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.
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.
Rivals AT&T and Verizon have responded with their own aggressive trade-in deals and bundled offerings.
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.
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.
EXPANDING ITS INTERNET OFFERING
The merger talks, still at an early stage, will create a transatlantic telecoms giant in what would be the largest ever public merger. However, the complex potential deal could face major regulatory and geopolitical hurdles.
Blair Levin, policy adviser at New Street Research, said a deal would likely face heavy scrutiny in the U.S., but was unlikely to be blocked on purely regulatory grounds, even if it triggered political resistance.
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.
(Reporting by Juby Babu in Mexico City; Editing by Sriraj Kalluvila)
