TMUS Introduces Direct-to-Cell Services With Starlink: Stock to Gain?

T-Mobile, US, Inc. TMUS recently announced that it has opened registration for a beta program offering direct-to-cell (“DTC”) satellite service in collaboration with Starlink. The beta program is available for all of T-Mobile’s postpaid voice customers with a compatible device. Initially, it will support text messaging only with voice and data services expected to be introduced in the future.The major development commenced earlier in 2024 when TMUS and SpaceX collaborated to launch Starlink satellites with direct-to-cell technology. Starlink’s advanced direct-to-cell technology delivers consistent text, voice and data services for LTE phones worldwide, even in hard-to-reach locations where ground-network infrastructure is limited. Seamless integration of Starlink’s direct-to-cell with TMUS’s terrestrial network will likely ensure a user-friendly and intuitive experience to its users compared with other direct-to-cell services available in the market.Despite the rapid deployment of 5G infrastructure, a vast area of the United States has remained outside of the network coverage area. Remote locations and sparsely populated areas are often deemed economically non feasible for network infrastructure deployment by telecom enterprises. Moreover, geographically challenging terrain poses another layer of difficulty for setting up ground-network infrastructure. This restricts the residents of those areas from accessing to several critical services spanning from finance, education, emergency services and healthcare.Will This Collaboration Drive TMUS’ Share Performance?T-Mobile and Starlink boast a shared vision of achieving universal coverage. The collaboration has pledged to eliminate the issues with network dead zones, need for costly satellite phones and expand connectivity to more than half a million square miles across the United States which is out of network coverage. Moreover, T-Mobile and Starlink are expanding their collaborating effort to wireless providers around the world.The beta test of TMUS’ direct-to-cell service will launch in the next year. This has major significance for businesses and first responder agencies operating in remote locations. In the future TMUS plans to eventually launch services throughout the United States, Hawaii, Puerto Rico and parts of Alaska. Strategic collaboration with Starlink underscores TMUS' strong emphasis on expanding its services beyond the company’s terrestrial network coverage area to expand and support its client base. This customer-oriented strategy bodes well for long-term growth.TMUS Stock’s Price MovementShares of T-Mobile have gained 46.9% in the past year compared with the industry’s growth of 30.7%.Image Source: Zacks Investment ResearchTMUS’ Zacks Rank & Stocks to ConsiderT-Mobile currently carries a Zacks Rank #3 (Hold).Here are some better-ranked stocks that investors may consider.Keysight Technologies, Inc. KEYS sports a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications, and rising adoption of driver-assistance systems globally.InterDigital IDCC sports a Zacks Rank #1 at present. In the last reported quarter, it delivered an earnings surprise of 114.47%.It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops a wide range of advanced technology solutions used in digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.Plexus Corp. PLXS flaunts a Zacks Rank of 1 at present. It is a leading electronic contract manufacturing services provider to original equipment manufacturers in a wide range of industries. In the last reported quarter, PLXS delivered an earnings surprise of 20.92%.Zacks Naming Top 10 Stocks for 2025Want to be tipped off early to our 10 top picks for the entirety of 2025?History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2024, the Zacks Top 10 Stocks gained +2,112.6%, more than QUADRUPLING the S&P 500’s +475.6%. Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2025. Don’t miss your chance to get in on these stocks when they’re released on January 2.Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Plexus Corp. (PLXS): Free Stock Analysis Report InterDigital, Inc. (IDCC): Free Stock Analysis Report T-Mobile US, Inc. (TMUS): Free Stock Analysis Report Keysight Technologies Inc. (KEYS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks