Better Buy: Verizon Communications vs. T-Mobile
Verizon Communications (NYSE: VZ) and T-Mobile (NASDAQ: TMUS) exercise tremendous market power. Along with AT&T, these telecom stocks form a 5G oligopoly bolstered by high fixed costs and the fastest wireless speeds. Over time, T-Mobile has delivered higher investor returns on lower pricing for its service. Now, as 5G coverage expands, investors will have to determine whether Verizon's network quality and first-mover status will bring higher returns than T-Mobile's.
Despite slower stock growth in recent years, Verizon retains competitive advantages. It started as the company offering the "largest, most reliable" network in the 4G realm. Verizon also won the race for the fastest 5G network launch, bringing service to parts of Chicago and Minneapolis in April 2019.
Now it offers 5G to more than 200 million customers in over 1,800 cities. Additionally, it has launched its fastest 5G, 5G Ultra Wideband, in 55 cities, offering speeds as fast as 4 gigabytes per second (Gbps).
Source Fool.com
