T-Mobile US, Inc.
) in its first anniversary of LTE launch has reportedly announced
a work upgrade program which would involve upgrading its
entire2G/EDGE networkinto 4G.
The company's 4G LTE is currently serving 210 million people
in 273 metro areas in the U.S. It expects 50% of its network
upgrade program to be covered in 2014. It is also hunting for new
700 MHz A-Block spectrum for deploying 4G LTE this year. T-Mobile
expects its entire network to run on LTE platform by
Unprecedented growth in high-speed mobile Internet traffic, in
particular for wireless data and video, has transformed the
telecommunications industry into the most evolving, inventive,
and keenly contested space. In addition, the emergence of
wireless broadband technology has created several new service
areas, which offer huge growth potential. As a result, it remains
imperative for carriers like T-Mobile to build in their network
capabilities to attract more customers.
We believe that transformation into LTE network will boost
T-Mobile's growth in the telecom industry. The current scenario
in the wireless industry is more skewed toward data and video
services than voice. Any new network standard aims at faster data
connectivity, quick video streaming with high resolution and rich
Further, massive growth in mobile data usage is also giving
rise to new network technologies to provide seamless service.
Smartphone and tablet users are progressively uploading video
content which is driving more revenue per unit for telecom
So to stay competitive among notable players like
Verizon Communications Inc.
) it is important for the company to upgrade its infrastructure
according the current demand trend.
However, the company would also need to increase spending on
capital expenditures in order to update its networks with the
latest technologies. According to reports, in 2013, telecom
carriers' expenditures rose 6% year over year and are expected to
rise at a CAGR of 2% from 2012 to 2017, totaling a significant
$355 billion by that time.
T-Mobile US currently has a Zacks Rank #3 (Hold).
SPRINT CORP (S): Free Stock Analysis Report
AT&T INC (T): Free Stock Analysis Report
T-MOBILE US INC (TMUS): Free Stock Analysis
VERIZON COMM (VZ): Free Stock Analysis Report
To read this article on Zacks.com click here.