AT&T may just consider itself a tale of two cities. On one hand, they have the newly acquired DirecTv, a satellite service that saw a gain of 342,000 subs in the second quarter, while its competition, Dish, lost nearly as many. And on the other hand you have the telco digital service, U-Verse, what FIOS is to Verizon, dropping those DirecTv gains and more. They lost "391,000 U-verse TV users in the second quarter" per Fierce Cable. That's almost a 50,000 sub net loss for AT&T! What happened?
AT&T also reported more broadband losses as they were not able to convert their DSL base to IP. Did these customers go back to cable or did they ut the cord altogether? The challenge AT&T faces is how to keep promoting and growing the DirecTv business without taking that business away from its telco side. Is there synergy there to grow or a zero sum game? The last quarter financials questions where the business is going.