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T-Mobile (TMUS) Unveils Lab for Device Performance Test

Zacks Equity Research

T-Mobile US, Inc. TMUS recently opened a new 20,000 square foot device lab to test performance of devices, including 5G smartphones on the operator’s network using a range of current and future technologies. Based in Bellevue, WA in the middle of the company’s Launch Pad innovation center, the new facility consists of more than a dozen testing areas.

The company’s engineers use the facility for analyzing and finetuning all things including network signal quality, data throughput, voice call and sound quality, video optimization as well as testing of the latest software, services and applications. The new facility includes several testing areas focused on sub-6 GHz 5G radio performance, 5G millimeter wave (mmWave) antenna range, software performance and hardware pressure testing, among others.

This will enable T-Mobile to ensure finest and biggest coverage possible for its nationwide 600 MHz 5G spectrum. Notably, the 5G Antenna Range room is designed for testing 5G on the mmWave high-band spectrum, which involves very high precision, while connecting to a device owing to its small wavelength. These tests will allow device users to remain connected when they are in motion. In addition, the new device lab will test out devices’ software and hardware, focusing on features like battery life, applications and user interface speeds, apart from durability of device during extreme temperatures and drops.

Existing Business Scenario

T-Mobile’s innovative network expansion methodologies continue to be faster and technologically sounder, in an attempt to stay ahead of competitors. The company plans to use its 600 MHz spectrum holdings to deploy America’s first nationwide 5G network, expected by 2020. Also, the company has successfully conducted Narrowband Internet of Things tests live on its commercial network.

Moreover, T-Mobile has finally received clearance from Department of Justice for merger with Sprint Corporation S. The deal should help accelerate development of faster 5G wireless networks. The new entity is likely to have about 127 million customers, a strong closing balance sheet and a fully funded business plan.

This Zacks Rank #2 (Buy) company has returned 6.2% in the past six months, outperforming the industry’s rally of 5.5%.

Other Key Picks

A couple of other top-ranked stocks from the Zacks Computer and Technology sector are Anixter International Inc. AXE and Fortinet, Inc. FTNT. While Anixter International sports a Zacks Rank #1 (Strong Buy), Fortinet carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Anixter International surpassed earnings estimates in each of the trailing four quarters, the average positive surprise being 14.00%.

Fortinet outpaced earnings estimates in each of the preceding four quarters, the average positive surprise being 14.38%.

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