NEW YORK-Propelled by its Digital One Rate plan, AT&T Corp. said total revenue from wireless services increased 19.4 percent for the third quarter compared with last year.
AT&T Corp.’s third-quarter earnings were $1 per share on a diluted basis. Earnings increased 67 percent on the strength of continuing improvement in AT&T’s cost structure as well as accelerating revenue growth. AT&T posted net income for the quarter of $2 million, compared with $1.16 million in 1997.
Revenue increased 4.3 percent to $13.7 million from $13 million for the third quarter 1997. The increase was led by growth in data, wireless and local services, said AT&T.
The company said interest in the One Rate plan, which is targeted at high-end users and eliminates roaming and long-distance charges, helped generate 325,000 new customers during the third quarter, a 73.7-percent increase from the third quarter 1997.
AT&T said it has added more than 500,000 customers to the Digital One Rate plan since it launched the service in May. The company said it continues to add about 100,000 One Rate customers per month.
Digital One Rate is partially responsible for the company’s higher revenue per user and minutes of use per subscriber, said AT&T. In its 850 MHz markets, average revenue per user increased to $58 in the third quarter from $57.50, the first time ARPU has increased in two successive quarters. MOU per subscriber increased 36 percent-compared with third quarter 1997-within the company’s 850 MHz markets.
