iPhone, U-verse lift AT & T’s Q3
AT&T experienced a big quarterly leap in U-verse TV subscribers, adding a net of 232,000 to reach a total of 781,000.
U-verse customers are simultaneously driving data growth. On the wireless side, AT&T supporting Apple’s iPhone – while Verizon doesn’t – continues to pay off in spades.
During the third quarter, AT&T increased revenue by 4 percent compared with the like period last year, to $31.3 billion. Net income was $3.2 billion, up from $3.1 billion in the third quarter of 2007.
The company reported that revenue growth was driven by 15.4 percent growth in wireless revenues and a 16.2 percent increase in wireline IP data revenues, which includes AT&T U-verse services and business offerings such as VPNs, managed Internet services and hosting.
Gains in these areas, AT&T said, are offsetting not only continuing losses of wireline consumer voice customers, but also the effects of the damaged economy.
U-verse adds are accelerating; in the second quarter, the company added 170,000 new subscribers. AT&T said its U-verse network deployment now passes 14 million “living units.”
Rollout of Total Home DVR service is underway and expected to be completed by the end of the year. Attach rates for broadband service continue to be high, at more than 85 percent, the company said.
Activations of the iPhone 3G, meanwhile, which AT&T began offering in July, totaled 2.4 million in the quarter, approximately 40 percent of which were new wireless customers. The company had 2 million net wireless adds, for a subscriber total of 74.9 million.
AT&T Chairman and CEO Randall Stephenson said of the iPhone: “The new customers we're winning are high-value, with attractive revenue and churn profiles. We're expanding the market, as users adopt more data and media-rich services and access a wide array of applications.”
The company expects its iPhone-related success to continue.
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