The Bull Case For T-Mobile

In a report published Wednesday, Pacific Crest analyst Michael Bowen maintained an Overweight rating

, with a price target of $47, on increased activity and the expected increase in ARPU. Analyst Michael Bowen said that T-Mobile was witnessing a higher level of activity as compared to its historical averages. "In addition, we believe T-Mobile's change away from promotional pricing on unlimited plans represents a price increase that should benefit ARPU." In the report Pacific Crest noted, "T-Mobile introduced a promotion for the Alcatel Pixi 7, which it will offer for free (retail $168) to new or existing customers. To receive this promotion, customers need to have a qualifying wireless plan with T-Mobile and pay $10 per month for data that will match the customer's existing data plan (up to 5GB), with taxes and fees additional." Some T-Mobile stores in Texas had started selling MetroPCS products. These stores not only activated the devices of the customers, but also explained the details of the company's new plan. "Checks indicate that the ability to sell MetroPCS products is an attempt to help more price-sensitive consumers, who may not meet the credit requirements for T-Mobile plans, obtain a wireless plan," Bowen wrote. The Pacific Crest report stated that T-Mobile's mobile-without-borders scheme had been received well by customers, especially in areas close to Canada and Mexico, and had resulted in increased walk-in traffic at its stores. "In addition, existing T-Mobile customers are heading to stores to upgrade their plan to take advantage of T-Mobile's $10 pricing on Mobile without Borders," Bowen commented.