3 Telecom Stocks Seeing Action: T-Mobile’s Strong Quarter, Verizon’s New Tablet, AT&T’s Fiber Killer
T-Mobile US (NYSE:TMUS): T-Mobile shares are responding positively to the company’s solid quarterly report, as revenue of $6.69 billion grew (inclusive of MetroPCS) and beat by $120 million. T-Mobile subscriber adds beat estimates, as well, with total net adds of 1.02 million against 1.05 million in the second quarter and -152,000 from a year ago; branded postpaid net adds reached 648,000 versus the 688,000 in the second quarter and -492,000 a year ago. The full-year adjusted EBITDA guidance of $5.2 billion-$5.4 billion and cash capex guidance of $4.2 billion-$4.4 billion has been reaffirmed.
Verizon Communications (NYSE:VZ): Verizon has launched an Android tablet under its own name. The tablet, the Ellipsis 7, which was released Tuesday, is said to be the first of a series of products in the new Ellipsis family. The release has raised much speculation regarding Verizon’s intentions. The launch of products carrying the Verizon name means that the company’s products will be competing with like products from other manufacturers, such as Apple and Samsung, products which Verizon currently carries in its stores. The Ellipsis 7 appears to be an attempt to compete with similarly priced tablets like the KindleFire HDX and the Nexus 7, and will sport LTE connectivity, an HD screen, and a front-facing camera.
AT&T Inc. (NYSE:T): AT&T is preparing to roll out a 300 mbps FTTH speed tier for the city of Austin beginning in December and will follow up with 1 gbps FTTH service in mid-2014. The service is expected to challenge competitor Google Fiber and will initially be available in “parts of central, northwest, northeast, southwest and southeast Austin.” AT&T’s CEO, Randall Stephenson, has hinted that the company will be able provide the service in other locations and notes that “improvements in deployment costs and more cooperation with local municipalities” has made it easier to equip communities with FTTH.
Don’t Miss: T-Mobile: The Un-Carrier Has Arrived.