T-Mobile US Sees Surge in Subscribers as Customers Flock to Bundled Plans
T-Mobile US has raised its annual forecast for growth in monthly bill-paying phone subscribers, thanks to the increasing popularity of its plans that offer high-speed internet bundled with access to streaming services like Netflix and Apple TV+.
According to Mike Katz, president of marketing, strategy, and products at T-Mobile, over 60% of new customers are opting for plans like Go5G Next and Go5G Plus, making them the most popular choices among both new and existing customers.
The telecom carrier now expects to add 5.2 million to 5.6 million subscribers in 2024, up from its previous forecast of 5 million to 5.5 million additions. T-Mobile’s discounted plans have helped it attract customers seeking flexible options, leading to gains in underpenetrated market segments like rural and business.
In the first quarter, T-Mobile added 532,000 monthly bill-paying phone subscribers, surpassing FactSet estimates. The company also recorded its lowest ever first-quarter churn rate at 0.86%.
Despite revenue slightly below analysts’ estimates, T-Mobile reported a profit of $2 per share, exceeding expectations. Additionally, the company announced plans to invest $950 million for a 50% stake in a venture with Swedish investment firm EQT’s fund to acquire fiber optic network provider Lumos.
The U.S. Federal Communications Commission has also approved T-Mobile’s acquisition of Ka’ena Corp, the owner of budget service provider Mint Mobile.
T-Mobile’s success in attracting customers with its bundled plans and strategic investments signals a promising future for the telecom carrier in a competitive market.