T-Mobile new Uncarrier plan could be a negative for AT&T, Verizon, says KeyBanc

KeyBanc notes that T-Mobile (TMUS) announced at an Uncarrier Event on Thursday a new Wireless unlimited data plan called Go5G. The firm sees this as neutral for T-Mobile stock today, though would point out that the company is trying to ease switching costs, which could be viewed as negative for AT&T (T)/Verizon (VZ). From the firm’s perspective, T-Mobile raised the prices on its unlimited data plans to comparable price points as AT&T and Verizon, but is providing incremental value to consumers in terms of ability to upgrade phones and switch carriers. Postpaid phone churn is very low currently, which seems as if T-Mobile is attempting to go on the offensive, KeyBanc says. Further, the firm sees the limited time price cut to the Essentials plan as a tactic to drive gross adds that have been going to Cable. KeyBanc has an Overweight rating on T-Mobile’s shares with a price target of $163.