& cplSiteName &

AT&T CFO: We're the Capacity Kings

Carol Wilson
3/8/2017
50%
50%

AT&T may have been nudged into offering unlimited wireless plans by its competitors, but the company intends to parlay what it sees as its unique network spectrum and capacity advantages to best that competition, CFO John Stephens said today in an investor presentation to Deutsche Bank.

Stephens also alluded to a potential victory in the bidding to build FirstNet as part of an overall AT&T strategy to win in a "capacity-based competition" that develops as unlimited data plans take hold. AT&T already has 40MHz of unused spectrum from the AWS 3 and WCS auctions, he said, and could potentially gain another 20MHz in the 700MHz D band -- along with funding for network construction -- if it wins the FirstNet bid as expected. (See AT&T Has FirstNet Public Safety Deal in the Bag – Sources.)

"We have 40MHz and we are hopeful to have 60MHz of service and a source to help supplement the cost to help implement and put those into service," Stephens said in his presentation, which was also webcast. "We feel very comfortable with the competitive environment with regards to a capacity-based competition -- it's not the one we chose but if we are going to go there, we feel we are best positioned, significantly differentiated [from] the other three, with our current inventory of spectrum and capacity."


Want to hear more about how service providers are engaging in smart city developments? Join us in Austin, one of Texas's smartest cities, for our fourth-annual Big Communications Event. The event is free for communications service providers -- secure your seat today!


Stephens called First Net a unique opportunity, and one AT&T can leverage as a national platform for its Internet of Things, Smart Cities and other efforts, all of which become new revenue-generators. "It allows you to build a new national network on a new band, and it also gives you the funding to do that," he said. Being able to leverage that as a national platform gives AT&T and its customers "a dramatic advantage," he said.

And a FirstNet win is not all AT&T is hoping to get from Washington. Under the Trump Administration, the carrier is expecting both a much more favorable regulatory environment and tax reform that will lower the corporate tax rate and boost investment domestically. The icing on the cake would be approval of its Time Warner acquisition this year, and Stephens is hopeful there, as well.

He credited new FCC Chair Ajit Pai with already moving to roll back rulings or pending moves regarding business data centers and consumer privacy protections, and said he expected Pai to continue backing an approach that encourages investment.

Tax reform would be an even more significant move in that direction and one that could significant impact AT&T's revenues, Stephens said.

"When you look at US economy for the last decade, one thing has been woefully absent and that is significant fixed investment," he commented. "One of the reasons is, you can put [investment dollars] somewhere else and pay 20% in taxes or you can put it in the US and pay 40% taxes, when you consider most of our state tax rates. And that differential makes us non-competitive."

A reduction in corporate tax rates to 20%, which Trump has said he'll support, "will create an environment where everybody else invests in the United States, and being a US-centric provider of services," AT&T would benefit by providing business services of all types to new factories and other operations, he said. "They are all going to need our products and services."

— Carol Wilson, Editor-at-Large, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
kq4ym
50%
50%
kq4ym,
User Rank: Light Sabre
3/20/2017 | 9:08:19 AM
Re: Interesting ...
It would seem that they have a business plan with that spectrum that should help them in the quest to have an "overall AT&T strategy to win in a "capacity-based competition" that develops as unlimited data plans take hold." With the existing unused bands they have and future acquisition it should prove to help them keep competitive with others not having that same capacity I would think.
vsomanv
50%
50%
vsomanv,
User Rank: Moderator
3/8/2017 | 2:51:31 PM
Interesting ...
with the abundant spectrum ...  what is the strategy ? Put to use, or monetize it ?
From The Founder
NFV's promises of automation and virtualization are intriguing, but what really excites service providers is the massive amount of money they could save.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Women in Comms Introduction Videos
VMWare VP Brings Women Up With Her

8|16|17   |   6:49   |   (1) comment


It's an art and a science to make mentorship, inclusive leadership, diversity and promotion of high-potential women work, says Honore' LaBourdette, vice president of Global Market Development at VMWare.
LRTV Documentaries
5G Spectrum Wars – The Recap

8|15|17   |   2:22   |   (0) comments


Service provider 3 has filed a lawsuit against Ofcom over 5G spectrum auction in the UK.
LRTV Custom TV
Say What? Facebook Unleashes AI Anarchy – The Recap

8|7|17   |     |   (0) comments


A recap of the week's talking points on Light Reading's sister site, telecoms.com. Facebook AI programmers had a bit of a brain-fade as they allowed one of its AI applications to invent its ...
Women in Comms Introduction Videos
Fujitsu's Women Band Together to Help Girls Do STEM

8|2|17   |   9:35   |   (1) comment


Supporting women both inside and outside of Fujitsu is a top priority of the telecom vendor. Yanbing Li, Fujitsu Network Communication's director of System Software Development & Delivery, shares why it's important, but why there's still a long road ahead.
LRTV Custom TV
If You're Not First, You're Last – The Recap

7|31|17   |   08:18   |   (1) comment


In case you missed it, Amazon's 1% stock increase helped Jeff Bezos dethrone Bill Gates as the richest man in the world. Also, Taiwanese electronics manufacturer
Women in Comms Introduction Videos
AT&T's Tech President Preps Workforce for the Future

7|26|17   |   5:47   |   (10) comments


AT&T is focused on the software-defined network of the future and is reskilling its workforce to get ready too, according to AT&T's President of Technology Development Melissa Arnoldi.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Intel CEO Leaves Trump Biz Advisory Board
Dan Jones, Mobile Editor, 8/15/2017
Are Cord-Cutting's Days Numbered?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 8/14/2017
Analyst Nolle: Fundamental Errors Plague NFV
Carol Wilson, Editor-at-large, 8/11/2017
Snapchat Misses Estimates, Eyes Reality Shows
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 8/11/2017
ATIS: Connected Car Security an Industry-Wide Issue
Carol Wilson, Editor-at-large, 8/10/2017
Like Us on Facebook
Twitter Feed
Animals with Phones
We Know a Tough Day When We See One Click Here
Live Digital Audio

Understanding the full experience of women in technology requires starting at the collegiate level (or sooner) and studying the technologies women are involved with, company cultures they're part of and personal experiences of individuals.

During this WiC radio show, we will talk with Nicole Engelbert, the director of Research & Analysis for Ovum Technology and a 23-year telecom industry veteran, about her experiences and perspectives on women in tech. Engelbert covers infrastructure, applications and industries for Ovum, but she is also involved in the research firm's higher education team and has helped colleges and universities globally leverage technology as a strategy for improving recruitment, retention and graduation performance.

She will share her unique insight into the collegiate level, where women pursuing engineering and STEM-related degrees is dwindling. Engelbert will also reveal new, original Ovum research on the topics of artificial intelligence, the Internet of Things, security and augmented reality, as well as discuss what each of those technologies might mean for women in our field. As always, we'll also leave plenty of time to answer all your questions live on the air and chat board.