T-Mobile US, Inc.NASDAQ
T-Mobile Momentum Remains: Accumulate Before Next Leg Higher
Alpha Gen Capital
Alpha Gen Capital
T-Mobile's Reinvigorated Brand And Momentum Accelerates
Alpha Gen Capital
Alpha Gen Capital
Yesterday, 2:02 PM
- The FCC split on party lines again today in adopting tough new privacy regulations on broadband Internet providers, rules that require an opt-in before sharing most customer data.
- That could present a problem growing advertising for big providers including Comcast (NASDAQ:CMCSA), Charter (NASDAQ:CHTR), AT&T (NYSE:T) and Verizon (NYSE:VZ).
- The vote passed 3-2 with strong dissents from the panel's two Republican commissioners. More public information (names, addresses) will be treated leniently, but providers will need to ask permission before sharing more sensitive data (like phone-tracked location, or sites visited and apps used).
- The new rules, while scaled back, have drawn heavy criticism from cable/telecom and advertising sectors, with companies that fret that the move will restructure the Internet's free-content approach.
- Other players: OTCPK:ATCEY, FTR, CTL, WIN, S, TMUS, CCOI
Wed, Oct. 26, 3:20 PM
- With AT&T beginning a long journey to acquire Time Warner, is T-Mobile (TMUS +0.7%) the next big acquisition target in the media/telecom space? Analysts are talking up the carrier's prospects after it logged another successful quarter.
- For its part, T-Mobile has been and still is "very interested" in strategic options, COO Mike Sievert says.
- "The takeout target over the next 12 months has got to be T-Mobile," says New Street Research's Spencer Kurn, noting potential suitors in Comcast (NASDAQ:CMCSA) -- which is exercising a clause with Verizon to launch MVNO service -- as well as Dish Network (NASDAQ:DISH) and America Movil (NYSE:AMX).
- Dish has a lot of spectrum but no wireless business -- and it's lost a potential buyer in AT&T, which now has its hands full with Time Warner, notes BTIG's Walt Piecyk.
- Rival Sprint (S -1.8%) could be a takeover target as well, as CEO Marcelo Claure noted "we've had a lot of bankers placing more calls than usual over the weekend" in yesterday's earnings call.
Mon, Oct. 24, 6:22 PM
- AT&T's deal to acquire Time Warner is "good for T-Mobile (TMUS +9.5%) in the short and medium term," says T-Mobile chief John Legere today, expecting a distraction at his blue whale of a nemesis while his underdog firm racks up new subscribers.
- T-Mobile today logged net adds of 851,000 subscribers in branded postpaid phones, while AT&T lost 268,000 this quarter. For its part, Verizon lost 36,000 net subs in branded postpaid phones. (Sprint, the No. 4 carrier, added 347,000.)
- The Time Warner deal is a "bold move. It's going to cause acceleration," Legere says, but noting that AT&T could get "further defocused" on the wireless business as it diversifies.
- The interesting question going forward: Will regulators have a fresh stance on a once-squelched merger of T-Mobile with Sprint (S +5.7%) now that AT&T is making a move toward becoming a telecom/media behemoth?
- T-Mobile stock hit a nine-year high today. Sprint reports earnings tomorrow before the bell.
- Previously: T-Mobile up 7.4% on subscriber boost, Q3 profit beat (Oct. 24 2016)
- Previously: T-Mobile US beats by $0.04, misses on revenue (Oct. 24 2016)
Mon, Oct. 24, 3:00 PM
Mon, Oct. 24, 11:55 AM
- T-Mobile (NASDAQ:TMUS) is up 7.4% and hitting new 52-week highs in the wake of Q3 earnings where it beat profit expectations and led the industry in subscriber additions again.
- The carrier posted 851,000 net adds in branded postpaid phones, along with 684,000 net adds in branded prepaid, leading the big four carriers in each of those categories, and cut branded postpaid phone churn another 14 basis points to 1.32%.
- Net income rose to $366M from a year-ago $138M, including after-tax spectrum gains of $122M. The after-tax impact of those gains on headline EPS of $0.42 was $0.15 per share.
- Adjusted EBITDA rose 38% to $2.63B, beating an expected $2.38B.
- It's raised its customer outlook again, boosting guidance for branded postpaid net adds in 2016 to 3.7M-3.9M, from previous 3.4M-3.8M, and it's raised and narrowed its forecast for EBITDA: $10.2B-$10.4B, above a previous $9.8B-$10.1B, and well above consensus for $9.76B.
- Press Release
Mon, Oct. 24, 7:36 AM
Sun, Oct. 23, 5:30 PM
Fri, Oct. 21, 10:29 AM
- T-Mobile (TMUS -0.5%) announces it's offering customers roaming service in Cuba, the latest telecom-related step in liberalization of trade with the island nation.
- T-Mobile has "more customers of Cuban descent than any other wireless company," says CEO John Legere -- 43.7% of Cuban-born wireless customers are T-Mobile customers, he says -- and the country has continually been one of the top requested additions to roaming on social media.
- Customers will be able to talk for $2.00/minute, send text and MMS for $0.50/msg (and receive for free), and use data for $2.00/MB.
- T-Mobile had enabled calls to Cuba from the U.S. in May.
- Earlier this week, AT&T enabled roaming service in Cuba, at higher prices.
Wed, Oct. 19, 11:24 AM
- T-Mobile (TMUS -1%) has settled with the FCC for $48M in a consent decree covering throttling ("de-prioritizing") on its unlimited data plans.
- The company wasn't forthcoming enough about what would happen to heavy data users, or when, the agency says. It received hundreds of complaints from subscribers to T-Mobile and prepaid service MetroPCS while it was investigating.
- Along with the fine amount, T-Mobile has agreed to notify customers when they get close to the threshold when their service might change, and to clearly disclose restrictions on its unlimited data plans in all of its ads, or to stop using the word "unlimited" in them.
- On the monetary side, unlimited plan customers will see at least $35.5M in benefits, including accessory discounts and extra data on added mobile Internet plans. And the company will put $5M into devices and service for students in low-income school districts, and pay a $7.5M civil penalty.
- "Good settlement with FCC today. T-Mobile believes more info is best for customers," tweeted CEO John Legere, adding "Glad we could help schools with this solution as well."
Mon, Oct. 10, 2:31 AM
- Samsung Electronics (OTC:SSNLF) has suspended production of its Galaxy Note 7 following reports of fires in replacement devices, South Korean media said Monday, a further setback for the tech giant in the midst of its worst ever phone recall crisis.
- The decision came after major mobile carriers in the U.S., including AT&T (NYSE:T) and T-Mobile (NASDAQ:TMUS), said they would stop issuing Note 7 devices over safety concerns.
Wed, Oct. 5, 11:05 AM
- An outage that hit a number of telecoms yesterday was tied to a technical issue at Level 3 Communications (LVLT -0.3%).
- A configuration error caused downtime for several of its customers, the company acknowledged, but it didn't say which customers or for how long.
- Meanwhile, reports had circulated about outages hitting the big four wireless providers (T, VZ, TMUS, S) as well as Comcast (NASDAQ:CMCSA). Problems lasted an hour or more, though Level 3 said issues were resolved around 11:30 a.m.
Wed, Sep. 28, 10:08 AM
- T-Mobile (TMUS -0.5%) is extending a summer travel promotion and granting customers free international data until the new year.
- The carrier is offering high-speed data at no charge through South America and 19 European countries through Dec. 31.
- The plan -- an extension of a promotion that the carrier set up for the Rio Olympics -- doesn't allow for tethering another device to the connection, though.
- T-Mobile customers can already use their phones in Mexico and Canada as they do in the U.S.
Thu, Sep. 22, 12:02 PM
- Asked about announcements earlier at the Communacopia Conference regarding Comcast's (NASDAQ:CMCSA) and now Charter's (CHTR +0.6%) entries into wireless service, T-Mobile (TMUS +1.3%) COO Mike Sievert was sanguine: "Things in cable happen at the pace of cable."
- "We think it's great," he says. "If you're a T-Mobile shareholder it's hard to figure out how it could go badly for you," he says, pointing to T-Mobile's focus. If the companies come in and take customers, that's a market of not four but six carriers "in a world where T-Mobile is highly efficacious" at mobile. "Let's say they stumble, but they still believe in the vision of convergence. Also good. Or if they lose interest, and take their toys and go home ... also good."
- T-Mobile earlier this week released preliminary Q3 subscriber results that said it added 753,000 branded postpaid phone subs. Any benefit from the new iPhone 7? "Most of the benefit of the switching is in Q4, because we don't report the add until the phone ships to the customer, and most of the shipments are after Oct. 1," Sievert said. The company's free iPhone 7 trade-in promotion is ending Sunday, they said.
- Separately, the company suffered a significant overnight outage of its data service. It confirmed issues at 3:31 a.m. ET, and said service was back at 5:47 a.m.
Thu, Sep. 22, 11:31 AM
- The move to unlimited data service is the beginning of a "radical simplification" of the offer at T-Mobile (TMUS +0.5%), Chief Operating Officer Mike Sievert tells the Goldman Sachs Communacopia Conference.
- And still a differentiator, despite the resurgence of unlimited plans, he says: "At Verizon (VZ +0.4%), they're sticking somewhere between 'No' and 'Hell No' on unlimited."
- T-Mobile One, the company's recently announced "Un-carrier" move doing away with data buckets, is essentially a "monthly subscription to the Internet," and that has cost-cutting implications for them. "A third of our calls into our [customer care] centers are about the bill ... What if there was no bill? Because everybody has one simple monthly subscription and they've gone ahead and put it on autopay?" Autopay is on 20% of plans, CFO Braxton Carter says, and the company hopes to double that.
- Sievert contrasted the company's focus vs. larger, "convergence"-oriented rivals like AT&T (T +0.8%): "They're moving on; they're talking about other things, it's DirecTV, it's Mexico."
- Earlier at the conference, AT&T said it would zero-rate streaming service DirecTV Now and aggressively price it. "They must be overcome with jealousy about how [Verizon's] Go90's going!" Sievert laughs. "I'm here to tell you: We'll zero-rate DirecTV Now on T-Mobile, happy to pre-announce that."
Tue, Sep. 20, 2:57 PM
- With wireless subscription growth slowing overall, the "try harder" guys each say they're stealing each other's customers.
- T-Mobile (TMUS -2.8%) and Sprint (S -5.9%) said today they're taking subscribers from their small competitor, and thus presenting a tougher challenge to industry leaders AT&T and Verizon.
- They can't both be 100% right, though time may tell. T-Mobile provided a preliminary update, while Sprint will release official results at the end of the quarter.
- In its update, T-Mobile said it added about 753,000 branded postpaid phone subs in Q3 so far -- pacing below last year's Q3 gain of 1.1M with just a couple of weeks left, but ahead of Q2 in branded postpaid phone and prepaid net adds.
- To be fair, T-Mobile (a standout in industry subscriber growth in recent quarters) says it's taking customers from everyone this quarter: 250,000 postpaid phone and prepaid net customer adds from Verizon (VZ +0.3%), and 400,000 from AT&T (T -0.1%), to go along with 300,000 from Sprint.
- T-Mobile will provide a business update in a presentation to Goldman Sachs' Communacopia Conference Thursday at 10:30 a.m. ET.
- Previously: Sprint's Claure: All employees tied to turnaround; Five-year plan on track (Sep. 20 2016)
Fri, Sep. 16, 4:03 PM
- A California appeals court has given a win to San Francisco, upholding a decision for the city against T-Mobile (TMUS -1.3%), Crown Castle (CCI -1.2%) and EsteNet over where small cells are placed (and how good they look).
- The trial court had initially ruled against the plaintiffs, saying the city could use permits in order to prohibit specific installments of small cells for aesthetic reasons. The appeals court upheld that verdict.
- A 2011 ordinance calls for permits before installing wireless facilities in the public right of way; T-Mobile had argued that that conflicted with state public utility code allowing building lines on public roads and highways "in such manner and at such points as not to incommode the public use.”
- An explosion in small cell usage has resulted in growing conflicts with wireless providers in some cities around the country. The FCC may come to intervene, using rules originally developed for larger-scale cell towers.