T-Mobile can't hold back AT&T from blockbuster profits(Read article summary)
Churn is down, but AT&T wasn't able to match rival T-Mobile in the new subscriber category.
Of those new customers, 566,000 were contract subscribers, the most lucrative variety. In addition, as BGR notes, AT&T posted a relatively low 1.11 percent "churn" rate, a measure of the number of customers that move to other carriers. The strong results helped boost AT&T's quarterly revenue to a healthy $33.2 billion.Â
"The next steps are to make our networks even more powerful and layer on services that will drive new growth in the years ahead," AT&T CEOÂ Randall Stephenson said in a statement. "We have good momentum in areas like connected car, home automation and mobile business solutions. Weâ€™re also committed to transforming our operations to make them more responsive and efficient."Â
Of course, as Jeff Gamet of MacObserver points out, while the activation figures from AT&T are impressive, they're actually lower than the 780,000Â contractÂ subscribers AT&T added in Q4 of 2012, "and well below T-Mobile's 869,000 new subscribers."
T-Mobile, which has long lagged behind Verizon and AT&T in US market share, recently began allowing customers to sign up for a smart phone plan without opting into a two-year contract. This "uncarrier" strategy, as T-Mobile has dubbed, has paid huge dividends for the company â€“ reps for T-Mobile say Q4 of 2013 was its best financial quarter in eight years.Â
Thumbing his nose at his rivals, T-Mobile CEO JohnÂ Legere recently said that "AT&T is a total source of amusement for me. These are fat cats that canâ€™t move."Â