AT&T Wireless 2012 Annual Report Download - page 3

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AT&T Inc.
1
 A year ago we talked candidly about the issues
our company faced and how we intended to address
them. Our number one priority was to add spectrum,
the airwaves that carry our customers’ mobile
communications. We also said we would accelerate
our company’s shift to growth businesses. And I made
it clear that we would take steps to further improve our
capital structure and return value to our shareowners.
We took these objectives head-on, executed for our customers,
and as a result, we have significantly strengthened how AT&T
is positioned for the years ahead. Here’s what we’ve done:
We signed nearly 50 transactions last year
to add new, high-quality mobile capacity —
including WCS spectrum that previously was not
available for mobile broadband. This increased
our average nationwide spectrum holdings by
a third, which gives us a good runway to deliver
further innovation and growth.
With this newly acquired spectrum as a
foundation, we launched our company’s most
comprehensive organic growth plan in several
decades. Called Project Velocity IP — VIP, this plan
will let us reach millions more customers with
advanced technology and new services.
In addition to these strategic steps, we added more
customers to our growth platforms and increased
overall revenues, which allowed us to continue
robust investment in networks and new products:
We increased our total wireless subscriber base
to 107 million and continued to lead all major U.S.
wireless providers in smartphone penetration
and average revenues per wireless contract
subscriber. Our mobile data revenues grew
17.8 percent to a $27 billion annualized run rate.
We posted the largest annual increase in total
AT&T U-verse TV and broadband subscribers in our
history, bringing our total to more than 8 million.
Our U-verse revenues grew 37.9 percent to end the
year at a $10 billion annualized run rate.
Our most advanced business services, which
now make up $6.5 billion in annualized revenues,
also grew at a double-digit clip.
Overall revenues grew to more than $127 billion,
the highest total in our company’s history, and
adjusted earnings per share increased 8.5 percent.
Cash from operating activities topped $39 billion,
up 12.8 percent from the previous year and our
best total ever.
We invested $20.4 billion in capital expenditures
and spectrum purchases to expand and upgrade
our network capabilities for customers in the
United States and around the globe. We more
than doubled the U.S. population covered
by our 4G LTE network — the industry’s most
advanced, high speed wireless technology — and
deployment continues to run ahead of schedule.
TO OUR INVESTORS