T-Mobile Is Stirring The Pot Yet Again
T-Mobile US Inc (NASDAQ: TMUS) unveiled Un-Carrier 12, which seems to “signal a longer-term commitment to unlimited,” Baird's William V. Power said in a report. He maintained a Neutral rating on the company, with a price target of $51.
While T-Mobile has offered unlimited data plans in the past, the latest unveiling reflects a longer-term commitment to offering simpler and “unlimited everything” plans. This is in contrast with the data limits on most plans offered by peers, and posed greater competitive risk to AT&T Inc. (NYSE: T), Verizon Communications Inc. (NYSE: VZ) and Sprint Corp (NYSE: S), analyst Power noted.
Details Of The Plan
The latest T-Mobile single rate plan is scheduled to become available on September 6, just ahead of the anticipated iPhone 7 unveil by Apple Inc. (NASDAQ: AAPL). T-Mobile is expected to phase out its existing plans.
“The first line costs $70 per month, the second $50, with each subsequent line $20 each, implying a total monthly cost of $160 for a family of four. Tablets can also be added for $20 per month…Only SD video streaming is included. For HD streaming, customers would need to pay an additional $25 per month. Customers are also likely to be throttled after exceeding 26 GB of monthly usage,” Power wrote.
Although T-Mobile has reiterated its guidance, the analyst believes that the new pricing could increase ARPU, while it may also increase usage and associated network costs.
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Latest Ratings for TMUS
|Jan 2017||Evercore ISI Group||Initiates Coverage On||Buy|
|Oct 2016||Goldman Sachs||Maintains||Buy|
|Aug 2016||Wells Fargo||Upgrades||Market Perform||Outperform|
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