Wireless, Data Pace AT&T Earnings, Fixed Network Voice Drops 10 Percent

By Gary Kim July 24, 2012

AT&T second quarter earnings were, as expected, led and highlighted by wireless performance. In fact, all revenue growth, on both the fixed network and mobile network, was arguably driven by data revenue, which wouldn’t surprise anyone.

Total revenue was $31.3 billion, with growth driven by wireless ($14.8 billion) and fixed network data services ($7.9 billion). By most indications, that will continue to be the case for AT&T and Verizon Wireless for the foreseeable future.

As has been the pattern for some years, wireless alone contributes 52 percent of total revenue. Fixed network data and managed services (consumer, mass market and enterprise) represents 28 percent of revenue.

Fixed network voice contributes 18 percent of revenue, down from 20 percent a year ago. Fixed network voice revenues dropped 10.1 percent, year over year, from to $6.3 billion to $5.7 billion.

In the wireline segment, revenue from residential customers totaled $5.5 billion. U-verse revenue represented $2.3 billion of quarterly revenue. Without U-verse, revenue would have been far worse. Instead, largely on the strength of U-verse, AT&T saw a 1.7-percent revenue growth for wireline segment products.

U-verse revenue was up 38 percent. That was, according to AT&T, the “strongest growth” in the consumer segment in more than four years.

“Continued strong growth in consumer IP data services in the second quarter more than offset lower revenue from voice and legacy products,” AT&T said.

On the other hand, AT&T lost 649,000 DSL subscribers, for a net loss of 96,000 broadband customers, after adding in new accounts gained during the quarter.  U-verse broadband access customers saw a net gain of 553,000 subscribers, to reach a total of 6.5 million. Total wireline broadband connections dropped 0.2 percent, year over year, to 16.43 million.

On both fixed and mobile networks, it is data revenues that are driving revenue growth. In fact, data revenue will grow to 65 percent of total U.S. wireless service revenue as voice declines to 35 percent in 2016, according to Hugues de la Vergne, principal research analyst at Gartner.

Gartner believes multi-device rate plans will be a key driving factor in the expansion of U.S. data revenue from $81.4 billion in 2011 to $151.9 billion in 2016.




Edited by Braden Becker

Contributing Editor

SHARE THIS ARTICLE
Related Articles

Severed Internet Cables Causing Massive Outages in Bay Area

By: Joe Rizzo    7/2/2015

At 4:20 am. on Tuesday morning, three fiber optic cables providing Internet access to Sacramento were physically cut leaving California's capital with…

Read More

The Future Form of Communication is Telepathy, According to Zuckerberg

By: Joe Rizzo    7/2/2015

"One day, I believe we'll be able to send full rich thoughts to each other directly using technology. You'll just be able to think of something and yo…

Read More

1Gbps Broadband Boosts Economy, Home Prices

By: Tara Seals    7/2/2015

1Gbps services to the home-the new frontier of competition for triple-play providers-turn out to have a measurable economic benefit. A study from the …

Read More

Windy City Takes on Cloud: New Tax on Streaming Media, SaaS and PaaS

By: Laura Stotler    7/1/2015

In a bold and controversial move, the city of Chicago instituted a new cloud tax today that will target online databases as well as popular streaming …

Read More

Practical Step-by-Step Guidance After Your Company Has Been Hacked

By: TMCnet Special Guest    6/30/2015

Everybody tends to think that hackers will never ever target them or their company/organization-until a breach occurs. We have already published sever…

Read More