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T-Mobile & Sprint Secure Approval From CFIUS for Merger

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T-Mobile US, Inc. TMUS recently announced that it has received approval from the Committee on Foreign Investment in the United States ("CFIUS") for its proposed merger with Sprint Corporation S .

In addition, Team Telecom, which comprises the U.S. Department of Justice, Department of Homeland Security and Department of Defense, gave its green signal to the proposed merger. In this regard, Team Telecom submitted a filing with the FCC, confirming that it had no objections to the deal. Notably, the deal is projected to be completed in the first half of next year, subject to regulatory clearance as well as other customary closing conditions.

Notably, the deal will help accelerate development of faster 5G wireless networks. The New T-Mobile will have the network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable U.S. firms and entrepreneurs to continue leading in the 5G era. This is considered as a step forward in creating the New T-Mobile through which the company will bring robust competition to the 5G era.

Existing Business Scenario

T-Mobile's innovative network expansion methodologies continue to be faster and technologically sounder. The company plans to use its 600 MHz spectrum holdings to deploy America's first nationwide 5G network expected by 2020. Furthermore, it has successfully conducted Narrowband Internet of Things tests, live on its commercial network. T-Mobile is also planning to team up with dark fiber partners to backhaul small cell densification project.

Also, the acquisition of Layer3 TV will likely boost T-Mobile's streaming service. The company's improvement in mobile plans, stellar network performance, deployment of LTE-U technology and offering of attractive unlimited data are the key factors driving the performance. This is supported by improving scale, healthy free cash flow generation, strong liquidity and spectrum assets that provide credit support.

This Zacks Rank #3 (Hold) company has returned 7.1% in the past six months, outperforming the 's average growth of 3.2%.

This Zacks Rank #3 (Hold) company has returned 7.1% in the past six months, outperforming the industry 's average growth of 3.2%.

However, a highly competitive and saturated U.S. wireless market is a major headwind. Intensifying competition could limit the company's ability to attract and retain customers, and may adversely affect its operating results.

Stocks to Consider

A couple of better-ranked stocks from the same space are ATN International, Inc. ATNI and Telenav, Inc. TNAV . While ATN International sports a Zacks Rank #1 (Strong Buy), Telenav carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

ATN International surpassed estimates thrice in the trailing four quarters, the average positive earnings surprise being 138.12%.

Telenav outpaced estimates in each of the preceding four quarters, the average earnings surprise being 12.03%.

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Sprint Corporation (S): Free Stock Analysis Report

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T-Mobile US, Inc. (TMUS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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