AT&T Gained Subscribers, Raises Revenue in Third Quarter
Through big changes in pricing plans and a larger shift in the mobile industry, AT&T is still standing solid as the second largest mobile provider in the U.S. The company today released its third-quarter financial results, revealing steadily increased revenue that matches analyst targets.
AT&T brought in $32.2 billion in revenue during the previous quarter, a 2.2% increase over the third quarter of 2012. Much of this revenue increase has come from mobile data, with AT&T stating that wireless data revenues increased 17.6% year-over-year.
In addition to its increased revenues, AT&T also saw a slight increase in subscriber numbers, adding 363,000 new subscribers during the third quarter. Nearly half of those subscribers (178,000) are now using smartphones on AT&T’s network.
“We’re setting the standard for 4G LTE speeds and network reliability,” said Randall Stephenson, chairman and CEO of AT&T. “Our fiber and U-verse expansion projects are ahead of schedule bringing high-speed broadband to millions more customers. With these initiatives, we’re seeing excellent growth across our major platforms – mobility, U-verse and strategic business services.”
Though AT&T has enjoyed its position as one of the big two mobile providers in the U.S., conditions in the industry are now shifting rapidly. T-Mobile and Sprint are quickly improving their 4G networks, and T-Mobile in particular is providing customers with lower-priced plans in many of the regions that AT&T is dominant. Also, with new cell phone subscribers drying up in the U.S., AT&T has joined all other major carriers in implementing its Next pricing plans designed to encourage more frequent smartphone upgrades.