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AT&T delivered strong wireless growth in the first and second quarter surpassing Verizon Wireless

AT&T surpassing Verizon Wireless to become second largest wireless operators only after China Mobile in Q1, 2010. AT&T delivered strong wireless growth in the first and second quarter, led by continued growth for mobile broadband services, significant demand for iPhone 4 and iPad 3G and rapid adoption of connected devices such as eReaders, global positioning systems, alarm monitoring systems and a host of other emerging products.

Figure : Quarterly Wireless Revenues (1 Jan 2010 to 31 March 2010)


AT&T Reported 29.8% wireless data revenue growth in Q1, 2010. AT&T reported wireless data revenues were up $947 million y-o-y, driven by continued rapid adoption of smartphones and industry leading access to applications. Driven by strong data growth, postpaid subscriber ARPU increased 3.9 percent versus the year-earlier quarter to $61.89.This marked the fifth consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $20.13, up 21.9 percent versus the year earlier quarter, and total postpaid subscriber revenues continued recent trends, with solid double-digit growth, reflecting increases in both voice and data.


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>Wireless network initiatives by AT&T to support growing wireless data

Nations largest Wi-Fi Network: AT&T has built the nation’s largest Wi-Fi network, with more than 20,000 AT&T Wi-Fi Hot Spots in the U.S. and access to more than 125,000 hotspots around the globe. AT&T’s 3G network covers 80% of the US population and it has embarked and aggressive plan to further enhance its mobile network capabilities. The

AT&T announced their 4G partners to build LTE network. AT&T has announced their plans to build LTE network and contracted Alcatel Lucent and Ericsson as their LTE equipment suppliers. However the operator believes that LTE has its own time to come and may not be ready for a large scale deployment in near future. The operator is adopting a middle strategy to upgrade their current network to HSPA+ and LTE later.

HSPA as a short term strategy for immediate delivery: In January AT&T deployed HSPA 7.2 software nationwide. The company is now deploying additional backhaul connections to cell towers to support HSPA 7.2 and future LTE deployments.

These software and backhaul upgrades are expected to double the theoretical peak speeds of AT&T’s 3G network, although actual speeds will be less depending on location and environment. By the end of 2010, the company expects the majority of its mobile data traffic will be carried over the expanded fiber-based HSPA 7.2 and LTE-capable backhaul. AT&T offers 10 HSPA 7.2-compatible devices today, with millions of customers already using them.

>Wireless Innovation and driving data growth with application and devices

Introduction of tiered and flexible charging for data: AT&T introduced new wireless data plans that make the benefits of the mobile Internet more affordable for their consumers. Plans start at a lower price point and allow customers to migrate up as their data needs grow. Customers can pick the new data plan that best meets their needs — either a $15 per month entry plan (DataPlus) or a $25 per month plan (Data Pro) with 10 times more data.

Android based smart phones: AT&T Launched its first device on the Android platform, the Motorola BACKFLIP which offers AT&T customers a new way to connect to their favorite people, content and applications. AT&T announced the upcoming launch of the Dell Aero, which will be Dell’s first smartphone available in the U.S. and it will feature a new, custom user interface and with android OS.

Launch of new mobile data dongles supporting HSPA: Last quarter AT&T launched two new USB dongles capable of supporting HSPA and it come with inbuilt GPS. The built-in GPS functionality opens the door to location-based applications, making it easier than ever for customers to get to their desired destination.

Introduction of home femtocells: Announced national rollout plans for AT&T 3G MicroCell, which allows residential customers to route wireless phone calls and data connections across a home broadband connection.

Launch of Apple Ipad : Apple and AT&T announced breakthrough 3G prepaid data plans for iPad, with easy, on-device activation and management. The iconic device supports 3G and Wi-Fi access networks. AT&T offers a 250 MB plan for 14.95$ and 2 GB plan for $25.00.

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