The wireless division of AT&T posted a net income of $782 million a 283% increase over 2005–and its best ever net subscriber additions.

Low churn and strong gross additions of 5.5 million led to net subscriber growth of 2.4 million, a record for Cingular Wireless.

Fifty-three percent growth in data ARPU helped overall ARPU increase approximately 1%, which represented the second straight quarter of ARPU growth for Cingular.

Despite large capital outlays to improve its network, the combination of high net income, subscriber additions, and solid growth in data ARPU led to an increase in total revenue, which climbed 10.2%.

At the end of the fourth quarter of 2006, Cingular boasted 61 million wireless subscribers, the largestbase among U.S. network operators. The total increase in the number of customers over the previous year was 6.8 million.

Our last quarter as a joint venture operating under the Cingular name was our best ever on a variety of fronts. We achieved strong results by delivering on four strategic initiatives – build the best network, offer great products and services, create unmatched distribution and improve customer service. Backed by the scale, scope and capabilities of AT&T, we will continue to focus on these initiatives and offer our customers the flexibility and freedom of wireless services.

The company, which was rebranded under the AT&T Inc. name last week, was a joint venture of Atlanta-based BellSouth Corp. and AT&T before AT&T completed its $86 billion purchase of BellSouth last month. The wireless company will report earnings as part of the parent company in future quarters.

Alltel Wireless and Palm announced today availability of the Treo 700p smartphone.

The Treo 700p adds another Palm OS Treo smartphone to our product portfolio, and joins the Windows Mobile based Treo 700wx. With its robust feature set and ease-of-use functionality, the Treo 700p will meet the demands of Alltel’s business customers who need to remain connected and productive while on the go.

Treo 700p features include:

• PalmOS Garnet ver.5.4.9
• 1.3 MP Camera with video
• Bluetooth 1.2
• QWERTY backlit keypad
• 128 MB memory (60 MB user accessible)
• Speakerphone
• CDMA 1x/EVDO — CDMA 1x 800/1900
• 320×320 resolution

The Treo 700p from Palm is now available from Alltel Wireless for $349.99 after rebates and new two-year service agreement.

TellMe, the company behind the phrase “City and State Please” when you call 411, has launched a voice activated search application for mobile phones. Tellme by Mobile is an application that lets you find any business in America by talking or typing. You can either say a category or name on your mobile phone and see the results on your screen.

TellMe by Mobile is currently compatible with a limited range of Motorola, Samsung, Sony Ericsson, and Pantech handsets on Sprint or Cingular. Additional information is available at the TellMe beta website.

Alltel Corp. wireless customers who just can’t get enough of personalizing their wireless phones now have a new option: ringback tones.

The carrier introduced a ringback tone service, and will charge $1 per month for the offering. The fee includes one complimentary ringback tone; additional tones must be purchased. The service is offered through Motricity Inc.’s Fuel technology platform. The ringbacks are integrated with Alltel’s current content offerings from Motricity in the same storefront.

Motricity also is partnering with Alltel to provide content for the carrier’s new user interface, CellTop, which debuted last week.

Ringback tones play sounds or music clips while callers are waiting for a call to be answered.

All of the national carriers offer some type of ringback at various prices. Cingular Wireless charges a $1 monthly subscription fee and $2 for the tones, while Sprint Nextel Corp. ringbacks cost between $1.50 and $2.50 for a 90-day license. Verizon Wireless requires a $1 subscription fee plus a $2 annual fee per ringback, and T-Mobile USA Inc. charges $1.50 per month for the service, plus $2 apiece for the tones.

Comedy Central’s Stephen Colbert offers a detailed explanation of the history of AT&T, Bellsouth, SBC and Cingular Wireless.
Video available after the jump.

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Starting Monday, January 15th, AT&T is launching a new advertising campaign to begin the re-branding of Cingular Wireless to the New AT&T.

Around the world, our customers recognize the AT&T brand for meaningful innovation, a commitment to customer service, high quality and exceptional reliability. AT&T, BellSouth and Cingular are now one company, and going to market with our services under one brand is the right thing to do.

Services are converging and the lines between wireless and wireline are increasingly blurred. Customers want simplification. By uniting the three company names into one, AT&T has simplified its message to the marketplace.

The campaign will kick off with several creative executions called “Raising It Higher,” which morphs Cingular’s familiar “raising the bar” tag line and imagery into the AT&T globe. The first version of this creative execution is called “Grain,” which shows a combine harvesting wheat and appears to be drawing the Cingular five bars, but as the picture zooms out, the AT&T globe comes into focus. Both broadcast TV and print executions are scheduled to start the week of Jan. 15.

AT&T Newsroom