (“Cook Inlet”) to acquire all of Cook Inlet's interest in Cook Inlet/VoiceStream
GSM VII PCS Holdings LLC, (“CIVS VII”), a fully consolidated Non-Guarantor Subsidiary. The transaction was completed
in July 2013 and resulted in CIVS VII becoming an indirect wholly-owned subsidiary of T-Mobile USA. CIVS VII was
subsequently combined with, and the net assets transferred to, T-Mobile License LLC, a wholly-owned Restricted Subsidiary of
26

T-Mobile USA. As a result, the net assets of CIVS VII were included in the Guarantor Subsidiaries condensed consolidating
balance sheet information. The guarantees of the long-term debt were unchanged by the transaction. See Note 14 – Guarantor
Financial Information of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K for
more information regarding the transaction.

The financial condition of the Parent, Issuer and Guarantor Subsidiaries is substantially similar to the Company’s consolidated
financial condition. Similarly, the results of operations of the Parent, Issuer and Guarantor Subsidiaries are substantially
similar to the Company’s consolidated results of operations. The change in the financial condition of the Non-Guarantor
Subsidiaries was primarily due to the transfer of the net assets of CIVS VII into the Guarantor Subsidiaries consolidating
balance sheet information as described above. As of December 31, 2013 and December 31, 2012, the most significant
components of the financial condition of the Non-Guarantor Subsidiaries were property and equipment of $595 million and
$678 million, respectively, spectrum licenses of none and $220 million, respectively, long-term financial obligations of $2.1
billion and $2.1 billion, respectively, and stockholders’ equity of $1.3 billion and $1.0 billion, respectively. The most
significant components of the results of operations of our Non-Guarantor Subsidiaries for the year ended December 31, 2013
were services revenues of $823 million, offset by costs of equipment sales of $552 million resulting in a net comprehensive
loss of $52 million. Similarly, for the year ended December 31, 2012, services revenues of $712 million were offset by costs of
equipment sales of $449 million, resulting in a net comprehensive income of $72 million.

Year Ended December 31, 2012 Compared to the Year Ended December 31, 2011

Revenues

Branded postpaid revenues decreased by $1.7 billion, or 11%, for the year ended December 31, 2012, compared to the same
period in 2011. The decrease was primarily attributable to a 9% year-over-year decline in the number of average branded
postpaid customers. Branded postpaid revenues were also negatively impacted by the growth of our Value plans which have
lower ARPU than our other branded postpaid rate plans. Compared to other traditional bundled price plans, Value plans result
in lower service revenues over the service contract period, but higher equipment sales at the time of the sale, as Value plans do
not include a bundled sale of a heavily discounted handset. These decreases were partially offset by an increase in data
revenues from customer adoption of smartphones with accompanying data plans. Smartphone customers accounted for 61% of
total branded postpaid customers at December 31, 2012, up from 49% at December 31, 2011.

Branded prepaid revenues increased by $408 million or 31% for the year ended December 31, 2012, compared to the same
period in 2011. The increase was primarily attributable to the 21% growth of branded prepaid customers in 2012 driven by the
success of our Monthly4G plans, which were introduced in the second quarter of 2011. In addition, branded prepaid ARPU
increased by 11% during 2012.

Wholesale revenues increased by $101 million, or 23% for the year ended December 31, 2012, compared to the same period in
2011. The increase was primarily attributable to the 15% growth of average MVNO customers during 2012.

Roaming and other service revenues decreased by $68 million, or 14% for the year ended December 31, 2012, compared to
the same period in 2011. The decrease was primarily attributable to lower data roaming revenues due to rate reductions with
certain roaming partners.

Equipment sales increased by $341 million, or 18% for the year ended December 31, 2012, compared to the same period in
2011. Equipment sales increased in 2012 from higher revenue per unit sold on lower unit sales volumes. The higher revenue
per unit sold was primarily attributable to equipment sales changes in connection with our Value plans. For each handset sold
on a Value plan, we benefit from increased equipment revenue, compared to traditional bundled price plans that typically offer
a discounted handset combined with higher service charges. Additionally, smartphone sales growth contributed to the year-
over-year increase in equipment sales as smartphones have higher revenue per unit sold compared to other phones.

Other revenues increased by $28 million, or 12% for the year ended December 31, 2012, compared to the same period in
2011. The increase is primarily due to higher co-location rental income from leasing out space at our owned wireless
communication towers to third parties.

Operating Expenses

Cost of services decreased by $291 million, or 6% for the year ended December 31, 2012, compared to the same period in
2011. The decrease was attributable to lower roaming expenses related to a decline in customer base and associated usage
compared to the year ended December 31, 2011. Additionally, due to the network transition to enhanced telecommunication

lines in 2012, we were able to accommodate higher data volumes at a lower cost year-over-year resulting in lower cost of
services.

Cost of equipment sales decreased by $209 million, or 6% for the year ended December 31, 2012, compared to the same
period in 2011. The decrease was primarily attributable to the 10% decline in handset unit sales volumes, partially offset by
higher costs per handset sold from an increased share of smartphones sold in 2012.

Selling, general and administrative increased by $68 million, or 1% for the year ended December 31, 2012, compared to the
same period in 2011. The slight decrease was primarily attributable to lower employee-related expenses in 2012 as a result of
restructuring initiatives implemented in the first half of 2012 and lower commissions costs from fewer branded postpaid
customer gross customer additions in 2012. This increase was partially offset by higher advertising expenses associated with
new promotional campaigns launched in 2012.

Depreciation and amortization increased by $205 million, or 7% for the year ended December 31, 2012, compared to the
same period in 2011. The increase was due to additional depreciation of approximately $268 million recorded as a result of
adjustments to useful lives on equipment to be replaced in connection with the network modernization efforts (See “Critical
Accounting Polices and Estimates”).

Impairment charges of $8.1 billion were recorded on goodwill for the year ended December 31, 2012, compared to
impairment charges of $6.4 billion recorded on goodwill and spectrum licenses for the year ended December 31, 2011. We
determined that the business combination with MetroPCS announced in October 2012 was a triggering event for a goodwill
impairment assessment. The fair value of T-Mobile USA implied by using the market value of MetroPCS and the exchange
terms contemplated in the business combination agreement was less than the carrying amount, including goodwill, of T-
Mobile's single reporting unit as of September 30, 2012. We used the fair value implied by the transaction to estimate the fair
value of the reporting unit in step one of our goodwill impairment test. Because the first step in the impairment process
indicated that the carrying value exceeded the fair value of the reporting unit as of September 30, 2012, we performed the
second step in the goodwill impairment test. As a result of the second step of the impairment analysis, we concluded that the
implied goodwill as of September 30, 2012 was $0, and recognized a non-cash impairment charge of $8.1 billion. We attribute
this impairment to the business impacts from the highly competitive environment in the U.S. wireless telecommunications
industry and the ongoing challenges in attracting and retaining branded postpaid customers.

Restructuring costs of $85 million for the year ended December 31, 2012 relate to consolidating our call center operations
from 24 to 17 facilities, as well as restructuring and optimizing operations in other parts of the business in an effort to reduce
operating costs. No restructuring costs were incurred during the year ended December 31, 2011.

Other, net in the operating expenses section reflects the net effect of transaction-related gains and losses. The net gain of $191
million in 2012 primarily relates to a gain recorded on an AWS spectrum license exchange, partially offset by expenses
associated with the terminated AT&T acquisition of T-Mobile USA. The net expense of $169 million in 2011 primarily related
to employee-related costs associated with the terminated AT&T acquisition of T-Mobile USA.

Other Income (Expense)

Interest expense to affiliates was relatively consistent at $661 million for the year ended December 31, 2012, compared to
$670 million for the year ended December 31, 2011.

Income Taxes

Income tax expense was $350 million for the year ended December 31, 2012, compared to an income tax benefit of $216
million for the year ended December 31, 2011. The increase in income tax expense was primarily due to the tax benefit
recorded in 2011 related to impairment charges on spectrum licenses. The effective tax rate was (5.0)% and 4.4% for the years
ended December 31, 2012 and 2011, respectively. The change in the effective tax rate for 2012 compared to 2011 was
primarily due to the impact of the goodwill impairment recorded in 2012.

Guarantor Subsidiaries

million, long-term financial obligations of $2.1 billion and stockholders’ equity of $1.0 billion. The most significant
components of the results of operations of our Non-Guarantor Subsidiaries for the year ended December 31, 2012 were services
revenues of $712 million, offset by costs of equipment sales of $449 million resulting in a net comprehensive income of $72
million. Similarly, for the year ended December 31, 2011, services revenues of $635 million were offset by costs of equipment
sales of $389 million, resulting in a net comprehensive income of $47 million.

Performance Measures

In managing our business and assessing financial performance, we supplement the information provided by the financial
statements with other operating or statistical data and non-GAAP financial measures. These operating and financial measures
are utilized by our management to evaluate our operating performance and, in certain cases, our ability to meet liquidity
requirements. Although companies in the wireless industry may not define each of these measures in precisely the same way,
we believe that these measures facilitate key operating performance comparisons with other companies in the wireless industry.

Total Customers

A customer is generally defined as a SIM card with a unique T-Mobile identity number which generates revenue. Branded
customers include customers that are qualified either for postpaid service, where they generally pay after incurring service, or
prepaid service, where they generally pay in advance. Wholesale customers include M2M and MVNO customers that operate
on our network, but are managed by wholesale partners.

The following table sets forth the number of ending customers:

(in thousands)

Customers, end of period

Branded postpaid customers

Branded prepaid customers

Total branded customers

M2M customers

MVNO customers

Total wholesale customers

Total customers, end of period

Note: Certain customer numbers may not add due to rounding.

The following table sets forth the number of net customer additions (losses):

(in thousands)

Net customer additions (losses)

Branded postpaid customers

Branded prepaid customers

Total branded customers

M2M customers

MVNO customers

Total wholesale customers

Total net customer additions (losses)

Acquired customers

December 31,
2013

December 31,
2012

December 31,
2011

22,299

15,072

37,371

3,602

5,711

9,313

46,684

20,293

5,826

26,119

3,090

4,180

7,270

33,389

22,367

4,819

27,186

2,429

3,569

5,999

33,185

Year Ended December 31,

2013

2012

2011

2,006

328

2,334

512

1,531

2,043

4,377

8,918

(2,074)

1,007

(1,067)

660

610

1,270

203

—

(2,206)

321

(1,885)

556

780

1,336

(549)

—

Net customer additions, excluding customers of MetroPCS acquired as a result of the business combination, were 4,377,000 for
the year ended December 31, 2013, compared to net customer additions of 203,000 in the same period in 2012. At
December 31, 2013, we had approximately 46.7 million customers, a 40% increase from the customer total as of December 31,
2012. The increase was primarily driven by the addition of MetroPCS’s customer base due to the completion of the business
combination during the second quarter of 2013, which increased the branded prepaid customer base by 8,918,000.
Additionally, the increase was the result of growth in all customer categories, as described below.

Net customer additions were 203,000 for the year ended December 31, 2012, compared to 549,000 net customer losses in the
same period in 2011. At December 31, 2012, we had 33.4 million customers, an approximate 1% increase from the customer

total as of December 31, 2011. The increase in total customers was primarily driven by lower branded customer churn and
higher branded prepaid customer additions.

Branded Customers

Branded postpaid net customer additions were 2,006,000 for the year ended December 31, 2013, an improvement compared to
branded postpaid net customer losses of 2,074,000 for the same period in 2012. The significant improvement in customer
development was attributable to improved branded postpaid churn, increased new customer activations and qualified upgrades
of branded prepaid customers to branded postpaid plans. Branded postpaid net customer additions benefited from the launch of
the Simple Choice plans as a component of the Un-carrier strategy as well as the introduction of the JUMP! program and
launch of popular devices in 2013. These factors drove incremental gross additions for branded postpaid customers and
improved churn as further described below.

Branded postpaid net customer losses slightly improved to 2,074,000 for the year ended December 31, 2012, compared to
2,206,000 for the same period in 2011. The decrease in branded postpaid net customer losses is primarily attributable to
improved branded postpaid churn partially offset by fewer branded postpaid customer gross additions. The decline in customer
gross additions was primarily a result of competitive pressure, including our competitors' advertising campaigns and
promotional offerings such as handset discounts and the launch of the iPhone 5, which we did not carry until 2013.

Branded prepaid net customer additions, excluding customers of MetroPCS acquired as a result of the business combination,
were 328,000 for the year ended December 31, 2013, compared to branded prepaid net customer additions of 1,007,000 for the
same period in 2012. The decrease was partly a result of qualified upgrades of branded prepaid customers to branded postpaid
plans as the Un-carrier strategy eliminates annual service contracts to credit worthy customers that have historically been
utilizing prepaid products. In addition, the robust competitive environment in the prepaid market resulted in higher branded
prepaid customer deactivations, partially offset by higher branded prepaid gross customer additions due in part to the expansion
of the MetroPCS brand, including the launch in 30 additional markets since the completion of the business combination.

Branded prepaid net customer additions were 1,007,000 for the year ended December 31, 2012, compared to 321,000 branded
prepaid net customer additions for the same period in 2011. This significant improvement was due to the continued success of
T-Mobile's Monthly4G plans that were launched in the second quarter of 2011. The Monthly 4G plans are a branded prepaid
service offering that provides customers with a variety of plan choices including unlimited talk, text and web service on the T-
Mobile nationwide 4G network at flat monthly rates without the requirement of an annual contract.

Wholesale

Wholesale net customer additions were 2,043,000 for the year ended December 31, 2013, compared to wholesale net customer
additions 1,270,000 for the same period in 2012. The growth in MVNO customers was due in part to government subsidized
Lifeline programs offered by our MVNO partners along with ongoing growth from MVNO partnerships launched in the fourth
quarter of 2012. MVNO partners often have relationships with multiple carriers and through steering their business towards
carriers offering promotions can impact specific carriers’ results.

Wholesale net customer additions were 1,270,000 for the year ended December 31, 2012, compared to net customer additions
of 1,336,000 for the same period in 2011. The moderate decline in wholesale net customer additions was primarily due to
fewer MVNO gross customer additions and higher M2M customer churn. MVNO customers grew, although at a slightly
slower rate, in 2012 versus 2011. Increased M2M customer churn resulted primarily from M2M partners adjusting their lines
of service to align with their customer demand.

Churn

Churn is defined as the number of customers whose service was discontinued, expressed as a percentage of the average number
of customers during the specified period. The number of customers whose service was discontinued is presented net of
customers that subsequently have their service restored. We believe that churn, which is a measure of customer retention and
loyalty, provides relevant and useful information and is used by management to evaluate the operating performance of our
business.

Branded postpaid churn

Branded prepaid churn

Year Ended December 31, 2013

2013

2012

2011

1.7%

5.4%

2.4%

6.4%

2.7%

6.7%

Branded postpaid churn was 1.7% for the year ended December 31, 2013, compared to 2.4% for the year ended December 31,
2012. The significant improvements were due in part to the continued focus on churn reduction initiatives, such as improving
network quality and the customer sales experience. Additionally, our no annual service contract Un-carrier strategy announced
in the first quarter of 2013 gained positive traction with customers. We also began offering new handsets in 2013, such as
Apple iPhone products and the Samsung Galaxy S4, which improved customer retention compared to the same periods in 2012.

Branded postpaid churn was 2.4% for the year ended December 31, 2012, compared to 2.7% for the year ended December 31,
2011. The year over year decrease in branded postpaid churn in 2012 was the result of the strategic phase-out of certain
products that historically had higher churn and the continued focus on churn reduction initiatives. Additionally, in 2011 we
experienced customer losses which were believed to have been related to uncertainty caused by the proposed, but ultimately
terminated, acquisition of T-Mobile USA by AT&T.

Branded prepaid churn was 5.4% for the year ended December 31, 2013, compared to 6.4% for the same period in 2012. The
decreases were primarily a result of the completion of the business combination with MetroPCS during the second quarter of
2013. MetroPCS customers are now the largest portion of the branded prepaid customer base and have historically had lower
rates of churn than the historical T-Mobile branded prepaid business. Consequently, branded prepaid churn was impacted
positively by the inclusion of MetroPCS customers.

Branded prepaid churn was 6.4% for the year ended December 31, 2012, compared to 6.7% for the same period in 2011. The
improvement in branded prepaid churn in 2012 was primarily attributable to the success of our Monthly4G plans and the
strategic phase-out of certain products, which historically had higher churn.

Average Revenue Per User (“ARPU”)

ARPU represents the average monthly service revenue earned from customers. We utilize ARPU to evaluate our per-customer
service revenue realization and to assist in forecasting our future service revenues. We believe ARPU provides management
with useful information to evaluate the service revenues generated from our customer base.

The following tables illustrate the calculation of ARPU and reconciles these measures to the related service revenues, which we
consider to be the most directly comparable GAAP financial measure to ARPU:

(in millions, except average number of customers and ARPU)

2013

2012

2011

Year Ended December 31,

Calculation of Branded Postpaid ARPU:

Branded postpaid service revenues

Divided by: Average number of branded postpaid customers (in thousands) and number of
months in period

Branded postpaid ARPU

Calculation of Branded Prepaid ARPU:

Branded prepaid service revenues

Divided by: Average number of branded prepaid customers (in thousands) and number of
months in period

Branded prepaid ARPU

13,166

14,521

16,230

20,858

21,306

52.60

56.79

23,496

57.56

4,945

1,715

11,913

34.59

5,325

26.85

1,307

4,488

24.27

Branded postpaid ARPU decreased $4.19 for the year ended December 31, 2013, compared to the same period in 2012. The
decrease was primarily due to the continued adoption of Value and Simple Choice plans, which have lower ARPU than
customers under traditional bundled plans. This was offset in part by increased data revenues from continued growth in
smartphone penetration. Branded postpaid customers on Value and Simple Choice plans increased over the past twelve
months, and at December 31, 2013, represented 69% of branded postpaid customers compared to 30% of branded postpaid
customers at December 31, 2012.

Branded postpaid ARPU decreased $0.77 for the year ended December 31, 2012, compared to the same period in 2011. The
decrease in branded postpaid ARPU was primarily due to the branded postpaid customer base migration to Value plans
introduced in the third quarter of 2011, which have lower ARPU, partially offset by higher data revenues from the adoption of
data plans and smartphone penetration.

Branded prepaid ARPU increased $7.74 for the year ended December 31, 2013, compared to the same period in 2012. The
increase was primarily due to the inclusion of MetroPCS customers which generate higher ARPU than T-Mobile’s other
branded prepaid customers, as well as the growth of monthly prepaid service plans, which include data services and have
higher ARPU than other pay-as-you-go prepaid plans.

Branded prepaid ARPU increased $2.58 for the year ended December 31, 2012, compared to the same period in 2011. The
increase in branded prepaid ARPU was primarily due to the growth of the Monthly4G plans, which include data services. T-
Mobile's Monthly4G plans were introduced in the second quarter of 2011.

Branded Cost Per Gross Addition (“CPGA”)

Branded CPGA is determined by dividing the costs of acquiring new customers, consisting of selling expenses plus the loss on
equipment sales related to acquiring new customers for the specified period, by gross branded customer additions during the
period. The loss on equipment sales related to acquiring new customers consists primarily of the excess of handset and
accessory costs over related revenues incurred to acquire new customers. Additionally, the loss on equipment sales associated
with retaining existing customers is excluded from this measure as Branded CPGA is intended to reflect only the acquisition
costs to acquire new customers.

Branded CPGA is a non-GAAP measure utilized by our management to assess the financial investment in new customers and
determine the number of months to recover customer selling costs. This measure also allows us to compare average acquisition
costs per new customer to those of other wireless telecommunications providers.

The following table reconciles total costs used in the calculation of Branded CPGA to customer selling expenses, which we
consider to be the most directly comparable GAAP financial measure to Branded CPGA:

(in millions, except gross customer additions and Branded CPGA)

2013

2012

2011

Year Ended December 31,

Selling, general and administrative

Less: General and administrative expenses

Total selling expenses

Add: Loss on equipment sales

Equipment sales

Cost of equipment sales

Total loss on equipment sales

Less: Loss on equipment sales related to customer retention

Loss on equipment sales related to customer acquisition

Cost of acquiring new branded customers

Divided by: Gross branded customer additions (in thousands)

Branded CPGA

7,382

6,796

(3,425)

3,957

(5,033)

6,976

1,943

(1,300)

643

4,600

14,355

320

(3,510)

3,286

(2,242)

3,437

1,195

(903)

292

3,578

9,083

394

6,728

(3,543)

3,185

(1,901)

3,646

1,745

(1,014)

731

3,916

9,234

424

Branded CPGA decreased $74 for the year ended December 31, 2013, compared to the same period in 2012. The decrease was
due primarily to the significant growth in branded customer gross additions which resulted in fixed selling costs, such as
employee salaries and lease expense, being applied over a greater number of gross customer additions. This decrease was
partially offset by an increase in the loss on equipment sales related to customer acquisition, due to the increased volume of
handset sales and higher per unit costs due to an increasing mix of higher cost smartphones being sold.

Branded CPGA decreased $30 for the year ended December 31, 2012, compared to the same period in 2011. Branded CPGA
decreased in 2012 compared to 2011 due primarily to decreases in the equipment subsidy loss related to customer acquisition as
customers adopted Value plans. For each handset sold on the Value plan, T-Mobile benefited from increased equipment
revenue, compared to traditional bundled price plans that typically offered a discounted handset combined with higher service
charges. This decrease in Branded CPGA was partially offset by increases in advertising associated with new promotional
campaigns launched in 2012.

Branded Cost Per User (“CPU”)

Branded CPU is a non-GAAP financial measure utilized by our management to evaluate the non-acquisition related cash
expenses associated with ongoing business operations on a per customer basis, to track changes in these non-acquisition related
costs over time, and to help evaluate how changes in business operations affect non-acquisition related costs per customer.

The following table reconciles total costs used in the calculation of Branded CPU to cost of services costs, which we consider
to be the most directly comparable GAAP financial measure to Branded CPU:

(in millions, except average number of customers and Branded CPU)

2013

2012

2011

Year Ended December 31,

Cost of services

Add: General and administrative expenses

Add: Loss on equipment sales related to customer retention

Total cost of serving customers

Divided by: Average number of branded customers (in thousands) and number of months in
period

Branded CPU

5,279

4,661

3,425

1,300

3,510

903

10,004

9,074

32,771

26,631

4,952

3,543

1,014

9,509

27,984

Branded CPU decreased $3 for the year ended December 31, 2013, compared to the same period in 2012. The decrease was
primarily attributable to operating costs being applied over greater average branded customers due to organic growth and the
acquisition of MetroPCS customers in the second quarter of 2013 in connection with the completion of the business
combination. Operating costs increased in 2013 but at a lesser rate than the increase in average branded customers. Cost of
services increased primarily due to the inclusion of the operating results of MetroPCS since May 1, 2013 and a higher loss on
equipment sales related to customer retention due to higher volumes of smartphone sales in 2013 that have higher per unit
costs. For the year ended December 31, 2013, compared to the same period of the prior year, general and administrative
expenses decreased due to improvements in bad debt expense as described in “Result of Operations” and lower employee
related costs as a result of restructuring initiatives implemented in the first half of 2012.

Branded CPU was $28 for both the year ended December 31, 2012 and 2011. Branded CPU was consistent year-over-year,
however the cost of serving customers decreased by $435 million or 5% in 2012. The decrease in costs was primarily
attributable to lower cost of service in 2012, described in “Results of Operations.” This decrease in costs was fully offset by
the impact of a 1.4 million decline in the average branded customer base during 2012.

Adjusted EBITDA

We define Adjusted EBITDA as earnings before interest expense (net of interest income), tax, depreciation, amortization, stock-
based compensation and expenses that are not reflective of T-Mobile’s ongoing operating performance. Adjusted EBITDA
margin, expressed as a percentage, is calculated as Adjusted EBITDA divided by total service revenues.

Adjusted EBITDA is a non-GAAP financial measure utilized by our management to monitor the financial performance of our
operations. This measurement, together with GAAP measures such as revenue and operating income, assists management in its
decision-making process related to the operation of our business. We use Adjusted EBITDA internally as a metric to evaluate
and compensate our personnel and management for their performance, and as a benchmark to evaluate our operating
performance in comparison to our competitors. Management also uses Adjusted EBITDA to measure, from period-to-period,
our ability to provide cash flows to meet future debt services, capital expenditures and working capital requirements and fund
future growth. We believe that analysts and investors use Adjusted EBITDA as a supplemental measure to evaluate overall
operating performance and that this metric facilitates comparisons with other wireless communications companies. Adjusted
EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for income from
operations, net income, or any other measure of financial performance reported in accordance with GAAP. In addition, other
wireless carriers may calculate this measure differently.

The following table illustrates the calculation of Adjusted EBITDA and reconciles Adjusted EBITDA to net income which we
consider to be the most directly comparable GAAP financial measure to Adjusted EBITDA:

(in millions)

Net income (loss)

Adjustments:

Interest expense to affiliates

Interest expense

Interest income

Other (income) expense, net

Income tax expense (benefit)

Operating income (loss)

Depreciation and amortization

Impairment charges

MetroPCS transaction and integration costs

Restructuring costs

Stock-based compensation

Other, net (1)

Adjusted EBITDA

Adjusted EBITDA margin

Year Ended December 31,

2013

2012

2011

(7,336)

(4,718)

678

545

(189)

(89)

996

3,627

—

108

100

—

661

—

(77)

350

(6,397)

3,187

8,134

—

(130)

4,885

4,886

26%

28%

670

—

(25)

(216)

(4,279)

2,982

6,420

—

187

5,310

29%

(1) Other, net for the year ended December 31, 2012 represents a net gain on an AWS spectrum license purchase and exchange and

transaction-related costs incurred for the terminated AT&T acquisition of T-Mobile USA. Other, net for the year ended December 31,
2011 represents AT&T transaction-related costs incurred from the terminated AT&T acquisition of T-Mobile USA. Other, net
transactions may not agree in total to the other, net classification in the Consolidated Statements of Comprehensive Income (Loss) due to
certain routine operating activities, such as insignificant routine spectrum license exchanges that would be expected to reoccur, and are
therefore not excluded from Adjusted EBITDA.

Adjusted EBITDA was consistent for the year ended December 31, 2013, compared to the same period in 2012. The inclusion
of MetroPCS’s operating results since May 1, 2013, contributed approximately $1.0 billion in Adjusted EBITDA for the year
ended December 31, 2013. Excluding the Adjusted EBITDA contributed by MetroPCS’s operating results, Adjusted EBITDA
was negatively impacted by the reduction in service revenues, which declined primarily due to impacts from customers
migrating to Value and Simple Choice plans, which result in lower ARPU. Additionally, Adjusted EBITDA was negatively
impacted by increases in cost of equipment sales from higher sales volumes, partially offset by increases in equipment sales.
Increases in costs of equipment sales and equipment sales were driven by higher gross customer additions and the launch of
new handsets in 2013. In addition, equipment sales increased in 2013 due to a higher proportion of customers choosing Value
and Simple Choice plans for which we do not include a bundled sale of a discounted handset.

Adjusted EBITDA decreased 8% for the year ended December 31, 2012, compared to the same period in 2011. The decrease
was primarily due to a decline in service revenues, offset partially by equipment sales growth and operating expense reductions.
The decline in services revenues was primarily the result of losses of branded postpaid customers and impacts from customers
adopting Value plans. Equipment sales improved in 2012 due to a higher proportion of customers choosing Value plans for
which we do not offer subsidies (discounts) on devices. Additionally, operating expenses decreased slightly in 2012 primarily
due to lower cost of equipment sales driven by lower handset unit sales volumes, lower employee-related expenses and the
effects of ongoing cost management programs. These combined operating expense reductions were partially offset by higher
advertising and marketing expenses associated with new promotional campaigns and T-Mobile's rebranding initiatives.

Liquidity and Capital Resources

Our principal sources of liquidity are our cash and cash equivalents and cash generated from operations, as well as proceeds
from the issuance of long-term debt and issuance of common stock in connection with public offerings. As of December 31,
2013, our cash and cash equivalents were $5.9 billion. In addition, we have entered into an unsecured revolving credit facility
with Deutsche Telekom that allows for up to $500 million in borrowings. We expect our current sources of funding to be
sufficient to meet the anticipated liquidity requirements of the Company in the next 12 months and intend to use our current
sources of funding for general corporate purposes, including capital investments, enhancing our financial flexibility and
opportunistically acquiring additional spectrum in private party transactions and government auctions. We determine future
liquidity requirements, for both operations and capital expenditures, based in large part upon projected financial and operating
performance. We regularly review and update these projections for changes in current and projected financial and operating

results, general economic conditions, the competitive landscape and other factors. There are a number of risks and
uncertainties that could cause our financial and operating results and capital requirements to differ materially from our
projections, which could cause future liquidity to differ materially from our assessment. We may seek to raise additional debt
or equity capital to the extent our projections regarding our liquidity requirements change or on an opportunistic basis when
there are favorable market conditions. Further, we may consider entering into factoring arrangements to sell certain service
receivables as an additional source of liquidity.

Prior to the completion of the business combination with MetroPCS on April 30, 2013, our sources of liquidity were cash and
cash equivalents and short-term investments with Deutsche Telekom included in accounts receivable from affiliates, and cash
generated from operations. As of December 31, 2012, our cash and cash equivalents were $394 million and short-term
investments with Deutsche Telekom were $650 million.

As of December 31, 2013, our total capital consisted of $20.2 billion in total debt, excluding long-term financial obligation
related to the tower transaction, and stockholders’ equity of $14.2 billion. Prior to the closing of the business combination with
MetroPCS, Deutsche Telekom effected a recapitalization of T-Mobile USA. T-Mobile USA’s long-term debt to affiliates, with a
total principal balance of $14.5 billion, were extinguished and interest rate and cross currency interest rate swaps related to the
extinguished notes were settled, in exchange for $11.2 billion of new unsecured senior notes. In October 2013, Deutsche
Telekom sold the senior non-reset notes in an aggregate principal amount of $5.6 billion to third parties. In addition, we issued
$500 million of unsecured senior notes in August 2013 and $2.0 billion of unsecured senior notes in November 2013. See Note
7 – Debt and Note 12 – Commitments and Contingencies of the Notes to the Consolidated Financial Statements included in
Part II, Item 8 of this Form 10-K for further information.

Stockholders’ equity increased $8.1 billion from December 31, 2012 due to the effects of the recapitalization, the deemed
issuance of stock to MetroPCS stockholders, issuance of common stock in connection with a public offering, exercise of stock
options and issuance of stock units, and net income for the year ended December 31, 2013. As part of the recapitalization,
Deutsche Telekom contributed to T-Mobile approximately $3.1 billion in additional paid-in capital. In connection with the
business combination with MetroPCS, common stock representing approximately 74% of the outstanding shares of the
combined company were issued to Deutsche Telekom. However, as the transaction was accounted for as a reverse acquisition,
stockholders’ equity reflects a $3.0 billion increase for shares deemed issued to MetroPCS stockholders in consideration for
their minority share of the combined company. Additionally, as part of the business combination, we acquired $2.1 billion of
cash and cash equivalents and assumed long-term debt of MetroPCS with an aggregate fair value amount of $6.3 billion. In
November 2013, we completed a public offering of 72,765,000 shares of common stock, including 6,615,000 common shares
pursuant to the underwriters’ option to purchase additional shares, for net proceeds of $1.8 billion.

In January 2014, we entered into agreements with Verizon for the acquisition of 700 MHz A-Block spectrum licenses for
approximately $2.4 billion in cash and the transfer of certain AWS spectrum and PCS spectrum. We intend to finance the cash
consideration payable to Verizon, which is expected to close in mid-2014, with cash on hand as of December 31, 2013,
including a portion of the net proceeds from our recent equity and debt offerings.

The indentures governing the long-term debt, excluding capital leases, contain covenants that, among other things, limit our
ability to: incur more debt; pay dividends and make distributions; make certain investments; repurchase stock; create liens or
other encumbrances; enter into transactions with affiliates; enter into transactions that restrict dividends or distributions from
subsidiaries; and merge, consolidate, or sell, or otherwise dispose of, substantially all of their assets. Certain provisions of each
of the indentures and the supplemental indentures relating to the long-term debt restrict the ability of the Issuer to loan funds or
make payments to the Parent. However, the Issuer is allowed to make certain permitted payments to the Parent under the terms
of each of the indentures and the supplemental indentures relating to the long-term debt. As of December 31, 2013, we were in
compliance with all restrictive debt covenants.

Capital Expenditures

The construction of our network and the marketing and distribution of our wireless communications products and services have
required, and will continue to require, substantial amounts of liquidity. Our liquidity requirements have been driven primarily
by capital expenditures for spectrum licenses and the construction, expansion and upgrading of our network infrastructure.

The property and equipment capital expenditures for the year ended December 31, 2013 primarily relate to T-Mobile’s network
modernization and deployment of 4G LTE in 2013. The capital expenditures for the year ended December 31, 2012 were
primarily associated with the continued expansion of our network coverage. During 2012, we were developing plans to deploy
4G LTE in 2013 after the terminated AT&T transaction. As such, capital spending was lower in 2012 than in subsequent
periods.

We expect cash capital expenditures for property and equipment to be in the range of $4.3 billion to $4.6 billion for the year
ending December 31, 2014. This does not include purchases of spectrum, including the acquisition of 700 MHz A-Block
spectrum licenses from Verizon for approximately $2.4 billion in cash and the transfer of certain AWS spectrum and PCS
spectrum, which is expected to close in mid-2014.

Cash Flows

The following table shows cash flow information for the year ended December 31, 2013, 2012 and 2011:

(in millions)

Net cash provided by operating activities

Net cash used in investing activities

Net cash provided by financing activities

Year Ended December 31,

2013

2012

2011

3,545

3,862

(2,092)

4,044

(3,915)

4,980

(4,699)

—

The historical cash flows of T-Mobile USA should not be considered representative of the anticipated cash flows of T-Mobile
US, Inc., the combined company resulting from the business combination.

Operating Activities

Cash provided by operating activities was $3.5 billion for the year ended December 31, 2013, compared to $3.9 billion for the
same period in 2012. The decrease in cash flow provided by operating activities was driven by several factors. Our operating
income, exclusive of non-cash items such as impairment charges and depreciation and amortization, declined compared to the
same period in the prior year primarily as a result of decreases in branded postpaid revenues. Net changes in working capital
decreased slightly due to increases in EIP receivables, offset in part by increases in accounts payable and accrued liabilities due
in part to timing of vendor payments.

Cash provided by operating activities was $3.9 billion for the year ended December 31, 2012, compared to $5.0 billion for the
year ended December 31, 2011. The decrease in cash flow provided by operating activities in 2012 was driven by several
factors. Our operating income, exclusive of non-cash items such as impairment charges, depreciation and amortization, and
other non-cash charges, declined compared to the same period in the prior year primarily as a result of decreases in branded
postpaid revenues. In addition, we made payments of $193 million primarily for employee-related expenses as a result of the
terminated AT&T transaction and paid $53 million for restructuring charges during 2012. Also contributing to the decrease was
the significant increase in our customers choosing to finance their wireless handset purchases through our EIP during 2012
compared to 2011.

Investing Activities

Cash used in investing activities was $2.1 billion for the year ended December 31, 2013, compared to $3.9 billion used in the
same period in 2012. The decrease was primarily due to the $2.1 billion of cash and cash equivalents we acquired in
connection with the business combination with MetroPCS. The decrease was partially offset by $1.1 billion higher purchases
of property and equipment during the year ended December 31, 2013, as compared to the same period in 2012, as a result of T-
Mobile’s network modernization and deployment of 4G LTE in 2013 described above.

Cash used in investing activities was $3.9 billion for the year ended December 31, 2012, compared to $4.7 billion during the
year ended December 31, 2011. The decrease was primarily due to $1.4 billion less invested with Deutsche Telekom on a net
basis (short term affiliate loan receivable, net) during 2012 compared to 2011. The decrease in funds invested with Deutsche
Telekom in 2012 was the result of utilizing $1.2 billion accounts receivable from affiliates in exchange for rights to spectrum
licenses from Deutsche Telekom. The rights to the spectrum licenses were received from AT&T as part of the break-up
consideration of the terminated AT&T transaction for the sale of T-Mobile USA. The decrease in funds invested with Deutsche
Telekom was offset by higher capital expenditures and expenditures for spectrum licenses in 2012 as a result of our network
modernization plan launched in 2012 described above.

Financing Activities

Cash provided by financing activities was $4.0 billion for the year ended December 31, 2013, compared to $57 million for the
same period in 2012. The increase was primarily due to net proceeds of $2.5 billion from the issuance of long-term debt, $1.8
billion from the issuance of common stock in connection with a public offering, and proceeds of $137 million from the

exercises of stock options issued. The increase was offset by repayments of short-term debt for purchases of property and
equipment of $244 million, $80 million relating to the purchase of Cook Inlet's interest in CIVS VII, and a distribution to
Deutsche Telekom of $41 million in connection with the recapitalization of T-Mobile USA effected immediately prior to the
completion of the business combination with MetroPCS.

Cash provided by financing activities was $57 million during the year ended December 31, 2012, compared to no cash
provided for the year ended December 31, 2011. During 2012, T-Mobile completed a transaction to sell the rights to operate its
wireless communication towers resulting in net cash proceeds received of $2.5 billion, of which T-Mobile distributed $2.4
billion to Deutsche Telekom.

Contractual Obligations

Current accounting standards require disclosure of material obligations and commitments to making future payments under
contracts, such as debt, lease agreements, and purchase obligations. See Note 7 – Debt and Note 12 – Commitments and
Contingencies of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K.

The following table provides aggregate information about T-Mobile’s contractual obligations as of December 31, 2013:

(in millions)

Long-term debt (1)

Interest expense on long-term debt

Financial obligation (2)

Non-dedicated transportation lines

Operating leases, including dedicated
transportation lines

Capital lease obligations, including interest

Vendor financing arrangements

Purchase obligations (3)

Less Than 1 Year

1 - 3 Years

3 - 5 Years

More Than 5
Years

Total

— $

1,500

17,700

1,171

164

606

2,199

226

1,168

2,429

328

1,150

4,007

—

410

2,429

328

630

3,403

—

2,078

3,178

1,303

311

5,233

297

—

19,200

9,207

2,123

2,697

14,842

508

226

3,656

52,459

Total contractual obligations

5,574

8,408

10,455

28,022

(1) Represents principal amounts of long-term debt at maturity, excluding unamortized premium from purchase price allocation fair value

adjustment, capital lease obligations and vendor financing arrangements.

(2) Future minimum payments, including principal and interest payments and imputed lease rental income, related to the long-term financial
obligation recorded in connection with the Tower Transaction. See Note 8 – Tower Transaction and Related Long-Term Financial
Obligation of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of this Form 10-K for further information.

(3) T-Mobile calculated the minimum obligation for certain agreements to purchase goods or services based on termination fees that can be
paid to exit the contract. Termination penalties are included in the above table as payments due in less than one year, as this is the
earliest T-Mobile could exit these contracts. This table does not include open purchase orders as of December 31, 2013 under normal
business purposes.

Certain commitments and obligations are included in the table based on the year of required payment or an estimate of the year
of payment. Other non-current liabilities have been excluded from the tables due to the uncertainty of the timing of payments,
combined with the absence of historical trending to be used as a predictor of such payments.

The purchase obligations reflected in the table above are primarily commitments to purchase handsets and accessories,
equipment, software, programming and network services, and marketing activities, which will be used or sold in the ordinary
course of business. These amounts do not represent T-Mobile’s entire anticipated purchases in the future, but represent only
those items for which T-Mobile is contractually committed. Where T-Mobile is committed to make a minimum payment to the
supplier regardless of whether it takes delivery, T-Mobile has included only that minimum payment as a purchase obligation.

Off-Balance Sheet Arrangements

T-Mobile does not participate in or secure financing for any unconsolidated entities.

Related Party Transactions

See Note 11 – Related Party Transactions of the Notes to the Consolidated Financial Statements included in Part II, Item 8 of
this Form 10-K for information regarding related party transactions.

Disclosure of Iranian Activities under Section 13(r) of the Securities Exchange Act of 1934

Section 219 of the Iran Threat Reduction and Syria Human Rights Act of 2012 added Section 13(r) to the Exchange
Act. Section 13(r) requires an issuer to disclose in its annual or quarterly reports, as applicable, whether it or any of its
affiliates knowingly engaged in certain activities, transactions or dealings relating to Iran or with designated natural persons or
entities involved in terrorism or the proliferation of weapons of mass destruction. Disclosure is required even where the
activities, transactions or dealings are conducted outside the U.S. by non-U.S. affiliates in compliance with applicable law, and
whether or not the activities are sanctionable under U.S. law.

As of the date of this report, we are not aware of any activity, transaction or dealing by us or any of our affiliates for the year
ended December 31, 2013 that requires disclosure in this report under Section 13(r) of the Exchange Act, except as set forth
below with respect to affiliates that we do not control and that are our affiliates solely due to their common control with
Deutsche Telekom. We have relied upon Deutsche Telekom for information regarding their activities, transactions and
dealings.

Deutsche Telekom AG, through certain of its non-U.S. subsidiaries, is party to roaming and interconnect agreements with the
following mobile and fixed line telecommunication providers in Iran, some of which are or may be government-controlled
entities: Gostaresh Ertebatat Taliya, Irancell Telecommunications Services Company (“MTN Irancell”), Telecommunication
Kish Company, Mobile Telecommunication Company of Iran, and Telecommunication Infrastructure Company of Iran. For the
year ended December 31, 2013, gross revenues of all Deutsche Telekom affiliates generated by roaming and interconnection
traffic with Iran were less than $10 million and estimated net profits were less than $3 million.

In addition, Deutsche Telekom, through certain of its non-U.S. subsidiaries, operating a fixed line network in their respective
European home countries (in particular Germany), provides telecommunications services in the ordinary course of business to
the Embassy of Iran in those European countries. Gross revenues and net profits recorded from these for the year ended
December 31, 2013 were less than $0.4 million. We understand that Deutsche Telekom AG intends to continue these activities.

Restructuring Costs

See Note 13 – Additional Financial Information of the Notes to the Consolidated Financial Statements included in Part II, Item
8 of this Form 10-K for information regarding restructuring costs.

Critical Accounting Policies and Estimates

Preparation of our consolidated financial statements in accordance with accounting principles generally accepted in the United
States of America (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of certain assets,
liabilities, revenues and expenses, as well as related disclosure of contingent assets and liabilities. We believe the following
critical accounting policies affect the more significant judgments and estimates used in the preparation of the T-Mobile
consolidated financial statements.

Allowances

We maintain an allowance for estimated losses resulting from the failure of customers to make required payments. When
determining the allowance T-Mobile considers the probability of recovery based on past experience taking into account current
collection trends and general economic factors. Collection risks are assessed for each type of receivable, including EIP
receivables, based upon historical and expected write-offs, net of recoveries, and an analysis of the aged accounts receivable
balances with reserves generally increasing as the receivable ages. To the extent that actual loss experience differs significantly
from historical trends or assumptions, the required allowance amounts could differ from the estimate. Total deferred interest
and allowances as of December 31, 2013 and 2012 was approximately 8.6% and 9.6%, respectively, of the total amount of
gross accounts receivable, including long-term EIP receivables.

Depreciation

Depreciation commences once assets have been placed in service and is computed using the straight-line method over the
estimated useful life of each asset. Depreciable life studies are performed periodically to confirm the appropriateness of
depreciable lives for certain categories of property, plant and equipment. These studies take into account actual usage, physical
wear and tear, replacement history and assumptions about technology evolution. When these factors indicate that an asset’s
useful life is different from the previous assessment, the remaining book values are depreciated prospectively over the adjusted

remaining estimated useful life. See Note 1 – Summary of Significant Accounting Policies, Note 4 – Property and Equipment
and Note 5 – Goodwill, Spectrum Licenses and Intangible Assets of the Notes to the Consolidated Financial Statements
included in Part II, Item 8 of this Form 10-K for information regarding depreciation of assets, including underlying
management estimates of useful lives.

Evaluation of Goodwill and Indefinite-Lived Intangible Assets for Impairment

T-Mobile assesses the carrying value of goodwill and other indefinite-lived intangible assets (spectrum licenses) for potential
impairment annually as of December 31 or more frequently if events or changes in circumstances indicate that assets might be
impaired.

T-Mobile uses a two-step process to determine a possible impairment of goodwill. In the first step, T-Mobile compares the fair
value of the reporting unit to its carrying value. The fair value of the reporting unit is determined using a market method,
which is based on market capitalization. Market capitalization is calculated based on the price of our common stock and
number of common stock outstanding. The Company recognizes that market capitalization is subject to volatility and will
monitor changes in market capitalization to determine whether declines, if any, necessitate an interim impairment review. In
the event market capitalization does decline below its book value, we will consider the length, severity and reasons for the
decline when assessing whether potential impairment exists, including considering whether a control premium should be added
to the market capitalization. We believe short-term fluctuations in share price may not necessarily reflect the underlying
aggregate fair value. Historically, the Company estimated the fair value of the reporting unit using a discounted cash flow
approach due to the absence of comparable observable market data for T-Mobile. The discounted cash flow method utilizes
future cash flow assumptions are based on estimates of revenues, EBITDA margin and a long-term growth rate taking into
consideration expected industry and market conditions. The cash flows are then discounted using a weighted average cost of
capital reflecting the risks associated with the business and the projected cash flows. If the carrying amount of the reporting
unit exceeds the fair value, the second step of the test is performed.

In the second step, T-Mobile determines the fair values of all of the assets and liabilities of the reporting unit, including those
that currently may not be recorded. The excess of the fair value of the reporting unit over the sum of the fair value of all of
those assets and liabilities represents the implied goodwill amount. If the implied fair value of goodwill is lower than the
carrying amount of goodwill, then an impairment loss is recognized for the difference.

T-Mobile tests its spectrum licenses for impairment on an aggregate basis, consistent with the management of the overall
business at a national level. T-Mobile estimates the fair value of the licenses using the Greenfield approach, which is an
income approach that estimates the price at which an orderly transaction to sell the asset would take place between market
participants at the measurement date under current market conditions. The Greenfield approach values the licenses by
calculating the cash flow generating potential of a hypothetical start-up company that goes into business with no assets except
the asset to be valued (in this case, licenses). The value of the licenses can be considered as equal to the present value of the
cash flows of this hypothetical start-up company. T-Mobile bases the assumptions underlying the Greenfield approach on a
combination of market participant data and T-Mobile’s historical results, trends and business plans. Future cash flows in the
Greenfield approach are based on estimates and assumptions of market participant revenues, EBITDA margin, network build-
out period, and a long-term growth rate for a market participant. The cash flows are discounted using a weighted average cost
of capital. If the carrying amount of spectrum licenses exceeds the fair value, an impairment loss is recognized.

The valuation approaches utilized to estimate fair value for the purposes of the T-Mobile impairment tests of goodwill and
spectrum licenses require the use of assumptions and estimates, which involve a degree of uncertainty. If actual results or
future expectations are not consistent with the assumptions, this may result in the recording of significant impairment charges
on goodwill or spectrum licenses. The most significant assumptions within the valuation models are the discount rate,
revenues, EBITDA margins and the long-term growth rate. As a result of an impairment test performed in 2012, T-Mobile
recorded an impairment charge on goodwill. As the result of the annual impairment test in 2011, T-Mobile recorded
impairment charges on goodwill and spectrum licenses. See Note 1 – Summary of Significant Accounting Policies and Note 5
– Goodwill, Spectrum Licenses and Intangible Assets of the Notes to the Consolidated Financial Statements included in Part II,
Item 8 of this Form 10-K for information regarding annual impairment test and impairment charges.

Guarantee Liabilities

In July 2013, T-Mobile launched JUMP!, a handset upgrade program, that provides eligible customers a specific-price trade-in
right to upgrade their handset. Participating customers must finance their handset using our EIP. Upon upgrading, the
customer will receive a credit in the amount of their outstanding EIP balance provided they trade in their used handset in good
working condition and purchase a new handset from T-Mobile.
39

For customers who enroll in the trade-in program, T-Mobile defers a portion of equipment sales revenue which represents the
estimated value of the specified-price trade-in right guarantee. The guarantee liabilities are valued based on various economic
and customer behavioral assumptions, which requires judgment, including primarily the customer's estimated remaining EIP
balance at trade-in, the expected fair value of the used handset at trade-in, and probability and timing of trade-in. When the
customer upgrades their handset, the difference between the trade-in credit to the customer and the fair value of the returned
handset is recorded against the guarantee liabilities. All assumptions are reviewed periodically.

Fair Value of Financial Instruments

T-Mobile accounts for certain assets and liabilities at fair value. Fair value is a market-based measurement that should be
determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering
such assumptions, the Company uses a three-tier value hierarchy, which prioritizes the inputs used in measuring fair value as
follows:

Level 1
Level 2
Level 3

Observable inputs that reflect quoted prices in active markets for identical assets or liabilities;
Inputs other than the quoted prices in active markets that are observable either directly or indirectly, and;
Unobservable inputs for which there is little or no market data, which require T-Mobile to develop its own
assumptions.

Derivative instruments are recorded on the balance sheet at their fair values. T-Mobile uses discounted cash flow techniques to
determine the fair value, which incorporates market-based observable inputs such as interest rates, credit spreads, forward
currency exchange rates and estimates and assumptions such as instrument’s term, notional amounts, discount rate and credit
risk. T-Mobile’s derivative instruments comprised of interest rate swaps and cross currency interest rate swaps entered into in
connection with long-term debt to affiliates and were classified as Level 2 in the three-tier value hierarchy. Prior to the closing
of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile by retiring the existing T-Mobile long-
term debt to affiliates and all related derivative instruments, which included the interest rate swaps and cross currency interest
rate swaps.

Rent Expense

Most of the leases on T-Mobile’s tower sites have fixed rent escalations which provide for periodic increases in the amount of
rent payable over time. T-Mobile calculates straight-line rent expense for each of these leases based on the fixed non-
cancellable term of the lease plus all periods, if any, for which failure to renew the lease imposes a penalty on T-Mobile in such
amount that a renewal appears, at lease inception, to be reasonably assured. T-Mobile is therefore required at lease inception to
make significant assumptions in determining and assessing the factors that constitute a “penalty”. In doing so, T-Mobile
primarily considers costs incurred in acquiring and developing new sites, the useful life of site improvements and equipment
costs, future economic conditions and the extent to which improvements in wireless technologies can be incorporated into a
current assessment of whether an economic compulsion will exist in the future to renew a lease.

Stock-based Compensation

Stock-based compensation cost for stock awards, which includes restricted stock units (“RSU”) and performance stock units
(“PSU”) awards, is measured at fair value on the grant date and recognized as an expense, net of expected forfeitures, over the
related service period. The fair value of stock awards is based on the closing price of T-Mobile common stock on the date of
grant. RSUs are recognized as expense using the straight-line method. PSUs are recognized as expense following a graded
vesting schedule. Judgment is required in estimating the amount of stock awards which are expected to be forfeited. If actual
results differ significantly from our expected forfeitures, stock-based compensation expense and our results of operations could
be impacted.

Income Taxes

T-Mobile recognizes deferred tax assets and liabilities based on temporary differences between the financial statement and tax
basis of assets and liabilities using enacted tax rates expected to be in effect when these differences are realized. A valuation
allowance is maintained against deferred tax assets when it is more likely than not that some portion or all of the deferred tax
assets will not be realized. T-Mobile uses judgment to determine the valuation allowance while considering many factors,
including recent cumulative earnings experience by taxing jurisdiction, expectations of future income, the carryforward periods
available for tax reporting purposes and other relevant factors.

T-Mobile accounts for uncertainty in income taxes recognized in the financial statements in accordance with the accounting
guidance on the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return.
T-Mobile uses judgment to determine whether it is more likely than not that a tax position will be sustained upon examination
based on the technical merits of the position and adjusts the unrecognized tax benefits in light of changes in facts and
circumstances, such as changes in tax law, interactions with taxing authorities and developments in case law.

Recently Issued Accounting Standards

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02,
“Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The standard requires entities to
present information about reclassification adjustments from accumulated other comprehensive income in a single note or on the
face of the financial statements. The standard also requires that entities present either in a single note or parenthetically on the
face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other
comprehensive income based on its source and the income statement line items affected by the reclassification. If a component
is not required to be reclassified to net income in its entirety, the entity should instead cross reference to the related footnote for
additional information. The new guidance became effective for T-Mobile for the year ended December 31, 2013. The
implementation of this standard affected our disclosures but did not affect our financial condition, results of operations or cash
flows.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

T-Mobile is exposed to economic risks in the normal course of business, primarily from changes in interest rates. These risks,
along with other business risks, impact our cost of capital. Our policy is to manage exposure related to fluctuations in interest
rates in order to manage capital costs, control financial risks and maintain financial flexibility over the long term. We have
established interest rate risk limits that are closely monitored by measuring interest rate sensitivities of its debt and interest rate
derivatives portfolios. We do not foresee significant changes in the strategies used to manage market risk in the near future.

Interest Rate Risk

We are exposed to changes in interest rates, primarily on our long-term debt to affiliates. As of December 31, 2013, we had
$5.6 billion in long-term debt with Deutsche Telekom comprised of senior reset notes. Changes in interest rates can lead to
significant fluctuations in the fair value of our variable-rate debt instruments.

To perform the sensitivity analysis on the long-term debt to affiliates, we assessed the risk of a change in the fair value from the
effect of a hypothetical interest rate change of 100 basis points. As of December 31, 2013, the change in the fair value of our
long-term debt to affiliates, based on this hypothetical change, is shown in the table below:

(in millions)

Long-term debt to affiliates

Fair Value

+100 Basis Point Shift

-100 Basis Point Shift

5,866

5,791

5,937

Fair Value Assuming

Item 8. Financial Statements and Supplementary Data

Financial Statements

Report of Independent Registered Public Accounting Firm

To the Board of Directors and
Stockholders of T-Mobile US, Inc.:

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of comprehensive
income (loss), of stockholders’ equity and of cash flows present fairly, in all material respects, the financial position of T-
Mobile US, Inc. and its subsidiaries at December 31, 2013 and December 31, 2012, and the results of their operations and their
cash flows for each of the three years in the period ended December 31, 2013 in conformity with accounting principles
generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects,
effective internal control over financial reporting as of December 31, 2013, based on criteria established in Internal Control -
Integrated Framework (1992) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
The Company's management is responsible for these financial statements, for maintaining effective internal control over
financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in
Management's Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to
express opinions on these financial statements and on the Company's internal control over financial reporting based on our
audits (which was an integrated audit in 2013). We conducted our audits in accordance with the standards of the Public
Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal
control over financial reporting was maintained in all material respects. Our audits of the financial statements included
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial statement
presentation. Our audit of internal control over financial reporting included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating
effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we
considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures
that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and
expenditures of the company are being made only in accordance with authorizations of management and directors of the
company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or
disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP
Seattle, Washington
February 25, 2014

T-Mobile US, Inc.
Consolidated Balance Sheets

(in millions, except share and per share amounts)

Assets

Current assets

Cash and cash equivalents

Accounts receivable, net of deferred interest and allowances of $381 and $289

Accounts receivable from affiliates

Inventory

Current portion of deferred tax assets, net

Other current assets

Total current assets

Property and equipment, net of accumulated depreciation of $19,649 and $17,744

Goodwill

Spectrum licenses

Other intangible assets, net of accumulated amortization of $476 and $243

Other assets

Total assets

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable and accrued liabilities

Current payables and short-term debt to affiliates

Short-term debt

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt to affiliates

Long-term debt

Long-term financial obligation

Deferred tax liabilities

Deferred rents

Other long-term liabilities

Total long-term liabilities

Commitments and contingencies

Stockholders' equity

Preferred stock, par value $0.00001 per share, 100,000,000 shares authorized; no shares issued and outstanding

Common stock, par value $0.00001 per share, 1,000,000,000 shares authorized; 803,262,309 and 535,286,077
shares issued

December 31,
2013

December 31,
2012

5,891

3,619

586

839

1,252

12,228

15,349

1,683

18,122

1,204

1,367

394

2,678

682

457

655

675

5,541

12,807

—

14,550

645

49,953

33,622

4,567

199

244

445

353

5,808

5,600

14,345

2,496

4,645

2,113

701

29,900

—

3,475

1,619

—

290

208

5,592

13,655

—

2,461

3,618

1,884

297

21,915

—

Additional paid-in capital

Treasury stock, at cost, 1,382,505 and 0 shares issued

Accumulated other comprehensive income

Accumulated deficit

Total stockholders' equity

Total liabilities and stockholders' equity

37,330

29,197

—

(23,088)

14,245

49,953

—

(23,123)

6,115

33,622

The accompanying notes are an integral part of these consolidated financial statements.

T-Mobile US, Inc.
Consolidated Statements of Comprehensive Income (Loss)

(in millions, except shares and per share amounts)

2013

2012

2011

Year Ended December 31,

13,166

14,521

Revenues

Branded postpaid revenues

Branded prepaid revenues

Wholesale revenues

Roaming and other service revenues

Total service revenues

Equipment sales

Other revenues

Total revenues

Operating expenses

Cost of services, exclusive of depreciation and amortization shown separately below

Cost of equipment sales

Selling, general and administrative

Depreciation and amortization

MetroPCS transaction and integration costs

Impairment charges

Restructuring costs

Other, net

Total operating expenses

Operating income (loss)

Other income (expense)

Interest expense to affiliates

Interest expense

Interest income

Other income (expense), net

Total other expense, net

Income (loss) before income taxes

Income tax expense (benefit)

Net income (loss)

Other comprehensive income (loss), net of tax

Net gain (loss) on cross currency interest rate swaps, net of tax effect of $13, $57 and $(28)

Net gain (loss) on foreign currency translation, net of tax effect of $(37), $(16) and $29

Unrealized gain on available-for-sale securities, net of tax effect of $1, $0 and $5

Other comprehensive income (loss), net of tax

Total comprehensive loss

Earnings (loss) per share

Basic

Diluted

Weighted average shares outstanding

Basic

Diluted

4,945

613

344

19,068

5,033

319

24,420

5,279

6,976

7,382

3,627

108

—

(2)

23,424

996

(678)

(545)

189

(945)

(62)

(38)

1,715

544

433

17,213

2,242

264

19,719

4,661

3,437

6,796

3,187

8,134

(191)

26,116

(6,397)

(661)

—

(5)

(589)

(6,986)

350

(7,336) $

(27)

16,230

1,307

443

501

18,481

1,901

236

20,618

4,952

3,646

6,728

2,982

—

6,420

—

169

24,897

(4,279)

(670)

—

(10)

(655)

(4,934)

(216)

(4,718)

(47)

(3) $

(7,267) $

(4,707)

0.05

(13.70) $

(13.70)

(8.81)

672,955,980

676,885,215

535,286,077

The accompanying notes are an integral part of these consolidated financial statements.

T-Mobile US, Inc.
Consolidated Statements of Cash Flows

(in millions)

Operating activities

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities

Year Ended December 31,

2013

2012

2011

(7,336) $

(4,718)

Impairment charges

Depreciation and amortization

Stock-based compensation expense

Deferred income tax expense (benefit)

Amortization of debt discount and premium, net

Bad debt expense

Deferred rent expense

Losses (gains) and other, net

Changes in operating assets and liabilities

Accounts receivable

Inventory

Other current and long-term assets

Accounts payable and accrued liabilities

Other current and long-term liabilities

Net cash provided by operating activities

Investing activities

Purchases of property and equipment

Purchases of intangible assets

Short term affiliate loan receivable, net

Proceeds from disposals of property and equipment and intangible assets

Cash and cash equivalents acquired in MetroPCS business combination

Payments to acquire financial assets, net

Change in restricted cash equivalents

Investments in unconsolidated affiliates, net

Net cash used in investing activities

Financing activities

Proceeds from issuance of long-term debt

Proceeds from issuance of common stock in connection with public offering

Proceeds from financial obligation

Repayments of short-term debt for purchases of property and equipment

Repayments related to a variable interest entity

Distribution to affiliate

Proceeds from exercise of stock options

Other, net

Net cash provided by financing activities

Change in cash and cash equivalents

Cash and cash equivalents

Beginning of year

End of year

—

3,627

100

(62)

463

229

209

(1,315)

(545)

611

141

3,545

(4,025)

(381)

300

2,144

—

(100)

(33)

(2,092)

2,494

1,787

—

(244)

(80)

(41)

137

(9)

4,044

5,497

394

5,891

8,134

3,187

—

308

(81)

702

206

(258)

(700)

(2)

(316)

(32)

6,420

2,982

—

(233)

(84)

713

218

(43)

(558)

166

(182)

103

196

3,862

4,980

(2,901)

(387)

(651)

—

(5)

—

(22)

(3,915)

—

2,469

—

(9)

(2,403)

—

390

394

(2,729)

(23)

(2,005)

—

(17)

(4,699)

—

281

109

390

The accompanying notes are an integral part of these consolidated financial statements.

T-Mobile US, Inc.
Consolidated Statement of Stockholders’ Equity

(in millions, except shares)

Balance as of December 31, 2010

Net loss

Other comprehensive income

Balance as of December 31, 2011

Net loss

Other comprehensive income

Equity distribution of paid-in capital

Balance as of December 31, 2012

Net income

Other comprehensive loss

Effects of debt recapitalization

MetroPCS shares converted upon reverse merger, net of
treasury stock withheld for taxes

Issuance of common stock in connection with public
offering

Stock-based compensation

Exercise of stock options

Issuance of vested restricted stock units

Tax impact of stock-based compensation

Common Stock
Outstanding

Par Value and
Additional
Paid-in Capital

Accumulated
Other
Comprehensive
Income

Accumulated
Deficit

Total
Stockholders'
Equity

535,286,077

31,600

(39) $

(11,069) $

—

(4,718)

—

535,286,077

31,600

(28) $

(15,787) $

—

(2,403)

535,286,077

29,197

—

184,487,309

72,765,000

—

9,278,599

62,819

—

3,143

2,971

1,787

100

137

—

(5)

(7,336)

—

(23,123) $

—

(38)

—

20,492

(4,718)

15,785

(7,336)

(2,403)

6,115

(38)

3,143

2,971

1,787

100

137

—

(5)

Balance as of December 31, 2013

801,879,804

37,330

(23,088) $

14,245

The accompanying notes are an integral part of these consolidated financial statements.

T-Mobile US, Inc.
Notes to the Consolidated Financial Statements

Note 1 – Summary of Significant Accounting Policies

Description of Business

T-Mobile US, Inc. (“T-Mobile” or the “Company”), together with its consolidated subsidiaries, provides mobile
communications services under the T-Mobile and MetroPCS brands in the United States, Puerto Rico and the U.S. Virgin
Islands. T-Mobile provides services using 4G Long-Term Evolution (“LTE”), Evolved 4G High Speed Packet Access (“HSPA
+”), Universal Mobile Telecommunications Systems (“UMTS”), General Packet Radio Service (“GPRS”), Enhanced Data rates
for GSM Evolution (“EDGE”), and Global System for Mobile Communications (“GSM”) technologies. T-Mobile also offers a
wide selection of wireless handsets and accessories, including smartphones, wireless-enabled computers such as notebooks and
tablets, and data cards. Additionally, T-Mobile provides reinsurance for handset insurance policies and extended warranty
contracts offered to T-Mobile’s mobile communications customers through a wholly-owned single-parent captive insurance
company.

Basis of Presentation

The consolidated financial statements include the balances and results of operations of T-Mobile and its consolidated
subsidiaries. T-Mobile consolidates all majority-owned subsidiaries over which it exercises control, as well as variable interest
entities where it is deemed to be the primary beneficiary and variable interest entities which cannot be deconsolidated.
Intercompany transactions and balances have been eliminated in consolidation.

On April 30, 2013, the business combination involving T-Mobile USA, Inc. (“T-Mobile USA”) and MetroPCS
Communications, Inc. (“MetroPCS”) was completed. In connection with the business combination, MetroPCS acquired all of
the outstanding capital stock of T-Mobile USA beneficially owned by Deutsche Telekom AG (“Deutsche Telekom”) in
consideration for the issuance of shares of common stock representing a majority of the fully diluted shares of the combined
company. MetroPCS was subsequently renamed T-Mobile US, Inc. and is the consolidated parent of the Company’s
subsidiaries, including T-Mobile USA. The business combination was accounted for as a reverse acquisition with T-Mobile
USA as the accounting acquirer. Accordingly, T-Mobile USA’s historical financial statements became the historical financial
statements of the combined company. The common shares outstanding and earnings (loss) per share presented for periods up to
April 30, 2013 reflect the common shares issued to T-Mobile Global Holding GmbH (“T-Mobile Holding”), an indirect wholly-
owned subsidiary of Deutsche Telekom, in connection with the reverse acquisition. See Note 2 – Business Combinations for
further information.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of
America (“GAAP”) requires management to make estimates and assumptions that affect the financial statements and
accompanying notes. Examples include service revenues earned but not yet billed, allowances for uncollectible accounts and
sales returns, guarantee liabilities, tax liabilities, deferred income taxes, including valuation allowances, useful lives of long-
lived assets, reasonably assured renewal terms for operating leases, stock-based compensation forfeiture rates, and fair value
measurements related to goodwill, spectrum licenses, intangible assets, and derivatives. Estimates are based on historical
experience, where applicable, and other assumptions that management believes are reasonable under the circumstances. These
estimates are inherently subject to judgment and actual results could differ from those estimates.

Segments

T-Mobile operates as a single operating segment. As of December 31, 2013 and 2012, and for the years ended December 31,
2013, 2012 and 2011, all of T-Mobile’s long-lived assets and revenues related to operations in the United States, Puerto Rico
and the U.S. Virgin Islands.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current presentation. In 2013, the Company reclassified
prior year amounts to conform to the current presentation in the consolidated statements of cash flows for the years ended
December 31, 2012 and 2011. The Company reclassified the amounts in the current period and all prior periods, with the
reclassification having no impact on net cash from operating activities. Additionally, in 2013, the Company recategorized the
components of property and equipment for buildings and equipment, leasehold improvements, and wireless communication
systems as of December 31, 2013 and 2012.

Cash and Cash Equivalents

Cash equivalents consist of highly liquid interest-earning investments with remaining maturities of three months or less at the
date of purchase. Cash equivalents are stated at cost, which approximates fair value.

T-Mobile is required to restrict cash equivalents as collateral for certain agreements. Cash equivalents with use restrictions of
less than twelve months are classified as current. Restricted cash equivalents included in other current assets were $100 million
as of December 31, 2013. There were no significant restricted cash equivalents as of December 31, 2012.

Outstanding checks included in accounts payable and accrued liabilities were $342 million and $271 million as of
December 31, 2013 and 2012, respectively.

Accounts Receivable and Allowances

Accounts receivable consist of amounts billed and currently due from customers, other carriers and third-party retail channels
(“dealers”), as well as revenues earned but not yet billed at the end of each period. T-Mobile maintains an allowance for
estimated losses resulting from uncollectible balances based on a number of factors, including collection experience, aging of
the accounts receivable portfolio, credit quality of the customer base and other qualitative factors such as macro-economic
conditions. The Company writes off account balances if collection efforts are unsuccessful and future collection is unlikely,
based on customer credit ratings and the length of time from the original billing date.

Equipment Installment Plan Receivables and Allowances

The Company offers certain retail customers the option to pay for their devices and other purchases in installments using an
Equipment Installment Plan (“EIP”). At the time of sale, the Company imputes interest, inclusive of credit risk, on the EIP
receivables and records the deferred interest as a reduction to equipment sales and as an allowance against the related accounts
receivable. Interest income is recognized over the financed installment term.

Subsequent to the initial determination of deferred interest T-Mobile assesses the need for and, if necessary, recognizes an
additional allowance for credit losses, which are expected to exceed the remaining deferred interest balances. The allowance
is based on a number of factors, including collection experience, aging of the accounts receivable portfolio, credit quality of the
customer base, and other qualitative factors such as macro-economic conditions. T-Mobile writes off account balances if
collection efforts were unsuccessful and future collection is unlikely based on customer credit ratings and the length of time
from the original billing date. Equipment sales that are not reasonably assured to be collectible are recorded on a cash basis as
payments are received.

Inventory

The Company’s inventory consists primarily of wireless handsets and accessories, which are valued at the lower of cost or
market. Cost is determined using standard cost which approximates average cost. T-Mobile sells handsets and other mobile
communication devices separately and in connection with service contracts. To the extent the Company sells wireless handsets
and other mobile communication devices at prices below cost, the loss on the sale of the handset (“handset subsidy”) is
recognized at the time of the sale. The handset subsidy is expected to be recovered through future service revenue provided to
the customer. Shipping and handling costs paid to wireless handset, device and accessory vendors are included in the standard
cost of inventory. T-Mobile records inventory write-downs for obsolete and slow-moving items based on inventory turnover
trends and historical experience.

Long-Lived Assets

Long-lived assets include assets such as property and equipment and intangible assets that do not have indefinite lives. The
Company assesses potential impairments to its long-lived assets when events or changes in circumstances indicate that the
carrying value may not be recoverable and exceeds the fair value of the respective asset or asset group. The carrying value of a
long-lived asset or asset group is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from
the use and eventual disposition of the asset or asset group. An impairment loss is measured as the amount by which the
carrying amount of a long-lived asset or asset group exceeds its fair value.

Property and equipment

T-Mobile’s components of property and equipment consist of buildings and equipment, wireless communication systems,
leasehold improvements, capitalized software and construction in progress. Buildings and equipment include certain network
server equipment. Wireless communication systems include assets to operate the Company’s wireless network and IT data
centers, including tower asset leaseholds, assets related to the liability for the retirement of long-lived assets and capital leases.
Leasehold improvements include asset improvements other than those related to the wireless network.

Property and equipment are recorded at cost less accumulated depreciation and impairments, if any. Costs of major
replacements and improvements are capitalized. Repair and maintenance expenditures that do not enhance or extend the asset’s
useful life are charged to operating expenses as incurred. Construction costs, labor and overhead incurred in the expansion or
enhancement of T-Mobile’s wireless network are capitalized. Capitalization commences with pre-construction period
administrative and technical activities, which includes obtaining leases, zoning approvals and building permits, and ceases at
the point at which the asset is ready for its intended use. T-Mobile capitalizes interest associated with the acquisition or
construction of certain property and equipment. Capitalized interest is reported as a reduction in interest expense and
depreciated over the average useful life of the related assets. The Company recognized capitalized interest of $5 million, $9
million and $24 million for the years ended December 31, 2013, 2012 and 2011, respectively. Depreciation commences once
assets have been placed in service and is computed using the straight-line method over the estimated useful life of each asset.
Depreciable life studies are performed periodically to confirm the appropriateness of useful lives for certain categories of
property and equipment. These studies take into account actual usage, physical wear and tear, replacement history and
assumptions about technology evolution. When these factors indicate that an asset’s useful life is different from the previous
assessment, the remaining book value is depreciated prospectively over the adjusted remaining estimated useful life. Leasehold
improvements are depreciated over the shorter of their estimated useful lives or the related lease term.

T-Mobile records a liability for the fair value of legal obligations associated with the retirement of tangible long-lived assets
and a corresponding increase in the carrying amount of the related asset in the period in which the obligation is incurred. Over
time, the liability is accreted to its present value, and the capitalized cost is depreciated over the estimated useful life of the
asset. The Company’s obligations relate primarily to certain legal obligations to remediate leased property on which the
Company’s network infrastructure and administrative assets are located. The Company’s liability associated with the
retirement of long-lived assets was $388 million and $136 million as of December 31, 2013 and 2012, respectively. The
corresponding asset, net of accumulated depreciation, related to the liability for the retirement of long-lived assets was $240
million and $64 million as of December 31, 2013 and 2012, respectively. The Company recognized accretion expense in cost
of services of $15 million, $7 million and $7 million for the years ended December 31, 2013, 2012 and 2011, respectively.
During the year ended December 31, 2013, T-Mobile assumed asset retirement obligations in connection with the business
combination with MetroPCS of $211 million. During the year ended December 31, 2012, no significant liabilities related to the
asset retirement obligation were incurred or settled.

Capital Leases

Capital lease agreements are primarily for distributed antenna systems (“DAS”). Assets related to capital leases are included in
wireless communication systems. Future obligations related to capital leases are included in short-term debt and long-term
debt, respectively. Depreciation of assets held under capital leases is included in depreciation and amortization expense.

Software Capitalization

The Company capitalizes certain costs incurred in connection with developing or acquiring internal use software.
Capitalization of software costs commences once the final selection of the specific software solution has been made and
management authorizes and commits to funding the software project; capitalization ceases at the point at which the software is
ready for its intended use. Capitalized costs include direct development costs associated with internal use software, including
internal direct labor costs and external costs of materials and services. Capitalized software costs are included in property and
equipment, net and amortized on a straight-line basis over the estimated useful life of the asset. Costs incurred during the
preliminary project stage, as well as maintenance and training costs are expensed as incurred.

Other Intangible Assets

Intangible assets that have finite useful lives are amortized over their useful lives. Customer lists are amortized using the sum-
of-the-years-digits method over the expected period in which the relationship is expected to contribute to future cash flows.
The remaining finite-lived intangible assets are generally amortized using the straight-line method.

Goodwill

Goodwill consists of the excess of the purchase price over the fair value of net identifiable assets acquired in a business
combination.

Spectrum Licenses

Spectrum licenses are carried at costs incurred to acquire the licenses and the costs to prepare the licenses for their intended
use, if any. The Company has determined that its spectrum licenses should be treated as indefinite-lived intangible assets. The
Federal Communications Commission (“FCC”) issues spectrum licenses that authorize wireless carriers to provide service in
specific geographic service areas for up to fifteen years. The spectrum licenses provide the Company with the exclusive right
to utilize designated radio frequency spectrum to provide mobile communication services. The FCC has specific standards
applying to wireless spectrum license renewals which provide that it will award a spectrum license renewal to a licensee that
has met certain standards based on past performance. Historically, the FCC has granted license renewals routinely and at a
nominal cost. The spectrum licenses held by the Company expire at various dates; however, the Company believes it will be
able to meet all requirements necessary to secure renewal of its spectrum licenses. Moreover, the Company has determined that
there are currently no legal, regulatory, contractual, competitive, economic or other factors that limit the useful lives of its
spectrum licenses and therefore treats the spectrum licenses as indefinite-lived intangible assets. The Company at times enters
into agreements to sell or exchange spectrum licenses. At the time of entering into the arrangement, if the transaction has been
deemed to have commercial substance, spectrum licenses are reviewed for impairment and transferred at their carrying value,
net of any impairment, to assets held for sale included within other current assets until approval and completion of the
exchange or sale. Spectrum licenses acquired as part of an exchange of nonmonetary assets are valued at fair value at the time
the exchange occurs. If the transaction lacks commercial substance or the fair value is not measurable, the acquired spectrum
licenses are recorded at the book value of the assets tendered.

Impairment Tests of Goodwill and Indefinite-Lived Intangible Assets

The Company assesses the carrying value of its goodwill and other indefinite-lived intangible assets (spectrum licenses) for
potential impairment annually as of December 31 or more frequently if events or changes in circumstances indicate such assets
might be impaired.

The Company uses a two-step process to determine impairments of goodwill, which is performed at the reporting unit level. T-
Mobile operates as a single reporting unit. In the first step, the Company compares the fair value of the reporting unit,
calculated using a market approach or a discounted cash flow method, to the carrying value. If the fair value is less than the
carrying value, the second step is performed. In the second step, the Company determines the fair values of all of the assets
and liabilities of the reporting unit, including those that may not be currently recorded. The excess of the fair value of the
reporting unit over the sum of the fair value of all of those assets and liabilities represents the implied goodwill amount. If the
implied fair value of goodwill is lower than its carrying amount, an impairment loss is recognized for the difference.

The Company tests its spectrum licenses for impairment on an aggregate basis, consistent with the Company's management of
the overall business at a national level. The Company estimates fair value using the Greenfield approach, which is an income
approach, to estimate the price at which an orderly transaction to sell the asset would take place between market participants at
the measurement date under current market conditions. If the estimated fair value of the spectrum licenses is lower than their
carrying amount, an impairment loss is recognized for the difference.

Guarantee Liabilities

T-Mobile offers a handset upgrade program that provides eligible customers a specified-price trade-in right to upgrade their
handset, up to twice a year following completion of an initial six-month enrollment period. Participating customers must
finance their handset using an EIP. Upon upgrading, the customer will receive a credit in the amount of the outstanding EIP
balance provided they trade in their eligible used handset in good working condition and purchase a new handset from T-
Mobile.

For customers who enroll in the trade-in programs, the Company defers the portion of equipment sales revenue which
represents the estimated value of the specified-price trade-in right guarantee. The guarantee liabilities are valued based on
various economic and customer behavioral assumptions, including the customer's estimated remaining EIP balance at trade-in,
the expected fair value of the used handset at trade-in, and probability and timing of trade-in. When the customer upgrades
their handset, the difference between the trade-in credit to the customer and the fair value of the returned handset is recorded
against the guarantee liabilities. Guarantee liabilities included in other current liabilities were $191 million as of December 31,
50

2013. The estimated EIP receivable balance as of December 31, 2013 if all enrolled handset upgrade program customers were
to claim their benefit at the earliest contractual time of eligible trade-in, not including any trade-in value of the required used
handset, would be $1.2 billion. This amount is not an indication of the Company’s expected loss exposure because it does not
consider the expected fair value of the used handset, which is required to be in good working condition at trade-in, nor does it
consider the probability and timing of trade in. There were no guarantee liabilities or maximum potential for losses under the
guarantee as of December 31, 2012 as the program was introduced in the third quarter of 2013.

Fair Value Measurements

T-Mobile accounts for certain assets and liabilities at fair value. Fair value is a market-based measurement which is determined
based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such
assumptions, T-Mobile uses the three-tiered fair value hierarchy, which prioritizes the inputs used in measuring fair value as
follows:

Level 1
Level 2
Level 3

Observable inputs that reflect quoted prices in active markets for identical assets or liabilities;
Inputs other than the quoted prices in active markets that are observable either directly or indirectly; and
Unobservable inputs for which there is little or no market data, which require T-Mobile to develop its own
assumptions.

T-Mobile uses observable market data, when available. Assets and liabilities measured at fair value included interest rate swaps
and cross currency interest rate swaps.

The carrying values of cash and cash equivalents, accounts receivable, accounts receivable from affiliates and accounts payable
approximate fair value due to the short-term maturities of these instruments. There were no financial instruments with a
carrying value materially different from their fair value, based on quoted market prices or rates for the same or similar
instruments, or internal valuation models.

Derivative Financial Instruments

Derivative instruments are recorded on the balance sheet at fair values. Changes in the fair value of derivative instruments are
recognized in net income (loss) or other comprehensive income (loss), depending on the type of derivative and whether the
derivative is designated as part of an effective hedge transaction. T-Mobile does not enter into derivatives for trading or
speculative purposes.

For derivative instruments not designated as hedging instruments, gains (losses) from changes in fair value are recognized in
interest expense.

For derivative instruments designated as cash flow hedges the effective portion of the gains (losses) from changes in fair value
are initially reported as a component of other comprehensive income (loss) and subsequently recognized in interest expense in
the period during which the hedged transaction affects earnings. The ineffective portion of the gains (losses), if any, is
immediately recognized in interest expense. To receive hedge accounting treatment, cash flow hedges must be highly effective
in offsetting changes to expected future cash flows of the hedged transaction.

Revenue Recognition

Service revenues are earned from providing access to and usage of the Company's mobile communications network and are
recognized when the service is rendered. Service revenues also include revenues earned for providing value added services to
customers, such as handset insurance services. Branded postpaid service revenues may be billed in advance or in arrears
depending on the plan or contract entered into by the customer. Branded prepaid service revenues include revenues earned
from pay-in-advance customers generally not originated under contract; recognition of prepaid revenue is deferred until
services are rendered or the prepaid balance expires. Access revenue from customers paying a recurring charge for specified
services is recognized ratably over the service period. Usage revenue, including roaming revenue and long-distance revenue, is
recognized when the service is rendered. Wholesale revenues are earned for providing services to mobile virtual network
operators and machine-to-machine customers and recognized when the service is provided. Roaming and other service
revenues primarily include revenues from other wireless carriers for roaming by their customers on the Company's network.
Equipment sales, including those on EIP, are composed of revenues from the sale of mobile communication devices and
accessories and recognized when the products are delivered to the customer or dealer. Equipment sales that are not reasonably
assured to be collectible are recorded on a cash basis as payments are received. For customers enrolled in the JUMP! program,
the Company defers a portion of equipment sales revenue. See Guarantee Liabilities for more information.

The Company sells both wireless services and equipment to customers through its company-owned sales channels. For
contracts that involve multiple components, such as wireless services and equipment, revenue is allocated between the separate
units of accounting, based on such components' relative selling prices on a standalone basis, subject to the requirement that
revenue recognized is limited to the amounts already received from the customer that are not contingent upon the delivery of
additional products or services to the customer in the future. To the extent the Company charges nonrefundable, up-front
activation fees and associated costs, the related revenues are deferred and amortized over the estimated term of the customer
relationship.

Federal Universal Service Fund (“USF”) and other fees are assessed by various governmental authorities in connection with the
services the Company provides to its customers. When the Company separately bills and collects these regulatory fees from
customers, they are recorded gross in service revenues and cost of services. For the years ended December 31, 2013, 2012 and
2011, the Company recorded approximately $362 million, $455 million and $463 million, respectively, of USF and other fees
on a gross basis.

Sales, use and excise taxes for all service plans are reported on a net basis in selling, general and administrative expenses.

Lease Accounting

The Company has operating leases for its cell sites, retail locations, corporate offices and dedicated transportation lines, some
of which have escalating rentals during the initial lease term and during subsequent optional renewal periods. The Company
recognizes rent expense on a straight-line basis, over the initial lease term and renewal periods that are considered reasonably
assured at the inception of the lease.

Advertising Expense

T-Mobile expenses the cost of advertising and other promotional expenditures to market the Company's brand as incurred.
Advertising expense was $1.0 billion, $949 million and $711 million for the years ended December 31, 2013, 2012 and 2011,
respectively.

Income Taxes

Deferred tax assets and liabilities are recognized based on temporary differences between the financial statement and tax bases
of assets and liabilities using enacted tax rates expected to be in effect when these differences are realized. A valuation
allowance is recorded when it is more likely than not that some portion or all of a deferred tax asset will not be realized. The
ultimate realization of a deferred tax asset depends on the ability to generate sufficient taxable income of the appropriate
character and in the appropriate taxing jurisdictions within the carryforward periods available.

The Company accounts for uncertainty in income taxes recognized in the financial statements in accordance with the
accounting guidance on the financial statement recognition and measurement of a tax position taken or expected to be taken in
a tax return. The Company uses judgment to determine whether it is more likely than not that a tax position will be sustained
upon examination based on the technical merits of the position and adjusts unrecognized tax benefits in light of changes in facts
and circumstances, such as changes in tax law, interactions with taxing authorities and developments in case law.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) for the years ended December 31, 2013, 2012 and 2011 consisted of adjustments, net of
tax, related to unrealized gains (losses) on available-for-sale securities, unrealized gains (losses) on cash flow hedging
derivatives, and unrealized gains (losses) on foreign currency translation. These are reported in accumulated other
comprehensive income as a separate component of stockholders’ equity until realized in earnings.

Stock-Based Compensation

Stock-based compensation cost for stock awards, which include restricted stock units (“RSUs”) and performance stock units
(“PSUs”), is measured at fair value on the grant date and recognized as expense, net of expected forfeitures, over the related
service period. The fair value of stock awards is based on the closing price of T-Mobile common stock on the date of grant.
RSUs are recognized as expense using the straight-line method. PSUs are recognized as expense following a graded vesting
schedule.

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed based on the weighted-average number of common shares outstanding for the
period. Diluted earnings (loss) per share is computed based on the weighted-average number of common shares outstanding
for the period plus the effect of potential dilutive common shares outstanding during the period, calculated using the treasury
stock method. Potential dilutive common shares consist of outstanding stock options, RSU and PSU awards.

Concentrations of Risk

The Company sells handsets, wireless data devices and prepaid cards to T-Mobile's dealer network. T-Mobile's policy is to
limit the amount of credit granted to individual dealers and to regularly monitor the dealer accounts receivable balances and
activity. No dealer or customer accounted for greater than 10% of revenues or accounts receivable at December 31, 2013 or
2012.

T-Mobile purchases a substantial portion of its wireless infrastructure equipment and handsets from only a few major suppliers.
Loss of any of these suppliers could adversely affect operations until a comparable substitute could be found.

Local and long-distance telephone and other companies provide certain communication services to T-Mobile. Disruption of
these services could adversely affect operations until an alternative telecommunication provider could be found.

Variable Interest Entities

Variable Interest Entities (“VIEs”) are entities that lack sufficient equity to permit the entity to finance its activities without
additional subordinated financial support from other parties, or have equity investors that do not have the ability to make
significant decisions relating to the entity's operations through voting rights, or do not have the obligation to absorb the
expected losses, or do not have the right to receive the residual returns of the entity. The most common type of VIE is a
special purpose entity (“SPE”). SPEs are commonly used in securitization transactions in order to isolate certain assets and
distribute the cash flows from those assets to investors. SPEs are generally structured to insulate investors from claims on the
SPE's assets by creditors of other entities, including the creditors of the seller of the assets.

The primary beneficiary is required to consolidate the assets and liabilities of the VIE. The primary beneficiary is the party that
has both the power to direct the activities of an entity that most significantly impact the VIE's economic performance; and
through its interests in the VIE, the obligation to absorb losses or the right to receive benefits from the VIE that could
potentially be significant to the VIE. The Company performs an assessment to determine the primary beneficiary of the VIEs.
T-Mobile consolidates VIEs when it is deemed to be the primary beneficiary or when the VIE cannot be deconsolidated. The
Company's Master Prepaid Lease Site SPEs created in the Tower Transaction are variable interest entities. See Note 8 – Tower
Transaction and Related Long-Term Financial Obligation for further information.

Cook Inlet/VoiceStream GSM VII PCS Holdings LLC, (“CIVS VII”) was a joint venture funded by contributions from T-
Mobile and Cook Inlet Voice and Data Services, Inc. (“Cook Inlet”). CIVS VII was managed by Cook Inlet and owned
spectrum licenses. T-Mobile utilized these spectrum licenses under certain operating agreements and compensated CIVS VII
based on minutes of use. As T-Mobile was deemed to be the primary beneficiary, CIVS VII was a VIE and its results were
consolidated in the Company’s financial statements, which included $236 million in assets held by the joint venture as of
December 31, 2012. In 2013, T-Mobile agreed to pay Cook Inlet approximately $94 million, which included $14 million for
interest, to purchase the remaining interest in CIVS VII from Cook Inlet, which resulted in CIVS VII becoming an indirect
wholly-owned subsidiary of T-Mobile USA. CIVS VII was subsequently combined with, and net assets transferred to, T-
Mobile License LLC, a wholly-owned restricted subsidiary of T-Mobile USA.

Recently-Issued Accounting Standards

In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02,
“Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” The standard requires entities to
present information about reclassification adjustments from accumulated other comprehensive income in a single note or on the
face of the financial statements. The standard also requires that entities present either in a single note or parenthetically on the
face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other
comprehensive income based on its source and the income statement line items affected by the reclassification. If a component
is not required to be reclassified to net income in its entirety, the entity should instead cross reference to the related footnote for
additional information. The new guidance was effective for T-Mobile for the year ended December 31, 2013. The

implementation of this standard affected T-Mobile’s disclosures but did not affect its financial condition, results of operations
or cash flows.

Note 2 – Business Combinations

Transaction with MetroPCS

Transaction Overview

On October 3, 2012, Deutsche Telekom, T-Mobile Global Zwischenholding GmbH, a direct wholly-owned subsidiary of
Deutsche Telekom (“T-Mobile Global”), T-Mobile Holding, a direct wholly-owned subsidiary of T-Mobile Global, T-Mobile
USA and MetroPCS entered into a Business Combination Agreement (“BCA”) for the business combination of T-Mobile USA
and MetroPCS, which was subsequently amended on April 14, 2013. The business combination provides the Company with
expanded scale, spectrum, and financial resources to compete aggressively with other larger U.S. wireless carriers. The
stockholders of MetroPCS approved the business combination on April 24, 2013, and the transaction closed on April 30, 2013
(“Acquisition Date”).

The transaction was accounted for as a reverse acquisition under the acquisition method of accounting with T-Mobile USA
considered to be the accounting acquirer based upon the terms and conditions set forth in the BCA, including the ability of T-
Mobile USA’s stockholder, Deutsche Telekom, to nominate a majority of the board of directors of the Company and Deutsche
Telekom’s receipt of shares representing a majority of the outstanding voting shares of the Company. Based on the
determination that T-Mobile USA was the accounting acquirer in the transaction, the Company has allocated the purchase price
to the fair value of MetroPCS’s assets and liabilities as of the Acquisition Date, with the excess purchase price recorded as
goodwill.

Accordingly, the acquired assets and liabilities of MetroPCS are included in the Company’s consolidated balance sheets as of
December 31, 2013 and the results of its operations and cash flows are included in the Company’s consolidated statements of
comprehensive income (loss) and cash flows for the period from May 1, 2013 through December 31, 2013.
Pursuant to the terms and the conditions as set forth in the BCA:

• Deutsche Telekom recapitalized T-Mobile USA by retiring T-Mobile USA’s long-term debt to affiliates principal

balance of $14.5 billion and all related derivative instruments in exchange for $11.2 billion in new long-term debt to
affiliates and additional paid-in capital prior to the closing of the business combination.

• Deutsche Telekom provided T-Mobile USA with a $500 million unsecured revolving credit facility.
• MetroPCS effected a recapitalization which consisted of a reverse stock split of the MetroPCS common stock and an

aggregate cash payment of $1.5 billion to the MetroPCS stockholders on the Acquisition Date.

• Thereafter, MetroPCS acquired all of T-Mobile USA’s capital stock from T-Mobile Holding in exchange for common

stock representing approximately 74% of the fully diluted shares of the combined company’s common stock on the
Acquisition Date.

Debt Recapitalization

In connection with the recapitalization of T-Mobile USA, certain outstanding balances with Deutsche Telekom were settled
prior to the closing of the business combination. The debt recapitalization was accounted for as a debt extinguishment with the
effects being treated as a capital transaction. The effects on additional paid-in capital as a result of the debt recapitalization are
presented in the following table:

(in millions)

Retirement of long-term debt to affiliates

Elimination of net unamortized discounts and premiums on long-term debt to affiliates

Issuance of new long-term debt to affiliates

Settlement of accounts receivable from affiliates and other outstanding balances

Income tax effect

Total

Debt
Recapitalization

14,450

434

(11,200)

(363)

(178)

3,143

Reverse Stock Split

On April 30, 2013, as contemplated by the BCA, the Company amended and restated its existing certificate of incorporation in
its entirety in the form of the Fourth Amended and Restated Certificate of Incorporation to, among other things, effect a reverse
stock split of MetroPCS’s common stock, and change its name to T-Mobile US, Inc. On the Acquisition Date, the Company
issued to T-Mobile Holding 535,286,077 shares of common stock in exchange for T-Mobile Holding transferring to the
Company all of its rights, title and interest in and to all the equity interests of T-Mobile USA. After giving effect to this
transaction, the shares of the Company’s common stock issued to T-Mobile Holding represented approximately 74% of the
fully diluted shares of the Company’s common stock on the Acquisition Date. Immediately prior to the Acquisition Date, each
issued share of MetroPCS was reverse split, and at consummation of the business combination each issued share was canceled
and converted into shares of the Company’s stock totaling 184,487,309 shares of common stock, exclusive of 1,382,505 shares
in treasury.

Consideration Transferred

The fair value of the consideration transferred in a reverse acquisition was determined based on the number of shares the
accounting acquirer (T-Mobile USA, the legal acquiree) would have had to issue to the stockholders of the accounting acquiree
(MetroPCS, the legal acquirer) in order to provide the same ratio of ownership in the combined entity (approximately 26%) as a
result of the transaction. The fair value of the consideration transferred was based on the most reliable measure, which was
determined to be the market price of MetroPCS shares as of the Acquisition Date.

The fair value of the consideration transferred, based on the market price of MetroPCS shares on the Acquisition Date,
consisted of the following:

(in millions)

Fair value of MetroPCS shares

Fair value of MetroPCS stock options

Cash consideration paid to MetroPCS stock option holders

Total purchase consideration

Purchase
Consideration

2,886

2,971

The fair value of the MetroPCS shares was determined by using the closing price of MetroPCS common stock on the New York
Stock Exchange on the Acquisition Date, prior to giving effect to the reverse stock split, of $11.84 per share, adjusted by the
$4.05 per share impact of the $1.5 billion cash payment, which was a return of capital to the MetroPCS stockholders made as
part of the recapitalization prior to the stock issuance to T-Mobile Holding. This resulted in an adjusted price of $7.79 per share
unadjusted for the effects of the reverse stock split.

Pursuant to the BCA, unvested MetroPCS stock options and shares of restricted stock immediately vested as of the closing of
the business combination and were adjusted to give effect to the recapitalization. Holders of stock options for which the
exercise price was less than the average closing price of MetroPCS’s common stock for the five days preceding the closing
(“in-the-money options”) had the right to receive, at their election, a cash payment based on the amount by which the average
closing price exceeded the exercise price of the options. In-the-money options held by holders who made this election were
canceled. Finally, stock options with low exercise prices, as defined in the BCA, were canceled in exchange for cash
consideration.

Purchase Price Allocation

As T-Mobile USA was the accounting acquirer in the business combination, it has allocated the purchase price to the MetroPCS
individually identifiable assets acquired and liabilities assumed based on their estimated fair values on the Acquisition Date.
The excess of the purchase price over those fair values was recorded as goodwill. The determination of the fair values of the
acquired assets and assumed liabilities required significant judgment, including estimates relating to the decommissioning of
network cell sites, the determination of estimated lives of depreciable and intangible assets, and the calculation of the value of
inventory, spectrum licenses, customer lists, and trademarks.

The following table summarizes the allocation of the purchase price:

(in millions)

Assets

Cash and cash equivalents

Accounts receivable, net

Inventory

Other current assets

Property and equipment

Spectrum licenses

Other intangible assets

Other assets

Total assets acquired

Liabilities and Stockholders’ Equity

Accounts payable and accrued liabilities

Deferred revenues

Other current liabilities

Deferred tax liabilities

Long-term debt

Other long-term liabilities

Total liabilities assumed

Net identifiable assets acquired

Goodwill

Net assets acquired

Fair Value

2,144

171

240

1,475

3,818

1,376

9,332

475

187

735

6,277

355

8,044

1,288

1,683

2,971

The goodwill recognized was attributable primarily to expected synergies from combining the businesses of T-Mobile USA and
MetroPCS, including, but not limited to, the following:

• Expected cost synergies from reduced network-related expenses through the elimination of redundant assets.
• Enhanced spectrum position which will provide greater network coverage and improved 4G LTE coverage in key markets
across the country and the ability to offer a wider array of products, plans and services to the Company’s customers.

None of the goodwill is deductible for income tax purposes.

For the years ended December 31, 2013 and 2012, the Company recognized transaction costs of $41 million and $7 million,
respectively. Transaction costs generally included personnel-related costs associated with the change in control and other
acquisition-related charges. For the year ended December 31, 2013, the Company recognized integration costs of $67 million.
Integration costs generally included costs associated with decommissioning overlapping cell sites and combining information
technology infrastructures. These costs are included in MetroPCS transaction and integration costs in the consolidated
statements of comprehensive income (loss).

Consolidated Statements of Comprehensive Income (Loss) for MetroPCS Operations

The following supplemental information presents the financial results of MetroPCS operations included in the consolidated
statements of comprehensive income (loss) since May 1, 2013 for the year ended December 31, 2013:

(in millions)

Total revenues

Income before income taxes

Year Ended
December 31,
2013

3,366

143

Pro Forma Financial Information (Unaudited)

The following pro forma consolidated results of operations for the years ended December 31, 2013 and 2012 assume the
business combination was completed as of January 1, 2012, respectively:

(in millions, except per share amounts)

Pro forma revenues

Pro forma net income (loss)

Pro forma basic earnings (loss) per share

Pro forma diluted earnings (loss) per share

Year Ended December 31,

2013

2012

26,158

0.07

24,941

(7,297)

(10.15)

The pro forma amounts include the historical operating results of T-Mobile USA and MetroPCS prior to the business
combination, with adjustments directly attributable to the business combination relating to purchase accounting adjustments to
conform to accounting policies that affect total revenues, total operating expenses, interest expense, other income (expense),
income taxes expense, and eliminate intercompany activities.

As the pro forma amounts assumed the business combination was completed as of January 1, 2012, pro forma earnings for the
year ended December 31, 2013 excluded $213 million of transaction costs and these costs were included in the pro forma
earnings for the year ended December 31, 2012.

The pro forma results include the following:

•

Increase in tax expenses based on the inclusion of MetroPCS in the combined company of $63 million for the year
ended December 31, 2013 and a decrease of $215 million for the year ended December 31, 2012;

• Net decrease to amortization and depreciation expense related to the fair value of the intangible assets and fixed assets
acquired of $19 million for the year ended December 31, 2013 and a net increase of $168 million for the year ended
December 31, 2012, respectively; and

• The impact of financing agreements entered into whereby an aggregate of $14.7 billion senior unsecured notes were

issued and $14.5 billion of senior unsecured notes previously issued by T-Mobile USA to Deutsche Telekom and $2.5
billion of senior unsecured notes previously issued by MetroPCS were retired in connection with the business
combination for a net increase to interest and other income (expense) of $91 million and $119 million for the year
ended December 31, 2013 and 2012, respectively.

Termination of Agreement for Sale of T-Mobile to AT&T

In 2011, AT&T and Deutsche Telekom jointly announced the termination of a definitive agreement (“Stock Purchase
Agreement”) under which AT&T would have acquired T-Mobile USA from Deutsche Telekom in a cash and stock transaction.
AT&T agreed to provide Deutsche Telekom with additional consideration (“break-up consideration”) under the terminated
Stock Purchase Agreement. As a result, AT&T made a $3.0 billion cash payment to Deutsche Telekom in December 2011. The
break-up consideration also included the right to the transfer of Advanced Wireless Services spectrum (“AWS spectrum”) and a
long-term agreement on UMTS roaming within the U.S. that was subsequently entered into in 2012. None of the components
of the break-up consideration were reflected in T-Mobile’s consolidated financial statements as of December 31, 2011.

During the year ended December 31, 2012, T-Mobile acquired spectrum licenses valued at $1.2 billion from Deutsche Telekom
related to the break-up consideration.

In connection with this terminated transaction, T-Mobile USA incurred AT&T transaction-related costs, primarily consisting of
employee-related expenses, included in other, net in the consolidated statements of comprehensive income (loss) of $20 million
and $187 million for the years ended December 31, 2012 and 2011, respectively.

Note 3 – Equipment Installment Plan Receivables

T-Mobile offers certain retail customers the option to pay for their devices and other purchases in installments over a period of
up to 24 months. The carrying values of EIP receivables approximate fair value as the receivables are recorded at their present
value, net of the deferred interest and additional allowance for credit losses. At the time of sale, the Company imputes interest,
inclusive of credit risk, on the EIP receivables and records the deferred interest as a reduction to equipment sales and as an
allowance against the related accounts receivable. Interest income is recognized over the financed installment term.

The following table summarizes the EIP receivables:

(in millions)

EIP receivables, gross

Deferred interest

EIP receivables, net of deferred interest

Allowance for credit losses

EIP receivables, net

Classified on the balance sheet as:

Accounts receivable, net

Other assets

EIP receivables, net

December 31,
2013

December 31,
2012

2,882

(276)

2,606

(60)

2,546

1,471

1,075

2,546

816

(110)

706

(15)

691

475

216

691

Based upon customer credit profiles, T-Mobile classifies EIP receivables into the credit categories of “Prime” and “Subprime”.
T-Mobile uses proprietary scoring systems that measure the credit quality of the EIP receivables using several factors, such as
credit bureau information, consumer credit risk scores and service plan characteristics. Prime customer receivables are those
with lower delinquency risk and Subprime customer receivables are those with higher delinquency risk. Customers within the
Subprime category may be required to pay a significant down payment on their equipment purchases. In addition, certain
customers within the Subprime category are required to pay an advance deposit.

The balance and aging of the EIP receivables on a gross basis by credit category were as follows:

(in millions)

Unbilled

Billed - Current

Billed - Past Due

EIP receivables, gross

December 31, 2013

December 31, 2012

Prime

Subprime

Total

Prime

Subprime

Total

1,482

1,270

2,752

337

432

1,542

1,340

2,882

353

463

769

816

EIP receivables for which invoices have not yet been generated for the customer are considered Unbilled. EIP receivables for
which invoices have been generated but which are not past the contractual due date are considered Billed - Current. EIP
receivables for which invoices have been generated and the payment is past the contractual due date are considered Billed -
Past Due.

T-Mobile maintains an additional allowance for credit losses exceeding the credit risk recorded as deferred interest.

Activity in the deferred interest and allowance for credit losses for the EIP receivables was as follows:

(in millions)

Deferred interest and allowance for credit losses at beginning of year

Bad debt expense

Write-offs, net of recoveries

Change in deferred interest on short-term and long-term installment receivables

Deferred interest and allowance for credit losses at end of year

2013

2012

125

161

(116)

166

336

(80)

125

Note 4 – Property and Equipment

The components of property and equipment were as follows:

(in millions)

Buildings and equipment

Wireless communications systems

Leasehold improvements

Capitalized software

Construction in progress

Accumulated depreciation and amortization

Property and equipment, net

Useful Lives

December 31,
2013

December 31,
2012

Up to 40 years

1,862

Up to 20 years

Up to 12 years

Up to 7 years

24,594

971

6,424

1,147

(19,649)

15,349

1,819

21,030

965

5,078

1,659

(17,744)

12,807

Buildings and equipment, wireless communications systems, leasehold improvements, capitalized software, and construction-
in-progress include $49 million, $1.2 billion, $15 million, $162 million, and $71 million, respectively, acquired through the
business combination with MetroPCS. See Note 2 – Business Combinations for further information.

Wireless communication systems include capital lease agreements primarily for distributed antenna systems, with varying
expiration terms through 2028. As of December 31, 2013, capital lease assets and accumulated amortization were $285 million
and $27 million, respectively. As of December 31, 2012, capital lease assets were not significant.

Depreciation expense relating to property and equipment was $3.4 billion, $3.2 billion and $2.9 billion for the years ended
December 31, 2013, 2012 and 2011, respectively. For the year ended December 31, 2012, the Company recorded additional
depreciation expense of $268 million as a result of adjustments to useful lives of network equipment expected to be replaced in
connection with T-Mobile's network modernization plans.

Note 5 – Goodwill, Spectrum Licenses and Intangible Assets

Goodwill and Spectrum Licenses

Changes in carrying values of goodwill and spectrum licenses were as follows:

(in millions)

Goodwill, gross

Accumulated impairment

Goodwill

Spectrum licenses, gross

Accumulated impairment

Spectrum licenses

December 31,
2011

Net Changes

December 31,
2012

Net Changes

December 31,
2013

18,465

(10,331)

8,134

23,251

(10,437)

12,814

— $

18,465

(8,134)

(8,134) $

(18,465)

— $

1,701

1,736

24,952

(10,402)

14,550

1,683

—

1,683

2,895

677

3,572

20,148

(18,465)

1,683

27,847

(9,725)

18,122

Acquisition of Goodwill and Spectrum Licenses

Changes in 2013 include goodwill and spectrum licenses of $1.7 billion and $3.8 billion, respectively, acquired through the
business combination with MetroPCS. See Note 2 – Business Combinations for further information. In addition, T-Mobile
completed a transaction to purchase AWS spectrum from United States Cellular Corporation (“U.S. Cellular”) for $308 million.
Additionally, the Company entered into an agreement with Verizon Communications Inc. (“Verizon”) to exchange certain AWS
spectrum and Personal Communications Service spectrum (“PCS spectrum”) in November 2013. The transaction is subject to
regulatory approval. A non-cash gain is expected to be recognized upon close of the transaction. Spectrum licenses to be
transferred under various agreements are classified as held for sale and included in other current assets at their carrying value of
$614 million as of December 31, 2013. Spectrum licenses classified as held for sale were not significant as of December 31,
2012.

During the year ended December 31, 2012, the carrying value of spectrum licenses increased primarily as a result of spectrum
acquisition activities. T-Mobile acquired spectrum licenses valued at $1.2 billion from Deutsche Telekom, which Deutsche
Telekom had received from AT&T as a component of the break-up consideration related to the terminated acquisition of T-

Mobile USA by AT&T in 2011. In addition, T-Mobile completed a transaction to purchase from and exchange with Verizon
certain AWS spectrum. As a result of the transaction, the Company received AWS spectrum and transferred certain of its AWS
spectrum along with a cash payment to Verizon. A gain of $156 million was recognized as a result of this transaction and is
recorded in other, net.

Goodwill Impairment and Indefinite-Lived Intangible Assets Assessment

The Company's annual impairment assessment of goodwill and indefinite-lived intangible assets (spectrum licenses) as of
December 31, 2013 resulted in no impairment. The fair value of goodwill is determined using a market method, which is based
on market capitalization. Market capitalization is calculated based on the price of our common stock and number of common
stock outstanding. The Company estimated the fair value of indefinite-lived intangible assets (spectrum licenses) using the
Greenfield approach, which is an income approach.

In October 2012, the business combination of T-Mobile USA and MetroPCS was announced. See Note 2 – Business
Combinations for further information. The Company determined the announced transaction was a triggering event for a
goodwill impairment assessment. The fair value of T-Mobile USA implied by using the market value of MetroPCS and the
exchange terms contemplated in the BCA was less than the carrying amount, including goodwill, of the Company's single
reporting unit. The Company used the fair value implied by the transaction to estimate the fair value of the reporting unit in
step one of its goodwill impairment test as it incorporates observable inputs that are considered as Level 2 in the fair value
hierarchy. As the carrying value exceeded the fair value of the reporting unit, the Company performed the second step in the
goodwill impairment test.

In the second step, the Company concluded that the implied goodwill was zero, and recognized a noncash impairment charge of
$8.1 billion for the year ended December 31, 2012. The Company also recorded a related deferred tax benefit of $74 million
for the year ended December 31, 2012 to reflect the impact on the respective deferred tax liability due to the reduced book to
tax basis difference of goodwill. The Company attributes this impairment to the business impacts from the highly competitive
environment and the ongoing challenges in attracting and retaining branded postpaid customers.

The Company's annual impairment assessment of indefinite-lived intangible assets (spectrum licenses) as of December 31,
2012 resulted in no impairment. The Company estimated the fair value of indefinite-lived intangible assets (spectrum licenses)
using the Greenfield approach, which is an income approach.

In its annual goodwill impairment test as of December 31, 2011, the carrying value of the reporting unit was determined to
exceed its fair value due to the Company experiencing legal and regulatory challenges against a planned sale of the reporting
unit, subscriber declines and lower service revenues. The Company estimated the fair value of the reporting unit using an
income approach, specifically based on the present value of estimated future cash flows. Future cash flows were based on the
Company's estimates of revenues, earnings before interest, tax, depreciation and amortization as a percentage of service
revenues ("EBITDA margin") and a long-term growth rate taking into consideration expected industry and market conditions.
The cash flows were discounted using a weighted average cost of capital reflecting the risks associated with the business and
the projected cash flows. As the estimated fair value of the reporting unit was lower than its carrying value, the Company
performed the second step of the impairment test to determine the amount of the goodwill impairment.

In its annual impairment test of spectrum licenses as of December 31, 2011, the Company estimated the fair value using the
Greenfield approach, which is an income approach. Future cash flows were based on the Company's estimates and
assumptions of revenues, EBITDA margin, network build-out period, and a long-term growth rate for a market participant
taking into consideration expected industry and market conditions. The cash flows were discounted using a weighted average
cost of capital reflecting the risks associated with the business and the projected cash flows. Due to adverse changes in the
competitive landscape and regulatory environment in 2011, management changed its assumptions on which market participants
would be able to transact for the asset leading to declines in the estimated cash flows used to value the spectrum licenses. As
the estimated fair value of the spectrum licenses was lower than its carrying value, the Company recognized the impairment
charge.

In connection with its annual assessment for impairment of goodwill and indefinite-lived intangible assets spectrum licenses as
of December 31, 2011, the Company recorded a noncash impairment charge of $3.9 billion against the carrying value of
goodwill and $2.5 billion against the carrying value of its spectrum licenses for the year ended December 31, 2011. The
Company also recorded a related deferred tax benefit of $1.0 billion for the year ended December 31, 2011 to reflect the impact
on the respective deferred tax liability due to the reduced book to tax basis difference of goodwill and spectrum licenses.

Other Intangible Assets

The components of intangible assets were as follows:

(in millions)

Customer lists

Useful Lives

Up to 6 years

Trademarks and patents

Up to 12 years

Other

Up to 28 years

Other intangible assets

December 31, 2013

December 31, 2012

Gross
Amount

Accumulated
Amortization

Net
Amount

Gross
Amount

Accumulated
Amortization

Net
Amount

1,313

(419) $

292

(38)

(19)

894

254

209

(207) $

(8)

(28)

1,680

(476) $

1,204

322

(243) $

Customer lists, trademarks and other intangible assets include $1.1 billion, $233 million and $39 million respectively, with
useful lives of 6 years, 8 years, and up to 28 years, respectively, related to the business combination with MetroPCS. See Note
2 – Business Combinations for further information.

Amortization expense for intangible assets subject to amortization was $255 million, $27 million and $51 million for the years
ended December 31, 2013, 2012 and 2011, respectively. Estimated aggregate future amortization expense for intangible assets
subject to amortization as of December 31, 2013 are $333 million for the year ending 2014, $279 million in 2015, $223 million
in 2016, $163 million in 2017, $104 million in 2018 and $102 million thereafter.

Note 6 – Fair Value Measurements and Derivative Instruments

Derivative Financial Instruments

Interest Rate Swaps

Prior to the closing of the business combination, T-Mobile managed interest rate risk related to its long-term debt to affiliates
by entering into interest rate swap agreements. T-Mobile held seven interest rate swaps with a total notional amount of $3.6
billion as of December 31, 2012. These interest rate swap agreements were not designated as hedging instruments.

Interest rate swaps were valued using discounted cash flow techniques. These techniques incorporated market-based
observable inputs such as interest rates and credit spreads, considering each instrument’s term, notional amount, discount rate
and credit risk. T-Mobile’s interest rate swaps were classified as Level 2 in the fair value hierarchy.

Prior to the closing of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile by retiring the
existing T-Mobile long-term debt to affiliates and all related derivative instruments, which included the interest rate swaps. The
related balance in accumulated other comprehensive income was reclassified into net income (loss). As of December 31, 2013,
there were no outstanding interest rate swaps.

Cross Currency Interest Rate Swaps

Prior to the closing of the business combination, T-Mobile managed foreign currency risk along with interest rate risk through
cross currency interest rate swap agreements related to its intercompany Euro denominated long-term debt to affiliates, which
were entered into upon assumption of the notes to fix the future interest and principal payments in U.S. dollars, as well as to
mitigate the impact of foreign currency transaction gains or losses over the terms of the long-term debt to affiliates extending to
2025. T-Mobile had three cross currency interest rate swaps with a total notional amount of $2.3 billion as of December 31,
2012. These cross currency interest rate swaps were designated as cash flow hedges and met the criteria for hedge accounting.
The hedges were evaluated as highly effective prior to the closing of the business combination with MetroPCS, thus no gains
(losses) were recognized due to hedge ineffectiveness.

Cross currency interest rate swaps were valued using discounted cash flow techniques. These techniques incorporated market-
based observable inputs such as interest rates and credit spreads, considering each instrument’s term, notional amount, discount
rate and credit risk. T-Mobile’s cross currency interest rate swaps were classified as Level 2 in the fair value hierarchy.

Prior to the closing of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile by retiring the
existing T-Mobile long-term debt to affiliates and all related derivative instruments, which included cross currency interest rate
swaps. The related balance in accumulated other comprehensive income was reclassified into net income (loss). As of
December 31, 2013, there were no outstanding cross currency interest rate swaps.

Fair value of derivative financial instruments measured on a recurring basis by level were as follows:

(in millions)

Assets

Balance Sheet Location

Level 1

Level 2

Level 3

Total

December 31, 2012

Interest rate swaps

Other current assets

Cross currency interest rate swaps

Other assets

— $

—

106

144

— $

—

106

144

The following table summarizes the activity related to derivatives instruments:

(in millions)

Gain (loss) recognized in other comprehensive income (loss):

Cross currency interest rate swaps

Gain recognized in interest expense to affiliates:

Interest rate swaps

Cross currency interest rate swaps

Long-term Debt

Year Ended December 31,

2013

2012

2011

(17)

139

(79)

The fair value of the Company’s long-term debt to affiliates was determined based on a discounted cash flow approach which
considers the future cash flows discounted at current rates. The approach includes an estimate for the stand-alone credit risk of
T-Mobile. The Company’s long-term debt to affiliates were classified as Level 2 in the fair value hierarchy. The fair value of
the Company’s long-term debt to third parties was determined based on quoted market prices in active markets, and therefore
are classified as Level 1 in the fair value hierarchy. In October 2013, Deutsche Telekom sold senior unsecured notes to third
parties, and therefore the aggregate principal amount of $5.6 billion of the senior unsecured notes were transferred from Level
2 and are now classified as Level 1 in the fair value hierarchy.

The carrying amounts and fair values of the Company’s long-term debt were as follows:

(in millions)

Long-term debt to affiliates

Long-term debt to third parties principal, excluding capital leases

13,600

14,251

—

December 31, 2013

December 31, 2012

Carrying
Amount

Fair Value

Carrying
Amount

Fair Value

5,600

5,866

14,945

14,721

—

Although the Company has determined the estimated fair value amounts using available market information and commonly
accepted valuation methodologies, considerable judgment is required in interpreting market data to develop fair value estimates
for the long-term debt. The fair value estimates are based on information available as of December 31, 2013 and 2012. As
such, the Company’s estimates are not necessarily indicative of the amount that the Company could realize in a current market
exchange.

Note 7 – Debt

Long-term Debt

Prior to the closing of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile by retiring its long-
term debt to affiliates principal balance of $14.5 billion in exchange for new senior unsecured notes in an aggregate principal
amount of $11.2 billion. Further, in October 2013, Deutsche Telekom sold an aggregate principal amount of $5.6 billion of the
senior unsecured notes to third parties. The notes sold by Deutsche Telekom were reclassified from long-term debt to affiliates
to long-term debt. Long-term debt to affiliates consisted of Senior Reset Notes of $5.6 billion as of December 31, 2013. See
Note 11 – Related Party Transactions for information.

In connection with the business combination with MetroPCS, T-Mobile assumed long-term indebtedness of MetroPCS of $6.3
billion, including capital leases in the amount of $333 million. In addition, certain subsidiaries of T-Mobile became guarantors
of the assumed senior unsecured notes previously issued by MetroPCS. Further, the Company issued $500 million of 5.250%
Senior Notes due 2018 in August 2013, and $1.0 billion of 6.125% Senior Notes due 2022 and $1.0 billion of 6.500% Senior

Notes due 2024 in November 2013, for which certain subsidiaries are guarantors. See Note 14 – Guarantor Financial
Information for the condensed consolidating financial information of T-Mobile’s guarantor subsidiaries.

Long-term debt as of December 31, 2013 was as follows:

(in millions)

5.250% Senior Notes due 2018

7.875% Senior Notes due 2018

5.578% Senior Reset Notes due 2019 (reset date in April 2015 )

6.464% Senior Notes due 2019

5.656% Senior Reset Notes due 2020 (reset date in April 2015)

6.542% Senior Notes due 2020

6.625% Senior Notes due 2020

5.747% Senior Reset Notes due 2021 (reset date in October 2015)

6.250% Senior Notes due 2021

6.633% Senior Notes due 2021

5.845% Senior Reset Notes due 2022 (reset date in October 2015)

6.125% Senior Notes due 2022

6.731% Senior Notes due 2022

5.950% Senior Reset Notes due 2023 (reset date in April 2016)

6.625% Senior Notes due 2023

6.836% Senior Notes due 2023

6.500% Senior Notes due 2024

Unamortized premium from purchase price allocation fair value adjustment

Capital leases

Total debt

Less: Current portion of capital leases

Total long-term debt

Classified on the balance sheet as:

Long-term debt to affiliates

Long-term debt

Total long-term debt

December 31,
2013

500

1,000

1,250

1,000

1,250

1,750

1,250

1,000

1,250

600

1,750

600

1,000

410

353

19,963

19,945

5,600

14,345

19,945

Interest on the long-term debt, excluding capital leases, is accrued from the date of issuance at stated interest rates and paid
semi-annually. The interest rates on the Senior Reset Notes are adjusted at the reset dates to rates defined in the applicable
supplemental indenture. The long-term debt may be redeemed in whole or from time to time in part at specified redemption
prices. The long-term debt may also be redeemed using make-whole call provisions or in part with equity proceeds. All
redemptions are subject to the conditions set forth in the applicable supplemental indenture.

Long-term debt as of December 31, 2012 was as follows:

(in millions)

Senior Notes due 2013 (1.772% - 7.099%)

Senior Notes due 2014 (2.696% - 3.532%)

Senior Notes due 2015 (2.843%)

Senior Notes due 2016 (2.739%)

Senior Notes thereafter (3.652% - 8.195%)

Unamortized discount and premium, net

Total debt

Less: Current portion of debt

Long-term debt to affiliates

December 31,
2012

1,273

2,348

1,905

1,000

7,956

463

14,945

1,290

13,655

The long-term debt outstanding as of December 31, 2012 accrued interest from the date of issuance at stated interest rates or
LIBOR plus an applicable margin, with accrued interest paid semi-annually, quarterly or monthly. The applicable interest rate
on certain long-term debt to affiliates was subject to periodic change based on changes in the credit rating of Deutsche
Telekom.

Capital Leases

Capital lease agreements are primarily for DAS, with varying expiration terms through 2028. As of December 31, 2013, capital
lease obligations were $353 million. As of December 31, 2012, capital lease obligations were not significant. Future minimum
payments required under capital leases, including interest, over their remaining terms as of December 31, 2013 are expected to
be $40 million for the year ending 2014, $42 million in 2015, $42 million in 2016, $43 million in 2017, $44 million in 2018,
and $297 million thereafter, for a total of $508 million, including $155 million in interest.

Short-term Debt

The Company maintains vendor financing arrangements with its primary network equipment suppliers. Under the respective
agreements, the Company can obtain extended financing terms. The interest rate on the vendor financing arrangements is
determined based on the difference between LIBOR and a specified margin per the agreements. Obligations under the vendor
financing arrangements are included in short-term debt. As of December 31, 2013, the outstanding balance was $226 million.
As of December 31, 2012, there was no outstanding balance.

Lines and Letters of Credit

T-Mobile has an unsecured revolving credit facility with Deutsche Telekom that allows for up to $500 million in borrowings.
T-Mobile had no borrowings outstanding under this facility as of December 31, 2013. For the purposes of securing T-Mobile’s
obligations to provide handset insurance services, Deutsche Telekom guaranteed a $58 million letter of credit on the
Company’s behalf.

In 2013, T-Mobile amended and restated its credit agreement with U.S. Bank National Association that allowed for the issuance
of letters of credit, reducing the aggregate amount permitted from $100 million to the amount currently outstanding under the
agreement of approximately $46 million as of December 31, 2013. Additionally, in December 2013, the Company entered into
a new letter of credit reimbursement agreement with Deutsche Bank to be utilized for new letters of credit issued on the
Company’s behalf as well as to transition existing letters of credit from the U.S. Bank line in an orderly fashion. As of
December 31, 2013, there were no letters of credit issued under the Deutsche Bank agreement.

Note 8 – Tower Transaction and Related Long-Term Financial Obligation

In November 2012, T-Mobile conveyed to Crown Castle International Corp. (“CCI”) the exclusive right to manage and operate
approximately 7,100 T-Mobile owned wireless communication tower sites in exchange for net proceeds of $2.5 billion (“Tower
Transaction”), of which the Company distributed $2.4 billion as a dividend to Deutsche Telekom. Rights to approximately
6,200 of the tower sites were transferred to CCI via a Master Prepaid Lease with site lease terms ranging from 23 to 37 years
(“MPL Sites”), while the remaining tower sites were sold to CCI (“Sale Sites”). In connection with the Tower Transaction,
assets that are essential to operate the tower sites (including ground lease agreements or deeds for the land on which the towers
are situated, the towers themselves, and existing subleasing agreements with other mobile network operator tenants, who lease
space at the tower sites) and liabilities associated with the operation of the tower sites (including the obligation to pay ground
lease rentals, property taxes and other executory costs) were transferred to bankruptcy-remote SPEs. Upon closing of the
transaction, CCI acquired all of the equity interests in the SPEs containing the Sale Sites and an option to acquire the MPL
Sites at the end of their respective lease terms. T-Mobile and CCI contemporaneously entered into a master lease agreement
under which T-Mobile agreed to lease back space at all of the tower sites involved in the Tower Transaction for an initial term
of ten years, followed by eight optional five-year renewal terms for a total potential term of up to 50 years. Leaseback rentals
will escalate annually based on changes in the Consumer Price Index.

The Company determined that the SPEs containing the MPL Sites (“MPL Site SPEs”) are VIEs as the Company's equity
investment lacks (i) the power to direct the activities that most significantly impact the economic performance of the VIEs
(such as managing existing tenants, finding new tenants, managing the underlying ground leases, and performing repair and
maintenance on the towers); (ii) the obligation to absorb expected losses (such as credit risk associated with current and future
tenants); and (iii) the right to receive the expected future residual returns of the SPEs (because CCI holds a purchase option
whereby it may purchase the leased properties at a fixed price at the end of the Master Prepaid Lease term). For the

aforementioned reasons, the Company determined that it does not have a controlling financial interest and is not the primary
beneficiary of the MPL Site SPEs.

Due to its continuing involvement with the tower sites, T-Mobile determined that it was precluded from applying sale-
leaseback accounting to either the MPL Sites or the Sale Sites and has accounted for the transaction as financing.
Consequently, the Company did not derecognize the tower site assets or accrued ground leases that had a carrying value of
$806 million and $135 million, respectively. Tower site assets continue to be reported in property and equipment and
depreciated. As of December 31, 2013 and 2012, the tower site assets were $1,463 million. As of December 31, 2013 and
2012, the accumulated depreciation was $756 million and $657 million, respectively. Upon closing of the transaction, the
Company recorded a long-term financial obligation in the amount of the net proceeds received from CCI, as well as interest on
the financial obligation at a rate of approximately 8% using the effective interest method. As of December 31, 2013 and 2012,
the long-term financial obligation was $2,496 million and $2,461 million, respectively. The financial obligation is increased by
accrued interest expense and amortized through contractual leaseback payments made by T-Mobile to CCI and through
estimated future net cash flows generated and retained by CCI from operation of the tower sites.

Future minimum payments related to the financial obligation as of December 31, 2013 are summarized below:

(dollars in millions)

Year Ending December 31,

2014

2015

2016

2017

2018

Thereafter

Total

164

1,303

2,123

In addition, the Company is contingently liable for future ground lease payments through the remaining term of the MPL as the
Company remains an obligor on the ground leases related to the sites. These contingent obligations are not included in the
above table as any amount due under ground leases is contractually owed by CCI based on the T-Mobile's subleasing
arrangement with CCI. See Note 12 – Commitments and Contingencies for further information.

Note 9 – Employee Compensation and Benefit Plans

Stock Awards

During the second quarter of 2013, the Company’s Board of Directors and stockholders approved the 2013 Omnibus Incentive
Plan, which authorized the issuance of up to 63,275,000 shares of common stock. Under the incentive plan, the Company may
grant stock options, stock appreciation rights, restricted stock, restricted stock units, and performance awards to employees,
consultants, advisors and non-employee directors. As of December 31, 2013, there were 40 million shares of common stock
available for future grants under the incentive plan.

In June 2013, the Company granted restricted stock units (“RSUs”) to eligible employees and certain non-employee directors.
RSUs entitle the grantee to receive shares of T-Mobile common stock at the end of a vesting period up to 3.5 years.

In June 2013, the Company also granted performance stock units (“PSUs”) to eligible key executives of the Company. PSUs
entitle the holder to receive shares of T-Mobile common stock at the end of a vesting period of approximately 2.5 years if the
performance goal is achieved. The number of shares ultimately received is dependent on T-Mobile's business performance
against the specified performance goal. The PSUs were considered granted for accounting purposes upon specification of the
performance goal in July 2013.

The Company recognized stock-based compensation expense of $100 million and related income tax benefits of $38 million for
the year ended December 31, 2013.

The following activity occurred under the RSU and PSU awards:

Nonvested, December 31, 2012

Granted

Vested

Forfeited

Nonvested, December 31, 2013

Units

Weighted
Average Grant-
Date Fair Value

— $

24,685,791

(88,440)

(1,648,186)

22,949,165

—

22.07

21.28

21.22

22.14

Vesting of the stock awards triggers a tax obligation for the employee, which is required to be remitted to the relevant tax
authorities. The Company has agreed to withhold stock units from the employee to cover the tax obligation. For the year
ended December 31, 2013 the Company withheld 25,621 stock units to cover tax obligations associated with vesting of stock
awards. The net shares issued to the employee are accounted for as outstanding common stock.

As of December 31, 2013, total unrecognized stock-based compensation expense related to nonvested stock awards, net of
estimated forfeitures, was $336 million, before income taxes, which is expected to be recognized over a weighted-average
period of 2.2 years.

Stock Options

Prior to the business combination, MetroPCS had established the MetroPCS Communications, Inc. 2010 Equity Incentive
Compensation Plan, the Amended and Restated MetroPCS Communications, Inc. 2004 Equity Incentive Compensation Plan
and the Second Amended and Restated 1995 Stock Option Plan (“Predecessor Plans”). The MetroPCS stock options were
adjusted in connection with the business combination. See Note 2 – Business Combinations for further information. Following
stockholder approval of the Company’s 2013 Omnibus Incentive Plan, no new awards may be granted under the Predecessor
Plans.

The following activity occurred under the Predecessor Plans for the period from May 1, 2013 through December 31, 2013:

Outstanding, May 1, 2013

Exercised

Expired

Outstanding and exercisable, December 31, 2013

Weighted-
Average Exercise
Price

16,738,643

(9,278,599)

(1,127,024)

6,333,020

19.66

14.43

34.73

24.64

Weighted-
Average
Remaining
Contractual
Term (Years)

4.6

Stock options exercised under the Predecessor Plans generated proceeds of approximately $137 million for the year ended
December 31, 2013. The Company did not realize excess tax benefits for the year ended December 31, 2013 as such benefits
would not have reduced income taxes payable.

Employee Retirement Savings Plan

The Company sponsors a retirement savings plan for the majority of its employees under section 401(k) of the Internal
Revenue Code and similar plans. The plans allow employees to contribute a portion of their pretax income in accordance with
specified guidelines. The plans match a percentage of employee contributions up to certain limits. Employer matching
contributions were $58 million, $59 million and $51 million for the years ended December 31, 2013, 2012 and 2011,
respectively.

Executive Compensation Plan

The Company maintains a performance-based Long Term Incentive Plan (“LTIP”) that aligns to the Company's long-term
business strategy. LTIP awards were earned over a performance period of three years with 50% of the target value earned on a
ratable schedule and 50% of the target value earned at the end of the three year performance period based on achievement of
applicable performance metrics. As of December 31, 2013, there were LTIP awards outstanding for the 2013, 2012 and 2011

plans. Following the business combination with MetroPCS, awards were fixed at 100% attainment and will be paid out over
the remaining three year period. In addition, no new awards are expected be granted under the LTIP.

Compensation expense reported within operating expenses related to the Company's LTIP was $63 million, $82 million and
$52 million for the years ended December 31, 2013, 2012 and 2011, respectively. Payments of $61 million, $52 million, and
$33 million were made to participants related to
LTIP during the years ended December 31, 2013, 2012 and 2011,
respectively.

Note 10 – Income Taxes

The sources of income (loss) before income taxes were as follows:

(in millions)

U.S.

Foreign

Income (loss) before income taxes

The total income tax expense (benefit) is summarized as follows:

(in millions)

Current tax expense (benefit)

Federal

State

Foreign

Total current tax expense

Deferred tax expense (benefit)

Federal

State

Foreign

Total deferred tax expense (benefit)

Total income tax expense (benefit)

Year Ended December 31,

2013

2012

2011

(5) $

(6,739) $

(247)

(6,986) $

(4,961)

(4,934)

Year Ended December 31,

2013

2012

2011

(10) $

(22)

321

(14)

308

350

(15)

(396)

162

(233)

(216)

The reconciliation between the United States federal statutory income tax rate and T-Mobile's effective income tax rate is as
follows:

Federal statutory income tax rate

State taxes, net of federal benefit

Foreign taxes, net of federal benefit

Change in valuation allowance

Impairment charges

Other state tax items

Permanent differences

Other, net

Effective income tax rate

Year Ended December 31,

2013

2012

2011

35.0%

35.0 %

35.0%

2.5

28.2

(6.1)

—

(34.3)

11.3

(5.2)

2.5

0.7

(0.1)

(43.5)

0.6

(0.1)

2.5

(0.1)

(4.4)

(28.3)

(0.4)

(0.2)

0.3

31.4%

(5.0)%

4.4%

Significant components of deferred income tax assets and liabilities, tax effected, are as follows:

(in millions)

Deferred tax assets

Loss carryforwards

Straight line leases

Reserves and accruals

Federal and state tax credits

Debt fair market value adjustment

Other

Deferred tax assets, gross

Valuation allowance

Deferred tax assets, net

Deferred tax liabilities

Spectrum licenses

Property and equipment

Other intangible assets

Other

Total deferred tax liabilities

Net deferred tax liabilities

Classified on the balance sheet as:

Current deferred tax assets, net

Non-current deferred tax liabilities, net

Net deferred tax liabilities

December 31,
2013

December 31,
2012

2,809

2,210

885

362

224

159

274

4,713

(537)

4,176

5,007

2,550

418

7,982

3,806

839

4,645

3,806

755

256

206

—

160

3,587

(497)

3,090

3,789

2,249

(27)

6,053

2,963

655

3,618

2,963

As of December 31, 2013, the Company has net operating loss (“NOL”) carryforwards (tax effected) for federal income tax
purposes of $2.3 billion and for state income tax purposes of $0.5 billion, expiring through 2033. The Company’s NOL
carryforwards for financial reporting purposes were approximately $5 million, tax effected, less than its NOL carryforwards for
federal tax purposes as of December 31, 2013, due to the Company’s inability to realize excess tax benefits until such benefits
reduce income taxes payable. The Company’s ability to utilize NOL carryforwards in any given year may be limited by certain
events, including a significant change in ownership interest. The Company also has available Alternative Minimum Tax credit
carryforwards of $172 million as of December 31, 2013, which may be used to reduce regular federal income taxes and have no
expiration.

The Company’s valuation allowance as of December 31, 2013 and 2012 was $537 million and $497 million, respectively. The
change in the valuation allowance of $40 million is primarily due to an increase in the valuation allowance related to certain tax
attributes acquired through the business combination with MetroPCS. Furthermore, $37 million of valuation allowance as of
December 31, 2013 and 2012 relates to stock option deductions included in the NOL carryforwards which will be reversed as
an increase to equity when the related deferred tax assets are ultimately realized.

In September 2013, the U.S. Department of the Treasury and the Internal Revenue Service (“IRS”) issued final regulations
addressing the acquisition, production and improvement of tangible property, and also proposed regulations addressing the
disposition of property. These regulations replace previously issued temporary regulations and are effective for tax years
beginning January 1, 2014, with optional adoption permitted in 2013. The Company has analyzed the expected impact of the
regulations on the Company and concluded that the expected impact is minimal.

The Company files income tax returns in the U.S. federal and various state and foreign jurisdictions in which the Company
operates. The Company is currently under examination by the IRS and by various states. Management does not believe the
resolution of any of the audits will result in a material change to the Company’s financial condition, results of operations or
cash flows. The Company is generally closed to U.S federal, state, and foreign examination for years prior to 1998.

It is reasonably possible that the Company’s gross unrecognized tax benefits could significantly change within the next 12
months due to the closing of examinations. Due to the unpredictability of the examinations, it is not possible to estimate the
amount that the unrecognized tax benefits may change.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

(in millions)

Unrecognized tax benefits at beginning of year

Gross decreases to tax positions in prior periods

Gross increases to current period tax positions

Gross increase due to current year business combination

Unrecognized tax benefits at end of year

Year Ended December 31,

2013

2012

2011

(18)

178

(10)

—

Included in the 2013 increase to unrecognized tax benefits is $83 million related to tax positions acquired through the business
combination with MetroPCS. As of December 31, 2013, the Company has $12 million in unrecognized tax benefits that, if
recognized, would affect the Company's annual effective tax rate. The Company reports interest and penalties within operating
income. The accrued interest and penalties associated with unrecognized tax benefits are insignificant.

Note 11 – Related Party Transactions

Prior to the closing of the business combination, Deutsche Telekom recapitalized T-Mobile by retiring T-Mobile’s long-term
debt to affiliates principal balance and all related derivative instruments in exchange for new unsecured senior notes and
additional paid-in capital provided by Deutsche Telekom. In connection with the debt recapitalization, other outstanding
balances with Deutsche Telekom were settled. See Note 2 – Business Combinations for further information regarding the
business combination and the effects on additional paid-in capital as a result of the debt recapitalization and the settlement of
the other outstanding balances with Deutsche Telekom. Further, in October 2013, Deutsche Telekom sold a portion of the
senior unsecured notes to third parties. In addition, T-Mobile has an unsecured revolving credit facility with Deutsche Telekom
and letters of credit guaranteed by Deutsche Telekom. See Note 7 – Debt for further information regarding long-term debt and
letters of credit.

Additionally, T-Mobile has related party transactions associated with Deutsche Telekom or its affiliates in the ordinary course
of business, which are included in various line items in the consolidated financial statements.

The following table summarizes the significant balances with Deutsche Telekom or its affiliates in the consolidated balance
sheets:

(in millions)

Assets

Accounts receivable from affiliates

Interest rate swaps

Cross currency interest rate swaps

Liabilities

Current payables and short-term debt to affiliates

Long-term debt to affiliates

December 31,
2013

December 31,
2012

—

682

106

144

199

5,600

1,619

13,655

The following table summarizes the impact of significant transactions with Deutsche Telekom or its affiliates in the
consolidated statements of comprehensive income (loss):

(in millions)

Fees incurred for use of the T-Mobile brand

Expenses for telecommunications and IT services

Interest expense to affiliates

Net gain (loss) recorded in other comprehensive income (loss), net of tax

Year Ended December 31,

2013

2012

2011

102

678

(39)

105

661

108

670

Note 12 – Commitments and Contingencies

Operating Leases

T-Mobile has operating leases for dedicated transportation lines with varying expiration terms through 2021. In addition, T-
Mobile has operating leases for cell sites, switch sites, retail stores and office facilities with contractual terms expiring through
2028. The majority of cell site leases have an initial term of five years to ten years with several renewal options. The
Company considers renewal options on leases as being reasonably assured of exercise, thus included in future minimum lease
payments for a total term of approximately 15 years.

Future minimum payments for non-cancelable operating leases, including reasonably assured renewal options, are summarized
below:

(in millions)

Year Ending December 31,

2014

2015

2016

2017

2018

Thereafter

Total

Operating Leases

Dedicated
Transportation
Lines

Other Operating
Leases

236

149

1,963

1,926

1,864

1,767

1,589

5,230

503

14,339

In addition, as of December 31, 2013, the Company was contingently liable for approximately $703 million in future ground
lease payments as the Company remains an obligor on the ground leases related to the Tower Transaction sites. These
contingent obligations are not included in the above table as any amounts due under ground leases are contractually owed by
CCI based on T-Mobile's subleasing arrangement with CCI. See Note 8 – Tower Transaction and Related Long-Term Financial
Obligation for further information.

Total rent expense under operating leases, including dedicated transportation line, was $2.7 billion, $2.3 billion and $2.4 billion
for the year ended December 31, 2013, 2012 and 2011, respectively.

Other Commitments

T-Mobile has commitments for non-dedicated transportation lines with varying expiration terms through 2023. In addition, T-
Mobile has commitments to purchase handsets, network services, equipment, software, marketing sponsorship agreements and
other items in the ordinary course of business, with various terms through 2018. These amounts are not reflective of the
Company’s entire anticipated purchases under the related agreements, but are determined based on the non-cancelable
quantities or termination amounts to which the Company was contractually obligated.

In January 2014, T-Mobile entered into agreements with Verizon for the acquisition of 700 MHz A-Block spectrum licenses for
approximately $2.4 billion in cash and the transfer of certain AWS spectrum and Personal Communications Service spectrum
(“PCS spectrum”). The transaction is not included in Other Purchase Commitments below. See Note 15 – Subsequent Events
for further information.

Future minimum payments for non-cancelable purchase commitments are summarized below:

(in millions)

Year Ending December 31,

2014

2015

2016

2017

2018

Thereafter

Total

Contingencies and Litigation

Purchase Commitments

Non-Dedicated
Transportation
Lines

Other Purchase
Commitments

606

602

548

429

201

311

1,168

222

188

2,070

—

2,697

3,656

T-Mobile is defending one putative stockholder derivative and class action lawsuit challenging the business combination with
MetroPCS and alleging that the various defendants breached fiduciary duties, or aided and abetted in the alleged breach of
fiduciary duties, to the MetroPCS stockholders by entering into the transaction – Adam Golovoy et al. v. Deutsche Telekom et
al., Cause No. CC-12-06144-A (Dallas, Texas County Court at Law). (Six other cases have either been dismissed or have
settled.) The complaint alleges claims for relief including, among other things, rescission to the extent the terms of the business
combination have already been implemented, damages for the breaches of fiduciary duty, and the payment of plaintiffs’
attorneys’ fees and costs. T-Mobile intends to defend this case vigorously, and we do not expect that it will have a material
adverse effect on T-Mobile’s financial position, results of operations or cash flows.

T-Mobile and its subsidiaries are involved in various other lawsuits, regulatory proceedings, and other similar matters,
including class actions and intellectual property claims, that arise in the ordinary course of business. Specifically, T-Mobile
faces actual and potential litigation and other legal proceedings that challenge customer billing and other business practices,
and seek awards of damages, restitution, and/or penalties. For example, state Attorneys General and other government agencies
have engaged in investigations and inquiries regarding third-party billing (or “cramming”), and are seeking restitution and
changes in business practices by carriers and content providers. Legal proceedings are inherently unpredictable, and often
present complex legal and factual issues and can include claims for large amounts of damages or other remedies. While the
ultimate outcome of these legal proceedings is uncertain, T-Mobile does not currently expect that these proceedings,
individually or in the aggregate, will have a material adverse effect on T-Mobile’s financial position, results of operations or
cash flows. This assessment is based on T-Mobile’s current understanding of relevant facts and circumstances. As such, T-
Mobile’s view of these matters is subject to inherent uncertainties and may change in the future.

Note 13 – Additional Financial Information

Supplemental Balance Sheet Information

Deferred Interest and Allowances

The following table summarizes the changes in deferred interest and allowances related to its current accounts receivable
balances:

(in millions)

Deferred interest at beginning of year

Additions

Interest income

Cancellations and other

Transfer from long-term

Deferred interest at end of year

Allowances at beginning of year

Bad debt expense

Write-offs, net of recoveries

Allowances at end of year

2013

2012

2011

283

(185)

(42)

212

197

463

(491)

169

125

(72)

(17)

313

702

(818)

197

(18)

(3)

298

713

(698)

313

Deferred interest and allowances at end of year

381

289

347

The following table summarizes the changes in deferred interest related to its long-term accounts receivable balances included
in other assets:

(in millions)

Deferred interest at beginning of year

Additions

Cancellations and other

Transfer to current

Deferred interest at end of year

2013

2012

2011

121

(11)

(64)

(2)

(22)

(1)

See Note 3 – Equipment Installment Plan Receivables for further information on EIP receivables and related deferred interest
and allowance for credit losses.

Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities are summarized as follows:

(in millions)

Accounts payable

Property and other taxes, including payroll

Payroll and related benefits

Interest

Dealer commissions

Toll and interconnect

Advertising

Other

December 31,
2013

December 31,
2012

3,026

2,161

534

394

272

118

107

464

351

—

138

130

182

Total accounts payable and accrued liabilities

4,567

3,475

Accumulated Other Comprehensive Income

Prior to the closing of the business combination with MetroPCS, Deutsche Telekom recapitalized T-Mobile by retiring T-
Mobile’s long-term debt to affiliates principal balance and all related derivative instruments, which included the interest rate
swaps and cross currency interest rate swaps.

The following table summarizes the changes in accumulated other comprehensive income (“AOCI”), net of tax, by component:

(in millions)

Balance, December 31, 2012

Unrealized gains (losses) arising during the period

Reclassification adjustments recognized in net income

Net gain (loss) in other comprehensive income (loss)

Balance, December 31, 2013

Cross Currency
Interest Rate
Swaps

Foreign
Currency
Translation

Available-for-
Sale Securities

Total

(23) $

(10)

(104)

(62)

— $

—

The following table presents the effects on net income of amounts reclassified from AOCI (in millions):

AOCI Component

Location

Cross Currency Interest Rate Swaps

Interest expense to affiliates

Income tax effect

Net of tax

Other income, net

Income tax effect

Net of tax

Foreign Currency Translation

Total reclassifications, net of tax

Amount Reclassified from AOCI to Income

2013

2012

2011

(53) $

(33) $

166

(62)

104

(10) $

(6) $

(2) $

(1) $

(7) $

(71)

(38)

(2)

(1)

(2)

(1)

(2)

Supplemental Statements of Comprehensive Loss Information

Earnings (Loss) Per Share

The computation of basic and diluted earnings (loss) per share was as follows:

(in millions, except shares and per share amounts)

Basic and Diluted Earnings (Loss) Per Share:

Net income (loss)

Weighted average shares outstanding - basic

Dilutive effect of outstanding stock options and awards

Weighted average shares outstanding - diluted

Earnings (loss) per share - basic

Earnings (loss) per share - diluted

Year Ended December 31,

2013

2012

2011

(7,336) $

(4,718)

672,955,980

535,286,077

3,929,235

—

676,885,215

535,286,077

0.05

(13.70) $

(13.70)

(8.81)

Potentially dilutive securities were not included in the computation of diluted earnings (loss) per share for certain periods if to
do so would have been antidilutive. For the year ended December 31, 2013, potentially dilutive outstanding stock options of
2,161,350 and unvested stock awards of 2,748,391 as of December 31, 2013 were excluded. Unvested PSUs were based on the
number of shares ultimately expected to vest based on T-Mobile’s business performance against the specified performance goal.
There were no potentially dilutive securities for the year ended December 31, 2012 and 2011, respectively.

Restructuring Costs

In 2013, T-Mobile initiated a cost restructuring program in order to reduce its overall cost structure to align with its Un-carrier
strategy and position T-Mobile for growth.

In 2012, T-Mobile consolidated its call center operations and restructured operations in other parts of the business to strengthen
T-Mobile’s competiveness. Major costs incurred primarily related to lease buyout costs, severance payments and other
personnel-related restructuring costs. Lease buyout costs included in accrued liabilities and other long-term liabilities related to
the 2012 restructuring program are being relieved over the remaining lease terms through 2022.

Activities associated with T-Mobile’s restructuring plans and respective accrued liabilities were as follows:

(in millions)

Balance, December 31, 2011

Personnel related restructuring costs

Nonpersonnel related restructuring costs

Cash payments

Balance, December 31, 2012

Restructuring costs

Cash payments

Balance, December 31, 2013

2013
Restructuring
Program

2012
Restructuring
Program

Total
Restructuring

— $

—

(54)

— $

(53)

—

(10)

Supplemental Statements of Cash Flows Information

The following table summarizes T-Mobile’s supplemental cash flows information:

(in millions)

Interest and income tax payments:

Interest payments

Income tax payments (refunds), net

Noncash investing and financing activities:

Increase (decrease) in accounts payable for purchases of property and equipment

Short-term debt outstanding for financing of property and equipment purchases

Relinquishment of accounts receivable from affiliates in satisfaction of long-term debt to
affiliates

Noncash portion of spectrum license transactions

Retirement of long-term debt to affiliates

Elimination of net unamortized discounts and premiums on long-term debt to affiliates

Issuance of new long-term debt to affiliates

Settlement of accounts receivable from affiliates and other outstanding balances

Income tax benefit from debt recapitalization

Net assets acquired in MetroPCS business combination, excluding cash acquired

Supplemental Statements of Stockholders’ Equity Information

Equity Offering

Year Ended December 31,

2013

2012

2011

1,156

845

226

—

14,450

434

11,200

363

178

827

465

—

644

1,633

—

In November 2013, T-Mobile completed a public offering of 72,765,000 shares of common stock, including 6,615,000 common
shares pursuant to the underwriters’ option to purchase additional shares, at a price of $25 per share.

—

(53)

(64)

835

(294)

—

500

—

Note 14 – Guarantor Financial Information

On April 28, 2013, T-Mobile USA (“Issuer”) issued new long-term debt to affiliates of $11.2 billion to Deutsche Telekom. As
described in more detail in Note 2 – Business Combinations, on April 30, 2013, the transactions contemplated by the BCA,
were consummated, as a result of which MetroPCS Communications, Inc. (the legal acquirer) acquired all of the outstanding
shares of the Issuer. Also on April 30, 2013, the name of MetroPCS Communications, Inc. was changed to T-Mobile US, Inc.
In addition, unsecured senior notes of $5.9 billion, including the effects of purchase accounting, were assumed by the Issuer in
connection with the closing of the business combination. Further, in October 2013, Deutsche Telekom sold an aggregate
principal amount of $5.6 billion of the senior unsecured notes to third parties. The notes were reclassified from long-term debt
to affiliates to long-term debt. In 2013, the Issuer issued unsecured senior notes of $2.5 billion. Pursuant to the indenture and
the applicable supplemental indentures, the long-term debt, excluding capital leases, are fully and unconditionally guaranteed,
jointly and severally, on a senior unsecured basis by T-Mobile (“Parent”) and certain of the Issuer’s wholly owned subsidiaries
(“Guarantor Subsidiaries”). See Note 7 – Debt for further information regarding long-term debt.

The guarantees of the Guarantor Subsidiaries are subject to release in limited circumstances only upon the occurrence of certain
customary conditions. The indenture governing the long-term debt contain covenants that, among other things, limit the ability
of the Issuer and the Guarantor Subsidiaries to: incur more debt; pay dividends and make distributions; make certain
investments; repurchase stock; create liens or other encumbrances; enter into transactions with affiliates; enter into transactions
that restrict dividends or distributions from subsidiaries; and merge, consolidate, or sell, or otherwise dispose of, substantially
all of their assets. Certain provisions of each of the indentures and the supplemental indentures relating to the long-term debt
restrict the ability of the Issuer to loan funds or make payments to Parent. However, the Issuer and Guarantor Subsidiaries are
allowed to make certain permitted payments to the Parent under the terms of the indentures and the supplemental indentures.
As of December 31, 2013, the Issuer and Guarantor Subsidiaries had restricted net assets of $4.7 billion.

In 2013, T-Mobile entered into an agreement with Cook Inlet to acquire all of Cook Inlet's interest in CIVS VII, a fully
consolidated Non-Guarantor Subsidiary, which resulted in CIVS VII becoming an indirect wholly-owned subsidiary of T-
Mobile USA. CIVS VII was subsequently combined with, and net assets transferred to, T-Mobile License LLC, a wholly-
owned Restricted Subsidiary of T-Mobile USA. As a result the net assets of CIVS VII were included in the Guarantor
Subsidiaries condensed consolidating balance sheet information. The guarantees of the long-term debt were unchanged by the
transaction. See Note 1 – Summary of Significant Accounting Policies for more information regarding the transaction.

Presented below is the condensed consolidating financial information as of December 31, 2013 and 2012 and for the years
ended December 31, 2013, 2012 and 2011, respectively. As the business combination was treated as a “reverse acquisition”
and the Issuer was treated as the accounting acquirer, the Issuer’s historical financial statements are the historical financial
statements of Parent for comparative purposes. As a result the Parent column only reflects activity in the condensed
consolidating financial statements presented below for periods subsequent to the consummation of the business combination on
April 30, 2013. The equity method of accounting is used to account for ownership interests in subsidiaries, where applicable.

Condensed Consolidating Balance Sheet Information
December 31, 2013

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

(in millions)

Assets

Current assets

Cash and cash equivalents

2,960

2,698

176

— $

Accounts receivable, net of allowances

Accounts receivable from affiliates

Inventory

Current portion of deferred tax assets, net

Other current assets

Total current assets

Property and equipment, net of accumulated
depreciation

Goodwill

Spectrum licenses

Other intangible assets, net of accumulated
amortization

Investments in subsidiaries, net

Intercompany receivables

Other assets

Total assets

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable and accrued liabilities

Current payables and short-term debt to
affiliates

Short-term debt

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt to affiliates

Long-term debt

Long-term financial obligation

Deferred tax liabilities

Deferred rents

Negative carrying value of subsidiaries, net

Intercompany payables

Other long-term liabilities

Total long-term liabilities

Total stockholders' equity

—

2,960

2,698

—

11,484

29,123

—

3,541

586

824

1,250

6,299

14,754

1,683

18,122

1,204

—

418

1,292

—

271

595

—

(40,607)

(418)

(44)

14,446

31,845

43,772

959

(41,069) $

— $

273

4,218

— $

4,567

—

201

—

201

14,245

226

—

555

5,600

14,010

—

183

143

445

313

5,137

—

335

365

4,689

2,113

779

—

688

—

116

—

2,131

—

(44)

—

(779)

(418)

—

19,806

11,484

8,969

29,666

2,165

(1,322)

(1,241)

(39,828)

5,891

3,619

586

839

1,252

12,228

15,349

1,683

18,122

1,204

—

1,367

49,953

199

244

445

353

5,808

5,600

14,345

2,496

4,645

2,113

—

701

29,900

14,245

49,953

Total liabilities and stockholders' equity $

14,446

31,845

43,772

959

(41,069) $

Condensed Consolidating Balance Sheet Information
December 31, 2012

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

(in millions)

Assets

Current assets

Cash and cash equivalents

— $

287

107

— $

Accounts receivable, net of allowances

Accounts receivable from affiliates

Inventory

Current portion of deferred tax assets, net

Other current assets

Total current assets

Property and equipment, net of accumulated
depreciation

Spectrum licenses

Other intangible assets, net of accumulated
amortization

Investments in subsidiaries, net

Intercompany receivables

Other assets

Total assets

Liabilities and Stockholder’s Equity

Current liabilities

Accounts payable and accrued liabilities

Current payables and short-term debt to
affiliates

Deferred revenue

Other current liabilities

Total current liabilities

Long-term debt to affiliates

Long-term financial obligation

Deferred tax liabilities

Deferred rents

Negative carrying value of subsidiaries, net

Intercompany payables

Other long-term liabilities

Total long-term liabilities

Total stockholder’s equity

— $

25,095

35,963

1,218

(28,654) $

33,622

— $

3,382

— $

3,475

—

106

—

24,823

—

166

2,607

682

457

640

565

5,238

12,129

14,330

—

3,760

427

—

197

678

220

—

(24,823)

(3,831)

—

1,494

—

1,494

13,655

—

3,831

—

17,486

6,115

125

290

168

3,965

—

360

3,603

1,884

489

—

297

6,633

25,365

—

133

—

2,101

—

2,116

(1,031)

—

(489)

(3,831)

—

(4,320)

(24,334)

394

2,678

682

457

655

675

5,541

12,807

14,550

—

645

1,619

290

208

5,592

13,655

2,461

3,618

1,884

—

297

21,915

6,115

33,622

Total liabilities and stockholder’s equity

— $

25,095

35,963

1,218

(28,654) $

Condensed Consolidating Statement of Comprehensive Income (Loss) Information
Year Ended December 31, 2013

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

— $

18,396

823

(151) $

19,068

(in millions)

Revenues

Service revenues

Equipment sales

Other revenues

Total revenues

Operating expenses

Cost of services

Cost of equipment sales

Selling, general and administrative

Depreciation and amortization

MetroPCS transaction and integration costs

Restructuring costs

Other, net

Total operating expenses

Operating income

Other income (expense)

Interest expense to affiliates

Interest expense

Interest income

Other income (expense), net

Total other income (expense), net

Income (loss) before income taxes

Income tax expense (benefit)

Earnings (loss) of subsidiaries

Net income (loss)

Other comprehensive income (loss), net of tax

—

(104)

—

(678)

(317)

—

(901)

—

936

(38)

5,728

251

24,375

5,302

7,180

7,283

3,545

108

(2)

23,470

905

—

(55)

189

(6)

128

1,033

(54)

934

—

142

965

552

190

—

874

—

(173)

—

(172)

(81)

(29)

—

(52)

—

(695)

(74)

(920)

(73)

(756)

(91)

—

(920)

—

(778)

(24)

5,033

319

24,420

5,279

6,976

7,382

3,627

108

(2)

23,424

996

(678)

(545)

189

(945)

—

(38)

(3)

Total comprehensive income (loss)

(104) $

(3) $

958

(52) $

(802) $

Condensed Consolidating Statement of Comprehensive Income (Loss) Information
Year Ended December 31, 2012

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

— $

16,610

712

(109) $

17,213

(in millions)

Revenues

Service revenues

Equipment sales

Other revenues

Total revenues

Operating expenses

Cost of services

Cost of equipment sales

Selling, general and administrative

Depreciation and amortization

MetroPCS transaction and integration costs

Impairment charges

Restructuring costs

Other, net

Total operating expenses

Operating income (loss)

Other income (expense)

Interest expense to affiliates

Interest income

Other income (expense), net

Total other income (expense), net

Income (loss) before income taxes

Income tax expense

Loss of subsidiaries

Net income (loss)

Other comprehensive income (loss), net of tax

—

(661)

—

(623)

—

(6,713)

(7,336)

2,783

319

19,712

4,730

3,594

6,689

3,180

8,134

(191)

26,228

(6,516)

—

(36)

(6,475)

310

—

(6,785)

(41)

—

795

449

151

—

676

119

—

(7)

112

—

(541)

(138)

(788)

(138)

(606)

(44)

—

(788)

—

6,713

2,242

264

19,719

4,661

3,437

6,796

3,187

8,134

(191)

26,116

(6,397)

(661)

(5)

(589)

(6,986)

350

—

(7,336)

6,754

(7,267)

Total comprehensive income (loss)

— $

(7,267) $

(6,826) $

Condensed Consolidating Statement of Comprehensive Income (Loss) Information
Year Ended December 31, 2011

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

— $

17,958

635

(112) $

18,481

(in millions)

Revenues

Service revenues

Equipment sales

Other revenues

Total revenues

Operating expenses

Cost of services

Cost of equipment sales

Selling, general and administrative

Depreciation and amortization

Impairment Charges

Other, net

Total operating expenses

Operating income (loss)

Other income (expense)

Interest expense to affiliates

Interest income

Other income (expense), net

Total other income (expense), net

Income (loss) before income taxes

Income tax expense (benefit)

Loss of subsidiaries

Net income (loss)

Other comprehensive income (loss), net of tax

—

(662)

—

(16)

(678)

—

(4,040)

(4,718)

2,401

312

20,671

5,028

3,824

6,623

2,982

6,388

185

25,030

(4,359)

(8)

(4,336)

(249)

(19)

(4,106)

—

711

389

150

—

(16)

631

—

(500)

(152)

(764)

(152)

(567)

(45)

—

(764)

—

4,059

(2)

1,901

236

20,618

4,952

3,646

6,728

2,982

6,420

169

24,897

(4,279)

(670)

(10)

(655)

(4,934)

(216)

—

(4,718)

4,057

(4,707)

Total comprehensive income (loss)

— $

(4,707) $

(4,104) $

(in millions)

Operating activities

Net cash provided by (used in) operating
activities

Investing activities

Purchases of property and equipment

Purchases of intangible assets

Short term affiliate loan receivable, net

Proceeds from disposals of property and
equipment and intangible assets

Cash and cash equivalents acquired in MetroPCS
business combination

Change in restricted cash equivalents

Investments in unconsolidated affiliates, net

Net cash provided by (used in) investing
activities

Financing activities

Proceeds from issuance of long-term debt

Proceeds from issuance of common stock in
connection with public offering

Repayments of short-term debt for purchases of
property and equipment

Repayments related to a variable interest entity

Distribution to affiliate as a result of debt
recapitalization

Proceeds from exercise of stock options

Other, net

Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2013

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

299

(1,203) $

4,380

— $

3,545

—

737

—

737

—

1,787

—

137

—

1,407

—

(4,025)

(381)

300

—

(100)

(33)

1,407

(4,236)

2,494

—

(244)

(80)

(41)

—

(9)

(374)

(230)

—

— $

(4,025)

(381)

300

2,144

(100)

(33)

(2,092)

2,494

1,787

(244)

(80)

(41)

137

(9)

4,044

5,497

394

5,891

Net cash provided by (used in) financing
activities

1,924

2,494

Change in cash and cash equivalents

2,960

2,698

Cash and cash equivalents

Beginning of period

End of period

—

2,960

2,698

287

107

176

Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2012

(in millions)

Operating activities

Net cash provided by (used in) operating
activities

Investing activities

Purchases of property and equipment

Purchases of intangible assets

Short term affiliate loan receivable, net

Proceeds from disposals of property and
equipment and intangible assets

Payments to acquire financial assets, net

Investments in unconsolidated affiliates, net

Net cash used in investing activities

Financing activities

Proceeds from financial obligation

Repayments of financial obligation

Equity distribution to stockholder

Net cash provided by (used in) financing
activities

Change in cash and cash equivalents

Cash and cash equivalents

Beginning of period

End of period

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

— $

(66) $

3,872

— $

3,862

—

2,469

—

(2,403)

—

— $

(2,901)

(387)

(651)

(5)

(22)

(3,915)

—

(9)

—

(9)

(52)

339

287

—

107

— $

(2,901)

(387)

(651)

(5)

(22)

(3,915)

2,469

(9)

(2,403)

390

394

Condensed Consolidating Statement of Cash Flows Information
Year Ended December 31, 2011

Parent

Issuer

Guarantor
Subsidiaries

Non-
Guarantor
Subsidiaries

Consolidating
and
Eliminating
Adjustments

Consolidated

— $

4,960

(71) $

4,980

—

(2,729)

(23)

(2,005)

(17)

(4,699)

—

261

— $

339

—

(71)

—

— $

(2,729)

(23)

(2,005)

(17)

(4,699)

—

281

109

390

(in millions)

Operating activities

Net cash provided by (used in) operating
activities

Investing activities

Purchases of property and equipment

Purchases of intangible assets

Short term affiliate loan receivable, net

Proceeds from disposals of property and
equipment and intangible assets

Payments to acquire financial assets, net

Investments in unconsolidated affiliates, net

Net cash used in investing activities

Financing activities

Intercompany dividend paid

Net cash provided by (used in) financing
activities

Change in cash and cash equivalents

Cash and cash equivalents

Beginning of period

End of period

Note 15 – Subsequent Events

Spectrum Acquisition

In January 2014, T-Mobile entered into agreements with Verizon for the acquisition of 700 MHz A-Block spectrum licenses for
approximately $2.4 billion in cash and the transfer of certain AWS spectrum and PCS spectrum. The acquired spectrum covers
more than 150 million people in 23 major metropolitan markets, comprising approximately 50 percent of the U.S. population or
70 percent of T-Mobile’s existing customer base. A non-cash gain is expected to be recognized upon closing of the transaction,
which is expected to occur in mid-2014 and is subject to regulatory approval and other customary closing conditions.

Supplementary Data

Quarterly Financial Information (Unaudited)

(in millions, except share and per share
amounts)

First Quarter

Second Quarter

Third Quarter

Fourth Quarter

Full Year

2013

Total revenues

Operating income

Net income (loss)

Earnings (loss) per share

Basic

Diluted

Weighted average shares outstanding

Basic

Diluted

Net income (loss) includes:

MetroPCS transaction and integration costs

Restructuring costs

2012

Total revenues

Operating income (loss)

Net income (loss)

Earnings (loss) per share

Basic

Diluted

Weighted average shares outstanding

Basic

Diluted

Net income (loss) includes:

MetroPCS transaction and integration costs

Impairment charges

Restructuring costs

4,677

6,228

6,688

6,827

24,420

379

107

0.20

181

(16)

(0.02)

297

(36)

(0.05)

139

(20)

(0.03)

996

0.05

535,286,077

664,603,682

726,877,458

761,964,720

672,955,980

676,885,215

5,034

497

200

0.37

4,883

452

207

0.39

—

4,893

(7,593) $

(7,735)

(14.45)

—

4,909

247

(8)

(0.01)

108

19,719

(6,397)

(7,336)

(13.70)

535,286,077

—

8,134

—

(5)

8,134

Earnings (loss) per share is computed independently for each quarter and the sum of the quarters may not equal earnings (loss)
per share for the full year.

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our
periodic reports filed or submitted under the Securities Exchange Act of 1934, as amended (“the Exchange Act”), is recorded,
processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and
forms. Our disclosure controls are also designed to ensure that information required to be disclosed in the reports we file or
submit under the Exchange Act is accumulated and communicated to our management, including our Principal Executive
Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief
Financial Officer, we carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and
procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our Chief

Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective, as of the
end of the period covered by this Report (December 31, 2013).

The certifications required by Section 302 of the Sarbanes-Oxley Act of 2002 (“the SOX Act”) are filed as exhibits 31.1 and
31.2, respectively, to this Form 10-K.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the
Exchange Act) during our most recently completed fiscal quarter that materially affected or are reasonably likely to materially
affect internal control over financial reporting.

Management's Annual Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal
control over financial reporting is a process to provide reasonable assurance regarding the reliability of our financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.
Internal control over financial reporting includes maintaining records that in reasonable detail accurately and fairly reflect our
transactions; providing reasonable assurance that transactions are recorded as necessary for preparation of our financial
statements in accordance with generally accepted accounting principles; providing reasonable assurance that receipts and
expenditures are made in accordance with management authorization; and providing reasonable assurance that unauthorized
acquisition, use or disposition of company assets that could have a material effect on our financial statements would be
prevented or detected on a timely basis. Because of its inherent limitations, internal control over financial reporting may not
prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk
that controls may become inadequate because of changes in conditions, or that the degree of compliance with policies and
procedures may deteriorate.

Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the
framework and criteria established in Internal Control — Integrated Framework (the "1992 Framework"), issued by the
Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, management concluded that
our internal control over financial reporting was effective as of December 31, 2013.

The effectiveness of our internal control over financial reporting as of December 31, 2013 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report herein.

Item 9B. Other Information

None.

PART III.

Item 10. Directors, Executive Officers and Corporate Governance

Information regarding our executive officers is set forth in Item 1 of Part 1 of this Report under the caption “Executive Officers
of the Registrant.” Information about our Audit Committee may be found in the definitive Proxy Statement for our 2014
Annual Meeting of Stockholders. That information is incorporated herein by reference.

We adopted a code of ethics applicable to our Chief Executive Officer, Chief Financial Officer, Chief Accounting Officer,
Treasurer, and Controller, which is a “Code of Ethics for Senior Financial Officers” as defined by applicable rules of the SEC.
This code is publicly available on our website at investor.t-mobile.com. If we make any amendments to this code other than
technical, administrative or other non-substantive amendments, or grant any waivers, including implicit waivers, from a
provision of this code we will disclose the nature of the amendment or waiver, its effective date and to whom it applies on our
website at investor.t-mobile.com or in a periodic report on Form 8-K filed with the SEC.

The remaining information required by this item is incorporated by reference to the definitive Proxy Statement for our 2014
Annual Meeting of Stockholders, which will be filed with the SEC, no later than 120 days after December 31, 2013.

Item 11. Executive Compensation

The information required by this item is incorporated by reference to the definitive Proxy Statement for our 2014 Annual
Meeting of Stockholders, which will be filed with the SEC no later than 120 days after December 31, 2013.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 13. Certain Relationships and Related Transactions, and Director Independence

Item 14. Principal Accounting Fees and Services

PART IV.

Item 15. Exhibits, Financial Statement Schedules

(a) Documents filed as a part of this Form 10-K:

1. Financial Statements

The following financial statements are included in Part II, Item 8 of this Form 10-K:

Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets
Consolidated Statements of Comprehensive Income (Loss)
Consolidated Statements of Cash Flows
Consolidated Statement of Stockholders’ Equity
Notes to the Consolidated Financial Statements

2. Financial Statement Schedules

All other schedules have been omitted because they are not required, not applicable, or the required information is otherwise
included.

3. Exhibits

See the Exhibit Index immediately following the signature page of this Form 10-K.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this
Report to be signed on its behalf by the undersigned thereunto duly authorized.

T-MOBILE US, INC.

February 25, 2014

/s/ John J. Legere

John J. Legere
President and Chief Executive Officer

Each person whose signature appears below constitutes and appoints John J. Legere and J. Braxton Carter, and each or either of
them, his or her true and lawful attorney-in-fact and agent, each acting alone, with full power of substitution and resubstitution,
for him or her and in his or her name, place and stead, in any and all capacities, to sign any or all amendments or supplements
(including post-effective amendments) to this Report, and to file the same, with all exhibits thereto, and all documents in
connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, full power
and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as
fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-
in-fact and agent, or his or her substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities indicated as of February 25, 2014.

Signature

Title

/s/ John J. Legere

John J. Legere

/s/ J. Braxton Carter

J. Braxton Carter

/s/ Michael J. Morgan

Michael J. Morgan

/s/ Timotheus Höttges

Timotheus Höttges

/s/ W. Michael Barnes

W. Michael Barnes

/s/ Thomas Dannenfeldt

Thomas Dannenfeldt

President and Chief Executive Officer and

Director (Principal Executive Officer)

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

Senior Vice President, Finance and Chief Accounting

Officer (Principal Accounting Officer)

Chairman of the Board

Director

/s/ Srikant Datar

Srikant Datar

/s/ Lawrence H. Guffey

Lawrence H. Guffey

/s/ Raphael Kübler

Raphael Kübler

/s/ Thorsten Langheim
Thorsten Langheim

/s/ James N. Perry, Jr.

James N. Perry, Jr.

/s/ Teresa A. Taylor

Teresa A. Taylor

/s/ Kelvin R. Westbrook

Kelvin R. Westbrook

Director

Exhibit
No.
2.1

2.2

2.3

3.1

3.2

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

4.10

4.11

4.12

INDEX TO EXHIBITS

Exhibit Description
Business Combination Agreement, dated as of October 3,
2012, by and among MetroPCS Communications, Inc.,
Deutsche Telekom AG, T-Mobile Zwischenholding GMBH,
T-Mobile Global Holding GMBH and T-Mobile USA, Inc.

Consent Solicitation Letter Agreement, dated December 5,
2012, by and among MetroPCS Communications, Inc. and
Deutsche Telekom AG, amending Exhibit G to the Business
Combination Agreement.

Amendment No. 1 to the Business Combination Agreement
by and among Deutsche Telekom AG, T-Mobile USA, Inc., T-
Mobile Global Zwischenholding GmbH, T-Mobile Global
Holding GmbH and MetroPCS Communications, Inc., dated
April 14, 2013.

Fourth Amended and Restated Certificate of Incorporation.

Fifth Amended and Restated Bylaws.

Rights Agreement, dated as of March 29, 2007, between
MetroPCS Communications, Inc. and American Stock
Transfer & Trust Company, as Rights Agent, which includes
the form of Certificate of Designation of Series A Junior
Participating Preferred Stock of MetroPCS Communications,
Inc. as Exhibit A, the form of Rights Certificate as Exhibit B
and the Summary of Rights as Exhibit C.

Amendment No. 1 to the Rights Agreement, dated as of
October 3, 2012 between MetroPCS Communications, Inc.
and American Stock Transfer & Trust Company, as Rights
Agent.

Indenture, dated September 21, 2010, among MetroPCS
Wireless, Inc., the Guarantors (as defined therein) and Wells
Fargo Bank, N.A., a trustee.

First Supplemental Indenture, dated September 21, 2010,
among MetroPCS Wireless, Inc., the Guarantors (as defined
therein) and Wells Fargo Bank, N.A., as trustee.

Second Supplemental Indenture, dated November 17, 2010,
among MetroPCS Wireless, Inc., the Guarantors (as defined
therein) and Wells Fargo Bank, N.A., as trustee.

Third Supplemental Indenture, dated December 23, 2010,
among MetroPCS Wireless, Inc., the Guarantors (as defined
therein) and Wells Fargo Bank, N.A., as trustee.

Fourth Supplemental Indenture, dated December 23, 2010,
among MetroPCS Wireless, Inc., the Guarantors (as defined
therein) and Wells Fargo Bank, N.A., as trustee.

Fifth Supplemental Indenture, dated as of December 14,
2012, among MetroPCS Wireless, Inc., the Guarantors (as
defined therein) and Wells Fargo Bank, N.A., as trustee.

Sixth Supplemental Indenture, dated as of December 14,
2012, among MetroPCS Wireless, Inc., the Guarantors (as
defined therein) and Wells Fargo Bank, N.A., as trustee.

Seventh Supplemental Indenture, dated as of May 1, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Wells Fargo Bank, N.A., as trustee.

Eighth Supplemental Indenture, dated as of July 15, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Wells Fargo Bank, N.A., as trustee.

Indenture, dated as of March 19, 2013, by and among
MetroPCS Wireless, Inc., the Guarantors (as defined therein)
and Deutsche Bank Trust Company Americas, as trustee.

Incorporated by Reference
Date of
First Filing
10/3/2012

Exhibit
Number
2.1

Form
8-K

Filed
Herein

8-K

12/7/2012

2.1

8-K

4/15/2013

2.1

8-K

5/2/2013

3/30/2007

3.1

3.2

4.1

8-K

10/3/2012

4.1

8-K

9/21/2010

4.1

8-K

9/21/2010

4.2

8-K

11/17/2010

4.1

10-K

3/1/2011

10.19(d)

10-K

3/1/2011

10.19(e)

8-K

12/17/2012

4.1

8-K

12/17/2012

4.2

8-K

5/2/2013

4.15

10-Q

8/8/2013

4.19

8-K

3/22/2013

4.1

Exhibit
No.
4.13

4.14

4.15

4.16

4.17

4.18

4.19

4.20

4.21

4.22

4.23

4.24

4.25

4.26

4.27

4.28

4.29

4.30

4.31

Exhibit Description
First Supplemental Indenture, dated as of March 19, 2013, by
and among MetroPCS Wireless, Inc., the Guarantors (as
defined therein) and Deutsche Bank Trust Company
Americas, as trustee.

Form of 6.250% Senior Notes due 2021.

Second Supplemental Indenture, dated as of March 19, 2013,
by and among MetroPCS Wireless, Inc., the Guarantors (as
defined therein) and Deutsche Bank Trust Company
Americas, as trustee.

Form of 6.625% Senior Notes due 2023.

Third Supplemental Indenture, dated as of April 29, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Fourth Supplemental Indenture, dated as of May 1, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Fifth Supplemental Indenture, dated as of July 15, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Indenture, dated as of April 28, 2013 among T-Mobile USA,
Inc., the guarantors party thereto, and Deutsche Bank Trust
Company Americas, as trustee.

First Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Second Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Third Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Fourth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Fifth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Sixth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Seventh Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Eighth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Ninth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Tenth Supplemental Indenture, dated as of April 28, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Eleventh Supplemental Indenture, dated as of May 1, 2013
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Incorporated by Reference
Date of
First Filing
3/22/2013

Exhibit
Number
4.2

Form
8-K

Filed
Herein

8-K

3/22/2013

4.3

4.4

8-K

10-Q

3/22/2013

8/8/2013

4.5

4.17

8-K

5/2/2013

4.16

10-Q

8/8/2013

4.20

8-K

5/2/2013

4.1

8-K

5/2/2013

4.2

8-K

5/2/2013

4.3

8-K

5/2/2013

4.4

8-K

5/2/2013

4.5

8-K

5/2/2013

4.6

8-K

5/2/2013

4.7

8-K

5/2/2013

4.8

8-K

5/2/2013

4.9

8-K

5/2/2013

4.10

8-K

5/2/2013

4.11

8-K

5/2/2013

4.12

Incorporated by Reference
Date of
First Filing
8/8/2013

Exhibit
Number
4.18

Form
10-Q

Filed
Herein

8-K

8/22/2013

4.1

8-K

11/22/2013

4.1

8-K

11/22/2013

4.2

8-K

5/2/2013

4.13

10-Q

8/8/2013

10.1

10-Q

8/8/2013

10.2

10-Q

8/8/2013

10.3

10-Q

8/8/2013

10.4

10-Q

8/8/2013

10.5

10-Q

8/8/2013

10.6

10-Q

8/8/2013

10.7

Exhibit
No.
4.32

4.33

4.34

4.35

4.36

10.1

10.2

10.3

10.4

10.5

10.6

10.7

Exhibit Description
Twelfth Supplemental Indenture, dated as of July 15, 2013,
among T-Mobile USA, Inc., the guarantors party thereto, and
Deutsche Bank Trust Company Americas, as trustee.

Thirteenth Supplemental Indenture, dated as of August 21,
2013, by and among T-Mobile USA, Inc., the Guarantors (as
defined therein) and Deutsche Bank Trust Company
Americas, as trustee, including the Form of 5.250% Senior
Note due 2018.

Fourteenth Supplemental Indenture, dated as of November
21, 2013, by and among T-Mobile USA, Inc., the Guarantors
and Deutsche Bank Trust Company Americas, as trustee,
including the Form of 6.125% Senior Note due 2022.

Fifteenth Supplemental Indenture, dated as of November 21,
2013, by and among T-Mobile USA, Inc., the Guarantors and
Deutsche Bank Trust Company Americas, as trustee,
including the Form of 6.500% Senior Note due 2024.

Noteholder Agreement dated as of April 28, 2013, by and
between Deutsche Telekom AG and T-Mobile USA, Inc.

Master Agreement, dated as of September 28, 2012, among T-
Mobile USA, Inc., Crown Castle International Corp., and
certain T-Mobile and Crown subsidiaries.

Amendment No. 1, to Master Agreement, dated as of
November 30, 2012, among Crown Castle International
Corp., and certain T-Mobile and Crown subsidiaries.

Master Prepaid Lease, dated as of November 30, 2012, by
and among T-Mobile USA Tower LLC, T-Mobile West Tower
LLC, T-Mobile USA, Inc. and CCTMO LLC.

MPL Site Master Lease Agreement, dated as of November 30,
2012, by and among Cook Inlet/VS GSM IV PCS Holdings,
LLC, T-Mobile Central LLC, T-Mobile South LLC, Powertel/
Memphis, Inc., Voicestream Pittsburgh, L.P., T-Mobile West
LLC, T-Mobile Northeast LLC, Wireless Alliance, LLC,
Suncom Wireless Operating Company, L.L.C., T-Mobile
USA, Inc. and CCTMO LLC.

First Amendment to MPL Site Master Lease Agreement,
dated as of November 30, 2012, by and among Cook Inlet/VS
GSM IV PCS Holdings, LLC, T-Mobile Central LLC, T-
Mobile South LLC, Powertel/Memphis, Inc., Voicestream
Pittsburgh, L.P., T-Mobile West LLC, T-Mobile Northeast
LLC, Wireless Alliance, LLC, Suncom Wireless Operating
Company, L.L.C., T-Mobile USA, Inc. and CCTMO LLC.

Sale Site Master Lease Agreement, dated as of November 30,
2012, by and among Cook Inlet/VS GSM IV PCS Holdings,
LLC, T-Mobile Central LLC, T-Mobile South LLC, Powertel/
Memphis, Inc., Voicestream Pittsburgh, L.P., T-Mobile West
LLC, T-Mobile Northeast LLC, Wireless Alliance, LLC,
Suncom Wireless Operating Company, L.L.C., T-Mobile
USA, Inc., T3 Tower 1 LLC and T3 Tower 2 LLC.

First Amendment to Sale Site Master Lease Agreement, dated
as of November 30, 2012, by and Cook Inlet/VS GSM IV
PCS Holdings, LLC, T-Mobile Central LLC, T-Mobile South
LLC, Powertel/Memphis, Inc., Voicestream Pittsburgh, L.P.,
T-Mobile West LLC, T-Mobile Northeast LLC, Wireless
Alliance, LLC, Suncom Wireless Operating Company,
L.L.C., T-Mobile USA, Inc., T3 Tower 1 LLC and T3 Tower
2 LLC.

Exhibit
No.
10.8

Exhibit Description
Management Agreement, dated as of November 30, 2012, by
and among Suncom Wireless Operating Company, L.L.C.,
Cook Inlet/VS GSM IV PCS Holdings, LLC, T-Mobile
Central LLC, T-Mobile South LLC, Powertel/Memphis, Inc.,
Voicestream Pittsburgh, L.P., T-Mobile West LLC, T-Mobile
Northeast LLC, Wireless Alliance, LLC, Suncom Wireless
Property Company, L.L.C., T-Mobile USA Tower LLC, T-
Mobile West Tower LLC, CCTMO LLC, T3 Tower 1 LLC
and T3 Tower 2 LLC.

Incorporated by Reference
Date of
First Filing
8/8/2013

Exhibit
Number
10.8

Form
10-Q

Filed
Herein

10.9

Stockholder’s Agreement dated as of April 30, 2013 by and
between MetroPCS Communications, Inc. and Deutsche
Telekom AG.

8-K

5/2/2013

10.1

10.10 Waiver of Required Approval Under Section 3.6(a) of the

10-Q

8/8/2013

10.10

Stockholder's Agreement, dated August 7, 2013, between T-
Mobile US, Inc. and Deutsche Telekom AG.

License Agreement dated as of April 30, 2013 by and
between T-Mobile US, Inc. and Deutsche Telekom AG.

Credit Agreement, dated as of May 1, 2013, among T-Mobile
USA, Inc., as Borrower, Deutsche Telekom AG, as Lender,
the other lenders party thereto from time to time, and
JPMorgan Chase Bank, N.A., as Administrative Agent.

Amendment No. 1, dated as of November 15, 2013, to the
Credit Agreement, dated May 1, 2013, among T-Mobile US,
Inc., T-Mobile USA, Inc., each of the Subsidiaries signatory
thereto, Deutsche Telekom AG and the other lenders party
thereto from time to time, and JPMorgan Chase Bank, N.A.,
as Administrative Agent.

Registration Rights Agreement, dated as of March 19, 2013,
by and among MetroPCS Wireless, Inc., the Initial
Guarantors (as defined therein), and Deutsche Bank
Securities, as representative of the Initial Purchasers (as
defined therein).

Registration Rights Agreement, dated as of August 21, 2013,
by and among T-Mobile USA, Inc., the Guarantors (as
defined therein), and Deutsche Bank Securities Inc., as Initial
Purchaser (as defined therein).

Second Amended and Restated 1995 Stock Option Plan of
MetroPCS, Inc.

First Amendment to the Second Amended and Restated 1995
Stock Option Plan of MetroPCS, Inc.

Second Amendment to the Second Amended and Restated
1995 Stock Option Plan of MetroPCS, Inc.

Amended and Restated MetroPCS Communications, Inc.
2004 Equity Incentive Compensation Plan.

10.11

10.12

10.13

10.14

10.15

10.16*

10.17*

10.18*

10.19*

10.20* MetroPCS Communications, Inc. 2010 Equity Incentive

Compensation Plan.

10.21*

10.22*

Form of Officer and Director Indemnification Agreement for
MetroPCS Communications, Inc.

Form of Officer Annual Cash Performance Award Agreement
for MetroPCS Communications, Inc.

10.23* MetroPCS Communications, Inc. Severance Pay Plan.

10.24*

10.25*

Form Change in Control Agreement for MetroPCS
Communications, Inc.

Form Change in Control Agreement Amendment for
MetroPCS Communications, Inc.

8-K

5/2/2013

10.2

4.14

8-K

11/20/2013

10.1

8-K

3/22/2013

10.1

8-K

8/21/2013

10.1

S-1

1/4/2007

10.1(d)

1/4/2007

10.1(e)

1/4/2007

10.1(f)

S-1/A

2/27/2007

10.1(a)

Schedule
14A

4/19/2010

Annex A

S-1/A

2/27/2007

10.4

10-Q

10/30/2012

10.4

8-K

10-Q

5/31/2012

8/9/2010

10.1

10.2

10-Q

10/30/2012

10.1

Exhibit
No.

Exhibit Description

10.26* MetroPCS Communications, Inc. Employee Non-qualified
Stock Option Award Agreement relating to the MetroPCS
Communications, Inc. Amended and Restated 2004 Equity
Incentive Compensation Plan.

Incorporated by Reference
Date of
First Filing
3/1/2013

Exhibit
Number
10.9(a)

Form
10-K

10.27* MetroPCS Communications, Inc. Non-Employee Director

10-K

3/1/2013

10.9(b)

10.28*

10.29*

10.30*

10.31*

10.32*

10.33*

10.34*

10.35*

10.36*

10.37*

10.38*

10.39*

10.40*

10.41*

10.42*

10.43*

10.44*

10.45*

10.46*

10.47*

10.48*

Non-qualified Stock Option Award Agreement relating to the
MetroPCS Communications, Inc. Amended and Restated
2004 Equity Incentive Compensation Plan.

Form Amendment to the MetroPCS Communications, Inc.
Notice of Grant of Stock Option relating to the Second
Amended and Restated 1995 Stock Option Plan of
MetroPCS, Inc.

Form MetroPCS Communications, Inc. 2010 Equity Incentive
Compensation Plan Employee Non-Qualified Stock Option
Award Agreement.

Form MetroPCS Communications, Inc. 2010 Equity Incentive
Compensation Plan Non-Employee Director Non-Qualified
Stock Option Award Agreement.

Employment Agreement of J. Braxton Carter dated as of
January 25, 2013.

Employment Agreement of Thomas C. Keys dated as of
January 25, 2013.

Employment Agreement of Dennis T. Currier dated as of
April 30, 2013.

Employment Agreement of John J. Legere dated as of
September 22, 2012.

Amendment to Employment Agreement of John J. Legere
dated as of October 23, 2013.

Form of Indemnification Agreement.

Company’s Director Compensation Program dated as of May
1, 2013.

10-Q

8/9/2010

10.5

10-K

2/29/2012

10.12

10-K

3/1/2013

10.12(b)

8-K

5/2/2013

10.3

10.4

10.5

10-Q

8/8/2013

10.17

8-K

5/2/2013

10.6

10.7

T-Mobile USA, Inc. Executive Deferred Compensation Plan.

10-Q

8/8/2013

10.18

T-Mobile US, Inc. Non-Qualified Deferred Executive
Compensation Plan (As Amended and Restated Effective as
of January 1, 2014).

T-Mobile USA, Inc. 2003 Executive Continuity Bonus Plan.

T-Mobile US, Inc. Executive Continuity Plan as Amended
and Restated Effective as of January 1, 2014.

T-Mobile US, Inc. 2013 Omnibus Incentive Plan (as amended
and restated on August 7, 2013).

T-Mobile USA, Inc. 2011 Long-Term Incentive Plan.

T-Mobile USA, Inc. 2013 Annual Corporate Bonus Plan.

Annual Incentive Award Notice under the 2013 Omnibus
Incentive Plan.

Form of Restricted Stock Unit Award Agreement for Non-
Employee Directors under the T-Mobile US, Inc. 2013
Omnibus Incentive Plan.
Form of Restricted Stock Unit Award Agreement (Time-
Vesting) for Executive Officers under the T-Mobile US, Inc.
2013 Omnibus Incentive Plan.

Form of Restricted Stock Unit Award Agreement
(Performance-Vesting) for Executive Officers under the T-
Mobile US, Inc. 2013 Omnibus Incentive Plan.

10-Q

8-K

8/8/2013

10/25/2013

10.19

10.1

10-Q

8/8/2013

10.20

10-Q

8/8/2013

10.21

10.22

8-K

6/4/2013

10.2

10-Q

8/8/2013

10.24

10-Q

8/8/2013

10.25

Filed
Herein

Exhibit
No.
12.1

21.1

23.1

24.1

31.1

31.2

32.1**

32.2**

Exhibit Description
Computation of Ratio of Earnings to Fixed Charges.

Subsidiaries of Registration.

Consent of PricewaterhouseCoopers LLP.

Power of Attorney, pursuant to which amendments to this
Form 10-K may be filed (included on the signature page
contained in Part IV of the Form 10-K).

Certifications of Chief Executive Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.

Certifications of Chief Financial Officer Pursuant to
Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Chief Executive Officer Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.

Certification of Chief Financial Officer Pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS XBRL Instance Document.

101.SCH XBRL Taxonomy Extension Schema Document.

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB XBRL Taxonomy Extension Label Linkbase Document.

101.PRE XBRL Taxonomy Extension Presentation Linkbase

Document.

Incorporated by Reference
Date of
First Filing

Exhibit
Number

Form

Filed
Herein
X

*
**

Indicates a management contract or compensatory plan or arrangement.
Furnished herein.

The graph below compares the cumulative 5-year total shareholder return of T-Mobile US, Inc.’s common stock to the cumulative
5-year total returns of the NYSE Composite index, the S&P 500 index, and the Dow Jones US Mobile Telecommunications TSM
index. The graph tracks the performance of a $100 investment in our common stock and in each index (with the reinvestment of
all dividends) from December 31, 2008 to December 31, 2013. For the periods prior to the closing of the business combination
with MetroPCS Communications, Inc., our stock price performance represents the stock price of MetroPCS Communications,
Inc., adjusted to reflect the 1-for-2 reverse stock split effected on April 30, 2013.

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among T-Mobile US, Inc., the NYSE Composite Index, the S&P 500 Index,
and the Dow Jones US Mobile Telecommunications TSM Index

$350

$300

$250

$200

$150

$100

$50

2008

2009

2010

2011

2012

2013

T-Mobile US, Inc.

S&P 500

NYSE Composite

Dow Jones US Mobile Telecommunications TSM

*$100 invested on 12/31/08 in stock or index, including reinvestment of dividends.
Fiscal year ending December 31.

T-Mobile US, Inc.
NYSE Composite
S&P 500
Dow Jones US Mobile Telecommunications TSM

100.00
100.00
100.00
100.00

51.38
128.28
126.46
134.26

85.05
145.46
145.51
167.18

58.45
139.87
148.59
148.01

66.94
162.23
172.37
222.47

141.03
204.87
228.19
293.92

At December 31,
2009

2008

2010

2011

2012

2013

The stock price performance included in this graph is not necessarily indicative of future stock price performance.

EXECUTIVE OFFICERS, DIRECTORS AND BOARD COMMITTEES

T-Mobile tackled consumer pain points
and rewrote the rules of wireless.

James C. Alling
Executive Vice President
and Chief Operating Officer,
T-Mobile Business

Corporate Headquarters
12920 SE 38th Street
Bellevue, Washington 98006
Phone: 1-800-318-9270

John J. Legere
President
and Chief Executive Officer

Website
www.T-Mobile.com

EXECUTIVE OFFICERS

DIRECTORS

STOCKHOLDER INFORMATION

Annual Meeting
Thursday, June 5, 2014
9:30 a.m. Pacific Daylight Time
Hyatt Regency Bellevue
900 Bellevue Way NE
Bellevue, Washington 98004

Audit Committee
Srikant M. Datar, Chair
W. Michael Barnes
0
James N. Perry, Jr.
.
1
r
e

Transfer Agent
American Stock Transfer and
Trust Company, LLC
MARCH 2013
6201 15th Avenue
PUT AN END TO ANNUAL
Brooklyn, New York 11219
Phone: 1-800-937-5449
SERVICE CONTRACTS.
Stock Exchange
T-Mobile US, Inc.
Common stock trades on the
New York Stock Exchange under
the ticker symbol TMUS

Timotheus Höttges, Chair
W. Michael Barnes
Thomas Dannenfeldt
Srikant M. Datar
Lawrence H. Guffey
Raphael Kübler
Thorsten Langheim
John J. Legere
James N. Perry, Jr.
Teresa A. Taylor
Kelvin R. Westbrook

BOARD COMMITTEES

Compensation Committee
Teresa A. Taylor, Chair
i
r
Thomas Dannenfeldt
r
a
Lawrence H. Guffey
c
Raphael Kübler
n
Kelvin R. Westbrook
U
Nominating and Corporate
Governance Committee
Kelvin R. Westbrook, Chair
Lawrence H. Guffey
Thorsten Langheim

Executive Committee
Timotheus Höttges, Chair
Thomas Dannenfeldt
Raphael Kübler
Thorsten Langheim
John J. Legere
James N. Perry, Jr.

Investor Relations
1 Park Avenue
14th Floor
New York, New York 10016
investor.relations@T-Mobile.com
Phone: 1-877-281-TMUS or
1-212-358-3210

Annual Report
The 2013 Annual Report is available
online at www.T-Mobile.com.
Stockholders may receive copies
without charge by contacting
Investor Relations.

David R. Carey
Executive Vice President,
Corporate Services

J. Braxton Carter
Executive Vice President
and Chief Financial Officer

Peter A. Ewens
Executive Vice President,
Corporate Strategy

Alexander Andrew Kelton
Executive Vice President,
Business to Business

Thomas C. Keys
Executive Vice President and Chief
Operating Officer, MetroPCS Business

Gary A. King
Executive Vice President and
Chief Information Officer

David A. Miller
Executive Vice President,
General Counsel and Secretary

Larry L. Myers
Executive Vice President,
Human Resources

Neville R. Ray
Executive Vice President and
Chief Technology Officer

G. Michael Sievert
Executive Vice President and
Chief Marketing Officer

Annual Report to Stockholders 2013

The
Un-carrier
Revolution