• by David Goetzl  @dgoetzl, July 21, 2011

AT&T continues to boost distribution of its U-verse TV service, although expansion came at a slower pace in the April-June period than last year. The net customer gain of 202,000 was slightly below the 209,000 in 2010.

Still, the number of U-verse TV customers now stands at 3.4 million. That pushes the AT&T service past Cablevision (using its numbers through June) in the ranks of multichannel video providers.

The U-verse TV net additions of 202,000 in the most recent quarter was down from the 218,000 in the first quarter this year, but the recently completed period is "traditionally a seasonally soft quarter," according to Bernstein analyst Craig Moffett.

AT&T said that in markets where U-verse has been available for three years-plus, it has a penetration rate of 25%. The company expects to complete the building of its U-verse footprint by the end of the year, which might lead to an increased focus on grabbing customers from competitors.

On one level, U-verse is fulfilling a goal that AT&T had when it joined Verizon with a telco TV service: allowing it to sell larger packages. The company said more than 75% of its U-verse subs have a triple- or quad-play, with average revenue at $170, which is about 8% higher than a year ago.

U-verse is available in markets such as Los Angeles, Dallas and Atlanta.