One week before Verizon starts offering its version of the iPhone, AT&T said Thursday that its revenue jumped 2.1 percent during the last quarter, though profit took a nosedive.

On the wireless front, the company added 2.8 million subscribers and activated 4.1 million iPhones and 442,000 tablets during the quarter.

Revenue came in at $31.4 billion, up $653 million from last year. Profit, however, was at $1.1 billion, down from 2.7 billion last year.

AT&T added 400,000 contract customers, down from 910,000 the year before.

AT&T said that it added 2.8 million wireless subscribers during the last quarter for a new total of 95.5 million - the first time wireless subscriptions have surpassed wireline, AT&T said. Overall, AT&T added 8.9 million subscribers in 2010.

During the quarter, AT&T activated 4.1 million new iPhones, down from 5.2 million iPhone activations the previous quarter. The company said it also added 442,000 iPads and Android tablets, 90 percent of which include pre-paid accounts.

During the same quarter in 2009, AT&T activated 3.1 million iPhones and added 2.7 million wireless subscribers. Overall, AT&T added 7.3 million wireless customers in 2009.

Next week, Verizon will start selling its version of the iPhone. In its earnings report this week, Verizon said it added 955,000 wireless customers during the quarter, 872,000 of which were contract subscribers, for a total of 94.1 million. Verizon also sold 86,000 tablets, mostly iPads.

"2011 is the year when we'll take mobile broadband to the next level," AT&T chairman and chief executive Randall Stephenson said in a statement. "We're seeing 4G speeds today in areas of key markets, we've accelerated our LTE deployment plans, and we expect to add 20 4G devices to our lineup this year."

On the wireline front, AT&T added 246,000 U-verse TV subscribers to reach almost 3 million. The company also added 210,000 broadband customers.