Monday, August 6, 2012

AT&T Plans to Deactivate 2G by 2017, Refarm Spectrum

AT&T plans to discontinue service on its 2G networks by approximately January 1, 2017. In an SEC filing, AT&T said the plan woud help address the spectrum crunch it sees in the years ahead, presumably as the 2G spectrum could be reused.

As of June 30, 2012, approximately 12 percent of AT&T's postpaid customers were using 2G handsets.

Some other notes:

As of June 30, 2012, AT&T served 105.2 million wireless subscribers, an increase of 6.7%.

Going forward, AT&T sees a declining rate of growth in the industry's subscriber base compared to prior years. The company reported a 6.2% decrease in gross subscriber additions (gross additions) in the second quarter and an 8.6% decrease for the first six months of 2012, primarily related to a slower rate of postpaid and connected device additions.

61.9% of the postpaid subscriber base uses smartphones, up from 49.9% a year earlier.

Average service revenue per user (ARPU) from postpaid subscribers increased 1.7% in the second quarter and for the first six months of 2012, driven by an increase in postpaid data services ARPU of 14.1% in the second quarter and 14.7% for the first six months, reflecting greater use of smartphones and data-centric devices.

About 88% of postpaid smartphone subscribers are on FamilyTalk Plans (family plans) or business discount plans, which provide for service on multiple handsets at discounted rates, and such subscribers tend to have higher retention and lower churn rates.

As of the end of Q2, AT&T had 242,380 employees, down from 258,870 a year earlier. 03-Aug-12

See also