pected to be their largest source of revenue growth in the future. By the end of the first quarter of 2011, Verizon's mobile services accounted for 63 percent of its total revenue and AT&T's mobile services accounted for 45 percent of its total revenue. Competition, Industry Structures, and Regulations The fiber structure over which AT&T and Verizon offer cable TV, home phone service, and Internet access services to their residential customers represented the first major wireline competition for all three services to most large cable TV operators. Pre- viously, cable operators competed mainly with satellite for pay-TV services. However, due to the large investments and long time periods until these investments are profit- able, AT&T and Verizon have suspended building out these "triple-play" facilities to additional areas. They are now concentrating on marketing their pay-TV and broadband in areas where upgraded networks are currently available. The cost to add new customers in these areas is much lower than the cost to build new facilities. Once fiber is on tele- phone poles or in neighborhood nodes, a wire needs only to be run from the street directly to the subscriber. AT&T's U-Verse service does not include fiber directly to premises. Rather, U-Verse is a combination of fiber in the neighborhood, and copper cabling between the customer's home and the neighborhood fiber. Verizon's FIOS (fiber-optic service) is available in approximately 58 percent of its territory. By the first quarter of 2011, AT&T stated that its U-Verse, cable TV/broad- band offering is available in about 10 percent of its territory. According to media and communications analyst SNL Kagan, by the end of the first quarter of 2011, cable TV operators had 59.6 million subscribers, satellite providers had 33.6 million, and tele- phone companies had 7.3 million. Both AT&T and Verizon are continuing to offer DSL service in areas where they don't provide pay-TV service. See Chapter 5, "Broadband and Wide Area Network Services," for information on 