T-Mobile Coverage Update (Dish + T-Mobile)

Tomorrow will be filled with buzz about the potential T-Mobile + Dish. This potential merger (We think it will happen, and it will be welcomed and approved by the FCC) will be huge for both T-Mobile and Dish. Dish owns a tremendous amount of spectrum and hasn't done much with it, if only there were a company rapidly and efficiently deploying LTE nationwide to help out? 

T-Mobile is growing incredibly fast, we estimate 2.4M net adds in Q2, they have 286 million POPs of LTE and are growing everyday. In fact, every week we notice first hand improvements with the network and consistently breakneck speeds. Unfortunately because T-Mobile is investing so much in there towers, they don't have huge mounds of cash like dumb and dumber (Thats for you John). Having a partner like Dish would provide them with tremendous amounts of spectrum (Valued at $25 billion by Barron's and is about 50mHz) and in turn allowing them to have an even greater data capacity and a larger network. Dish owns a variety of spectrum but majority is in the 700mHz and 1900-2000 mHz which is good for T-Mobile since they deploy spectrum very close to that. 

So what is in this deal for Dish? Simply, T-Mobile could provide great cash flow in the future as it grows. But having a partner to bundle unique services could be very helpful for Dish (See Verizon and Frontier's partnership). John Legere has dropped hints that he wants to enter the home internet market and Dish would be able to expand their Dishnet with T-Mobile's network (And competitive high speeds). 

What terms should you expect? 

  •  Dish and T-Mobile under ticker TMUS
  • John Legere will be CEO and company name is T-Mobile (John has said he and the name will stay) This is the only way we support the deal- John Legere is T-Mobile's best asset
  • Deutsche Telecom (TMUS Parent) will sell a majority of its shares
  • Combined value will be $70 Billion

What should happen?

Both companies will accelerate their growth (Especially T-Mobile) and in turn investors will see value in this merger/acquisition.

Targets:

$50 Target                           BUY