The second quarter of 2020 was an important time for that T-Mobile (NASDAQ: TMUS). Long behind the two largest mobile networks in the US, Verizon (NYSE: VZ) en AT&T (NYSE: T), the pink-logoed “Un-carrier” merged with Sprint and its more than 29 million subscribers on April 1 and had industry-leading net subscriber additions of 1.25 million in the quarter. At the end of June, that equated to 98.3 million mobile customers with T-Mobile brands, more than the 92.9 million at AT&T, but less than the nearly 120 million at Verizon.
The company noted in its press release that the quarter was marked by “takeover of AT&T in total brand names customers as America’s no. 2 wireless provider and another quarter of the leading customer growth in the sector. “
Winning the connection battle
With the dawning of the new 5G era, T-Mobile is in good shape to compete in the competitive space for mobile services. The company has launched its nationwide 5G network, which spans 250 million consumers more than 1.3 million square miles, what it says is more than double AT&T’s geographic coverage. Verizon traps both its smaller rivals, though the 5G aspirations are certainly different, concentrating on millimeter-wave technology that has limited coverage, but the speeds that rival that of Internet-connected fiber optics. Also in some speed tests, Verizon’s 4G LTE network was as fast and faster than both T-Mobile’s and AT & T’s 5G.
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The advancement of T-Mobile with the help of Sprint is nonetheless remarkable. Whatever marketing sticker there is, the capabilities of the mobile network are enhanced, and it attracts many new customers. The number of phones that can hook up to 5G is expected to increase dramatically next year, prompting even more consumers to make the switch, not to mention a cycle of upgrading a smartphone that is also T-Mobile’s retail sales could lift.
Following the acquisition of Sprint, T-Mobile began to look a little more like its rivals, with $ 11.1 billion in cash and equivalents and $ 66.6 billion in debt. However, it has even less debt than AT&T ($ 16.9 billion in cash and $ 169 billion in debt) and Verizon ($ 7.88 billion in cash and $ 113 billion in debt). Yet another way, although it still does not have the best network here in the states, it is not hard to imagine that T-Mobile will continue to close the gap with AT&T and Verizon in the coming years on both mobile capabilities network as the number of total subscribers.
