AT&T today reported consolidated revenues totaled $30.8 billion, up $194 million, or 0.6 percent, versus the year-earlier quarter, marking the company's second consecutive quarter with a year-over-year revenue increase. Versus the first quarter of this year, consolidated revenues were up $278 million, or 0.9 percent.

Compared with results for the second quarter of 2009, operating expenses were $24.7 billion versus $25.1 billion; operating income was $6.1 billion, up from $5.5 billion; and AT&T's operating income margin expanded to 19.8 percent, up from 18.0 percent. Total employee force is down by more than 10,000 since year-end 2009.

The Company said “these results were driven by continued growth in mobile broadband, including a record quarter for iPhone activations, gains in IP-based and strategic business services and disciplined execution on cost initiatives.”

Highlights of the revenue report for Q2 2010 were 3.2 million iPhone activated, 27 percent of iPhone activations were new customers, data revenue increased by $936 million, churn rate dropped to 1.01 percent, and 1.6 million new wireless subscribers for a total of 90.1 million.

With AT&T’s wireless business fast becoming their main business, importance of iPhone is clearly highlighted in the revenue reported. Over half of the new wireless subscribers about 0.86 million joined AT&T to get an iPhone. If AT&T loses iPhone exclusivity it will be interesting to see how their growth is affected.