Feeds

Americans love wireless - and AT&T too

Profits up $.7bn on last year

Secure remote control for conventional and virtual desktops

AT&T's Q1'08 results show the telco, along with the American public, is becoming ever more reliant on wireless.

The company generated profits of $3.5bn in the first three months of 2008, compared to the paltry $2.85bn in the same period last year, on sales up 6.1 per cent to $30.7bn. Wireless is driving that growth, as the market for traditional voice calls is contracting.

AT&T pulled in $9.7bn revenues from voice calls, over fixed lines, a drop of more than seven per cent on same Q last year's total of $10.5bn, though the company points out that this revenue is more than recovered through broadband and Advanced TV subscriptions: more than 14.6 million of the former, and 379,000 of the latter, to date.

But the company really shone in wireless, with data revenue up 18.3 per cent to $2.3bn coming from 71.4 million subscribers. This is a net increase of 1.3 million over the previous quarter.

Churn remains at just 1.7 per cent, a figure for which most European operators would give their right arm, and AT&T is now making 21.5 per cent of its wireless revenues from data - up from 16 per cent last year and very comparable to European levels. AT&T's US exclusive for Apple's iPhone must have helped here.

That data figure includes text messaging: 44 billion texts and 620 million multimedia messages were sent in the first three months of 2008, doubling last year's totals as Americans come to love texting, almost as much as they apparently love AT&T.

AT&T made sure its earning report would shine, by shovelling out some bad stuff last week. In an SEC filing, the company said it would axe about 1.5 per cent of its employees, mostly in the landline home phone business. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Mighty Blighty broadbanders beg: Let us lay cable in BT's, er, ducts
Complain to Ofcom that telco has 'effective monopoly'
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Ofcom tackles complaint over Premier League footie TV rights
Virgin Media: UK fans pay the most for the fewest matches
FCC: Gonna need y'all to cough up $1.5bn to put broadband in schools
Kids need more fiber, says Wheeler, and you'll pay for it
prev story

Whitepapers

Driving business with continuous operational intelligence
Introducing an innovative approach offered by ExtraHop for producing continuous operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.