Postpaid retail ARPU continued lower, at USD 50.70 versus USD 52.20 in Q3 and USD 55.47 a year earlier. The operator had 69 percent of customers on its Simple Choice and Value plans at year-end, versus 30 percent in 2012, and it expects this to rise to 85-90 percent in 2014. Prepaid ARPU improved slightly, to USD 35.84 from USD 35.71 in Q3 and a year earlier, thanks to the inclusion of data bundles in prepaid offers.
Adjusted EBITDA declined to USD 1.24 billion in Q4 from USD 1.36 billion a year earlier, hurt by the higher smartphone sales and promotions for new offers. Over the full year, the company met its guidance for adjusted EBITDA at USD 5.3 billion, and T-Mobile said it expects this to improve to USD 5.7-6.0 billion in 2014, helped by higher-than-expected synergies from the MetroPCS integration. Operating synergies are now estimated at USD 105 million, versus a maximum USD 30 million previously, and capex synergies should reach USD 657 million, versus an earlier target of USD 70-135 million.
T-Mobile has decided to bring forward the shutdown of three MetroPCS markets to this year from 2015 and sees potential for further acceleration of other markets to the T-Mobile brand. Over 25 percent of the MetroPCS spectrum had been integrated in the T-Mobile network by the end of 2013. Capital expenditure is expected to increase slightly to USD 4.3-4.6 billion this year from USD 4.2 billion in 2013.
