Spanish carrier Telefonica agrees to license AT&T's Digital Life home automation and security platform.
AT&T's growth was largely attributed to the continued move toward no-contract, no-subsidy plans.
Acquisition creates a powerhouse for services in the home, allowing AT&T to pair its own wireless network with DirecTV's satellite TV service.
The deal, said to be expected soon, would lead to a substantial expansion of AT&T's TV services.
In two separate congressional hearings, AT&T's CEO makes the case for the $48.5 billion proposed merger with DirecTV.
The wireless carrier unveils a promotion offering more than twice the high-speed data for a four-line family plan, though only through 2015.
The telecom adds more than 1 million wireless customers, including 625,000 subscribers who signed on to a long-term contract.
AT&T announced Wednesday that Cupertino will be the first community in Silicon Valley that will get its U-verse with GigaPower 1Gbps broadband service.
Austin residents already subscribing to AT&T's super-fast GigaPower broadband service will finally get the 1Gbps speeds they were promised when the service was introduced last year.
"The deal is done" and will be announced Sunday, says a report. The purported buy is thought to carry a $50B price tag.