Yahoo Finance T-Mobile (TMUS) Secures Long-Term Contract With U.S. Navy
T-Mobile, Inc. TMUS recently announced that it has entered into a long-term agreement with the U.S. Department of the Navy as part of the Spiral 4 contract which is valued at $2.67 billion. The agreement will remain in effect for 10 years. In response to the evolution in industry standards and technological innovation, the U.S. Navy decided to replace the previous Spiral 3 contract. Per the deal, agencies under the Department of Defense will gain access to T-Mobile wireless services and equipment for various use cases.
The availability of robust wireless connectivity is vital for defense applications. Inconsistent and unreliable communication channels can make defense and federal civilian agencies susceptible to various threats. Defense personnel often have to work in hostile situations, and maintaining connectivity in such harsh environments is of absolute necessity. Communication delays can undermine situational awareness in critical situations, slow down decision-making, and reduce overall operational efficiency.
T-Mobile has developed a comprehensive solution suite to cater to such diverse use cases in government operations. Under the recent agreement, the Department of Defense will leverage T-Mobile's extensive 5G network, which offers state-of-the-art wireless solutions. This includes voice, data and fixed wireless services, Internet of Things and mobility management solutions. TMUS’ 5G Advanced Network Solutions boasting leading edge 5G services such as 5G private, hybrid networks will significantly bolster network capabilities.
T-Mobile is a prominent player in the SpaceX global partner ecosystem, sharing a common target of achieving universal coverage. Earlier this year, TMUS joined forces with SpaceX to launch Starlink satellites with Direct-to-Cell services in the United States. The latest contract with TMUS may also give the government entities the opportunity to leverage the joint capabilities of T-Mobile’s network and SpaceX’s satellite services in future.
T-Mobile’s offerings also include a 5G fixed wireless solution called Government Internet. The fast, reliable solution can be deployed as the main Internet connection or can also serve as a backup. Its advanced security, encryption and VPN support features ensure a secure connection. In addition to a fast and easy setup, it also offers 24/7 expert support to mitigate any disruption. TMUS is also working with 3rd Eye Technologies to streamline the captures and storage of SMS and MMS message logs in compliance with federal message archiving laws.
With TMUS’ future-proof network architecture and an extensive product portfolio, government agencies will be well equipped to address their mission-critical communication requirements. The Spiral 4 contract award underscores the growing credibility of T-Mobile’s 5G networks across diverse use cases. This will likely boost its commercial prospects.
T-Mobile is benefiting from industry-leading postpaid customer growth with a record-low churn rate. Its dedicated 5G spectrum assets with superior propagation and a strong emphasis on customer experience are supporting the top line. Its Ultra Capacity 5G network is powered by the mid-band 2.5 GHz spectrum, which delivers superfast speed, covers 300 million people and ensures a superior 5G experience.
Shares of the company have gained 31.9% in the past year compared with the industry’s growth of 16.5%.
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Zacks Rank and Stocks to Consider
T-Mobile currently carries a Zacks Rank #3 (Hold).
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NVIDIA is the worldwide leader in visual computing technologies and the inventor of the graphic processing unit. Over the years, the company’s focus evolved from PC graphics to AI-based solutions that support high-performance computing, gaming and virtual reality platforms.
Arista Networks, Inc. ANET, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 15.68% and delivered an earnings surprise of 15.39%, on average, in the trailing four quarters.
It holds a leadership position in 100-gigabit Ethernet switching share in port for the high-speed datacenter segment. Arista is increasingly gaining market traction in 200 and 400-gig high-performance switching products and remains well-positioned for healthy growth in data-driven cloud networking business with proactive platforms and predictive operations.
Silicon Motion Technology Corporation SIMO, sporting a Zacks Rank #1 at present, delivered a trailing four-quarter average earnings surprise of 4.72%.
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