AT&T Wireless Reports Strong Subscriber Growth

AT&T Wireless Group Tuesday reported stronger than expected subscriber
growth for its first quarter, which in turn fueled a revenue increase of
46.2 percent to $3.2 billion.

The company said net subscriber additions to its mobility business were
585,000, a rise of 40 percent from the same quarter a year ago. That brings
the company’s number of total consolidated subscribers to 15.7 million. That
represents a 57.7 percent increase over the previous year, including
subscribers brought in through acquisitions that took place after first
quarter 2000.

When partnerships and affiliates are added into the mix, the new subscribers
totaled 870,000, bringing the total to 17.9 million.

For the year, the company expects consolidated subscriber growth to be about
20 percent, with second quarter 2001 net subscriber additions expected to
grow in the mid- to high 20 percent range.

However, that upside is slightly offset by a decline in average revenue per
user (ARPU) of 7.4 percent to $62.20.

“AT&T Wireless has delivered another strong quarter of growth,” said AT&T
Wireless Group Chairman and Chief Executive Officer John D. Zeglis. “We
reported total revenue growth of 46 percent, increased net subscriber
additions by 40 percent and grew mobility EBITDA by 83 percent.”

AT&T Wireless’ first quarter numbers also make it, along with AT&T
Broadband, the two leading lines of business in the AT&T family. According
to Zeglis, that positions AT&T Wireless well when the AT&T parent follows
through with its plans to break itself into four companies.

“Following AT&T’s wireless exchange offer in the coming weeks, we’re well
positioned for the split-off this summer,” Zeglis said. “In the first
quarter we received investment grade debt ratings from Moody’s, Standard &
Poor’s and Fitch. That allowed us to complete a private global note offering
for $6.5 billion as well as secure a revolving credit facility for an
additional $2.5 billion.

“In essence, we’ve been laying the groundwork for our future success. AT&T
Wireless has the intellectual capital and resources to expand capacity and
invest in other strategic growth initiatives, even while strengthening our
balance sheet. In addition, AT&T Wireless, in its strategic alliance with
NTT DoCoMo, is developing the next generation of mobile multimedia services
on a global-standard, high-speed wireless network. It’s a winning plan.”

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