T-Mobile (TMUS) to improve Alaska Airlines connectivity – December 7, 2021


T-Mobile US, Inc. (TMUS Free Report) was recently awarded a contract for Alaska Air Group, Inc. (ALK Free Report) for an undisclosed amount to become Alaska Airlines’ Preferred Wireless Service Provider. The collaboration has the potential to improve the seamless travel experience for air passengers with unmatched network connectivity from Un-Carrier across the country.

Based in Seattle, WA, Alaska Air Group, along with its regional partner carriers, serves more than 100 cities across North America. Under the agreement, Alaska Airlines will migrate the majority of its mobility business, including data and voice lines to T-Mobile to take advantage of rising demand for improved data connectivity. This, in turn, will likely ensure high-bandwidth, low-latency services to optimize the air travel experience, from ticketing and check-in, to on-time departures, arrivals and tracking. luggages.

In addition, T-Mobile’s extensive national network coverage will enable Alaska Airlines to leverage advanced network service offerings, such as Multi-Access Edge Computing (MEC) and private networks, to increase customer satisfaction. clients. MEC services provide seamless cellular coverage as well as better capabilities to handle cellular traffic through virtual network functions and help process huge data locally, securely and quickly. This data can be used effectively to provide ground crews and flight crews with timely information for fast aircraft turnaround times and streamlined operations for a better passenger experience.

T-Mobile’s 5G Ultra Capacity currently covers 200 million people, while its 5G extended lineup covers 308 million users across 1.7 million square miles. The Ultra Capacity 5G network is powered by the mid-band 2.5 GHz spectrum. T-Mobile’s mid-band spectrum offers an ultra-fast speed of around 300 Mbps on average with a top speed of up to 1 gigabit per second. This would be about 7.5 times faster than existing LTE networks. The mid-band spectrum is highly coveted by telecommunications companies because it allows for longer electromagnetic wave ranges and better signal penetration through walls.

While other wireless players focus on millimeter waves, T-Mobile continues to execute a multiband spectrum strategy of using low-band extended range to cover the country and ultra capacity to bring fast 5G speeds. to the maximum number of people. The company’s network has 14 times the capacity after its merger with Sprint than on a stand-alone basis, putting it ahead of the competition in terms of network capacity and customer experience. This may have been one of the main factors that contributed to its selection as Alaska Airlines’ preferred wireless service provider.

The stock has lost 13% in the past year compared to the industry’s 17.1% decline. We remain impressed with the inherent growth potential of this Zacks Rank # 3 (Hold) stock.

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A better ranked stock across the industry is Clearfield, Inc. (CLFD Free Report), sporting a Rank 1 of Zacks (strong buy). You can see The full list of today’s Zacks # 1 Rank stocks here.

Clearfield has made a surprise profit of 50.8% on average over the past four quarters. Current-year earnings estimates for the stock have risen 68.2% since January 2021. Over the past year, Clearfield has gained a solid 139.6%.

Sierra Wireless, Inc. (SWIR Free Report) carries a Zacks Rank # 2 (Buy). It has a forecast for long-term earnings growth of 12.5% ​​and delivered a surprise of 34.2%, on average, over the past four quarters.

Over the past year, Sierra Wireless has gained 6.2%. The company continues to launch innovative products for mission-critical operations that require high security and optimal 5G performance.


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