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T-Mobile to Transform El Paso With Unmatched Connectivity

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T-Mobile US, Inc. (TMUS - Free Report) recently announced that it was selected by the federal government of the City of El Paso, TX, to provide 1,350 voice and data lines for city employees deployed across 26 city departments. The strategic move is likely to transform the mobile connectivity of the public sector citizens with an unrivalled cost-effective plan, backed by a robust 4G LTE network and an improved customer care division.

El Paso is positioned along the U.S.-Mexico border. Consequently, mobile subscribers have to shift to different wireless plans and bear additional roaming call charges when they travel across the border cities. With the adoption of T-Mobile’s services, subscribers would not have to worry about any hidden charges or bear additional costs thanks to its Mobile Without Borders plan, which offers unlimited talk, text and data in Mexico and Canada. Estimates reveal that this would enable the city taxpayers who frequently travel across the border cities to reduce wireless costs by as much as 20%.

T-Mobile was selected as the preferred mobile communication partner by the federal government after putting it through rigorous testing procedures by several city departments to evaluate the network performance under various loads. Based on the feedback of various city departments that use specialized mobile apps, the company trumped all the evaluation parameters and gained brownie points for its on-site support and real-time customer service.

T-Mobile's network is reportedly the fastest 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. The company plans to use its 600 MHz spectrum holdings to deploy America’s first nationwide 5G network expected by 2020. Further, 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.

Backed by impressive subscriber additions and mounting performance, T-Mobile has outperformed the industry in the past six months with an average return of 6.8% compared with 0.9% 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 currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the industry are Aquantia Corp. , Telenav, Inc. and Windstream Holdings, Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Aquantia delivered an average positive earnings surprise of 50% in the trailing four quarters.

Telenav has a long-term earnings growth expectation of 25%. It delivered an average positive earnings surprise of 3.7% in the trailing four quarters.

Windstream Holdings delivered an average positive earnings surprise of 23.5% in the trailing four quarters.

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