T-Mobile Has Performed Well, but Long-Term Differentiation in Telecom Is Difficult

T-Mobile’s brand and reputation, coupled with a strong network and spectrum position, should drive strong market share gains over the next couple of years. In the longer term, however, we expect AT&T and Verizon to be able to match T-Mobile, and that market share will stabilize among the three carriers. While competition is currently elevated, a rational competitive landscape should emerge, allowing for steady price increases and expanding cash flow.