Fourth quarter results from 2015 have shown that AT&T added 2.8 million wireless customers but revenues driven by wireless went down compared to the corresponding quarter a year ago which stood at $18.9 billion.
AT&T is adding more non-smartphone devices to its network but it’s also losing some postpaid customers. According to the results released last month, postpaid sales dropped by 27 percent and it’s not a positive result when compared to their rivals.
The Verge reported that AT&T posted $42.1 billion versus analyst aims of $42.75B which was not a big disparity. “The company boasted of strong prepaid performance (469,000 adds), tallying 1.4M for the year between Cricket and GoPhone. Those customers aren’t as desirable as postpaid subscribers, but it still seems to go against T-Mobile’s claims that it’s winning the prepaid wars,” they wrote in their analysis of the results.
The last quarter of 2015 saw up to 214,000 satellite video customers added which is a strong indication that their acquisition of DirecTV at a fee of $49 billion was not bad. Overall, the number of video subscribers went down by 26,000. One of the company’s spokesperson said the drop can be attributed to “a deliberate shift to satellite” as well as moving away from U-Verse. The company has struggled to appeal to their customers by coming up with a combination of smartphone and satellite packages.
It has been part of their broader strategy employed in recent times. At the company’s earnings call, CEO Randall Stephenson said; “We think we are a company with no obvious peer. This is only our first move.” In 2016, AT&T will be under pressure from many factors to maintain steady growth of their customers but it will not be easy. Already, they have registered 500,000 people in their revived unlimited data plan which they hope to use as a benchmark.
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