In AT&T’s second-quarter earnings report, the company said it added a net 248,000 TV customers during the quarter bringing its U-verse TV following to 1.6 million subscribers. That’s also a growth of about 1 million subscribers in a year. More than 75 percent order three or four services from AT&T, which offers TV, Internet, home phone and wireless phone service. 

Overall for all of its businesses, AT&T reported lower net income of $3.2 billion on revenues of $30.7 billion for the quarter. A year earlier, the company had net income of $3.8 billion on revenues of $30.9 billion. The downturn was blamed on declines in its voice and legacy data products.

Apple’s iPhone, which AT&T offers exclusively, continued to be a highlight. The company activated more than 2.4 million iPhones during the quarter, thanks to the record-setting launch of the latest iPhone 3GS. 

AT&T’s roll out of its U-verse TV and broadband service hasn’t been as easy as it had hoped. Earlier, it said it was scaling back to 30 million living units by 2011, or one year later than planned (see “Oh no! U-verse rollout slowing down“). This month, AT&T noted that it hit some snags in Orange County. The company said it decided to stop pursuing service in several cities here because of frustration with getting required city permits. The main issue seems to be that these cities — Cypress, Dana Point, Irvine, Lake Forest, Newport Beach, San Clemente and Tustin — want AT&T to build its U-verse utility boxes underground, which AT&T says it cannot do (read “AT&T U-verse comes to a halt in Irvine, 6 other O.C. cities“). 

But consumers still want their U-verse, which offers all the usual TV channels, DVRs and other offerings of the cable providers. The company is still expanding in several parts of the United States, including Orange County.

“We continue to expand our all-IP AT&T U-verse platform to deliver broadband to more homes. We’ve increased our backbone capacity and continue to enhance our premier set of advanced global business solutions. These are AT&T’s strengths, and these are the drivers that will lead growth as the economy turns,” said Randall Stephenson, AT&T chairman and chief executive officer.

**LINKS**

• AT&T quarterly earnings fall on cost of iPhone subsidy (Apple Insider)
• AT&T’s Dependence On iPhone Increases; Adds 2.4 Million iPhones In Q2 (MocoNews)
• AT&T 2nd quarter press release
• AT&T financial page

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