The mobile telecommunications operator AT&T (NYSE:T) raised its annual free cash flow forecast on Thursday as its quarterly subscriber additions exceeded estimates due to promotions and phone upgrades.

The company said it expects full-year free cash flow of around $16.5 billion, up from the previous forecast of $16 billion or more. Its value of $5.2 billion in the third quarter also easily surpassed estimates, according to Visible Alpha.

In recent months, AT&T has been trying to stand out in the competitive U.S. market with offerings, including a significant discount on the iPhone 15 series, which some analysts consider one of the most aggressive in the industry.

The company has also benefited from an ongoing shift of customers to higher-priced plans that offer more data.

It added 468,000 net postpaid wireless phone subscribers in the third quarter ending in September, surpassing expectations of 398,200 additions, according to Factset.

Revenue was $30.4 billion, exceeding estimates of $30.19 billion, according to LSEG data.

The company also raised its expectations for full-year adjusted core earnings growth to over 4%, up from previous expectations of 3% or more.

AT&T has been tightening expenses and expanded its cost-cutting plan by $2 billion in July, after achieving a $6 billion goal ahead of schedule through measures that include office location reductions.

Lower costs are crucial as AT&T needs a steady stream of cash to pay down its net debt of $128.7 billion and support a dividend that ranks among the highest for U.S. stocks.