“we continue to [ step back ] strong postpaid ARPA growth of between 2.5% and 3% this year.”

In context

“Peter Osvaldik : All right. Thank you, Srini. As you can see, we had a fabulous Q2, which reinforces our strong guidance for the remainder of the year. So let me add some additional color. Starting with accounts where we continue to expect postpaid account net additions to be between 950,000 and 1,050,000 on the strength of the underlying momentum in the business. As part of our full year plan and guidance, we anticipated our Q3 rate plan modernization would result in a temporary elevated account churn profile and expect Q3 net postpaid account additions to be approximately 250,000. It should be noted that the impact to postpaid phone churn is lower as the modernization impact is concentrated more in accounts with fewer lines. In the first half of the year, we have delivered almost 500,000 net postpaid account additions. So we are well on our way to delivering within our guidance range. This modernization also creates strong value both for customers and T-Mobile and sets us up to deliver against our 2027 guidance ambitions. So turning to service revenues. We continue to expect to deliver full year service revenues of approximately $77 billion this year, representing 8% growth with Q3 expectations of approximately $19.3 billion or up 6% year-over-year. As part of that service revenue guide, we continue to [ step back ] strong postpaid ARPA growth of between 2.5% and 3% this year. We continue to expect core adjusted EBITDA to be between $37.1 billion and $37.5 billion for the full year, representing 10% growth year-over-year at the midpoint. As part of that, we expect Q3 core adjusted EBITDA of approximately $9.4 billion or up 8% year-over-year. Our expectation for full year 2026 cash CapEx remains unchanged at approximately $10 billion. And finally, we are increasing our adjusted free cash flow guidance to now be between $18.4 million and $18.8 billion, an increase of $200 million at the midpoint, primarily driven by lower cash income taxes. Our philosophical approach to guidance, as you are seeing play out, is to begin the year with an ambitious and industry-leading guidance range based on our best view at the time targeting to land at the midpoint of that strong guidance range and providing updates throughout the year as warranted. Turning to shareholder returns. In addition to our dividend, we're also excited to have repurchased an incremental $2.5 billion in Q2 and through July 17. If you step back, since beginning our share buyback program in late 2022, we have repurchased 253 million shares and reduced total shares outstanding to $1.07 billion. While we continue to execute share buybacks this year, including with our previously increased authorization, we are also thoughtfully maintaining a capital envelope that is considerate of upcoming spectrum opportunities in both 2027 and 2028, including C-band 2.0 and 2.7 gigahertz, which represents an opportunity to further cement our network leadership position and provide increased value creation through, for example, additional 5G broadband capacity unlock. To sum it all up, we continue to see strong momentum in the business and cannot be more excited for the future. And so with that, I'll now turn the call back to Cathy to begin the Q&A. Cathy?”