AT&T Wireless 2015 Annual Report Download - page 42

Management’s Discussion and Analysis of Financial Condition and Results of Operations (continued)
Dollars in millions except per share amounts
40 | 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 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 limitation, intercarrier compensation,
interconnection obligations, pending Notices of Apparent Liability,
the transition from legacy technologies to IP-based infrastructure
including the withdrawal of legacy TDM-based services, universal
service, broadband deployment, E911 services, competition
policy, net neutrality, including the FCC’s order reclassifying
broadband as Title II services subject to much more fulsome
regulation, unbundled network elements and other wholesale
obligations, multi-channel video programming distributor services
and equipment, availability of new spectrum from the FCC on
fair and balanced terms, and wireless and satellite 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
or delivery methods (e.g., cable, wireless, VoIP and Over The Top
Video service) and our ability to maintain capital expenditures.
• The extent of competition including from governmental
networks and other providers and the resulting pressure on
customer and access line totals and segment operating margins.
• Our ability to develop attractive and profitable product/service
offerings to offset increasing competition.
• 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 and delivery of attractive and
profitable video offerings through satellite and U-verse; the extent
to which regulatory and build-out requirements apply to our
offerings; 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 devices, device financing plans, 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, without limitation, patent and product safety claims
by or against third parties.
• The impact on our networks, including satellites operated by
DIRECTV, 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, and in the case of
satellites launched, 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 or
foreign tax authorities of new tax regulations or changes to
existing standards and actions by federal, state, local or foreign
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 integrate our 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 video competition and foreign
economies due to our recent acquisitions of DIRECTV and
Mexican wireless properties, including foreign exchange
fluctuations, as well as regulatory and political uncertainty
in Latin America.
• 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.