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T-Mobile (TMUS) to Enhance Alaska Airlines' Connectivity
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T-Mobile US, Inc. (TMUS - Free Report) recently secured a contract from Alaska Air Group, Inc. (ALK - Free Report) for an undisclosed amount to become the preferred wireless provider of Alaska Airlines. The collaboration is likely to improve the seamless travel experience for air passengers with unmatched network connectivity of the Un-Carrier across the country.
Based in Seattle, WA, Alaska Air Group, together with its partner regional carriers, serves more than 100 cities across North America. Per the agreement, Alaska Airlines will migrate the majority of its mobility business, including data and voice lines to T-Mobile to leverage the uptick in demand for improved data connectivity. This, in turn, will likely ensure low latency high bandwidth services to optimize the air travel experience starting from ticketing to check-in, on-time departures, arrivals and baggage tracking.
In addition, T-Mobile’s sprawling nationwide network coverage will enable Alaska Airlines to tap Advanced Network Services offerings, such as Multi-Access Edge Computing (MEC) and Private Networks, to augment customer satisfaction. MEC services offer seamless cellular coverage along with better capabilities to manage cellular traffic through virtual network functions and help to process huge data locally, securely and quickly. This data can be effectively utilized to provide ground and flight crews with timely information for swift aircraft turnaround times and streamlined operations for a better passenger experience.
T-Mobile’s Ultra Capacity 5G presently covers 200 million people, while its Extended Range 5G covers 308 million users across 1.7 million square miles. The Ultra Capacity 5G network is powered by the mid-band 2.5 GHz spectrum. The mid-band spectrum of T-Mobile delivers superfast speed averaging around 300 Mbps with a 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.
While other wireless players focus on the millimeter wave, T-Mobile continues to execute a multi-band spectrum strategy of using low-band Extended Range to cover the country and Ultra Capacity to bring fast 5G speeds to the maximum number of people. The company’s network has 14 times more capacity after its merger with Sprint than on a standalone basis, enabling it to leapfrog the competition in network capability and customer experience. Perhaps this has been one of the major contributing factors behind its selection as the preferred wireless provider of Alaska Airlines.
The stock has lost 13% in the past year compared with the industry’s decline of 17.1%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 139.6%.
Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 6.2%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
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T-Mobile (TMUS) to Enhance Alaska Airlines' Connectivity
T-Mobile US, Inc. (TMUS - Free Report) recently secured a contract from Alaska Air Group, Inc. (ALK - Free Report) for an undisclosed amount to become the preferred wireless provider of Alaska Airlines. The collaboration is likely to improve the seamless travel experience for air passengers with unmatched network connectivity of the Un-Carrier across the country.
Based in Seattle, WA, Alaska Air Group, together with its partner regional carriers, serves more than 100 cities across North America. Per the agreement, Alaska Airlines will migrate the majority of its mobility business, including data and voice lines to T-Mobile to leverage the uptick in demand for improved data connectivity. This, in turn, will likely ensure low latency high bandwidth services to optimize the air travel experience starting from ticketing to check-in, on-time departures, arrivals and baggage tracking.
In addition, T-Mobile’s sprawling nationwide network coverage will enable Alaska Airlines to tap Advanced Network Services offerings, such as Multi-Access Edge Computing (MEC) and Private Networks, to augment customer satisfaction. MEC services offer seamless cellular coverage along with better capabilities to manage cellular traffic through virtual network functions and help to process huge data locally, securely and quickly. This data can be effectively utilized to provide ground and flight crews with timely information for swift aircraft turnaround times and streamlined operations for a better passenger experience.
T-Mobile’s Ultra Capacity 5G presently covers 200 million people, while its Extended Range 5G covers 308 million users across 1.7 million square miles. The Ultra Capacity 5G network is powered by the mid-band 2.5 GHz spectrum. The mid-band spectrum of T-Mobile delivers superfast speed averaging around 300 Mbps with a 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.
While other wireless players focus on the millimeter wave, T-Mobile continues to execute a multi-band spectrum strategy of using low-band Extended Range to cover the country and Ultra Capacity to bring fast 5G speeds to the maximum number of people. The company’s network has 14 times more capacity after its merger with Sprint than on a standalone basis, enabling it to leapfrog the competition in network capability and customer experience. Perhaps this has been one of the major contributing factors behind its selection as the preferred wireless provider of Alaska Airlines.
The stock has lost 13% in the past year compared with the industry’s decline of 17.1%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
A better-ranked stock in the broader industry is Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield delivered an earnings surprise of 50.8%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 68.2% since January 2021. Over the past year, Clearfield has gained a solid 139.6%.
Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 34.2%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 6.2%. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.