SBC Communications, the US's 2nd largest telco produced better than expected 3rd quarter results yesterday.
They, like many other traditional fixed line operators are now finally benefiting from the higher growth broadband and mobile businesses which are off-setting the erosion of their traditional fixed line voice business.
SBC added 528,000 DSL lines in the period, which is its largest quarterly increase ans DSL revenues grew 23%. This was helped by SBC's aggressive pricing strategy.
In its traditional local phone line business the company ended the quarter with 50.2M access lines, a 5.1% decrease from a year earlier, driven also by a loss of 643,000 wholesale lines.
Including its 60% share of revenue from Cingluar SBC's revenues totalled $15.57bn an increase of 21% over the year earlier period. SBC expects to cut its workforce by around 10,000 this year. Net income was $1.25bn.
At the beginning of next year SBC takes on the cable guys with their new advanced fibre-optic network that will enable it to offer its customers IPTV (internet protocol TV) and video services.
The Morning After: Friday, August 18th 2017
47 minutes ago