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AT&T posted a surprise wireless subscriber gain in the second quarter, showing it can fend for itself in a cutthroat price war.

Second-quarter earnings topped estimates, and wireless customers rose by 127,000, compared with analysts’ average projection for a loss of 22,713. An offer for unlimited wireless data, bundled with discounted streaming-TV service, helping AT&T bide its time while awaiting regulatory approval to transform into a media powerhouse through the $85.4 billion purchase of Time Warner.

Sprint is offering consumers deep discounts, including a year’s worth of free service, and T-Mobile U.S. continues to hammer AT&T with aggressive advertising. But AT&T is managing to weather the fierce competitive environment for now by bundling services instead of cutting prices, running its network more efficiently and adding wireless subscribers in Mexico, its newest market.

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