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T-Mobile Is Still Adding New Services to Binge On in 2Q16

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T-Mobile’s Binge On

T-Mobile (TMUS) continued to add more video services to Binge On in 2Q16. According to the company’s press release, “Popular online gaming streams featuring League of Legends and Hearthstone and some of today’s most iconic TV shows on PBS and PBS KIDS now stream with Binge On, the Un-carrier’s popular mobile video initiative.”

The company says there are more than 90 video service providers on Binge On. Some of the services include Google’s (GOOG) (GOOGL) YouTube, Netflix (NFLX), Verizon’s (VZ) go90, and AT&T’s (T) DirecTV.

According to the company’s press release, “T-Mobile customers have streamed more than 500 million hours of video without using their high-speed data since the launch of Binge On, and customers are watching up to 2x more from participating providers that stream free on limited data plans.”

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Positive effects of Binge On

Apart from adding weight to T-Mobile’s service proposition, Binge On is also helping the carrier manage its network capacity. According to T-Mobile, usage on Binge On is alleviating pressure on its network capacity. This is significant since the major constituent of mobile data traffic is video. It continues to drive data consumption of US wireless carriers.

According to Cisco’s (CSCO) VNI (Visual Networking Index) forecasts, video made up ~61% of mobile data traffic in the United States at the end 2015. This figure is anticipated to increase to ~77% in 2020.

For a diversified exposure to some telecom players in the United States, you can consider investing in the SPDR S&P 500 ETF (SPY). The ETF had a total of ~2.7% in AT&T, Verizon, CenturyLink (CTL), Level 3 Communications (LVLT), and Frontier Communications (FTR) at the end of May 2016.

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