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T-Mobile US, Inc. (TMUS)

  • Nov. 12, 2013, 3:33 PM
    • In the prospectus for its 72M-share stock offering, T-Mobile USA (TMUS -3.4%) discloses it's "considering an acquisition of spectrum from a private party." No word on which company T-Mobile is thinking of buying from; bankrupt LightSquared is one possibility.
    • Separately, Charlie Ergen (DISH +5.2%) says a Dish/T-Mobile merger is still "on the table," as is a partnership with a U.S. mobile carrier. There has already been plenty of speculation about a tie-up between the companies in recent months, as Dish continues exploring options for making use of its valuable 4G spectrum.
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  • Nov. 11, 2013, 4:57 PM
    • At current levels, T-Mobile's (TMUS) offering would yield proceeds of $1.72B. The #4 U.S. carrier says it will use the proceeds for "general corporate purposes," including capex and opportunistic spectrum purchases. Underwriters have an option to buy another 6.615M shares. (PR)
    • T-Mobile ended Q3 with $2.4B in cash/equivalents, and $7B in debt. The company has been spending aggressively to expand its 4G network (with the goal of neutralizing Verizon/AT&T's head start), as well as to grow its retail presence.
  • Nov. 6, 2013, 9:38 AM
    • T-Mobile (TMUS +1.3%) has been upgraded to Buy by Canaccord following yesterday's Q3 results and subscriber guidance hike. Shares +0.9% premarket.
    • 21Vianet (VNET +9.1%) has been upgraded to Overweight by JPMorgan. Q3 results arrive on Nov. 25.
    • Interactive Intelligence (ININ +20.1%) has been upgraded to Outperform by Northland in response to its Q3 beat.
    • Maxim (MXIM -0.5%) has been cut to Neutral by SunTrust two weeks after beating FQ1 estimates and issuing FQ2 guidance that was largely below consensus.
    • Vringo (VRNG +6.5%) has been started at Buy by boutique firm Dawson James. The company just announced a favorable USPTO ruling.
  • Nov. 5, 2013, 7:59 AM
    • T-Mobile USA (TMUS): Q3 revenue of $6.69B (+9% Y/Y, takes MetroPCS into account) beats by $120M.
    • Service revenue +0.6% Q/Q and -5% Y/Y to $5.14B; the Y/Y drop is due to weakness in Q4 2012 and Q1 2013.
    • Subscriber adds beat estimates: Total net adds of 1.02M vs. 1.05M in Q2 and -152K a year ago. Branded postpaid net adds of 648K vs. 688K in Q2 and -492K a year ago. Branded prepaid net adds of 24K vs. -87K in Q2 and 53K a year ago. Wholesale net adds of 351K vs. 452K in Q2 and 287K a year ago.
    • T-Mobile now expects 1.6M-1.8M 2013 branded postpaid net adds, up from prior guidance of 1M-1.2M. Full-year adjusted EBITDA guidance ($5.2B-$5.4B) and cash capex guidance ($4.2B-$4.4B) has been reaffirmed.
    • Thanks to investments and aggressive pricing, adjusted EBITDA was $1.34B, +6% Q/Q but -21% Y/Y.
    • 203M POPs covered by 4G LTE network, up from 157M at end of Q2. 61% of branded postpaid subs on Value or Simple Choice plans, up from 50% at end of Q2.
    • Branded postpaid churn was 1.7% vs. 1.6% in Q2 and 2.3% a year ago. Branded cost per gross add was $307, down from $326M in Q2 and $382 a year ago.
    • Cash/equivalents total $2.4B, and debt $7B.
    • Shares +4.1% premarket. PR, slides, investor quarterly, financials.
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  • Oct. 23, 2013, 1:11 PM
    • A day after Apple launched new iPads, T-Mobile USA (TMUS -0.7%) announces it's offering 200MB/month of free data to all U.S. 3G/4G tablet users for the lifetime of their devices, whether or not the users are existing customers. No contracts or service plans are required.
    • The catch: Anyone who actively uses a tablet's mobile data connection will go through 200MB pretty quickly (one iPad game download could be enough). T-Mobile is hoping those who do will be interested in signing up for one of the carrier's paid data plans.
    • The promotion follows the launch of global data roaming and international talk/text service plans that significantly undercut the pricing of larger rivals.
    • Also: Jump smartphone upgrade plan, contract-free service plans
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  • Oct. 18, 2013, 9:34 AM
    • AMD (AMD -12.7%) has been cut to Neutral by BofA/Merrill after beating Q3 estimates and providing above-consensus Q4 revenue guidance, but also reporting a 15% Y/Y drop in CPU division sales due to PC weakness.
    • Verizon (VZ +0.8%) has been upgraded to Buy by Stifel a day after beating Q3 estimates and reporting better-than-expected mobile subscriber adds.
    • Amazon (AMZN +2.4%) has been upgraded to Buy by UBS ahead of its Oct. 24 Q3 report.
    • VMware (VMW +2.8%) has been upgraded to Overweight by JPMorgan ahead of Monday's Q3 report.
    • T-Mobile USA (TMUS +2.7%) has been added to Goldman's Conviction Buy list ahead of its Nov. 5 Q3 report.
    • Intuit (INTU +2.6%) has been upgraded to Buy by BofA/Merrill.
    • Align Technology (ALGN +24.4%) has been upgraded to Buy by Cantor following its Q3 beat.
    • LG Display (LPL -0.2%) has been cut to Hold by Craig-Hallum after issuing a Q4 warning.
    • Ultratech (UTEK -10.2%) has been cut to Hold by Canaccord following its Q3 miss.
    • Sierra Wireless (SWIR -1%) has been cut to Market Perform by Raymond James; Q3 results arrive on Nov. 7.
    • Aspen Technology (AZPN -0.9%) has been cut to Neutral by JPMorgan.
    • Analog chipmakers International Rectifier (IRF -1.7%) and Monolithic Power (MPWR -1.3%) have been cut to Market Perform by Wells Fargo.
    • U.S. Cellular (USM -1.2%) has been started at Underperform by FBR.
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  • Oct. 10, 2013, 2:02 PM
    • T-Mobile's (TMUS +2.1%) new global data roaming plans, hinted at in a Facebook teaser image, give subscribers of its contract-free Simple Choice service plans ($60/month for unlimited voice/text and 2.5GB of data, $70/month if a user wants unlimited data) free access to mobile data services in 100+ countries.
    • The list of covered markets includes the EU5, China, India, Japan, Brazil, Canada, and Mexico. To make sure only travelers use the plans, they can only be used six weeks at a time. Speeds will be limited; users wanting better performance will have to pay extra.
    • T-Mobile is also launching a $10/month international talk/text service that provides unlimited texts and landline calls, and charges no more than $0.20/minute for mobile calls.
    • Laptop Magazine observes T-Mobile's data roaming and international calling fees are far below those of rivals. With the new plans, the #4 U.S. carrier is making an aggressive push for both enterprise users (currently a small portion of its base) and users with non-U.S. family members.
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  • Oct. 9, 2013, 5:45 PM
    • "Global data coverage in over 100 countries at no extra charge." Thus reads a Facebook teaser image for T-Mobile USA's (TMUS) 8:15PM ET "Uncarrier 3.0" event. The text suggests a global data roaming plan is on tap, but there are no details yet about monthly pricing or data limits.
    • Cheap international data roaming could appeal to enterprise mobile clients, many of whom have to pay through the nose to browse the Web and check e-mails on foreign 3G/4G networks. Compared with Verizon and AT&T, T-Mobile currently has a miniscule enterprise base.
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  • Oct. 8, 2013, 2:47 PM
    • Deutsche Telekom (DTEGY.PK) is selling $3.1B worth of T-Mobile USA (TMUS -0.4%) bonds in its possession. The debt, which DT obtained through the MetroPCS deal, consists of 2019 and 2021 notes worth $1.25B apiece, and 2023 notes worth $600M.
    • DT, which (like many European carriers) is saddled with a huge debt load, only says it will use the proceeds for general corporate purposes. T-Mobile USA had $9B in debt on its balance sheet at the end of Q2, and $2.4B in cash/investments.
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  • Oct. 4, 2013, 6:12 PM
    • T-Mobile (TMUS) will use the ticketed NYC event to unveil the third part of its self-proclaimed strategy to upend the U.S. mobile industry. Singer Shakira has been hired to assist with the efforts.
    • The first part of T-Mobile's strategy involved rolling out contract-free service plans that eschewed traditional phone subsidies in favor of monthly installments. The second part involved the launch of the carrier's Jump smartphone early upgrade plan. The results of T-Mobile's moves have been pretty good thus far.
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  • Oct. 2, 2013, 12:47 PM
    • Droid-Life, evleaks, and others report Target is set to launch a T-Mobile-powered (TMUS +0.2%) prepaid service called Brightspot.
    • Brightspot is expected to launch on Saturday, and to feature monthly plans respectively costing $35, $50, and $65. The first plan offers unlimited voice/text, but no data; the second adds 1GB of 4G data, and the third 4GB.
    • T-Mobile has long had a disproportionately large prepaid base, and the MetroPCS merger made it even larger. While T-Mobile works to expand MetroPCS' reach, AT&T and Verizon have been busy revamping their prepaid offerings.
    • Previous: U.S. prepaid smartphone sales growing rapidly
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  • Oct. 1, 2013, 9:33 AM
    • Cree (CREE +6.6%) has been upgraded to Buy by Canaccord.
    • Agilent (A -0.6%) has been cut to Hold by Stifel two week after the company announced plans to split into two companies.
    • PC Connection (PCCC -0.5%) has been started at Buy by Canaccord.
    • Computer Task Group (CTG -1.6%) has been upgraded to Buy by B. Riley.
    • 1-800-Flowers (FLWS +3.9%) has been upgraded to Buy by Brean.
    • T-Mobile USA (TMUS +1.1%) has been upgraded to Outperform by Oppenheimer.
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  • Sep. 30, 2013, 4:33 PM
    • In addition to  providing fresh global smartphone sales estimates, Kantar Worldpanel has provided estimates for U.S. carrier smartphone sales. Verizon (VZ -0.7%) is the big winner: Kantar thinks the nation's top carrier accounted for 37.1% of U.S. smartphone sales in the June-August timeframe, +520 bps Y/Y.
    • On the other hand, Kantar thinks AT&T's (T -0.5%) share fell 680 bps to 21.7%, and Sprint's (S +1%) share 620 bps to 14.6%. T-Mobile USA (TMUS -0.3%), its fortunes recently improving thanks to iPhone sales and new service plans, is assigned a 13.2% share, +110 bps. Curiously, "Other" carriers are given a 13.4% share, +500 bps.
    • AT&T recently announced it expects its Q3 smartphone upgrades to be up Y/Y, and that it will add 1M smartphone subs during the quarter. However, it also predicted upgrades will drop on a Y/Y basis in Q4.
    • Smartphone users made up 64.4% of Verizon's postpaid base at the end of Q2, up from 61.4% at the end of Q1. That figure still trailed AT&T's 73%. Higher smartphone sales hurt near-term margins, but also boost ARPUs by migrating subs to costlier data plans.
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  • Sep. 25, 2013, 11:40 AM
    • During a Goldman conference talk, T-Mobile USA (TMUS +2.3%) CFO Braxton Carter called a merger between his company and Sprint (S -2.3%) the "logical ultimate combination." But he also admitted the current M&A regulatory environment is "tough."
    • T-Mobile and Sprint have been bleeding share in recent years to bigger rivals Verizon and AT&T. However, T-Mobile has begun to reverse its fortunes with the help of an iPhone deal, contract-free plans, and its Jump smartphone upgrade program. Sprint is betting aggressive pricing and a rapid 4G buildout will help it do the same.
    • Regulators may not be the only reason a T-Mobile/Sprint deal would be challenging in the near-term. T-Mobile is in the midst of digesting MetroPCS, and Sprint is fresh off acquiring Clearwire and merging with SoftBank (SFTBF.PK).
    • Separately, SoftBank has extended Sprint CEO Dan Hesse's contract through July 2018.
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  • Sep. 16, 2013, 12:17 PM
    • The program, called Sprint One Up (S +0.1%), will reportedly launch on Sep. 20. It will allow Sprint subs to obtain a new smartphone for no money down and $27/month.
    • Interestingly, they'll also get a $15/month discount on Sprint's Unlimited voice/text/data plan ($65 instead of $80). Users will be able to trade in their phones after a year. Existing subs who have been on contract for a year or longer will be eligible.
    • In a leaked slide, Sprint asserts a One Up sub will pay $1,192 in total phone and service fees in the first 12 months, $228 less than a subscriber to T-Mobile USA's (TMUS +0.2%) Jump upgrade plan and over $500 less than subscribers to AT&T's (T +0.6%) Next plan or Verizon's (VZ +0.9%) Edge plan; AT&T and Verizon's early upgrade pricing has already been criticized.
    • SoftBank (SFTBF.PK, SFTBY.PK) has promised Sprint will price its services aggressively going forward. Sprint overhauled its service plans shortly after the SoftBank deal closed, but the price cuts offered weren't as steep as some expected.
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  • Sep. 12, 2013, 5:49 PM
    • T-Mobile USA (TMUS) CMO Mike Sievert says the #4 U.S. carrier had a record share of gross postpaid subscriber adds in August. T-Mobile's contract/subsidy-free plans and Jump smartphone upgrade plan likely had something to do with that. Efforts to grow MetroPCS' reach may have also played a role.
    • T-Mobile is coming off a Q2 in which it reported 688K postpaid net adds (better than expectations) after steadily bleeding subs in 2012, thanks in part to its failure to carry the iPhone until this April.
    • The carrier is hoping to keep up the momentum by temporarily offering discounts on the latest iPhones. For the next few weeks, the 5S will go for $99 down and $22.91/month for 2 years, and the 5C will go for no money down and $22/month for 2 years.
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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.