AT&T continues to see high demand for its U-Verse service, as former cable TV customers continue to flock to the new service.
Recently released numbers from AT&T’s quarterly report show an increase in the company’s subscriber base to nearly 1.3 million U-Verse TV customers. That was an increase of 284,000 net customers. Cable TV companies like Comcast and Time Warner cable have to be feeling some of the pain that is coming from the U-Verse expansion, as AT&T estimates 60% of new customers are migrating from cable TV operators.
Bundling U-Verse television service along with high speed internet and voice services has also been a winning play for AT&T. The AT&T U-verse internet offering also added 284,000 net subscribers, bringing the total number to 1.3 million. AT&T also added 75,000 legacy DSL subscribers, who purchased high speed internet service in areas where U-verse is not yet available.
When it comes to landlines, phone companies like AT&T and Verizon have been suffering from line loss in the past five years as customers abandon their home line and just use cell phones. AT&T did make good progress in this area as well, adding 170,000 net U-verse voice customers. They now have nearly 400,000 VoIP customers total.
The U-verse footprint continues to expand rapidly, with 17 million homes or apartment units having access to the service as of the end of 2008. That number climbed another million during the first three months of 2009, and now totals 18 million. AT&T previously announced their intention to have U-verse available to 30 million homes by the end of 2011.
While AT&T is now making some progress with U-verse, the big money maker continues to be wireless services. AT&T added 1.2 million wireless subscribers in the first quarter of the year, and now has an eye-popping 78.2 million wireless subscribers.
Overall, AT&T now claims to have 3.5 million video customers total as of the end of the 1st quarter of 2009. AT&T arrives at this number by adding the total number of U-verse customers to the number of satellite TV customers that bundle with AT&T.
For the past five years, AT&T has partnered with Dish Network, but recently changed that arrangement. A new AT&T DIRECTV deal was forged last year, resulting in a change in the satellite offerings as of February 2009. AT&T now offers DIRECTV satellite TV in all of the areas they serve where U-verse is not available.
While the numbers show AT&T is mainly eating away at cable TV companies in this latest report, satellite television operators have to be nervous as well. AT&T U-verse continues to expand on traditional strongholds for Dish Network and DIRECTV, those being DVR service and HD content. Simple solutions like the U-verse multi-room DVR and triple play bundling have customers strongly considering AT&T when comparing services against DIRECTV and Dish Network.
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The U-verse, bundled with the internet and voice services really make a powerful winning combination. These days, it’s all about getting more for your money’s worth. I hope that they will be able to live up to standards, and provide excellent service despite the rapid increase in customers. Thanks!
I’m not surprised with Uverse growth, over the years they have been offering free enhancements to its consumers. Their service is just great..not to mention worth the money…gives you big savings a month compared with Comcast.
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