Demand for 5G service is driving big subscriber growth for T-Mobile, the company said Thursday.
T-Mobile reported that it gained more monthly-bill-paying subscribers during the second quarter 2021 than it expected. According to the company, demand for 5G wireless services and devices drove the growth.
T-Mobile also said that the increase in wireless subscribers was due to the stores’ reopenings after the country lifted COVID restrictions. T-Mobile stated that it is increasing its annual growth estimates for subscribers. In a press release, the company stated that it expects to increase its total number of subscribers by between 5 million and 5.3 million monthly postpaid wireless subscribers in 2021. This is a significant increase from its previous forecast of 4.4million to 4.9million.
The company added 627,000 postpaid telephone subscribers in the second quarter. For context, Verizon reported last week that it had added 528,000 postpaid customers across its consumer and business divisions, of which 275,000 were postpaid phone users. As a key indicator of success, postpaid accounts are more valuable to investors. These accounts belong to customers who pay their monthly bills on time. Meanwhile, AT&T reported last week that it added 789,000 net postpaid phone and 1.16 million total postpaid customers during the same period.
T-Mobile, which acquired Sprint last year, has the advantage of the largest portfolio of midband airwaves available for 5G deployment. It is now in a good position to deliver on its promises of 5G networks that are fast and have good coverage. This is especially important as more people turn to 5G to connect from their homes and to get to school remotely. T-Mobile’s 4G network performed well in speed tests but it did not have sufficient coverage. This made it difficult for T-Mobile to compete with Verizon and AT&T.
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T-Mobile is a leader in 5G, and especially in the use midband spectrum which allows signals to travel longer distances, but it’s also a market leader in 5G. T-Mobile has at least one year of advantage over its competitors and is trying to capitalize. T-Mobile is also planning to launch a wireless home-internet provider that could compete with cable companies.
As for the financials, T-Mobile reported total revenue for the second quarter rose about 13% to $19.95 billion, compared with estimates of $19.37 billion, according to analysts polled by Yahoo Finance.