AT&T Wireless 2013 Annual Report Download - page 40
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Please find page 40 of the 2013 AT&T Wireless annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
38 | AT&T Inc.
•Theabilityofourcompetitorstoofferproduct/serviceofferings
atlowerpricesduetolowercoststructuresandregulatoryand
legislativeactionsadversetous,includingstateregulatory
proceedingsrelatingtounbundlednetworkelementsand
nonregulationofcomparablealternativetechnologies(e.g.,VoIP).
•ThecontinueddevelopmentofattractiveandprofitableU-verse
serviceofferings;theextenttowhichregulatory,franchisefees
andbuild-outrequirementsapplytothisinitiative;andthe
availability,costand/orreliabilityofthevarioustechnologies
and/orcontentrequiredtoprovidesuchofferings.
•Ourcontinuedabilitytoattractandofferadiverseportfolioof
wirelessdevices,someonanexclusivebasis.
•Theavailabilityandcostofadditionalwirelessspectrumand
regulationsandconditionsrelatingtospectrumuse,licensing,
obtainingadditionalspectrum,technicalstandardsand
deploymentandusage,includingnetworkmanagementrules.
•Ourabilitytomanagegrowthinwirelessdataservices,
includingnetworkqualityandacquisitionofadequate
spectrumatreasonablecostsandterms.
•Theoutcomeofpending,threatenedorpotentiallitigation,
includingpatentandproductsafetyclaimsbyoragainst
thirdparties.
•Theimpactonournetworksandbusinessfrommajor
equipmentfailures;securitybreachesrelatedtothenetwork
orcustomerinformation;ourinabilitytoobtainhandsets,
equipment/softwareorhavehandsets,equipment/software
servicedinatimelyandcost-effectivemannerfromsuppliers;
orsevereweatherconditions,naturaldisasters,pandemics,
energyshortages,warsorterroristattacks.
•TheissuancebytheFinancialAccountingStandardsBoard
orotheraccountingoversightbodiesofnewaccounting
standardsorchangestoexistingstandards.
•TheissuancebytheInternalRevenueServiceand/orstatetax
authoritiesofnewtaxregulationsorchangestoexisting
standardsandactionsbyfederal,stateorlocaltaxagencies
andjudicialauthoritieswithrespecttoapplyingapplicabletax
lawsandregulationsandtheresolutionofdisputeswithany
taxingjurisdictions.
•Ourabilitytoadequatelyfundourwirelessoperations,
includingpaymentforadditionalspectrum,networkupgrades
andtechnologicaladvancements.
•Changesinourcorporatestrategies,suchaschangingnetwork
requirementsoracquisitionsanddispositions,whichmayrequire
significantamountsofcashorstock,torespondtocompetition
andregulatory,legislativeandtechnologicaldevelopments.
•Theuncertaintysurroundingfurthercongressionalactionto
addressspendingreductions,whichmayresultinasignificant
reductioningovernmentspendingandreluctanceof
businessesandconsumerstospendingeneralandonour
productsandservicesspecifically,duetothisfiscaluncertainty.
Readersarecautionedthatotherfactorsdiscussedinthisreport,
althoughnotenumeratedhere,alsocouldmateriallyaffectour
futureearnings.
CAUTIONARY LANGUAGE CONCERNING
FORWARD-LOOKING STATEMENTS
Informationsetforthinthisreportcontainsforward-looking
statementsthataresubjecttorisksanduncertainties,andactual
resultscoulddiffermaterially.Manyofthesefactorsarediscussed
inmoredetailinthe“RiskFactors”section.Weclaimtheprotection
ofthesafeharborforforward-lookingstatementsprovidedbythe
PrivateSecuritiesLitigationReformActof1995.
Thefollowingfactorscouldcauseourfutureresultstodiffer
materiallyfromthoseexpressedintheforward-lookingstatements:
•Adverseeconomicand/orcapitalaccesschangesinthe
marketsservedbyusorincountriesinwhichwehave
significantinvestments,includingtheimpactoncustomer
demandandourabilityandoursuppliers’abilitytoaccess
financialmarketsatfavorableratesandterms.
•Changesinavailabletechnologyandtheeffectsofsuch
changes,includingproductsubstitutionsanddeploymentcosts.
•Increasesinourbenefitplans’costs,includingincreasesdueto
adversechangesintheUnitedStatesandforeignsecurities
markets,resultinginworse-than-assumedinvestmentreturns
anddiscountrates;adversemedicalcosttrends,unfavorableor
delayedimplementationofhealthcarelegislation,regulationsor
relatedcourtdecisions;andourinabilitytoreceiveretroactive
approvalfromtheDOLofourvoluntarycontributionofa
preferredinterestinourwirelessbusiness.
•ThefinaloutcomeofFCCandotherfederalorstateagency
proceedings(includingjudicialreview,ifany,ofsuch
proceedings)involvingissuesthatareimportanttoour
business,including,withoutlimit,intercarriercompensation,
interconnectionobligations,thetransitionfromlegacy
technologiestoIP-basedinfrastructure,universalservice,
broadbanddeployment,E911services,competitionpolicy,net
neutrality,unbundlednetworkelementsandotherwholesale
obligations,availabilityofnewspectrumfromtheFCConfair
andbalancedterms,andwirelesslicenseawardsandrenewals.
•Thefinaloutcomeofstateandfederallegislativeefforts
involvingissuesthatareimportanttoourbusiness,including
deregulationofIP-basedservices,relieffromCarrierofLast
Resortobligations,andeliminationofstatecommissionreview
ofthewithdrawalofservices.
•Enactmentofadditionalstate,federaland/orforeignregulatory
andtaxlawsandregulationspertainingtooursubsidiariesand
foreigninvestments,includinglawsandregulationsthatreduce
ourincentivetoinvestinournetworks,resultinginlower
revenuegrowthand/orhigheroperatingcosts.
•Ourabilitytoabsorbrevenuelossescausedbyincreasing
competition,includingofferingsthatusealternative
technologies(e.g.,cable,wirelessandVoIP)andourabilityto
maintaincapitalexpenditures.
•Theextentofcompetitionandtheresultingpressureon
customerandaccesslinetotalsandwirelineandwireless
operatingmargins.
•Ourabilitytodevelopattractiveandprofitableproduct/service
offeringstooffsetincreasingcompetitioninourwirelessand
wirelinemarkets.