AT&T Sees More Fiber Revenue-Per-User Pressure as Discounted Bundles Expand

AT&T expects average revenue per fiber customer to continue declining in the fourth quarter as discounted internet-and-wireless bundles gain traction. The outlook highlights the trade-off in its growth strategy: adding and retaining subscribers can mean collecting less revenue from each account.

Reuters’ updated report says fiber average revenue per user, or ARPU, fell 4% in the third quarter. Discounts, introductory prices in new markets and the addition of lower-priced Lumen customers contributed to the decline.

More customers, with pricing pressure

About 43% of households signing up for AT&T internet also chose its wireless services, according to Reuters. That figure concerns new internet sign-ups, not 43% of the entire customer base.

Management argues that customers taking both services should stay longer and generate more lifetime value. That retention case is different from a claim that bundled accounts immediately produce higher fiber ARPU.

The company’s official results show 442,000 fiber internet net additions and 327,000 fixed-wireless net additions in the quarter, alongside 379,000 postpaid phone additions.

Adjusted earnings guidance still rises

AT&T reported quarterly revenue of $32.3 billion, up 5.3%, and adjusted earnings of $0.65 per share. It raised its full-year adjusted earnings outlook to around $2.40 per share from its previous $2.25–$2.35 range.

Adjusted earnings are not the same as reported profit. GAAP diluted earnings from continuing operations were $0.13 per share. The results included a $2.6 billion non-cash impairment tied to the planned sale of its Mexico wireless business.

The quarter therefore combines stronger subscriber growth and a higher adjusted profit outlook with pressure on fiber pricing. Whether longer customer relationships offset those discounts is a longer-term question, not something the sign-up totals alone settle.

Sources

• Reuters: updated fiber-ARPU outlook and bundle strategy
• AT&T: official Q3 results, subscriber metrics and guidance
• Pexels: license for the network illustration