T-Mobile Lights Up Its Nationwide 600 MHz 5G Network

On Monday, T-Mobile (TMUS) announced that it had launched its nationwide 600 MHz spectrum 5G network. It covers about 200 million people and 5,000 cities and towns across the US. As a result, T-Mobile became the first major wireless service provider to offer nationwide 5G network coverage. Wireless consumers can start using the service on December 6.

T-Mobile’s 5G launch

According to The Verge’s report on December 2, “While the network is supposedly live today, no one is going to be using it until later this week: the first two phones to support it go on sale this Friday.”

T-Mobile’s 5G compatible handsets include the OnePlus 7T Pro 5G McLaren and the Samsung Galaxy Note10+ 5G. The report added, “This ‘low-band’ 5G essentially takes airwaves like the ones used for LTE and bundles them together with some new technology to deliver faster speeds.”

If the pending merger deal between T-Mobile and Sprint (S) goes through, the combined company would be able to rapidly deploy its 5G for All program.

T-Mobile and Sprint merger deal

The proposed $26 billion merger deal between T-Mobile and Sprint has been approved by the US Department of Justice and the FCC. In July, the wireless carriers won antitrust approval from the DOJ after the companies agreed to divest their wireless assets to Dish Network (DISH) for $5 billion. In November, the FCC officially blessed the merger deal with a 3–2 vote.

However, about 13 state attorneys general and the District of Columbia have filed a court case to block the combination on antitrust grounds. The states argue that the combination of the third- and fourth-largest wireless carriers is uncompetitive and harmful to wireless consumers. New York State Attorney General Letitia James is leading the lawsuit. A district court hearing for the multistate litigation is slated to begin on December 9.

In November, the Nevada and Texas attorneys general stated that they had opted out of the multistate lawsuit after reaching a settlement with the mobile operators in October. Colorado and Mississippi also dropped their challenges.

According to TheFly’s report on December 2, Cowen & Co. analyst Paul Gallant believes that the states are likely to win in their case to stop the pending merger between Sprint and T-Mobile. He believes that the odds of the states winning the court hearing is currently 60%.

Analysts’ recommendations

Wall Street analysts are bullish on T-Mobile (TMUS) stock. Of the 21 analysts covering the stock, 16 rated it as a “buy” or “strong buy.” The remaining five analysts rated it as a “hold.” Also, the analysts’ mean price target for TMUS is $89.79. This target price implies an upside potential of 15.6% from its current price of $77.64.

T-Mobile’s peers Sprint and AT&T (T) are trading 8.4% and 4.6% below analysts’ mean price targets, respectively.

Stock returns

T-Mobile stock rose 22.1% year-to-date on December 2. Sprint has fallen 1.4%, while AT&T has risen 30.8% year-to-date. On December 2, T-Mobile closed at $77.64. This closing price was 29.5% above its 52-week low of $59.96 and 8.9% below its 52-week high of $85.22.

T-Mobile stock has reported returns of -1.2% in the trailing five days and -5.9% in the trailing month. The stock has gained 13.4% in the trailing 12 months.

Currently, T-Mobile has a market cap of $66.4 billion. Peers AT&T and Sprint have market caps of $272.6 billion and $23.6 billion, respectively.

T-Mobile stock closed 1.6% below its 20-day moving average of $78.89 yesterday. However, the stock was 2.4% and 1.8% below its 50-day and 100-day moving averages of $79.51 and $79.07, respectively. With a 14-day RSI (relative strength index) score of 42, TMUS stock is currently neutral.

On December 2, T-Mobile stock closed near its Bollinger Band midrange level of $78.89. This denotes that the stock is neither oversold nor overbought.

Please read T-Mobile Sprint Merger: Texas Leaves Lawsuit to Join Settlement and Sprint Fairly Valued at $3 per Share amid T-Mobile Merger to learn more.