

AT&T showed high earnings for Q3, retaining expectations around its performance this year. Some key numbers:
—Average revenue from its users was up 2 percent
—Wireless data revenues — from messaging, Internet access, access to applications and related services — increased $1.1 billion, or 30.5 percent, from the year-earlier quarter to $4o.8 billion.
— AT&T U-verse TV subscribers increased by 236,000 in the quarter to reach 2.7 million.
—The growth of AT&T’s U-verse business drove 30 percent year-over-year gains in consumer IP revenues, which include broadband, U-verse TV and U-verse Voice. The company noted how important this area is becoming, as consumer IP revenues now represent 42.6 percent of AT&T’s wireline consumer revenues.
AT&T used to have exclusive distribution rights to Apple’s products, but with Verizon entering the picture also distributing Apple’s iPad, it seems like AT&T is finally losing grip on the exclusivity. The iPhone will also be available on Verizon soon, and the wireless service provider is aggressive about expanding its network, including 4G.
Of the 5.2 million iPhones sold by AT&T this year, only 24% of which are new ones and the rest were upgrades. The upgrade that increased the company’s revenue will secure the customer for another 2 years. In addition to this strategy to counter Verizon, they are also releasing smartphones with Google’s Android system and Microsoft’s Windows Phone 7. AT&T will have to look beyond the iPhone to maintain dominance moving forward.
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