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Amdocs, a firm that provides the software T-Mobile uses to manage customer billing and operations, warned that its annual revenue could fall by up to 18 percent. The firm noted that its outlook accounts for the possibility that its contracts with T-Mobile might end.
For T-Mobile, this likely signals a shift in how it handles its internal technology. Large carriers often move away from outside vendors like Amdocs to build their own software or switch to more modern, flexible systems. While this creates a major problem for the supplier, it suggests T-Mobile is looking to cut costs or gain more control over the systems that run its network and billing.
Source: Barrons
SpaceX is reportedly in talks to buy Boost Mobile from EchoStar. The deal would allow SpaceX to combine its Starlink satellites with a traditional cellular network, potentially creating a new national competitor to challenge the lead held by T-Mobile and its peers.
This is a development to watch because T-Mobile's main advantage today is its superior 5G network. If SpaceX successfully builds a hybrid service that works everywhere via satellite, it could eventually bypass the tower-based infrastructure that T-Mobile has spent billions to build. While SpaceX is currently much smaller than the major carriers, its entry would introduce a well-funded rival into a market that has mostly been a three-way race.
Source: TechCrunch
T-Mobile is launching its fastest fiber-optic internet plan yet, offering 5-gigabit speeds for $90 a month. To attract customers from traditional cable companies, the plan includes a guarantee that the price will not change for 10 years.
This move supports the company's strategy to grow beyond mobile phones and into home broadband. By offering high-speed fiber alongside its existing 5G home internet, T-Mobile is positioning itself as a full-service provider that can compete for the most data-heavy households.
Source: Business Wire
After T-Mobile reported its October results, we updated our fair value and raised our projections for its annual cash flow. We added the arrival of satellite-based mobile competition to what we track, as new technology may allow rivals to offer service without building traditional cell towers. We also added the risk of leadership turnover to our thesis, following the planned departures of both the chief executive and chief financial officer. We have started monitoring the potential influence of an activist investor at T-Mobile's parent company, which could limit how the two businesses work together.
T-Mobile reported a strong quarter, with profit growing 27 percent from last year to reach 3.5 billion dollars. The growth was driven by a 4 percent rise in the average amount each account pays, as more people choose premium plans with more features. The company also added 274,000 new accounts, bringing its total to 35 million.
Management also raised its forecast for the cash it expects to have left over after paying its bills this year. This extra cash is what fuels the company's plan to return over 18 billion dollars to shareholders through buybacks. These results show that T-Mobile is successfully getting its current customers to spend more while still winning new ones from rivals.
See the full quarter, and how our tracked metrics did
Source: 8-K filing
Management consistently sets targets they can beat, and the business is currently outrunning even their own raised forecasts as customers move to more expensive plans.
| Expectation | |
|---|---|
| EPS | $2.68 |
| Revenue | $25.44B |