Is T-Mobile's Starlink Satellite Expansion Reshaping the Investment Case for T-Mobile US (TMUS)?

• T-Mobile announced in early October 2025 a major expansion of its T-Satellite service in partnership with Starlink, enabling satellite-powered app-based voice, video, mapping, weather, and social media connectivity on dozens more smartphones, even in remote locations.
• This collaboration allows T-Mobile customers to stay connected using popular apps like WhatsApp and Google Maps in areas previously out of reach, illustrating a significant leap in mobile connectivity and off-grid safety.
• We'll examine how T-Mobile's expanded satellite connectivity with Starlink may enhance its long-term growth opportunities within the telecommunications market.

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T-Mobile US Investment Narrative Recap

To own shares of T-Mobile US today, I believe an investor must have confidence in its ability to grow wireless and broadband subscribers by leveraging technological innovation and national network scale, both core to its service revenue and margin expansion narrative. The expanded T-Satellite partnership with Starlink may positively impact sentiment around future growth opportunities, but does not appear to materially shift near-term catalysts, most notably postpaid subscriber growth, nor does it directly resolve the current risk of potential industry-wide churn if competitors intensify device promotions or tariffs increase handset costs.

Among recent company actions, the 16 percent increase in T-Mobile’s quarterly dividend stands out, reinforcing ongoing capital returns to shareholders and reflecting a degree of financial confidence. While enhanced satellite connectivity could boost the brand, sustainable shareholder value still depends on delivering revenue growth and stable margins in the face of competitive and regulatory pressures.

For contrast, investors should also be aware that competitive device promotions and industry churn remain risks that could...

Read the full narrative on T-Mobile US (it's free!)

T-Mobile US is projected to reach $98.3 billion in revenue and $17.3 billion in earnings by 2028. This outlook assumes a 5.3% annual revenue growth rate and a $5.1 billion increase in earnings from the current $12.2 billion.

Uncover how T-Mobile US' forecasts yield a $272.30 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members, with seven fair value estimates ranging from US$197 to US$505.73, show a wide spread in expectations. As you weigh recent innovations like expanded satellite service, consider how competitive risks might affect T-Mobile's ability to sustain margin growth.

Explore 7 other fair value estimates on T-Mobile US - why the stock might be worth over 2x more than the current price!

Build Your Own T-Mobile US Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your T-Mobile US research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free T-Mobile US research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate T-Mobile US' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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