An article on seekingalpha recommends to buy the stock for its long term potential. The author believes that it is well positioned to take market share from other U.S. carriers. The aggressive marketing, improved network experience and a full range of smartphones make the outlook positive. The performance in the second quarter was relatively good and there was sequential increase in revenues with addition of postpaid subscribers. Second half of 2013 is expected to be better as far as ARPU is concerned. The smartphone sales are expected to drive subscriber base and ARPU. Most importantly, the company is gearing up to take the market share from the other two giants due to less restrictive and lower priced contracts. The acquisition of MetroPCS is expected to unlock synergies by reducing the roaming and backhaul costs and the savings are expected to be between $800 million to $1 billion. Reduced employee costs and lesser bad debts also indicate improvement in efficiencies. However, there is a major risk of increased aggression by competitors like Verizone (VZ). AT&T's (T) acquisition of Leap (LEAP) is also expected to increase competition in areas where they are operating. So there is likely to be pressure on margins as the competition is likely to be more cost based. Even other analysts are predicting that the two giants are likely to find it increasingly difficult to maintain market share in view of the competition. Further, recently Spherix (SPEX) has filed a patent infringement lawsuit against the company. Hopefully, the next few quarters will indicate better performance by the company, and the acquisition of MetroPCS will improve the margins. The company has manged to expand its coverage and increase its spectrum. The current P/B and P/S is relatively low, and the author believes that there is good long term potential in the stock.
