AT&T Wireless 2009 Annual Report Download - page 60

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
58 AT&T 09 AR
 • 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;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.
 • Ourcontinuedabilitytoattractandofferadiverse
portfolioofdevices,someonanexclusivebasis.
 • Theavailabilityandcostofadditionalwirelessspectrum
andregulationsrelatingtolicensingandtechnical
standardsanddeploymentandusage,includingnetwork
managementrules.
 • Ourabilitytomanagegrowthinwirelessdataservices,
includingnetworkquality.
 • Theoutcomeofpendingorthreatenedlitigation,
includingpatentandproductsafetyclaimsbyoragainst
thirdparties.
 • Theimpactonournetworksandbusinessofmajor
equipmentfailures,ourinabilitytoobtainequipment/
softwareorhaveequipment/softwareservicedina
timelyandcost-effectivemannerfromsuppliers,severe
weatherconditions,naturaldisasters,pandemicsor
terroristattacks.
 • Ourabilitytosuccessfullynegotiatenewcollective
bargainingcontractsandthetermsofthosecontracts.
 • 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paymentfor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.
CAUTIO N AR Y L A NG UAGE CONCER NI NG
FO RWARD-LOOK I NG STAT EMENTS
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andoursuppliers’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andunfavorablehealthcarelegislationand
regulations.
 • ThefinaloutcomeofFederalCommunications
Commissionandotherfederalagencyproceedingsand
reopeningsofsuchproceedingsandjudicialreview,if
any,ofsuchproceedings,includingissuesrelatingto
accesscharges,broadbanddeployment,E911services,
competition,netneutrality,unbundledloopandtransport
elements,wirelesslicenseawardsandrenewals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,netneutrality,
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,includinglawsand
regulationsthatreduceourincentivetoinvestinour
networks,resultinginlowerrevenuegrowthand/or
higheroperatingcosts.
 • Ourabilitytoabsorbrevenuelossescausedbyincreasing
competition,includingofferingsthatuse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.