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AT&T Beats Subscriber Forecasts as iPhone Deals and Bundled Plans Boost Growth

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AT&T added more new wireless customers than expected in the third quarter, lifted by bundled service discounts and aggressive iPhone 17 promotions that helped it compete in a crowded U.S. telecom market. However, the company’s shares fell about 2% on Wednesday after slightly missing revenue estimates due to weaker equipment sales.

The September quarter is a key period for wireless carriers, coinciding with Apple’s annual iPhone release, when firms battle fiercely to win subscribers. AT&T rolled out generous trade-in offers and upgrade incentives to draw new users and push existing ones toward higher-tier plans.

The company reported 405,000 new postpaid wireless subscribers, surpassing FactSet’s estimate of 334,100, while equipment revenue from its mobility division rose 6.1% to $4.79 billion, slightly below Visible Alpha’s forecast of $4.93 billion. Operating costs climbed 3.8%, driven by pricier phones and heavier marketing expenses.

Analysts said the fourth quarter could see an even sharper rise in customer upgrades during the holiday season, pressuring profit margins. MoffettNathanson noted that “a normalization of upgrade rates” could increase churn and reduce average revenue per user (ARPU).

To retain customers, AT&T has leaned on its bundled fiber and wireless offerings, offering discounts to multi-service subscribers. The strategy is paying off: over 41% of AT&T’s fiber broadband customers now also use its mobile service, and broadband net additions of 558,000 marked the company’s best performance in over eight years.

Still, revenue from AT&T’s business wireline unit fell 7.8%, reflecting ongoing declines in legacy voice and data products.

On an adjusted basis, the company earned $0.54 per share, matching analyst expectations. Total revenue came in at $30.7 billion, just shy of the $30.87 billion forecast.

While the results highlight AT&T’s subscriber momentum, analysts warn that the coming upgrade surge could test the sustainability of its current growth strategy.

Comcast to cut jobs, streamline Xfinity unit in major reorganization

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Comcast is preparing to cut jobs at its largest business unit, which includes the Xfinity internet, mobile, and pay-TV services, as part of a restructuring to centralize operations and strengthen its broadband business, a source told Reuters.

Beginning in January, Comcast will eliminate a layer of management between its regional offices and corporate headquarters, meaning regional leaders will now report directly to a newly appointed executive overseeing national operations. While the company has not disclosed the number of roles affected, the restructuring is expected to reduce headcount.

In a memo to employees, Comcast said customer-facing teams, such as those in retail and customer service, will not be impacted. “This change is not a reflection of anyone’s contributions — it is about simplifying how we work so we can compete more effectively,” the memo stated.

The move continues Comcast’s long-term strategy of centralizing functions including marketing, legal, and finance. It has also standardized broadband pricing nationally and introduced new five-year price-lock plans to stem customer churn.

The cuts come as Comcast grapples with subscriber losses in its broadband business, facing mounting competition from wireless carriers such as AT&T, T-Mobile, and Verizon. The unit also oversees Sky, Comcast’s European brand, and remains central to the company’s connectivity strategy.

Trump Organization Launches ‘Trump Mobile’ Smartphone and Wireless Service

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The Trump Organization has unveiled a new mobile venture called Trump Mobile, featuring a $499 smartphone and a wireless service tailored to appeal to conservative consumers. Launched Monday, the service emphasizes Made-in-America hardware and U.S.-based customer support, and is positioned as a political and economic alternative to traditional telecom providers.

This move expands the Trump brand’s footprint beyond real estate and hospitality into the telecom industry, following earlier ventures into digital media, cryptocurrency, and the Truth Social platform.

However, analysts and experts have raised significant concerns over the regulatory implications and market dynamics of such a launch—particularly with a sitting U.S. president directly connected to a regulated commercial offering.

Industry Concerns and Analyst Reactions:

  • Barclays Equity Research called the venture “unprecedented,” highlighting a lack of clarity on which MVNO (mobile virtual network operator) agreement is supporting the Trump Mobile network. The report noted this could put telecom providers like Verizon (VZ) and AT&T in a politically sensitive position, especially amid ongoing deal reviews.

  • Gil Luria of D.A. Davidson viewed the move as another attempt to capitalize on Trump’s popularity, citing parallels with other Trump-branded ventures.

  • Harvard Law Professor Lawrence Lessig argued this further proves Trump sees the presidency as a tool for personal financial gain, echoing wider concerns about conflicts of interest.

  • Paolo Pescatore, telecom analyst at PP Foresight, warned the lack of clarity on backend partnerships and commercial terms will invite scrutiny. “The devil is in the detail,” he said.

  • Zacks Investment’s Brian Mulberry noted that the price point of the Trump Mobile device could apply competitive pressure on Apple and Samsung, offering comparable utility at a much lower price. “Competition is good for consumers,” he added.

  • Still, David Wagner of Aptus Capital Advisors remained skeptical about its long-term impact, citing industry “stickiness” and political polarization as hurdles to scale.

As of now, no major telecom provider has publicly acknowledged an agreement with Trump Mobile. The Trump Organization claims the service is intended to protect “freedom of communication” for its consumer base, but many are watching closely to see how the regulatory and commercial aspects unfold.