T-Mobile, Binge On, and Music Freedom



T-Mobile’s Binge On and Music Freedom

T-Mobile (TMUS) continues to add more services to Binge On and Music Freedom. The carrier’s press release highlighted these additions, mentioning that “Amazon Music, ESPN Radio, and more music services stream free for T-Mobile customers, and Dailymotion, EPIX, Nickelodeon, Spike, TV Land, and more video services are joining the list of providers streaming free to T-Mobile customers on qualifying plans with Binge On.”

T-Mobile, Binge On, and Music Freedom

Music Freedom, according to the company, offers “more than 40 services,” which account for a significant 96% of the music streamed by carrier’s subscribers. In Binge On, according to the carrier, there are “more than 60 participating video providers.”

The company has also stated that “with Music Freedom and Binge On together, T-Mobile customers have saved over 350 petabytes of high-speed data.”

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T-Mobile’s wireless proposition

Binge On and Music Freedom add weight to the service proposition of the fastest-growing wireless carrier, by subscribers, among the top four in the US. The carrier’s postpaid subscriber growth has significantly outpaced that of peers in the saturated US wireless space.

YoY (year-over-year), the company’s postpaid subscribers increased by a significant ~16.6% to ~31.7 million at the end of 4Q15. Meanwhile, Sprint (S) platform’s postpaid customers increased by ~4.7% YoY to ~30.9 million during the same quarter.

Peer comparisons

Verizon’s (VZ) postpaid subscribers increased by ~4.4% YoY to reach ~106.5 million at the end of 4Q15. Additionally, AT&T’s (T) postpaid customers in domestic operations grew by ~1.8% YoY to ~77.1 million in 4Q15.

For diversified exposure to T-Mobile, you might consider the PowerShares QQQ (QQQ). The telecom player made up ~0.62% of QQQ as of April 1, 2016.

Now let’s analyze valuation metrics.


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