UPDATE 2-T-Mobile quarterly results top estimates as subscribers grow

(Adds CEO comment, churn, updates share price)

July 19 (Reuters) - T-Mobile US Inc's quarterly results topped analysts' estimates as the No. 3 U.S. wireless carrier on Wednesday reported more phone subscribers who pay a monthly bill and record low customer dropout rate.

T-Mobile has been gaining share from larger competitors AT&T Inc and Verizon Communications Inc in a saturated U.S. wireless market through network improvements and lower prices.

Shares rose 3 percent to $63.85 in after-hours trading.

The carrier added 786,000 phone subscribers in the second quarter ended June 30, up from 646,000 in the year-earlier period. Analysts on average had expected net additions of 607,000, according to research firm FactSet.

"We expect to capture all of the industry postpaid phone growth this quarter," Chief Executive John Legere said on the company's post-earnings conference call.

Churn, or customer defections, was 1.1 percent, a record low.

Net income rose to $581 million, or 67 cents per share, from $225 million, or 25 cents per share, a year earlier.

Total revenue rose to $10.21 billion from $9.29 billion.

Analysts on average had expected earnings of 38 cents per share on revenue of $9.81 billion, according to Thomson Reuters I/B/E/S. (Reporting by Anjali Athavaley in New York and Aishwarya Venugopal in Bengaluru; Editing by Anil D'Silva and Richard Chang)