Partners looking for recurring revenue have another big reason to consider AT&T as the carrier seems to be improving its ability to hang onto wireless customers. AT&T touted its "tremendous" success in stemming customer defections during the carrier's Q2 2017 earnings call.
According to AT&T, postpaid wireless customer churn was 0.79 percent during Q2 2017, the lowest in the company's history.
The carrier's "best ever" rate of postpaid wireless churn included 2.8 million net adds during Q2 2017. According to AT&T, 2.3 million adds came from the U.S. and were driven by connected devices and prepaid and postpaid adds. The growth in the wireless segment blew past Wall Street's expectations of 1.08 million net adds.
AT&T in June revealed an unlimited wireless plan bundled with its internet streaming service DirecTV for an additional $10 a month. It's bundles like this that are helping the carrier attract new – and hold onto – existing customers in the "the most competitive environment we've ever seen," John Stephens, AT&T's senior executive vice president and CFO said.
"Our focus was on giving customers a great video entertainment experience, bundled with mobility," Stephens said. "Our results speak for themselves."
AT&T also netted 2.7 million wireless adds during the first quarter of the year, which the carrier said primarily came from prepaid users and connected devices.
AT&T's Business Solutions revenues continued its modest decline this year, slumping from $17.58 billion in Q2 2016 to $17.11 billion in Q2 2017, succumbing to the pressure of legacy wireline losses.
Partner Solutions revenues also declined slightly during Q2 2017, which ended June 30, from $1.52 billion in Q2 2016, down to $1.49 billion during Q2 2017.
However, the carrier's strategic services revenues, which include Ethernet, cloud, VoIP and security services, climbed from $2.81 billion in Q2 2016 to $3.03 billion during Q2 2017.
Business wireless revenues were down slightly year over year to $9.73 billion in the quarter from $9.74 billion a year ago, feeling the pinch of lower wireless equipment revenues, Stephens said.