AT&T Wireless 2014 Annual Report Download - page 43

AT&T INC. | 41
• 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 service and device financing plans, devices and
maintain margins.
• 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 pending acquisition of DIRECTV.
• Our ability to adequately fund our wireless operations,
including payment for additional spectrum, network upgrades
and technological advancements.
• Our increased exposure to foreign economies due to recent and
pending acquisitions, including foreign exchange fluctuations.
• 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 changes in mortality assumptions;
adverse medical cost trends, and unfavorable or delayed
implementation of healthcare legislation, regulations or
related court decisions.
• 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, including potential attempts to reclassify broadband
as Title II services subject to much more fulsome regulation,
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.