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AT&T faces dropped landlines

Posted Jul 23 2008, 12:42 PM by Kim Peterson
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People are ditching landlines faster than expected, analysts tell the New York Times. But AT&T gets about a third of its revenue from the landline business. Uh oh.

It's a problem that all the big telcos face right now, as people get so reliant on cell phones they find no need for a traditional landline phone. That leaves investors feeling "slightly queasy" about the telecom sector these days, according to a Sanford Bernstein analyst. 

In its earnings report today, AT&T said its landline count dropped 2.6% in the last three months to 58.9 million -- a surprisingly fast decline. So why are AT&T shares up 5% to $33.45 today? Mainly because people are happy the company didn't do worse.

AT&T matched analyst estimates on profit but whiffed on revenue. The company's profit was 63 cents a share in the second quarter, up 30% from a year ago. Revenue increased 4.7% to $30.9 billion, but analysts had been looking for $31.1 billion.

Experts say that in hard economic times, people will drop their landline before their cell phone. But that doesn't mean that wireless carriers are immune. Companies like Verizon are seeing slower growth as well.

There are about 262 million wireless users in the U.S., and 163 million landlines (and that includes the business landlines, too).

Related reading:

Teens and cell phones: a saturated market

Verizon to become largest wireless carrier

Unhappy with Sprint? You're not alone

Cable companies eyeing nationwide wireless network

Would you pay $100 a month for wireless?

Comments

 

you dont have to have a landline for dsl its right on their website dsl without a landline

I used a phone from AT&T for almost thirty years and they did made a bundle of money from me, they overcharged for the phone but specially overcharged for overseas calls, it was never any less than $50.00 for 20 minutes or less on the line, but you had no other choice.  I dropped them as soon as a new company offered phone service.  They are so greedy!

att sucks at business with their costomers. our bill normally ran about 220.00 a month then i got laid off so started cutting our bills back and we shut off our long distance at&t was supposed to put a block on the long distance but did not put a block on it the kids kept callin on the long distance (and when you shut off the long distance and u call with out plan they charge u mre money) and we had to pay a whopping 144.00 cause at&t can not do their job then top i toff our total bill that month including wireless was 280.00 we sent a payment in for 278.00 but it got sent to the wireless department and they put it on our bill then held the remaining balance as credit in the mean time we are still oweing the landline 144.00 but their policy they can not and will not transfer the money to landline to pay our bill they have threatened to send us to collection agency and threatened to shut us off that is crap rite  there you pay yer bill they should pay both sides their reason for not sending it was wireless and landline are two different departments duh then why do they  offer unity plan if they can  not work together with the other departments i always thought costomer needs comes first definitly not their stupid policys like this does so i advise thinking again before do business with these guys it ain't right they screw you again again i am definely looking into plans i am very dissatisflied with their business unless they start changing some policies i might just might stay the unity plan is a great plan it does save u money but it the departments can not work together then it won't work

What you don't hear about is the number of VOIP lines being installed as part of the Uverse product or naked DSL, DSL without without an associated POTS line being installed. Ask AT&T what those numbers are.

The time will come when the security of a land line phone will cost big bucks.

Everything we say on a cell phone can be heard. unless your land line is physically tapped.

line share dsl is internet with phone line. if you just want the internet all alone its called a dry loop. call them and say i have a referal code #dc9165 and you want to order a dry loop to your home.

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