AT&T Wireless 2014 Annual Report Download - page 19

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AT&T INC.
|
17
Wireline
Segment Results
Percent Change
2014 vs. 2013 vs.
2014 2013 2012 2013 2012
Segment operating revenues
Service $57,405 $57,700 $58,271 (0.5)% (1.0)%
Equipment 1,020 1,114 1,302 (8.4) (14.4)
Total Segment Operating Revenues 58,425 58,814 59,573 (0.7) (1.3)
Segment operating expenses
Operations and support 42,471 41,638 41,207 2.0 1.0
Depreciation and amortization 10,323 10,907 11,123 (5.4) (1.9)
Total Segment Operating Expenses 52,794 52,545 52,330 0.5 0.4
Segment Operating Income 5,631 6,269 7,243 (10.2) (13.4)
Equity in Net Income (Loss) of Affiliates — 2 (1) — —
Segment Income $ 5,631 $ 6,271 $ 7,242 (10.2)% (13.4)%
Supplemental Information
Wireline Broadband, Telephone and Video Connections Summary
Our broadband, switched access lines and other services provided at December 31, 2014, 2013, and 2012 are shown below
and trends are addressed throughout the following segment discussion.
Percent Change
2014 vs. 2013 vs.
(in 000s) 20143 2013 2012 2013 2012
U-verse high speed Internet 12,205 10,375 7,717 17.6% 34.4%
DSL and Other Broadband Connections 3,823 6,050 8,673 (36.8) (30.2)
Total Wireline Broadband Connections1 16,028 16,425 16,390 (2.4) 0.2
Total U-verse Video Connections 5,943 5,460 4,536 8.8 20.4
Retail Consumer Switched Access Lines 9,243 12,403 15,707 (25.5) (21.0)
U-verse Consumer VoIP connections 4,759 3,849 2,905 23.6 32.5
Total Retail Consumer Voice Connections 14,002 16,252 18,612 (13.8) (12.7)
Switched Access Lines
Retail consumer 9,243 12,403 15,707 (25.5) (21.0)
Retail business 8,939 10,363 11,483 (13.7) (9.8)
Retail Subtotal 18,182 22,766 27,190 (20.1) (16.3)
Wholesale 1,514 1,627 1,776 (6.9) (8.4)
Total Switched Access Lines2 19,896 24,639 29,279 (19.2)% (15.8)%
1 Total wireline broadband connections include DSL, U-verse high speed Internet and satellite broadband.
2 Total switched access lines include access lines provided to national mass markets and private payphone service providers of 200 at December 31, 2014, 246 at
December 31, 2013, and 313 at December 31, 2012.
3 Connections reflect the sale of our Connecticut wireline operations in 2014.
IP-based alternatives, we expect continued growth in our
more advanced IP data products while traditional data and
DSL revenues continue to decline.
Service revenues decreased $295, or 0.5%, in 2014 and
$571, or 1.0%, in 2013. Lower service revenues from
business customers (which include integration, government-
related and outsourcing services) and the continued decline
in revenues from legacy services that we no longer actively
market were largely offset by higher service revenues from
our residential customers.
Operating Results
Our Wireline segment operating income margin was 9.6%
in 2014, compared to 10.7% in 2013 and 12.2% in 2012.
Our Wireline segment operating income decreased $638, or
10.2%, in 2014 and $974, or 13.4%, in 2013. The decrease
in operating margins and income was driven primarily by
continued revenue decreases from our legacy voice and
data products and increased U-verse content costs, partially
offset by increased revenues from our U-verse and IP-based
strategic business services. As we transition from basic
legacy voice and data services to sophisticated, high-speed,