Who is T-Mobile

Asset Management Staff on

Briefly

T-Mobile US is a facilities-based wireless telephone carrier. The company is the result of the merger of Deutsche Telekom's T-Mobile wireless division with small regional wireless carrier MetroPCS on April 30, 2013. The company offers national wireless voice and data services to consumers and businesses in the U.S, and simple no-contract service plans.

CEO John Legere has been with T-Mobile for over six years, becoming president and chief executive in September 2012. His most recent experience was with telecom network provider Global Crossing. He was named CEO of Global Crossing just months before that company went into bankruptcy in January 2002 and remained on as CEO through the sale of the company to Level 3 Communications in October 2011.

Deutsche Telekom effectively controls T-Mobile with a 65% ownership interest, and DT's interests may diverge from those of minority shareholders. While it has pledged to remain involved in TMO, this could always change and even the perception that DT is pulling out could impact TMUS shares. Management could also become distracted by negotiations around the Sprint merger. TMO continues to have a substantial debt burden. This could slow needed capital investments in its network, as well as future spectrum purchases or other acquisition opportunities.

TMO competes directly with services offered by the major national carriers, AT&T, Verizon and Sprint. AT&T and Verizon are larger and can draw on many more resources than TMO. The large carriers can also offer bundles of services, including wireless, landlines, high-speed internet, and, increasingly, video, which customers may prefer to a stand-alone wireless service.

The company's results are seasonal, with the first and fourth quarters strong and the second and third quarters weaker. The seasonal decline in subscriber acquisitions and concomitant softer revenue growth at midyear may mislead investors into misinterpreting the company's results and share price volatility.

TMO's unlimited service business model and low-cost operating structure is oriented to appeal to price-sensitive consumers. Some might call this the lower-tier or 'subprime' end of the market - the same consumers who have been hit hardest by a weak economy. In the company's favor is its 'Un-carrier' marketing campaign, competitive pricing and the high value that consumers put on having a wireless telecommunications link.

Our Offerings

Bitesize Bites is a public daily mini-podcast covering one item for those who want it fast. Bitesize Bites are designed to be "Think About It" items that should prompt immediate thought and action by many.

Connecting Dots is a public daily podcast that takes one or more topics and ties them together with logical and organized thought. Connecting Dots explains history, current events, and forecasts in a way that will make most nod their head with the realizations often not seen or thought of previously.

The TrueStar Podcast is a weekly public podcast by Paul and Paul, Paul Grant Truesdell the Chief Executive Officer and Paul Grant Truesdell, II the Chief Technology Officer. Paul and Paul's conversations are amazing, entertaining, and will open a lot of eyes.

The Blog is a public daily posting of a few items being discussed among the asset management team, changes, updates, and news about the firm, as well as a brief opinion or forecast.

Deep Dive is a weekly client only podcast where each episode is focused on a single topic and challenges the listener to actively participate in Connecting Dots for their individual benefit.

Current is a daily client only listing of items being discussed among the asset management team at TrueStar Advisors. Brief ideas and comments as to what is "current" and a focus of attention provides a bit of insight as to what is going on with your management team.

Get Started