AT&T Wireless added a net 1.1 million new customers in the quarter, of which 331,000 postpaid, 137,000 prepaid, 248,000 from resellers and 379,000 connected devices. The total base was 98.62 million at the end of June. That includes 4.0 million customers using 'branded computing' devices, such as tablets, air cards, MiFi devices, tethering plans and other data-only devices. Around 545,000 of these were added in the quarter, including 377,000 tablet customers. Smartphone sales rose 43 percent to 5.4 million, led by a doubling in non-iPhone sales. The iPhone still makes up 60 percent of sales, with 3.6 million activated in the quarter. A total 49.9 percent of AT&T's 68.4 million postpaid subscribers had smartphones at the end of June, up from 35.8 percent a year earlier. Wireless revenues were up 9.5 percent to USD 15.6 billion, with service revenues growing 7.4 percent and data revenues up 23.4 percent. Despite higher costs for the smartphone sales and the integration of the Centennial and Alltel acquisitions, operating income was up 2.3 percent year-over-year to USD 4.3 billion.
At the wireline division, consumer revenues were up 0.1 percent to USD 5.4 billion, while business revenues fell 0.3 percent to USD 9.3 billion. Operating profit fell 3.6 percent to USD 2.0 billion. The U-verse TV service added 202,000 subscribers to reach 3.4 million, offsetting a loss in satellite TV customers. The broadband base fell by 12,000 to 16.473 million, and voice connections dropped by 1.159 million to 41.3 million.
