Company Reports

Shares of US wireless carriers are trading lower after SpaceX agreed to purchase low-band 800 MHz spectrum licenses from Grain Capital, which Grain recently acquired from T-Mobile. SpaceX also says Starlink will build a terrestrial wireless network to supplement satellite with indoor coverage.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, we expect AT&T and Verizon to match T-Mobile, and that market share will stabilize among the three carriers. A rational competitive landscape should emerge, allowing for stable pricing, disciplined investment, and expanding cash flow. However, SpaceX now threatens to upset the current market structure. While we don't expect SpaceX's Starlink to enter the US wireless market, the threat of entry could still cause problems.

Shares of US wireless carriers and tower firms traded lower after SpaceX claimed that it will use satellite dishes to build a wireless network capable of competing in the US wireless industry. SpaceX also claimed that it will launch 10 times as many V3 broadband satellites as V2.

T-Mobile delivered 9% service revenue growth during the second quarter, or about 4% excluding acquisitions. Postpaid account additions dropped to 277,000 from 318,000 a year ago despite the added benefit of selling fiber broadband this year. Management left its full-year growth estimates unchanged.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for stable pricing, disciplined investment, and expanding cash flow.

Verizon was the big bidder in Auction 113, spending $3.2 billion on 82 spectrum licenses. T-Mobile picked up more than 100 licenses, nearly all in small markets, for only $277 million. AT&T added 13 licenses for $133 million. SpaceX did not bid aggressively, landing two licenses for $8 million.

Bidding in FCC Auction 113 has concluded, placing licenses that have been dormant since EchoStar subsidiary Dish Network failed to pay for them more than a decade ago. The auction resolves the related dispute between the FCC and EchoStar. We should know the winning bidders in the coming days.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to be able to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for stable pricing, disciplined investment, and expanding cash flow.

T-Mobile increased service revenue 11.3% during the first quarter, or about 6% excluding acquisitions, in line with the pace of the past several quarters. The firm added 217,000 postpaid accounts, up only slightly from 205,000 a year ago. Adjusted EBITDA increased 12% and free cash flow was up 5%.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to be able to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for stable pricing, disciplined investment, and expanding cash flow.

T-Mobile delivered 10% service revenue growth in the fourth quarter, or about 5% excluding acquisitions, with the adjusted EBITDA margin down 1.5 percentage points year over year. Management's updated outlook calls for similar growth through 2027 and the resumption of steady margin expansion.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to be able to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for steady price increases and expanding cash flow.

T-Mobile's third-quarter revenue increased 9% year over year. Revenue was likely up 5%-6% excluding the acquisitions of US Cellular and MetroNet customers, slightly slower than the first half of the year. Customer additions were again very strong, including 1 million net postpaid phone customers.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should enable it to continue gaining market share. We also expect a rational competitive landscape will allow the firm and its rivals to steadily, if modestly, increase prices. This environment should support profitability and expanding cash flow.

T-Mobile reported a strong rebound in customer growth, adding 830,000 net postpaid wireless phone customers, a second-quarter record. Revenue per phone customer also jumped 3% year over year, driving 6% service revenue growth. Phone subsidies increased slightly, but the EBITDA margin held steady.

T-Mobile posted solid first-quarter financials, with revenue up 6.6% year over year, EBITDA growing 8.4%, and free cash flow jumping 31%. Postpaid phone customer additions slowed, however, and management declined to raise its initial customer growth forecast for the first time in more than a decade.

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should enable it to continue gaining market share. We also expect a rational competitive landscape will allow the firm and its rivals to steadily, if modestly, increase prices. This environment should support profitability and expanding cash flow.

On April 2, the Trump administration announced broad tariffs on US trading partners, sending markets tumbling. Shares of US wireless and fixed-line telecom providers are mostly unchanged, with phone carriers up slightly and cable providers seeing a small decline in April 3 trading.

T-Mobile has agreed to sell its nationwide 800-MHz spectrum holdings to Grain Management in exchange for cash and Grain's 600-MHz licenses. The spectrum divestiture fulfills a condition of the Sprint acquisition.

Verizon indicated at an investor conference that wireless competition has been more aggressive than usual thus far during the first quarter. Its shares slid 7%, giving back all the gains from a sharp rally over the prior week. AT&T and T-Mobile shares also dropped about 3%.