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T-Mobile (TMUS) Extends 5G Home Internet Across Several States

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T-Mobile US, Inc. (TMUS - Free Report) recently augmented its 5G footprint in the country by introducing 5G Home Internet services in five states, namely Colorado, Iowa, Kansas, Missouri and Oklahoma. The expansion will enable the company to offer the service to nearly 5 million additional homes in 81 more cities and towns across the five states.

The Home Internet service offers fast, affordable home broadband connectivity through a 5G Gateway device, which combines the capabilities of a router and a modem. The Gateway device then converts the 5G signal to Wi-Fi, which is accessible by all the devices in the home. It neither has any data caps nor charges any equipment fee for the Gateway device and is priced at a flat rate of $50 per month with AutoPay. Customers can even avail the service at $30 per month with Magenta MAX, T-Mobile’s most popular phone plan. It also requires no annual service contract and consequently does not have any early termination fees for discontinuation of service.

Following its merger with Sprint, T-Mobile boasts an unrivaled bouquet of high- and low-band spectrum for a faster nationwide 5G rollout, undeniably disrupting the competitive landscape of the U.S. telecom market. To its credit, T-Mobile has the largest nationwide 5G network, covering more than 250 million people across 1.3 million square miles. The company is further strengthening its mid-band coverage by adding more towers and spectrum in places that already have 5G network connectivity.

T-Mobile is confident of 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 from its merger with Sprint. T-Mobile’s commitment to building the world’s best nationwide 5G network is likely to 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.

The company intends to offer the same services at a discounted rate for three years. The revamped T-Mobile intends to compete for consumers at all price points. Customers, including prepaid and Lifeline, will have access to the same 5G network and services. The combined company’s network will have 14 times more capacity than on a standalone basis, which enables it to leapfrog the competition in network capability and customer experience. Moreover, T-Mobile launched its streaming TV service. The acquisition of Layer3 TV has boosted its streaming service. The company continues to leverage LTE network speeds and Layer3 TV’s technology to roll out a TV streaming service. Notably, offering such services has become a trend in the industry. T-Mobile's improved mobile plans, network performance, deployment of LTE-U technology and offering of attractive unlimited data are key factors behind the stellar performance.

Shares of the company have lost 8% in the past year compared with the industry’s decline of 16.4%.

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T-Mobile presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Sierra Wireless, Inc. carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 15% and delivered an earnings surprise of 223.7%, on average, in the trailing four quarters.

Over the past year, Sierra Wireless has gained 48.3%. Earnings estimates for the current year for the stock have moved up 616.7% since June 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.

Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2, is another key pick for investors. It has a long-term earnings growth expectation of 16.1% and delivered an earnings surprise of 12.2%, on average, in the trailing four quarters.

Earnings estimates for the current year for the stock have moved up 43.2% over the past year, while that for the next fiscal is up 48.6%. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.

TESSCO Technologies Incorporated , carrying a Zacks Rank #2, delivered an earnings surprise of 61.9%, on average, in the trailing four quarters. Earnings estimates for TESSCO for the current year have moved up 40.7% since May 2021.

TESSCO offers products to the industry’s top manufacturers in mobile communications, Wi-Fi, wireless backhaul and related products. With more than three decades of experience, it delivers complete end-to-end solutions to the wireless industry.


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