By Juby Babu
April 28 (Reuters) – T-Mobile raised its forecast for annual postpaid net account additions on Tuesday, as competitive pricing and bundled streaming benefits help the U.S. wireless carrier attract customers in a saturated market.
The company expects to add between 950,000 and 1.05 million postpaid accounts in 2026, up from 900,000 to 1 million previously. Accounts count billing relationships, not individual subscribers, meaning one family or business account can cover multiple lines or devices.
“Over 90% of our postpaid accounts actually have more than one line in that relationship,” CFO Peter Osvaldik told Reuters in an interview.
T-Mobile said in February it would stop reporting postpaid phone subscriber additions from the first quarter, as it shifts focus to account growth and average revenue per account.
For the first quarter, postpaid net account additions came in at 217,000, compared to Visible Alpha estimates of 193,236 additions.
The results come against the backdrop of a report by Reuters that Deutsche Telekom, which has a 53% stake in T-Mobile, is exploring a deal to combine with the U.S. telecom operator.
During a post-earnings call, T-Mobile CEO Srini Gopalan said that there wasn’t anything specific to comment on the reported talks.
Shares of T-Mobile rose more than 1% in extended trading.
BUNDLING PACKS A PUNCH
The forecast underscores the success of T-Mobile’s offerings such as its Experience plans that bundle Netflix, Apple TV and Hulu with five-year price guarantees, prompting many customers to upgrade from their basic plans.
In a period of cautious consumer spending, its “Un-carrier” branding and aggressive marketing have continued to resonate, allowing it to attract subscribers from competitors.
Osvaldik highlighted that T-Mobile’s premium plans continue to perform strongly, with over 60% of new account lines opting for top-tier plans, a rate that has held steady over time.
T-Mobile’s total revenue for the first quarter came in at $23.11 billion, compared with analysts’ estimate of $22.97 billion, according to data compiled by LSEG.
Rival Verizon raised its annual profit forecast on Monday after revamped customer offers and bundled plans led to a surprise first-quarter wireless subscriber additions, while AT&T added more wireless subscribers than expected in the first quarter.
EXPANDING ITS INTERNET OFFERING
Earlier on Tuesday, T-Mobile launched a new internet offering for businesses, combining its 5G network with Starlink’s satellite backup to serve companies operating in remote locations.
It also signed deals to form two joint ventures, expanding its fiber internet business to complement its fast-growing broadband and core wireless base.
T-Mobile has significant room to grow its broadband market share by expanding its fixed wireless and potential fiber internet offerings while deepening its presence in secondary and rural markets, where the carrier has yet to fully capitalize on its competitive position, Citi analysts said.
(Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila)
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