U-verse Bucks Up AT&T’s Flagging DSL and Voice4/30/2012 12:01 AM Eastern
It’s still a tale of two telcos for AT&T’s
The largest telecom provider in the U.S. tallied 3.99
million U-verse TV subscribers at the end of the first
quarter of 2012 —
netting a healthy
200,000 in the period
— and reeled
in 718,000 U-verse
But the telco
lost 615,000 legacy
and shed nearly 3
phone line connections
on an annual
basis, falling 12.5% year over year to 20.5 million.
AT&T said growth in consumer Internet-protocol
data services in the quarter offset lower revenues
from voice and legacy products — but very slightly.
Revenue from residential customers was $5.4 billion
in Q1, an increase of 1% versus the year-ago quarter.
AT&T’s U-verse is now on a revenue run rate of
$8 billion per year, and growing 38% year over year,
chief financial officer John Stephens said on a conference
call with analysts. U-verse broadband, video
and voice-over-IP revenue now represents 55% of
wireline consumer revenues, up from 47% in the first
quarter of 2011.
“If U-verse was a standalone company, with its annualized
revenues it would be in the Fortune 300,” he
said. “Not bad for a business that we started just over
five years ago.”
However, AT&T substantially completed its fiberto-
the-node U-verse network deployment at the end
of 2011 to pass about 30 million living units — indicating
the growth will begin to taper off.
Overall, AT&T beat consensus Wall Street earnings
estimates on the still-strong wireless side of the
house, which grew revenue 5.4% to $16.1 billion for