T-Mobile US, Inc. TMUS recently inched a step closer to building a nationwide 5G network with the successful completion of the world’s first 5G data transmission on low-band spectrum (600 MHz). The company achieved this unique feat in association with Nokia Corporation NOK using global 5G standards in Spokane, WA.
The low-band airwaves offer a wider coverage compared with millimeter waves and reach hundreds of square miles from a single tower, unlike the latter that reaches less than a square mile. This is likely to prove instrumental for T-Mobile to reach an extensive customer pool even across rural areas and help it realize the goal of providing 5G to everyone and everywhere. This is expected to offer it a competitive advantage over rivals that reportedly focus on a select group of customers in particular regions.
T-Mobile’s innovative network expansion methodologies continue to be faster and technologically sounder. The wireless carrier’s network has been the fastest network in America in both download and upload speeds. By 2018-end, the company is targeting a population coverage of 325 million and a geographic coverage of 2.5 million square miles. A dozen more compatible smartphones are expected to be rolled out in 2018. Furthermore, the company has successfully conducted Narrowband Internet of Things tests, live on its commercial network. T-Mobile is also planning to team up with dark fiber partners to backhaul small cell densification project.
The company is well on track to deliver nationwide 5G in 2020, deploying 5G-ready equipment while rolling out 600 MHz Extended Range LTE, which is already live in more than 1,500 cities and towns in 37 states and Puerto Rico.
Backed by impressive subscriber additions and diligent execution of operational plans, T-Mobile has outperformed the industry in the past year with an average return of 10.2% compared with 5.3% rise for the latter. T-Mobile's improved mobile plans, stellar network performance, deployment of LTE-U technology and attractive unlimited data plans are key factors behind its solid performance. These are ably supported by improving scale, healthy free cash flow generation, strong liquidity and valuable spectrum assets.
T-Mobile’s pending merger with Sprint Corporation S has received shareholder approval. This is a step forward in creating the New T-Mobile, through which it will bring robust competition to the 5G era. Its customer growth will continue to accelerate, benefiting from the investments in network and in customer experience. The New T-Mobile would have about 127 million customers. It will have a strong balance sheet position and a fully funded business plan with a solid foundation of secured investment grade debt at close. It will be a force to reckon with in the U.S. wireless, video and broadband industries. The New T-Mobile will have the network capacity to rapidly create a nationwide 5G network with the depth needed to enable U.S. firms and entrepreneurs to continue leading in the 5G era.
T-Mobile currently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Telenav, Inc. TNAV, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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