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More on the Progress of AT&T’s U-verse

To continue with yesterday’s AT&T theme, here’s a look at some of the updates that came out of the company’s second quarter earnings announcement a few weeks back. AT&T had a phenomenal quarter, and U-verse VP Jeff Weber shared some of the reasons why this week in an interview this week with FierceIPTV’s Jim O’Neil.

First, to cover the numbers, AT&T gained 209,000 new subscribers in Q2 and brought in more than $1 billion in revenue from U-verse services. That’s less than a quarter of what AT&T made from its wireless services, but it’s far from insignificant. The $1 billion mark is also a record for U-verse revenues, and the outlook for Q3 is positive.

In his interview with FierceIPTV, Weber added further color to the story of AT&T’s U-verse success. Most impressively, he shared that U-verse subscribers who buy TV services also buy broadband service at least 95 percent of the time. That has to be huge for ARPU numbers, particularly when 70% of the time those subscribers also sign up for voice services.

As to why U-verse TV is proving increasingly popular, Weber pointed to AT&T’s IPTV platform and the types of services it’s using IP to deliver. Not that operators have to use IP to support similar features, but it has certain advantages (like easier interoperability) that cable operators have also shown an interest in. Meanwhile, AT&T seems to be hitting its stride, using IP to differentiate itself in the form of new features and service offerings. Multiview is one example. Mobilizing DVR content is another. In his own words, here’s how Weber explains it:

The key to all this success is driving the differentiation; a much better, simpler, integrated experience… So, it’s continuing to roll out more and more applications, and driving that integration, bringing wireless and TV together in a much more meaningful way as we go forward…

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