T-Mobile Extends 5G Footprint in 121 U.S. Cities and Towns
T-Mobile US, Inc. TMUS recently augmented its 5G footprint in the mid-band spectrum by introducing 5G services in 121 new cities and towns across the United States. With this, the company has achieved live 5G coverage in about 210 cities and towns. It aims to considerably increase the tally by the end of the year.
The mid-band spectrum (2.5 GHz) of T-Mobile delivers super-fast speed averaging around 300 Mbps with peak speed of up to 1 gigabit-per-second. This is reportedly about 7.5x faster than the existing LTE networks. The mid-band spectrum is highly coveted by telecom firms as it allows longer ranges of electromagnetic waves and better penetration of signals through walls. Notably, T-Mobile has almost twice as much low- and mid-band spectrum as AT&T Inc. T and triple as that of Verizon Communications Inc. VZ.
Following its merger with Sprint, T-Mobile boasts an unrivalled bouquet of high- and low-band spectrum for a faster nationwide 5G rollout, 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 strengthening its mid-band coverage by adding more towers and spectrum in places that already have 5G network connectivity.
T-Mobile is confident of its ability to unlock massive synergies while building the finest 5G network. Also, it aims to deliver $43 billion of synergies and achieve $6 billion of annualized cost savings from its merger with Sprint. T-Mobile’s commitment to building the world’s best nationwide 5G network is likely to bring super-fast speeds to urban areas as well as rural locations. Customers will have access to average 5G speeds up to eight times faster than LTE in a few years and 15 times faster over the next six years.
The company intends to offer the same services at a discounted 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 standalone basis, which enables it to leapfrog the competition in network capability and customer experience. Moreover, T-Mobile launched its own streaming TV service. The acquisition of Layer3 TV has boosted its streaming service. The company continues to leverage LTE network speeds and Layer3 TV’s technology to roll out TV streaming service. Notably, offering such services has become a trend in the industry. T-Mobile's improved mobile plans, network performance, deployment of LTE-U technology and offering of attractive unlimited data are key factors behind the stellar performance.
Shares of the company have gained 44.1% in the past year against the industry’s decline of 1.4%.
T-Mobile presently has a Zacks Rank #3 (Hold). A better-ranked stock in the industry is Cambium Networks Corporation CMBM, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cambium Networks has a long-term earnings growth expectation of 20%. It delivered a positive earnings surprise of 126.4%, on average, in the trailing four quarters.
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