AT&T Inc. added 441,000 of the wireless industry's most
lucrative long-term wireless contracts in the first quarter, while
the rate at which customers left its network decreased.
AT&T has been facing greater competition from smaller rivals
T-Mobile U.S. Inc. and Sprint Corp., as well as challenges tied to
consolidation in the telecommunications and media industries.
Google Inc. launched a wireless service on Wednesday that offers
talk, texts and other features such as Wi-Fi hookups and
international coverage for $20 a month, further escalating the
price war in the industry.
AT&T's core wireless subscriber additions compare with
854,000 in the fourth quarter and 625,000 a year earlier, a number
the company called its highest first-quarter mark in five
years.
In comparison, rival Verizon Communications Inc. said earlier
this week that it lost wireless phone customers again during the
quarter, though revenue grew more than expected.
AT&T has been trying to wean subscribers off device subsidy
plans and aggressively push the sale of smartphones at full price,
often lowering the monthly service fee for customers not in a
contract.
The company also has been beefing up its balance sheet to fund
its bids for U.S. wireless spectrum, moving forward with its $49
billion deal for satellite-television company DirecTV and buying
Nextel Mexico for $1.88 billion.
Overall, AT&T reported a profit of $3.2 billion, or 61 cents
a share, compared with a profit of $3.65 billion, or 70 cents a
share, a year earlier. Excluding pension-related charges and other
items, earnings fell to 63 cents a share from 71 cents.
Revenue edged up 0.3% to $32.58 billion.
Analysts projected a per-share profit of 62 cents and revenue of
$32.84 billion, according to Thomson Reuters.
AT&T said its churn, or the rate at which wireless customers
left its network, was 1.02%, its best-ever first-quarter
performance, versus 1.07% a year earlier.
Shares, which have declined about 9.5% in the past year, edged
up fractionally in after-hours trading.
Write to Angela Chen at angela.chen@dowjones.com
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