By Harshita Mary Varghese
T-Mobile announced robust growth on Thursday, with the addition of one million wireless subscribers in the third quarter, surpassing forecasts and prompting an upward revision of its annual projections.
This surge can be attributed to iPhone upgrades and premium plans that have successfully enticed users from competing providers.
In premarket trading, shares experienced a minor dip of 1.5% following the announcement that the company had adjusted its annual capital expense forecast, increasing it by $500 million to approximately $10 billion.
Telecom operators typically face heightened costs during device upgrade cycles, as they are compelled to purchase new handsets and provide discounts to attract or maintain their customer base.
In the United States, the third quarter is particularly pivotal; the release of Apple’s latest iPhone models consistently ignites a rise in both upgrades and new subscriptions.
T-Mobile’s attractive premium plans have enabled it to garner a larger portion of switching customers in a competitive landscape often likened to a game of “musical chairs.”
“When consumers are in the market for new devices, it presents an exceptional opportunity for us to secure business from our rivals. That’s precisely what transpired in Q3,” stated Mike Katz, T-Mobile’s president of marketing, strategy, and products, in an interview with Reuters.
The impressive addition of monthly billing wireless subscribers represents T-Mobile’s highest quarterly growth in over a decade, significantly outpacing the anticipated 844,900 additions, as reported by FactSet.
Additionally, the company has attracted customers with its innovative T-Satellite plan, which offers connectivity in remote or underserved areas lacking traditional wireless services.
A significant number of users opting for the direct-to-cell service are enrolling via T-Mobile’s “Experience Beyond” plan, which provides this option at no additional cost, according to Katz.
T-Satellite, which commenced commercial operations in July, initially offered limited features including SMS and MMS services; however, it has now expanded to support widely used applications such as WhatsApp, Google Maps, and X.
Furthermore, T-Mobile has revised its forecast for net postpaid customer additions, now projecting between 7.2 million to 7.4 million for 2025, an increase from a previous estimate of 6.1 million to 6.4 million.
For the third quarter, T-Mobile reported a total revenue of $21.96 billion, slightly exceeding the analysts’ expectations of $21.92 billion, according to data compiled by LSEG.
Source link: Telecom.economictimes.indiatimes.com.
