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T-Mobile (TMUS) Accentuates Multi-Band Spectrum Strategy

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T-Mobile US, Inc. (TMUS - Free Report) has successfully tested 5G standalone millimeter wave (mmWave) on its production network for faster download and upload speed. The first-of-its-kind test on the 5G network accentuates the Un-carrier’s multi-band spectrum strategy as it aims to reach a broader user base across the country.

5G mmWave refers to the radio spectrum between 24GHz and 100GHz. This range is referred to as high-band 5G and is best used in densely populated areas across shorter ranges. It delivers the fastest speed because it offers massive capacity, making it ideal for cutting-edge technology, such as autonomous vehicles. With ultra-low latency, the 5G mmWave band enables smart cities to support everything from Internet backhaul connectivity in vehicles to high-definition live security camera feeds.  

However, 5G mmWave signal doesn’t travel very well through obstacles and struggles to penetrate objects such as glass, walls, buildings and dense foliage. The signals also require a fiber backhaul and rely more heavily on line of sight for coverage. Consequently, most carriers like T-Mobile have implemented a multi-band spectrum strategy using low-band to achieve maximum coverage and mid-band and high-band to deliver faster broadband speeds.

The Un-carrier is now aiming to overcome this limitation by testing 5G mmWave on 5G standalone network for crowded areas like stadiums and fixed wireless service. Collaborating with Ericsson and Qualcomm Technologies, Inc., it aggregated eight channels of mmWave spectrum to reach download speeds of 4.3 Gbps and four channels on the uplink for an upload speed of above 420 Mbps.

The company’s 5G network covers more than 330 million people in the country. The Ultra Capacity 5G delivers superfast speeds, powering 5G smartphones and enabling innovators to deliver transformational 5G experiences, covering 300 million Americans. The company now intends to bring more competition to home broadband, especially in underserved rural markets.

Shares of the company have gained 8.1% in the past year against the industry’s decline of 0.6%.

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Zacks Rank & Key Picks

T-Mobile currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Comtech Telecommunications Corp. CMTL, presently carrying a Zacks Rank #2 (Buy), is a solid pick. Headquartered in Melville, NY, the company is a leading global provider of next-generation 911 emergency systems and secure wireless communications technologies to commercial and government customers.    

Comtech’s key satellite earth station modems incorporate forward error correction and bandwidth compression technologies, which enable its customers to optimize their satellite networks by either reducing their satellite transponder lease costs or increasing data.

Arista Networks, Inc. ANET, carrying a Zacks Rank #2 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architectures and enhance their cloud experiences. Arista has a long-term earnings growth expectation of 20.4% and delivered an earnings surprise of 12%, on average, in the trailing four quarters.

It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200- and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.

AudioCodes Ltd. AUDC currently carries a Zacks Rank #2. It has a long-term earnings growth expectation of 24.8% and delivered an earnings surprise of 14%, on average, in the trailing four quarters.

Headquartered in Lod, Israel, AudioCodes offers advanced communications software, products, and productivity solutions for the digital workplace. It provides a broad range of innovative products, solutions and services that are used by large multi-national enterprises and leading tier-1 operators around the world.


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