MetroPCS Communications Inc.
) - one of the leading prepaid operators in the U.S. market -
launched 4GLTE-based Huawei Premia 4G smartphones at an
affordable price of only $149.
The new handset features 4.0-inch Corning Gorilla Glass screen
display with 5.0 megapixel auto-focus camera. The new
device runs on
) widely used Android 4.0 platform and is also integrated with
1.5GHz dual-core processor and 1GB RAM, thereby delivering faster
The new device comes with a $40 per month 4GLTE prepaid plan
that offers unlimited talk, text and data. Moreover, the users
can avail of MetroPCS's popular Rhapsody unlimited on-demand
music at $5 per month.
MetroPCS is continuously expanding its 4GLTE smartphone
portfolio to drive its 4GLTE service growth. The handsets are not
subject to annual contracts. The U.S. 4GLTE market is mainly
dominated by big telecom players like
Verizon Communication Inc.
), who offer high-end smartphones at a minimum 2-year service
So, by offering no-contract handsets with affordable service
plans will create better opportunity for MetroPCS to drive its
device revenue. This will also trigger subscriber growth as most
customers are not keen on entering a long-term contract.
In the recently concluded quarter, earnings per share of 9
cents, failed to meet the Zacks Consensus Estimate of 13 cents,
decreasing 43.8% from 25 cents in the year-ago quarter.
Total revenue climbed 3.7% year over year to $1,284.3 million
in the fourth quarter, beating our expectation of $1,274.0
million. The outperformance was supported by a solid contribution
from the equipment segment.
MetroPCS has a Zacks Rank #3 (Hold).
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