According to various reports, KeyBanc Capital Markets has downgraded T-Mobile (NASDAQ:TMUS) from sector weight to underweight, citing concerns about the carrier being “fiber deficient in a converged/bundled world.”
Though not the only solution, fiber connections are critical as customers look for faster speeds, low latency, and reliability.
In addition to carrier’s weaknesses compared to competitors in its fiber infrastructure, Keybanc’s analysis also expressed concerns over the consumer value of T-Mobile after recent pricing changes. If consumers perceive better value with another carrier, they are likely to churn.
Another reason for the downgrade, according to the research firm, was that T-Mobile is likely to benefit less than peers from potential tax changes due to OBBB (Optimized Broadband Buildout Benefits).
Notably, the downgrade comes just a month after T-Mobile unveiled its T-Mobile Fiber Home Internet service, available to more than half a million homes across the country. The service offers a five-year price guarantee, unlimited data, and symmetrical uploads/downloads. T-Mobile also says there will be no monthly equipment fees, installation charges or annual contracts.
The T-Mobile Fiber Home Internet plans include:
- Fiber 500: Equipment is included; there are no data caps and no annual contracts. Available for $60/month with autopay and a T-Mobile voice line or $75/month with autopay.
- Fiber 1 Gig: Comes with everything included in Fiber 500 and whole-home Wi-Fi with mesh devices. The monthly cost is $75 autopay and a T-Mobile voice line or $90 per month alone with autopay.
- Fiber 2 Gig: Comes with everything included in Fiber 1 Gig. The monthly cost is $90 autopay and a T-Mobile voice line or $105 alone with autopay.
The T-Mobile downgrade also comes shortly after AT&T pledged to accelerate fiber deployment in one million locations as a response to the passage of H.R. 1, signed into law on July 4 by President Donald Trump.
