AT&T announced their financials for Q2 and I'm not impressed. For the AT&T Consumer section, revenue was $1.6 billion, a decline of 20.8 percent versus the prior-year second quarter. According to AT&T, this was "largely driven by a decline in standalone long distance revenue due to volume declines associated with competitive customer losses and the continued impact of wireless and Internet substitution, partially offset by targeted price increases. Decreased bundled revenue also contributed to the revenue decline."
AT&T, let me ask you something... Can you say Vonage? Can you say Skype? Can you say Optimum Voice? How bout Comcast Voice? And what the heck is "Internet substitution"? Can't you just say VoIP? I'm going to have to start using that phrase instead of VoIP. I've got Internet subsititution in my house for phone service.
Of course, we can't give VoIP, err I mean Internet substitution all the credit. I'm sure cellphones had something to do with AT&T's declining revenue numbers as well.
There is some positive news. According to their AT&T Second Quarter Financials Highlights section, "IP&E-services revenue grew 9.5 percent over the prior-year second
quarter, reflecting AT&T's ongoing transformation to next-generation networking services such as Enhanced Virtual Private Network (E-VPN) and IP-enabled frame relay services, partially offset by declines in Managed Internet Access."
Obviously, AT&T's IP services are going to experience some growth - just about any major backbone data provider is experiencing some growth due to data demand.
But, what I'd like to see is AT&T have some good revenue numbers for enhances services such as Triple Play or even VoIP. And speaking of VoIP, I can't find AT&T CallVantage subscribers numbers anywhere in the AT&T financial statement. I could have sworn past financial disclosures did list them. Maybe I'm not looking hard enough or maybe AT&T is too embarrassed to publish them? Who knows?
All I know is this revenue graph I created of just AT&T's Consumer Voice division is not looking pretty...
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