Mobile Is the Envy of the Wireless World


T-Mobile has launched 13 Un-carrier moves including the elimination of service contracts, ending overages, enabling upgrades anytime, free worldwide data roaming in over 140 countries and destinations, unlimited music and video streaming, and offering all unlimited data plans with taxes and fees included. And their intensified efforts to hold onto their subscribers definitely has a price attached.

First-quarter postpaid phone churn was a best-ever 0.9%.

Postpaid net additions of 914,000 beat consensus estimates of 843,000. And as you've seen, Verizon reported a disaster of a quarter, with almost 300,000 postpaid phone losses despite all the hype around the launch of their unlimited plan. The current share price indicate that stock is -10.18% away from its one year high and is moving 33.17% ahead of its 52-week low.

There appears to be no more lingering bitterness: the T-Mobile train kept chugging along with 1.1 million new customers in the first quarter.

At the end of Q1 2017, T-Mobile had 72.6 million customers. It also added 386,000 pre-paid customers.

T-Mobile US, Inc. (TMUS) stock price distance from twenty day simple moving average surged at 2.65% while its distance from fifty day simple moving average raised 4.52% along with 21.93% above distance from two hundred simple moving averages. If you dig deeper beyond the revenue miss, you will see that TMUS probably has the best potential for growth in the industry. Segment-wise, Service revenues were up 11.4% year over year to $7,329 million.

It's not just Verizon that is losing subscribers - AT&T is in the same boat.

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In February, in an attempt to regain subscribers, Verizon brought back its unlimited data plan which it had cut back in 2011. It offers postpaid and prepaid wireless voice, messaging and data services, and wholesale wireless services. The stock exchanged hands with 4.86 million shares contrast to its average daily volume of 3.29 million shares.

In a conference call after the earnings report, the chief executive officer of T-Mobile, John Legere, hinted that a merger was likely to be explored by the third biggest wireless carrier in the United States.

T-Mobile expects that at least 10 MHz covering over one million square miles will be clear in 2017 and it will use the new spectrum for the benefit of T-Mobile and MetroPCS customers later this year. T-Mobile US has a 52 week low of $38.47 and a 52 week high of $67.76. Whereas T-Mobile produced $1.4 billion in free cash flow (FCF) last year and expects strong FCF growth over the next three years, Sprint has only guided for breakeven adjusted FCF for the fiscal year ending in March, in spite of cutting capex to minimum levels. Its earnings arrive on May 3. "Verizon's rivals are slated to report their latest results in coming weeks", according to Fox Business. That could have implications for Q1 US iPhone sales; Apple (AAPL) reports earnings on May 2.

Relative strength index (RSI-14) for T-Mobile US, Inc.

T-Mobile announced their Q1 financial results on Monday. Verizon introduced unlimited plans during the quarter because it was alarmed at how many customers it was losing.

Verizon and AT&T are now aggressively marketing mobile-phone packages that include unlimited data - a tacit acknowledgment that the carrier has struck a chord with consumers who want to stream video without worrying about exceeding a cap. S in the highly price-sensitive USA wireless market. And that, along with wireline revenue pressures, might explain why both Verizon and AT&T seem so hungry to lower their telecom exposure via acquisitions.

That's a long-term problem that can't be easily mixed.