AT&T Piles the Hurt on Cable

AT&T's U-verse customer gains add to the pressure imposed by Verizon's FiOS first-quarter numbers

Mari Silbey, Senior Editor, Cable/Video

April 24, 2013

1 Min Read
AT&T Piles the Hurt on Cable

If Verizon Communications Inc. had a strong first quarter with its FiOS business, AT&T Inc. had a knock-out one with U-verse: The telco added a whopping 731,000 U-verse Internet subscribers and 232,000 TV subscribers during the first three months of 2013. (See FiOS Turns the Screw on Cable.) As cable providers continue to lose video service customers, AT&T and Verizon are scooping up market share with consistent subscriber gains. AT&T's wireline revenue numbers also reflect the telecom sector's improving fortunes in the pay-TV business: U-verse revenues grew 31.5 percent year-on-year -- a nice offset to the company's declining landline phone business -- and the average revenue per user for customers with a triple-play package has stayed above $170. On the broadband services front, AT&T is proving that the threat of Google Fiber and other gigabit deployments is still a weak one at present. Despite the company's fiber-to-the-node architecture, and the speed limits of its copper-based last mile, AT&T is still raking in new broadband customers. While Google and others are promising 1Gbit/s Internet access speeds, AT&T proudly reports that "more than 56 percent of U-verse broadband subscribers have a plan delivering speeds up to 10 Mbit/s or higher." At the end of the first quarter, AT&T had 8.4 million U-verse broadband subscribers and 4.8 million U-verse TV customers. For more on AT&T's first quarter, see AT&T Wireless Revs Up 21 percent in Q1 2013 and AT&T Says LTE Deployment Is Ahead of Schedule. — Mari Silbey, Special to Light Reading Cable

About the Author(s)

Mari Silbey

Senior Editor, Cable/Video

Mari Silbey is a senior editor covering broadband infrastructure, video delivery, smart cities and all things cable. Previously, she worked independently for nearly a decade, contributing to trade publications, authoring custom research reports and consulting for a variety of corporate and association clients. Among her storied (and sometimes dubious) achievements, Mari launched the corporate blog for Motorola's Home division way back in 2007, ran a content development program for Limelight Networks and did her best to entertain the video nerd masses as a long-time columnist for the media blog Zatz Not Funny. She is based in Washington, D.C.

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