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Although the move to 5G and fiber optic-powered broadband internet has come at a huge cost for U.S. telecom players, hunger for data in a connected world is expected to drive a big rise in subscriber numbers in the coming years.
Last week, Verizon (NYSE:VZ) reported a smaller-than-expected subscriber loss, while AT&T (NYSE:T) saw a surge in customer additions as more people opted for 5G.
T-Mobile added 589,000 postpaid phone customers, compared with estimates of 584,900 according to FactSet, while it added three times more customers than last year for its high-speed internet services.
Postpaid phone customers pay for service at the end of each billing cycle and are considered valuable and less likely to switch carriers.
T-Mobile also raised its forecast for net postpaid customer additions this year to 5.3 million to 5.8 million from 5 million to 5.5 million estimated previously.
Net phone customer additions are expected to be “more weighted to the second half,” Chief Financial Officer Peter Osvaldik said on a post-earnings call.
The Bellevue, Washington-based company reported quarterly profit of 57 cents per share on revenue of $20.12 billion.
Analysts were expecting earnings of 33 cents per share and revenue of $20.11 billion.
Shares of T-Mobile have risen 7.7% this year, while those of AT&T are up 4%. Verizon is the only loser, with a 5% drop.
