Da-Chief
07-23-2008, 17:03
http://i.dslr.net/urls/71/4471.gif (http://www.dslreports.com/shownews/New-ATT-Broadband-Customer-Additions-Take-Nose-Dive-96303)
AT&T this morning posted their second quarter earnings (http://biz.yahoo.com/bw/080723/20080723005545.html), which reveal the company's profit jumped 30%, mostly thanks to the addition of 1.3 million new wireless customers. However, landline bloodshed actually accelerated: the total number of AT&T phone lines (including wholesale and business) in service continued to drop, down 8.1% to 58.9 million total lines from 64.8 million. But it's AT&T's broadband additions (or lack thereof) that will probably get the most attention today, with just 46,000 new broadband customer additions on the quarter.Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 48.4 million at the end of the quarter, versus 49.5 million at the end of the second quarter of 2007 and 49.3 million at the end of the first quarter of 2008. Total consumer broadband and TV connections over the past year increased by 2.2 million. At the end of the second quarter, AT&T had 14.7 million total broadband connections, up 1.4 million over the past year and up 46,000 in the second quarter of 2008.
While a drop in new broadband additions was expected given market saturation and the housing market, most analysts still expected net additions to be somewhere around the 300,000 mark. AT&T notes that they added 170,000 U-Verse TV customers, and now serve 549,000 U-Verse customers total. That doesn't sound like much, but according to Light Reading (http://www.lightreading.com/document.asp?doc_id=159623), the company is ahead of deployment projections for the year and vendors say AT&T might be slowing spending on the project:"Our contacts are indicating that AT&T, so far this year, is running ahead of budget on Project Lightspeed spending," partly the result of good weather in the first half of the year...It's unclear how long spending would pause, though. Notter cites two conflicting sources: One believes it's a four-to-six-week pause, while the other thinks AT&T has met its U-verse expectations for the entire year.
The report notes that AT&T's deployment of pure FTTH (which only happens to new housing developments) have "come to a standstill" because of the housing market. Last year, AT&T told me (http://www.corpsman.com/shownews/87545) that U-Verse deployment plans involved a million homes getting pure fiber (albeit capped at VDSL speeds to maintain a "consistent user experience"). AT&T's original goal was to serve 1 million customers with both VDSL and FTTH U-Verse by the end of the year -- so they're more than halfway there.
read comment(s) (http://www.dslreports.com/shownews/New-ATT-Broadband-Customer-Additions-Take-Nose-Dive-96303)
More...
AT&T this morning posted their second quarter earnings (http://biz.yahoo.com/bw/080723/20080723005545.html), which reveal the company's profit jumped 30%, mostly thanks to the addition of 1.3 million new wireless customers. However, landline bloodshed actually accelerated: the total number of AT&T phone lines (including wholesale and business) in service continued to drop, down 8.1% to 58.9 million total lines from 64.8 million. But it's AT&T's broadband additions (or lack thereof) that will probably get the most attention today, with just 46,000 new broadband customer additions on the quarter.Regional consumer revenue connections (retail voice, high speed Internet and video) totaled 48.4 million at the end of the quarter, versus 49.5 million at the end of the second quarter of 2007 and 49.3 million at the end of the first quarter of 2008. Total consumer broadband and TV connections over the past year increased by 2.2 million. At the end of the second quarter, AT&T had 14.7 million total broadband connections, up 1.4 million over the past year and up 46,000 in the second quarter of 2008.
While a drop in new broadband additions was expected given market saturation and the housing market, most analysts still expected net additions to be somewhere around the 300,000 mark. AT&T notes that they added 170,000 U-Verse TV customers, and now serve 549,000 U-Verse customers total. That doesn't sound like much, but according to Light Reading (http://www.lightreading.com/document.asp?doc_id=159623), the company is ahead of deployment projections for the year and vendors say AT&T might be slowing spending on the project:"Our contacts are indicating that AT&T, so far this year, is running ahead of budget on Project Lightspeed spending," partly the result of good weather in the first half of the year...It's unclear how long spending would pause, though. Notter cites two conflicting sources: One believes it's a four-to-six-week pause, while the other thinks AT&T has met its U-verse expectations for the entire year.
The report notes that AT&T's deployment of pure FTTH (which only happens to new housing developments) have "come to a standstill" because of the housing market. Last year, AT&T told me (http://www.corpsman.com/shownews/87545) that U-Verse deployment plans involved a million homes getting pure fiber (albeit capped at VDSL speeds to maintain a "consistent user experience"). AT&T's original goal was to serve 1 million customers with both VDSL and FTTH U-Verse by the end of the year -- so they're more than halfway there.
read comment(s) (http://www.dslreports.com/shownews/New-ATT-Broadband-Customer-Additions-Take-Nose-Dive-96303)
More...