Revised Coverage: T-Mobile USA
Un-carrier 9.0: Revolutionizing wireless for business. This announcement shakes up the wireless industry once again. This new area of expansion is an excellent opportunity for T-Mobile to continue and accelerate their current growth. Wireless business accounts generate about $83 Billion in revenue yearly. Currently T-Mobile has about a 3% share of the sector.
We are expecting T-Mobile to grow that share to 15% by year end or an increase of $12.45 Billion in revenue. That alone would affectively grow their revenue YOY by 42%. For the business sector we expect the ABPU (Average Billings Per User) to be about $45, which is slightly lower than their consumer ABPU.
We are expecting in addition to the business sector growth, growth of about $3.3 Billion from general customers. In total revenue growth could reach $15.75 Billion or a gain of 53.2%. T-Mobile should see Excellent margin growth to about 35% EBITDA, and total revenue of $45.3 billion.
The implied potential growth T-Mobile has allows us to raise our price target to $50 per share. T-Mobile will once again dominate the competition in 2015 and we are curious to see competitors responses.