AT&T at Wells Fargo Conference Notes

Scott Mair – SVP, Technology Planning & Engineering

We saw video growth by 75%

“last year we saw video growth grow by 75% as measured by gigabytes on the network. So as an industry, we always hear that 75% to 80% of video, of the data on the network in the next five years is going to be video and we’re seeing it play out. That’s exactly what we’re seeing and so it’s our responsibility to keep up with capacity.”

Spectrum is the most cost effective way to deploy capacity

“the most cost-effective way to deploy capacity is through spectrum. So that’s why that spectrum position is so important. And when you look at other LTE capabilities that I mentioned, improving spectral efficiency, improving performance of the network on the LTE roadmap is there as well.”

Millimeter wave is part of the 5G roadmap

“Millimeter Wave is a part of the roadmap that we’re going to have to have for 5G and there will be spectrum available, but again we have what we need now to get into the 5G space and grow it considerably well.”

Small cell will play a part

“small cell absolutely will play a part in the network. We start with a macro network that’s the densest out there right now and then we’ll augment with small cells. Small cells are a great way to provide capacity into areas where it’s very difficult to build cell sites and such. And as you build small cells for the LTE network, it pre-positions you for the infrastructure we’re going to need for 5G as well.”

Pushing for a change in economics at the cell tower

“anytime you see a cost stream in a business that’s growing faster than the business itself, you have to take a look at it. You have to look at the business model and say, what needs to change here and that’s what we’ve actively been doing and the model that we have today from a lot of the major players is one that when the analogy we’ve used is renting an apartment, when I rent the apartment, I’m paying a rental fee, but when I want to buy a new TV and bring it in, a new bedroom set and bring it in, I have to pay incremental dollars on my rent and keep paying. So, the rent keeps going up and the model we’re moving towards that we want to move towards is what we call a real estate model. We want to rent or lease square footage or square inches on a tower and within that space on the tower, be able to do what we need to do for our wireless infrastructure. So, we’ll put up new equipment takedown equipment and of course being limited by the structural requirements of the tower right, that’s a given, but we want to rent the space on that tower and be able to use it freely and we’ve been working with and are starting to work now with some new partners that are subscribing to that model, the real estate model with better set of economics.”

AT&T At Bank of America Conference Notes

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.”

AT&T at JP Morgan Conference Notes

Ralph de La Vega – Vice Chairman, AT&T Incorporated & CEO, AT&T Business Solutions and AT&T International, LLC

We have been in the process of building a software defined network

” We have been in the process of implementing what I think is one of the significant transformations I have ever been a part of. When it comes to networking, and particularly in the enterprise space and in the network space, we have been developing our software defined networks in a way that we are now forecasting that by the end of this year 30% of our network functions will be virtualized. And by 2020, it will be 75%, so we’re not talking about a small amount.”

The speed at which the business is turning now with software defined networks I’ve never seen before

“what is happening today is companies come to us with pieces of equipment that have never been connected to the Internet but that need to be connected so they can get performance data on them but in many cases they were concerned about connecting key components of plant because they were afraid about the security. But we had a customer come in says can you connect this voltage drive to my cloud provider of choice which in this case was the Microsoft Azure cloud. And they said we’re going send our IT guys there for a few days so you guys figure it out. They sent those folks. We took them to the AT&T machine-to-machine foundry in Plano, Texas. In three hours, they were done. The next week we got a contract. And the point there being is that the speed at which the business is turning now with software defined capabilities and the cloud I’ve never even seen before”

We have a lot of unused spectrum

“So let me explain it this way and we’ll try to connect the dots. One of the things that determine the criteria of how good a quality of network you have and also the cost efficiency of the network is your second position. Do you have sufficient spectrum, so you don’t have to keep building cell sites to get the quality of network that we need. We are kind of in a situation, which is again the best situation I have ever seen in my years with the company, because we now have a great dense network Phil, but we also have 40 megahertz of fallow spectrum that includes the purchases that we made in the AWS-3 auction as well as WCS spectrum. So that gives us great capability to expand coverage to fill any holes we have with 40 megahertz of rate spectrum, because of the densification factor. We’ll begin to use our WCS spectrum at the end of this year and AWS in the 2017 or so timeframe. So I think we’ll be able to provide what we need to provide not only with great quality, but with great cost because if you have to do that with building cell sites with the cost of the real estate and all the things you have to do today, our experience shows that you are better off doing it with the right spectrum purchase.”

We have a lot of spectrum but we’ll need it

Miscellaneous Earnings Call Notes 3.10.16

Uber CEO Travis Kalanick Fireside Chat

Uber CEO Travis Kalanick said he is being forced to raise money in order to compete with an irrational competitor

“We’re profitable in the USA, but we’re losing over $1 billion a year in China. We have a fierce competitor that’s unprofitable in every city they exist in, but they’re buying up market share. I wish the world wasn’t that way. I prefer building rather than fundraising. But if I don’t participate in the fundraising bonanza, I’ll get squeezed out by others buying market share.”

Linkedin CEO Jeff Weiner Bloomberg Interview

Linkedin (LNKD) CEO Jeff Weiner said turnarounds are hard

“Turnarounds are arguably the most difficult thing you can do in business.”

Sprint’s (S) Management Presents at Deutsche Bank Media, Internet & Telecom Conference

Sprint (S) CFO Tarek Robbiati said they are increasing focus on how their marketing dollars are spent

“I can find a lot of things at Sprint that were superfluous. One example is I never liked sponsoring race cars in telephone industry. That makes absolutely no sense. There is no car relations between the branding for the race car and our customers, so there’s no more sponsorships that don’t bring us any sort of result. We are also more targeted in the way we advertise.”

Sprint (S) CFO Tarek Robbiati said the 4G network is already past its prime and they are now focusing on building out the 5G network

“We are not building a network that is 4G, 4G is almost a thing of the past. We are building a 5G network for the future, and 5G networks are funded fundamentally different to 4G networks. They’re all around high capacity, and the more spectrum you have the more capacity you have. The more spectrum you deploy, the more you can connect customers and the more speed you can give customers across your network. And there is a simple engineering law that governs this, the higher frequency spectrum is more efficient to handle very large capacity of traffic and that’s the world we’re moving towards with 5G.”

American Express Investor Day

American Express (AXP) CEO Ken Chenault is confident they have the right business model going forward

“Is the American Express business model fundamentally broken? I can tell you with complete confidence, the answer is no.”

AT&T’s (T) Management Presents at Deutsche Bank 2016 Media, Internet & Telecom Conference

Saw a slowdown in the handset upgrade cycle

“I think you saw in the fourth quarter, it was a slowdown in the handset upgrade cycle or the total sales. I wouldn’t be surprised to see that continue”

The DirecTV assets were as advertised if not better

“The DIRECTV assets were as advertised if not better. Good quality products, good people, a good organization. Two, from a more mundane perspective, we are focused on systems integration, we are focused on everything from general ledger reporting and payrolls and vendor management and so forth. We are going through all of that heavy lifting.”

Enterprise Products Partners’ (EPD) CEO Jim Teague on 2016 Investor Day

Oil and gas markets are being forced to adjust to the staying power of US shale

“Because of U.S. shale and slowing economies much different than President Carter said, now we’ve got too much oil and global markets have another problem. They are being forced to adjust to the magnitude and staying power of U.S. shale. Over the last few years, the largest consumer of hydrocarbon now has enough to production to be a provider to international markets and different from sovereign producing countries, the U.S. producer is a pure capitalist.””

In a crisis you’re trying to survive

“Is this a crisis or is it a cycle? Well they are different. In a crisis you’re trying to survive”

Low prices are the cure for low prices

“So we see this as a challenging year but we see a sunrise with all of the demand growth that’s coming. And I think, Tony, you’re going to speak to that. Really the cure for low prices are low prices, just like price creates supply, guess what? Price creates demand. ”

Bancolombia S.A. (CIB) Q4 2015 Results

Risks to the economy are biased to the downside, but we don’t expect a sharp deceleration

“Risks to economic activity are biased to the downside. And in that sense with today’s information, I think that the likelihood of having the 1.8% growth scenario for this year is becoming more likely. But I would also say that basically what we think is that — I mean if you compare the situation to previous ones, what we think is that, I mean we are not in — I mean it’s not very likely to see a sharper deceleration but instead to have a long period of low growth, basically because first, the external shock that the economy has received has proved to be more prolonged than we expected before; and secondly, because we don’t see that there is a scope for countercyclical policies and/or monetary or fiscal side.”

Vail Resorts’ (MTN) CEO Robert Katz on Q2 2016 Results

People are skiing

“Our Colorado resorts continue to deliver very strong results, with solid growth above our record prior year. Our U.S. destination visitation has remained strong throughout the year at all of our mountain resorts, as we saw the benefited from the appeal of our resorts to high-end leisure travellers; we are reaching through our more sophisticated marketing efforts and the strong U.S. economy.”

International visits have declined, but drop has moderated

“While we have continued to see a decline in international visitation, it has moderated since the Christmas holiday, in large part due to the strength of Australian visitation which is up considerably over last year due to the success we’ve had in driving visitation to the U.S. among our Epic Australia Pass holders. Visits from Mexico have been stable relative to prior year which we view as a strong success given the currency headwinds and as expected we are seeing declines from our U.K. Canadian and Brazilian markets.”

AT&T at UBS Conference Notes

AT&T’s (T) CEO Randall Stephenson Presents at the UBS Global Media and Communications Brokers Conference

Going to be doing more on getting the customer to cloud without touching public internet

“you’re going to see us continuing to push the gas pedal particularly on the B2B side. This has proven to be really powerful. And getting the customer from a mobile handset to a virtual private network into whatever their cloud provider is, Amazon, IBM, and then back without ever touching the public Internet, this is proving to be really, really important and we’re getting a lot of traction, momentum. You should see us do more and more in that area.”

Switching to software defined networking with virtualized hardware is a big undertaking

“moving to Software-Defined Networking and all that we’re doing, this requires a fundamental shift to the capabilities of our workforce. This is probably one of the biggest logistical issues I’ve taken on in my career, getting hundreds of thousands of people reoriented from circuit switch to IP and from dedicated hardware, software combined to virtualized hardware in a network that’s managed by software.”

People aren’t upgrading handsets like they have in the past

“the revenue trends are all kind of skewed this year by the equipment revenues and obviously our upgrade cycles on smartphones is way down this year. People aren’t upgrading like they have in the past. And as we’ve gotten into this handset financing that has an immediate hit to top line revenues. And just upgrades are not happening as quickly as they were, so it’s causing us suppressive view on revenues.”

We made a mistake in the 2G world choosing GSM because we had to have more cell density, but that puts us at an advantage in the world of mobile broadband because you need density

“For the last decade, I have been frustrated by the disadvantage we were in by virtue of the technology path we chose. There’s a couple of players in the industry that went CDMA in the 2G world and we went GSM. And just admit it, CDMA propagated better. It’s just a better technology in the 2G world. 3G, our GSM technology did not propagate as well. The byproduct of that was we had to deploy a much more dense cell grid than our competitors. And as a result, we were at a cost disadvantage. And it just kind of grinded on me, right. Now enter the world of mobile broadband and particularly mobile video and the world of LTE, what does everybody have to have? A dense cell grid. And so we have the most dense cell grid by virtue of our technology path that was chosen before, we have the most dense cell grid in the industry and others are now having to catch up in terms of cell site density. And so our capital requirements in terms of achieving this cell site density are going to be lower in the foreseeable future as a result that we have quite a head start by where we are.”

There is a strong demand for alternative in Mexico, but Carlos Slim is not going to just lay down and let us take share

“make no mistake about it, I’ve been partners with Carlos Slim for 22 years. I do not expect Carlos is just going to lay down and allow us to take share, all right. I know this guy. He is going to be very, very aggressive. But there is a strong demand for an alternative in Mexico. And the AT&T brand in Mexico is an aspirational brand. It’s one thing we’ve been very pleased to see and so we’re having a lot of success in Mexico.

Just think of Mexico like another state of the US

” a lot of businesses, U.S. businesses doing business in Mexico and Mexican businesses in the United States giving them just – think of Mexico as another state of the United States, okay, and your pricing looks and feels like that.’

SDN is going to have a consequential impact on capital spend

“going forward, Software-Defined Networking, this is not an inconsequential impact on capital requirements. It is a rather significant effect on our capital spend. So there’s going to be a continual downward pressure on our capital spending just by virtue of SDN virtualizing the core network. Thing about the cloud moves out in the datacenter into the core network, so all the economics that we have experienced in the datacenter by cloud computing is moving into the big iron core network of AT&T. That’s consequential.”

After seeing deals get killed, people are probably thinking less about M&A

“After getting up and reading the Journal this morning that Staples and Electrolux with GE were killed [ph], I don’t think anybody would be talking about M&A for the next foreseeable future.”

AT&T 2Q15 Earnings Call Notes

2.1m new subs, 410k postpaid and 1.4m connected devices

“Total net adds came in at 2.1 million subscribers, including 410,000 postpaid subscribers and 1.4 million connected devices. Cricket is really kicking in the gear. Prepaid voice had a strong turnaround year from a year ago. We gained more than 330,000 prepaid voice customers after losing about that many in the year ago quarter.”

Connected car driving connected device growth

“We also had our second largest connected device net add quarter ever. Our leadership in connected cars drove that growth. Our relationship with eight car manufacturers producing more than half of the new connected cars in the United States is driving this as more and more manufacturers make connectivity a key part of their new car strategies. ”

Paying out 55% of FCF as dividends

“Free cash flow was $4.5 billion and $7.2 billion year-to-date. We are well on our way to hitting our standalone free cash flow guidance we gave you earlier this year. We now expect standalone free cash flow, excluding any impact from DIRECTV in the $12 billion range or better and this includes the operational and capital impacts from our Mexican acquisitions. In terms of uses of cash, dividends totaled $2.4 billion, which gives us a free cash flow to dividend payout ratio of 55% for the quarter and about 67% year-to-date.”

We are watching our competitors’ moves. It’s competitive, but we’re not respond to every one

“let me just say it this way. We are certainly evaluating and watching our competitor’s moves in the marketplace. What I would tell you is that we are not responding to each and everyone from a discounting program. We have shown that kind of discipline. We have responded with – with an effort to make customer care easier, customer service easier, customer data situations, like rollover data, where we can meet some of the customers’ pain points and satisfy them. And we have done a great job in providing value customer solution with our prepaid brand. Those are the kinds of things we are going to do and continue to do.”

“yes, it’s a competitive market, it continues to be noisy, a competitive market, but it’s been that way for sometime and I wouldn’t expect necessarily to change. But I do like our ability to compete with the tools that we have that are different than our competitors. ”

AT&T is securitizing something (SK: I’m going to have to do more research into this)

“So, with regard to securitization, Simon, we did do some this quarter. They were about $1 billion this quarter and we did about $800 million in the year ago quarter, so a slight increase in the securitizations, I am assuming you are talking about the net securitizations, continue to see strong demand, continue to see a real interest in that investment by a number of banks at very attractive rates.”

Continue to see large data growth per handset

Yes, we continue to see data growth per handset to be significant. And it’s been running at kind of the 50% year-over-year increase for a while. With regard to the data plans, we are seeing customers a couple of things. We continue to see customers go to bigger data plan, some of the 20 gig and bigger plans. “

AT&T at JP Morgan Conference Notes

We were sub-scale in TV

“if you think about where we are today, nationwide mobility business. We have a TV business that probably characterizes subscale. It’s a spotty footprint around the United States, have a lot of success with it, but its kind of hard to integrate with a nationwide wireless business. We have a broadband footprint that covers 57 million homes and there’s a pretty good overlap with the TV market, but not perfect.

When we close DIRECTV we’re going to have a very different look and feel for the business. And that is we are going to have this nationwide wireless footprint, nationwide retail distribution. It is a best-in-class retail distribution. A high-quality, high-end retail distribution presence nationwide with a nationwide TV platform, a nationwide TV product.”

DirecTV acquisition will improve go to market effort and installation and service costs

“The same thing is going to happen with DIRECTV, us trying to sell their product versus them trying to sell our broadband product. The product development is never integrated. Leveraging the content across different platforms is really kludgy and hard to do.

Once this transaction closes all of that gets consolidated. The sales function gets consolidated, the retail presence gets consolidated, product development gets consolidated. You have a very different look and feel.

And you have one truck roll. Today somebody buys DIRECTV in our broadband a couple of truck rolls. One truck roll, one customer interface, one customer interface for care, it’s just a whole different game when you put the two together.”

We bought DTV making the assumption that cord cutting would continue

“as we were evaluating DIRECTV, and obviously we modeled it nine ways to Sunday and as we evaluated we made the basic assumption that over the top would continue to develop. And that you would see not only cord cutters but cord nevers I think is how some of you guys have termed that, meaning a lot of millennials may grow up never having a traditional linear TV product.”

The delivery of linear TV is changing. People need to be able to watch the content on whatever screen they want

“what we are really convinced of is that the traditional linear model is about to change in a significant way as well. And what I mean by that is customers are buying these big bundles of content, their traditional linear model, the expectation now exists that they ought to be able to have a content, enjoy that content, watch that content on whatever device they may choose. And so whether it is a smart phone or whether it is a tablet or a laptop, that content needs to be delivered there. We think we’re going to be in a unique position to do that.’

DTV gives the opportunity to make a bigger push into fiber deployment

“when we announced DIRECTV we said because of how DIRECTV will change the economics of the video business, suddenly we go from our video business being a money loser to a money maker and it gives us the ability to push further in fiber deployment. And so we are going to build another 2 million homes with fiber.”

Google changed the game for fiber deployment, because they got cities to buy into allowing partial rollouts

“When Google went into Kansas City and then announced they were going into Austin to change the game for the industry. A change the game in a very peculiar way and that is, to your point, if we wanted to go build out a city with fiber, the requirement was that you go build out the entire city, and it’s not economic to build an entire city with fiber on day one…Google came in and was very targeted in where they deployed fiber. And they got the municipalities not only approval but endorsement to be very targeted in where they deployed fiber.”

We have a high degree of conviction that title II won’t stand

“If I believed the rules that were passed by the FCC on Title II were going to be the rules of the land for the next 5 to 10 years it would have a dramatic impact on how we thought about investment. As we have evaluated the FCC’s order on Title II, we actually are – we actually have a certain degree of conviction that these will not be the rules of the land in the long-term.”

Having success connecting everything

“We’re having a tremendous amount of success in automating and wirelessly interconnecting everything from the manufacturing plant to shipping containers in the Maersk shipping network around the globe, and each of those are new revenue generating and data points for our mobility business.”

AT&T 1Q15 Earnings Call Notes

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”

AT&T 3Q14 Earnings Call Notes

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

Wireless packages have shifted significantly

“The transition in wireless is just as dramatic. There has been a steady shift of our subscribers to usage based plans; more than 80% of our smartphone base is now on usage-based plans. At the same time, mobile share value has helped move customers off the traditional subsidy model.’

Connected car is ready to take off

“The connected car is ready to take off. In the third quarter alone we added more than 500,000 connected cars as the 2015 model start to roll off the assembly lines’

Added 2m subs

“In wireless, we saw good in fact great trends in a challenging environment including more than 2 million net adds that included adding twice as many postpaid subscribers as we did in the year ago third quarter”

Subs came from postpaid and connected devices

“Overall we added more than 2 million total subscribers led by postpaid and connected devices. We added nearly 800,000 new postpaid subscribers that’s twice as many as the year ago quarter, about 450,000 of those were tablets and computing devices with the remaining net adds, phone and some digital life.”

“1.3 million connected devices were added in the quarter including more than half a million cars.”

Larger data plans and insurance drive up ARPU

“Also in the quarter, we continue to see customer’s buy up larger data plans and more interested in device insurance. This is helping drive revenue.”

U-verse triple play cost $179

“ARPU for U-verse triple play customers continues to be more than $179 that helps drive revenue growth while reducing churn. In fact triple-play bundled customers have significantly lower churn than standalone customers.’

ARPU being driven by more data

“on the ARPU story, I think the biggest issue with the improvement is really the people buying the bigger buckets and buying – upping plans, as we’ve mentioned. We had over 50% of the customer base at the 10-gig or bigger plans.’

Partners aren’t as good at selling your product as you are

“in the launch cycle sometimes inventory was constrained, so people would go into different locations where our experience level in Next hasn’t been as high, particularly in some of the new channels like some of the big-box stores or some of the manufacturer stores. ”

AT&T at Goldman Sachs Conference Notes

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

Ready for the internet of everything

“AT&T is uniquely positioned to create a fully connected experience, your smartphone, your car, your home and your business and today business related customers represent more than 50% of our mobile revenues and they’re growing”

Customers just want fast, seamless, secure connectivity

“Customers really don’t care if their data travels on LTE, Wi-Fi, macro-cell, small-cell, [user] (ph), broadband, VPN, fiber; they just want an experience that is seamless, that is fast, that is secure and is ubiquitous and we’ve invested and upgraded aggressively in our networks to provide it.”

Businesses have invested in efficiency

“Today businesses despite a down economy are investing in improving their processes and their efficiencies. You can see them investing heavily in those areas, but it is investment in mobile technology and so they’re putting mobile devices in the hands of their employees to make them more effective.

We have done that ourselves. In our retail environment for example, we have taken out 17,000 cash registers out of our retail stores and we place them with 40,000 tablets.”

It’s always been competitive. You had better have good analytics

“I’ve seen this industry go through cycles and we’ve been very competitive. That doesn’t mean that we have been less competitive in the past. But what we have always focused on is during those cycles to make sure you have good data analytics to tell you what the customers think and what the customers want.”

Network coverage is critical for internet of things

“our 4G LTE network, which is the nations most reliable now covers 300 million pops. That is absolutely critical, not to take just into accounts, the things that we have to do to competitively compete in the basic market. But that coverage is absolutely critical for the Connected Car and for Digital Life. Without it those products don’t work as well.”

Seeing people buy insurance in higher numbers

“people who are buying these plans we’re seeing them buy other goods and services like insurance in much higher numbers and that helps ARPU over the long term while reducing subsidies.”

It’s amazing how much volume we’ve had today for the iPhone

“it was amazing for me to see the amount of volume that we have seen just in a few hours this morning and our systems are rocking. Everything is going well. I think it’s a great testament to the plans that we put out there.”

Iphone 6 numbers are tracking better than last year and the prior year

“They are better than last year and they are better than the prior year.”

We think video is huge, which is why we bought DTV

“We think video and video — the video opportunity is huge. That’s why we made the purchase of DIRECTV, which gives us a unique opportunity in terms of size and scale and capabilities to bring TV like you’ve never seen it before, to wireless, to tablets, to smartphones, with a scale that will be unmatched.”

We’ve got global SIM

“One of the things that we did early on, hasn’t gone a lot of discussion, but the thing that makes all of this possible is what we call the Global SIM. You have a SIM in each one of your phones and we came up with a SIM that once a manufacturer put that SIM in their car that car can essentially operate anywhere in the world…So when a car marker builds a car, if they put our SIM in it, they don’t have to worry about where that car is going to be shipped.”

DTV acquisition gets T into Latam

“So I think there is a huge opportunity in Latin America. We’ll have to wait until the deal closes to take advantage of it. But DIRECTV has done a super job there.”

AT&T working on an airplane solution

“So what we are envisioning is a super high speed service that is much better than what you have today that allows you to get lot more data than it’s available and when we approach airlines today, we’re getting a lot of good positive feedback.”