T-Mobile Points to Stable Pricing and Lower Network Investment in 2023

T-Mobile’s fourth-quarter results and 2023 forecast weren’t radically different than our expectations. Profitability and cash flow should take another leap forward this year as the Sprint integration costs wind down and the cost savings fully materialize. Surprisingly, the firm expects to spend only $9.4 billion-$9.7 billion on its network this year, down from nearly $14 billion in 2022. We’ve been expecting capital spending to decline as integration and midband spectrum deployment wrap up, but not quite to that degree. Our fair value estimate remains $165.