AT&T continued its growth during the first quarter of 2008, reporting over 1 million customer additions, which pushed the company’s revenue to 17 percent.

iPhone

For the first quarter, AT&T said it added 1.295 million customers, an 8.7% increase compared to the 1.191 million customers it added during 2007 first quarter. This new number made AT&T’s customer base to 71.3 million to date.

Analyst Tom Watts stressed the continued strong sales of the iPhone and the weakening sales at Sprint Nextel Corp were the two main factors that helped AT&T’s growth this quarter. AT&T CFO Rick Lindner also stressed in a conference call with Watts that the carrier was seeing the most port-ins from Sprint Nextel.

AT&T




also reported a dramatic increase in average revenue per user (ARPU), boosting to 2% or an average of $50.18 during the first quarter. This in turn, affected the overall revenue of the company to $10.6 billion for 2008’s first quarter. Lindner reported that iPhone users generated an average ARPU of $100/month and over 40% of customers who purchased the iPhone switched from another carrier.

Lindner says the company is preparing to its expand its network coverage for the 3G invasion through the rest of the year. At the end of the first quarter, AT&T said it had only 11 million 3G units on its network and 16% use smartphones, showing a large room for growth for the coming quarters.

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