AT&T has began to supply its retailers with micro-SIM cards for LTE-compatible devices, according to phoneArena.com. The carrier has also requested that existing micro-SIM stock be scrapped in favor of the new modules. The site suggests that the micro-SIMs will be used for the upcoming Nokia Lumia 900 — which BGR exclusively reported will launch on March 18th for $99 — and The Verge’s Chris Ziegler also notes that the Pantech Burst utilizes micro-SIM cards. With the launch of Apple’s Pad 3 just around the corner, however, these new micro-SIM cards may find their way into LTE-enabled iPads before they make it to Nokia’s upcoming flagship smartphone. Read on for a purported screenshot from AT&T’s system.

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Apple’s iPhone is the most profitable product offered by the most valuable company in the world. With only three iPhone models in its lineup, the Cupertino-based technology giant shipped more smartphones last quarter than any other vendor in the world. Carriers that sell Apple’s sought-after smartphone enjoy huge activation figures each quarter as a result, but activations and unit sales don’t necessarily paint a complete picture. In fact, according to some industry watchers, carriers hate the iPhone. Read on for more.

Wireless carriers trip over themselves to offer Apple’s iPhone, especially in the United States. Sprint wanted the handset so badly it was willing to guarantee Apple $15.5 billion over four years for the privilege of selling its sleek smartphone, and it certainly didn’t help matters much in the fourth quarter when Sprint posted a $1.3 billion loss. T-Mobile is still sour over failed negotiations with Apple, and the carrier has resorted to offering up free microSIM cards to iPhone users willing to come aboard and forgo 3G data speeds.

“A logical conclusion is that the iPhone is not good for wireless carriers,” Nomura Securities analyst Mike McCormack told CNNMoney. “When we look at the direct and indirect economics that Apple has managed to extract from the carriers, the carrier-level value destruction is quite evident.” The site notes that Verizon Wireless’s EBITDA service margin has dropped from an average of 46.4% per quarter to 42.2% since the carrier added the iPhone to its lineup one year ago.

But the iPhone is a necessary evil for carriers that some expect to pay off in the long run. Sprint on Wednesday reported its best quarter in more than six years for net subscriber additions thanks to the 720,000 new postpaid subscribers who came to the carrier for the iPhone. Some analysts also believe carriers will eventually raise their price points on the iPhone; despite the handset’s high cost to Apple’s partners, the iPhone 4S currently starts at $199 on contract to the end user while the iPhone 4 is available for $99 and the iPhone 3GS is free on contract from AT&T.

Regardless of what the iPhone is doing to carriers’ bottom lines, it remains the best-selling smartphone in the world and it likely will for some time. Apple is expected to launch a completely redesigned iPhone later this year that will reportedly feature a unibody aluminum case, a 4-inch display and 4G LTE connectivity.

The Samsung Galaxy Note smartphone is now available for pre-order from AT&T. Subscribers who place early orders for Samsung’s new supersized smartphone will take delivery by February 17th, and the device is set to become available in stores on February 19th for $299.99 with a new two-year agreement. The Galaxy Note will be available in two color options, carbon blue or ceramic white, and the handset features a massive 5.3-inch Super AMOLED Plus display with a 1.5GHz dual-core Qualcomm Snapdragon processor, Samsung’s S Pen stylus and 4G LTE connectivity. The Note will be released running Android 2.3 and is expected to receive an update to Ice Cream Sandwich within the next few months.

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Verizon, AT&T and any other LTE providers currently rely on 3G networks to carry voice phone calls. In the future, carriers hope to use voice-over-LTE (VoLTE) technology, and Qualcomm recently reached an important milestone on the road to making VoLTE a reality. Qualcomm announced on Thursday that the company had successfully completed the “first voice call handover from an LTE mobile network to a WCDMA network using Single Radio Voice Call Continuity (SRVCC).” The company, while working with Ericsson, used its own MSM8960 Snapdragon S4 chipset to power the test hardware, and the technology will be demonstrated live at this month’s Mobile World Congress in Barcelona. Read on for Qualcomm’s press release.

Qualcomm Chipset Powers First Successful VoIP-over-LTE Call with Single Radio Voice Call Continuity Successful Completion of a Voice Call Handover from LTE to WCDMA Network Marks Key Milestone in Development of VoLTE

SAN DIEGO – February 02, 2012 – Qualcomm Incorporated (NASDAQ: QCOM) today announced that the Company, working with Ericsson, has successfully completed the first voice call handover from an LTE mobile network to a WCDMA network using Single Radio Voice Call Continuity (SRVCC). An important technology required for voice-over-LTE (VoLTE) support, SRVCC is a 3GPP specified feature that enables continuity of service by seamlessly switching to a WCDMA network when a consumer on a VoLTE call leaves the LTE network’s coverage area. This milestone occurred on December 23, 2011 with an Ericsson network using a handset which incorporated Qualcomm’s Snapdragon™ S4 MSM8960 3G/LTE multimode processor. A demonstration will be available at Qualcomm’s booth at Mobile World Congress in Barcelona, Spain February 27 – March 1, 2012.

“As LTE networks are deployed alongside 3G networks, the ability for multimode 3G/LTE mobile devices to connect to different network technologies will be an important part of providing the best possible mobile voice and data experience to consumers,” said Cristiano Amon, senior vice president of product management, Qualcomm. “Qualcomm is committed to the successful deployment of LTE networks worldwide in conjunction with 3G networks, and the milestone we’ve achieved with Ericsson is another step towards making VoLTE technology a commercial reality.”

SRVCC is the next logical step in the 4G LTE voice roadmap following the commercial launch of circuit-switched fallback technology (CSFB) on smartphones in 2011. CSFB allows a single radio in the handset to dynamically switch from an LTE data connection to a 3G connection when the user needs to make or receive a call. Similarly, SRVCC support enables a single radio in the handset to execute a seamless handover of a voice call from an LTE network to a 3G network. Furthermore, SRVCC and CSFB allow both LTE and 3G network connections to be supported on a single chip, eliminating the need for smartphones to use separate LTE and 3G radios and modems. This allows OEMs to design handsets with lower power consumption and component costs and a smaller size. Given that 3G networks will continue to be deployed in conjunction with LTE networks for quite some time, SRVCC and CSFB are essential to provide a seamless voice experience to customers using LTE multimode handsets once VoLTE is commercially deployed. Qualcomm is committed to ensuring the best voice performance to users in LTE networks through industry-leading CSFB and SRVCC technologies.

When the Samsung Infuse 4G was released last May 2011, early adopters were promised an update to Android 2.3 in the coming months. The device, unfortunately, continued to run Android 2.2 through the end of the year. After much delay, AT&T has finally released an Android 2.3.6 Gingerbread update and while it isn’t the latest build available to Android vendors, it will undoubtedly be welcomed by frustrated Infuse users. Those who own the device will now benefit from improved copy and paste functionality, a redesigned keyboard, improved power management, a download manager and new widgets. The update is not being pushed over-the-air, however, so users will need to download the latest version of Samsung’s Kies Mini to upgrade their devices.

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Samsung announced on Monday that the company will be launching the Galaxy Note smartphone with a 90-second Super Bowl commercial, which will be the first-ever Super Bowl ad in the technology giant’s 71-year history. “During the past six months we’ve launched the Galaxy S II, Galaxy Nexus and now the Galaxy Note super phone in North America bringing unparalleled innovation to the marketplace,” said Todd Pendleton, Samsung‘s American Chief Marketing Officer. “The Galaxy Note ushers in the era of truly personalized communications, allowing people to capture, share and create like never before.” Samsung chose Bobby Farrelly — who created “There’s Something About Mary” and other popular comedies with his brother Peter — to direct the commercial. The advertisement will air during the fourth quarter of Super Bowl XLVI on February 5th, the same day the device is made available for pre-order from AT&T. Read on for Samsung’s press release.

Samsung Launching Revolutionary Galaxy Note Super Phone with 90-second Super Bowl Commercial

DALLAS – January 31, 2012 – Samsung Telecommunications America (Samsung Mobile), the No. 1 mobile phone provider in the U.S.1, is launching a revolutionary super phone, the Galaxy Note™ in the first-ever Super Bowl ad in the technology giant’s 71-year history.

“During the past six months we’ve launched the Galaxy S II, Galaxy Nexus and now the Galaxy Note super phone in North America bringing unparalleled innovation to the marketplace,” said Todd Pendleton, Chief Marketing Officer for Samsung Telecommunications America. “The Galaxy Note ushers in the era of truly personalized communications, allowing people to capture, share and create like never before.”

The game changing Galaxy Note required a launch platform just as significant which is why Samsung chose the largest event in North America to unveil this product – Super Bowl XLVI.

Samsung handpicked Bobby Farrelly to direct his first ever TV commercial. Farrelly, along with his brother, Peter, created the famous comedy films There’s Something About Mary, Dumb and Dumber, Kingpin and Fever Pitch.

Another Super Bowl commercial first is Samsung using footage shot by the Galaxy Note’s HD-quality video camera in the ad. Samsung is also one of the advertisers in the inaugural livestream of the Super Bowl broadcast.

The Galaxy Note ad will air during the 4th quarter of Super Bowl XLVI on February 5th.
An extensive digital and social campaign will accompany the ad release with Samsung Mobile US Facebook and Twitter followers gaining exclusive access to content and giveaways.

The Samsung Galaxy Note will be available for pre-order starting February 5th and go on sale at AT&T and Best Buy Stores nationwide on February 19th.

AT&T announced Monday that the Samsung Galaxy Note smartphone will be available in stores on February 19th for $299.99 on contact, a day after we recently reported. Pre-orders are set to begin this weekend with delivery promised by February 17th and two color options will be available: carbon blue and ceramic white. “The Galaxy Note brings a new level of efficiency to busy customers who would normally rely on multiple devices,” said Jeff Bradley, senior vice president of devices at AT&T. “This new breed of smartphone helps consumers accomplish more with a single device than ever before. The unique all-in-one experience can simplify daily life while tapping into AT&T’s 4G LTE network to let customers work even faster.” The handset features a massive 5.3-inch Super AMOLED Plus display with Samsung’s S Pen stylus for increased productivity and 4G LTE connectivity. AT&T’s full note to the press follows below along with a video.

CREATE, CAPTURE AND SHARE IN NEW WAYS WITH THE SAMSUNG GALAXY NOTE, AVAILABLE FROM AT&T FEB. 19

AT&T’s Latest 4G LTE Device Offers Customers a New Way to Communicate and Collaborate

DALLAS, Jan. 30, 2012 –

Key Facts

·         Previously announced at AT&T’s Developer Summit leading up to the International Consumer Electronics Show earlier this month, the Samsung Galaxy Note™ arrives in carbon blue and ceramic white at AT&T* stores beginning Feb. 19 for $299.99 with a two-year agreement.

·         Customers excited to get their hands on this dream device even earlier can pre-order at http://www.att.com/galaxynote or any AT&T company-owned retail store beginning Sunday, Feb. 5 for delivery by Feb. 17.

·         The Galaxy Note combines the best features of a smartphone with the larger viewing screen of a tablet and advanced technology in the S Pen™ — delivering an all-in-one device that allows users to work more efficiently and maintain productivity, while communicating in a unique, personal way.

·         Galaxy Note boasts the world’s first 5.3-inch HD Super AMOLED™ screen (1280×800), one of the largest screens on a smartphone, for sharp, clear colors and readability – both indoors and out.  With the expansive high-resolution screen that provides an immersive viewing experience, customers can take full advantage of the large display, to create and consume more.

·         The Galaxy Note includes a highly advanced tool called the S Pen, which delivers fast, responsive and precise control to create fine lines and detail on the device display, much like an ink pen and pad of paper.  With the S Pen, users can easily sketch drawings, jot down notes, or write emails and texts quickly and easily in free-form handwriting.

·         S Memo™, a multimedia application designed to capture all forms of user-created content captured by the S Pen, allows for pictures, voice recordings, typed text, handwritten notes or drawings to be combined via a single application, converted to a ‘memo’, and shared as desired.

·         It also includes a smart professional planning tool that makes full use of the device’s large screen. The calendar integrates the phone’s to-do list and schedule; control and navigation is intuitive, helping customers comprehensively organize their lives.

·         An easy screen-capture function also allows users to instantly save any screen, which can also be annotated with the S Pen before being saved or shared.

·         Users can communicate in personal, creative ways expanding beyond traditional sharing methods with the Galaxy Note.

Accessories

The Galaxy Note features a unique portfolio of custom designed optional accessories including:

·         Desktop Dock to get the most out of your Galaxy Note at home

·         Spare Battery Charging System that allows for a convenient backup charging solution

·         Protective Flip Cover Case, available in multiple colors including tan, black, pink, red, white, blue.

·         Galaxy Note S Pen Holder Kit which offers a solution for users in need of a more traditional writing instrument. With a spare S Pen included, the S Pen Holder secures the navigation tool inside and offers a comfortable grip and allows for more detailed use.

The Galaxy Note is also compatible with the following universal accessories:  Micro USB Adapter, HDTV Smart Adapter, Car Power Charger with Detachable Data Cable (Micro USB), Micro USB Data Cable, Travel Charger (Detachable with USB to Micro USB Cable), and the premium Refined Sound wired headset.

Pre-Orders

Beginning Sunday, Feb. 5 customers will have the option to pre-order the Note at http://www.att.comgalaxynote or by visiting an AT&T company-owned retail store.  Pre-orders processed by Feb. 15 will arrive by Feb. 17 at customers’ homes.

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“The Galaxy Note brings a new level of efficiency to busy customers who would normally rely on multiple devices,” said Jeff Bradley, senior vice president, Devices, AT&T Mobility and Consumer Markets.  “This new breed of smartphone helps consumers accomplish more with a single device than ever before.  The unique all-in-one experience can simplify daily life while tapping into AT&T’s 4G LTE network to let customers work even faster.”

Limited 4G LTE availability in select markets.  4G speeds delivered by LTE, or HSPA+ with enhanced backhaul, where available.  Deployment ongoing.  Compatible device and data plan required. LTE is a trademark of ETSI.  Learn more at att.com/network.

Limited-time offer. Samsung Galaxy Note requires a new 2-yr wireless agreement with voice (min $39.99/mo) and min monthly data plan ($20/mo). Subject to Wireless Customer Agrmt. Credit approval req’d. Activ fee $36/line. Geographic, usage and other terms, conditions and restrictions apply, and may result in svc termination. Coverage and svcs not avail everywhere. Taxes and other charges apply. Data (att.com/dataplans): If usage exceeds your monthly data allowance, you will automatically be charged overage for additional data provided. Early Termination Fee (att.com/equipmentETF): After 30 days, ETF up to $325. Restocking fee up to $35. Other Monthly Charges/line may include a Regulatory Cost Recovery Charge (up to $1.25), a gross receipts surcharge, federal and state universal svc charges, fees and charges for other gov’t assessments. These are not taxes or gov’t req’d charges. Visit a store or att.com/wireless to learn more about wireless devices and services from AT&T.

Apple’s share of the global smartphone market reportedly topped the market share of all Android vendors combined in the fourth quarter last year, and nowhere was the iPhone’s lead more dominant than at AT&T. The nation’s No.2 carrier on Thursday reported its earnings for the December quarter, stating that smartphone activations totaled 9.4 million units. Apple’s iPhone lineup accounted for 7.6 million activations, or 81% of all smartphones AT&T activated during the three months ended in December. Considering the handful of BlackBerry smartphones and Windows Phones the carrier sold last quarter, all of AT&T’s Android phones combined were responsible for under 19% of the carrier’s smartphone sales. Android handsets continue to proliferate globally and with a number of stunners due to be unveiled next month at Mobile World Congress in Barcelona, the tide will certainly soon turn back in Google’s favor. The iPad 3 is due to launch in the coming months and a completely redesigned iPhone on the horizon, however, and Apple may very well top its record-setting fiscal first quarter later this year.

Best-Ever Mobile Broadband Sales and Strong Cash Flows Highlight AT&T’s Fourth-Quarter Results; Stock Buyback Begins on Previous 300 Million Share Authorization

2012 Outlook: Solid Revenue, Margins and Earnings Growth with Strong Free Cash Flow

Dallas, Texas, January 26, 2012

• $(1.12) diluted EPS in fourth quarter compared to $0.18 diluted EPS in the year-ago period. Excluding significant items for both quarters, EPS of $0.42 compared to $0.55 in the year-ago quarter, driven by the company’s best-ever quarter for smartphone activations — up nearly 60 percent year over year
• Consolidated revenues of $32.5 billion, up $1.1 billion, or 3.6 percent, versus the year-earlier period
• In 2011, AT&T’s growth engines — wireless, wireline data and managed services — represented 76 percent of total revenues and grew 7.5 percent versus 2010, led in the fourth quarter by:
  • 10.0 percent growth in wireless revenues
  • 19.4 percent growth in wireless data revenues, up $956 million versus the year-earlier quarter
  • 16.4 percent growth in strategic business services revenues
  • 43.7 percent growth in consumer U-verse revenues
• 9.4 million smartphone sales, best-ever quarter and 50 percent more than previous quarterly record and nearly double 3Q11 sales; 82 percent of postpaid sales were smartphones
• 717,000 wireless postpaid net adds, the largest increase in five quarters; 2.5 million increase in total net wireless subscribers, with gains in every customer category
• Best-ever quarter for Android and Apple smartphones, including 7.6 million iPhone activations
• 571,000 branded computing device (tablets, aircards, etc.) sales, best-ever quarter to reach 5.1 million total subscribers; up almost 70 percent from a year ago
• 12th consecutive quarter with a year-over-year increase in postpaid wireless subscriber ARPU (average monthly revenues per subscriber), up 1.4 percent to $63.76 — more than $6 higher than nearest competitor’s ARPU
• Second consecutive quarter of sequential growth in wireline business revenues
• Sixth consecutive quarter of year-over-year growth in wireline consumer revenues, driven by AT&T U-verse^® services
• 208,000 net gain in AT&T U-verse TV subscribers to reach 3.8 million in service, with continued high broadband and voice attach rates

AT&T Inc. (NYSE:T) today reported fourth-quarter results highlighted by record sales, strong wireless network performance and improved wireline revenue trends.

“We had a tremendous year in terms of execution, and we have excellent momentum across our growth platforms,” said Randall Stephenson, AT&T chairman and chief executive officer.”This was a blowout quarter for sales. Our network performance is at a high level on voice quality and best-in-class mobile download speeds. Sales continue to be strong and business revenue trends are on a good track.

“Looking ahead, we start 2012 with the best visibility we’ve had in some time, and we’re well positioned to deliver solid results — including continued revenue growth with margin expansion, solid earnings per share growth and strong cash flow,” Stephenson said.”In short order, we will begin share repurchases to deliver significant value to our owners.”

Fourth-Quarter Financial Results
For the quarter ended December 31, 2011, AT&T’s consolidated revenues totaled $32.5 billion, up $1.1 billion, or 3.6 percent, versus the year-earlier quarter.

Compared with the fourth quarter of 2010, operating expenses were $41.5 billion versus $29.3 billion; operating loss was $9.0 billion, compared to operating income of $2.1 billion; and AT&T’s operating income margin was (27.7) percent, compared to 6.7 percent. Excluding fourth-quarter significant items, operating expenses were $28.1 billion versus $25.8 billion; operating income was $4.4 billion, compared to $5.6 billion; and operating income margin was 13.5 percent, compared to 17.7 percent.

Fourth-quarter 2011 net income attributable to AT&T totaled $(6.7) billion, or $(1.12) per diluted share. Excluding significant non-cash charges of $0.65 from the actuarial loss on benefit plans and $0.48 for directory asset impairments, along with a one-time charge of $0.44 for termination of the T-Mobile USA acquisition and a one-time gain of $0.03 from a tax settlement, adjusted earnings per share was $0.42.

(The actuarial loss on benefit plans was driven by a reduction in the discount rate from 5.8 percent to 5.3 percent. While our investment returns were better than the overall market, they were less than expectations; this was largely offset by better-than-expected force and medical cost management. The directory asset impairment resulted from an annual review of intangible assets compared to fair value.)

These results compare with reported net income attributable to AT&T of $1.1 billion, or $0.18 per diluted share, in the fourth quarter of 2010. Excluding significant items, earnings per share for the fourth quarter of 2010 was $0.55 per diluted share.

Fourth-quarter 2011 cash from operating activities totaled $7.5 billion, and capital expenditures totaled $5.5 billion. Also included in the fourth quarter, the company made a $1.0 billion contribution to the company’s pension fund. No additional funding is required in 2012. Free cash flow — cash from operating activities minus capital expenditures — totaled $2.0 billion.

Full-Year Results
For the full year 2011, compared with 2010 results, AT&T’s consolidated revenues totaled $126.7 billion versus $124.3 billion, up 2.0 percent; operating expenses were $117.5 billion, compared with $104.7 billion; net income attributable to AT&T was $3.9 billion versus $19.9 billion; and earnings per diluted share was $0.66 compared with $3.35. Excluding significant items, earnings per share totaled $2.20, compared with $2.29.

Compared with 2010 results, AT&T’s full-year cash from operating activities totaled $34.6 billion, down from $35.0 billion. Capital expenditures, including capitalized interest, totaled $20.3 billion versus $20.3 billion, including a 6.4 percent increase in wireless-related capital investment versus 2010, as AT&T aggressively deployed next-generation mobile broadband networks. Free cash flow totaled $14.4 billion, compared with $14.7 billion.

Outlook
AT&T is well positioned to deliver solid revenue and earnings growth with improving margins while returning substantial value to shareowners. In 2012, AT&T expects continued consolidated revenue growth, including postpaid wireless ARPU growth around 2 percent for the year. The company also expects to expand consolidated and wireless margins while keeping wireline margins stable. Achieving these targets will lead to mid-single-digit or better earnings growth with an opportunity to accelerate earnings growth beyond 2012. Outlook excludes any significant items. Importantly, little economic lift is assumed with these expectations.

AT&T expects capital expenditures to be about $20 billion, stable with 2011, as increases in wireless spending offset declines in wireline capital expenditures. The company also expects strong free cash flow, with full-year free cash flow in the $15 to $16 billion range, and plans to begin execution of its existing 300 million share repurchase authorization immediately.

WIRELESS OPERATIONAL HIGHLIGHTS
Record-setting mobile broadband sales and the company’s best postpaid subscriber growth in five quarters drove double-digit wireless revenue growth. AT&T continues to lead the industry in smartphone penetration, mobile broadband sales and postpaid ARPU. Highlights included:

Best Postpaid Growth in Five Quarters. AT&T posted a net increase in total wireless subscribers of 2.5 million in the fourth quarter to reach 103.2 million in service. This included gains in every customer category. Subscriber additions for the quarter include postpaid net adds of 717,000, the best gain in five quarters. Prepaid net adds were 159,000, connected device net adds were 1,029,000 and reseller net adds were 592,000. Fourth-quarter net adds reflect accelerated adoption of smartphones, including the October launch of iPhone 4S, increases in prepaid and reseller subscribers and sales of tablets and connected devices such as automobile monitoring systems, security systems and a host of other emerging products.

Record Quarter for Smartphone Sales. AT&T delivered its best-ever smartphone sales quarter — up nearly 60 percent from the year-ago period. (Smartphones are devices with voice and data capabilities and an advanced operating system to better manage data and Internet access.) In the fourth quarter, the company set a new record with 9.4 million smartphones sold, nearly double the number sold in the third quarter and 50 percent more than the previous quarterly record. Fourth-quarter smartphone sales represented more than 80 percent of postpaid device sales. Both iPhone and Android device sales set records. During the quarter, more than 7.6 million iPhones were activated, the majority of which were iPhone 4S, which went on sale Oct. 14, and more than twice as many Android smartphones were sold versus the fourth quarter a year ago. iPhone sales were helped by a superior customer experience, with AT&T delivering download speeds up to three-times faster than on other U.S. carriers’ networks.

At the end of the quarter, 56.8 percent of AT&T’s 69.3 million postpaid subscribers had smartphones, up from 42.7 percent a year earlier and 32.8 percent two years ago. The average ARPU for smartphones on AT&T’s network is 1.9 times that of the company’s non-smartphone devices. About 87 percent of smartphone subscribers are on FamilyTalk^® or business plans. Churn levels for these subscribers are significantly lower than for other postpaid subscribers.

Best-Ever Quarter for Branded Computing Device Sales. AT&T had its best sales quarter ever for branded computing subscribers, a new growth area for the company that includes tablets, aircards, mobile devices, tethering plans and other data-only devices. AT&T added 571,000 of these devices to reach 5.1 million, an almost 70 percent increase in total subscribers from a year ago. Most of those new subscribers were tablets, with 311,000 added in the quarter, more than half of which were postpaid.

Double-Digit Growth for Wireless Revenues. Total wireless revenues, which include equipment sales, were up 10.0 percent year over year to $16.7 billion. Wireless service revenues increased 4.0 percent, to $14.3 billion, in the fourth quarter.

Wireless Data Revenues Increase 19.4 Percent. Wireless data revenues — driven by Internet access, access to applications, messaging and related services — increased by $956 million, or 19.4 percent, from the year-earlier quarter to $5.9 billion. AT&T’s postpaid wireless subscribers on monthly data plans increased by 16.4 percent over the past year. The number of subscribers on tiered data plans also continues to increase. About 22 million, or 56 percent, of all smartphone subscribers are on tiered data plans, and about 70 percent have chosen the higher-tier plans.

Industry-Leading Postpaid ARPU Continues Growth. Driven by strong data growth, postpaid subscriber ARPU increased 1.4 percent versus the year-earlier quarter to $63.76. This marked the 12th consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. AT&T continues to lead the industry with postpaid subscriber ARPU about $6 higher than the nearest competitor. Postpaid data ARPU reached $26.01, up 14.9 percent versus the year-earlier quarter.

Postpaid Churn Up Only Slightly. Despite record smartphone sales and the first holiday sales period since the loss of AT&T’s iPhone exclusivity, postpaid churn was up only slightly at 1.21 percent, compared to 1.15 percent in both the year-ago fourth quarter and in the third quarter of 2011. Total churn was up slightly at 1.39 percent versus 1.32 percent in the fourth quarter of 2010 and 1.28 percent in the third quarter of 2011.

Wireless Margins Reflect Record Sales. Fourth-quarter wireless margins reflect record-setting smartphone sales and customer upgrade levels. This was offset in part by improved operating efficiencies and further revenue gains from the company’s growing base of high-quality smartphone subscribers.

AT&T’s fourth-quarter wireless operating income margin was 15.2 percent versus 22.9 percent in the year-earlier quarter, and AT&T’s wireless EBITDA service margin was 28.7 percent, compared with 37.6 percent in the fourth quarter of 2010. (EBITDA service margin is earnings before interest, taxes, depreciation and amortization, divided by total service revenues.) Fourth-quarter wireless operating expenses totaled $14.2 billion, up 20.9 percent versus the year-earlier quarter, and wireless operating income was $2.5 billion, down 27.0 percent year over year.

WIRELINE OPERATIONAL HIGHLIGHTS
AT&T’s fourth-quarter wireline results were highlighted by the second consecutive quarter of sequential wireline business revenue growth, a 44 percent increase in U-verse revenues and solid cost management:

Sequential Wireline Business Revenue Growth Continues. Total business revenues grew sequentially for the second consecutive quarter. Revenues were $9.3 billion, down 1.4 percent versus the year-earlier quarter but a slight increase over the third quarter of 2011. The year-over-year decline reflects economic conditions and weakness in voice and legacy data products somewhat offset by growth in IP data. Business service revenues, which exclude CPE, declined 1.2 percent year over year, compared to a year-over-year decline of 4.3 percent in the year-ago quarter and were essentially flat sequentially, despite fewer business days in the fourth quarter.

Robust Strategic Business Services Revenues. Revenues from the new-generation capabilities that lead AT&T’s most advanced business solutions — including Ethernet, VPNs, hosting, IP conferencing and — grew 16.4 percent versus the year-earlier quarter, continuing strong trends in this area. This now represents a nearly $6 billion annualized revenue stream.

VPN Growth Drives Business IP Revenues. Total business IP data revenues grew 9.2 percent versus the year-earlier fourth quarter, led by growth in VPN revenues. IP-based solutions allow customers to easily add managed services such as network security, cloud services and IP conferencing on top of their infrastructures. Total business data revenues grew 1.3 percent year over year.

Wireline Consumer Revenues Continue Growth. Driven by strength in IP data services, revenues from residential customers totaled $5.3 billion, an increase of 0.5 percent versus the fourth quarter a year ago. The fourth quarter marked the sixth consecutive quarter of year-over-year growth.

208,000 U-verse Net Adds. AT&T U-verse TV added 208,000 subscribers to reach 3.8 million in service. As U-verse scales, its margins improve, contributing to profitability. In the fourth quarter, the AT&T U-verse High Speed Internet attach rate was 90 percent and about half of new subscribers took AT&T U-verse Voice. About three-fourths of AT&T U-verse TV subscribers have a triple- or quad-play option from AT&T. ARPU for U-verse triple-play customers was almost $170, up 2.5 percent year over year.

AT&T’s U-verse deployment has reached its goal of passing 30 million living units. Companywide penetration of eligible living units continues to grow and was at 15.9 percent in the fourth quarter, and 25.0 percent across areas marketed to for 36 months or more. AT&T’s total video subscribers, which combine the company’s U-verse and bundled satellite customers, reached 5.6 million at the end of the quarter, representing 23.9 percent of households served.

U-verse Broadband Continues Strong Growth. AT&T U-verse High Speed Internet delivered a fourth-quarter net gain of 587,000 subscribers to reach a total of 5.2 million, helping offset losses from DSL. Overall, AT&T lost 49,000 wireline broadband connections. About 74 percent of consumers have a broadband plan delivering speeds of 3 Mbps or higher versus 65 percent in the year-ago quarter.

U-verse Drives Consumer Revenue Transformation. U-verse continues to drive a transformation in wireline consumer, reflected by the fact that consumer IP revenues now represent 53.2 percent of wireline consumer revenues, up from 45.0 percent in the year-earlier quarter. Increased AT&T U-verse penetration and a significant number of subscribers on triple- or quad-play options drove 18.7 percent year-over-year growth in IP revenues from residential customers (broadband, U-verse TV and U-verse Voice) and 4.3 percent sequential growth. U-verse revenues grew 43.7 percent compared with the year-ago fourth quarter and were up 8.6 percent versus the third quarter of 2011.

Growth in Revenues Per Household Continues. Wireline revenues per household served increased 7.0 percent versus the year-earlier fourth quarter and were up 2.3 percent sequentially (average revenues per household is total wireline consumer revenues divided by the average monthly households in service), driven by AT&T U-verse services. This marked AT&T’s 16th consecutive quarter with year-over-year growth in wireline consumer revenues per household as U-verse scales and represents a larger portion of this category.

Consumer Connection Trends. In the fourth quarter, AT&T posted a decline in total consumer revenue connections primarily due to expected declines in traditional voice access lines, consistent with broader industry trends and somewhat offset by increases in U-verse TV and VoIP (Voice over Internet Protocol) connections. AT&T U-verse Voice connections increased by 136,000 in the quarter and 598,000 over the past four quarters. Total consumer revenue connections at the end of the fourth quarter were 41.3 million, compared with 43.4 million at the end of the fourth quarter of 2010 and 41.9 million at the end of the third quarter of 2011.

Wireline Revenues Down Slightly. Total fourth-quarter wireline revenues were $14.9 billion, down 1.4 percent versus the year-earlier quarter and down slightly sequentially. Fourth-quarter wireline operating expenses were $13.1 billion, down 0.2 percent versus the fourth quarter of 2010 and down 0.1 percent sequentially. Wireline operating income totaled $1.8 billion, down from $2.0 billion in the fourth quarter of 2010 and down versus the third quarter of 2011. AT&T’s fourth-quarter wireline operating income margin was 11.9 percent, compared to 13.0 percent in the year-earlier quarter and down slightly from 12.1 percent in the third quarter of 2011. Improved consumer and business IP data revenue trends and execution of cost initiatives helped to partially offset declines in voice revenues.

 

LG announced on Wednesday that it has sold more than 1 million Optimus LTE handsets. A version of the device landed in the United States as the Nitro HD on AT&T, although it’s unclear if that phone is figured into the count. “The combination of LTE connectivity with LG’s True HD IPS display has resonated with the public regarding the potential of LTE technology,” said Dr. Jong-seok Park, President and CEO of LG Mobile Communications Company. LG said it sold 600,000 Optimus LTE units during the first three months the phone was available. The company also sold 8,500 units in Japan on the phone’s launch day. The Optimus LTE features a 4.5-inch 1280 x 720-pixel True HD IPS display, a 1.5GHz dual-core processor and an 8-megapixel camera. LG’s full press release follows after the break.

LG OPTIMUS LTE RECORDS ONE MILLION IN SALES
Innovative Smartphone Demonstrates LG’s Leadership in Nascent LTE Market

SEOUL, Jan. 25, 2011 – LG Electronics (LG) announced today that sales of its Optimus LTE smartphone have exceeded over one million units, putting it at the forefront of the emerging LTE era. The world’s first HD LTE smartphone, the Optimus LTE is currently available in the US, Canada, Japan and South Korea.
First launched in Korea in October 2011, the Optimus LTE hit sales of 600,000 units there in the first three months, making it the most popular LTE-capable phone in a highly competitive market. On the first day of its launch in Japan, the Optimus LTE also recorded sales of 8,500 units. The phone is now available as a premium smartphone through three major mobile carriers in North America, the most advanced market in terms of LTE coverage.

“With brisk sales for a high-end smartphone, the Optimus LTE reaffirms LG’s leadership in mobile LTE technology,” said Dr. Jong-seok Park, President and CEO of LG Mobile Communications Company. “The combination of LTE connectivity with LG’s True HD IPS display has resonated with the public regarding the potential of LTE technology.”

The Optimus LTE delivers the ultimate HD multimedia environment with a 4.5-inch 1280 x 720 (16:9 ratio) True HD IPS display and fast LTE connectivity. The True HD IPS display features an incredible 2.76 million sub-pixels as well as superior color accuracy, clarity, natural color and battery efficiency.

Ensuring peak performance, the Optimus LTE runs on a 1.5GHZ dual-core processor and includes a 1,830 mAh battery, 8MP camera, and multiple connectivity options including DLNA(Digital Living Network Alliance), to provide users a truly best-in-class smartphone experience.

According to a report by Jefferies & Company, LG is the global leader in LTE patents with ownership of 23 percent of approximately 1,400 LTE patents filed worldwide, with a financial value of almost USD 8 billion. LG demonstrated the world’s first LTE technology in 2007 and developed the world’s first LTE modem chipset in 2008. LG introduced the world’s fastest LTE technology in 2010 and conducted the world’s first video phone call on a LTE network in 2011.

RadioShack is looking to launch a new price-matching program for smartphones on January 29th, according to Sprintfeed. The “Mobile Low Price Guarantee” program will give RadioShack employees the ability to match smartphone prices advertised by competing retailers. Similar programs have already been in place at retailers such as Target, Walmart and Best Buy. With more users turning to smartphones each year, a price-matching program will only benefit the consumer. RadioShack currently carries smartphones for AT&T, Sprint and Verizon Wireless. 

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While AT&T’s Nokia Lumia 900 could be an excellent option for someone in the market for a 4G LTE Windows Phone, there’s also the HTC Titan II — which we exclusively revealed — that will soon be available as well. AT&T is currently planning to launch the HTC Titan II for $199.99 with a two-year agreement on March 18th. The carrier is also getting ready to launch a Sony tablet for $409.99 called the Crystal, though it will feature HSPA+ and not 4G LTE. Rounding things out for the latter part of the first quarter is the Samsung Galaxy S II Skyrocket HD, the Samsung Exhilarate and Sony Xperia ion, though pricing and availability are still unknown.

In addition to news that AT&T is planning to launch the Nokia Lumia 900 at an earth-shattering sub-$100 price point, we have street dates for another highly anticipated smartphone, the Samsung Galaxy Note, along with two unannounced Android devices AT&T is currently prepping. AT&T’s phablet is set to hit store shelves on February 18th for $299.99. The Samsung Rugby Smart, which appears to be a entry-level Android smartphone with HSPA+, and the AT&T Fusion will both launch on February 18th as well for  $99.99 and $124.99, respectively. The nation’s No.2 carrier has a big first quarter planned, and while Nokia’s Lumia 900 is shaping up to be the star of the show, Android fans will still have plenty of new options over the next few months.

We just received a portion of AT&T’s 2012 roadmap from a trusted source, and it looks like AT&T isn’t playing around this year. There are some heavy hitters lined up for the first quarter of 2012, and one of the biggest smartphone launches of the quarter is currently scheduled to take place in mid-March. According to our source, the Nokia Lumia 900 is set to launch on March 18th, which has been rumored before. The phone hasn’t yet received technical acceptance however, so that date could change. The bigger news is the phone’s price: AT&T and Nokia are planning to launch this flagship smartphone at just $99.99 on a two-year contract. That price point would make this sleek smartphone an absolute game-changer for Windows Phone, and it makes sense when you think about how much money Nokia and Microsoft are planning to spend promoting the launch. We took a hands-on look at the Lumia 900 during CES earlier this month and Nokia could easily have a hit on its hands when this handset launches later this quarter.

AT&T’s Senior Vice President-Federal Regulatory and Chief Privacy Officer Bob Quinn recently wrote a post on the company’s blog that called Sprint out for deciding to use roaming agreements, and “disinvesting” in its own network in Kansas and Oklahoma instead of providing customers with access to its network. As it turns out, the Federal Communications Commission originally prevented carriers, under the Home Market Rule, from creating roaming agreements when they had the spectrum or the ability to use their own networks. However, as Quinn explains, the rule was overturned in 2010 and is currently undergoing an appeals process.

Post updated below with a comment from a Sprint spokesperson.

So what makes AT&T so mad about Sprint’s decision to use someone else’s network? AT&T doesn’t think the decision makes any sense; Sprint argued the move was made in an effort to cut costs and focus on its smartphone users, but AT&T thinks Sprint should follow in AT&T and Verizon’s footsteps and focus on building out its network capacity instead.

“I mean, at AT&T we have spent a lot of time and money investing in recent years racing to keep up with our subscribers’ surging broadband demands precisely because those demands are growing so rapidly,” Quinn wrote. “Verizon has been doing the same in building its own 4G LTE network. But at Sprint, the logic is different, and investment – Sprint investment – does not appear to be the solution. My guess is that Kansas and Oklahoma represent the tip of tip of the iceberg here. Does this represent the beginning of Sprint’s Disappearing Network Vision? Will this disinvestment story go nationwide and appear in your local paper soon?”

Quinn also appears to have some issues with the FCC, which allowed Sprint to make the changes in the first place. “We remain hopeful that the Court will reject the FCC’s market intervention here and realize that this regulation actually disincents investment by everyone in the marketplace at a time when promoting investment and job growth should be priority #1 for every policymaker in this country,” Quinn said.

UPDATE: Sprint spokesman John Taylor posted the following response in the comments section of this post:

AT&T has it facts wrong.

Sprint hasn’t moved any customers off of its network. These customers in certain rural areas of Oklahoma and Kansas were long served by a roaming partner. The change Sprint announced simply notified customers of that fact.

Roaming agreements benefit consumers because carriers can extend their network footprints. They also benefit carriers, even AT&T.

AT&T, for its part has more unused spectrum than any other carrier in the country. They’ve also under invested in the AT&T network on a per subscriber basis when compared to the rest of the industry by a wide margin. That’s what makes the criticism from AT&T’s lobbyist especially rich.

For many years, the FCC has required wireless carriers to negotiate “just and reasonable” rates for voice roaming — now it is requiring the same for data roaming. For consumers, this means you can check email, surf the Net and use other data services wherever you travel in the U.S.

That’s why the entire wireless industry, with the exception of AT&T and Verizon, supports the FCC’s move.

High data roaming prices may benefit AT&T and Verizon shareholders, but they’re bad for consumers and competition.

John Taylor
Public Affairs
Sprint

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