T-Mobile and Verizon Make a Deal

Let's look at what investors need to know about T-Mobile's recent spectrum deal with Verizon.

Jan 11, 2014 at 10:45AM

Last year was a huge one in the U.S. telecom space for a number of reasons. In more ways than one, 2013 could go down as the year of the comeback as several key names bounced back and more.

However, perhaps no storyline has had a greater impact on this key domestic market than the resurgence of the recently revived T-Mobile (NASDAQ:TMUS). In the wake of its failed deal with telecom giant AT&T (NYSE:T), the then-struggling T-Mobile was given roughly $4 billion in cash and spectrum for the deal failing to go through.

AT&T might never forgive itself.

T Mobile Logo

Source: T-Mobile.

T-Mobile shakes things up
In part, the funds for the failed AT&T merger have helped T-Mobile claw its way back into the competition. In fact, with some of its recent plan pricing and promotions, T-Mobile has ironically become one of the primary agitators for AT&T.

Recently, T-Mobile and Verizon (NYSE:VZ) reached a deal in which T-Mobile will purchase additional low-frequency spectrum from Verizon. The deal will result in roughly $2.4 billion in proceeds for Verizon. Not bad for a day's work.

In the video below, tech and telecom analyst Andrew Tonner examines the deal between Verizon and T-Mobile and T-Mobile's growing influence in the U.S. telecom industry as a whole.

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Fool contributor Andrew Tonner has no position in any stocks mentioned, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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