AT&T reported strong third-quarter earnings today driven by revenue gains and margin expansion in wireless, merger-integration progress, and continued solid execution in wireline operations, including improved trends in business services. The results showed an earnings increase of 74 percent to $2.17 billion. Third-quarter consolidated revenues totaled $15.6 billion, up from a pre-merger $10.3 billion in the third quarter of 2005.

In the report, AT&T projects the first launch of HDTV over the IPTV U-Verse service to be in San Antonio in late November. According to AT&T, the initial results from a HDTV trial in Houston have proved to be positive.

AT&T launched its U-Verse service earlier this year in San Antonio. Since then, AT&T is reporting around 3,000 customers, which is a 10 percent penetration rate for the homes with availability.

AT&T plans to launch the U-Verse service in approximately 15 markets across 13-states by the end of 2006. According to AT&T, all markets would include the capability of HDTV service.