Copyright CNBC
AT&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 annual iPhone launch. Like all other carriers, AT&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 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 recently announced a landmark $23 billion deal to acquire wireless spectrum licenses from EchoStar. 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 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.
