If the advent of Apple's iPhone is any indication, the proliferation of easy-to-use smart phones and tablet computers is driving a host of new bandwidth-hungry data and multimedia services. The rise in bandwidth-hungry traffic that users are accessing from their phones means that wireless operators require a higher speed wireless backhaul network.
AT&T, battling to keep regulators from restricting its access to spectrum in the upcoming auction of TV broadcast spectrum, said spectrum set-asides proposed by T-Mobile US would curtail auction proceeds earmarked for public-safety communications and thus deprive first responders of the modern communications tools they need.
AT&T said at its annual meeting on Thursday that it is seeing strong growth from its U-verse products in the second quarter.
The National Security Agency's phone and data collection effort targeting Verizon also included AT&T and Sprint, according to various reports, as part of a seven-year-old program to collect telephone "meta data" such as the number called, the time of the call and the length of the conversation.
The National Security Agency is working with Verizon Communications, AT&T and Sprint Nextel to collect data about U.S. citizens' telephone calls, according to multiple reports. However, government officials and lawmakers say the program is lawful and is reviewed by Congress and the courts.
AT&T said before holding a meeting with financial analysts this week that it was seeing stronger U-verse broadband and TV subscriber in the second quarter over Q2 2012, but would not provide specific numbers.
AT&T said it expects to add around 500,000 postpaid wireless subscribers during the second quarter, a marked sequential and year-over-year improvement in that metric, but also added that promotions and smartphone sales will dent its margins.
Verizon Business has been forced to give its daily call detail records to the U.S National Security Agency, in an order issued shortly after the bombing at the Boston Marathon in April.
AT&T has reduced its stake in Mexico-based America Movil by 7.5 percent, raising $564 million by selling 540 million shares after the company launched a share buyback program.
Two weeks ago, Verizon announced it would be replacing damaged and destroyed copper voice lines on some of the barrier islands off Long Island, N.Y., and in New Jersey with its recently developed Voice Link service. With deployment of this wireless-based alternative to traditional voice service beginning this month in other rural regions, Verizon's solution sets a troubling precedent for incumbents migrating off of legacy wireline networks.