T-Mobile boosts subscriber forecast on demand for premium wireless plans
Its shares shot up 5 per cent in extended trading.
The carrier now expects to add between 6.1 million and 6.4 million subscribers in 2025, compared with its prior projection of 5.5 million to 6 million additions.
T-Mobile's postpaid Experience plans, launched in April, have resonated well with customers. These plans bundle streaming services such as Netflix and Apple TV+ and come with a five-year price guarantee.
"About 60 per cent of the new accounts that join us are taking the Experience More and Experience Beyond plan," Jon Freier, president of T-Mobile's Consumer Group, told Reuters.
The plans also include the carrier's satellite service T-Satellite that was made available to its own users and those of rivals Verizon and AT&T earlier on Wednesday.
The carrier's aggressive promotions and add-on perks have helped it maintain an edge over rivals and increase market share. T-Mobile added 830,000 postpaid phone customers in the second quarter, surpassing FactSet estimates of 700,300 additions.
It also reached a deal to sell its entire portfolio of 800 megahertz licenses to private investment firm Grain Management for $2.9 billion in cash and all of Grain's 600 MHz spectrum licenses.
The Bellevue, Washington-based company plans to close its $4.4 billion acquisition of regional wireless carrier United States Cellular on August 1, CEO Mike Sievert said on a post-earnings call, after the U.S. Federal Communications Commission approved it earlier in July.
T-Mobile, the last among the big three U.S. telecom carriers to report results, posted second-quarter total revenue of $21.13 billion, beating analysts' estimates of $21.02 billion, according to data compiled by LSEG.
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