AT&T 1Q15 Earnings Call Notes

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surge of no-device subsidy plans creates tough comps

“About 60% of our postpaid smartphone subscribers already are on no-device subsidy plans. The surge of customers coming to value plans provides for some expected tough comparisons when looking at year-over-year financial results, but our record-breaking churn demonstrates that we made the right move in introducing these plans.”

DTV merger should close this quarter

“We expect the DIRECTV transaction will close this quarter. We have done a lot of work identifying opportunities for additional cost synergies between these two great companies.”

Postpaid churn is very low

“we’re not seeing any unusual churn activities, really. I don’t mean to be inappropriate, but the 1.02% postpaid churn is the best we’ve ever had. And if you go beyond, if you subdivide our postpaid base into postpaid smartphones, as you can imagine, the trend is even lower. So we feel very good about that.”

In the very early stages of IoT and connected car

“I will also suggest here that we are just in the beginning phases of the connected car, of the Internet of Things, and of the opportunities that that’s going to provide us. This really deep, high-quality, 308 million people that are covered with LTE or have LTE available to them is really a great thing for all the Internet of Things product and services, whether they be the connected cars or the other platforms we have out there. And we believe that over terms, we’ll see really great growth there. I think we added close to 700,000 connected cars in the quarter. So it still has a long way to go, but it’s growing very quickly.”

Our understanding of Google’s move is that it’s limited

“With regard to Google, I would suggest to you I’m not an expert on the matter, so I don’t mean to be, but I understand your commentary about it’s very limited. So I understand it’s limited. It’s got a very limited number of devices. That’s not generally the way we like to present options to customers. We like to provide a lot. My understanding it’s limited in this case. My understanding also is that there’s going to be very limited distribution and customer care. And those things are items that we found our customers value. So we’ll just have to wait and see, but it’s just another one of the plays in the environment that’s out there.”

OTT is going to happen but we think it will be part of a subscription package

“what I will tell you is that over-the-top distribution of video on wireless, on broadband connections with or without linear subscription is something that I’m sure we’ll see and something that we will see be a part of packages in the future. My own experience is that I see it as an add-on to a subscription package. And I think we believe that that will be the way a lot of the opportunities will go”