T-Mobile US, Inc. TMUS recently announced that it has joined forces with Disney Studios StudioLAB to enhance its movie production process and transform storytelling with its industry-leading 5G technology. Traditionally, hard-wired connections were used in video production. The requirement of extensive physical infrastructure, limited flexibility, lack of mobility and high costs are the major challenges in the legacy procedures.

T-Mobile standalone 5G network effectively addresses these issues. TMUS brings high-speed and ultra-low latency networks backed by its innovative network slicing capabilities. The network slicing allows for the creation of multiple virtual networks on a single physical network. This enables network service providers to assign a slice or a segment of the network to different users based on their unique requirements. For instance, video streaming, movie production, and multiplayer online gaming all have different bandwidth requirements. Network slicing allows for allocating part of the network resource for such different uses, which significantly optimizes network resources and drives cost efficiency for operators.

Such capabilities acted as a game changer during Disney’s Lilo & Stitch movie production, which is set to be released in theaters on May 23. T-Mobile’s 5G enables real-time transmission of high-quality footage from onset locations in Hawaii to producers in Burbank, Calif. It ensured seamless collaboration with all the remote teams across various locations. TMUS network slicing feature, private networks and connected high-speed encoders delivered ultra-fast, stable and consistent connectivity. This accelerated the location scouting and set striking process and eliminated the need for establishing physical infrastructure and miles of wired connections. TMUS 5G and network slicing have opened up the door for movie production houses to explore new locations that were previously not accessible.

Will This Development Drive TMUS’ Share Performance?

The U.S. wireless market is highly competitive and saturated. T-Mobile has multiple wireless competitors, some of which have greater resources than it has and compete for customers based principally on service or device offerings, price, network coverage and customer service. Intensifying competition with a relatively fixed pool of customers is putting pressure on pricing. It could limit the company’s ability to attract and retain customers and may adversely affect its operating and financial results.

Amid this backdrop, T-Mobile is steadily focusing on diversifying its business by exploring new use cases for its 5G and network product offerings. The media and entertainment industry is increasingly focusing on 5G adoption to support real-time content transfer, remote collaboration, cost efficiency, and drive an immersive experience for viewers. This emerging trend can be a viable revenue-generating stream for TMUS’ comprehensive 5G portfolio.

TMUS’ Stock Price Movement

Shares of T-Mobile have gained 54.6% in the past year compared with the industry’s growth of 34.1%.

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TMUS’ Zacks Rank & Stocks to Consider

T-Mobile currently carries a Zacks Rank #3 (Hold).

Here are some better-ranked stocks that investors may consider.

InterDigital IDCC sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the trailing four quarters, InterDigital delivered an earnings surprise of 158.41%. It is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. InterDigital boasts a comprehensive portfolio of more than 33,000 granted patents and applications. The company witnessed an exceptional year in innovation in 2024, with more than 5,000 new patent filings worldwide.

CommScope Holding Company, Inc. COMM sports a Zacks Rank #1 at present. Headquartered in Hickory, NC, CommScope is a premier provider of infrastructure solutions, including wireless and fiber optic solutions, for the core, access and edge layers of communication networks. The company currently operates in three segments — Connectivity and Cable Solutions, Networking, Intelligent Cellular and Security Solutions and Access Network Solutions. CommScope has an established global manufacturing and distribution footprint. Its strategically located manufacturing hubs optimize product delivery timelines.

United States Cellular Corporation USM sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 150%.

U.S. Cellular has taken concrete steps to accelerate subscriber additions and improve churn management. The company aims to offer the best wireless experience to customers by providing superior quality network and national coverage. It is well-positioned to support the investment required for network enhancements, including the deployment of 5G technology.

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