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T-Mobile ‘Blowout’ Q1 Eases Worry Over Low-Credit Subscriber Base

T-Mobile US ( TMUS )raised 2016 subscriber and cash-flow guidance and reported Q1 revenue that topped views, sending shares in the Uncarrier-branded wireless service provider up. T-Mobile said it earned 10 cents per share in the March quarter, excluding the after-tax impact of a spectrum sale, in line with consensus estimates. T-Mobile reported a 9-cent per share loss in the year earlier period. Revenue rose 11% to 8.6 billion vs. expectations of $8.4 billion in sales. T-Mobile, controlled by Deutsche Telekom ( DTEGY ), has been gaining subscriber and revenue market share vs. Verizon Communications ( VZ ), AT&T ( T )  and Sprint ( S ) for over two years. T-Mobile’s Binge-on free video plan and other promotions in Q1 were expected to keep its momentum going. T-Mobile fell 0.8% to 40.86 in morning trade in the stock market today  after rising 2% in premarket trading. T-Mobile rose 2.4% on Monday, hitting a six-month high and nearing the 8 1/2-year high of 43.43 set on Sept. 21. One overhang on T-Mobile stock has been concern that mobile phone financing plans support lower-credit quality customers  and that a weakening economy would add company debt. Craig Moffett, an analyst at MoffettNathanson, says worries could be overblown. “T-Mobile’s blowout first-quarter results not only include falling bad debt, but also near record-low post-paid customer turnover,” said Moffett in a report. T-Mobile said it added 2.2 million subscribers in Q1, up from 1.8 million in the year earlier period. Prepaid subscriber additions jumped to 807,000 from 73,000. T-Mobile added  877,000 postpaid phone lines vs. 748,000 a year earlier. “Bad debt declined sequentially, highlighting efforts to improve credit policies,” said Mike McCormack, analyst at Jefferies, in a report. Verizon on April 21 reported Q1 results and said it lost 8,000 postpaid phone subscribers. AT&T reports Q1 earnings after the market close today. Bellevue, Wash.-based T-Mobile raised its 2016 postpaid phone subscriber forecast to 3.4 million at its midpoint of guidance, up from its earlier estimate of 2.9 million. “The net add guidance raise was not all too surprising, since the Street was already projecting 3.6 million for 2016,” said Jennifer Fritzsche, an analyst at Wells Fargo in a report. T-Mobile expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)  to be in the range of $9.7 to $10.2 billion, up from the previous guidance of $9.1 to $9.7 billion.

Free Wi-Fi Can Cost You A Ton In Terms Of Lost Privacy, Security

This year, journalist Steve Petrow got his computer hacked while using the in-flight Wi-Fi service on American Airlines. He described the experience in a USAToday column, explaining that the hacker was another passenger aboard the plane who approached him at baggage claim. The hacker told the journalist he had read his emails on the flight, along with those of other passengers. The hacker, Petrow explained, wanted to show him what it was like to have his privacy violated, since Petrow had been writing about the Apple-FBI privacy issues. Point made. Indeed, when it comes to security, Wi-Fi can be trouble. Getting into data over a shared Wi-Fi network isn’t hard to do, says Josh Wright, a Providence, R.I.-based security consultant and author of “Hacking Exposed Wireless.” “When you join a Wi-Fi Network, and I can join that same network, I know that I can attack your computer,” Wright said. “And the Wi-Fi hot spot provider, whether it’s a coffee shop or whatever, really has no interest in providing additional security for you because that’s an added cost for them.” How Hackers Can Attack While Petrow’s hacker seemed to want to make a point about privacy, other hackers often have more nefarious plans: Gary Griffiths is CEO of iPass ( IPAS ), which offers a cloud-based service that helps people connect more easily and securely to Wi-Fi hot spots worldwide.  He identified several ways hackers can invade your privacy when your Wi-Fi network is not secure. These include: Accessing and modifying your data without your knowledge, or that of the receiver. Capturing unprotected (unencrypted) data like passwords and user names to get access to your other data. Freezing up your computer and preventing you from using it. Assuming your identity (through your IP address), then modifying, rerouting or deleting your data. Inserting themselves into an online conversation and impersonating one of the parties to get information intended for someone else. “From a settings point of view, once data is leaving your computer and going into the air, it can be intercepted,” Griffiths said. “So unless you’re doing something to encrypt that data, it is vulnerable.” Mobile Wi-Fi Security Tips There are safer ways to get on Wi-Fi when you’re away from home, says Wright. For example, if you are doing work for a company and have access to its Virtual Private Network, be sure to hook into it. “VPNs provide a layer of protection between your computer and your workplace. So now all your data goes out to your workplace, instead of going out unencrypted. It offers an extra level of security,” Wright said. If you’re self-employed, it becomes harder because there’s no big company VPN to hook into. But there are options. Here are a few that Wright, Griffiths and other experts suggest: Check with the hot spot provider to see if the network is encrypted and password protected. Find out whether the apps or programs you’re using have any encryption or other protections. If not, and you have a phone with hot spot technology, consider using it instead of the free Wi-Fi. Granted, it could suck up costly data, so that decision might depend on your data plan, and how badly you need to use the Wi-Fi. Subscribe to your own VPN service. There are now many companies offering this service for monthly fees of under $10. Simply decide to not use the Wi-Fi, and wait till you get home to send sensitive information. Ways To Boost Protection At Home Once you do get home, you can do several things to keep your data safe. One of them, says Wright, is to make sure your wireless router’s encryption is set to the Wireless Protection Access 2, or WPA2, standard. Contact the manufacturer if you need instructions on how to do this. (Some have the instructions on their websites.) And don’t give the network password out to many people, such as to friends or extended family, says Wright. If you do, try to change the password at least four times a year, or just let everyone outside your immediate family use your guest network.  It’s not protected like your home network, but people will have access if they want it. Also, make a backup of your data that is not connected to your computer, or even in the house. Wright says he backs up his family’s data (like photos they don’t want to lose) onto a separate drive and keeps that in a bank lockbox. Another option, he says, is to subscribe to a third-party backup service, if you don’t mind paying the fee.  Alphabet ( GOOGL ) offers the Google Drive service, and other leaders in this area include Box ( BOX ) and Dropbox. On its website, the Federal Communications Commission shares tips for setting up your home wireless network to help ensure protection there. These include: Turning on the router’s firewall. Most routers are built with firewalls designed to filter traffic coming to your computer and protect you from online intruders. But these may be turned off when you buy the router. Change the default administrator passwords for setting the devices. These are different from the ones you use to access your wireless. Hackers may be familiar with the default admin passwords. If you’re not going to use your network for a long period, turn it off. Use anti-virus and anti-spying software on all computers connected to your network. When you’re back on the road with your computer, be sure to know the network you’re using. “So-called free Wi-Fi is hardly free if your personal information has been compromised, or your data has been intercepted,” Griffiths said. “It can be a pretty expensive proposition.”

Could Nightmare Scenario Show Up In Facebook Q1 Earnings?

Facebook ( FB ), a shining star in the tech field, will report first-quarter earnings after the close Wednesday. The company soundly beat Q4 earnings expectations on booming mobile-ad revenue, and Facebook stock is up 16% since then, though it also is down 7% since touching an all-time high shortly after that earnings report, on Feb. 2. The company carries a good IBD Relative Strength Rating of 86, putting it among the top 14% of all stocks in performance the past 12 months. Yet, it sports an Accumulation/Distribution Rating of E, indicating that the big institutions are selling more than buying. The company has posted double-digit growth in revenue, year over year, for more than four years — and analysts say another quarter of double-digit revenue growth is coming. The consensus on Facebook revenue is $5.25 billion, up 48%, says Thomson Reuters. Analysts expect EPS ex items of 62 cents, also up 48%. Facebook is cooking on several fronts, with solid growth in advertising and live video complimenting strong advertising growth in mobile. But in what could be a nightmare scenario , users apparently are tiring of posting personal reflections and updates on their daily lives. A report this month by The Information news website says Facebook is trying to reverse a double-digit decline in “original” posts by users, items about their personal lives for friends to see. The decline could be a long-term threat to Facebook’s primary moneymaker, the central portion of its website, called News Feed, where user posts appear — and which is infused with ads. The report said personal posts were down 21% from mid-2014 to mid-2015. Overall sharing reportedly fell 5.5% during that period, the article said, citing four people with knowledge of the situation. Facebook responded to the article saying the overall level of sharing has remained strong and similar to levels in prior years. But according to The Information, Facebook has set up a team in London to help develop a strategy to stop the double-digit decline. And according to an article by Bloomberg , CEO Mark Zuckerberg has spoken at Facebook staff meetings this year about the need to inspire personal sharing. Zuckerberg announced a 10-year strategy for Facebook at its annual F8 Developer Conference this month. He emphasized pushing its Messenger chat platform deeper into the business world with chatbots, enhancing Live video with virtual reality and expanding the social network to remote regions of the world. Analysts say the monetization strategy of Messenger will closely follow that of Instagram, with both platforms seen becoming multibillion-dollar businesses.