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sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin to SteelerRaw

Member

to SteelerRaw

Re: Well that puts a damper on things...

said by SteelerRaw :

Lol that's highly unlikely.

T-Mobile still hasn't been able to turn a real profit. Their "profit" this past quarter was illusory. It was due to $731 million that they received as part of their spectrum swap with Verizon. Also of note, TMUS' cash reserves shrunk significantly during the last quarter. Deutsche Telekom is looking to lessen their exposure in the US market. Given that goal, acquiring a carrier the size of Sprint (assuming that SoftBank would even want to sell) would be a counterintuitive move.

You realize... If T-mobile wanted to they could easily slow down network investment slightly and "turn a profit". If their financial prospects were ever so dim as you rabidly insist, their stock value would have plummeted. Given their massive quarterly customer acquisitions and revenue growth they're obviously in a very, very good position right now. Their main focus is spending all available revenue on network and subscriber expansion to reach greater economies of scale.

If this is still difficult for you to understand I recommend you avoid investing.

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

IPPlanMan

Member

Agreed. They'll be able to slow down Capital Expenditures once they finish deploying LTE to replace 2G and deploy 700 MHz spectrum. They're in a really good place and offer the most consumer friendly policies of all the carriers.

SteelerRaw
@8.28.150.x

SteelerRaw to sonicmerlin

Anon

to sonicmerlin
said by sonicmerlin:

You realize... If T-mobile wanted to they could easily slow down network investment slightly and "turn a profit". If their financial prospects were ever so dim as you rabidly insist, their stock value would have plummeted. Given their massive quarterly customer acquisitions and revenue growth they're obviously in a very, very good position right now. Their main focus is spending all available revenue on network and subscriber expansion to reach greater economies of scale.

If this is still difficult for you to understand I recommend you avoid investing.

Thank you for your recommendation. My portfolio has been doing reasonably well to date so I believe that it's best for me to continue thinking for myself and trusting my own analyses.

You realize that TMUS has apparently already been doing as you've suggested as their Q2 CAPEX was down both sequentially and Y-o-Y. This, despite them currently having the fewest POPs covered of the four major carriers and they already had the smallest CAPEX out of the four. As for their stock plummeting, there's almost no chance of that happening with the acquisition talks that have surrounded them for some time now.
sonicmerlin
join:2009-05-24
Cleveland, OH

sonicmerlin

Member

T-mobile's projected capes for 2014 is between $4.3 billion and $4.6 billion, compared to $4.2 billion last year. They averaged $2.7 billion/year from 2010-2012. This might shock you, but their capes is smaller than AT&T and Verizon's because they have a smaller customer base. Right now they're sacrificing short term profits, which they would be making quite a bit of if their capex and marketing were at normal levels, to expand their network as fast as possible.

They've managed over 1 million net adds for the past 5 quarters. 1.5 million for each of the last 2. Their revenue keeps on growing. Their churn is at 1.7%, Down From 2.5% in 2012. Compare that to Sprint, who keeps on losing customers every quarter. T-Mobile has a lot of momentum right now, and they know expanding their coverage is crucial to keeping their new additions. But overall they're in a very good position to reap profits in the long term.