T-Mobile US remains top telco pick at Gabelli
Gabelli notes TMUS decommissioned the CDMA portion of the MetroPCS networks in Atlanta and Detroit metro areas, with only three major market left, which should free up spectrum that could be used to further improve the speed and quality of the T-Mobile network, and enable the co to realize synergies from running a single network infrastructure. They believe that T-Mobile US should command a 7.0-7.5x FY EBITDA multiple in a buyout/consolidation scenario. While, in the near-term, the industry will likely remain at four national players, in the long-run, they would expect Sprint (S) and T-Mobile to come together. Other potential acquirers could include DISH (DISH), Comcast (CMCSA), foreign carriers, and/or private equity.