T-Mobile could bet big on the “fixed 5G” space, after it closes its planned merger with Sprint , leveraging 5G wireless technology to compete head-on with cable-based broadband and pay TV services. While the duo could have some advantages in this market, competition would also be intense, as larger rivals Verizon and AT&T are likely to have a head start in the market for fixed 5G services. In this note, we take a look at why the carrier may be looking to enter this market, and what it could mean going forward. We have also created interactive dashboards that outline our valuation estimates and forecasts for Sprint and T-Mobile. Why The Broadband Market Looks Attractive To Carriers While the U.S. broadband market has only been growing at a modest pace, with the subscriber base of major broadband players rising by about 800k over Q1 2018, entering the broadband market could prove positive for T-Mobile. For instance, the carrier would be able to offer bundled services, while limiting churn for its wireless services. Moreover, the residential broadband market sees very low competition currently, with 53% of broadband customers reportedly having only one choice of broadband provider. While cable companies have made significant headway in the broadband market compared to telecom companies, leveraging their wider reach and their faster fiber-optic-based services, it’s possible that the 5G-based services deployed by wireless carriers could give cable companies a run for their money. As carriers are likely to eventually deploy 5G networks nationwide with speeds exceeding current residential broadband connections, they could leverage this infrastructure with only incrementally higher capital investments for “fixed 5G”.