With a promise of delivering better services at lower prices, T-Mobile US, Inc. (TMUS - Free Report) recently announced that it has teamed up with online video-sharing platform — YouTube — to introduce two months of free YouTube premium services as part of its much-acclaimed “T-Mobile Tuesdays” rewards program. The strategic partnership highlights the wireless service provider’s efforts to address the upsurge in data demand, especially at a time when majority of the population is forced to work from the safety of their homes to avert exposure from the deadly coronavirus attack.
Joining the likes of Netflix, Inc. (NFLX - Free Report) content already offered by the firm, T-Mobile’s latest upgrade has been specifically designed for its Un-carrier customers. Un-carrier enables customers to enjoy a hassle-free experience with a streamlined data structure plan and seamless Internet connectivity. Markedly, YouTube Premium’s subscription service empowers users to watch ad-free videos and stream ad-free music service, which can be saved for offline viewing and listening as well. The subscribers are required to redeem the offer by May 1, post which they will be charged $11.99/month if they wish to continue the service. In addition, the telecom behemoth is also giving a free 4-week online course from Shaw Academy, which is an online education organization based in Dublin, Ireland.
The Bellevue, WA-based wireless carrier also revealed a new prepaid plan — T-Mobile Connect — that has been designed to benefit low-income Americans who cannot afford wireless communications services. Notably, the plan will be available nationwide post its merger completion with Sprint Corporation (S - Free Report) . The inexpensive data plan is equipped with numerous benefits, like a $15/month and $25/month plan, which include unlimited talk and text services with 2GB and 5GB of data, respectively. It also includes an offering called Annual Data Upgrade that will give an additional 500MB of monthly data, at no additional cost, for the next five years. Amid the coronavirus pandemic, these perks are likely to benefit T-Mobile users in the near term without compromising on the entertainment quotient.
T-Mobile has also been taking significant steps as the nation continues to deal with the adverse economic impact of the virus outbreak. Markedly, the Deutsche Telekom AG (DTEGY - Free Report) -backed company, which is in the process of completing its merger with Sprint, has secured the Federal Communications Commission’s (“FCC”) Special Temporary Authority to use additional spectrum in the 600 MHz Band to meet increased customer demand for broadband during this period of adversity. The FCC is essentially helping Americans to work from home, learn at home and connect remotely to health care professionals during this hour of crisis.
In addition to removing smartphone data caps for all customers with free calling services to severely impacted countries, T-Mobile plans to address accretive broadband requirements with Network Operations Centers that operate 24 hours a day, seven days a week to monitor network traffic. This includes calls to 911 and a technician workforce that can quickly respond to any issues. With seamless roaming access, T-Mobile has also taken necessary steps to ensure that schools and families connected to Sprint’s network have access to its expanded coverage. As a result, the FCC-backed temporary authority will help T-Mobile to better serve customers who are making adjustments to their daily lives by practicing social distancing, thereby controlling the rapid spread of COVID-19.
T-Mobile has a long-term earnings growth expectation of 18.1%. The company topped earnings estimates in the trailing four quarters, the beat being 19.5%, on average. Shares of T-Mobile have gained 4.7% against the industry’s decline of 12.4% in the past year.
The company currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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