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AT&T’s Strategy to Regain Postpaid Phone Subscribers

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AT&T’s postpaid phone net additions in the fourth quarter

In the intensely competitive telecommunications market, postpaid phone customer net additions are a closely watched metric that can be used to evaluate a company’s competitive strength. How is AT&T (T) performing in terms of postpaid phone customer net additions?

In the fourth quarter, AT&T reported 13,000 postpaid customer net additions compared to 558,000 net additions in the fourth quarter of 2017. However, the telecommunications company added 134,000 postpaid phone net customers in the fourth quarter due to disciplined promotional activities and bundling opportunities.

On average, Wall Street analysts had expected AT&T to gain 208,000 postpaid phone net customers in the fourth quarter. Meanwhile, the company had gained 295,000 postpaid phone net customers in the fourth quarter of 2017 and 69,000 net customers in the third quarter of 2018.

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Peer comparison

In comparison, Verizon (VZ) added 653,000 postpaid phone net customers in the quarter that ended on December 31, while Sprint (S) posted a loss of 26,000 postpaid phone net customers in the comparable period. T-Mobile (TMUS) reported 1 million postpaid phone customer net additions in the quarter.

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