AT&T Inc. (T) announced third-quarter 2009 results, with reported earnings per share of 54 cents beating the Zacks Consensus Estimate of 50 cents while declining from 55 cents reported a year ago. Net income fell 1.2% year over year to $3.2 billion on account of lower revenue. The results were highlighted by growth across wireless and U-verse video businesses. The second largest wireless carrier reported consolidated revenue of $30.9 billion for the quarter, down 1.6% year over year, largely due to lower wireline voice, legacy data and print advertising revenue, which offset growth in wireless and wireline data services. AT&T registered a net gain of 2 million wireless subscribers in the third quarter to reach 81.6 million total subscribers in service, up 9% year over year, driven by strong iPhone activations. This represents the largest third quarter addition in the company’s history. Retail postpaid additions for ...

We maintain a Buy rating for Telus Corporation (TU), the second-largest telecommunications provider in Canada. The company registered record net wireless subscriber additions for the most recent quarter, coupled with growth in broadband, which more than offset declines in legacy fixed-line business. Additionally, increased demand for smartphones and associated usage continues to bolster wireless data revenue.

We are encouraged by Telus wireless business prospects given its strong brand value, expanding product/service portfolio and ongoing technology upgrade initiatives. Although Telus modestly trimmed its outlook for the remainder of unreported 2008, the company committed to continued share buyback programs and increased dividend payouts.

We also assess that the company's ARPU [average revenue per user] trend may still have upside potential as Telus new wireless data offering is only subscribed to by approximately 10% of their wireless customer base. We believe that the company has an opportunity to drive further data usage which would

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