Following quarterly announcements from both T-Mobile and Verizon, AT&T has joined the party and revealed net additions on par with its two nearest competitors, largely fuelled by the growth of the connected cars market.

Tim Skinner

July 24, 2015

2 Min Read
AT&T sees 2m net customer growth in Q2 thanks to IoT

Following quarterly announcements from both T-Mobile and Verizon, AT&T has joined the party and revealed net additions on par with its two nearest competitors, largely fuelled by the growth of the connected cars market.

AT&T’s Q2 announcement revealed its net additions are largely driven by the rapidly developing connected cars market, and explained that nearly half of its 2.1 million net additions for its wireless business are connected cars subscribers. The remainder of its additions comes from postpaid (410,000) and prepaid (331,000). Meanwhile it has added 1.2 million branded smartphones to its customer base.

Compared to Verizon and T-Mo USA, AT&T’s postpaid subs dropped off considerably, with each of its competitors posting net subscriber additions of about 1 million.

Elsewhere, its wireline business saw strategic enterprise services revenues up 13% year-on-year at $2.7 billion, whereas its consumer multiplay package U-verse saw adjusted growth of 19.2% YOY at $4.1 billion. Internationally, it’s now establishing plans to grow its Mexican presence after completing the acquisition of Nextel Mexico and is looking to integrate it with Iusacell, with the target to cover 100 million POPs with its 4G LTE network.

AT&T’s chairman and CEO, Randall Stephenson, meanwhile seemed pretty chuffed with how everything was going for the telco.

“These results reaffirm our transformation strategy,” he said. “We grew revenues, expanded margins and delivered double-digit adjusted EPS and cash flow growth. We added more than 2 million new wireless subscribers as the repositioning of our smartphone base nears completion. We also began expanding high-quality wireless services to Mexican consumers and businesses.”

He finished with a nod towards its expanding multiplay strategy.

“This is a pivotal time for us,” he said. “We look forward to closing DirecTV and building on this momentum by delivering a new TV everywhere experience integrated with mobile and high-speed Internet service.”

AT&T’s also been in talks regarding a takeover of DirecTV to boost its multiplay strategy and offerings. Earlier this week the FCC gave the thumbs up for the takeover to go ahead, with FCC chairman Tom Wheeler clarifying various rumours of the deal’s approval.

“An order recommending that the AT&T/DirecTV transaction be approved with conditions has circulated to the Commissioners,” he said. “The proposed order outlines a number of conditions that will directly benefit consumers by bringing more competition to the broadband marketplace. If the conditions are approved by my colleagues, 12.5 million customer locations will have access to a competitive high-speed fiber connection. This additional build-out is about 10 times the size of AT&T’s current fiber-to-the-premise deployment, increases the entire nation’s residential fiber build by more than 40 percent, and more than triples the number of metropolitan areas AT&T has announced plans to serve.”

About the Author(s)

Tim Skinner

Tim is the features editor at Telecoms.com, focusing on the latest activity within the telecoms and technology industries – delivering dry and irreverent yet informative news and analysis features.

Tim is also host of weekly podcast A Week In Wireless, where the editorial team from Telecoms.com and their industry mates get together every now and then and have a giggle about what’s going on in the industry.

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