Post by : Badri Ariffin

AT&T has surpassed expectations in Q3, adding more wireless subscribers than predicted thanks to aggressive marketing for the iPhone 17 series and appealing bundled service packages.

The telecommunications leader acquired 405,000 monthly bill-paying wireless subscribers, exceeding the anticipated figure of 334,100. This success reflects the effectiveness of its strategy to merge mobile and fiber broadband services. Bundled offerings have garnered popularity, with over 41% of fiber households choosing mobile services, thus reducing turnover and enhancing customer loyalty.

During this crucial quarter for U.S. wireless carriers, AT&T capitalized on Apple’s new iPhone release with targeted promotions aimed at attracting both new customers and encouraging upgrades to premium plans. This strategy not only fostered subscriber growth but also increased revenue from equipment by 6.1%, indicative of robust phone sales.

Operating expenses within AT&T’s mobility division rose by 3.8%, mainly due to the promotion of higher-priced devices and increased marketing efforts surrounding the iPhone launch. Nonetheless, the company struggled in its business wireline sector, where revenue declined by 7.8%, affected by drops in traditional voice and data services.

In total, AT&T reported Q3 revenues of $30.7 billion, slightly short of the $30.87 billion expectation. Adjusted earnings per share reached 54 cents, meeting market forecasts. Strategic investments, such as the $23 billion acquisition of wireless spectrum licenses from EchoStar, highlight AT&T’s commitment to enhancing network capabilities for future advancement.

Despite revenue shortfalls, this quarter underscores AT&T’s capacity to boost subscriber numbers through effective bundling, promotional efforts, and strategic investments, helping it to stay competitive in a challenging wireless landscape.

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