AT&T Wireless 2012 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.
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 at favorable rates.
• 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 United States and foreign
securities markets, resulting in worse-than-assumed
investment returns and discount rates and adverse medical
cost trends and unfavorable healthcare legislation,
regulations or related court decisions.
• The final outcome of FCC and other federal agency
proceedings and reopenings of such proceedings and
judicial reviews, if any, of such proceedings, including issues
relating to access charges, intercarrier compensation,
interconnection obligations, transitioning from legacy
technologies to IP-based infrastructure, universal service,
broadband deployment, E911 services, competition, net
neutrality, unbundled loop and transport elements,
availability of new spectrum from the FCC on fair and
balanced terms, wireless license awards and renewals and
wireless services, including data roaming agreements and
spectrum allocation, and the sunset of the traditional
copper-based network services and regulatory obligations.
• The final outcome of regulatory proceedings in the states
in which we operate and reopenings of such proceedings
and judicial reviews, 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 intercarrier and
other 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.
• 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 development of attractive and profitable U-verse
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 wireless devices, some on an exclusive basis.
• The availability and cost of additional wireless spectrum
and regulations and conditions relating to spectrum use,
licensing, obtaining additional spectrum, technical
standards and deployment and usage, including network
management rules.
• Our ability to manage growth in wireless data services,
including network quality and acquisition of adequate
spectrum at reasonable costs and terms.
• The outcome of pending, threatened or potential litigation,
including patent and product safety claims by or against
third parties.
• The impact on our networks and business from major
equipment failures; security breaches related to the
network or customer information; our inability to obtain
handsets, equipment/software or have handsets,
equipment/software serviced in a timely and cost-effective
manner from suppliers; or 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.
• The uncertainty surrounding further congressional action
to address spending reductions and negotiations over the
debt ceiling, which may result in a significant reduction in
government spending and reluctance of businesses and
consumers to spend in general and on our products and
services specifically, due to this fiscal uncertainty.
Readers are cautioned that other factors discussed in this
report, although not enumerated here, also could materially
affect our future earnings.