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.