T-Mobile raised its expected subscribers for 2024 as the company continues improving its customers' offerings.
The telecom company shared that it is targeting to add 5.2 to 5.6 million subscribers within the year, increasing last year's forecast of 5 million to 5.5 million new subscribers.
T-Mobile Maintains Positive Outlook on Subscription Offers
T-Mobile revealed that Go5G Next and Go5G Plus which provide subscriptions to streaming services like Netflix and Apple TV+ are among its most popular offerings. Around 60% of new subscribers chose these plans as they provide high-speed internet and access to streaming services.
"They are also the plans that are the most popular when existing customers are moving from their current rate plan to a new plan," said Mike Katz, president of marketing, strategy, and products for T-Mobile.
In addition, the telecom company remains attractive to its existing and new customers as it continues to offer flexible and discounted plans. Analysts also predict good outcomes for T-Mobile due to its rural and business market hold.
T-Mobile Attracts Customers, Decreases Churn Rate
An analyst shared that T-Mobile has effectively decreased its churn rate, known as the percentage of customers who stopped using the services. The company recorded its lowest first-quarter churn rate at 0.86%.
"People are now starting to be more cost-conscious and T-Mobile's disruptive punchy offers are resonating with home cable customers," said PP Foresight analyst Paolo Pescatore.
The company also reported an additional 532,000 monthly bill-paying phone subscribers for its first quarter beating its closest competitor FactSet with only 477,500 new users.
Regardless, the company still narrowly missed the analysts' estimates of $19.81 billion after gaining only $19.59 billion.
T-Mobile is now moving forward with its plans, including a $950 million investment for a 50% stake in a Swedish investment firm EQT's fund. The U.S. Federal Communications Commission recently approved the company's proposal to buy Ka'ena Corp.
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