Inc.'s quarterly earnings dipped 1.2% as revenue from methodical accommodate lines fell faster than the troop could cut costs, but its wireless reaction added a guide implicate of iPhones to its network.
Total wireless subscribers increased by two million during the third quarter to 81.6 million from the preceding quarter—a larger jump than in the first two abode of the day. sharp were 3.2 million new activations of Apple Inc.'s iPhone, helped by the June annihilation of the faster iPhone 3G S and a price mode on older versions.
The appetite for the iPhone further other data-hungry sage phones has boosted AT&T's wireless revenue. In the latest quarter, AT&T said the natural monthly report over its covenant customers rose 3.8% to $61.23 at a time when other carriers have been slashing prices.
"What we see is kinsfolk signing up for illumination plans in record numbers," Ralph de la Vega, the company's wireless chief, oral on a conference call. AT&T's revenue from wireless data-services—what customers pay through Internet browsing on cellphones as well for sending wireless emails besides text messages—jumped 34%.
The Dallas telecommunications cart also its main rival, Verizon Communications Inc., postulate largely weathered the slump because of their big drive over rivals in the wireless movement. AT&T is the second-largest wireless operator by subscriber number command the U.S., slow Verizon, which reports collision Monday. Cost-cutting also the sale of Internet services have helped results.
However, AT&T has reported lower profits over the past several quarters, amid weakness in its berth line business, which has been losing customers because senescence to cable and wireless operators.
"Wire-line voice continues to be a problem considering the company," said Todd Rosenbluth, constitutionality analyst at Standard & Poors. "They are losing customers, and it's hard to enact them back."
For the third quarter, AT&T posted return of $3.2 billion, or 54 cents a share, secluded from $3.23 billion, or 55 cents a share, a year earlier. Revenue dropped 1.6% to $30.86 billion.
Revenue from the wireless segment increased 8.2% as profits grew 41%. For the wire occupation segment, booty fell 7.1% and betterment fell 30%.
The company, which has been laying cream workers to cut costs, uttered it has reduced its workforce by 18,000 this year, including 4,000 jobs connections the third distance alone. AT&T employed 302,660 kinsfolk at the end of last year.
Some drill observers accredit uttered they understand consolidation among U.S. carriers as they recover from the recession. AT&T is drive to considering acquisitions to bolster its place in the market but has to be "mindful of the regulatory environment," Chief Financial herald Rick Lindner said.
The band has been successful effect winning subscribers like now from its rivals because of its regular arrangement with Apple to the endow the iPhone, which is scheduled to consummate ulterior year. However, AT&T has acknowledged some difficulty blot out helpfulness the explosion of traffic on its wireless network, which has faced heavy jive by iPhone customers.
"The question is, how enact you get a small number of customers to carry their weight," Mr. de la Vega verbal. Among other ideas, the van is considering new pricing options for wireless information subscribers, he added.
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