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Wireless subscriber growth has slowed for AT&T as the company prepares to do battle with rival Verizon Wireless.
AT&T added 400,000 new contract customers in the fourth quarter of 2010. In the year-ago quarter, by comparison, the company added 910,000 so-called postpaid subscribers. And in the third quarter of 2010, it added 910,000 contract customers.
Meanwhile, Verizon Wireless, which reported earnings earlier this week, said it added about 872,000 contract customers in the fourth quarter of 2010. Verizon also saw its sales of new contract customers slow.
In addition, AT&T reported that it added 442,000iPad andAndroid tablet customers, who are primarily prepaid.
Postpaid or contract customers are more valuable because they tend to spend more than prepaid customers and to be more loyal to the service.
For the fourth quarter, AT&T reported earnings of $1.1 billion, or 18 cents a share. This includes a 26 cents a share charge for pension accounting. On a non-GAAP basis, earnings were 55 cents a share, a penny better than what analysts had expected. Revenue for the fourth quarter was $31.4 billion, up 2.1 percent from a year ago.
For the year, AT&T reported earnings of $19.9 billion, or $3.35 a share, on revenue of $124.3 billion. This compares to earnings of $12.1 billion, or $2.05 a share in 2009.
Next month, AT&T will lose its exclusive hold on the Apple iPhone, when Verizon Wireless begins selling its version of the popular smartphone. There has been a lot of speculation about AT&T losing customers to Verizon, which many critics say has a more reliable network.
But AT&T claims that its lineup of new smartphones and tablets puts it in a strong position to compete against Verizon. AT&T reported that it was still able to activate 4.1 million iPhones during the fourth quarter, even as it was being widely reported that Verizon would announce its version of theiPhone in January. The company activated 5.2 million iPhones in the third quarter of 2010.
AT&T will host a conference call for investors and analysts at 7:30 a.m. PT. Stay tuned for updates.
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AT&T added 400,000 new contract customers in the fourth quarter of 2010. In the year-ago quarter, by comparison, the company added 910,000 so-called postpaid subscribers. And in the third quarter of 2010, it added 910,000 contract customers.
Meanwhile, Verizon Wireless, which reported earnings earlier this week, said it added about 872,000 contract customers in the fourth quarter of 2010. Verizon also saw its sales of new contract customers slow.
In addition, AT&T reported that it added 442,000iPad andAndroid tablet customers, who are primarily prepaid.
Postpaid or contract customers are more valuable because they tend to spend more than prepaid customers and to be more loyal to the service.
For the fourth quarter, AT&T reported earnings of $1.1 billion, or 18 cents a share. This includes a 26 cents a share charge for pension accounting. On a non-GAAP basis, earnings were 55 cents a share, a penny better than what analysts had expected. Revenue for the fourth quarter was $31.4 billion, up 2.1 percent from a year ago.
For the year, AT&T reported earnings of $19.9 billion, or $3.35 a share, on revenue of $124.3 billion. This compares to earnings of $12.1 billion, or $2.05 a share in 2009.
Next month, AT&T will lose its exclusive hold on the Apple iPhone, when Verizon Wireless begins selling its version of the popular smartphone. There has been a lot of speculation about AT&T losing customers to Verizon, which many critics say has a more reliable network.
But AT&T claims that its lineup of new smartphones and tablets puts it in a strong position to compete against Verizon. AT&T reported that it was still able to activate 4.1 million iPhones during the fourth quarter, even as it was being widely reported that Verizon would announce its version of theiPhone in January. The company activated 5.2 million iPhones in the third quarter of 2010.
AT&T will host a conference call for investors and analysts at 7:30 a.m. PT. Stay tuned for updates.
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