TMUS - Embedded Expectations Analysis - 2018 09 14
T-Mobile US, Inc. (TMUS:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Assets, with a 1.2x Uniform P/B. At these levels, the market has muted expectations for the firm, while management is confident in their proposed Sprint merger, elimination of automated call centers, and their Unlimited 55+ and military offeringsSpecifically, management generated an excitement marker when saying their 2.5GHz spectrum will help solve the indoor propagation issues in Sprint's network. Additionally, they are confident that they will continue to lead the industry in postpaid phone growth, and that their proposed merger with Sprint is proconsumer and will bring nationwide 5G to American customers. Moreover, they are confident the merger will allow them to increase capacity, and about their new strategy to eliminate automated call centers and only use real customer service representatives. They are also confident that their strategies for Unlimited 55+ and military specific offers will continue to grow those under-indexed segments
T-Mobile US provides mobile communications services, including voice, messaging and data, under its brands, T-Mobile and Metro? by T-Mobile, in the United States, Puerto Rico and the United States Virgin Islands. The company provides mobile communications services using its 4G Long-Term Evolution network and its 5G technology network. The company also provides various wireless devices, including handsets, tablets and other mobile communication devices, and accessories for sale, as well as financing through Equipment Installment Plans and leasing through JUMP! On Demand?. The company provides reinsurance for handset insurance policies and extended warranty contracts offered to its mobile communications customers.
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