Tag Archives: tmus

T-Mobile Sale On Back Burner Until Auction, Presidential Election

Deutsche Telekom ( DTEGY ) has shelved plans to put T-Mobile US ( TMUS ) up for sale, pending the outcome of a wireless spectrum auction and the U.S. presidential election, a Reuters report said Tuesday, citing unnamed sources. Deutsche Telekom, which owns two-thirds of T-Mobile, is also in no rush to seek a merger because T-Mobile has been gaining market share vs. AT&T ( T ), Verizon Communications ( VZ ) and struggling Sprint ( S ). The Obama administration’s Department of Justice signaled its opposition to a T-Mobile-Sprint merger in 2014, fearing less competition in the wireless services sector. Some observers speculate cable TV firm Comcast ( CMCSA ) could acquire T-Mobile. And satellite broadcaster Dish Network ( DISH ) has also been looking for a wireless network partner. Federal regulators appear set to go forward this spring with the much-anticipated auction of airwaves now owned by local TV broadcasters. The Federal Communications Commission plans to begin the “Broadcast Incentive Auction” on March 29. The auction, which could last five to six months, will free up an estimated 60 to 80 megahertz of prime, low-frequency radio spectrum for wireless services. In connection with the auction, the FCC will impose a quiet period that bans negotiations over spectrum and other matters. “During that period, there will be no M&A activity in the U.S. telecoms sector,” a source close to Deutsche Telekom told Reuters . T-Mobile has said it could spend up to $10 billion in the auction, with Verizon and AT&T among the other expected bidders. Comcast, too, is seen as likely to bid. If Comcast buys a large amount of spectrum in the auction and thus becomes another major provider of wireless services, that could be a precursor to a wireless acquisition that regulators would likely view favorably, analysts say.

T-Mobile Seen With ‘Strategic Appeal’ And AT&T Best Positioning

The “stand-alone trajectory” of T-Mobile US ( TMUS )  “looks very bright” while long-term prospects for a deal with Dish Network ( DISH ), Sprint, or a cable TV firm are still alive, says Deutsche Bank, which initiated coverage with a buy rating. Matthew Niknam, a Deutsche Bank analyst, also started coverage on AT&T ( T ), rural phone company Frontier Communications ( FTR ) and cell tower companies American Tower ( AMT ) and Crown Castle ( CCI ) with buy ratings. He initiated Verizon Communications ( VZ ), Sprint ( S ), CenturyLink ( CTL ), Windstream, and SBA Communications ( SBAC ) with hold ratings. T-Mobile, with its Uncarrier-branded marketing strategy, has gained market share vs. bigger rivals. Controlled by Deutsche Telekom, T-Mobile has “strategic appeal to potential industry partners,” wrote Niknam. “With video increasingly going mobile, and reports that Comcast ( CMCSA ) has recently triggered its (wholesale) agreement with Verizon, we believe cable companies may increasingly view mobile network ownership as a longer-term strategic option.” While Comcast has plenty financial muscle to pull off an acquisition, Dish Networks’ stock has dropped while Sprint holds more than $32 billion in debt. AT&T’s acquisition of satellite TV broadcaster DirecTV, meanwhile, has bolstered its competitive position, says Niknam. “We believe AT&T is best positioned strategically, given AT&T’s presence across each of the key distribution platforms (mobile, video, wired broadband/phone), and its leadership position (#1 or #2 share ) across each market,” he said. Frontier stock was up about 4.5% in afternoon trading on the stock market today . Sprint and CenturyLink were up more than 2%, and SBA more than 3%. IBD Leaderboard stock AT&T was up almost 1%. Image provided by Shutterstock .

Sprint Pushes Galaxy Forever; AT&T, Verizon Still No Phone Leasing

Wireless firms have stepped up marketing for Samsung’s Galaxy 7 and Galaxy  S7 Edge, which may be the hottest-selling smartphones until Apple ’s ( AAPL ) iPhone 7 hits the market, likely in September. Samsung unveiled the Galaxy 7 devices at this week’s  Mobile World Congress in Barcelona. How consumers pay for smartphones in financing plans sets AT&T ( T ) and Verizon Communications ( VZ ) apart from T-Mobile US ( TMUS ) and Sprint ( S ). For consumers, leasing and monthly installment plans can be similar, especially for those that upgrade and trade in their devices every year. Whether wireless firms are using leasing as opposed to installment plans in promotions, however, brings about changes in accounting that impact earnings and revenue recognition. Sprint on Sunday introduced its “Galaxy Forever”  leasing program , similar to an offering the wireless firm launched last year for Apple iPhones. While Sprint is offering the Galaxy S7 and S7 Edge through both installment and leasing plans, T-Mobile’s near-term marketing focus leans toward monthly installment plans, analysts say. AT&T and Verizon both offer only financing plans with monthly installment payments for iPhones and other devices and do not yet offer phone leasing plans. AT&T and Verizon will apparently stick with that strategy for Samsung’s Galaxy 7 devices. However, some analysts speculate that AT&T or Verizon will begin to offer leasing plans to coincide with the arrival of Apple’s iPhone 7. Both leasing and installment plans make it easier for consumers to upgrade devices. With leasing, wireless firms retain ownership of devices. When consumers turn in old phones, wireless firms sell them into the second-hand market. Verizon will offer a $100 credit to customers that buy the Galaxy S7 and S7 Edge, according to a Wireless Week  report. T-Mobile, meanwhile, is offering customers who preorder the Galaxy S7 or S7 edge a free Samsung VR headset and a free year of Netflix.