AT&T Profit Dips But Wireless Results Strong

PETER SVENSSON

NEW YORK (AP) — AT&T Inc.'s net income dipped as revenue from traditional landlines fell faster than the company could cut costs. But AT&T pleased investors Thursday by showing that it is thriving in the wireless business, adding a record number of data-hungry iPhones to its network.

AT&T, the country's largest telecommunications provider, said it added 2 million wireless subscribers in the third quarter, matching the pace of a year ago despite a general slowdown in industry growth because most people already have a cell phone.

Analysts had expected AT&T to add about 1.5 million wireless subscribers. The fact that it blew past these expectations bodes poorly for the other major wireless carriers, because any gains for one carrier is likely to come at the expense of others.

"I am confident that's well ahead of our peers," said Ralph de la Vega, the head of AT&T's consumer business.

AT&T is the first major telecommunications company to report for the quarter. Rival Verizon Communications Inc. reveals its results Monday.

Shares of AT&T, which is based in Dallas, were up 55 cents, or 2.1 percent, to $26.49 in midday trading.