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
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