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T-Mobile (TMUS) Extends Network Service Agreement With DISH

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T-Mobile US, Inc. (TMUS - Free Report) has extended its Master Network Service Agreement with DISH Network Corporation (DISH - Free Report) to offer better 5G network services to the latter. The renewed terms of the deal include a multi-billion dollar commitment from DISH for improved network connectivity. Therefore, it is likely to be a win-win deal for both firms.

The amended deal is required to be ratified by the United States Department of Justice by Aug 14, 2022, to come into force. If approved, the contract will pave the way for improved 5G roaming facilities for DISH customers leveraging the superior network coverage of T-Mobile. As the nation’s fourth wireless carrier, this will enable DISH to offer competitive services across its retail wireless brands, including Boost Mobile. On the other hand, T-Mobile is likely to benefit from an annual minimum revenue commitment from DISH through the remaining term of the Master Network Service Agreement.

Last month, T-Mobile launched a suite of supercharged, managed network solutions dubbed 5G Advanced Network Solutions (ANS) in a concerted effort to help business enterprises unlock key insights from massive data troves. The company has collaborated with leading communication equipment vendors like Nokia Corporation (NOK - Free Report) and Ericsson (ERIC - Free Report) in this endeavor to offer superfast 5G connectivity that reduces latency by 50%.

Leveraging its industry-leading 5G network and spectrum for ANS, T-Mobile aims to provide three distinct 5G advanced network options for business enterprises that break away from the one-size-fits-all, costly and complex 5G Private Networks. These include Public Mobile Network, a Hybrid Mobile Network and a Private Mobile Network with the choice to add compute to each option or use one’s own compute provider.

The T-Mobile Public Network offers a faster download speed compared to legacy networks. This high-speed lower latency network utilizes such a path trajectory that data needs to travel less distance from the device to the compute resource and back. The Hybrid Mobile Network is comparatively faster than the Public Network and is ideal for immersive VR training, computer vision and inspections and other data-intensive applications. The Private Mobile Network is the fastest of the lot and is mostly needed for demanding applications, like industrial automation in a factory or fully autonomous robots.

In order to realize the network speeds of ANS, T-Mobile intends to utilize Nokia’s Digital Automation Cloud Private Network solution and related equipment. It also seeks to offer superfast 5G network connectivity by leveraging ERIC’s communications equipment.

With the help of such state-of-the-art equipment and an extensive 5G network of its own, T-Mobile aims to seamlessly transfer 5G data to business enterprises and strengthen its position as a leading service provider in the country. The extended network service agreement with DISH will further boost the company's top-line growth.

The stock has lost 9.7% over the past year against the industry’s decline of 17.8%.

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