NVIDIA on Thursday announced that its Icera 410 LTE multi-mode data modem for tablets and clam shell devices has been validated for use on AT&T’s 4G LTE network. “Validation with AT&T is an achievement that paves the way for NVIDIA Icera-powered LTE devices on the AT&T network through this year and next,” said Stan Boland, senior vice president of Mobile Communications at NVIDIA. The Icera 410 LTE modem offers 4G LTE connectivity of up to 50Mbps alongside HSPA+, 3G and 2G connectivity. NVIDIA’s modem is the company’s latest step toward bringing LTE and Tegra 3 compatibility to smartphones. So far, manufacturers have been forced to scrap NVIDIA’s quad-core processor in devices bound for LTE networks in the U.S. Read on for NVIDIA’s press release.

NVIDIA Icera Modem Chipset Validated on AT&T LTE Network

SANTA CLARA, CA — (Marketwire) — 05/24/2012 — NVIDIA today announced that the NVIDIA® Icera® 410 LTE multimode data modem chipset for tablets and clamshell devices has been tested and validated for operation on the AT&T 4G LTE network.

AT&T qualification tests help ensure that product manufacturers can confidently select chipsets that integrate with connected devices and can quickly achieve final product qualification.

“Validation with AT&T is an achievement that paves the way for NVIDIA Icera-powered LTE devices on the AT&T network through this year and next,” said Stan Boland, senior vice president of Mobile Communications at NVIDIA.

The NVIDIA Icera 410 LTE modem delivers lightning-fast web browsing, video streaming and multiplayer gaming to tablets and clamshell devices. It is the first Icera modem to implement 4G LTE in NVIDIA’s software defined radio baseband processor. Together with its multimode radio transceiver, the chipset offers 4G LTE at category 2 data rates (up to 50 Mbps) as well as 4G HSPA+, 3G and 2G compatibility.

AT&T noted record smartphone sales when it posted a monster holiday quarter to close out 2011, and the carrier came back in the first quarter this year with another record-setting report that beat Wall Street’s profit expectations. Verizon Wireless reported record revenue growth in the fourth quarter last year, and profits were up 16% in the first quarter of 2012 compared to the same quarter in 2011. But despite soaring performance, executives at both carriers confirmed to investors this week that they are preparing to make new moves in an effort to squeeze more revenue out of subscribers.

Earlier this week, Verizon Communications chief financial officer Fran Shammo confirmed that Verizon Wireless will force customers off of their grandfathered unlimited smartphone data plans and onto more expensive shared data plans when they upgrade to 4G handsets. ”A lot of our 3G base is on unlimited,” Shammo said while speaking at the annual J.P. Morgan Technology, Media and Telecom conference. “When they migrate off 3G they will have to go to data share. That is beneficial to us.”

He continued, noting that the move to shared data plans will help the carrier increase its average revenue per user (ARPU). “I think revenue ARPU will continue to grow as we get into data share plans and people start to connect more devices [on the network]. As they add more devices, they are going to have to buy up into tiers. So again, you will see the revenue increase there.”

During the same conference, AT&T CEO Ralph de la Vega commented that the carrier will take particular care moving forward to offer smartphones that keep subsidies as low as possible while maintaining high magins. “We have to watch subsidies and make sure that we bring devices to market that customers love and will keep and have low subsidies,” de la Vega said according to Fierce Wireless.

Like Verizon, AT&T also intends to boost its average revenue per user by offering shared data plans to its subscribers.

These moves by the nation’s top two wireless carriers are part of ongoing efforts to maximize performance despite potential negative ramifications for subscribers. Both Verizon Wireless and AT&T recently did away with their unlimited smartphone data plans, instead opting for tiered data plans that impose steep penalties on customers who go over their monthly data allotments.

The nation’s second largest wireless carrier has reportedly held talks with Leap Wireless in recent months over a possible acquisition, according to Reuters. The move is the latest attempt by AT&T in its efforts to find additional wireless spectrum after its failed acquisition of T-Mobile. The talks were serious enough that Leap reportedly hired bankers to advise it on a potential deal, although it is unclear if discussions are still ongoing. Leap Wireless, which operates the nation’s seventh largest wireless network, has a market value of roughly $400 million and $3.2 billion of long-term debt. Earlier in the week it was reported that T-Mobile and MetroPCS were also holding discussions regarding a possible merger.

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Now that T-Mobile and AT&T don’t have to pretend to like each other anymore, the nation’s No.4 carrier can go back to attacking AT&T and its top-selling smartphone, Apple’s iPhone 4S. T-Mobile debuted a new TV commercial this week that once again takes aim at AT&T’s slow network and Apple’s popular iPhone. ”If this is the speed of the iPhone 4S on AT&T, what does 4G speed on T-Mobile look like?” the ad’s narrator asks as a man cruises along the highway on a motorcycle. Then, T-Mobile’s TV spokeswoman flies by the man while decked in leather on her new motorcycle. T-Mobile might be going out of its way to draw attention to the fact that Apple’s iPhone will be supported on its network by the end of the year but in the meantime, expect plenty more ads taking shots at Apple’s handset and its top U.S. carrier partner. The full video can be viewed below.

AT&T Mobility CEO Ralph de la Vega said he feels good about the future of the company’s shared family data plans. “I’m very comfortable with the plan that will be offered to our customers,” de la Vega told CNET at the CTIA Wireless trade show. The comments mark a 180-degree reversal from previous statements the CEO made in January. De la Vega had said the company had run into complications over IT and billing issues, as well as complications regarding how the carrier would subsidize devices. “We want to make sure we get it right,” he said in January. A shared data plan would allow families to buy a larger bucket of data that can be shared by multiple devices, like a pool of voice minutes. The executive wouldn’t comment further on specifics and only said plans will be available in the coming months, though AT&T may be looking to beat Verizon Wireless to the punch.

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When asked about the slow roll-out of updates for its Android-powered smartphones and tablets, AT&T CEO Randall Stephenson claimed Google was at fault and the carrier could do nothing about it. “Google determines what platform gets the newest releases and when,” the executive said. “A lot of times, that’s a negotiated arrangement and that’s something we work at hard. We know that’s important to our customers. That’s kind of an ambiguous answer because I can’t give you a direct answer in this setting.” The Mountain View-based company has fired back, however, and said the CEO’s statements are not accurate. 

“Mr. Stephenson’s carefully worded quote caught our attention and frankly we don’t understand what he is referring to. Google does not have any agreements in place that require a negotiation before a handset launches,” a Google spokesperson told 9To5Google. “Google has always made the latest release of Android available as open source at source.android.com as soon as the first device based on it has launched. This way, we know the software runs error-free on hardware that has been accepted and approved by manufacturers, operators and regulatory agencies such as the FCC. We then release it to the world.”

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Samsung and AT&T on Monday announced the Samsung Focus 2, a budget-friendly Windows Phone launching on May 20th for just $49.99 on contract. The handset features a 4-inch Super AMOLED display, a 5-megapixel camera, Windows Phone 7.5 and 4G LTE connectivity. “AT&T offers our customers the broadest Windows Phone portfolio of any carrier, with three 4G LTE Windows Phones – the only 4G LTE Windows Phones in the U.S. – now at a variety of price points and form factors,” AT&T SVP of devices Jeff Bradley said.  “The Samsung Focus 2 brings the people-first Windows Phone interface together with AT&T’s fast 4G LTE network for an unbeatable experience.” Samsung’s full press release follows below.

AT&T TO LAUNCH SAMSUNG FOCUS 2; OFFERS CUTTING-EDGE CAPABILITIES AT AN ATTRACTIVE PRICE

Samsung’s First 4G LTE Windows Phone Offers AT&T Customers User-Friendly,

Affordable Windows Phone in a Slim, Stylish Design

DALLAS, May 7, 2012 –

Key Facts

·         The Samsung Focus® 2, an affordable Windows® Phone on AT&T’s 4G LTE network, will be available from AT&T beginning May 20 in pure white for $49.99 with a two-year service agreement.

·         With the launch of the third Windows Phone smartphone on its 4G LTE network, AT&T continues to offer customers the most robust Windows Phone portfolio of any carrier.

·         As Samsung’s first 4G LTE Windows Phone, the Focus 2 is sleek and stylish.  Measuring 10.98mm thin and weighing only 4.3 ounces, it fits perfectly in your hand, purse or pocket.

In April, AT&T launched the first 4G LTE Windows Phones in the world with the Focus 2 marking the carrier’s third 4G LTE offering on this operating system.  AT&T customers have access to the nation’s largest 4G network, covering over 260 million people. As 4G LTE expands, AT&T customers are able to enjoy a widespread, ultra-fast and consistent 4G experience on their compatible device as they move in and out of LTE areas. AT&T has two 4G networks that work together for customers, LTE and HSPA+ with enhanced backhaul. With other carriers, when you travel outside of their LTE coverage area, you’re on a much slower 3G network.

Beginning May 20, customers can purchase the Focus 2, available in a glossy pure white, from AT&T for $49.99 with a two-year contract.

Like AT&T’s other new 4G LTE Windows Phones, the Samsung Focus 2 features the Windows Phone 7.5 operating system which makes it easier to do everyday tasks faster.   Only Windows Phone has Live Tiles, providing real time updates on your Start Screen including calendar appointments, emails or social media feeds. With Bing Search built-in, you’ll never be lost, as finding directions or a highly rated restaurant nearby is quick and easy. Microsoft® Office Mobile and SkyDrive® also allow you to create, save and access documents anywhere from the cloud to help maintain productivity while on-the-go.

The Samsung Focus 2, the latest addition to the Focus family (following the Focus, Focus Flash and Focus S), comes with a 4-inch Super AMOLED™ screen and 5-megapixel camera that makes taking pictures or shooting video in HD 720p a breeze.  The front-facing VGA camera provides the ability for video chat.  Hands-free messaging is available through speech-to-text and text-to-speech features that make it easier to stay in touch safely while out and about.

“AT&T offers our customers the broadest Windows Phone portfolio of any carrier, with three 4G LTE Windows Phones – the only 4G LTE Windows Phones in the U.S. – now at a variety of price points and form factors,” said Jeff Bradley, senior vice president, Devices, AT&T Mobility.  “The Samsung Focus 2 brings the people-first Windows Phone interface together with AT&T’s fast 4G LTE network for an unbeatable experience.”

“Samsung is the unmatched leader in offering smartphones across a variety of platforms and the Focus 2 is a powerful example of our continued commitment to Windows Phone,” said Dale Sohn, president of Samsung Mobile. “As our first 4G LTE Windows Phone, the Focus 2 is a fast and versatile device for productivity, entertainment and social networking.”

For more information, customers can visit http://www.att.com/samsungfocus2  or http://www.samsung.com/us/focus2.

AT&T on Monday unveiled a new end-to-end suite of home automation and home security services ahead of the annual CTIA Wireless convention in New Orleans, Louisiana. Dubbed AT&T Digital Life, the carrier’s new offering is an IP-based solution that includes home security and automation features, professional installation and monitoring services, and software for PCs, tablets or smartphones that allows users to monitor and control system features remotely from anywhere in the world. “AT&T Digital Life will change the way people live, work and play — and meets a clear need in the market,” AT&T SVP of Digital Life said in a statement. “The service is smart, simple and customer centric– freeing homeowners to do the things they want to do without compromising on the things they need to do to care for family and home.” AT&T will begin trialing its new Digital Life service in Atlanta, Georgia and Dallas, Texas this summer. Digital Life subscribers will not be required to subscribe to AT&T’s wireless services. The carrier’s full press release follows below.

AT&T PLANS NATIONWIDE LAUNCH OF WIRELESS-CENTRIC 

HOME SECURITY AND AUTOMATION SERVICES 

New Group Created to Offer Portfolio of Digital Life Services

Trials Planned in Dallas and Atlanta This Summer

Easy-to-Use Platform Lets Consumers Bring Their Own Broadband

DALLAS, MAY 7, 2012 – Checking on the welfare of loved ones, protecting your home from intruders, fire or water damage,  unlocking a door for the repairman or changing the temperature setting on the thermostat – and doing it from wherever you happen to be, here or abroad  – can be as easy as if you were right at home.

AT&T today announced plans for a new portfolio of all-digital, IP-based home security monitoring and automation services.  Called AT&T Digital LifeTM, the services will give users unparalleled control and security of their homes using any web-enabled device, PCs, tablets and smartphones, regardless of wireless carrier.

AT&T plans to begin trials in Atlanta and Dallas this summer.

Managed by a newly created Digital Life group, the remote monitoring and automation portfolio will feature web-based access to automation, energy and water controls, as well as professionally monitored security services.

“The AT&T Digital Life service has the potential to take home monitoring and home security solutions to another level,” said Larry Hettick, Research Director, Consumer Services, for Current Analysis. “The service promises to be as robust as anything in the marketplace today backed by the trusted AT&T brand. I am particularly impressed with its IP-based wireless platform, plans for a nationwide offering, and a wide range of devices that can be monitored and viewed from any carrier’s wireless or wireline Internet connection. These consumer-friendly capabilities will help grow this industry.”

AT&T Digital Life will feature a robust lineup of connected devices like:

• Cameras
• Window/door sensors
• Smoke, carbon monoxide, motion and glass break sensors
• Door locks
• Thermostats
• Moisture detection
• Appliance power controls

The devices will be wirelessly enabled to connect to the IP-based AT&T Digital Life platform inside the home.

“AT&T Digital Life will change the way people live, work and play — and meets a clear need in the market,” said Kevin Petersen, senior vice president, Digital Life, AT&T Mobility.  “The service is smart, simple and customer centric– freeing homeowners to do the things they want to do without compromising on the things they need to do to care for family and home.”

Unique Digital Life Trial Features

AT&T Digital Life will include numerous unique features and benefits:

• Professional installation of the platform, sensors and other devices
• Integrated, wirelessly enabled platform that combines home security and automation capabilities
• AT&T owned and operated 24/7 security monitoring centers
• A state-of-the-art user interface application, which allows customers to customize a solution based on individual needs, and the ability to manage and control their services from the U.S. or while traveling abroad
• The option to experience and purchase the service in AT&T’s distribution channels, including AT&T company-owned retail stores. The service will also be made available for purchase on att.com when available commercially.
• The ability to add more features and services after the initial installation, hassle free
• The Digital Life platform includes built-in AT&T mobile internet service and will also be capable of
• Wi-Fi, Z-Wave, and wired broadband connections. Trial subscribers can use their own wired broadband solution with the Digital Life system and can access the service and remotely control the products from smartphones, tablets and PCs, regardless of carrier.

“We’re planning a unique suite of services, from start to finish, that will give homeowners control of their property and their possessions through an easy to navigate user interface,” Petersen said.  “Our focus is on providing our customers with a comprehensive home security and automation solution that offers the best possible customer experience, and uses the most advanced mobile internet technology on the market to make their lives easier and keep their families and property safer.”

In February, AT&T announced plans to launch an SDK for international providers to equip global service providers with capabilities to offer customizable, web-based home automation, energy and security services to their subscribers.

For the complete array of AT&T offerings, visit www.att.com/CTIA.  To learn more about Digital Life availability, visit www.att.com/digitallife.

Walmart has evidently dropped its prices on the AT&T iPhone 4 and iPhone 4S in select retail stores, according to Cult Of Mac. Without rhyme or reason, the price of the 8GB iPhone 4 on AT&T has dropped from $88 to $34, and the 16GB iPhone 4S is now being offered for only $114, down from the original list price of $188. The new prices apply to any AT&T customers, whether they are new activations or upgrades. Unfortunately, pricing on Verizon and Sprint iPhone models has not been lowered. Walmart previously reduced the price of the iPhone 4 one month before the iPhone 4S was announced in October, and that was the last major price drop we saw. Reports have surfaced that the next-generation iPhone could be announced in June, though our sources have indicated otherwise.

UPDATE: Walmart confirmed to 9to5Mac that the retail chain “experienced a pricing error in limited stores” yesterday and prices have now returned to their original amounts.

Read [Cult Of Mac] Read [9to5Mac]

Behold the Ghost of Palm Past. Earlier this week, industry watchers got to relive the rise and fall of webOS as Research In Motion gave the world a brief look at a gorgeous new smartphone platform while failing to convince anyone that it can succeed in a market dominated by Apple and Google. RIM’s stock plummeted from a high of $14.62 earlier this week to the $11-range as a result. Then, on Thursday, Samsung took the wraps off its latest flagship smartphone, the Galaxy S III. The impressive smartphone’s design was described as having been inspired by pebbles that had been smoothed be the flow of water in a river. There was once another smartphone with a design inspired by river rocks, but I can’t quite put my finger on it…

To make Samsung’s Galaxy S III announcement even more Palm-like, the South Korean vendor even aired a short promotional video featuring a somewhat creepy woman discussing the new phone. Granted, she didn’t appear to be hallucinating at the time, but the similarities between this promo and Palm’s uncomfortably pale spokeswoman were definitely there.

Of course Samsung certainly is not where Palm was in 2009, and it isn’t where RIM is today. Samsung is the No.1 smartphone vendor in the world, and its mobile business is pushing the company’s profits to new heights.

But despite a big-budget press conference featuring a live orchestra and an Olympic Games sponsorship, the Samsung Galaxy S III wasn’t met with overwhelming enthusiasm, as Samsung had undoubtedly hoped.

The Galaxy S III is an impressive phone. It features a quad-core 1.4GHz Exynos processor, a gigantic 4.8-inch high-definition Super AMOLED display and an ultra-slim case that is among the thinnest in the world. Even still, it’s just not that exciting.

The design looks to be a less impressive take on HTC’s One X, opting for cheap plastic in place of HTC’s unibody polycarbonate case. Samsung’s “S Voice” voice-command feature is a dumbed down version of Siri, and AllShare is all too familiar. Some might say Samsung’s new TouchWiz interface atop Android 4.0 Ice Cream Sandwich can’t match the sleek look and feel of HTC’s Sense 4, and the Galaxy S III’s new camera software is a clear improvement over previous-generation Samsung handsets, but it falls well short of matching HTC’s Image Sense software and the new camera hardware found on its One-series phones.

The biggest winner on Thursday afternoon may very well have been HTC.

Samsung’s new smartphone will launch on nearly 300 carriers in the coming months, and it will be a top seller. Samsung mobile boss JK Shin on Thursday said that the company aims to sell 200 million smartphones in 2012, and the way things are looking right now, this is a very real possibility — Samsung shipped an estimated 44.5 million smartphones in the first quarter, and its new flagship phone won’t even begin rolling out until later this month.

There is another vendor that should be doing everything in its power to make sure Samsung doesn’t meet that goal, however, and that vendor is HTC. HTC had a record run in 2011 that was abruptly halted when Apple launched the iPhone 4S. The Taiwan-based smartphone company has been sliding since then, and its profit plummeted 70% in the first quarter this year.

HTC responded with three smartphones. Three fantastic smartphones that marry cutting edge technology with sleek designs and high quality materials. We’ve seen what a company can do with just three smartphones, but products alone won’t right this ship. HTC might be well-served to take a page from Apple’s book and double, triple or even quadruple down on marketing. No consumer electronics company spends more money marketing its gadgets than Apple, and perhaps not entirely by coincidence, no consumer electronics company in the world makes as much money as Apple.

The HTC One S — one of the most gorgeous smartphones I have ever held — is now available on T-Mobile, a carrier in desperate need of a hit. Or is it? Did the One S even launch? Is T-Mobile selling it? For every HTC One S commercial on TV, I see 20 commercials featuring the T-Mobile girl decked out in leather riding around on a crotch rocket while on-screen text talks up T-Mobile’s 4G network. Maybe it’s because I’m in a small market (New York) and HTC and T-Mobile are hitting larger markets harder with the One S.

And is the One X launching this Sunday on AT&T? I know AT&T sells the iPhone and the carrier is making sure as many people as possible are made aware of Nokia’s Lumia 900 thanks to the Finnish vendor’s deep pockets, but HTC’s One X will hardly be a contender at AT&T — which sells more smartphones than any other carrier in the all-too-important U.S. market — unless HTC puts its money where its mouth is.

Maybe HTC is banking on Sprint’s version of the One X, the HTC EVO 4G LTE, which is an amazing LTE phone with no LTE network to support it and a back cover that might invoke your gag reflex.

There is a window, and it is open. HTC got a head start on Samsung’s Galaxy S III and its One-series smartphones have everything it takes to find success… if wireless subscribers are made aware of their existence more effectively and aggressively.

That window may slam shut this summer when the Galaxy S III launches, and it may have iron bars bolted over it this coming fall when Apple launches its next-generation iPhone. In the meantime, HTC has little time to spare if it hopes to seize this opportunity and become a smartphone leader once again.

Samsung’s new flagship smartphone may launch on all four major U.S. carriers as well as a number of regional carriers beginning this summer. Samsung on Thursday unveiled the Galaxy S III during a press conference in London, and the vendor said its sleek new smartphone will launch on nearly 300 different wireless service providers around the world in the coming months. At the same time, Samsung added a page on its U.S. website that allows users to sign up to receive more information about the Galaxy S III when it becomes available. On the page, a drop-down menu asks users to select their carrier preference, and found within that list are AT&T, C Spire Wireless, MetroPCS, Sprint, T-Mobile, U.S. Cellular and Verizon Wireless. While this is by no means confirmation that the handset will launch on each of the seven carriers listed, it seems unlikely that Samsung would simply list random carriers and omit popular options such as Cricket, which currently offers a Samsung smartphone, and other sizable regional carriers. Samsung’s current flagship phone, the Galaxy S II, is available from all major U.S. carriers with the exception of Verizon Wireless.

[Via TmoNews]

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Apple’s next huge move isn’t into the television or banking industries according to one expert. Instead, Apple will take on carriers like AT&T and Verizon Wireless by becoming a direct mobile service provider. Veteran wireless industry strategist Whitey Bluestein, who has managed strategic deals for the likes of AT&T, Intel, T-Mobile, Verizon, Microsoft, Nokia and Best Buy, says Apple will soon begin to offer wireless service directly to iPhone and iPad users. Apple has the distribution channels, digital content portfolio and customer base to make the move, Bluestein says, and it also has more than 250 million credit cards on file for iTunes users who could be billed directly for wireless service.

“The battleground is set, but Apple will be the first mover,” Bluestein said while speaking at the Informa MVNO Industry Summit in Barcelona. “Google will have to scramble because it lacks retail distribution, experience with subscriber services and the iTunes ecosystem of content. iTunes and the iTunes Store provide Apple with one-click buying and customer care. Google can acquire most of these capabilities, as it has before, but it is not a core competency of the company.”

Bluestein also notes that Apple has patent-pending network architecture, with patents filed in 2006, that will empower its move into the mobile service provider industry. Apple’s biggest barrier thus far has been the large subsidies carriers pay to keep end-user iPhone pricing affordable, however Apple’s huge cash reserves could be used to remove that road block completely.

“What has been holding Apple back from becoming a wireless provider already, according to Bluestein, are the enormous handset subsidies paid by mobile operators (AT&T, VZW and Sprint in the US), which amount to about $381 for each iPhone sold today,” Bluestein noted. ”That has been a short-term stumbling block for Apple, but the company has its well-known cash reserves and could seize the initiative at any point.”

Such a move could help Apple avoid a potential threat from wireless carriers, though Apple CEO Tim Cook said his company is not concerned with the possibility of carrier’s squeezing subsidies.

Following AT&T’s failed attempt to acquire T-Mobile USA from Deutsche Telekom for $39 billion, AT&T had to pay a lofty break-up fee as per the terms of its agreement. AT&T’s related expenses totaled $4 billion, and included in that sum was the transfer of AWS spectrum licenses to T-Mobile in 128 different markets. On Wednesday, T-Mobile announced that the Federal Communications Commission has approved the transfer. ”We applaud the FCC for acting swiftly to approve the transfer of these spectrum licenses,” T-Mobile CTO Neville Ray said in a statement. The nation’s No.4 carrier will use its newly acquired spectrum to help build out its next-generation 4G LTE network, which it hopes to launch next year.

AT&T on Tuesday reported its results for the first quarter of 2012. Following a record holiday quarter that saw the nation’s No.2 carrier pull in $0.42 per share excluding one-time charges on sales of $32.5 billion, analysts were expecting first-quarter EPS of $0.57 on revenue totaling $31.85 billion. The company beat expectations, posting a profit of $0.60 per share on in-line sales of $31.8 billion. AT&T activated 3.6 million iPhones during the first quarter last year, and that number climbed to 4.3 million in the first quarter of 2012, down seasonally from a record 7.6 million during the holiday quarter. Total smartphone sales for the first quarter this year came in at 5.5 million, in line with the 5.5 million smartphones it sold in the first quarter of 2011, though AT&T says that its first-quarter smartphone sales set a new record this year. The carrier added 726,000 net subscribers last quarter as its total subscriber count reached 103.9 million, up from 103.2 million in the December quarter. AT&T’s stock is trading up 0.5% ahead of the bell. The company’s full press release follows below.

Solid Growth in Earnings, Revenues and Margins, and $4.7 Billion Returned to Shareholders Highlight AT&T’s First-Quarter Results

Wireless Margins Expand and Smartphone Sales Set First-Quarter Record; 30 Percent of Smartphone Customers are on 4G-Capable Devices

Dallas, Texas, April 24, 2012

• $0.60 diluted EPS compared to $0.57 diluted EPS in the first quarter of 2011
• Consolidated revenues of $31.8 billion, up $575 million, or 1.8 percent, versus the year-earlier period
• Wireless operating income margin up to 27.2 percent; wireless EBITDA service margin up significantly to 41.6 percent even with strong smartphone sales
• More than $2 billion in stock buybacks; 67.7 million shares repurchased
• AT&T’s growth engines — wireless, wireline data and managed services — represented 78 percent of total revenues and grew 6.2 percent versus the same quarter a year ago, led by:
  • 19.9 percent growth in wireless data revenues, up more than $1 billion versus the year-earlier quarter
  • 19.0 percent growth in strategic business services revenues
  • 38.2 percent growth in consumer U-verse revenues
• Smartphone sales of 5.5 million, exceeding the previous first-quarter record, with about 30 percent of all postpaid smartphone subscribers on 4G-capable devices
• 726,000 total wireless net adds, with gains in every customer category
• Postpaid wireless churn of 1.1 percent, lowest level in seven quarters
• Record first-quarter branded computing (tablets, tethering plans, etc.) net adds of 460,000 to reach a total of 5.8 million, up almost 70 percent versus a year ago
• Postpaid wireless subscriber ARPU (average monthly revenues per subscriber), up 1.7 percent to $64.46
• Wireline business year-over-year revenue comparisons continue to improve
• Wireline consumer revenues up 1.0 percent versus the year-earlier period; seventh consecutive quarter of year-over-year growth
• AT&T U-verse^® subscribers (TV and high speed Internet) top 6 million; U-verse TV subscribers reach 4 million in service

Note: AT&T’s first-quarter earnings conference call will be broadcast live via the Internet at 10 a.m. ET on Tuesday, April 24, 2012, at www.att.com/investor.relations.

Consolidated Statements of Income
Statements of Segment Income
Consolidated Balance Sheets
Consolidated Statements of Cash Flows
Supplementary Operating and Financial Data
Reconciliation of EBITDA
Reconciliation of Free Cash Flow
Net-Debt-to-EBITDA Ratio
Non-GAAP Discussions

AT&T Inc. (NYSE:T) today reported first-quarter results highlighted by strong 4G mobile data sales and wireless margins, and solid revenue and earnings growth. “We continue to capitalize on our terrific momentum in mobile Internet,” said Randall Stephenson, AT&T chairman and chief executive officer. “Smartphone and branded computing device sales continue to set a record pace, mobile data revenues were up nearly 20 percent, and we achieved this growth with expanding margins. These results add confidence in our outlook for the year.”

First-Quarter Financial Results
For the quarter ended March 31, 2012, AT&T’s consolidated revenues totaled $31.8 billion, up $575 million, or 1.8 percent, versus the year-earlier quarter.

Compared with results for the first quarter of 2011, operating expenses were $25.7 billion versus $25.4 billion; operating income was $6.1 billion, up from $5.8 billion; and operating income margin was 19.2 percent, compared to 18.6 percent.

First-quarter 2012 net income attributable to AT&T totaled $3.6 billion, or $0.60 per diluted share, up from $3.4 billion, or $0.57 per diluted share, in the year-earlier quarter.

First-quarter 2012 cash from operating activities totaled $7.8 billion, and capital expenditures totaled $4.3 billion. Free cash flow — cash from operating activities minus capital expenditures — totaled $3.5 billion. During the first quarter, AT&T began repurchasing shares under its outstanding 300 million share buyback authorization. The company repurchased 67.7 million of its shares for $2.1 billion in the quarter.

WIRELESS OPERATIONAL HIGHLIGHTS
Led by mobile data growth in the first quarter, AT&T delivered strong smartphone and branded computing device sales with solid data revenue growth, lower postpaid churn and expanding margins. Highlights included:

Wireless Data Revenues Increase $1 Billion. Total wireless revenues, which include equipment sales, were up 5.4 percent year over year to $16.1 billion. Wireless service revenues increased 4.3 percent, to $14.6 billion, in the first quarter. Wireless data revenues — driven by Internet access, access to applications, messaging and related services — increased by more than $1 billion, or 19.9 percent, from the year-earlier quarter to $6.1 billion. First-quarter wireless operating expenses totaled $11.7 billion, up 3.4 percent versus the year-earlier quarter, and wireless operating income was $4.4 billion, up 11.3 percent year over year.

Wireless Margins Expand Even With Strong Smartphone Sales. First-quarter wireless margins grew significantly, driven by improved operating efficiencies and further revenue gains from the company’s 41 million high-quality smartphone subscribers. AT&T’s first-quarter wireless operating income margin was 27.2 percent versus 25.8 percent in the year-earlier quarter, and AT&T’s wireless EBITDA service margin was 41.6 percent, compared with 39.0 percent in the first quarter of 2011.(EBITDA service margin is operating income before depreciation and amortization, divided by total service revenues.)

Subscriber Gains in Every Category. AT&T posted a net increase in total wireless subscribers of 726,000 in the first quarter to reach 103.9 million in service. This included gains in every customer category. Subscriber additions for the quarter include postpaid net adds of 187,000. Prepaid net adds were 125,000, connected device net adds were 230,000 and reseller net adds were 184,000. First-quarter net adds reflect continued adoption of smartphones and sales of tablets.

Smartphone Sales Exceed First-Quarter Record. AT&T sold 5.5 million smartphones, exceeding a first-quarter sales record set last year. Smartphones represented more than 78 percent of postpaid device sales. At the end of the quarter, 59.3 percent, or 41.2 million, of AT&T’s postpaid subscribers had smartphones, up from 46.2 percent and 31.5 million a year earlier. AT&T’s ARPU for smartphones is 90 percent higher than for non-smartphone subscribers. About 88 percent of smartphone subscribers are on FamilyTalk^® or business plans. Churn levels for these subscribers are significantly lower than for other postpaid subscribers. About 30 percent of AT&T’s postpaid smartphone customers use a 4G-capable device.

Both Android and iPhone device sales remain strong. iPhone sales were helped by AT&T’s 4G network, which lets iPhone 4S download three-times faster than other U.S. carriers’ networks. In the quarter, the company activated 4.3 million iPhones, with 21 percent new to AT&T.

Strong Branded Computing Sales. AT&T had its best-ever first-quarter sales for branded computing subscribers, a new wireless data revenue growth area for the company that includes tablets, tethering plans, aircards, mobile Wi-Fi hot spots and other data-only devices. AT&T added 460,000 of these devices to reach 5.8 million, up almost 70 percent in total subscribers from a year ago. During the quarter, 240,000 tablets were added, about three-quarters of which were postpaid.

61 Percent of Smartphone Subscribers on Tiered Data Plans. The number of subscribers on tiered data plans also continues to increase. About 25 million, or 61 percent, of all smartphone subscribers are on tiered data plans compared to 38 percent a year ago, and more than 70 percent have chosen the higher-tiered plans. AT&T’s postpaid wireless subscribers on data plans increased by 15.1 percent over the past year.

Industry-Leading Postpaid ARPU Continues Growth. Postpaid subscriber ARPU increased 1.7 percent versus the year-earlier quarter to $64.46. AT&T continues to lead the industry with postpaid subscriber ARPU. This marked the 13th consecutive quarter AT&T has posted a year-over-year increase in postpaid ARPU. Postpaid data ARPU reached $26.92, up 15.3 percent versus the year-earlier quarter.

Postpaid Churn Improves. Postpaid churn reached its lowest level in seven quarters. For the first quarter, postpaid churn was 1.10 percent, compared to 1.18 percent in the year-ago first quarter and 1.21 percent in the fourth quarter of 2011. Total churn was up, at 1.47 percent versus 1.36 percent in the first quarter of 2011 and 1.39 percent in the fourth quarter of 2011, due to higher reseller and connected device churn.

WIRELINE OPERATIONAL HIGHLIGHTS
AT&T’s first-quarter wireline results were led by continued improving trends in business and strong growth in U-verse revenues. Highlights included:

Wireline Operating Income Improves. AT&T’s wireline operating income totaled $1.8 billion, 2.4 percent higher than the first quarter of 2011 and down 1.2 percent versus the fourth quarter of 2011. First-quarter wireline operating income margin was 12.2 percent, compared to 11.8 percent in the year-earlier quarter. Total first-quarter wireline revenues were $14.9 billion, down 0.8 percent versus the year-earlier quarter and down slightly sequentially. First-quarter wireline operating expenses were $13.1 billion, down 1.2 percent versus the first quarter of 2011 and down slightly sequentially. Improved consumer and business strategic services revenue trends and execution of cost initiatives helped to partially offset declines in voice revenues.

Business Revenues Continue Improving Trends. Business revenues had their best year-over-year comparison in the last three years. Total business revenues were $9.2 billion, down 0.8 percent versus the year-earlier quarter. Business service revenues declined 0.3 percent year over year, compared to a year-over-year decline of 4.4 percent in the year-ago quarter, and were essentially flat sequentially. Declines in legacy products were largely offset by continued strong growth in strategic business services.

Business Data Revenue Growth Accelerates. Revenues from strategic business services, the new-generation capabilities that lead AT&T’s most advanced business solutions — including Ethernet, VPNs, hosting, IP conferencing and application services — grew 19.0 percent versus the year-earlier quarter, continuing strong trends in this area. This now represents a $6.2 billion annualized revenue stream. Total business data revenue growth accelerated to 4.2 percent year over year, the strongest showing in four years.

U-verse Drives Consumer Revenue Growth. Continued strong growth in consumer IP data services in the first quarter offset lower revenues from voice and legacy products. Driven by strength in IP data services, revenues from residential customers totaled $5.4 billion, an increase of 1.0 percent versus the first quarter a year ago. The first quarter marked the seventh consecutive quarter of year-over-year growth in wireline consumer revenues. U-verse continues to drive a transformation in wireline consumer, reflected by the fact that consumer broadband, video and voice over IP revenues now represent 55 percent of wireline consumer revenues, up from 47 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 17.5 percent year-over-year growth in IP revenues from residential customers (broadband, U-verse TV and U-verse Voice) and 3.8 percent sequential quarterly growth. Consumer U-verse revenues grew 38.2 percent compared with the year-ago first quarter and were up 8.5 percent versus the fourth quarter of 2011.

U-verse Tops 6 Million Subscriber Mark. Total AT&T U-verse subscribers (TV and High Speed Internet) reached 6.2 million in the first quarter. AT&T U-verse TV added 200,000 subscribers to reach 4.0 million in service. In the first quarter, the AT&T U-verse High Speed Internet attach rate was more than 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 $169, up slightly year over year. Penetration of eligible living units continues to grow and was at 16.8 percent in the first quarter, and 27.1 percent across areas marketed to for 42 months or more. AT&T U-verse High Speed Internet delivered a first-quarter net gain of 718,000 subscribers to reach a total of 5.9 million, more than offsetting losses from DSL. Overall, AT&T added 103,000 wireline broadband connections. About 45 percent of consumers have a broadband plan delivering speeds up to 6 Mbps or higher versus 35 percent in the year-ago quarter.

HTC’s flagship One X smartphone is now available for pre-order from AT&T for $199.99 on contract. The handset finds itself at the top of HTC’s new lineup of One-series smartphones, which the Taiwan-based vendor hopes will help it turn its sliding smartphone business around. The flagship smartphone features a dual-core 1.5GHz Qualcomm Snapdragon processor, a 4.6-inch 720p HD display, an 8-megapixel rear camera, a 1.3-megapixel front-facing camera, 16GB of internal storage, 1GB of RAM and Sense 4 on top of Android 4.0 Ice Cream Sandwich. The HTC One X is available from AT&T in either gray or white, and it will launch on May 6th, three days after Samsung unveils its next-generation Galaxy S III smartphone.

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