T-Mobile will still offer cheaper plans despite fragile economy

All the major US telecommunications companies have already published their second quarter 2022 balance sheets. Overall, these balance sheets show some decline in consumer spending observed among consumers hard hit by the rise in the cost of living. However, that didn’t stop T-Mobile from adding 723,000 subscribers between April and June, well above estimates of 573,100.

Even in the face of the global economic situation, the company wants to maintain its policy of offering customers the lowest price on the market. Indeed, T-Mobile US made the decision not to increase the prices of its wireless plans and also disclosed its subscriber growth forecasts for the coming months.

Improved predictions for new subscribers

This is the second time this year that T-Mobile US has updated its subscriber growth estimate. Since the relatively affordable plans it offers attract many customers, the company estimates that it will add 6 to 6.3 million postpaid subscribers in 2022, up from an earlier estimate of 5.3 to 5.8 million. subscribers.

The company also expects annual free cash flow, including merger-related costs, to be between $7.3 billion and $7.6 billion compared to the previous guidance of 7.2 at $7.6 billion.

The company does not expect any delays in paying bills this year

T-Mobile US is very confident despite such economic uncertainty. On the side of its rivals, AT&T said that some of its subscribers are taking longer to pay their bills while Verizon continues to lose subscribers. However, T-Mobile US does not expect major delays in payments because it kept a promise it made to the US government to secure its acquisition of Sprint.

T-Mobile US customers pay their accounts at the end of the month, which is a key indicator of success in the industry. Without a shadow of a doubt, his clients are reliable sources of income. In the last quarter, its shares rose 4% but will the company be able to do more in the next quarter?

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