Sector: Communication Services | Focus: Wireless Telecommunication Services
HQ: Bellevue, Washington
Financial Risks
T-Mobile faces risks from competition, cyberattacks, technological advancements, personnel retention, system failures, spectrum scarcity, regulatory changes, legal proceedings (including patent infringement, class actions, and FCC investigations), substantial debt, credit market conditions, and potential future acquisitions/divestitures. The company's ongoing arrangements related to the Prepaid Transaction and associated liabilities also pose a risk. Unfavorable outcomes of legal proceedings and regulatory inquiries could lead to material losses.
Financial Upside
T-Mobile's revenue growth is driven by increased postpaid ARPA and accounts, and prepaid revenue from the Ka'ena acquisition. The company anticipates cost synergies from acquisitions (UScellular), and gains from spectrum license transactions. Debt issuances and share repurchases are also potential sources of financial upside. Positive outcomes from joint ventures (Lumos, Metronet) and successful management of off-balance sheet arrangements could further enhance financial performance.
