AT&T Revenue Down Slightly But Profits Up On Mobile, Broadband Growth

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AT&T Revenue Down Slightly But Profits Up On Mobile, Broadband Growth

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It may be getting slammed for the quality of its network, but AT&T is still raking it in on mobile. Today the operator reported that revenues for Q4 fell slightly to $30.9 billion, from $31.1 billion for the same quarter a year ago. But net income went up to $3 billion from $2.4 billion, a rise of almost 26 percent.

Mobile led the way, accounting for $12.6 billion of that revenue figure. AT&T (NYSE: T) added 2.7 million more customers to its wireless service, bringing the total number up to 7.3 million for 2009. The company also reported strong data growth both in terms of volume and value: up 26.3 percent to $805 million. Within that text messages are still on the rise, up 70 percent, and MMS nearly doubling over the last year.

—Integrated devices: Devices that have mobile Internet access totaled 30.2 million for the quarter, nearly double the 16.2 million reported a quarter earlier.

—Network speed/quality: AT&T says it is ahead of schedule in upgrading its 3G network nationwide to HSPA, which will give the network speeds of up to 7.2Mbps; ten handsets, including the iPhone 3GS, are HSPA-enabled. The operator also spent a bit of time defending its network quality, laying out its “aggressive” program of network enhancements, in particular for the high-usage markets of San Francisco and New York. This includes deploying Ethernet to improve backhaul and similar projects in the next 90 days.

—iPad: AT&T was announced as the operator partner for Apple’s new device. It will be sold with two different price plans: $15 for 250 MB or $30 for unlimited usage, both without a contract. AT&T noted that there were no revenue agreements in place with respect to that deal. The device will be sold unsubsidized—and also unlocked for access to some other carriers.

—U-verse: The IPTV service added another 248,000 subscribers, bringing its total subscriber base up to nearly 2 million. AT&T will be opening up further markets this year, concentrating on the southeastern part the country. It says that currently penetration is around the 20 percent mark but it could grow “into the thirties”.