AT&T 2Q Profit Falls 10%; Subscriber Additions Slow

(Reuters) - AT&T Inc's (T.N) second-quarter profit and revenue beat Wall Street estimates and it added more subscribers than expected despite the loss of exclusive U.S. rights to sell Apple Inc's (AAPL.O) iPhone.

The No. 2 U.S. mobile provider, which is seeking approval to buy T-Mobile USA for $39 billion, added 331,000 net subscribers in the quarter, compared with the average expectation for 91,000 from seven analysts contacted by Reuters.

"The net (subscriber) additions were surprisingly strong," said Mizuho analyst Michael Nelson. "It seems like AT&T really successfully defended its turf after losing iPhone exclusivity."