Oct 22 (Reuters) - AT&T ( T ) added more wireless
subscribers than expected in the third quarter on Wednesday, as
bundled plans and heavy promotions around the latest iPhone
launch helped it attract more customers in a fiercely
competitive market.
The quarter ended September is a critical period for U.S.
wireless carriers, with competition peaking around Apple's ( AAPL )
annual iPhone launch.
Like all other carriers, AT&T ( T ) has also rolled out lucrative
promotions for the iPhone 17 series to lock in new subscribers
and encourage existing users to upgrade to pricier plans.
It added 405,000 monthly bill paying wireless subscribers,
compared to expectations for 334,100 additions, according to
FactSet.
By packaging wireless and fiber broadband services together
for a discount, AT&T ( T ) has encouraged more customers to take
multiple offerings and reduce customer exits. More than 41% of
fiber households have also opted for mobile plans.
Investor focus has also been on the company's recent
strategic moves to bolster its network capabilities. AT&T ( T )
recently announced a landmark $23 billion deal to acquire
wireless spectrum licenses from EchoStar ( SATS ).
Equipment revenue in the third quarter grew 6.1%, pushed by
stronger phone sales. Operating costs in the mobility unit rose
3.8%, driven by higher expenses from selling more and pricier
phones and increased spending on marketing and promotions.
Revenue from its business wireline unit fell 7.8% in the
quarter, hurt by declines in legacy voice and data services.
On an adjusted basis, AT&T ( T ) earned 54 cents per share,
largely in line with estimates, according to LSEG data.
Total third-quarter revenue stood at $30.7 billion, missing
estimates of $30.87 billion.