& cplSiteName &

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        ADD A COMMENT
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?
Featured Video
From The Founder
Light Reading is spending much of this year digging into the details of how automation technology will impact the comms market, but let's take a moment to also look at how automation is set to overturn the current world order by the middle of the century.
Flash Poll
Upcoming Live Events
November 30, 2017, The Westin Times Square
December 5-7, 2017, The Intercontinental Prague
March 20-22, 2018, Denver Marriott Tech Center
May 14-17, 2018, Austin Convention Center
All Upcoming Live Events
Infographics
SmartNICs aren't just about achieving scale. They also have a major impact in reducing CAPEX and OPEX requirements.
Hot Topics
When Will 6G Arrive? Hopefully Never, Says BT's McRae
Iain Morris, News Editor, 11/21/2017
Let's Talk About 5G Efficiency, Not Wacky Services
Iain Morris, News Editor, 11/21/2017
Top 5 Tech Turkeys 2017
Dan Jones, Mobile Editor, 11/22/2017
AT&T's Lurie Leaps to Synchronoss as New CEO
Dan Jones, Mobile Editor, 11/17/2017
Wireless Could Arrive Soon in NYC Subway Tunnels
Dan Jones, Mobile Editor, 11/20/2017
Animals with Phones
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.

Like Us on Facebook
Twitter Feed
Partner Perspectives - content from our sponsors
The Mobile Broadband Road Ahead
By Kevin Taylor, for Huawei
All Partner Perspectives