Do note that T-Mobile USA paid $225 million in "Interest expense to affiliates." The affiliate, in this case, is Deutsche Telekom, which owns T-Mobile. If thi

Do note that T-Mobile USA paid $225 million in "Interest expense to affiliates." The affiliate, in this case, is Deutsche Telekom, which owns T-Mobile. If this had been structured as preferred equity rather than debt, then it would turn into dividends and move "below the line" on the income statement. T-Mobile USA would then magically be making a profit. And of course, you're just looking at one quarter: Q2 2013. Q1 2013 was profitable. Q1 + Q2 was also profitable. T-Mobile USA is not out of the woods yet. But they're in better shape than they were in 2011.