“Despite a sharp U.S. recession and further erosion in AT&T Inc.’s traditional telephone business, the company is expected to report strong growth in wireless customers and stable earnings when quarterly results are released next week,” Jeffry Bartash reports for MarketWatch. AT&T Mobility “has benefited greatly from its exclusive rights to sell the Apple iPhone. AT&T reports results Thursday morning.”
“In the third quarter, AT&T is expected to add 1.5 million to 1.7 million net wireless customers, driven by fresh demand for the latest version of an improved iPhone released in late June,” Bartash reports. “Last quarter, AT&T’s mobile business generated $13.2 billion in revenue and ended with 79.6 million wireless customers. AT&T is the second largest mobile supplier after Verizon Wireless… AT&T sees plenty of opportunity for long-term growth in Internet-related services. The company has been spending heavily, for instance, to upgrade its wireless network to handle rising Internet traffic generated by the Web-capable iPhone. AT&T has more than 10 million iPhone users.”
“A bigger concern [than losses in the traditional landline telephone business] are potentially new and costly regulations that could emerge from the Obama administration and a Congress controlled by Democrats,” Bartash reports. “Lawmakers and regulators are looking closely at competition in the telecom sector and could unveil new rules soon that limit AT&T’s ability to restrict which services are allowed to run over its wireless and landline networks. ‘Depending on the specifics, any new legislation would likely be a negative for AT&T,’ analyst Greg MacDonald of National Bank Financial wrote in a report.”
Full article here.
[Thanks to MacDailyNews Reader “Matti M” for the heads up.]