T-Mobile Faces Looming Price War Threatening Margins and Subscriber Growth

Oppenheimer downgraded T-Mobile to Perform, warning of a looming price war that could pressure margins and curb subscriber gains. The brokerage cited Comcast's broadband price cuts and Verizon's plan to redeploy cost savings into richer handset deals as drivers of a more aggressive price environment. T-Mobile may need to accept slower share gains or lift prices, weighing on valuation. The firm lowered its long-term outlook for subscriber additions, expecting T-Mobile's share of postpaid phone net adds to fall from 38% to the mid 20s.