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T-Mobile Leapfrogs Competition With Its Mid-Band 5G Spectrum

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T-Mobile US, Inc. (TMUS - Free Report) is bringing its mid-band 5G spectrum (2.5 GHz) in parts of 81 additional cities and towns for customers who want to experience up to gigabit-per-second peak 5G speeds. With this move, the wireless operator’s much-appreciated 5G network goes live in almost 90 cities and towns across the country.

The Bellevue, WA-headquartered company plans to continue lighting up this 5G spectrum at an aggressive pace through 2020 and beyond. Reportedly, T-Mobile has almost twice as much low- and mid-band spectrum as AT&T (T - Free Report) and triple as that of Verizon (VZ - Free Report) . The company has the largest nationwide 5G network, covering more than 250 million people across 1.3 million square miles.

In June, T-Mobile achieved a significant milestone by offering 5G services across all 50 states in the country. In many places, mid-band 5G average download speeds are around 300 Mbps with peak speeds approaching 1 Gbps. T-Mobile’s 2.5 GHz 5G delivers super-fast speeds and extensive coverage with signals that go through walls and trees, unlike 5G networks that are controlled by the mmWave spectrum.

On Apr 1, T-Mobile completed its merger with Sprint to create a new wireless entity. Following this, it deployed mid-band 5G in Philadelphia and New York City. Subsequently, the service was launched in Atlanta, Chicago, Dallas, Houston, Los Angeles and Washington DC. The union enabled T-Mobile and Sprint to join their high- and low-band spectrum for a faster nationwide 5G rollout.

T-Mobile is confident in 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. T-Mobile’s commitment to building the world’s best nationwide 5G network will likely 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.

T-Mobile’s shares have returned 53.1% in the past year compared with 6.9% growth of the industry.

The company has a long-term (3 to 5 years) earnings growth expectation of 12.3% compared with the industry’s 8.4%. It has a trailing four-quarter earnings surprise of 125.5%, on average.

T-Mobile carries a Zacks Rank #3 (Hold), at present.

A better-ranked stock in the broader industry is Qorvo, Inc. (QRVO - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Qorvo has a trailing four-quarter earnings surprise of 20%, on average.

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