AT&T Posts Significant Growth With 39% Hike In Profits

Telecom major AT&T has posted a significant profit growth in its first quarter results of 2011 with the company notching up a 39 percent hike in profits over the same period last year.

The robust financial figures posted by the company are based on the growth achieved by its mobile business in spite of the loss of exclusive rights it held for Apple iPhone service on its network.

Even after Verizon Wireless started rolling out its Apple iPhone service, AT&T has still managed to increase the number of iPhone connections it has added to its network with the figure standing at an impressive 3.6 million phone connections for the first quarter of 2011.

In order to sustain and improve its revenue growth, the company introduced innovative data plans for Smartphones and tablets. The company has also tried to retain its existing iPhone customers by engaging them in long term contracts and significantly raising the early termination charges.

The company incidentally has posted strong figures across most different verticals. Revenue growth for wireless business grew by over 10.2 percent whereas growth figures for mobile data revenues grew by over 23 percent. However the company experienced a decline in its fixed line business which went down by 3.2 percent.