AT&T announces 26 percent earnings growth for Q2, $4b profit
By Donald Melanson 
posted July 22nd 2010 11:27AM
posted July 22nd 2010 11:27AM
There may be plenty of tales of intrigue behind the scenes, but it looks like AT&T is still doing alright when it comes to raking in the cash -- it's now announced a 26 percent increase in earnings for the quarter that's just ended. In terms of hard numbers, that translates to a profit of $4.02 billion (up from $3.2 billion a year ago), and $30.8 billion in revenue, which is actually up just 0.6 percent over the previous year, although that modest gain is partly attributed to AT&T's sale of Sterling Commerce to IBM for $1.4 billion (which is not included in its results). Other notable stats include 3.2 million iPhone activations for the quarter (a company record), 1.6 million "organic net adds" in wireless subscribers for a total of 90.1 million, and the company's first ever billion-dollar revenue quarter for its U-verse services -- all of which led AT&T CFO Rick Lindner to say that the company is "pleased, pleased across the board." Full press release is after the break. AT&T Delivers Double-Digit Earnings Growth in Second Quarter, Raises Full-Year Outlook
Consolidated Revenues Increase, Margins Expand and Cash Flow Remains Strong
* $0.68 diluted EPS compares with $0.54 diluted EPS in the second quarter of 2009, up 25.9 percent; up 13.0 percent excluding a $0.07 one-time gain from a Telmex Internacional stock transaction
* $30.8 billion second-quarter consolidated revenues from continuing operations, up $194 million, or 0.6 percent, versus the year-earlier period and up $278 million, or 0.9 percent, sequentially
* Consolidated operating margin expansion to 19.8 percent, up from 18.0 percent in the year-earlier quarter
* 1.6 million organic net adds in total wireless subscribers, best-ever second quarter, to reach 90.1 million in service
* 3.2 million iPhone activations in second quarter, a company record
* Best-ever wireless churn levels, with 1.01 percent postpaid churn and 1.29 percent total churn
* 10.3 percent increase in wireless service revenues, with postpaid subscriber ARPU (average monthly revenues per subscriber) up 3.4 percent; sixth consecutive quarter with a year-over-year increase in postpaid ARPU
* 27.2 percent growth in wireless data revenues, up $936 million versus the year-earlier quarter
* 2.9 million net increase in 3G postpaid integrated devices on AT&T's wireless network to reach 29.7 million
* 32.0 percent growth in wireline consumer IP data revenues driven by AT&T U-verse® expansion; first-ever billion-dollar revenue quarter for AT&T U-verse services
* 209,000 net gain in AT&T U-verse TV subscribers to reach 2.5 million in service, with continued high broadband and voice attach rates
* 15.8 percent growth in revenues from strategic business services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services
Note: AT&T's second-quarter earnings conference call will be broadcast live via the Internet at 10 a.m. ET on Thursday, July 22, 2010, at www.att.com/investor.relations.
DALLAS--(BUSINESS WIRE)--AT&T Inc. (NYSE:T) today reported solid second-quarter results highlighted by double-digit earnings growth, an increase in consolidated revenues and improved margins. These results were driven by continued growth in mobile broadband, including a record quarter for iPhone activations, gains in IP-based and strategic business services and disciplined execution on cost initiatives.
"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year"
"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer.
"We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver - mobile broadband. I am excited by the opportunities ahead."
Second-Quarter Financial Results
(During the second quarter, AT&T announced it had entered into a definitive agreement with IBM to sell Sterling Commerce for approximately $1.4 billion in cash. AT&T expects the sale to close in the second half of 2010. Second-quarter comparisons are based on results from continuing operations, which exclude results from Sterling Commerce in all periods.)
For the quarter ended June 30, 2010, AT&T's consolidated revenues totaled $30.8 billion, up $194 million, or 0.6 percent, versus the year-earlier quarter, marking the company's second consecutive quarter with a year-over-year revenue increase. Versus the first quarter of this year, consolidated revenues were up $278 million, or 0.9 percent.
Compared with results for the second quarter of 2009, operating expenses were $24.7 billion versus $25.1 billion; operating income was $6.1 billion, up from $5.5 billion; and AT&T's operating income margin expanded to 19.8 percent, up from 18.0 percent. Total employee force is down by more than 10,000 since year-end 2009.
Second-quarter 2010 net income attributable to AT&T totaled $4.0 billion, or $0.68 per diluted share, up 25.9 percent, including a $0.07 one-time gain from the exchange of Telmex Internacional stock for shares of América Móvil. Excluding the gain from the Telmex Internacional transaction, earnings grew 13.0 percent to $0.61 per diluted share. These results compare with net income attributable to AT&T of $3.2 billion, or $0.54 per diluted share, in the year-earlier second quarter.
Second-quarter 2010 cash from operating activities totaled $8.6 billion; capital expenditures totaled $4.9 billion, including a nearly 60-percent increase in wireless-related capital investment versus the year-earlier quarter, as AT&T aggressively deploys next-generation wireless broadband networks. Free cash flow - cash from operating activities minus capital expenditures - totaled $3.7 billion.
Compared with results for the first half of 2009, year to date through the second quarter, cash from operating activities totaled $15.8 billion versus $15.8 billion; capital expenditures totaled $8.2 billion versus $7.4 billion; and free cash flow totaled $7.6 billion versus $8.4 billion.
Updating Outlook
Due to improved revenue trends and strong execution, AT&T has updated its earnings outlook for full-year 2010. Previously the company expected stable-to-improved earnings per share, stable-to-improved consolidated operating income margins and free cash flow in line with 2008 results. The company now expects strong earnings per share growth for full-year 2010, improved consolidated operating income margins and free cash flow above 2008 levels.
Wireless Operational Highlights
AT&T delivered strong second-quarter growth in its wireless business, led by its premier data network, industry leadership in mobile broadband and a compelling array of devices and applications. Highlights included:
Strong Second-Quarter Subscriber Gain. AT&T posted an organic net gain in total wireless subscribers of 1.6 million, to reach 90.1 million in service. Second-quarter net add growth reflects rapid adoption of smartphones, increases in prepaid subscribers and growth in a host of connected devices such as eReaders, global positioning systems and alarm monitoring systems. Connected devices net adds were 896,000 in the quarter to reach 6.7 million, and retail postpaid net adds totaled 496,000 to reach 67.0 million.
Best-ever Subscriber Churn Levels. For the sixth consecutive quarter, AT&T had year-over-year improvement in both total and postpaid wireless churn. Postpaid churn was 1.01 percent, down from 1.07 percent in the year-earlier quarter, and total churn was 1.29 percent versus 1.48 percent in the second quarter of 2009 - both record lows for the company.
Robust Wireless Data Revenue Growth. Wireless data revenues - from messaging, Internet access, access to applications and related services - increased $936 million, or 27.2 percent, from the year-earlier quarter to $4.4 billion. AT&T wireless subscribers on data plans increased more than 24 percent over the past year. Versus the year-earlier quarter, total text messages carried on the AT&T network increased 41.7 percent to 154 billion and multimedia messages more than doubled to 2.6 billion.
Continued Postpaid ARPU Growth. Driven by strong data growth, postpaid subscriber ARPU increased 3.4 percent versus the year-earlier quarter to $62.63, despite including 1.6 million subscribers from the acquisition of properties from Verizon Wireless. This marked the sixth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $21.07, up 18.6 percent versus the year-earlier quarter, and total postpaid subscriber revenues continued recent trends, with solid double-digit growth, reflecting increases in both voice and data.
Strong Integrated Device Growth. Key drivers of wireless data growth are increased penetration of integrated devices (handsets with QWERTY or virtual keyboards in addition to voice functionality) and greater usage of AT&T's mobile broadband network, the nation's fastest. The number of 3G postpaid integrated devices on AT&T's wireless network increased by 2.9 million to 29.7 million, an increase of 98.2 percent year over year and 10.8 percent sequentially. At the end of the quarter, 53.2 percent of AT&T's 67.0 million postpaid subscribers had integrated devices, up from 36.3 percent one year earlier. The average ARPU for integrated devices on AT&T's network is 1.7 times that of the company's nonintegrated-device base. More than 80 percent of integrated device subscribers are on FamilyTalk and/or business discount plans. Churn levels for these plans continue to run below the company's total and postpaid base.
3.2 Million iPhone Activations. On June 24, AT&T began offering iPhone 4, the most powerful iPhone yet. Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27 percent of those activations were for customers who were new to AT&T.
Wireless Margin Expansion. Even with the volumes associated with the June launch of iPhone 4, in the second quarter, AT&T delivered substantial year-over-year wireless margin expansion, driven by continued solid revenue growth, reduced churn, improved operating efficiencies and further growth in the company's base of high-quality subscribers. AT&T's wireless operating income margin was 28.8 percent versus 24.9 percent in the year-earlier quarter, and AT&T's wireless OIBDA service margin was 43.1 percent, up from 40.1 percent in the second quarter of 2009 (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues). Wireless service revenues increased 10.3 percent to $13.2 billion in the second quarter, and total wireless revenues, which include equipment sales, were up 7.7 percent to $14.2 billion. Second-quarter wireless operating expenses totaled $10.1 billion, up 2.1 percent versus the year-earlier quarter, and wireless operating income was $4.1 billion, up 24.7 percent year over year.
Wireline Operational Highlights
AT&T's second-quarter wireline results were highlighted by improving trends in revenues and margins, further expansion in AT&T U-verse services, sustained mid-teens growth in revenues from strategic business services and solid cost management, which helped support improving margins. Highlights included:
Second Consecutive Quarter of Sequential Growth in Wireline Consumer Revenues. Driven by strength in IP data services, in the second quarter, total revenue from residential customers totaled $5.4 billion, flat compared to the second quarter of 2009. Versus the first quarter of 2010, consumer wireline revenues increased 1.1 percent. This is the second consecutive quarter of sequential growth.
Gains in AT&T U-verse TV, with Growth in Integrated Broadband and Voice Services. AT&T U-verse TV subscribers increased by 209,000 in the quarter to reach 2.5 million, up almost 60 percent over the past year. In the second quarter, the AT&T U-verse High Speed Internet attach rate continued to run above 90 percent, and about two-thirds of subscribers took AT&T U-verse Voice. More than three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play option from AT&T. ARPU for U-verse triple play customers was nearly $160, up 13.8 percent year over year and 6.8 percent from the first quarter of 2010.
AT&T's U-verse deployment now reaches 25 million living units. Companywide penetration of eligible living units is more than 13 percent, and across areas marketed to for 30 months or more, overall penetration is more than 22 percent. AT&T's total video subscribers, which combine the company's U-verse and bundled satellite customers, reached 4.6 million at the end of the quarter, representing 17.9 percent of households served.
U-verse Revenues Exceed $1 Billion for the Quarter. Increased AT&T U-verse penetration drove 32.0 percent year-over-year growth in consumer IP revenues (broadband, U-verse TV and U-verse Voice). U-verse continues to drive a transformation in AT&T's consumer business, reflected by the fact that consumer IP revenues now represent 40.4 percent of AT&T's consumer wireline revenues, up from 30.6 percent in the year-earlier quarter. In the second quarter, AT&T U-verse revenues exceeded $1 billion for the first time, more than twice the U-verse revenues in the second quarter of 2009.
Consumer Connection Trends. In the second quarter, AT&T posted a decline in total consumer revenue connections due primarily to expected declines in traditional voice access lines consistent with broader industry trends, somewhat offset by increases in U-verse TV and VoIP (Voice over Internet Protocol) connections. AT&T U-verse Voice connections increased by 183,000 in the quarter and 758,000 over the past four quarters. Total consumer revenue connections at the end of the first quarter were 44.3 million, compared with 46.3 million at the end of the second quarter of 2009 and 45.0 million at the end of the first quarter of 2010. At the end of the second quarter, AT&T had 16 million total wired broadband connections, up 404,000 over the past year and down 92,000 from first-quarter 2010 levels.
Further Signs of Stabilization in Business Markets. AT&T posted its best year-over-year business revenue comparisons in five quarters - reflecting continued solid sales performance and continued improvement in key economic metrics. Total business revenues were $9.6 billion, a decline of 4.7 percent versus the year-earlier quarter. Business service revenues, which exclude CPE, declined 4.0 percent, the third consecutive quarter of improvement, and decreased slightly sequentially, down 0.7 percent.
Business IP Revenues Drive Overall Business Data Growth. Business IP data revenues grew 9.1 percent overall, the largest year-over-year increase in four quarters, led by growth in VPN revenues. This generated total business data growth of 0.3 percent, the first growth in this category in five quarters. Global enterprise IP data revenues grew 10.8 percent. Approximately 70 percent of AT&T's frame customers have made the transition to IP-based solutions, which allow them to easily add managed services such as network security, hosting and IP conferencing on top of their infrastructures.
15.8 Percent Growth in Strategic Business Services Revenues. Revenues from new-generation capabilities that lead AT&T's most advanced business solutions - including Ethernet, VPNs, hosting, IP conferencing and application services - grew 15.8 percent versus the year-earlier quarter and were up 4.6 percent from the first quarter of 2010, continuing AT&T's strong trends in this category.
Wireline Revenues Flat Sequentially. Led by improved consumer and business customer trends, total wireline revenues posted their smallest year-over-year decline in five quarters, down 3.7 percent, and were essentially flat sequentially. Second-quarter wireline operating expenses were $13.5 billion, down 4.3 percent versus the second quarter of 2009 and down 1.5 percent sequentially. Wireline operating income totaled $1.9 billion, compared to $1.9 billion in the second quarter of 2009 and $1.7 billion in the first quarter of 2010. AT&T's second-quarter wireline operating income margin was 12.2 percent, compared with 11.7 percent in the year-earlier quarter and 11.1 percent in the first quarter of 2010.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTVSM brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATTNews. Find us on Facebook at www.Facebook.com/ATT to discover more about our consumer and wireless services or at www.Facebook.com/ATTSmallBiz to discover more about our small business services.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
© 2010 AT&T Intellectual Property. All rights reserved. 3G service not available in all areas. AT&T, the AT&T logo and all other marks contained herein are trademarks of AT&T Intellectual Property and/or AT&T affiliated companies.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's Web site at www.att.com/investor.relations. Accompanying financial statements follow.
NOTE: OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from Segment Operating Income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
NOTE: Free cash flow is defined as cash from operations minus capital expenditures. We believe this metric provides useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views it as a measure of cash available to pay debt and return cash to shareowners.
OIBDA DISCUSSION
OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA margin is calculated as OIBDA divided by service revenues. OIBDA differs from Segment Operating Income (Loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
We believe these measures are relevant and useful information to our investors as they are part of AT&T Mobility's internal management reporting and planning processes and are important metrics that AT&T Mobility's management uses to evaluate the operating performance of its regional operations. These measures are used by management as a gauge of AT&T Mobility's success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T Mobility's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing AT&T Mobility's performance with that of many of its competitors. The financial and operating metrics which affect OIBDA include the key revenue and expense drivers for which AT&T Mobility's operating managers are responsible and upon which we evaluate their performance. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA excludes other, net, minority interest in earnings of consolidated entities and equity in net income (loss) of affiliates, as these do not reflect the operating results of AT&T Mobility's subscriber base and its national footprint that AT&T Mobility utilizes to obtain and service its customers. Equity in net income (loss) of affiliates represents AT&T Mobility's proportionate share of the net income (loss) of affiliates in which it exercises significant influence, but does not control. As AT&T Mobility does not control these entities, our management excludes these results when evaluating the performance of our primary operations. OIBDA excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with its capitalization and tax structures. Finally, OIBDA excludes depreciation and amortization, in order to eliminate the impact of capital investments.
We believe OIBDA as a percentage of service revenues to be a more relevant measure of AT&T Mobility's operating margin than OIBDA as a percentage of total revenue. AT&T Mobility generally subsidizes a portion of its handset sales, all of which are recognized in the period in which AT&T Mobility sells the handset. This results in a disproportionate impact on its margin in that period. Management views this equipment subsidy as a cost to acquire or retain a subscriber, which is recovered through the ongoing service revenue that is generated by the subscriber. AT&T Mobility also uses service revenues to calculate margin to facilitate comparison, both internally and externally with its competitors, as they calculate their margins using services revenue as well.
There are material limitations to using these non-GAAP financial measures. OIBDA and OIBDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates, which directly affect AT&T Mobility's net income. Management compensates for these limitations by carefully analyzing how its competitors present performance measures that are similar in nature to OIBDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. OIBDA and OIBDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.
FREE CASH FLOW DISCUSSION
Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow after dividends is defined as cash from operations minus capital expenditures and dividends. Free cash flow yield is defined as cash from continuing operations less capital expenditures as a percentage of market capitalization computed on the last trading day of the quarter. Market capitalization is computed by multiplying the end of period stock price by the end of period shares outstanding. We believe these metrics provide useful information to our investors because management monthly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views it as a measure of cash available to pay debt and return cash to shareowners.
Consolidated Revenues Increase, Margins Expand and Cash Flow Remains Strong
* $0.68 diluted EPS compares with $0.54 diluted EPS in the second quarter of 2009, up 25.9 percent; up 13.0 percent excluding a $0.07 one-time gain from a Telmex Internacional stock transaction
* $30.8 billion second-quarter consolidated revenues from continuing operations, up $194 million, or 0.6 percent, versus the year-earlier period and up $278 million, or 0.9 percent, sequentially
* Consolidated operating margin expansion to 19.8 percent, up from 18.0 percent in the year-earlier quarter
* 1.6 million organic net adds in total wireless subscribers, best-ever second quarter, to reach 90.1 million in service
* 3.2 million iPhone activations in second quarter, a company record
* Best-ever wireless churn levels, with 1.01 percent postpaid churn and 1.29 percent total churn
* 10.3 percent increase in wireless service revenues, with postpaid subscriber ARPU (average monthly revenues per subscriber) up 3.4 percent; sixth consecutive quarter with a year-over-year increase in postpaid ARPU
* 27.2 percent growth in wireless data revenues, up $936 million versus the year-earlier quarter
* 2.9 million net increase in 3G postpaid integrated devices on AT&T's wireless network to reach 29.7 million
* 32.0 percent growth in wireline consumer IP data revenues driven by AT&T U-verse® expansion; first-ever billion-dollar revenue quarter for AT&T U-verse services
* 209,000 net gain in AT&T U-verse TV subscribers to reach 2.5 million in service, with continued high broadband and voice attach rates
* 15.8 percent growth in revenues from strategic business services such as Ethernet, Virtual Private Networks (VPNs), hosting and application services
Note: AT&T's second-quarter earnings conference call will be broadcast live via the Internet at 10 a.m. ET on Thursday, July 22, 2010, at www.att.com/investor.relations.
DALLAS--(BUSINESS WIRE)--AT&T Inc. (NYSE:T) today reported solid second-quarter results highlighted by double-digit earnings growth, an increase in consolidated revenues and improved margins. These results were driven by continued growth in mobile broadband, including a record quarter for iPhone activations, gains in IP-based and strategic business services and disciplined execution on cost initiatives.
"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year"
"We delivered another strong quarter, with improved revenue trends, double-digit earnings growth and solid cash flow. These results add to our confidence going into the second half of the year," said Randall Stephenson, AT&T chairman and chief executive officer.
"We continue to see positive signs of growth in almost every customer segment of our business, especially wireless, which speaks to the quality of our execution and our leadership in the industry's most powerful growth driver - mobile broadband. I am excited by the opportunities ahead."
Second-Quarter Financial Results
(During the second quarter, AT&T announced it had entered into a definitive agreement with IBM to sell Sterling Commerce for approximately $1.4 billion in cash. AT&T expects the sale to close in the second half of 2010. Second-quarter comparisons are based on results from continuing operations, which exclude results from Sterling Commerce in all periods.)
For the quarter ended June 30, 2010, AT&T's consolidated revenues totaled $30.8 billion, up $194 million, or 0.6 percent, versus the year-earlier quarter, marking the company's second consecutive quarter with a year-over-year revenue increase. Versus the first quarter of this year, consolidated revenues were up $278 million, or 0.9 percent.
Compared with results for the second quarter of 2009, operating expenses were $24.7 billion versus $25.1 billion; operating income was $6.1 billion, up from $5.5 billion; and AT&T's operating income margin expanded to 19.8 percent, up from 18.0 percent. Total employee force is down by more than 10,000 since year-end 2009.
Second-quarter 2010 net income attributable to AT&T totaled $4.0 billion, or $0.68 per diluted share, up 25.9 percent, including a $0.07 one-time gain from the exchange of Telmex Internacional stock for shares of América Móvil. Excluding the gain from the Telmex Internacional transaction, earnings grew 13.0 percent to $0.61 per diluted share. These results compare with net income attributable to AT&T of $3.2 billion, or $0.54 per diluted share, in the year-earlier second quarter.
Second-quarter 2010 cash from operating activities totaled $8.6 billion; capital expenditures totaled $4.9 billion, including a nearly 60-percent increase in wireless-related capital investment versus the year-earlier quarter, as AT&T aggressively deploys next-generation wireless broadband networks. Free cash flow - cash from operating activities minus capital expenditures - totaled $3.7 billion.
Compared with results for the first half of 2009, year to date through the second quarter, cash from operating activities totaled $15.8 billion versus $15.8 billion; capital expenditures totaled $8.2 billion versus $7.4 billion; and free cash flow totaled $7.6 billion versus $8.4 billion.
Updating Outlook
Due to improved revenue trends and strong execution, AT&T has updated its earnings outlook for full-year 2010. Previously the company expected stable-to-improved earnings per share, stable-to-improved consolidated operating income margins and free cash flow in line with 2008 results. The company now expects strong earnings per share growth for full-year 2010, improved consolidated operating income margins and free cash flow above 2008 levels.
Wireless Operational Highlights
AT&T delivered strong second-quarter growth in its wireless business, led by its premier data network, industry leadership in mobile broadband and a compelling array of devices and applications. Highlights included:
Strong Second-Quarter Subscriber Gain. AT&T posted an organic net gain in total wireless subscribers of 1.6 million, to reach 90.1 million in service. Second-quarter net add growth reflects rapid adoption of smartphones, increases in prepaid subscribers and growth in a host of connected devices such as eReaders, global positioning systems and alarm monitoring systems. Connected devices net adds were 896,000 in the quarter to reach 6.7 million, and retail postpaid net adds totaled 496,000 to reach 67.0 million.
Best-ever Subscriber Churn Levels. For the sixth consecutive quarter, AT&T had year-over-year improvement in both total and postpaid wireless churn. Postpaid churn was 1.01 percent, down from 1.07 percent in the year-earlier quarter, and total churn was 1.29 percent versus 1.48 percent in the second quarter of 2009 - both record lows for the company.
Robust Wireless Data Revenue Growth. Wireless data revenues - from messaging, Internet access, access to applications and related services - increased $936 million, or 27.2 percent, from the year-earlier quarter to $4.4 billion. AT&T wireless subscribers on data plans increased more than 24 percent over the past year. Versus the year-earlier quarter, total text messages carried on the AT&T network increased 41.7 percent to 154 billion and multimedia messages more than doubled to 2.6 billion.
Continued Postpaid ARPU Growth. Driven by strong data growth, postpaid subscriber ARPU increased 3.4 percent versus the year-earlier quarter to $62.63, despite including 1.6 million subscribers from the acquisition of properties from Verizon Wireless. This marked the sixth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $21.07, up 18.6 percent versus the year-earlier quarter, and total postpaid subscriber revenues continued recent trends, with solid double-digit growth, reflecting increases in both voice and data.
Strong Integrated Device Growth. Key drivers of wireless data growth are increased penetration of integrated devices (handsets with QWERTY or virtual keyboards in addition to voice functionality) and greater usage of AT&T's mobile broadband network, the nation's fastest. The number of 3G postpaid integrated devices on AT&T's wireless network increased by 2.9 million to 29.7 million, an increase of 98.2 percent year over year and 10.8 percent sequentially. At the end of the quarter, 53.2 percent of AT&T's 67.0 million postpaid subscribers had integrated devices, up from 36.3 percent one year earlier. The average ARPU for integrated devices on AT&T's network is 1.7 times that of the company's nonintegrated-device base. More than 80 percent of integrated device subscribers are on FamilyTalk and/or business discount plans. Churn levels for these plans continue to run below the company's total and postpaid base.
3.2 Million iPhone Activations. On June 24, AT&T began offering iPhone 4, the most powerful iPhone yet. Preorder sales of iPhone 4 were 10 times higher than the first day of preordering for iPhone 3GS a year earlier. For the full second quarter, AT&T iPhone activations totaled 3.2 million, the most quarterly iPhone activations ever. Approximately 27 percent of those activations were for customers who were new to AT&T.
Wireless Margin Expansion. Even with the volumes associated with the June launch of iPhone 4, in the second quarter, AT&T delivered substantial year-over-year wireless margin expansion, driven by continued solid revenue growth, reduced churn, improved operating efficiencies and further growth in the company's base of high-quality subscribers. AT&T's wireless operating income margin was 28.8 percent versus 24.9 percent in the year-earlier quarter, and AT&T's wireless OIBDA service margin was 43.1 percent, up from 40.1 percent in the second quarter of 2009 (OIBDA service margin is operating income before depreciation and amortization, divided by total service revenues). Wireless service revenues increased 10.3 percent to $13.2 billion in the second quarter, and total wireless revenues, which include equipment sales, were up 7.7 percent to $14.2 billion. Second-quarter wireless operating expenses totaled $10.1 billion, up 2.1 percent versus the year-earlier quarter, and wireless operating income was $4.1 billion, up 24.7 percent year over year.
Wireline Operational Highlights
AT&T's second-quarter wireline results were highlighted by improving trends in revenues and margins, further expansion in AT&T U-verse services, sustained mid-teens growth in revenues from strategic business services and solid cost management, which helped support improving margins. Highlights included:
Second Consecutive Quarter of Sequential Growth in Wireline Consumer Revenues. Driven by strength in IP data services, in the second quarter, total revenue from residential customers totaled $5.4 billion, flat compared to the second quarter of 2009. Versus the first quarter of 2010, consumer wireline revenues increased 1.1 percent. This is the second consecutive quarter of sequential growth.
Gains in AT&T U-verse TV, with Growth in Integrated Broadband and Voice Services. AT&T U-verse TV subscribers increased by 209,000 in the quarter to reach 2.5 million, up almost 60 percent over the past year. In the second quarter, the AT&T U-verse High Speed Internet attach rate continued to run above 90 percent, and about two-thirds of subscribers took AT&T U-verse Voice. More than three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play option from AT&T. ARPU for U-verse triple play customers was nearly $160, up 13.8 percent year over year and 6.8 percent from the first quarter of 2010.
AT&T's U-verse deployment now reaches 25 million living units. Companywide penetration of eligible living units is more than 13 percent, and across areas marketed to for 30 months or more, overall penetration is more than 22 percent. AT&T's total video subscribers, which combine the company's U-verse and bundled satellite customers, reached 4.6 million at the end of the quarter, representing 17.9 percent of households served.
U-verse Revenues Exceed $1 Billion for the Quarter. Increased AT&T U-verse penetration drove 32.0 percent year-over-year growth in consumer IP revenues (broadband, U-verse TV and U-verse Voice). U-verse continues to drive a transformation in AT&T's consumer business, reflected by the fact that consumer IP revenues now represent 40.4 percent of AT&T's consumer wireline revenues, up from 30.6 percent in the year-earlier quarter. In the second quarter, AT&T U-verse revenues exceeded $1 billion for the first time, more than twice the U-verse revenues in the second quarter of 2009.
Consumer Connection Trends. In the second quarter, AT&T posted a decline in total consumer revenue connections due primarily to expected declines in traditional voice access lines consistent with broader industry trends, somewhat offset by increases in U-verse TV and VoIP (Voice over Internet Protocol) connections. AT&T U-verse Voice connections increased by 183,000 in the quarter and 758,000 over the past four quarters. Total consumer revenue connections at the end of the first quarter were 44.3 million, compared with 46.3 million at the end of the second quarter of 2009 and 45.0 million at the end of the first quarter of 2010. At the end of the second quarter, AT&T had 16 million total wired broadband connections, up 404,000 over the past year and down 92,000 from first-quarter 2010 levels.
Further Signs of Stabilization in Business Markets. AT&T posted its best year-over-year business revenue comparisons in five quarters - reflecting continued solid sales performance and continued improvement in key economic metrics. Total business revenues were $9.6 billion, a decline of 4.7 percent versus the year-earlier quarter. Business service revenues, which exclude CPE, declined 4.0 percent, the third consecutive quarter of improvement, and decreased slightly sequentially, down 0.7 percent.
Business IP Revenues Drive Overall Business Data Growth. Business IP data revenues grew 9.1 percent overall, the largest year-over-year increase in four quarters, led by growth in VPN revenues. This generated total business data growth of 0.3 percent, the first growth in this category in five quarters. Global enterprise IP data revenues grew 10.8 percent. Approximately 70 percent of AT&T's frame customers have made the transition to IP-based solutions, which allow them to easily add managed services such as network security, hosting and IP conferencing on top of their infrastructures.
15.8 Percent Growth in Strategic Business Services Revenues. Revenues from new-generation capabilities that lead AT&T's most advanced business solutions - including Ethernet, VPNs, hosting, IP conferencing and application services - grew 15.8 percent versus the year-earlier quarter and were up 4.6 percent from the first quarter of 2010, continuing AT&T's strong trends in this category.
Wireline Revenues Flat Sequentially. Led by improved consumer and business customer trends, total wireline revenues posted their smallest year-over-year decline in five quarters, down 3.7 percent, and were essentially flat sequentially. Second-quarter wireline operating expenses were $13.5 billion, down 4.3 percent versus the second quarter of 2009 and down 1.5 percent sequentially. Wireline operating income totaled $1.9 billion, compared to $1.9 billion in the second quarter of 2009 and $1.7 billion in the first quarter of 2010. AT&T's second-quarter wireline operating income margin was 12.2 percent, compared with 11.7 percent in the year-earlier quarter and 11.1 percent in the first quarter of 2010.
About AT&T
AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates – AT&T operating companies – are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T │DIRECTVSM brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.
Additional information about AT&T Inc. and the products and services provided by AT&T subsidiaries and affiliates is available at http://www.att.com. This AT&T news release and other announcements are available at http://www.att.com/newsroom and as part of an RSS feed at www.att.com/rss. Or follow our news on Twitter at @ATTNews. Find us on Facebook at www.Facebook.com/ATT to discover more about our consumer and wireless services or at www.Facebook.com/ATTSmallBiz to discover more about our small business services.
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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results may differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update or revise statements contained in this news release based on new information or otherwise. This news release may contain certain non-GAAP financial measures. Reconciliations between the non-GAAP financial measures and the GAAP financial measures are available on the company's Web site at www.att.com/investor.relations. Accompanying financial statements follow.
NOTE: OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA differs from Segment Operating Income (loss), as calculated in accordance with generally accepted accounting principles (GAAP), in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with GAAP. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
NOTE: Free cash flow is defined as cash from operations minus capital expenditures. We believe this metric provides useful information to our investors because management regularly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views it as a measure of cash available to pay debt and return cash to shareowners.
OIBDA DISCUSSION
OIBDA is defined as operating income (loss) before depreciation and amortization. OIBDA margin is calculated as OIBDA divided by service revenues. OIBDA differs from Segment Operating Income (Loss), as calculated in accordance with GAAP, in that it excludes depreciation and amortization. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA is not presented as an alternative measure of operating results or cash flows from operations, as determined in accordance with generally accepted accounting principles. Our calculation of OIBDA, as presented, may differ from similarly titled measures reported by other companies.
We believe these measures are relevant and useful information to our investors as they are part of AT&T Mobility's internal management reporting and planning processes and are important metrics that AT&T Mobility's management uses to evaluate the operating performance of its regional operations. These measures are used by management as a gauge of AT&T Mobility's success in acquiring, retaining and servicing subscribers because we believe these measures reflect AT&T Mobility's ability to generate and grow subscriber revenues while providing a high level of customer service in a cost-effective manner. Management also uses these measures as a method of comparing AT&T Mobility's performance with that of many of its competitors. The financial and operating metrics which affect OIBDA include the key revenue and expense drivers for which AT&T Mobility's operating managers are responsible and upon which we evaluate their performance. OIBDA does not give effect to cash used for debt service requirements and thus does not reflect available funds for distributions, reinvestment or other discretionary uses. OIBDA excludes other, net, minority interest in earnings of consolidated entities and equity in net income (loss) of affiliates, as these do not reflect the operating results of AT&T Mobility's subscriber base and its national footprint that AT&T Mobility utilizes to obtain and service its customers. Equity in net income (loss) of affiliates represents AT&T Mobility's proportionate share of the net income (loss) of affiliates in which it exercises significant influence, but does not control. As AT&T Mobility does not control these entities, our management excludes these results when evaluating the performance of our primary operations. OIBDA excludes interest expense and the provision for income taxes. Excluding these items eliminates the expenses associated with its capitalization and tax structures. Finally, OIBDA excludes depreciation and amortization, in order to eliminate the impact of capital investments.
We believe OIBDA as a percentage of service revenues to be a more relevant measure of AT&T Mobility's operating margin than OIBDA as a percentage of total revenue. AT&T Mobility generally subsidizes a portion of its handset sales, all of which are recognized in the period in which AT&T Mobility sells the handset. This results in a disproportionate impact on its margin in that period. Management views this equipment subsidy as a cost to acquire or retain a subscriber, which is recovered through the ongoing service revenue that is generated by the subscriber. AT&T Mobility also uses service revenues to calculate margin to facilitate comparison, both internally and externally with its competitors, as they calculate their margins using services revenue as well.
There are material limitations to using these non-GAAP financial measures. OIBDA and OIBDA margin, as we have defined them, may not be comparable to similarly titled measures reported by other companies. Furthermore, these performance measures do not take into account certain significant items, including depreciation and amortization, interest expense, tax expense and equity in net income (loss) of affiliates, which directly affect AT&T Mobility's net income. Management compensates for these limitations by carefully analyzing how its competitors present performance measures that are similar in nature to OIBDA as we present it, and considering the economic effect of the excluded expense items independently as well as in connection with its analysis of net income as calculated in accordance with GAAP. OIBDA and OIBDA margin should be considered in addition to, but not as a substitute for, other measures of financial performance reported in accordance with GAAP.
FREE CASH FLOW DISCUSSION
Free cash flow is defined as cash from operations minus capital expenditures. Free cash flow after dividends is defined as cash from operations minus capital expenditures and dividends. Free cash flow yield is defined as cash from continuing operations less capital expenditures as a percentage of market capitalization computed on the last trading day of the quarter. Market capitalization is computed by multiplying the end of period stock price by the end of period shares outstanding. We believe these metrics provide useful information to our investors because management monthly reviews free cash flow as an important indicator of how much cash is generated by normal business operations, including capital expenditures, and makes decisions based on it. Management also views it as a measure of cash available to pay debt and return cash to shareowners.
Meow.
@SarnGate
http://www.youtube.com/watch?v=Tn-YesqzvNk
profit
@SarnGate
Well, at least the company is pleased. Its customers sure aren't.
@detonator LMAO!!!
@SarnGate
Wow. That's a lot of dough. How about spreading the wealth ATT with the people that made you that rich and uncap the data limits?
@steel
Well I have no problem with AT&T, and cant reproduce the iPhone 4 antenna issue in Pittsburgh at least.
The money didn't appear from nowhere.
@detonator
freakin hilarious
@SarnGate so if your revenue only goes up 0.6% but your profit goes up 26% are they cutting costs within the business or something?
@srghyc Total employee force is down by more than 10,000 since year-end 2009...
@steel I've been super pleased with AT&T for over 4 years when it come to customer service. Wireless service...it hasn't been terrible for me, just not as great as it used to be in the post iPhone era.
@WixosTrix not to be a grammar fascist, but you mean pre iphone era?
@WixosTrix Exactly my experience with ATT.
@steel ive been very happy with at&t in my NJ/NYC area.
watching the tech blogs you'd have though att was imploding and losing customers to Verizon left right and center. Good job!
@jaffreywali
Not until the iphone jumps ship.
@jaffreywali
True, it's almost like bizarro world on Star Trek. If the commentators on Engadget hate something, it's going to be crazy successful, a la AT&T, Apple, the iPad, iPhone 4, etc, etc.
@Itchy Britches Ya except for most tech blogs do nothing but praise Apple products like they are the end all in the tech world. On rare occasions where they try to be objective they are taken to task by the fan boys for being overly critical of Apple and its "Miracle" products. Seriously Gizmodo should change their name to Applemodo as they are generally so far up Apples @ss it's not even funny...
@jaffreywali
This is because tech/nerd people do not understand the way the business side of things works. AT&T has the most new activations and the least amount of churn out of any of the major carriers. They don't lose people and they gain more people than anyone. I am not sure if all you tech/nerd people understand this, but the company with the most churn is your beloved Sprint.
@jaffreywali, stepping out of the box, one will learn a great majority of the iphone 4 activations were by previous iphone owners. At&t has been losing "wireless" subscribers to other carriers. Most of the wireless customers At&t lost were not previous iphone owners. At&t's announced earnings are in general across the board.
@scorpeo
You are ignorant. Go back and look at there churn numbers over the last year. They are by far fewer than Verizon and Sprint looks like a joke compared to them.
@ericmn1 i don't think that its apple products are the end all tech cuz they aren't. tech writers are smart enough to know that. i think its just that apple make really cool sh*t that people get excited about. its the mercedes of tech.
@businessman25, try reading my post again, then read your bile. I'd say your ignorance is bliss. Not to mention your grammar is terrible.
@system22 Having had the iPhone myself I can confidently say that in my personal experience as a phone it was hardly the "Mercedes of tech". As a phone is was one of the worst I have ever owned. As for a media player etc, it was fine but seriously its far from a mind blowing experience. I have no loyalty to any one company so when I realized that the i("Phone") didn't really function well as a phone it really negated a large reason for having it. I know too many people that buy tech products based on the logo slapped on the thing or the image they think they portrait by having the device perceived to be the "it" thing. For me though, it needs to work well first and foremost.
@ericmn1 what i mean is they are usually just sexy. they are usually sleek aluminum, very well designed, they don't use a lot of plastic, they don't feel cheap. thats what i mean by being a mercedes. a hyundai has a better warranty and probably breaks down less than a mercedes but people will still spend the extra money to drive the mercedes cuz its just well.. fancier. when you walk into a best buy and buy a toshiba laptop - sure its a cool thing. but for the people into it, going to the apple store to buy a macbook pro is a far superior experience. the employeess don't seem like they're waiting to get you out the door so they can take a smoke break.. when i picked up my iphone 4 in santa monica, the apple employee cut the plastic for me, handed it to me to unbox it myself and then took a photo - like she was happier than i was.
you may have had bad experiences, but most (not all) people investing in an apple product usually enjoy the whole experience. even the packaging is cool and a lot of people just dig that.
@Itchy Britches
KIN. Supper successful.
/s
They don't loose customers,?- I know many that did so
ATT is the worst company, iPhone saved them, but that will not last long. One thing for sure; profit reports are most likely coming from their high rates and ongoing bill errors they keep making. ATT will gets it'd moment sooner than later.
They're getting major bank but their network still runs like total shit.
@kickerbockeragua Works fine in every city I've visited recently: DC, Dallas, Charlotte, Cincinnati, Knoxville, Miami.
Never had an issue....*shrug*
@Shalabi It works fine for me as well. It seems mostly related to population density and available areas for new towers. Which is why they have started trying to get these micro-towers out there.
I was on Verizon for about four years before I got my iPhone and it was about the same as far as coverage went. Although Verizon had a fondness for overcharging me or double billing me on a regular basis. Something AT&T has never done.
@kickerbockeragua
It works perfectly in every city I have been to and I travel from coast to coast on a regular basis. My Verizon phone however is slower then a snail in any big city, you can forget trying to use it's data network in San Fransico or Chicago.
@kickerbockeragua
Yea, like...I really don't see all the issues that people say about AT&T. I love them, service is amazing to me.
@Shalabi
Me neither really. Just got back from San Francisco Tuesday for a week and didn't have a problem. considering the constant complaining on here I was literally expecting to have an iPod for the week but nope, worked like a charm.
@kickerbockeragua my services is usually fine in los angeles. i do have some problems in orange county but was told they are expanding there as we speak.
In Baltimore, Maryland, I get really good AT&T service. I travel often to New England and Texas and have had no problems there either, so I don't personally complain about AT&T's coverage, but they really need to use that impressive profit to improve reception in New York and Los Angeles.
And yet they HAD to, absolutely HAD to move to a 2GB plan with $10 per GB overages because those dang unlimited data users were milking them dry.
@Ualdayan 100% agree
@Ualdayan
Actually yes, but it's not because users were milking them dry. It's because they saw an opportunity to make more money. Carriers are greedy.
@Ualdayan At least they have a reason to use that EXCUSE! for the last 3 years they been getting hammered.
Verizon goes after the same tactic with only 1 weeks worth of data hahahaha and people are dying for a verizon phone?
I question. Is verizon pumping millions into that rumor or peopel actually desiring a verizon iphone?
Whatever the case. The iphone is making a killing.
@Ualdayan
This was the comment I was looking for before I posted a comment. I think it's absolutely BS the kinds of things AT&T has done yet they made $4B in profit.... PROFIT!! Please understand how much that is... let me write it out for you...
$4B = $4,000,000,000
Yet the network still has issues, data caps are now enforced and overages are raised. gg AT&T
@Ualdayan
I don't understand it. If you already have a smartphone plan, you get to keep it no matter what smartphone you have or move to. It seems to me that the very vocal complaints are from people who don't have smartphone and just want to complain to fit in, or are not yet on AT&T but thinking of joining the network they trash so much.
Sure having an unlimited data plan is nice, but you are on a tech website and you are fairly adept at all the things you can do on a smartphone. That puts you in the 2% of people who need more than 2gb a month. AT&T puts a lot of money back into their network, and unknown to the haters that just read tech blogs out of ny or San Francisco, they have a network that works for a lot of people. Get over it.
@FleeTheScene
Thank you that someone understands things from a business perspective. Caps mean nothing bc phones are wifi capabale and they put more money into their network than anyone. They just have the heaviest data usuage out of any network and by far the fastest. They still are making plenty of money because they do not lose very many customers ever!
@FleeTheScene "I don't understand it. If you already have a smartphone plan, you get to keep it no matter what smartphone you have or move to."
NO, no, no, no, no. You get to keep it no matter what smartphone you have or move to ON THE SAME CARRIER, fixed that for you. So, exclusive deals and AT&T gimping Android means you stay on AT&T and their iPhone if you want to keep your unlimited data and don't like Android on AT&T. It means if you like iPhone 5 and you are on Verizon you don't get to get unlimited data on AT&T.
Your logic fails to allow switching carriers.
@Ualdayan When are you people going to understand AT&T are in it for the profit? So are all other providers! Would AT&T look good if it actually lost money? No it wouldn't specially not to the stock holders. Now once again repeat after me Microsoft, Apple, AT&T, Verizon, T-Mobile, etc, etc and etc are in it for the money! And who can blame them?? Wouldn't we all love to have such a successful company? As most companies they offer a service to people. We all know what AT&T offers and they do a bloody good job. If people would take time and research how much AT&T has spent on towers and how many new towerd they have invested on and how many more they will invest on, people would realize AT&T is by far above all other providers.
If Verizon would have signed the deal with Apple for the iPhone, Verizon would also be suffering from the poor coverage, not to mention the other U.S providers.
Personally I am a T-Mobile fan, but it gets really old to see so many comments about people complaining like a little kid about the coverage when AT&T is really working on it.
So please if someone is going to complain, have some facts not just "#attfail because other said so" "att is gay" "att is has bad coverage" etc..
@juanvaldez
As entitled as everyone seems to feel that they are here, I've got to assume that you understand that AT&T doesn't owe you anything if you feel the need to keep jumping services. No one here is a loyal customer, if you choose AT&T you choose them because they offer something you need, be it service or a phone. The loyal customers are the ones that stick with AT&T, and they are taken care of and get to keep their unlimited data plans.
I go back to my original point though that the tiered data plans make cool phones like the iPhone or the Captivate affordable to people where it generally wasn't before. It helps more people than it hurts, again, get over it.
Lol wut?
Good job. now use it to upgrade your piece of crap network.
they still didnt fix that software issue causing the upload speed to be slow
You're welcome
Sincerely,
The iphone
@dardub Yup. You are welcome AT&T.
@iPhone 4 Your Welcome