AT&T: Wireless Grows, Broadband Blows

Stacey Higginbotham, Wednesday, July 23, 2008 at 10:23 AM PT Comments (6)

In its second-quarter earnings call this morning, AT&T highlighted the awesome growth of its wireless business, which surged 14.8 percent to $11 billion and accounted for roughly a third of its $30.9 billion in revenue for the period. The company also said that the 3G iPhone was selling twice as fast as the first one, which given the price cut, isn’t too surprising.

Equally unsurprising was the 10 percent rise in the number of smartphone subscribers over the second quarter of 2007 (AT&T is the sole carrier of the iPhone in the U.S.). And those users are surfing the web, pushing AT&T’s data revenue up 52 percent from the same period a year ago, to $2.5 billion. After adding 1.3 million wireless subscribers during the quarter, AT&T is still the largest cell phone carrier with 72.9 million subscribers. However, Verizon said yesterday it had added 1.5 million subscribers, so the iPhone exclusivity can only do so much.

The tethered world was a little less rosy, however. AT&T did add 170,000 new U-verse subscribers, bringing that total to 549,000; it also reiterated its goal of having a million subscribers by year-end. But triple-play services were down and broadband growth is slowing. Subscribers to voice, data and TV fell to 48.4 million from 49.5 million at the end of the second quarter of 2007. And AT&T’s total broadband connections now number 14.7 million, up 1.4 million over the same quarter last year but a mere 46,000 higher than the first quarter of the year.

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2 trackbacks so far

July 24th, 2008
5:21 AM PT

[...] AT&T’s wireless business is growing by leaps and bounds . . . meanwhile their broadband business is not. Read about it here. [...]

August 12th, 2008
5:47 PM PT

[...] Meanwhile, AT&T lost a million landline subscribers in their last quarter (per gigaom). [...]

4 comments so far

July 23rd, 2008
10:59 AM PT
ericabiz said:

U-Verse is such garbage. We saw AT&T rolling out the fiber lines in our neighborhood and were excited. However, when we got the flyer in the mail, they said it was DSL speed — only 6Mbit! You have to be kidding me! You put fiber 100ft from my house and can only give me 6Mbit?!

I’m sticking with Comcast and its 16Mbit plan (where we get 10-12Mbit officially according to speed tests.)

AT&T is either going to have to drastically increase its speed or drastically lower its price to make it worthwhile to subscribe.

-Erica

July 23rd, 2008
11:19 AM PT
Eideard said:

My buds in the dbstalk forum number many who thought U-Verse was going to be worthwhile. AT&T has managed to be inept, incompetent [not so new] and inconsistent enough so that virtually every client they acquired from the world of HD-committed - left and returned to satellite sourcing for entertainment.

July 23rd, 2008
11:24 AM PT
Stacey Higginbotham said:

Wow, my Time Warner subscription gives me 7 mbps down, so wouldn’t want to switch to 6 mbps, especially if both firms are looking at tiered broadband. I have to say you guys are really dampening my hopes for U-Verse if it ever arrives in my neighborhood :)

July 31st, 2008
3:20 PM PT
Phil said:

U-verse is pretty good compared to most cable offerings. But it is far from perfect. Some features you’d think are obvious are missing: (link)

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