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T-Mobile raises annual forecast for subscriber additions on bundled data plans demand
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T-Mobile raises annual forecast for subscriber additions on bundled data plans demand
Jul 31, 2024 4:16 AM

July 31 (Reuters) - T-Mobile US ( TMUS ) raised its

full-year forecast for monthly bill-paying phone subscriber

additions on Wednesday as more customers opted for its

discounted unlimited plans that include streaming perks.

As competition builds in the telecom sector, carriers in the

United States have turned to bundling streaming services with

high-speed internet plans to bring in more customers who are

looking to get the best deals.

T-Mobile's Go5G Next and Go5G Plus plans, which include

Netflix ( NFLX ) and Apple TV+ along with premium data

plans have resonated well with customers.

The company now expects to add between 5.4 million and 5.7

million subscribers in 2024, compared with its previous forecast

of 5.2 million to 5.6 million subscriber additions.

T-Mobile raised prices for several of its legacy phone plans

in May citing rising costs, which will reflect in customers'

billing cycle starting June 5.

The price hikes not only push customers to higher-end 5G

plans, but also provide the flexibility to reach forecast

targets amid a tough growth environment.

T-Mobile added 777,000 postpaid phone customers in the

second quarter, the highest among peers, beating FactSet

estimates of 642,600 additions.

Verizon added 148,000 monthly bill-paying wireless

phone subscribers, while AT&T ( T ) posted 419,000 additions in

the second quarter.

T-Mobile now expects adjusted free cash flow for the year to

be between $16.6 billion and $17.0 billion, an increase from its

prior forecast of $16.4 billion to $16.9 billion.

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