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AT&T Q3 '09: Wireline revenues to take another hit
A preview of AT&T's Q3 earnings set to be announced this week doesn't offer many surprises. While AT&T expects positive gains on the wireless side buoyed by strong sales of the iPhone, a report in the Wall Street Journal says that the ILEC's wireline business continues to suffer as more consumers turn off their landline phones in favor of cell phones and switching to cable for their phone service.
According to BMO Capital Markets, AT&T's wireline revenue will decline 6.1 percent in the third quarter, which is not much of a change from what was seen in the second quarter. Not surprisingly, the one area where AT&T is taking its biggest hit is traditional telephone services. As of the end of Q2 09, AT&T had 49.4 million phone lines. BMO expects that figure to fall to about 47.9 million by the end of the third quarter.
Not all is lost on the wireline side, however. In addition to upgrading its wireless network, AT&T will continue to invest in expanding its U-Verse video network. Industry reports predict that AT&T will add around 250,000 U-Verse customers, bringing its total subscriber number to about 1.9 million.
For more:
- Wall Street Journal has this article
Related articles
AT&T's wireless growth expected to offset landline losses
AT&T Q2 2009: IP services up, landline erosion continues
AT&T whips up some Southern U-Verse cooking
CWA, AT&T wireline union craft deal
Comments
Posted by Ben | January 8, 2010 - 12:53pm
This is a forward looking policy. No company can compete that has to support two competing networks, particularly when one of them -- despite its reliability -- is not cost competitive. AT&T deserves the opportunity to compete. As for the comment about dropped calls and brain tumors, the real competition inside the house is not from cells but from VoIP. That's why the article focused on AT&T's comments about broadband. If you have broadband, it's pretty simple to get voice service via VoIP.
Posted by PISSED OFF | October 21, 2009 - 10:17pm
THE UNION , SCREWED ITS MEMBERS, NOW THE COMPANY WITH THE NEW ATTENDANCE POLICY CAN PRACTICLY SCREW ANYONE OF US, OUR SELL OUT UNION DID NOT NOTIFIES ABOUT THE NEW ATTENDANCE POLICY.... WITH THE NEW ULTRA THE UNION SCREWED US, JUST BECAUSE THE UNON WAS NOT SPECIFIC ON THE ULTRA , ... SEE THESE STUPID SELL OUTS (CWA) WILL GET UNION DUES ANYWAYS , FROM US OR FROM THE NEW 60/40 S... I GUESS THAT IS HOW MONEY HUNGRY UNIONS WORK!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! DISTRICT 9
-- I HOPE SOME ONE CAN HELP US , I WONDER IF WE CAN SUE THE UNION ---------
CWA WITH A FRIEND LIKE YOU WHO NEEDS GREEDY ENEMIES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
BULL CRAP ATT IS MAKING MONEY !!!!!!!!!!
Posted by Anonymous | October 19, 2009 - 1:24pm
Save the wireline service...too many dropped calls in cell service, and studies still show that there will be a certain percentage of people getting brain tumors with extended use of cell phones.
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