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AT&T Again Loses TV, Broadband & Postpaid Phone Users

AT&T still isn't quite seeing the "synergies" it promised when it paid $69 billion to acquire DirecTV. While the company's second quarter earnings report indicates that DirecTV added an impressive 342,000 subscribers on the quarter, the numbers also indicate that AT&T's U-Verse TV platform lost 391,000 subscribers, giving the company a net loss of 49,000 video subscribers during the second quarter. That's in part because AT&T's giving up on its U-Verse TV platform and driving those users to DirecTV.

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But the fact the company posted a net loss suggests that cord cutting and defections to cable (usually to nab faster broadband speed bundles) continue to plague the telecom giant.

The company's broadband numbers weren't much to write home about either. The company saw a net loss of 110,000 broadband during the second quarter; it added 54,000 IP broadband customers, but shed 164,000 DSL subscribers, many in areas the company has refused to upgrade. And on wireless AT&T noted that it added 2.1 million net wireless subscribers, but many of these were connected devices and tablets (often on promotion), the company actually saw a net loss of 180,000 postpaid wireless phone subscribers, thanks in large part to T-Mobile.

In other words, AT&T saw losses in its three most valuable consumer subscriber metrics, despite spending $69 billion to become a telecom and television superpower. AT&T downplayed the losses, stating that they were due to "second quarter seasonality" and AT&T's focus on higher end, secure-credit customers -- but they're still not particularly flattering -- especially given similar losses the quarter before.

Still, AT&T saw second quarter consolidated revenues of $40.5 billion, up 22% from this time last year. That's thanks to its acquisition of DirecTV, which the company plans to capitalize on further later this year with the launch of not one, but three new streaming video services (technically four if you include their joint effort with the Chermin group).

"One year after our acquisition of DIRECTV, the success of the integration has exceeded our expectations," AT&T CEO Randall Stephenson said in a statement.

“And we’re about to introduce an OTT product that we believe will be a game changer,” Stephens added. “We expect the millions of people who don’t now subscribe to a video service and prefer a streaming option will be impressed.”

Most recommended from 45 comments



dslwanter
Premium Member
join:2002-12-16
Mineral Ridge, OH
·Armstrong Zoom ..

1 edit

dslwanter

Premium Member

Well

When you refuse to upgrade the majority of your copper plant, you will lose subscribers to more progressive opportunities, such as Cable Cos going to DOCSIS 3.0 and 3.1. 6mbps DSL, which many people STILL can't get around here, is about what dial up was in 2000, almost useless for anything beyond basic web browsing and email checking. People today are bandwidth hungry, it's not just the household with a computer and modem anymore. It's phones, TVs, multiple computers, tablets, Roku boxes, and other devices all capable of HD video streaming. The DirecTV purchase was a waste, better off allocating those funds to adding more fiber whether it be for GigaPower or 5G wireless deployment. People are getting smart and cutting the cord.

karpodiem
Hail to The Victors
Premium Member
join:2008-05-20
Detroit, MI

karpodiem

Premium Member

Enjoying this bonfire

Burn, baby, burn.

Too cowardly to spend the capex for fiber and face up to the shareholders? Reap the rewards.
decifal
join:2007-03-10
Bon Aqua, TN
kudos:1

decifal

Member

yup

Yeah, the F U take what we offer and get over it mentality of ATT isn't going to be a good long term plan for them.. They need to kill the pie chart guy and start working on their long term game plan on wireless and broadband offerings... Low data caps with high overages (wireless) doesn't appeal to anyone, and slower broadband speeds with one of the lower caps on the landline services doesn't help their image either.. Why go with att if comcast is in the area with more than double the speed and a freaking terabyte for a cap??
tmc8080
join:2004-04-24
Brooklyn, NY
·ooma
·Optimum Online
·Verizon FiOS

tmc8080

Member

next step?

now they an spend another $69 BILLION dollars upgrading their wireline footprint to FTTP!
ATT knows nothing but stupid moves, so they probably won't do that.. they'll just wait as Google chips away at their market share in some of the BIGGEST markets before they'll be forced to either put up or GTFOH with their cheap copper dsl last century uverse services-- at least throw the customer a bone... make it a fiber to the docsis network instead... do SOMETHING that resembles the RIGHT thing to do..!

davidc502
join:2002-03-06
Mount Juliet, TN
kudos:1

davidc502

Member

at&t bought a oil well

They bought an "oil well" (DirectTV) that is giving out, as more and more people are subscribing to streaming services.

ilikeme
I live in a van down by the river.
Premium Member
join:2002-08-27
Stafford, TX
kudos:1

ilikeme

Premium Member

I was one of them!

I dumped DirecTV and went to Comcast X1 on a triple play deal. I already had Comcast phone and internet. There is no way I was going to pay At&t extra for the privileges of not to be spied on by them, to have unlimited data, and be required to rent and use their POS gateway. My neighborhood does have At&t Gigapower, but 150Mbps from Xfinity is more than enough, plus I can use my own modem and router. I can even watch Cable TV during heavy storms now!

How about ..