T-Mobile capex in 2021: $11.7 billion to $12 billion
T-Mobile’s capex spend in 2020 was a little murky because the company was in the process of buying Sprint. For 2020, it planned to spend from $5.9 billion to $6.2 billion, but this didn’t include Sprint, which it purchased in mid-2020.
T-Mobile’s capex plans for 2021 are much more clear.
According to its recently filed 2020 SEC Form 10K, T-Mobile stated, “We expect cash purchases of property and equipment to range from $11.7 billion to $12.0 billion in 2021.” And according to the company’s financials, property and equipment does not include spectrum expenditures, so much of these capex funds may be available to build out 5G.
T-Mobile said, “Property and equipment capital expenditures primarily relate to the integration of our acquired Sprint 2.5 GHz spectrum licenses and existing 600 MHz spectrum licenses as we build out our nationwide 5G network. We expect the majority of our remaining capital expenditures related to these efforts to occur in 2021 and 2022, after which we expect capital expenditure requirements to reduce.”
The company also noted that as part of its approval to purchase Sprint it agreed to various government commitments to build out its 5G network and provide an in-home broadband product to households where spectrum capacity is sufficient.