T-Mobile US Inc (NASDAQ:TMUS) Takes Heat for Unlimited All You Can Watch “Binge On”


One would think that everyone is loving T-Mobile US Inc.’s (NASDAQ:TMUS) new ‘Binge On’ video viewing feature which allows unlimited data useage for a plethora of video services. These services include Netflix (NASDAQ:NFLX), HBO, Hulu and more. It is certainly a driving force in getting customers of other mobile services to switch over to T-Mobile US Inc (NASDAQ:TMUS).

However, the Electronic Frontier Foundation (EFF) is not pleased, and they are calling for an FCC investigation of the service. They claim that T-Mobile US Inc (NASDAQ:TMUS) isn’t using their technology to optimize the video that is part of the ‘Binge On’ feature, and they are also throttling the stream of video down to 1.5Mbps which we all know isn’t sufficient for quality video viewing no matter how small the device. This has caused issues with videos played at over 480p.

Some customers have complained but it seems as though more are very pleased with Binge On, and the fact that the usage doesn’t count against their data limits.

The stock decreased 0.43% or $0.17 during the last trading session, hitting $38.95. Approximately shares traded hands. TMUS shares have risen 0.15% since June 1, 2015 and are currently uptrending. It has outperformed the S&P500 by 2.28%.

From a total of 2 analysts covering T-Mobile US (NASDAQ:TMUS) stock, 0 rate it a “Buy”, 1 a “Sell”, and 1 a “Hold”. This means that 0 of the ratings are positive. The highest target price is $41.50 while the lowest target price is $40. The mean of all analyst targets is $40.83 which is 4.83% above today’s ($38.95) stock price. T-Mobile US was the topic of 4 analyst reports since August 3, 2015 according to the firm StockzIntelligence Inc. Vetr downgraded shares on September 22 to a “Sell” rating. Macquarie Research maintained TMUS stock in a recent report from August 3 with a “Neutral” rating.

The institutional sentiment decreased to 1.17 in Q2 2015. It’s down 0.26, from 1.43 in 2015Q2. The ratio is negative, as 64 funds sold all their T-Mobile US Inc shares they owned while 97 reduced their positions. 50 funds bought stakes while 139 increased their total positions. Institutions now own 265.99 million shares which is 11.10% less than the previous share count of 299.19 million in 2015Q2.

Quaker Capital Investments Llc holds 18.91% of its total portfolio in T-Mobile US Inc, equating to 801,161 shares. Seminole Management Co. Inc. owns 5.00 million shares representing 8.88% of their total US portfolio. Moreover, Sarbit Advisory Services Inc. has 8.33% of their total portfolio invested in the company, equating to 1.36 million shares. The New York-based Andor Capital Management L.L.C. has a total of 7.82% of their portfolio invested in the stock. Tyrian Investments L.P., a New York-based fund reported 552,300 shares owned.

T-Mobile US, Inc., together with its subsidiaries, provides mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands. The company offers voice, messaging, and data services in the postpaid, prepaid, and wholesale markets. It also provides wireless devices, such as smartphones, tablets, and other mobile communication devices, as well as accessories, which are manufactured by various suppliers. It offers services, devices, and accessories through its owned and operated retail stores, as well as through its Websites. T-Mobile US, Inc. also sells its devices and accessories to dealers and other third party distributors for resale through independent third-party retail outlets and various third-party Websites. The company provides its services under the T-Mobile and MetroPCS brands. As of December 31, 2014, it provided services to approximately 55 million customers. T-Mobile US, Inc. was founded in 1994 and is headquartered in Bellevue, Washington. T-Mobile US, Inc. operates as a subsidiary of Deutsche Telekom AG.