We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
T-Mobile US' (TMUS) Latest Offer Poised to Threat Verizon
Read MoreHide Full Article
U.S. national wireless carrier T-Mobile US Inc.’s (TMUS - Free Report) latest promotional plans seem to have heated up the nation’s wireless industry and can pose as threats to telecom behemoth Verizon Communications Inc.’s (VZ - Free Report) customer base.
Effective May 31, 2017, T-Mobile US, the third U.S. mobile network operator, has offered to pay the full balance of Verizon customers' (carrying the Google Pixel or Apple’s iPhone 6, SE, 6S or 7) phone leases — up to $1,000 — if they switch to its network.
Apart from monetary benefits, customers availing the switch-over will receive a digital prepaid MasterCard within 15 days and can continue using their existing device and the same phone number. Customers are advised to insure their phones with T-Mobile’s Premium Device Protection Plus, an insurance offering that costs $15 a month.
Similarly, the offer is open to AT&T Inc. (T - Free Report) and Sprint Corp. (S - Free Report) customers. The company has not yet mentioned the last date of this offer.
Meanhwile, T-Mobile US CFO, Braxton Carter, noted that Sprint would be a logical merger partner as the industry continues to consolidate. “The combined company would have the ability and the resources to really put all of that spectrum to work for the benefits of consumers and businesses everywhere,” said Carter.
T-Mobile US has criticized Verizon’s LTE data speeds of slowing down 14% after it joined the unlimited war in the first quarter.
Bottom Line
This is one of T-Mobile US’ innovative network expansion methodologies which has always helped it to drive substantial consumer growth. Notably, in the last-reported first quarter of 2017, T-Mobile US added 1.142 million total net customers, marking the 16th successive quarter of over one million net customer additions. Several analysts estimate that the company has managed to gain customers from rivals – the other three major U.S. wireless carriers.
T-Mobile US continues to gain postpaid wireless customers. This has encouraged management to raise the subscriber gain outlook for 2016, owing to the success of its Un-carrier initiatives and aggressive promotional activities. As of Mar 31, 2017, the total customer base of T-Mobile US was 72.597 million, up 10.8% year over year.
Backed by impressive subscriber additions, the company raised its outlook for 2017. T-Mobile US anticipates adjusted EBITDA in the range of $10.4–$10.8 billion. Capital expenditure will likely be in the range of $4.8–$5.1 billion. It projects branded postpaid net customer addition to fall in the range of 2.8–3.5 million compared with the previous guidance of 2.4–3.4 million.
The company has increased its top line by adding customers. However, this has happened at the cost of huge costs incurred to gain customers and improve revenues.
Price Performance and Zacks Rank
Over the past three months, share price of T-Mobile US has inched up 9.26% while that of Verizon Communications has gone down 9.81% compared with the Zacks-categorized Wireless National industry’s 7.19% fall.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
T-Mobile US' (TMUS) Latest Offer Poised to Threat Verizon
U.S. national wireless carrier T-Mobile US Inc.’s (TMUS - Free Report) latest promotional plans seem to have heated up the nation’s wireless industry and can pose as threats to telecom behemoth Verizon Communications Inc.’s (VZ - Free Report) customer base.
Effective May 31, 2017, T-Mobile US, the third U.S. mobile network operator, has offered to pay the full balance of Verizon customers' (carrying the Google Pixel or Apple’s iPhone 6, SE, 6S or 7) phone leases — up to $1,000 — if they switch to its network.
Apart from monetary benefits, customers availing the switch-over will receive a digital prepaid MasterCard within 15 days and can continue using their existing device and the same phone number. Customers are advised to insure their phones with T-Mobile’s Premium Device Protection Plus, an insurance offering that costs $15 a month.
Similarly, the offer is open to AT&T Inc. (T - Free Report) and Sprint Corp. (S - Free Report) customers. The company has not yet mentioned the last date of this offer.
Meanhwile, T-Mobile US CFO, Braxton Carter, noted that Sprint would be a logical merger partner as the industry continues to consolidate. “The combined company would have the ability and the resources to really put all of that spectrum to work for the benefits of consumers and businesses everywhere,” said Carter.
T-Mobile US has criticized Verizon’s LTE data speeds of slowing down 14% after it joined the unlimited war in the first quarter.
Bottom Line
This is one of T-Mobile US’ innovative network expansion methodologies which has always helped it to drive substantial consumer growth. Notably, in the last-reported first quarter of 2017, T-Mobile US added 1.142 million total net customers, marking the 16th successive quarter of over one million net customer additions. Several analysts estimate that the company has managed to gain customers from rivals – the other three major U.S. wireless carriers.
T-Mobile US continues to gain postpaid wireless customers. This has encouraged management to raise the subscriber gain outlook for 2016, owing to the success of its Un-carrier initiatives and aggressive promotional activities. As of Mar 31, 2017, the total customer base of T-Mobile US was 72.597 million, up 10.8% year over year.
Backed by impressive subscriber additions, the company raised its outlook for 2017. T-Mobile US anticipates adjusted EBITDA in the range of $10.4–$10.8 billion. Capital expenditure will likely be in the range of $4.8–$5.1 billion. It projects branded postpaid net customer addition to fall in the range of 2.8–3.5 million compared with the previous guidance of 2.4–3.4 million.
The company has increased its top line by adding customers. However, this has happened at the cost of huge costs incurred to gain customers and improve revenues.
Price Performance and Zacks Rank
Over the past three months, share price of T-Mobile US has inched up 9.26% while that of Verizon Communications has gone down 9.81% compared with the Zacks-categorized Wireless National industry’s 7.19% fall.
Both T-Mobile US and Verizon currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>