Record Subscriber Growth For Cingular Wireless

  AT&T's Cingular Wireless reported today a net income of $782 million for the fourth quarter of 2006, which is a year-over-year increase of over 283 percent. Revenue was up about 10 percent to $9.76 billion from $8.85 billion.

   Executives said during an analyst call that service revenue would grow in the low double-digit percentage range in 2007.

  "Our last quarter as a joint venture operating under the Cingular name was our best ever on a variety of fronts," said Stan Sigman, the company's president and CEO. "We achieved strong results by delivering on four strategic initiatives — build the best network, offer great products and services, create unmatched distribution, and improve customer service. Backed by the scale, scope, and capabilities of AT&T, we will continue to focus on these initiatives and offer our customers the flexibility and freedom of wireless services."

  In the fourth quarter, the wireless unit reported 2.4 million net customer additions, its highest ever, driven by continued low churn and strong gross customer additions. This compares to 1.8 million in the year-ago quarter and to 1.4 million in the third quarter of 2006. In the fourth quarter, retail customers accounted for more than 1.6 million of total net adds, a company record.

  Postpaid churn was 1.5 percent, which compares to 1.9 percent in the year-ago quarter and is flat compared to the third quarter of 2006.

  Overall monthly subscriber churn was 1.8 percent, which compares to 2.1 percent in the year-ago quarter and was flat compared to the third quarter of 2006.

  Gross additions for the fourth quarter were a record-tying 5.5 million, which compares to 5.1 million in the year-ago quarter and to 4.6 million in the third quarter of 2006.

  For the year, the company's net income was $2.5 billion, compared to $333 million in 2005.

  Shares of AT&T, the largest U.S. phone company, gained as much as $1.50 to $36.86 in New York Stock Exchange composite trading. They rose $1.31, or 3.7 percent, to $36.67 at 12:25 p.m.

Source : AT&T