AT&T At Bank of America Conference Notes

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John Stephens

iPhone sales exceeding our expectations

“Yes, so Dave, thanks for the question, and you are right, it’s has been four days, so we got a take it into account that, but the reality of it is one of the biggest providers of the iPhone services, our sales are up, we have seen a real improvement and exceeding our expectations”

We’ll be ok with the trade ins that we’re getting

“One thing I’ll add that’s unique to us, as opposed to our starting point size and the fact that we are growing from that big size and we have exceeded expectations off of that existing big statement is the fact that the phones we will receive are going to be very useable for us internally. We have a large insurance program, we’ve got a large prepaid base; we’ve got a significant investment in Mexico. So quality iPhone 6 and 6Ss are something that our business units can use very-very effectively and efficiently and quite frankly it gives us an opportunity to manage cost specifically in our insurance business. ”

Want to be the premier integrated communications company in the world

“So let me back up a little bit and really our strategy is really clearly about being the premier integrated communications company in the world. We want to serve all customers, whether that’s the largest enterprise customers serving them with secure high-speed connectivity, serving them with Internet of Things solutions, making the CIO the hero with his engineering department, with his sales department, with his HR department being able to provide solutions to the largest enterprise customers.”

Lower band 5G in 2018, higher band in 2020

“We’re working very hard on testing and have plans to test 5G technologies. Whether they be and from the accountants view whether they be from the start of the small cell backhaul capabilities, whether they be the fixed broadband solutions or whether they be the macro network. I think, we think the lower brands solutions and the standards, it should be at some time in 2018 and I think the team is working very collaboratively with the rest of the industry to establish those standards and then work the standards. So you can have a fulsome equipment supply and a fulsome interconnection capability so all the benefits are having industry standards, people seem to be joining us in that effort and that’s really going well. And then we’ll look towards 2020 from some of those higher band solutions.”

Explanation of network virtualization. Targeting 75% virtualization by 2020

” if you hold up your cell phone and you think of it a piece of equipment you have in your hand. You used to have a phone, a flash light, a camera, a laptop computer you had all this hardware that is now done in that thing you are holding in your hand. That’s what network virtualization is. We have boxes, we have servers, we have routers. All over our network, if we can virtualize those software [Audio Gap] is now your alarm clock, is now your flashlight. We can dramatically reduce the cost of the hardware. When you also do that you can do things, you can install products, you can change speeds without rolling a truck because you don’t have to change the hardware, you just reorient the software. That is as simple as I can put what we’re doing. The network function and network function and virtualization target is 30% of our network functions at the end of this year. So, we’re already seeing we were at 5% at the end of last year, we are already seeing some of those savings, we’re reinvesting those on a very intentional thoughtful way to continue the great progress the teams is making to get up to 30 and then eventually by 2020 getting up to 75.”