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T-Mobile US, Inc. (TMUS)

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  • Fri, Jun. 26, 5:46 PM
    • Sprint (S -1.3%) chief Marcelo Claure has become the highest-paid CEO among U.S. telecoms, the Financial Times notes, having earned $22M for just under eight months of work.
    • Randall Stephenson of AT&T (NYSE:T) earned $24M last year -- but for a full year's work. Lowell McAdam of Verizon (NYSE:VZ) earned $18M last year, and T-Mobile's (NYSE:TMUS) John Legere $19M.
    • For the period between his Aug. 11 start date and March 31, Claure earned a base of $923K, a bonus of $2.4M (including a $500K "golden hello"), and $18M in stock and options. During that time, Sprint's stock price has fallen 16.4%.
    • A Sprint spokesman pointed to the difficulty of making apples-to-apples comparisons with other CEOs, considering one-time payments like the signing bonus.
    • Sprint's 14A filing
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  • Thu, Jun. 25, 7:04 PM
    • While FCC Chairman Tom Wheeler signaled today that the agency wouldn't bow to demands for greater spectrum set-asides for competitors to AT&T (NYSE:T) and Verizon (NYSE:VZ), the Justice Dept. sent a letter urging the FCC to think about moves to spread the spectrum, including a greater set-aside.
    • William Baer with the DOJ's antitrust division asked the FCC to consider “the well-established competition principle that those with market power may be willing to pay the most to reinforce a leading position.”
    • In a low-band "broadcast incentive" auction coming next year, the FCC has proposed setting aside 30 MHz per market for competitors other than the two telecom leaders, like Sprint (NYSE:S) and T-Mobile (NYSE:TMUS). T-Mobile has been vocal about pushing for a 40 MHz reserve and is hopeful that Baer's letter means it still may happen: “There would be no point in writing the letter if they didn’t want the FCC to take another look," says T-Mobile's Andy Levin.
    • More FCC auction coverage
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  • Thu, Jun. 25, 5:07 PM
    • T-Mobile (TMUS +0.7%) today kicked off another "Un-carrier" push by expanding on its Jump early-upgrade system, essentially making a phone leasing plan that would attract customers who want to upgrade phones up to three times a year.
    • That's up from twice a year in the existing Jump plan, which has terms considered consumer-friendliest in the industry. And the new "Jump! On Demand" plan does away with Jump's $10/month fee but makes handset insurance an $8/month add-on.
    • More than 10M of T-Mobile's 57M customers have opted into the existing Jump plan, though T-Mobile thinks its customers (and the industry overall) is moving toward frequent upgraders.
    • Half of Americans want to upgrade more frequently, says T-Mobile CMO Andrew Sherrard, "but their carrier or the cost of doing it gets in their way."
    • Aside from the consumer-benefit angle, it will circulate phones more frequently through T-Mobile's inventory, which can be used for warranty replacements or sold at a discount.
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  • Thu, Jun. 25, 2:35 PM
    • FCC Chairman Tom Wheeler says that he is circulating a draft with changes to the spectrum bidding procedures ahead of an open meeting designed to "revamp our outdated spectrum auction bidding policies" and help small businesses in the mobile marketplace.
    • Notably, he proposes a first-ever cap on total bidding credits, reducing an incentive for large corporations to game the system: "We will not allow small businesses to serve as a stalking horse for another party." (Dish Network (NASDAQ:DISH) was loudly criticized by rivals after using designated entities to bid for $13.3B in spectrum with a $10B payment; AT&T (NYSE:T) had proposed a much smaller cap of $10M.)
    • And he's sticking to the previous 30 MHz set-aside for smaller firms, though key "smaller firms" like Sprint (NYSE:S) and T-Mobile (NYSE:TMUS) had pressed for a larger set-aside of as much as 40 MHz (in T-Mobile's case, with an aggressive media campaign).
    • He also recommends dropping a requirement for small businesses to offer facilities-based wireless in order to qualify for bidding credits, and to create a new rural business bidding credit.
    • More FCC auction coverage
    | 1 Comment
  • Tue, Jun. 23, 3:43 PM
    • T-Mobile (TMUS +0.9%) is keeping up the (spectrum) pressure, asking the FCC to block a low-band spectrum purchase by AT&T (T +2.9%) from East Kentucky Network, using the agency's "public-interest" mandate.
    • AT&T, it said, had failed to meet "applicable heightened standards for demonstrating that the proposed transaction is in the public interest when balanced with the serious anticompetitive risks posed by the increased concentration of below-1-GHz spectrum."
    • Keeping up a multi-front attack, T-Mobile's also teasing a new set of Un-carrier updates -- "Un-carrier Amped" -- starting this Thursday.
    • Meanwhile, it's also made a literally comical new video in its fight over spectrum set-asides, portraying the company and the "FCC Five" as superheroes trying to defeat a villainous duopoly.
    • Previously: Bloomberg: FCC Chairman urging rejection of T-Mobile spectrum appeal (Jun. 17 2015)
    | 5 Comments
  • Mon, Jun. 22, 7:26 PM
    • Along with T-Mobile (NYSE:TMUS) working to shut down legacy AWS networks, an end came to a MetroPCS era as TMUS shuttered the last of its 2013 acquisition's CDMA network in New York, Dallas and Miami.
    • The company's been incentivizing customers to switch as it closed other cities' networks, and had a dead-end contingent of 190K customers on the remaining nets it just shut down.
    • That's down from about 300K a month ago, and some may yet upgrade with T-Mobile as they lose service. The company got a 92% uptake rate from MetroPCS shutdowns last year.
    • The closure of the MetroPCS networks has cost $375M-$475M -- but that spectrum is being integrated into T-Mobile's LTE network to increase capacity.
    | 1 Comment
  • Fri, Jun. 19, 7:31 PM
    • T-Mobile (NYSE:TMUS) is heading into the meaty part of a schedule for shutting down their AWS 3G/4G networks in many cities, as their LTE buildout continues and they want to recycle the older nets.
    • Chicago was scheduled for HSPA+ turnoff yesterday; Houston is due July 15, and Los Angeles July 22, with many cities to follow throughout the summer.
    • No effect is likely to be felt by most customers, who have LTE-capable smartphones, but some customers will be affected and urged to upgrade via a promotion for free or at a discount.
    • While some customers with older phones will be affected, the result of the shutoff will be clearing airwaves space to improve performance on the faster network.
    | 6 Comments
  • Fri, Jun. 19, 12:01 PM
    • Sprint (S +0.3%) is taking its "cut your bill in half" strategy to prepaid, with a new promotion at its Boost Mobile unit targeting customers of Cricket (NYSE:T) and MetroPCS (TMUS -0.5%).
    • The plan is targeting halving customers' bills, for an initial 12 months, across a variety of prepaid plans. Comparing with Cricket's $40/2.5 Gb of high-speed data and MetroPCS's $40/2 Gb, Boost is offering 2.5 Gb for $20/month.
    • After 12 months, customers would then migrate to the comparable regular Boost plan (In the case of 2 Gb, for $30/month if signing up for automatic payment).
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  • Wed, Jun. 17, 5:48 PM
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  • Wed, Jun. 17, 3:45 PM
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  • Wed, Jun. 17, 8:48 AM
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  • Fri, Jun. 12, 5:19 PM
    • Today in telecom consolidation speculation: While Dish Network (NASDAQ:DISH) and T-Mobile (NYSE:TMUS) have been talking about a deal with upsides for both (and shareholders have driven DISH up 2.6%, TMUS up 1.8% since word broke June 3), they aren't each other's only option.
    • And much of what transpires there depends on T-Mo parent Deutsche Telekom (OTCQX:DTEGY) and what it wants to do with an asset that can command top dollar as perhaps the last attainable big U.S. cell provider.
    • “They’re obviously controlled by a German company who has strategic initiatives, both in Europe and the United States, and they may not be in a position where they want to do anything," Dish chief Charlie Ergen said in a Bloomberg TV interview.
    • From Dish's perspective: It doesn't need to rush, as it's making free cash flow and has time to sit on its large spectrum stockpiles yet. Ergen could look for a sale to Verizon (NYSE:VZ), or break the spectrum off into a separate company with a sale-leaseback. In any case, many deals that seemed well under way have been kiboshed by the mercurial Ergen.
    • Fron T-Mobile's: Deutsche Telekom is reportedly worried about an overvalued Dish and getting too much of that stock. T-Mobile could probably command $49/share in a sale, or a 25% premium, says Gabelli's Sergey Dluzhevskiy. One company that wouldn't blink at that price would be Comcast (NASDAQ:CMCSA) in its own quad-play grab.
    • Altice (OTC:ATCEY), which considered a run at Time Warner Cable (NYSE:TWC), could be a long-shot for T-Mobile, or even Charter (NASDAQ:CHTR). And with AT&T expanding in Mexico, how interesting would it be if América Móvil (NYSE:AMX) pumped up its U.S. presence with Big Magenta?
    | 6 Comments
  • Thu, Jun. 11, 5:45 PM
    • Dish Network (NASDAQ:DISH) is talking to banks about funding a bid to acquire T-Mobile (NYSE:TMUS), to the tune of $10B-$15B in borrowing for the cash part of the deal, The Wall Street Journal is reporting.
    • T-Mobile is up 3.6% after hours; Dish is up 1.7%.
    • The deal's in early stages, but as discussed, the stock portion would leave T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) with a significant minority stake in the combo.
    • No word on how much Dish would pay for T-Mobile, but talking with banks shows it's moving forward.
    • In the previous discussions, one key issue already seems sorted out among the personality-laden leaders: Dish CEO Charlie Ergen would serve as chairman, while T-Mobile's John Legere would be CEO.
    | 12 Comments
  • Thu, Jun. 11, 5:18 PM
    • With just hours to go before the FCC was to begin enforcement of new net neutrality rules, a federal appeals court has declined to stay them in a blow to telecom firms that hoped to block them while litigation plays out.
    • The rules are set to go into effect tomorrow. The plaintiffs argue that they do not object to some of the regulations, like bans on blocking/throttling and paid prioritization, but they are fighting vigorously against Title II classification, which would mean regulating broadband as a tightly controlled telecom service.
    • Represented/related companies: VZ, TMUS, S, CMCSA, CHTR, TWC, CVC, CTL, FTR, CCOI, DISH, DTV
    • Previous coverage on net neutrality
    | 32 Comments
  • Tue, Jun. 9, 9:33 AM
    • With merger talks ongoing between T-Mobile (NYSE:TMUS) and Dish Network (NASDAQ:DISH), Timotheus Höttges, CEO of Deutsche Telekom (OTCQX:DTEGY) -- T-Mobile's controlling shareholder -- is reportedly more interested in merging T-Mobile spectrum (TMUS -1.2%) with Sprint's (S +1.1%) than in the Dish combo, The New York Post reports.
    • The stance is centered in the idea of creating a valuable combination that would be more appealing for a sale to Comcast (NASDAQ:CMCSA), sources told the paper. Adding Dish Network to T-Mobile makes more sense in the future, but it would kill the chance of a sale to Comcast on regulatory concerns, the sources paraphrased Höttges as saying.
    • There's no word on how he feels about regulatory resistance to combining with Sprint (which reportedly killed such a merger last year).
    • He reportedly told investors at last week's RBC Capital Markets road show that the Sprint combination would create huge value in teaming up when the broadcast incentive spectrum auction begins in early 2016. Sprint and Dish Network both have swaths of spectrum that would help T-Mobile fill in gaps.
    • Previously: Telecom consolidation game may force Sprint's hand (Jun. 05 2015)
    • Previously: Dish Network, T-Mobile up on report of merger talk; Sprint slips (Jun. 04 2015)
    | 27 Comments
  • Fri, Jun. 5, 5:39 PM
    • The current wisdom holds that Dish Network (NASDAQ:DISH) and T-Mobile's (NYSE:TMUS) combination bid might have a relatively easy time with regulators, and it shouldn't face debt problems either, says one analyst.
    • “Dish bond covenants are very loose,” says Covenant Review analyst Scott Josefsberg, and the satellite provider would have “wide latitude to structure a transaction." Meanwhile, T-Mobile covenants allow for the firm to issue at least $10B more in debt. Dish Network has an enterprise value of $45.8B; T-Mobile's is $52.9B.
    • Meanwhile, Citigroup's Michael Rollins says the other option is clear for spectrum-rich Dish: Sell itself to Verizon (NYSE:VZ).
    • He thinks that's the likely outcome for a number of reasons, including the need for Verizon to keep up with AT&T/DirecTV, the spectrum shortage that Verizon currently faces heading into next year's incentive auction, and the chance for Dish to make a shift to IP video to "dramatically" increase magnitude and duration of video cash flows.
    • He has Dish and T-Mobile rated at Buy and raised T-Mobile's price target to $46, while maintaining Dish's target at $94. Today: DISH +1.7% to $75.51; TMUS +2.3% to $40.24; VZ -1.8% to $47.25.
    | 6 Comments
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Company Description
T-Mobile US Inc provideswireless communication servicesin the postpaid, prepaid, and wholesale markets.The Company's products and services includevoice, messaging, data services,wireless devices, smartphones and other mobile communication devices.