AT&T Wireless 2007 Annual Report Download - page 54

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
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| 2007 AT&T Annual Report
CAUTIONARY LANGUAGE CONCERNING
FORWARD-LOOKING STATEMENTS
Information set forth in this report contains forward-looking
statements that are subject to risks and uncertainties, and
actual results could differ materially. Many of these factors are
discussed in more detail in the “Risk Factors” section. We
claim the protection of the safe harbor for forward-looking
statements provided by the Private Securities Litigation
Reform Act of 1995.
The following factors could cause our future results to
differ materially from those expressed in the forward-looking
statements:
• Adverse economic changes in the markets served by us
or in countries in which we have significant investments.
• Changes in available technology and the effects of such
changes including product substitutions and deployment
costs.
• Increases in our benefit plans’ costs including increases
due to adverse changes in the U.S. and foreign securities
markets, resulting in worse-than-assumed investment
returns and discount rates, and adverse medical cost
trends.
• The final outcome of Federal Communications Commission
proceedings and reopenings of such proceedings and
judicial review, if any, of such proceedings, including
issues relating to access charges, broadband
deployment, unbundled loop and transport elements
and wireless services.
• The final outcome of regulatory proceedings in the states
in which we operate and reopenings of such proceed-
ings, and judicial review, if any, of such proceedings,
including proceedings relating to interconnection terms,
access charges, universal service, unbundled network
elements and resale and wholesale rates, broadband
deployment including our U-verse services, performance
measurement plans, service standards and traffic
compensation.
• Enactment of additional state, federal and/or foreign
regulatory and tax laws and regulations pertaining to
our subsidiaries and foreign investments.
• Our ability to absorb revenue losses caused by increasing
competition, including offerings using alternative
technologies (e.g., cable, wireless and VoIP), and our
ability to maintain capital expenditures.
• The extent of competition and the resulting pressure
on access line totals and wireline and wireless
operating margins.
• Our ability to develop attractive and profitable product/
service offerings to offset increasing competition in our
wireless and wireline markets.
• The ability of our competitors to offer product/service
offerings at lower prices due to lower cost structures and
regulatory and legislative actions adverse to us, including
state regulatory proceedings relating to unbundled
network elements and nonregulation of comparable
alternative technologies (e.g., VoIP).
• The timing, extent and cost of deployment of our U-verse
services (our Lightspeed initiative); the development of
attractive and profitable service offerings; the extent to
which regulatory, franchise fees and build-out require-
ments apply to this initiative; and the availability, cost
and/or reliability of the various technologies and/or
content required to provide such offerings.
• The outcome of pending or threatened litigation
including patent claims by or against third parties.
• The impact on our networks and business of major
equipment failures, severe weather conditions, natural
disasters or terrorist attacks.
• The issuance by the Financial Accounting Standards
Board or other accounting oversight bodies of new
accounting standards or changes to existing standards.
• The issuance by the Internal Revenue Service and/or
state tax authorities of new tax regulations or changes to
existing standards and actions by federal, state or local
tax agencies and judicial authorities with respect to
applying applicable tax laws and regulations; and the
resolution of disputes with any taxing jurisdictions.
• Our ability to adequately fund our wireless operations,
including access to additional spectrum; network
upgrades and technological advancements.
• The impact of our acquisition of BellSouth, including
the risk that the businesses will not be integrated
successfully; the risk that the cost savings and any
other synergies from the acquisition may take longer
to realize than expected or may not be fully realized;
and disruption from the acquisition may make it more
difficult to maintain relationships with customers,
employees or suppliers.
• Changes in our corporate strategies, such as changing
network requirements or acquisitions and dispositions,
to respond to competition and regulatory, legislative
and technological developments.
Readers are cautioned that other factors discussed in this
report, although not enumerated here, also could materially
affect our future earnings.