AT&T Wireless and U-verse TV approach market saturation


Staff member
NEW YORK — Running one of the nation's biggest wireless networks has been a reliable way for AT&T Inc. to boost revenues, quarter after quarter, as people loaded up on phones, and then traded up to smartphones. But the easy money may already have been made, AT&T's latest results show.

AT&T said Thursday that its wireless service revenue grew just 4.3 percent in the July to September period versus a year ago. That growth rate had often topped 10 percent in the recent years, but has now been declining for a straight year.

...But the longer-term trend behind the sluggish growth in service revenues may be that people are starting to reach the ceiling for what they're able to pay for phone service each month. More than half of AT&T subscribers now have smartphones, which means they sign up for data plans. But AT&T's revenue from phone calls is declining almost as fast as data revenue is increasing.

"The wireless business simply isn't a growth engine anymore," said Sanford Bernstein analyst Craig Moffett.

...Cable companies kept chipping away at broadband customers from AT&T's wired side, and AT&T's buildout of U-Verse, its own cable-TV service, slowed down. It added 176,000 TV subscribers to U-Verse, the lowest number in three years. Total broadband subscribers were flat — the worst third-quarter showing yet for the company.

AT&T eked out a 0.2 percent increase in consumer wireline revenue compared to last year, as U-Verse barely made up for the loss of phone lines.

AT&T provides local phone service in 22 U.S. states.
Read More: AT&T sees slowing growth in wireless in 3Q -

Fringe Reception

Super Moderator, Chief Content Editor
Staff member
... "The wireless business simply isn't a growth engine anymore," said Sanford Bernstein analyst Craig Moffett.
So, why are Wireless Companies insisting on Television Broadcasters to surrender more and more spectrum, when they don't need it?

TV channels used to cover 2-83. Then, 2-69. Now 2-51. They want to eliminate twenty more channels but for what reason? (Geez - follow he money trail)


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