The one issue I see with TMUS is what differentiates their product from the competition? To me, there is no difference between the cell phone service from TMUS, S, VZ, or T as long as you live in a well populated area. That means TMUS has to compete on price to increase revenue and I am reluctant to invest in a company that has to compete based on price instead of a product that makes it stand apart from the competition.
Wiseguy
Full disclosure: I own a few shares of TMUS and am short a few TMUS puts as well.
Good question. I see the bundling of a Netflix subscription as a differentiator. Sprint has since added Hulu (who cares?), and AT&T, at their top tier, includes HBO - if you also have their TV service. It doesn’t include HBO Go, just HBO over cable. I don’t see anything equivalent from Verizon.
T-Mobile’s marketing is also differentiating - at least anecdotally my kids have noticed it.
They must be doing something right - now at 18 consecutive quarters where >1 million customers were added (albeit in a growing market). Over the last year, TMUS’ revenues grew where the other 3’s revs have declined.
The stock has taken a small hit lately ($68-ish to $62-ish) due to the potential merger with Sprint falling through.
“So he wrote a manifesto. “We’re not like other wireless companies. Why would we be?..”
“T-Mobile is in an enviable position of building the bundle from scratch with services that consumers actually want and without having to sustain legacy businesses that are in structural decline.”