AT&T Wireless 2010 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 Inc.
 •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frommajor
equipment failures, our inability to obtain handsets,
equipment/software or have handsets, equipment/
software serviced in a timely and cost-effective manner
from suppliers, severe weather conditions, natural
disasters, pandemics, energy shortages, wars 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 payment for additional spectrum; network
upgrades and technological advancements.
 •Changesinourcorporatestrategies,suchaschanging
network requirements or acquisitions and dispositions,
which may require significant amounts of cash or stock,
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.
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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 healthcare 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
customer and access line totals and wireline and wireless
operating margins.