AT&T Adds 441,000 Core Wireless Subscribers

AT&T Inc. added 441,000 of the wireless industry's most lucrative long-term wireless contracts in the first quarter, while the rate at which customers left its network decreased.

AT&T has been facing greater competition from smaller rivals T-Mobile U.S. Inc. and Sprint Corp., as well as challenges tied to consolidation in the telecommunications and media industries. Google Inc. launched a wireless service on Wednesday that offers talk, texts and other features such as Wi-Fi hookups and international coverage for $20 a month, further escalating the price war in the industry.

AT&T's core wireless subscriber additions compare with 854,000 in the fourth quarter and 625,000 a year earlier, a number the company called its highest first-quarter mark in five years.

In comparison, rival Verizon Communications Inc. said earlier this week that it lost wireless phone customers again during the quarter, though revenue grew more than expected.

AT&T has been trying to wean subscribers off device subsidy plans and aggressively push the sale of smartphones at full price, often lowering the monthly service fee for customers not in a contract.

The company also has been beefing up its balance sheet to fund its bids for U.S. wireless spectrum, moving forward with its $49 billion deal for satellite-television company DirecTV and buying Nextel Mexico for $1.88 billion.

Overall, AT&T reported a profit of $3.2 billion, or 61 cents a share, compared with a profit of $3.65 billion, or 70 cents a share, a year earlier. Excluding pension-related charges and other items, earnings fell to 63 cents a share from 71 cents.

Revenue edged up 0.3% to $32.58 billion.

Analysts projected a per-share profit of 62 cents and revenue of $32.84 billion, according to Thomson Reuters.

AT&T said its churn, or the rate at which wireless customers left its network, was 1.02%, its best-ever first-quarter performance, versus 1.07% a year earlier.

Shares, which have declined about 9.5% in the past year, edged up fractionally in after-hours trading.

Write to Angela Chen at [e-mail]

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