Internet TV business boosts AT&T Subscriber growth in wireless and a particularly strong performance by its U-Verse internet TV business helped AT&T, the largest US telecoms group by market capitalisation, report higher third-quarter revenues and profits. Like Verizon Communications, which announced strong third-quarter results last week, AT&T's figures highlight the company's success in boosting wireless revenues from its 4G network, despite increased competition in the US mobile industry. But they also focus attention on the increasing importance of high-speed broadband and advanced internet TV services offered by the two leading US telecoms operators. AT&T's fibre-based U-Verse business topped 10m subscribers for the first time in the latest quarter and is now AT&T's fastest-growing business, as revenues grew by 28.1 per cent. The Dallas-based company, which earlier this week announced plans to sell and lease back its wireless towers, reported net earnings of $3.8bn in the quarter compared to $3.6bn a year earlier, on revenues that increased by 2.2 per cent to $32.2bn. Earnings per share rose by 14.3 per cent to 72 cents. Excluding special items, earnings per share were 66 cents compared to 62 cents a year ago. During the quarter AT&T's mobile operations added 989,000 net new subscribers of which 363,000 were monthly contract customers, mostly new smartphone and tablet customers. The company sold 6.7m smartphones during the quarter, mostly to existing AT&T mobile subscribers, but noted that it was seeing some pricing pressure from competitors in the market for basic handsets. Overall, total wireless revenues, which include equipment sales, were up 5.1 per cent year over year to $17.5bn. Wireless service revenues increased 3.7 per cent to $15.5bn, driven by wireless data revenues which grew by 17.6 per cent to $5.5bn. In its fixed line business, the strong growth of U-Verse largely offset continued weakness in the traditional copper-based phone business. Overall, fixed line revenues fell by 1 per cent to $14.7bn. AT&T added a net 655,000 high-speed internet subscribers to reach a total of 9.7m, an increase of 37 per cent from the same period last year. In contrast, total revenues from business customers fell by 2.6 per cent to $8.8bn, reflecting declines in traditional products and services. This was partly offset by double-digit growth in so-called strategic business services, which grew 15.7 per cent compared to a year ago.