AT&T Inc. (NYSE:T) Witnesses Gains Under Its Mobile Share Value Plans

AT&T Inc. (NYSE:T) disclosed that it continued to witness gain under its plan of mobile share value meant to reposition the customer experience. The company indicated that the value plan allows customers to choose between the transition and the traditional device subsidy model.

Increasing Subscribers

The company stated that an increasing number of subscribers adopted its Mobile Share Value Plans during the third quarter, its statement indicated. Currently, the subscribers base reached close to 47 million. Alternatively, it represented 62% of the postpaid subscribers.

AT&T Inc. (NYSE:T) said that its Mobile Share accounts subscribers tripled over the year-ago quarter to reach 16.7 million. On average, there were three devices per account under the plan. The company said that 51% of Mobile Share accounts were enjoying 10 GB or bigger data plans at the close of the third quarter, up from 30% in the previous year quarter.

As a result, the company disclosed that it could achieve 24% growth in wireless data billings over the prior year quarter. In all, approximately 82% of postpaid subscribers of smartphone were on data plans based on usage compared to 72% in the same quarter last year.

AT&T said that as many as 6.8 million postpaid subscribers were either added or upgraded to smartphone during the third quarter. It also witnessed about 460,000 subscribers having brought their devices onto its network. The company’s Next also recorded growth during the third quarter.

3Q Results

The company reported net income of $3.0 billion, down 21.1% from $3.8 billion while earnings dropped 19.4% to 58 cents a share from 72 cents a share in the year-ago quarter. On an adjusted basis, it would have earned 63 cents a share versus 66 cents a share in the prior year quarter.

AT&T Inc. (NYSE:T)’s consolidated revenue advanced 2.5% to $33.0 billion from $33.16 billion in the previous year quarter. The company’s Wireless revenue witnessed 5% growth to $18.3 billion while Wireline revenue slackened 40 basis points to $14.6 billion.

Its total operating costs grew 6.1% to $27.56 billion from $25.97 billion in the same quarter last year. AT&T Inc. (NYSE:T)’s postpaid churn was 0.99 during the third quarter.

About the Author

Terrel is US Markets Daily's business news reporter. She joined US Markets Daily after five years as a print reporter.

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