US cellphone carrier AT&T does better than expected against fierce competition
New York — AT&T’s quarterly profit topped Wall Street estimates on Tuesday as the second-biggest US cellphone carrier lowered operating costs and introduced new promotions bundling video with phone service that helped it compete in a fierce market. Its shares rose 2.5% to $37.12 in after-hours trading on Tuesday. AT&T is battling industry leader Verizon Communications, and smaller rivals Sprint and T-Mobile US, for customers in a market where most people already have cellphones. Verizon in February reintroduced an unlimited data plan for the first time in more than five years, and other carriers have since sweetened their own offers. AT&T, which is buying Time Warner for $85.4bn in an effort to turn itself into a media powerhouse, has sought to compete by bundling mobile service with video entertainment. In June, it announced that it was offering its unlimited wireless plan with its internet streaming service DirecTV Now for an additional $10 a month. Such product bundles helped win...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.