AT&T Wireless 2012 Annual Report Download - page 59

AT&T Inc. | 57
Equipment failures, natural disasters, computer hacking
and terrorist acts may materially adversely affect
our operations.
Major equipment failures or natural disasters, including severe
weather, computer hacking, terrorist acts or other breaches
of network or IT security that affect our wireline and wireless
networks, including telephone switching offices, microwave
links, third-party-owned local and long-distance networks on
which we rely, our cell sites or other equipment, or our
customer account support and information systems, could
have a material adverse effect on our operations. While we
have been subject to security breaches or cyber attacks,
these did not result in a material adverse effect on our
operations. Our inability to operate our wireline, wireless or
customer-related support systems as a result of such events,
even for a limited time period, could result in significant
expenses, potential legal liability or a loss of customers or
impair our ability to attract new customers, any of which
could have a material adverse effect on our business, results
of operations and financial condition.
A majority of our workforce is represented by labor
unions. Absent the successful negotiation of agreements
that either expired during 2012 or are scheduled to
expire during 2013, we could experience lengthy
work stoppages.
A majority of our employees are represented by labor unions
as of year-end 2012. Labor contracts covering many of the
employees either will expire during 2013 or expired during
2012 and remain subject to negotiation. We experienced a
work stoppage in 2004 when the contracts involving our
wireline employees expired, and we may experience
additional work stoppages in 2013. A work stoppage could
adversely affect our business operations, including a loss of
revenue and strained relationships with customers, and we
cannot predict the length of any such strike. We cannot
predict the new contract provisions or the impact of any
new contract on our financial condition.
broadband network to offer IP-based voice, data and video
services. Should regulatory requirements change, our
deployment could be limited to only those geographical
areas where regulation is not burdensome. In addition, should
the delivery of services expected to be deployed on our
network be delayed due to technological or regulatory
constraints, performance of suppliers, or other reasons, or
the cost of providing such services, including the availability
and cost of content for our video offerings, becomes higher
than expected, customers may decide to purchase services
from our competitors, which would adversely affect our
revenues and margins, and such effects could be material.
Unfavorable litigation or governmental investigation
results could require us to pay significant amounts or
lead to onerous operating procedures.
We are subject to a number of lawsuits both in the
United States and in foreign countries, including, at any
particular time, claims relating to antitrust; patent
infringement; wage and hour; personal injury; and our
advertising, sales and billing and collection practices.
We also spend substantial resources complying with
various government standards, which may entail related
investigations. As we deploy newer technologies, especially
in the wireless area, we also face current and potential
litigation relating to alleged adverse health effects on
customers or employees who use such technologies
including, for example, wireless handsets. We may incur
significant expenses defending such suits or government
charges and may be required to pay amounts or otherwise
change our operations in ways that could materially
adversely affect our operations or financial results.