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T-Mobile (TMUS) Launches Voice Over 5G in Selected Areas

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T-Mobile US, Inc. (TMUS - Free Report) has launched commercial Voice over 5G service in limited areas of Portland, OR and Salt Lake City to offer a holistic 5G experience to customers as it aims to gradually roll out this service in additional parts of the country later this year. With this, the company has managed to leapfrog competition with an unrivaled industry-leading nationwide Standalone (SA) 5G network.

Until now, 5G networks were mostly deployed in Non-standalone (NSA) mode, whereby 5G network availability depended on the underlying LTE network for signaling support. The SA 5G NR software eliminates this 4G dependency by enabling carriers to augment their network capabilities with a simpler architecture. Moreover, it improves network speed and simplifies mobility management with seamless access to wide 5G bands for a better user experience.

With Voice over 5G service, T-Mobile will be able to offer seamless 5G connectivity with faster voice calling facilities and less delay between the time one dials a number and when the phone starts ringing. In addition, it will provide advanced capabilities for immersive app experiences by leveraging the full bandwidth, latency and density benefits of the SA network.

T-Mobile has achieved this feat with successful collaboration with leading communication equipment vendors like Nokia Corporation (NOK - Free Report) and Ericsson (ERIC - Free Report) . It has utilized Nokia’s radio, core solutions and related equipment to power the SA network. Nokia is driving the transition of global enterprises into smart virtual networks by creating a single network for all services, converging mobile and fixed broadband, IP routing and optical networks with the software and services to manage them. It is transforming the way people and things communicate and connect with each other through a seamless transition to 5G technology, ultra-broadband access, IP and Software Defined Networking, cloud applications and IoT.

T-Mobile has also utilized ERIC’s communications equipment to deploy the Voice over 5G service. Ericsson is focusing on 5G system development and has undertaken many notable endeavors to position itself for market leadership on 5G. The company believes that the standardization of 5G is the cornerstone for digitizing industries and broadband. Ericsson foresees mainstream 4G offerings giving way to 5G technology in the future. The deployment of 5G networks is expected to boost the adoption of IoT devices, with technologies like network slicing gaining more prominence. The company is reportedly the world’s largest supplier of LTE technology with a significant market share and has established a large number of LTE networks worldwide.

With the help of such state-of-the-art equipment and an extensive 5G network of its own, T-Mobile aims to position itself as the leading service provider in the country. Its Extended Range 5G currently covers 315 million people across 1.8 million square miles. The company covers about 225 million people nationwide with superfast Ultra Capacity 5G and intends to extend it to 260 million in 2022 and 300 million next year.

The stock has lost 4.8% over the past year against the industry’s decline of 15.8%. We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.

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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 37.5%, on average, in the trailing four quarters. Earnings estimates for the current year for the stock have moved up 114.7% since Jun 2021. Over the past year, Clearfield has gained a solid 62.4%.


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