AT&T on Friday announced it has signed up more than 10 million U-verse high-speed Internet subscribers, noting that U-verse subs made up 60% of the company’s total wireline broadband customers by the end of the third quarter of 2013, versus 43% in the year-ago period.
AT&T, which ended the third quarter with 9.7 million U-verse broadband customers, attributed part of its growth spurt to Project Velocity IP, its multi-billion dollar, three-year capital infusion to build out its Long Term Evolution wireless network and its U-verse platform. According to AT&T, it has added about 2.5 million broadband customer locations since announcing the initiative about a year ago. The plan calls for AT&T to expand its IP broadband reach to about 57 million customer locations by the end of 2015.
Tied in, AT&T is ramping up U-verse speeds, offering up to 45 Mbps (downstream) in 79 markets, with plans to ratchet speeds to 75 Mbps and 100 Mbps later. The new 45-meg tier, called U-verse High Speed Internet Power, carries an introductory price of $49.95 per month, putting it almost on par with the cost of the 6-Meg Elite tier, which costs $46 per month. Following the introductory offer period, the Power tier will be offered at $76 per month.
U-verse broadband has helped AT&T counterbalance losses of traditional DSL customers. While AT&T U-verse high-speed Internet subs continues to climb, the telco still lost 26,000 net broadband subs in the third quarter when DSL losses were factored in.
A deeper analysis of U.S. broadband subscriber trends, including signs that cable’s pace of growth in the category is showing signs of slowing, will be presented in the November 18 issue of Multichannel News.