Can T-Mobile's Latest Fiber Plans Attract More Broadband Customers?

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Can T-Mobile's Latest Fiber Plans Attract More Broadband Customers?

T-Mobile US, Inc. TMUS has expanded its fiber Internet services by launching its fastest plan yet, a 5 Gig package with a 10-year price guarantee. Priced at $90 per month with AutoPay, the new offering reflects the company's efforts to strengthen its position in the competitive broadband market through higher speeds and stable pricing.

T-Mobile Fiber's 5 Gig plan offers equal upload and download speeds through a full fiber-optic connection. It is designed to handle online gaming, 4K streaming, video calls and multiple connected devices at the same time. The 10-year price guarantee allows customers to keep their monthly Internet price unchanged for a decade, protecting them from regular price increases.

The company also offers three other fiber plans, including Fiber 300 at $35 per month, Fiber 1 Gig at $55 and Fiber 2 Gig at $70, all with AutoPay, excluding taxes and fees. Customers receive a Wi-Fi router, free professional installation, unlimited data and no annual contract or monthly equipment fees. Select plans also include promotional rewards and a mesh Wi-Fi extender for better coverage.

These offerings are expected to support T-Mobile's broadband growth and attract more customers. By offering faster speeds and stable pricing, the company aims to meet growing household Internet demand and expand its fiber customer base.

How Are Competitors Focusing on Fiber?

T-Mobile faces stiff competition from AT&T Inc. T and Verizon Communications, Inc. VZ. AT&T is continuing to scale up its fiber-optic network to strengthen broadband coverage and meet rising demand for high-speed Internet. The company has joined hands with Global Infrastructure Partners and CPP Investments to combine its fiber ventures and accelerate network deployment across the United States. AT&T is focusing on delivering faster, more reliable connectivity and increasing its customer base through integrated fiber and 5G services.     

Verizon is advancing its fiber broadband business through network investments and strategic partnerships to bring high-speed Internet to more homes and businesses. The company has signed a multibillion-dollar agreement with Corning Incorporated GLW to secure more than 80 million miles of optical fiber for network expansion and AI infrastructure. Verizon is upgrading its broadband infrastructure to improve network capacity, enhance service reliability and meet growing demand for high-speed connectivity.

TMUS’ Price Performance, Valuation & Estimates

T-Mobile has plunged 24.6% over the past year against the industry’s growth of 114%.

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From a valuation standpoint, T-Mobile trades at a forward price-to-sales ratio of 1.67, below the industry tally of 6.23.

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TMUS’ earnings estimates for 2026 have increased 5.2% to $11.44 per share over the past 60 days, while the same for 2027 have risen 1.5% to $13.61.

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T-Mobile currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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T-Mobile US, Inc. (TMUS): Free Stock Analysis Report
 
AT&T Inc. (T): Free Stock Analysis Report
 
Verizon Communications Inc. (VZ): Free Stock Analysis Report
 
Corning Incorporated (GLW): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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