Light Reading
AT&T's fiber-rich platform starts off year strong with healthy broadband and video subscriber gains in Q1, opening up lead on Verizon FiOS.

AT&T U-verse Gains Broadband, Video Subs

Alan Breznick
4/24/2014
50%
50%

Shrugging off the early doubts about its viability, AT&T U-verse is plowing ahead with healthy broadband and video gains as it continues to close the gap on the largest US cable operators.

AT&T Inc. (NYSE: T) reported Tuesday that it signed up another 201,000 subscribers for U-verse TV in the first quarter, slightly up from a gain of 194,000 subs in the previous quarter. With the latest gain, AT&T now has 5.7 million U-verse TV customers, widening its lead over Verizon Communications Inc. (NYSE: VZ)'s similar FiOS Video service. The large telco also has more video subs than every US cable operator except the two industry leaders, Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC).

Similarly, AT&T enjoyed another standout quarter on the broadband side, signing up a whopping 634,000 high-speed data subscribers for its U-verse Internet service. With the increase, the telco now has 11 million U-verse Internet customers, more than Verizon FiOS and every cable operator besides Comcast.

Despite the big gains for U-verse Internet, though, AT&T did not expand its broadband customer base all that much because of continued heavy DSL losses. Overall, the company netted a much more modest total of 78,000 wireline broadband customers as it shed more than 550,000 DSL users.

With most of its U-verse TV customers also subscribing to U-verse Internet, AT&T ended the winter quarter with a total of 11.3 million U-verse subscribers. Consumer U-verse revenues scaled $2 billion, jumping 28.3% on a year-over-year basis. As a result, U-verse now accounts for 59% of AT&T's overall wireline consumer revenues, up from 48% a year earlier.

On the earnings call, AT&T CFO John Stephens said the company is already seeing strong early returns in Austin, Texas, where it has started rolling out a slower, 300Mbit/s version of its planned new "U-verse with GigaPower" service. "We're seeing take rates in Austin that have surprised us, exceeded expectations," he said, without disclosing any actual numbers. (See AT&T's Austin GigaPower Debuts at 300 Mbit/s .)

Plans call for AT&T to upgrade the Austin service to 1Gbit/s speeds later this year as it rolls out GigaPower in other markets. In all, the telco aims to offer GigaPower in at least 21 metro regions, including Atlanta, Chicago, Dallas, Los Angeles, and San Diego, as it seeks to match or trump moves by Google Fiber Inc. and such major MSOs as Comcast and Time Warner Cable. (See AT&T Turns Up Gig Heat in 21 New Metros.)

Stephens said AT&T has also earned high "quality scores" for its new service in Austin so far. He attributed the company's initial success to its ability to gain local right-aways, permitting, and pole rights in a quick, efficient manner build in the areas where it knew customer demand would be strong. "When you build where the demand is, you can get higher penetration and the returns to support that build," he said.

— Alan Breznick, Cable/Video Practice Leader, >Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
4/24/2014 | 9:27:34 AM
Cut the cord?
So the two biggest video service providers have announced modest net gains for video subs in the first quarter. Maybe it's time to turn down the hype about cord-cutting?
Flash Poll
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
LRTV Huawei Video Resource Center
How CSPs Leverage Big Data in the Digital Economy

7|4|14   |   4:48   |   (2) comments


Justin van der Lande from Analysys Mason shares with us his views on how telecom operators can leverage customer asset monetization with big data. His discusses the current status of big data applications and the challenges and opportunities for telecom operators in the digital economy era.
LRTV Huawei Video Resource Center
Accelerator for Digital Business – Future Oriented BSS

7|4|14   |   3:08   |   (0) comments


Mobile and internet are becoming intertwined; IT and CT are integrating; and leading CSPs have begun to transform to information service and entertainment providers. How should the BSS system evolve to enable this transformation? Karl Whitelock, an analyst at Frost & Sullivan, shares his views.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Packet Design asks network professionals how they handle the cloud, SDN, and network management.
Hot Topics
Is Windstream Boldly Setting a New Trend?
Carol Wilson, Editor-at-large, 7/29/2014
Pics From Comic-Con -- Honest!
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/30/2014
Sprint, T-Mobile: The Price War's On
Sarah Reedy, Senior Editor, 7/30/2014
If Not Muni Networks, Then What?
Carol Wilson, Editor-at-large, 7/28/2014
Verizon Applies 3G Throttling Policy to LTE
Sarah Reedy, Senior Editor, 7/25/2014
Like Us on Facebook
Twitter Feed