T-Mobile US, Inc. TMUS has announced the expansion of its Home Internet pilot service to more than 130 additional cities and towns across nine states. These are Michigan, Minnesota, New York, North Dakota, Ohio, Pennsylvania, South Dakota, West Virginia and Wisconsin.
The Bellevue, WA-based wireless operator has been expanding its Home Internet pilot extensively this year while preparing to launch 5G Home Internet service in 2021. Last month, the company expanded its home broadband pilot to more than 20 million households in parts of 450 cities and towns. It intends to bring more competition to home broadband, especially in underserved rural markets.
The COVID-19 pandemic has emphasized the importance of broadband connectivity. T-Mobile is providing high-speed Internet access to rural areas, which still have slow and limited options, so that they get an equal opportunity to thrive in the digital world.
Available at $50 per month, the Home Internet service is provided on a first-come, first-served basis depending on equipment inventory and local network capacity. T-Mobile is working on the launch of 5G Home Internet nationwide, covering more than 50% of U.S. households within six years. The company is going all out to bring tough competition for cable and telco Internet service providers.
T-Mobile is confident in its ability to deliver $43 billion of synergies and achieve $6 billion of annualized savings from the Sprint merger. In fact, it is targeting more than $1.2 billion of synergies in 2020. T-Mobile has the United States’ largest 5G network, covering 270 million people in 8,300 cities and towns across 1.4 million square miles.
T-Mobile’s shares have returned 54.2% in the past year against 4.5% decline of the industry.
The company has a long-term (three to five years) earnings growth expectation of 13.2% compared with the industry’s 8.4%. It delivered a trailing four-quarter positive earnings surprise of 153%, on average.
T-Mobile currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader industry are Turtle Beach Corporation HEAR, Plantronics, Inc. PLT and United States Cellular Corporation USM, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Turtle Beach delivered a trailing four-quarter positive earnings surprise of 81.5%, on average.
Plantronics delivered a trailing four-quarter positive earnings surprise of 568.2%, on average.
U.S. Cellular delivered a trailing four-quarter positive earnings surprise of 231.1%, on average.
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