AT&T 2Q14 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

customers are adopting the no subsidy model

“The shift is in no-device-subsidy model is unmistakable, more and more customers are choosing the simplicity of Mobile Share Value plans and AT&T Next. This model shift is driving impressive results. Postpaid churn was a record low 0.86%, the best ever for AT&T and likely and industry best this quarter.”

People moving to larger data buckets

“when customers do switch to Mobile Share they are moving to larger and larger data buckets.”

Mobile share value plan is decreasing our churn

“We feel very certain that as more and more customers sign up to Mobile Share Value plans and Next it solidifies our scores in terms of churn and we’re seeing the same thing in our net promoter scores. Our net promoter scores for customers who are in Mobile Share Value plans compared to family talk for example are twice the number.”

Seeing more people buy insurance

“we are seeing people take insurance, almost sort of 50% clip on our Next sales. So that’s going to help and we continue to find satisfaction of those insurance rates anywhere from $7 to $10 a month. We see really good results there.”

Lots of new lower cost smartphones…BYOD will increase

“we’re very excited, because we see a new wave of low cost smartphones where our customers can outright purchase the device for a very low cost and in essence bringing their own device by paying cash…So we think that the BYOD will probably increase as the year goes on.”