AT&T gains as U-verse expands

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Telecom giant AT&T continued to add subscribers to its U-verse video service in the first quarter and Tuesday reiterated its target to end 2008 with more than 1 million users. The company added 148,000 U-verse customers to end March with a total of 379,000.

The update came as AT&T posted a first-quarter profit increase of 22% to $3.46 billion. Revenue rose 6.1% to $30.7 billion. Sales of Apple's iPhone, for which AT&T is the exclusive carrier, and cost savings from the acquisition of BellSouth boosted the company's fortunes.

Driven by iPhone demand, AT&T added 1.3 million net new wireless users in the first quarter to end it with 71.4 million subscribers. Apple has said it plans to sell 10 million iPhones this year.