T-Mobile’s cheaper plans, 5G edge help lift 2022 subscriber look again

Oct 27 (Reuters) – T-Mobile US Inc ( TMUS.O ) on Thursday raised its annual forecast for bill-paying monthly subscribers for the third time, as more Americans pick up its superior 5G services and cheaper plans with rival AT&T. (TN) and Verizon (VZ.N).

Shares in T-Mobile rose 3% in extended trading after the company also beat third-quarter estimates for wireless phone growth, helped by discounts on smartphones and low-cost plans in the industry.

It also has an edge in the 5G game, thanks to the chunky 2.5Ghz mid-band spectrum that Sprint will buy for $23 billion in 2020 to rival Verizon and AT&T’s mid-band build that offers a good balance. capacity and coverage.

So, while other telcos are incurring huge costs in 5G deployments, T-Mobile’s rollout has been less expensive and beneficial in managing costs, CFRA analyst Keith Snyder said.

A T-Mobile executive told Reuters the push back in international travel, strong demand for its pricier $85 Magenta Max plan, which is bundled with streaming services like Apple TV+, has pushed subscriber additions and helped with wireless add-ons, core earnings and adjusted fees. to flow

“T-Mobile has done a very good job of offering more expensive plans to clear costs,” said Anshel Sag, an analyst at Moor Insights & Strategy.

The company added 854,000 monthly paid phone subscribers in the third quarter, above FactSet estimates of 724,800, and 578,000 high-speed Internet customers.

In comparison, AT&T added 708,000 postpaid phone subscribers and Verizon, the largest US carrier by subscribers, only added 8,000 customers in the same period.

T-Mobile expects between 6.2 million and 6.4 million monthly paid network subscribers in 2022, up from a previous forecast of 6 million to 6.3 million.

Reporting by Eva Mathews in Bengaluru; Review by Shinjini Ganguly

Our standards: Trust in the Thomson Reuters Principles.

About Franklin Cheatham

Check Also

The 12 best phones to give holiday gifts in 2012

This is the time of year when all the big players release the latest and …