AT&T nears end of its U-verse service buildout

AT&T (NYSE: T) may be on track to pass 30 million homes with U-verse service--one of the fastest growing parts of its wireline business--by the end of 2011, but it appears that they may stop once that goal is reached.

During a recent Citibank investor's conference, John Stankey, AT&T's President, said that the service provider is confident it can pass 55-60 percent of the homes in their service region.

Within the broadband data realm, Stankey said that only 25-30 percent of homes in AT&T's region will be offered ADSL, adding that 20 percent of them are "not a heavy emphasis for investment."

Interestingly, AT&T's goal comes at a time when U-verse continues to resonate with customers in the regions where it's available. In Q1 2011, AT&T added 175,000 new broadband subscribers and 218,000 U-verse subscribers to reach 3.2 million in service. However, the broadband numbers fell short of analyst expectations of 195,000 new subscribers.

But in the regions where AT&T does not have U-verse deployed yet, cable continues to eat the telco's lunch with 50 Mbps and increasingly 100 Mbps DOCSIS-based services over its well-entrenched HFC plant. Of course, cable might have higher speeds, but consumers have to be willing to pay upwards of $100 or more for the 50-100 Mbps connection.

To stem some of its traditional DSL bleeding where it does not have U-verse yet, AT&T like Verizon (NYSE: VZ) is offering a number of special promotions, including low-priced DSL offerings to lure dial-up laggards starting at $14.99. It is also appealing to its growing wireless audience with a special bundle for qualifying U-Verse TV customers a $45 monthly discount for six months covering the cost of U-Verse Internet Max.

For more:
- Broadband DSL Reports has this article

Related articles:
Wireline in the first quarter 2011
AT&T wireline results in Q1 reflect strong returns on consumer broadband, IP business services
Competition watch: AT&T links U-Verse and wireless with discounts, Verizon offers broadband incentives

Suggested Articles

C Spire is installing more than 33 miles of fiber across four counties in Mississippi in order to provide faster broadband speeds to rural areas.

There's no doubt that SASE has picked up steam this year after Gartner coined the phrase last year, and now MEF has joined the SASE fray.

The deal includes delivering managed network services to over 700 sites in 91 countries.