AT&T Wireless 2013 Annual Report Download - page 40

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
38 | AT&T Inc.
 •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continued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,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.
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andterms.
 •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;adversemedicalcosttrends,unfavorableor
delayedimplementationofhealthcarelegislation,regulationsor
relatedcourtdecisions;andourinabilitytoreceiveretroactive
approvalfromtheDOLofourvoluntarycontributionofa
preferredinterestinourwirelessbusiness.
 •ThefinaloutcomeofFCCandotherfederalorstateagency
proceedings(includingjudicialreview,ifany,ofsuch
proceedings)involvingissuesthatareimportanttoour
business,including,withoutlimit,intercarriercompensation,
interconnectionobligations,thetransitionfromlegacy
technologiestoIP-basedinfrastructure,universalservice,
broadbanddeployment,E911services,competitionpolicy,net
neutrality,unbundlednetworkelementsandotherwholesale
obligations,availabilityofnewspectrumfromtheFCConfair
andbalancedterms,andwirelesslicenseawardsandrenewals.
 •Thefinaloutcomeofstateandfederallegislativeefforts
involvingissuesthatareimportanttoourbusiness,including
deregulationofIP-basedservices,relieffromCarrierofLast
Resortobligations,andeliminationofstatecommissionreview
ofthewithdrawalofservices.
 •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.