Exclusive Apple iPhone carrier AT&T reports record net gain of 2.0 million wireless subscribers

AT&T Inc. (NYSE:T) today posted strong third-quarter results and delivered its tenth consecutive quarter of double-digit growth in adjusted earnings per share. Results included an increase in wireless subscribers of 2.0 million, further advances in enterprise business trends and accelerated expansion of AT&T’s next-generation TV service.

AT&T reported third-quarter revenues of $30.1 billion, up from $15.6 billion in the year-earlier quarter, prior to its Dec. 29, 2006 acquisition of BellSouth Corporation and the accompanying consolidation of wireless results. AT&T’s reported net income for the third quarter totaled $3.1 billion compared with $2.2 billion in the year-earlier quarter. Reported earnings per diluted share totaled $0.50 versus $0.56 in the third quarter of 2006.

AT&T is the United States’ wireless leader with 65.7 million subscribers, operates the nation’s largest wireless digital voice and data network, and through roaming alliances around the world provides the largest global presence among U.S. wireless carriers. In the third quarter, AT&T achieved:

Record Wireless Subscriber Gains. AT&T achieved a net gain of 2.0 million wireless subscribers, in the first full quarter since the introduction of Apple Inc.’s iPhone, the highest third-quarter subscriber increase in the company’s history. Versus AT&T’s gain in the year-earlier third quarter, net subscriber additions were up 46.8 percent. Third-quarter retail postpaid net adds totaled 1.2 million, up 30.6 percent compared with postpaid subscriber additions in the year-earlier quarter.

Strong Gross Adds. Gross wireless subscriber additions totaled 5.3 million in the third quarter, up 15.8 percent versus third-quarter 2006 results, continuing AT&T’s strength in flow share. Overall average monthly subscriber churn was 1.7 percent, down 10 basis points versus the year-earlier third quarter, and postpaid churn was 1.3 percent, down 20 basis points from the third quarter of 2006. Sequentially, versus second-quarter 2007 results, churn levels were up slightly, reflecting typical third-quarter seasonality.

Accelerated Wireless Revenue Growth. AT&T’s wireless revenues totaled $10.9 billion, up 14.4 percent from the year-earlier quarter. This marked AT&T’s fifth consecutive quarter of improved wireless revenue growth. Wireless service revenues, which exclude handset and accessory sales, grew 13.7 percent to $9.9 billion.

Robust Growth in Wireless Data Services. Wireless data revenues increased 63.9 percent versus results in the year-earlier quarter, driven by increases in both consumer and business data usage including messaging, media bundles, laptop connectivity, smart phone connectivity and enterprise vertical market solutions. This was AT&T’s fifth straight quarter with year-over-year data revenue growth above 60 percent.

iPhone, bitch!

14 Comments

  1. I second that MDN, but damn, those international roaming charges are a bitch too! I had the first iPhone in East Africa when I traveled there for about three months shortly after the phone was released. Even WITH an international calling plan, it cost about $2.65 per minute. That’s just ridiculous considering just 5 years ago, they only charged .99¢ per minute at the most.

    Even the international texting plan was a bitch. It resulted in $1000 phone bill!

    MW – turned, as in that aught to turn anyone’s stomach

  2. Don’t pat yourselves on the back, MAC sheep. The iPhone had nothing to do with it. Maybe you lemmings haven’t heard of a little thing called Windows Mobile which is proudly featured on some of AT&T;’s phones. That’s where you’ll see the gains.

    Why has Windows Mobile been such a runaway success for AT&T;this quarter? Does Windows Media Player 10 mean anything to you MAC lemmings? That means you can play WMA files on these babies. Can you play WMA files on your iPhone? You can also sync with Outlook, and they don’t cost $500. Awesome!

    Your potential. Our passion.™

  3. – I’ll bet Verizon is flogging itself.

    – These are amazing numbers considering that when you walk into an ATT store and start looking at the iPhone you’ve pretty much guaranteed that you won’t get any help from the sales staff.

    – Most of these iPhone sales must have been coming from Apple stores with subsequent online activation.

    – ATT in-store sales reps. are little jerks.

  4. @Mr. Peabody
    Has Version announced their numbers?? I would like to see

    @tmsruge, before your next trip, check these guys out
    http://iphoneunlocked.mostofmymac.com/MAIL-IN-UNLOCK.html

    when I am in Mexico, just pop in my TelCel pay as you go simm, when States side, I use my ATT simm, I don’t care what people say about unlocking, and I really do not think Apple cares, they know the only ones unlocking 250K of us, do because we are over seas,or travel, or cant get ATT, this is from an email they sent me today

    “If you want to purchase a new iPhone from Apple and want us to help you unlock it, you may consider placing your order from http://www.apple.com/store and have it shipped (free shipping) directly to us. We will unlock it and ship it to you.”

  5. AT&T;are SPIES!

    The notorious NSA rooms next to AT&T;internet backbones,

    Cisco is SPIES too with secret access to their routers.

    Apple “settles” with Cisco over “iPhone” trademark. Apple: “We will be working together” For what? What does Cisco bring to the table? the NSA?

    AT&T;+ Cisco + Apple = SPIES ON THE iPHONE.

    Microsoft = SPIES on the world’s most used OS.

    Trojan spy hardware sales for the spooks.

    Use your credit card, they track you everywhere you go.

  6. why the hell would i want to play WMA files on my phone, or sync it with some security-hole-ridden Outlook software? my 256Kbps MP3 files work great and are DRM-free, and last i checked Mail hadn’t been hijacked to send V!@gr@ ads to everyone in my Address Book.

  7. Mr. Tang.

    Windows Mobile has nothing to do w/ AT&T;’s growth, b/c Windows Mobile is available on devices for any carrier.

    iPhone is only on AT&T;, and therefore can be seen as a differentiating factor driving growth.

  8. Lots of newbies here today, picking on our resident sarcasm delivery jester (a.k.a. Zune Tang).

    Note for all you reading posts for the first time:

    In every article, there should be at least one post by Zune Tang. He/she is in charge of delivering sarcastic comments against Microsoft. They are wrapped in Apple-bashing, Zune (or WMA, or Windows)-glorifying statements, with the venerable signature line (Your potential – our passion). If you read them carefully, you’d understand that Zune Tang is one of us and is providing comic relief on a daily basis. Sometimes his/her comments are very creative and amusing; oftentimes, they are a bit uninspired, but he/she is consistent and always present.

    Either way, they are never seriously meant to be taken at face value.

  9. Tin Foil Mad Hatter:

    I’m guessing you’re being sarcastic. Particularly if you’ve read the MSM any time recently, you’ll have noticed that Verizon has had to finally admit what most of us knew all along – it offered the NSA personal files of all its customers.

    Oh where are they now, all those pompous asswipes who swore they’d never go with ATandT because they gave the NSA customer details when asked? Looking a little stupid now is my guess.

    Unless you get paid in cash, never use a credit card – or a computer – pay for everything with cash, never buy a train or airplane ticket, even with cash. Never rent a car, or a TV/cable service… oh, or have a social security number… then you are already known to the security services of wherever you live. If they choose to find you.

  10. I was in the AT&T;store in Fort Wayne, Indiana, where they have the iPhone prominently displayed. They are very helpful in showing them to customers. I asked if they were selling many, and they said it’s a steady 2 a day. That may not sound like much, but this is one little strip mall store in a town that isn’t a bastion of Mac users.

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