Technological advantage as a growth driver of the telecommunications company T-Mobile

Telecommunications company T-Mobile US Inc. (TMUS) is recovering the losses of the past months. During the quarter, the company’s shares rose by over 16% and were worth $123.23 at auction on March 4. T-Mobile’s revenue for the fourth quarter grew by only 2.2%, which is slightly higher than what Wall Street analysts predicted.

However, for a telecommunications company, revenue growth is not the most important indicator, since the company sells a lot of equipment at lower prices in order to attract new customers. Sales of T-Mobile services – an indicator showing customer engagement – grew by 5.5% in the fourth quarter, twice as much as total revenue. The company also added 1.75 million postpaid subscribers in the quarter and provided 844 million postpaid phones.

One advantage of T-Mobile is the deployment of capacious 5G networks, which opens up excellent prospects for the company to grow and expand sales.

It was T-Mobile that was one of the first in the 5G midrange, while its main competitors Verizon and AT&T have long focused on the high-frequency range, requiring more base stations, and only relatively recently began projects to deploy networks in the midrange. In addition, T-Mobile is still integrating Sprint’s network and its customer base.

They planned that by the end of this year, they will complete most of the integration, and investors will see more synergies. They project the main adjusted EBITDA profit in 2022. It will grow by 10%. Free cash flow will increase to $7.1-7.6 billion, which is 30% higher than the average. It is the 5G network that will become one of the key advantages of T-Mobile, as competition in this area will grow against the background of increasing demand for high-speed Internet.