AT&T’s Wireless Subscriber Growth Surges Ahead of Expectations
The telecommunications giant, AT&T, has reported a remarkable surge in wireless subscriber growth for the fourth quarter, exceeding analyst expectations. This impressive performance was driven by strong demand for its premium plans, which combine 5G mobile with high-speed fiber data services.
Fiber Business Sees Significant Growth
AT&T’s strategy of bundling high-speed fiber internet with wireless phone services has proven to be a winning formula. The company added 307,000 new fiber customers in the fourth quarter, marking its best fourth-quarter fiber net additions. This significant growth is a testament to the company’s efforts to expand its fiber network, which is expected to reach over 50 million locations by 2029.
Holiday Quarter Boost
The last three months of the year are typically strong for telecom operators, driven by factors such as Black Friday promotions, trade-in deals for new iPhone launches, and the gift-giving season around Christmas. These factors contributed to higher subscriber additions, with AT&T adding 482,000 net monthly bill-paying wireless phone subscribers in the holiday quarter.
Competitor Comparison
Rival Verizon also reported impressive quarterly wireless subscriber growth, with 568,000 monthly bill-paying wireless subscribers added in the fourth quarter. However, AT&T’s performance stands out, given its focus on bundling high-speed fiber internet with wireless phone services.
Financial Performance
AT&T expects annual adjusted profit between $1.97 and $2.07 per share, excluding the contribution from its 70% stake in DirecTV. The company reported a profit of 54 cents per share, higher than analysts’ estimate of 50 cents per share. Total revenue rose about 1% to $32.3 billion, compared with an estimate of $32.04 billion.
New Initiatives
AT&T has introduced new initiatives to attract customers in a highly competitive market. From January 9, the company began offering bill credits for network outages, a move that is expected to drive further growth.
Outlook
With its strong performance in the fourth quarter, AT&T is poised for continued growth in the coming years. The company’s focus on expanding its fiber network and bundling high-speed fiber internet with wireless phone services is expected to drive subscriber growth and revenue increases.
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