A recently-announced merger between T-Mobile US Inc. (NYSE: TMUS) and Dish Network Corp. (NASDAQ: DISH) has once again showcased the consolidation within the major U.S. cable and telecom industries. This comes after almost a year earlier when Sprint Corp. (NYSE: S) dropped its bid for T-Mobile after regulatory resistance denied the acquisition of the 4th largest U.S. carrier. In light of this, there might appear to be further consolidation in the market, as the giants of the industry try to win majority market share. The companies on our list are currently trading at a discount, with most of the trading ratios below averages.
Telephone and Data Systems Inc. (NYSE: TDS) – $29.91
Wireless Telecommunications Services
Telephone and Data Systems, Inc. (TDS) is a telecommunications service company with wireless operations. The Company provides wireless products and services; cable and wireline broadband, TV and voice services, and hosted and managed services. TDS conducts its wireless operations through its subsidiary, United States Cellular Corporation (U.S.Cellular). TDS provides wireline services, cable services and hosted and managed services (HMS), through its subsidiary, TDS Telecommunications Corporation (TDS Telecom).
- Market Cap: $3,231,511,544
- P/B: 0.79x
- EV/Revenue: 1.02x
- EV/EBITDA: 7.05x
Sprint Corp. (NYSE: S) – $4.75
Wireless Telecommunications Services
Sprint Corporation offers a range of wireless and wireline communications services to consumers, businesses and government users. The Company develops, engineers and deploys technologies, including the first wireless fourth generation (4G) service from a national carrier in the United States; offering mobile data services, prepaid brands including Virgin Mobile USA, Boost Mobile, and Assurance Wireless; instant national and international push-to-talk capabilities, and a global Tier 1 Internet Service.
- Market Cap: $18,844,274,323
- P/B: 0.87x
- EV/Revenue: 1.40x
- EV/EBITDA: 6.84x
United States Cellular Corp. (NYSE: USM) – $39.16
Wireless Telecommunications Services
United States Cellular Corporation (U.S. Cellular) is a wireless telecommunications service provider. The Company operates in one segment, wireless operations, and all of its wireless operating markets are in the United States. At December 31, 2013, U.S. Cellular’s provided wireless voice and data services to approximately 4.8 million customers in 23 states. U.S. Cellular is a majority-owned subsidiary of Telephone and Data Systems, Inc. U.S. Cellular uses roaming agreements with other wireless carriers to provide service to its customers in areas not covered by U.S. Cellular’s network.
- Market Cap: $3,290,835,075
- P/B: 0.95x
- EV/Revenue: 1.05x
- EV/EBITDA: 9.67x
VimpelCom Ltd. (NASDAQ: VIP) – $6.37
Wireless Telecommunications Services
VimpelCom Ltd. (VimpelCom) is a Netherlands-based holding company, which is a global provider of telecommunications services in 14 countries. The Company operates through six segments: Russia, Italy, Algeria, Africa & Asia, Ukraine, and the Commonwealth of Independent States (CIS). The company provides voice and data services through a range of traditional and broadband mobile and fixed-line technologies. As of December 31, 2014, the Company had 222 million mobile customers.
- Market Cap: $11,190,377,330
- P/B: 2.23x
- EV/Revenue: 1.41x
- EV/EBITDA: 3.48x
Millicom International Cellular SA (OTC: MIICF) – $81.31
Wireless Telecommunications Services
Millicom International Cellular S.A. (Millicom) is an international telecommunications and media company providing mobile, voice, data, cable television, broadband and financial services to over 50 million customers in emerging markets in Latin America and Africa under the Tigo brand. The Company operates its businesses in Costa Rica, El Salvador, Guatemala and Honduras in Central America; in Bolivia, Colombia and Paraguay in South America; in Chad, the Democratic Republic of Congo, Ghana, Rwanda, Senegal and Tanzania in Africa.
- Market Cap: $8,272,398,090
- P/B: 3.53x
- EV/Revenue: 2.16x
- EV/EBITDA: 6.63x
