T-Mobile US exceeded Wall Street's expectation in terms of its revenue and earnings in the second quarter, and analysts think it has enough momentum to carry it through the end of 2015. However, the same analysts also have questions about whether T-Mobile needs to diversify its business in the next few years and if it will merge with another company.
T-Mobile US said it now expects to add 3.4 million to 3.9 branded postpaid net customers in 2015, up from the company's previous guidance of between 3 million and 3.5 million, which it issued in April.
T-Mobile US is partnering with Apple for its latest "Un-Carrier Amped" move and is letting customers who upgraded to a new iPhone 6 at a cost of $15 per month in device fees keep that price and swap the old phone out for the next iPhone for free.
Sprint CEO Marcelo Claure and T-Mobile US CEO John Legere have gotten into spats on Twitter before. But Claure took it up a notch when he tweeted yesterday at Legere to express his frustration and displeasure with T-Mobile's new "Jump On Demand" phone leasing program," in which customers can upgrade their phones up three times per year if they trade in their existing phones.
FCC Chairman Tom Wheeler reaffirmed his commitment to starting the incentive auction of 600 MHz broadcast TV spectrum in the first quarter of next year, and his vow to spark competition in the wider broadband market. Yet smaller carriers say the rules being crafted for the auction will not do enough to foster competition in wireless broadband.
T-Mobile US' push to increase the size of the spectrum reserve in next year's incentive auction of 600 MHz broadcast TV spectrum got a shot in the arm after the Department of Justice urged the FCC to give "considerable weight" to how large the reserve should be. However, according to a Washington Post report, T-Mobile's lobbying efforts on the issue are alienating allies in Washington and could backfire.
Verizon Communications shot back at T-Mobile US CEO John Legere, who delivered a broadside at Verizon and AT&T Mobility in his ongoing lobbying effort to get the FCC to set aside more spectrum for smaller carriers to bid on in next year's incentive auction of 600 MHz broadcast TV spectrum.
Dish Network is in talks with banks to line up between $10 billion and $15 billion of debt financing for the cash portion of a transaction to acquire T-Mobile US, according to multiple reports.
As media and networks are converging, T-Mobile US and Dish Netwiork are reportedly talking about merging. The two companies share a mindset as aggressive challenger brands with a maniacal focus on cost cutting, something both companies have to focus on because they entered their respective markets late.
After a year of speculation about a possible merger, Dish Network and T-Mobile are reportedly engaged in serious talks about a transaction, according to the Wall Street Journal.