AT&T faces off the T-Mobile threat with 800,000 customer additions


T-Mobile(s tmus) may be a thorn in AT&T’s side lately, but the “Un-carrier” isn’t making that big an impact on its business — at least not in the fourth quarter. AT&T added 809,000 subscribers in the fourth quarter, which is 300,000 fewer than it added in Q4 of 2012, but its other numbers were strong — certainly not indicative of struggling carrier.

Most notably, AT&T’s contract churn rate fell from 1.19 percent to 1.11 percent year-over-year, a record low. Churn represents the percentage of customers that leave an operator every quarter, so the lower the churn the more of its existing subscriber base a carrier retains each quarter.

AT&T’s overall churn rate – which includes both prepaid and postpaid — ticked up slightly from 1.42 to 1.43 percent, showing AT&T has having a little more difficulty keeping prepaid customers. But it’s more valuable postpaid customers weren’t fleeing to…

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