AT&T successfully battled cable operators in the high-speed data arena in the first quarter, adding 511,000 DSL lines, up 20% from 425,000 in Q4, to reach more than 7.4 million broadband customers as of March 31, 2006. However, Ma Bell lost ground in its core telephone business. AT&T's retail consumer phone lines declined by 267,000 in the first quarter as MSOs continued to ramp their VoIP customer bases.
In a move to strengthen its DSL offering, AT&T introduced a new 6 Mbps downstream service for $27.99 a month, taking aim at cable's higher-priced, high-speed Internet packages.
Turning to wireless, AT&T's Cingular division added 1.7 million subscribers in Q1, boosting its total to 55.8 million with average monthly churn dropping to 1.9 percent.