REDMOND, Wash.-AT&T Wireless Services Inc. became the first nationwide wireless operator to officially report an increase in its customer base during the third quarter of this year following negative net customer additions from Sprint PCS and Cingular Wireless.
The Redmond, Wash.-based operator said it added 201,000 customers during the quarter and ended the three months with 20.2 million total customers not including its affiliates. Analysts were expecting AT&T Wireless to add between 50,000 and 300,000 customers during the quarter.
Customer churn decreased from 3.1 percent during the third quarter of 2001 to 2.9 percent this year, but was up from the 2.4 percent AT&T Wireless posted during the second quarter. The carrier attributed to WorldCom Wireless Inc. customer deactivations. Average revenue for the quarter increased from $60.40 during the second quarter to $61.60 in the third quarter.
Total revenues jumped more than 16 percent from $3.5 billion during the third quarter last year to $4.1 billion this year. Net income also fell from a $77 million profit last year, a return of three cents per share to a loss of $2 billion, or a loss of 76 cents per share. AT&T Wireless attributed the drastic swing to changes in its reporting of goodwill and other intangible assets including wireless licenses with indefinite useful lives that increased its operating expenses for the quarter from $3.4 billion last year to $5 billion this year.
