Tomahawk, WI 11/15/2013 (BasicsMedia) –  T-Mobile US Inc (NYSE:TMUS) with a market cap of $20.69 billion has not enjoyed its stay in business in the past four years. The company has lost a big subscriber base in the years in that had it not been for its solid subscriber count, it would currently be out of business. TMUS needs to regain grounds by adding more subscribers to its network. More importantly, investors are thirsty for profits and this leaves the company with no other alternative but to improve its operations.

In order to add more subscribers to its network, T-Mobile US Inc (NYSE:TMUS) needs a bigger spectrum. Moreover, bandwidth-hungry customers have continued to ask for more in terms network capacity. Winning back lost ground is always an uphill task for any company. It calls for proper execution of strategies to ensure that results are obtained rapidly and at the most favorable cost.

Competition facing TMUS

T-Mobile US Inc (NYSE:TMUS) has started turning right corners in its efforts at rebound. The fact that it’s faced with bigger rivals such as Verizon Wireless, AT&T and Sprint is something that calls for the company’s management to not only move with speed in getting the operator back on its feet, but also cut down on expenses. TMUS’ rivals are doing exceedingly well. Sprint for instance is underway in its network expansion and upgrade. The same is true for AT&T which has recently landed lucrative deals in the industry. Having bought itself out of Vodafone, Verizon Wireless is in spirited efforts to upgrade its 3G network and expand its 4G LTE coverage in the U.S. As such, the competition is fierce for TMUS, but this is not the time for this company to herd cats considering the past painful four years.

Common stock offering to raise $1.6 billion

TMUS is in dire need of money to finance its rebound efforts. The company is now looking at new investors to chip in with their dollars in secondary public offering of common stock. T-Mobile US Inc (NYSE:TMUS) is offering fresh shares in the market which are expected to help the company generate more than $1.6 billion in proceeds. The company is offering about 66.2 million shares at the cost of $25 a piece. It can be seen that at $25 a share in the offering, the shares are discounted by about 2% if viewed against its previous closing price before the offering announcement.

From the proceeds raised out of this offering, T-Mobile US Inc (NYSE:TMUS) is looking at increasing its spectrum. As stated earlier, a bigger spectrum is healthy for the company’s rebound in this red-hot market. Today, customers are demanding for more in speed and coverage. The company that has the two has the customers, and thus the dollar. It’s no wonder that Sprint, Verizon and AT&T are leading in spectrum purchase as well as mergers to boost their spectrum.

T-Mobile US Inc (NYSE:TMUS) is the fourth largest mobile operator in the U.S. The company’s 74% stake is in the hands of Deutsche Telekom. This holder’s take will be trimmed to 67% following the secondary offering. The announced addition of 66.2 million shares constitutes roughly 9% of TMUS’ existing outstanding shares. In think equity funding as T-Mobile US Inc (NYSE:TMUS) has chosen is very much in order, rather than increasing its debt base through debt funding for its growth.

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