(Reuters) - T-Mobile US (NASDAQ:TMUS) on Thursday raised its annual forecast for monthly bill-paying phone subscriber growth, as more customers tap into its discounted plans and on expansion of 5G network coverage.
Although the overall market for postpaid phone additions is shrinking, T-Mobile is viewed as the top pick by analysts as it gains shares from underpenetrated smaller markets segments like rural and business.
The company now expects to add 5.2 million to 5.6 million subscribers in the full-year 2024 compared to its previous forecast of 5 million to 5.5 million subscriber additions.
The U.S. telecom carrier has seen a positive reception of its unlimited and bundled Go5G plans which have attracted customers.
"Even as the rest of wireless saw moderated customer growth, our momentum continued thanks to our increasingly differentiated combination of the best value, best network, and best experiences that customers love," CEO Mike Sievert said.
The company added 532,000 monthly bill-paying phone subscribers in the first quarter, the highest among peers, compared with FactSet estimates of 477,500 additions.
In a highly competitive and saturated market, T-Mobile's discounted plans have resonated well with cost-conscious customers who are looking for flexible offerings.
Total revenue for the three months to March stood at $19.59 billion, slightly below analysts' estimates of $19.81 billion, according to LSEG data.