Riding the AI trend, T-Mobile (TMUS.US) is expected to increase its EBITDA to $39 billion by 2027.

Notice that one of the largest wireless telecommunication operators in the United States, T-Mobile (TMUS.US), announced its growth targets for the next three years on Wednesday, expecting its profits to increase as customer numbers grow and new technologies such as artificial intelligence drive forward. The three major telecommunications companies in the United States are in intense competition, on one hand trying to prevent customers from switching to competitors' platforms, and on the other hand seeking new users. The second-largest mobile operator in the US, T-Mobile, is collaborating with OpenAI to develop a new platform called IntentCX, aimed at providing faster and more personalized customer service. T-Mobile stated that by accessing consumer data, IntentCX will be able to utilize meaningful understanding and knowledge of each customer to solve problems and take proactive actions on their behalf. Through this collaboration, T-Mobile will be able to use OpenAI's new o1 reasoning model, which is designed to spend more time thinking before responding. This technology is particularly strong in analyzing call records, able to identify concerns that can be addressed better, thus improving the customer experience. OpenAI's CEO Sam Altman stated in a speech at T-Mobile's capital markets event, "One of the exciting things about the next generation models is that we can offer personalized services to individual users or customers, and we can offer convenience for integrated services. These models can look at a lot of data, use a lot of tools, and provide these magical experiences that are likely to happen." T-Mobile also announced collaborations with NVIDIA Corporation, Telefonaktiebolaget LM Ericsson Sponsored ADR Class B, and Nokia Oyj Sponsored ADR to design AI-powered mobile networks, bringing advanced capabilities to wireless access networks. These companies are investing in an AI-RAN innovation center in Bellevue, Washington. The company stated that AI-RAN will greatly enhance the customer experience and meet the growing demand for faster speeds, lower latency, and higher reliability for the latest games, videos, social media, and augmented reality applications on mobile devices. T-Mobile stated that AI-RAN will use billions of data points to develop algorithms for optimal network adjustments to achieve maximum performance. NVIDIA Corporation's CEO Jensen Huang stated at the event, "We all see the same opportunity to reshape the telecom industry with fundamental technology that is reshaping one of the world's largest industries, the computing industry. Undoubtedly, this fundamental technology will fundamentally change every industry." He said, "This will be a huge growth opportunity for the telecom industry." T-Mobile CEO Mike Sievert outlined the company's financial goals. T-Mobile expects EBITDA to increase to $39 billion by 2027. From 2023 to 2027, service revenue is expected to grow at a compound annual growth rate of around 5%, reaching $76 billion. During this period, this will result in an increase in annualized EBITDA of about $10 billion. By 2027, adjusted free cash flow is expected to be between $18 billion and $19 billion. The company also announced a 35% increase in dividends to 88 cents per share. After the above forecasts were released, T-Mobile's stock price fell by 2.8% to $197.05, indicating that the company's prospects may disappoint some investors. T-Mobile's stock price hit an all-time high this week. T-Mobile also announced a new plan to prioritize first responders and ensure they have lower latency and faster, more consistent 5G speeds, especially in extremely congested network situations. Emergency personnel are increasingly relying on cellular communication and data-intensive tools such as drones and augmented reality to provide new tools for emergency situations. However, during crises, network congestion can impede critical communication. The new product will ensure faster speeds for data-intensive communication tools, providing first responders with their own network segment.