T-Mobile expects temporary hit from new pricier plans

T-Mobile expects temporary hit from new pricier plans Harshita Mary Varghese Thu, July 23, 2026 at 12:31 PM GMT+2 2 min read TMUS By Harshita Mary Varghese July 23 (Reuters) - T-Mobile said on Thursday it expects third-quarter postpaid account additions to decline sequentially as the telecom ‌operator upgrades its rate plans, sending its shares down nearly 7%. The company ‌is phasing out older wireless plans and migrating affected customers to newer options that offer features ​like unlimited premium data and device upgrades, but are more expensive. That strategy is also expected to lead to a temporary increase in customer churn in the current quarter, the company said.

T-Mobile has also been facing intense competition from AT&T ‌and Verizon. The company expects about ⁠250,000 net postpaid accounts in the third quarter, below Visible Alpha-compiled analysts' average estimate of about 304,000 additions. It added 277,000 ⁠postpaid accounts in the previous quarter, which was already a 13% decline from a year earlier.

T-Mobile has been modernizing its wireless plan portfolio and enhancing benefits for ​legacy customers ​as part of a broader push to ​migrate subscribers to its newer ‌plans, Chief Operating Officer Jon Freier told Reuters. "We are seeing new customers really kind of adopt our most premium plans at a rate of about 60% of total sales. " The company raised its adjusted free cash flow to between $18.

4 billion and $18. 8 billion, from $18. 1 billion to $18.

7 billion previously. The raise is from continued efficiencies, particularly ‌in cash income taxes, but also we have ​other working capital benefits as we deploy some ​advanced AI tools, Finance Chief ​Peter Osvaldik told Reuters. T-Mobile has expanded beyond wireless and into ‌fiber through acquisitions and joint ventures, ​though analysts note its ​planned fiber footprint remains considerably smaller than that of AT&T and Verizon.

Quarterly average revenue per postpaid account rose 2% to $152. 91, compared with $149. 87 a year ​ago, while profit came ‌in at $2.

99 per share, compared with analysts' average estimate of $2. 59, according ​to data compiled by LSEG.