AT&T Wireless 2008 Annual Report Download - page 50

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
48
| AT&T Annual Report 2008
CAUTIO N A R Y L A N G U A G E CO NC E R N I N G
FO RWA RD-LOOKI N G STAT E M E N TS
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and/orcapitalaccesschangesinthe
markets served by us or in countries in which we have
significant investments, including the impact on customer
demand and our ability to access financial markets.
 • 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
proceedings, 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 and economic pressure, 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
requirements 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.
 • 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.