T-Mobile (TMUS) Expands 5G Home Internet in Multiple States – July 1, 2022

T-Mobile US, Inc. (TMUS Free Report) recently increased its 5G footprint in the country by introducing 5G home internet services in five states, namely Colorado, Iowa, Kansas, Missouri and Oklahoma. The expansion will allow the company to bring the service to nearly 5 million additional homes in 81 additional cities and towns across the five states.

Home Internet service provides fast and affordable home broadband connectivity through a 5G gateway device, which combines the capabilities of a router and a modem. The Gateway device then converts the 5G signal to Wi-Fi, which is accessible by all devices in the home. It has no data caps or charges equipment fees for the Gateway device and is priced at a flat rate of $50 per month with AutoPay. Customers can even take advantage of the service for $30 a month with Magenta MAX, T-Mobile’s most popular phone plan. It also requires no annual service contract and therefore has no early termination fees for service interruption.

Following its merger with Sprint, T-Mobile has an unparalleled bouquet of high- and low-band frequencies for faster nationwide 5G deployment, undeniably disrupting the competitive landscape of the U.S. telecom market. To its credit, T-Mobile has the largest nationwide 5G network, covering more than 250 million people across 1.3 million square miles. The company is further boosting its mid-band coverage by adding more towers and spectrum in locations that already have 5G network connectivity.

T-Mobile is confident in its ability to unlock massive synergies while building the best 5G network. Additionally, it aims to generate $43 billion in synergies and achieve $6 billion in annualized cost savings from its merger with Sprint. T-Mobile’s commitment to building the world’s best nationwide 5G network has the potential to bring superfast speeds to urban areas as well as rural areas. Customers will have access to average 5G speeds up to eight times faster than LTE within a few years and 15 times faster over the next six years.

The company intends to offer the same services at a reduced rate for three years. The revamped T-Mobile intends to compete for consumers at all price points. Customers, including prepaid and Lifeline, will have access to the same 5G network and services. The combined company’s network will have 14 times more capacity than on a stand-alone basis, putting it ahead of the competition in terms of network capacity and customer experience. Additionally, T-Mobile launched its streaming TV service. The acquisition of Layer3 TV boosted its streaming service. The company continues to leverage LTE network speeds and Layer3 TV technology to roll out a TV streaming service. In particular, offering such services has become a trend in the industry. T-Mobile’s enhanced mobile plans, network performance, deployment of LTE-U technology and attractive unlimited data offering are key factors behind this outstanding performance.

Shares of the company have lost 8% in the past year compared to industrydown 16.4%.

Image source: Zacks Investment Research

T-Mobile currently has a Zacks rank of #3 (Hold). You can see the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sierra Wireless, Inc. (SWIR Free Report) carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and has generated an earnings surprise of 223.7%, on average, over the past four quarters.

Over the past year, Sierra Wireless has gained 48.3%. Current-year earnings estimates for the stock are up 616.7% since June 2021. The company continues to launch innovative products for mission-critical operations that require high security and optimal 5G performance.

Qualcomm Incorporated (COMQ Free Report), carrying a Zacks Rank #2, is another key pick for investors. It has a long-term earnings growth expectation of 16.1% and has generated a 12.2% earnings surprise, on average, over the past four quarters.

Current-year earnings estimates for the stock are up 43.2% over the past year, while next-year earnings estimates are up 48.6%. Qualcomm stands to benefit long-term from strong 5G traction and increased demand for essential products that are the building blocks of digital transformation in the cloud economy.

TESSCO Technologies Incorporated (TESS Free Report), carrying a Zacks rank of No. 2, has generated a profit surprise of 61.9%, on average, over the past four quarters. TESSCO’s profit estimates for the current year have risen 40.7% since May 2021.

TESSCO offers products to the industry’s leading manufacturers in the fields of mobile communications, Wi-Fi, wireless backhaul and related products. With over three decades of experience, it provides complete end-to-end solutions to the wireless industry.

Leave a Comment