Oct 23 (Reuters) - T-Mobile said on Thursday it
added 1 million wireless subscribers who pay a monthly bill in
the third quarter that also topped estimates and raised its
annual forecast, powered by iPhone upgrades and premium plans
that drew users from rivals.
For U.S. wireless carriers, the reported quarter is
seasonally crucial as Apple's ( AAPL ) latest iPhone models
typically trigger a spike in upgrades and new subscriptions.
T-Mobile's premium plans have helped it win a larger share
of switching customers in what analysts have described as a
"musical chairs" environment.
When customers shop for new devices, "it creates a
tremendous opportunity for us to earn switching business from
our competitors. And I think in Q3 that's exactly what you saw,"
Mike Katz, president of marketing, strategy and products,
T-Mobile, told Reuters.
The monthly bill paying wireless subscriber additions marked
T-Mobile's highest third quarter in more than a decade. Analysts
had expected 844,900 additions, according to FactSet.
The company is also drawing customers with its T-Satellite
plan, which allows users to connect in remote or rural areas
where traditional wireless service is limited.
A vast majority of users that are opting for the
direct-to-cell service are getting it through T-Mobile's
"Experience Beyond" plan which offers it at no extra cost, Katz
said.
T-Satellite, which commercially launched in July with
access limited to SMS texting, MMS, picture messaging and short
audio clips, now supports widely used apps, including WhatsApp,
Google Maps and X.
The carrier now expects to add between 7.2 million and 7.4
million total postpaid net customers in 2025, compared with its
prior projection of 6.1 million to 6.4 million additions.
Total revenue for the third quarter came in at $21.96
billion, compared with expectations for $21.92 billion,
according to data compiled by LSEG.
T-Mobile named Srini Gopalan, its chief operating officer,
as CEO effective November 1, succeeding Mike Sievert, who will
move into a newly created role as vice chairman of the company
and its board.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by
Sriraj Kalluvila)