US phone giant AT&T surprised the industry by announcing that it had added 202,000 net new U-verse pay-TV subscribers between April and June. This takes its total of pay-TV clients to 3.4 million subscribers, up 36 per cent on a year ago, and ahead of Wall Street estimates.

The bad news is that AT&T lost 451,000 DSL customers in the same quarter, although gained 439,000 broadband clients.

AT&T’s 3.4 million pay-TV subscribers means it is now the nation’s eighth-largest pay-TV operator, and growing fast. Its U-verse revenues were up 57 per cent year-on-year.

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