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T-Mobile & Sprint Unveil Location of New Support Center

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T-Mobile US, Inc. (TMUS - Free Report) and Sprint Corporation (S - Free Report) recently unveiled the location of the fourth Customer Experience Center (CEC), post their proposed merger. The facility, to be built in New York’s Nassau County, is expected to create about 1,000 local direct jobs with several benefits such as healthcare, stock grants, college tuition assistance, childcare subsidy, and paid parental leave. The state-of-the-art facility will also promote employment opportunities in areas such as construction.

T-Mobile’s new investment in Nassau County CEC will join the league of previously announced CEC locations — Overland Park, KS, Rochester, NY, and Kingsburg, CA. The company has also stated that it will leverage the support of union tradespeople, in collaboration with the Building and Construction Trades Council of Nassau & Suffolk Counties, for the construction of two New T-Mobile CECs in New York.

In order to deliver high-quality services, the newly announced CEC will also provide personalized support to customers with its innovative approach of Team of Experts (TEX) to maintain healthy and better customer relationships. Through this approach, customers can have direct access to specialists, where the TEX can work in conjunction with local retail and engineering teams to address diverse issues and tackle complex challenges in broader geographic areas. T-Mobile has also ensured that no tax incentives from government or economic development bodies will be utilized to operate the state-of-the-art facility.

The step is considered to be vital for the development of Nassau County. Moreover, it will provide an opportunity for T-Mobile to invest significantly in job creation and infrastructure in the United States. Other investments include the development of nationwide 5G network, which will result in intense competition and offer new preferences to customers like broadband, and opening new stores to an expanding customer base. T-Mobile also stated that its plans for new and expanded CECs will not only create 5,600 new American jobs by 2021, but it will have 7,500 more customer care professionals by 2024 than the two standalone companies would ever have.

Current Market Scenario

After striving for more than a year, T-Mobile has finally received clearance from Department of Justice and Federal Communications Commission for its merger with Sprint. The deal is likely to accelerate development of faster 5G wireless networks. Amidst several controversies, the combined company — New T-Mobile — will have about 127 million customers, a strong closing balance sheet and a fully funded business plan. It represents a total implied enterprise value of about $146 billion. T-Mobile’s innovative network expansion methodologies continue to be faster and technologically sounder, in an attempt to stay ahead of competitors. The U.S. wireless carrier’s network has been the fastest network in America in both download and upload speeds.

Markedly, the combination of the two networks would help to fill coverage gaps, create more jobs and provide enhanced 5G connectivity, leading the company to build new 5G infrastructure. The merged company would roll out 5G technology to 97% Americans, including 85% of rural locales. But the state litigators are concerned about competition in the greater telecom space, even as officials from each of the companies said the deal will keep a cap on prices for three years.

T-Mobile and Sprint have long-term earnings growth expectation of 12.4% and 19.6%, respectively. T-Mobile’s shares have gained 11.1% compared with the industry’s growth of 9.9% in the past year. Sprint’s shares have lost 7% in the same period.

Zacks Rank & Stocks to Consider

T-Mobile and Sprint currently carry a Zacks Rank #3 (Hold).

A couple of top-ranked stocks in the industry are Gogo Inc. (GOGO - Free Report) and Verizon Communications Inc. (VZ - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gogo surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 39.1%.

Verizon outpaced estimates in each of the preceding four quarters, the average positive earnings surprise being 2.2%.

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