SBC Communications Inc., the nation's second-largest local phone company, Thursday posted a 14.6% drop in third-quarter net income as revenue declined. Execs blame losses to rivals and stagnant demand.
SBC's net income for the quarter ended Sept. 30 fell to $1.8 billion, or 53 cents per share, down from $2.1 billion, or 61 cents a share, a year ago. Excluding special items, including charges related to layoffs, earnings were $1.7 billion, down from $2 billion a year earlier.
Local phone companies have been battered by customers' shift to wireless phones and E-mail, reducing the number of access lines in service. SBC's lines fell 4.3%. SBC and the other regional Bell companies have faced growing competition as local and long-distance carriers invade one another's markets.
SBC's revenue, including that from its Cingular Wireless joint venture with BellSouth Corp., fell to $12.8 billion, down 5.5% from $13.5 billion a year ago. Excluding Cingular, revenue was down 6.9%, to $10.6 billion. Operating expenses fell 1%, to $8.4 billion.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.