Follow us:

Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

October 19, 2006 at 10:37 AM

Cingular Wireless Q3 and 3G

Cingular Wireless reported third quarter financial results today that set a record for net income.

The Atlanta-based company, a joint venture of AT&T and BellSouth, said it made a profit of $847 million for the third quarter, a 280 percent year‐over‐year increase. Revenue during the period totaled $9.6 billion.

What was interesting was the company’s increase in ARPU, or average revenue per user. It increased slightly to $49.76 a month from $49.65 in the year‐ago period. But most of the growth came from selling more data services. Data ARPU increased 46 percent year‐over‐year and 10 percent sequentially to $6.32.

Cingular said the growth came from the increasing popularity of downloadable games, ringtones, mobile instant messaging, mobile e-mail, photo messaging, and media bundles. In addition, text messaging continued to grow. In the third quarter of 2006, Cingular had 28 million active data customers, and delivered 138 million multi‐media messages and 10 billion text messages.

The increase came as the company’s roll-out of its high-speed data network called HSDPA. The 3G service, which offers speeds averaging 400 to 700 kilobits per second, is available in 115 cities in and 52 major markets in 28 states and the District of Columbia.

Customers can use the 3G connections to access e‐mail and information services or watch streaming video clips using Cingular Video.

At WiMax World last week, the success of 3G was the subject of hot debatey. Detractors said 3G will not take off because the business models aren’t there. The equipment is too expensive to spur widespread adoption, whereas WiMax promises greater speeds and capacity at lower costs.

But it seems that consumers are interested in 3G data services if Cingular’s customer is spending $6 a month on average. But for the carriers to make money on the billions invested in the new networks, I imagine it will have to grow much higher than that.

Comments | More in Wireless & telecom

COMMENTS

No personal attacks or insults, no hate speech, no profanity. Please keep the conversation civil and help us moderate this thread by reporting any abuse. See our Commenting FAQ.



The opinions expressed in reader comments are those of the author only, and do not reflect the opinions of The Seattle Times.


The Seattle Times

The door is closed, but it's not locked.

Take a minute to subscribe and continue to enjoy The Seattle Times for as little as 99 cents a week.

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Subscriber login ►
The Seattle Times

To keep reading, you need a subscription upgrade.

We hope you have enjoyed your complimentary access. For unlimited seattletimes.com access, please upgrade your digital subscription.

Call customer service at 1.800.542.0820 for assistance with your upgrade or questions about your subscriber status.

The Seattle Times

To keep reading, you need a subscription.

We hope you have enjoyed your complimentary access. Subscribe now for unlimited access!

Subscription options ►

Already a subscriber?

We've got good news for you. Unlimited seattletimes.com content access is included with most subscriptions.

Activate Subscriber Account ►