T-Mobile (TMUS) Solution to Aid Roadside Safety Enhancement

·4 min read

T-Mobile US, Inc. TMUS recently inked a long-term agreement for an undisclosed amount with AAA to support the latter’s roadside assistance fleets nationwide. The collaboration is likely to be a win-win deal for both the marquee brands, offering improved customer service and safety enhancement.

With 63 million members, AAA is one of North America's most prominent companies providing roadside assistance services. Every year, it receives about 30 million calls on average. As the traffic gets busier and more congested, these numbers will likely increase. Fleet managers must continuously operate optimally to match these rising requirements. With T-Mobile's fast and reliable wireless network solution, AAA intends to meet these needs by offering best-in-class roadside assistance and boosting safety for its members, tow providers, and drivers.

AAA is aiming to enhance productivity by integrating TMUS’s loT and Geotab fleet telematics solutions into its roadside assistance fleet. This will enrich assistance providers with crucial data and insights related to the behavioral pattern of the driver, vehicle’s condition and fuel usage.

According to Federal Highway Administration, the fatality rate and probability of serious injuries increase each minute a person stops on a freeway. TMUS’s wireless solution will help reduce this probability, providing better navigation and improving the ability to locate the exact location of the member in need. TMUS has equipped thousands of AAA’s technicians with 5G phones, ensuring greater connectivity on the road and enabling roadside assistance providers to respond quickly to distress calls. This deal highlights the strength of the company’s wireless network portfolio and its ability to upscale businesses of customers.

T-Mobile continues to deploy 5G with the mid-band 2.5 GHz spectrum from Sprint. It is expected to provide 5G to 99% of the U.S. population. It is likely to provide average 5G speeds of above 100 Mbps to 90% of the population. T-Mobile’s business plan is built on covering 90% of rural America with average 5G speeds of 50 Mbps, up to two times faster than broadband. It plans to continue lighting up this 5G spectrum at an aggressive pace. In many places, mid-band 5G average download speeds are around 300 Mbps, with peak speeds approaching 1 Gbps.

T-Mobile competes for consumers at all price points. Customers, including prepaid and Lifeline, have access to the same 5G network and services. The combined network has 14 times more capacity than on a standalone basis, which enables it to leapfrog the competition in network capability and customer experience.

Shares of the company have gained 15.8% in the past year against the industry’s decline of 12.6%.

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T-Mobile currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks, Inc. ANET, sporting a Zacks Rank #1, delivered an earnings surprise of 14.17%, on average, in the trailing four quarters. Earnings estimates for ANET for the current year stand at $5.79 per share. Arista provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for next-generation data center networks.

It continues to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. It is well-poised for growth in data-driven cloud networking business with proactive platforms and predictive operations. Arista has introduced network observability software, DANZ Monitoring Fabric (DMF), on its switching platforms for enterprise-wide traffic visibility and contextual insights.

Juniper Networks, Inc. JNPR, carrying a Zacks Rank #2 (Buy), delivered an earnings surprise of 1.55%, on average, in the trailing four quarters. It is witnessing strong momentum across its core industry verticals and is confident of its long-term prospects. Investments in customer solutions and sales organizations have enabled the company to capitalize on the solid demand across end markets.

Juniper is a leading provider of networking solutions and communication devices. The company develops, designs and sells products that help build a network infrastructure for services and applications based on a single Internet protocol network worldwide. The company caters to the networking needs of enterprises, public sector organizations and service providers across the globe

Splunk Inc. SPLK, carrying a Zacks Rank #2, delivered an earnings surprise of 131.1%, on average, in the trailing four quarters. In the last reported quarter, it delivered an earnings surprise of 83.78%. Splunk provides software solutions that enable enterprises to gain real-time operational intelligence by harnessing the value of their data. The company's offerings enable users to investigate, monitor, analyze and act on machine data and big data, irrespective of format or source and help in operational decision-making.

Its software has a broad range of applications, including security analytics, business analytics and IT operations. Splunk is benefiting from healthy customer engagement, evident from the consistently high net retention and competitive win rates alongside solid momentum with large orders overall.

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