AT&T outperformed expectations for wireless customer growth in the first quarter, reporting net additions of 294,000 monthly bill-paying wireless phone subscribers, compared with analysts' expectations of 272,000 as polled by FactSet. The gain reflects, in part, demand for bundled offerings that combine wireless service with high-speed fiber internet at home.
Management said roughly 42% of AT&T households that subscribe to its home internet service also elected to take wireless plans, a level of convergence that analysts had identified as a meaningful differentiator for network operators. In an aggressive competitive environment, carriers have been extending device subsidies, offering plan discounts, and boosting network investment to win and keep customers.
AT&T and rival T-Mobile both pushed device subsidies into the first quarter for Apple’s latest iPhone models as part of intensified customer-acquisition efforts. The company said it also increased prices on its lowest and highest wireless tiers, a move intended to steer subscribers toward mid-range plans and lift average revenue per user while reducing market concerns about a price war. Analysts characterized the pricing approach as an attempt to nudge customers up the price ladder rather than to cut prices to chase growth.
For the quarter, total revenue rose about 3% to $31.5 billion, exceeding the $31.25 billion consensus compiled by LSEG. Beginning this quarter AT&T reorganized its business segments to put greater emphasis on areas it views as core to future growth.
The new advanced connectivity segment - which encompasses domestic 5G and fiber services - reported roughly 5% revenue growth. Company commentary attributed that expansion to higher wireless device sales volumes and to the impact of the acquired mass markets fiber business from Lumen.
Taken together, these results highlight the role of bundling strategies and selective pricing in AT&T’s recent performance, alongside continued competitive dynamics across the wireless and broadband markets.
Summary of results
- Net wireless phone subscriber additions: 294,000 in the first quarter.
- Analyst expectation (FactSet): 272,000 additions.
- Total revenue: approximately $31.5 billion, up about 3% versus estimated $31.25 billion (LSEG).
- Advanced connectivity segment revenue growth: about 5%, supported by device sales and the Lumen mass markets fiber business acquisition.