T-Mobile Starts $1.5 Billion Stock Buyback

T-Mobile US is starting a $1.5 billion stock-repurchase program after merger efforts with Sprint collapsed, according to Bloomberg.

The buyback program, the first in T-Mobile’s history, is a milepost in a five-year turnaround plan focused on key areas like cash flow and the number of subscribers, company executives said at an investor conference. Also, the stock had declined more than 9 percent from a June high of $68.32 as prospects of a Sprint deal faded, creating a buying opportunity.

T-Mobile, the third-largest U.S. wireless carrier, has been the fastest growing member of its peer group, fueled by offers like no-contract service plans and free Netflix. But the pace of market share gains is under pressure as larger rivals Verizon and AT&T have responded with unlimited data plans aimed at people looking for cheaper ways to support their mobile video habits.

Deutsche Telekom, the controlling owner of T-Mobile, will participate and could add as much as 2 percent to its majority stake.