AT&T Diversifying Service Portfolio

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4Q 2013 | IN-1017971


AT&T U-Verse on a Roll


With AT&T’s project Velocity IP, there was a commitment to expand the reach of the U-Verse network, bringing new homes passed into the broadband and IPTV footprint of U-Verse. This project, unveiled in late 2012, has now added 2.5 million broadband homes (and a bit less than half of that in terms of video homes) to its footprint. U-Verse now serves over 10 million households (with 9.3 million broadband and a bit shy of 5.5 million video subscribers). AT&T’s broadband subscribers stand quite a bit higher, with another 7 million legacy broadband customers existing. In addition to the addition of new homes passed, bringing in another 7 million TV homes passed by 2015, penetration of U-Verse TV within homes passed today is approaching 21%. Over the long term ABI Research generally expects that number to trend north of 30%, showing good room for growth. This “rule of thumb” is based on 90% of pay TV households, which is reasonable, e...

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