Dish 2Q17 Earnings Call Notes

Charles William Ergen – DISH Network Corp.

Have to move with the market

“I think it’s realistic to assume that a Linear customer today that you might get on randomly across the United States, the odds on that customer lasting 7 or 8 or 9 or 10 years is probably not good. So we just look at it and say, we have to knew that over the air antennas to get them. We have to be willing to focus on areas that may be not as many options for the consumer, right, rural America is an example, and be a little smarter about it and then bring in the new technology of OTT where the churn is going to be higher, but the SAC is going to be very low, and where you have an enhanced revenue opportunity with advertising and add-ons and everything else. So I think we just change with where the market is going.”

Going to focus on IoT and wait for 5G

“Yeah. And this is Charlie. I’d only add that you realize that we have nationwide 600 megahertz spectrum now, which is a great low band frequency, which is really a necessity in my opinion for a lot of the use cases of IoT. We can’t actually use – we can’t use that nationwide frequency, because there’s still 38 months that the broadcasters have before they have to turn it over. And they’re asking for more time at this point in time. So unfortunately, that’s kind of after our 2020 schedule for the FCC.

And then we’re still involved in litigation on some of the AWS-3 spectrum. We’re still awaiting court decisions on that. So that’s a bit tied up in terms of us making long-term strategic decision. So it just so works out that we’re really – it just makes logical sense to go with a narrowband IoT and wait for 5G where we’ll probably have some specs and some time we’ll probably have some specs in 2018 and we can start planning that network.

And hopefully the second phase will come along as soon as 5G is available. And it’s realistic to assume, I think, that we’re going to need some help. And we need help in doing that both in technical knowledge and know-how and financial and everything else because just like we needed help to launch satellites. We launched our first satellite in 1995, and I think we’ve launched 21 or 22 satellites now. We needed a lot of help to get there, and we’re not afraid to ask for help.”

The telecom carriers each have a little bit different strategy

“I think each carriers offer a little bit different strategy today. I mean, obviously AT&T is getting more heavily into the content side of the business. Verizon’s got more of a small cell strategy and T-Mobile is just taking away a lot of the pain points that are out there. So each have strategies that those guys are a lot more knowledgeable about the wireless business than I am, so each of the – there’s no reason that each of those strategies can’t work.”

You’re going to use a lot of data in your lifetime

“So, all those things are going to happen. The only thing I know for sure is that if you’re born today in the United States, you’re probably not going to have one second of your life you’re not connected. And you’re going to use a lot of data during your lifetime. And there’s going to be – and that’s just people. And every microprocessor and every light and every other thing is going to have a sensor that’s going to be connected. And that’s just – it’s going to make us more productive. And it’s going to save companies money. And so there’s going to be very large companies coming out of the connectivity business on a big scale, and we hope to play a part in that.”

Amazon is one of those companies that probably needs to think about connectivity

“I think Amazon is one of those $500 billion companies that probably have to think about connectivity in their future. They have three main businesses, right? So their cloud business doesn’t work unless it’s connected. And that cloud business is connected by fiber a lot of times, but it’s wireless too. And so they don’t make any money if that’s not connected. And their retail business is going to – future delivery is going to be drones or autonomous vehicles. Both of those are not connected, so both of those are going to need connectivity. And then they have a big video business now. And that video business lot of times, is watched on mobile devices. So, you need connectivity for that.”

If net neutrality rules get more defined you’re not going to be quite as confident

“So I think they have to – look, I don’t have inside information here, but they have to look at connectivity as part of their future. They may be able to do that if they could just peel off some money and buy one of the incumbent carriers, or they could lease spectrum, or they could just hope that the – I think everybody in – the really big companies have always assumed there’s going to be a connectivity network out there that they can piggyback off of. And I think that if net neutrality rules get more defined, and I think you’re going to find that it’s maybe not quite as – you’re not going to be quite as confident of that in the future.”

You can’t have all the profits going to three or four companies

“You can’t have all the profits going to three or four companies and have the guys that are – the companies that are providing them the raw material to make that money, not get wake up one day and get a little smarter. That’d be my guess, but I don’t know if that’s going to happen. But at some point, all the money going one direction, a lot of people are enabling that. They’re going to wake up and say maybe they should get – I’ve been through this business long enough to know that the money ebbs and flows between distribution and content. It’s probably going to continue to do that today. And a lot of the content companies, probably the distribution guys, probably are going to be in position to get a more of it. Then it may go the other direction.”

Thomas Cullen

Use cases of 5G are going to dwarf current use

“The average smartphone probably consumes, I don’t know, 5 gigs a month. Use cases that are being discussed around 5G that will start to materialize in the early 2020s, they’re going to dwarf that in terms of the amount of data consumed whether that be drone network or autonomous vehicles or healthcare or massive connectivity. So to look at the marketplace in terms of today’s four big competitors and the new entrants, I think you have to really think about how the market will get redefined in the next five years to seven years to ten years.”

Qualcomm 2Q17 Earnings Call Notes

Steve Mollenkopf

Millimeter wave will be table stakes for 2019 5G launches

“We now believe that both millimeter ways and sub-6 gigahertz capability will be table stakes for 2019 5G launches. The modem technology and complexity is increasing and we believe we can continue to outperform our competitors with our level of 5G innovation. It is clear that our technology position and product roadmap are strong as they have ever been.”

Derek Aberle

Expecte global growth in 3G 4G devices to by 6%

“For calendar 2017 3G, 4G device shipments, we continue to estimate shipment of 1.75 billion to 1.85 billion devices globally, up approximately 6% year-over-year at the midpoint.”

ASP declines moderating as Chinese OEMs build their businesses outside of China

“ASP declines are moderating even more than we expected meaning the declines are less than we would have expected going into the year. And that’s largely being driven by strength in China as well as increasing ASPs by many of the Chinese OEMs as they build their businesses outside of China, which are couple of the important trends that we highlighted starting 2 or 3 years ago of why we believe we would see long term growth in the market. So again, if you wrap that all up end market will continue to grow, we think it can continue to grow meaningful.”

T-Mobile 2Q17 Earnings Call Notes

John Legere

Verizon and AT&T are choking on their unlimited launches

“Amazingly, Verizon fell behind AT&T in terms of download speed. Both Verizon and AT&T are completely choking in the wake of their unlimited launches and have seen significant network slowdowns. Their networks just can’t take it. Meanwhile T-Mobile’s network has actually become even faster in download speeds and America’s best unlimited network just keeps getting better. As usual, we are just getting started. Our network expansion enables us to compete in every inch of the country now and in every segment of the market.”

Verizon’s network is significantly slowing down

“obviously Verizon has to do something as it relates to how they not just price unlimited, but how they deliver it, because their network and this isn’t just an attack, it’s an attack, but its data oriented attack. Their network is significantly slowing down, its choking on this and clearly the only explanation as to why they haven’t offered a Binge On type capability is because they don’t how. ”

Sprint is lucky to have Massa as an owner

” let’s remember that [indiscernible] is one of the richest, biggest dealmakers in the world and his moves are significantly tracked and I dare any of you to dissect when he is working on vision fund and when he is working on, the guy is one of the biggest players in the world. And what he has been doing makes sense. That’s Massa. It sprints very lucky to have him as an owner.”

Neville Ray

Never seen a megahertz we don’t like

You said brief, no questions. Well, clearly Walt never seen a megahertz we don’t like, right. That’s no network guys is going to say anything different. I mean I think for us the thing we keep forgetting is we have just closed on a massive investment in spectrum for this company. I mean John reference it earlier on, we came out with 45% of the proceeds of the Broadcast Incentive Auction, that increased our spectrum assets by just shy of 40% So we have a lot of spectrum to grow into as we continue to grow this business. We talked earlier on about the speed at which we are deploying 600 megahertz, so this isn’t spectrum that’s going to see the light of day three, 4 years from now as many would like to talk about or talked about pre the auction. This is spectrum that will be in customers’ hands with handsets before the end of this year.

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.”

Dish 1Q17 Earnings Call Notes

Charles William Ergen – DISH Network Corp.

Spectrum pricing was less than we expected it to be

“You never know what an auction is going to do. So – but our strategy going in, first, we thought it would go for materially higher than it did. But our strategy was to get one nationwide block of low-band spectrum because it does so many other things for our spectrum portfolio. Obviously, 600 low-band propagates farther. So in terms of penetration through walls and basements and things for your signal, that was an important part of where we were trying to go. Second, when you start looking at the Internet of Things and all the devices you’re going be connecting in the future, low-band is ideal for Internet of Things and that technology is going to change quite a bit with 5G and so there’s a focus there. We were pleasantly surprised that as the auction went on, it became clear at the end of the – the first round or the second round that the price was not going up; that it was going stay sub-$20 billion based on our projections. And we felt that was probably in excess of $0.50 on the dollar in terms of real value for the spectrum. So we were then able to not only get our nationwide spectrum but also then to stay in the bigger cities where we felt that the – particularly the Internet of Things would be beneficial.”

Cities are at discounts if you look at it as mHz per thing

“So one of the things about auctions today is that the way the FCC does it it’s based on population. So everything – every analyst and everything, I always quote megahertz per pop. But the last several auctions, we’ve kind of looked at where we think things are going and we look at it on megahertz per thing, not megahertz per pop or megahertz per microprocessor. So whether it’d be streetlights or heart monitors or automobiles or drones or whatever, we’ve always looked at it as a megahertz per thing. And when you do that, obviously the more densely populated cities are quite a bit of a bargain discount, if you believe our theory is right on that. So that was the strategy. We were pleasantly surprised. ”

You’re not going to see true 5G until 2020

“you’re not going to see true 5G until 2020 and probably 2021 in terms of 5G. And the main things that – 5G is going to – it does a couple things, but one is much lower latency, which brings in things like autonomous vehicles, health care and things into a network that maybe won’t work ideally on existing networks. It certainly brings in Internet of Things in a way that with millions of devices it can connect at one time that you really can’t do on existing infrastructure today. And of course, obviously it’s more – it’s going to bring 10, 20, 100 times more capacity in certain areas and adds things like millimeter wave technology. So it is a very transitional, it is a very big paradigm shift. And I think from a marketing people – marketing thing, people are going to want – jump the gun and call things 5G, but I don’t think, you’re – as an American consumer you’re going to get anything truly 5G standard, just the total standard, until at least 2020. ”

Committed to building out network

“Okay, Amy, on the build-out, one of the things I learned long ago is we focus on the things we can control. So while there’s going be a lot of noise and there’s certainly going to be talk of consolidation and lots of rumors about this company and that company doing something together, the one thing we can control is our build-out. And we have committed to the FCC that we will build out a narrow-band to IoT network to perfect our license by March of 2020. Because of our spectrum position with the different bands we have, now with 600 megahertz in the mix as well, there are several different ways we could build that network out. Ideally, we’d like to build out 600 in the IoT network. ”

Cable companies and Silicon Valley companies are potentially players

“And then on your question about Silicon Valley, I do think that it’s not really – let me answer broader. I do think that now that the quiet period’s over and for the foreseeable future most of the spectrum is auctioned off in the United States with minor exception, that there – and with technology and the paradigm shift to 5G, that I think we’ll see a couple of things. One is, I think, obviously, you could see consolidation within the wireless industry today with incumbents consolidating in some form or fashion. But I do believe that the cable industry has to take a good hard look at how they participate in this industry and potentially much more so than an MVNO deal. And I do think that one or more people from Silicon Valley will look at it more seriously, not just because of perhaps net neutrality regulations being weakened, but because their business depends on connectivity.”

There’s also the possibility that someone will put together a global network

“there’s a third entrant that may come, which is less likely but still possible, is on the international side. I think that somebody ultimately is going to put together worldwide connectivity and worldwide – both on the satellite and a terrestrial basis. Obviously, the things like OneWeb on a satellite basis with low-earth satellites that could do worldwide connectivity and then you’re going to do the same thing on the ground. So you’re going to end up with possibilities there. So there’s going to be a lot of movement. There’s probably going to be a couple of phases of movement within the connectivity industry. ”

We’ve made a huge bet on connectivity

“By the way, just as a thought, there was nobody in the last two auctions that has risked more capital in the connectivity business than DISH along with our DEs. And in the auction that was – the third auction, the H Block auction, we’re the only major participant in that. So we’ve been the most aggressive in that. History will prove it’s a good strategy or bad strategy. But for the investors on the call, all your investments that you’re making today, whether it be – that you’re looking at in the future, whether it be autonomous vehicles or augmented reality or virtual reality or artificial intelligence or how do we get healthcare costs under control or how do you get productivity in industrial manufacturing or agriculture or what do municipalities do to make their cities safer and more productive, how you do education, how you do entertainment; not one of those potential investors can survive without connectivity in the future. Not one of them.”

We’re building with or without partners

“Okay, Marci. On the network build, our focus today is to build out our network to meet our 2020 deadline with or without partners. So we’re prepared to do it within our balance sheet. And with – again, it’s going be a new narrowband IoT network that doesn’t exist today. So it’s going to attack the market from a little bit different way, but it’s certainly very much needed in terms of the United States. Obviously, I believe that there would be opportunity – I hope that there’s opportunity the next three years where other people – for a lot of different potential partnerships.”

Sprint at Deustche Bank Conference Notes

Tarek Robbiati – CFO

We are living in fascinating times for our industry

“And even if you look at the MVNO world it’s very active, there is a very active MVNO industry in the U.S. and it’s not powered by small players, Google is very active in this space. And so when you really look at it, we are living incredibly interesting I would say fascinating times in our industry, which are very, very dynamic.”

Competitive intensity has triggered more churn than we thought

“So the rising the competitive intensity has probably triggered a little bit more churn than we thought. We see churn to be relatively stable quarter-over-quarter, we were had foreshadowed before that churn would be coming down quarter-over-quarter. But it’s nothing alarming it’s just the nature of where we stand right now in the market and we feel reasonably good. We think we can still take share, we are the attacker from a price standpoint. We have very aggressive offers that are aimed at family plans with multiple lines.”

Leasing extends the life of a device

“So, you do leasing because you see that you can monetize an asset multiple times over its life. Maybe two lives for a phone, maybe three we don’t know. But those phones have an extended life relative to what we were using in the past. And what’s also interesting is you talk about extending the life of a device that we are seeing that consumers’ upgrade their phones with I would say lower frequency then before.”

Verizon at Deutsche Bank Conference Notes

John G. Stratton – EVP and President of Operations

Need to grow revenue per sub

” And when we talk about the wireless business it’s really become a simple strategy of acquiring and maintaining the account and then growing the value of the account. As the market gets to a point of near saturation how do you expand the value within the account. And so things that are obvious like tablets and WiFi hotspot, we call jet pack type opportunities are evident. We’ll continue to look for those opportunities. More recently things like connected devices like smart watches and the like create some meaning — some sort of incremental value creation. But there’s other opportunities as well. We’ve built and created products that are now beginning to scale. So I look at in the telematics space, right. We have huge telematics to largest fleetmatics those are principally in the commercial markets right B2B. So we have spun a product out which we call HUM last year that now is creating some nice growth. So the chance to add devices of different types to tap the network is important.”

Unlimited is for peace of mind

“Data is going to be going through its own pace of evolution and what we saw here was there are those who want to consume high volumes of data and I would say that by and large the tiered plans that we have had in the market did a reasonably good job of covering the vast, vast majority of users in terms of their actual requirement. But there’s another element to this which became increasingly important to consumers which is the whole peace of mind factor, right. And so the predictability of the bill and not having to worry about it or if you have one line on an account that has a breakaway usage which is typically someone who’s 15 years old and just going, so the ability for us to care for that was a driver here.”

Ready to take on the competition

“Yeah, obviously as you said Comcast and Charter have signaled their intent to go forward. I know the guys from those companies have talked a bit about that. I think as we consider that play obviously they’re triggering their MVNO on the Verizon Network. So we don’t have a whole lot of information as who is appropriate, about their specific plans but certainly we’re ready to go. From a — we call reseller but from an MVNO standpoint that’s a business we’ve been in forever and it’s good business. So we’re happy to have it and in terms of the retail side of my company and how we would see incremental competitors in the market, look I think we feel pretty good about our ability to compete. What is our brand position, the state of our distribution and the like, all very solid. Competition generally is good for an industry, it brings and draws attention to it, and I think this has been a pretty dynamic market already. The addition of a couple more guys just bring it on, we’ll see how we go.”

Meaningful 5G deployment in 2018

“How do we work those aspects as well with the goal of being first to market in the U.S. with a meaningful commercial deployment of 5G which we expect in 2018.”

Mobile 5G in 2020

“I think what we would more likely see is maybe the end 2019 into 2020 where you might see the first sort of delivery of mobile based 5G. And remember also to scale you have to seed the base of handsets and so you’ll have that curve. There’s a cost curve, there’s an initial integration that needs to happen. But in the long run what we see in terms of the value there is that where the highest demand on these mobile wireless networks will occur is in the places that are most densely populated. Where 5G works best is those places where it’s most densely populated. For the mobile use case is a no brainer as far as we’re concerned. The detail of it is remarkable, the reinvention that’s required has surprised us. We believe that the work that we’ve done so far and I will tell you about RF design is a really critical point. We’ve run and managed and design these networks a certain way for 20 years and the 5G paradigm is completely different. I think that’s going to surprise some people.”

Virtualization of the network is a big opportunity

“Virtualization I mentioned briefly a moment ago is an area that is just in its early stages. We maybe a third of the way through the journey to full stage virtualization of the network which has significant implications to the cost to provision as we go. The ability for us to leverage things like unlicensed spectrum for example, to do self optimizing networks less touch as the network policy expands to more cells, you have to have the ability to manage it in an automated way. So there’s a huge level of effort that’s going on in that side of the business.”

Biggest shift in enterprise has been to the cloud

“Yeah, we’ve seen other trends in enterprise that are more to do with how large enterprise clients buy. And it’s virtualization no longer sort of needing to host everything in their own facilities, the as a service model, etc. That has been a huge shift in the last couple of years. We expect that to continue because it almost feels generational. The CIA you work with today has a different orientation and then the one that may have preceded him or her and that’s important.”

Haven’t seen anything yet in terms of growth from sentiment

‘ In terms of sentiment about broader growth and investment we haven’t seen it yet. I’m optimistic about some of the changes that we see more broadly in the environment but at this point in time there’s nothing really that’s quite happened yet. Tax reform is still a discussion, it hasn’t occurred, etc. So what we’ll be watching for very closely is as the environment shifts, if there’s a move to greater growth we’ll certainly look to be in a position to capitalize on that as it comes.”

Comcast Deutsche Bank Conference Notes

Neil Smit – President and CEO

Still an opportunity in broadband

“Well we’ve put on over a million subs for the past 11 years. And we had the strongest growth in nine years this year at 1.4 million net ads. I think that there is continued room for growth in the broadband space, both the market it’s about 75% penetrated since we see a market opportunity there as well as share growth”

5G requires small cells

“Well 5G is exciting new technology. I think of it as having two components. One is advanced technology primarily in the intended space as well as higher frequency bandwidth. Both of them come with pros and cons. I think with the advanced technology and the antenna it travels the short distances that frequency does and it’s going to require a lot of small cells, lot of space, lot of power, a lot of backhaul. We’ve been doing backhaul for a number of years and we feel pretty good about that business.

With regards to the propagation properties of the higher frequency it doesn’t propagate walls very well, or trees or other obstacles and so we think there is going to be – in order to get it effectively into the home and an antenna is required to be mounted on the house to get the propagation through the house that’s required.

The – we feel good about our network. We’ve had two outside independent experts come in and kind of look at our fiber network plans with and how they all relate with the 5G and we see a lot of compatibility there, excellent compatibility, it’s kind of uncanny. And so we feel good about our plant being able to service the 5G and the growth of our fiber network, we’re bringing fiber deeper everyday in the business services base especially and we think we’ll have one year capacity to service the needs of the 5G technology.”

OTT has had some technical hurdles

‘I think that what we offer is unprecedented quality of service. There been some problems with the releases of some of the OTT technology and our technology is well-developed and established. I think unprecedented quantity of content, we don’t have — we have all the local content, all the live content and 100,000 VOD choices, VOD and X1 is 85% of the customers use it for at least 20 hours a month, so we’re seeing there no holes in the content quantity.”

Happy about conversations around eliminating Title II

“I think an open Internet, net neutrality. We’ve always believed that an open Internet free and open Internet, but I think we didn’t believe the Title II was the way to get there. So I think the conversations around possibly eliminating Title II are positive. The privacy conversations, we always believe that there shouldn’t be too privacy regimes. And so having one-privacy regime would be beneficial.”

We focus on net promoter score

“Well, we accomplished it by getting — it’s really more of a cultural change than anything and getting the whole culture focused on the customer experience we put in one measurement system, Net Promoter System and everyone is measured on that and paid on that including Brian and myself. It focuses on what the customers want and need, and whether they would promote your service to a friend or family, and we also have an employee NPS score, which gets the feedback of the employees who are fundamentally trying to service the customer. So it’s been a real morale lift for the employees.”

T-Mobile 4Q16 Earnings Call Notes

John Legere

Now up to 71m customers

“Our customer growth numbers led the category again with 2.1 million total net adds in Q4; by the way, the 15th consecutive quarter with over 1 million net adds. Maybe even more impressive, for full year 2016, we added 8.2 million customers making 2016 the third year in a row with over 8 million net adds. That brings us by the way to 71.5 million total customers at the close of the year.”

Sprint is trading like an option because people are hoping someone puts them out of their misery

“Now, going into this year too, you’ve now clearly seen some moves that can only be deemed desperation. Sprint, remember these are exploding prices, these are prices that canalize you and then they explode. So what’s happening at Sprint is, last year’s tantalizing appetizer is exploding, so their churn is going up so they’re bringing in a whole new group of people who need to be educated as to what that is. It’s a fake price, on a network that doesn’t work with CapEx that is not being put into it…The stock is trading like an option, because somebody is praying somebody is going to help them out of their misery, so that’s not the competitive environment, that’s them.”

Verizon’s unlimited data plan is an admission that their network advantage is over

“by the way, the thing that you can learn from that is, they finally agree their network advantage is over. Welcome to the game, Verizon. Let’s compete on price, let’s compete on network, and remember that is kind of the scenario where we are. ”

Dish has to do something with their spectrum this year

“And right now, you know that going into this year, you know that DISH needs to do something. Regulatory wise, they have to do something with their spectrum. Sprint is clearly playing the game for next quarter. And that they’ve got good spectrum, but they don’t have a franchise and they are candidate for being a part of a greater organization either through scale or something else.”

Verizon told MVNOs that they’re not going to get onto their rails through MVNOs

” if you think about what happened, the cable industry has been hoping to use MVNOs on Verizon to get economics to do something in the wireless entry point. However, there’s no possible way they’ll get economics to do unlimited, which has now become the industry standard, and that will compel them. And don’t rule out that part of what Verizon did with their unlimited offer is send a message to the cable industry that you’re not going to ride us to what’s going to happen on your entry into wireless.”

After this auction there are going to have to be discussions about what this industry is going to be

” I couldn’t be more excited about the period that’s going to come up when this auction is over, while we continue to do what we just announced and then engage in understanding what the future of this industry is going to be, which is fascinating.”

Expectations are high for the 10th anniversary iPhone

“The 10th anniversary of the iPhone, which again Apple is very tightlipped about innovations they’re bringing to the market, but I think all expectation is that that’s going to be a very significant step up in functionality and form that will certainly drive switching or reinvestment in your certain carrier during the upcoming year.”

Neville Ray

Been adding small cells in prep for 5G

“Densification, we’ve been adding small cells. We’re just about a thousand small cells now. And we’ve been moving very quietly, but very strongly and thousands more will be ready this year. Not because we desperately need to densify, but because we’re getting ready for two important things. One, 5G, but more importantly and in the near-term, the use of 5 gigahertz spectrum for LTE. And so everybody talks about this LTE in unlicensed or LIA. That’s a fact that that will happen in 2017. And we’ll open up new spectrum opportunities in the unlicensed bands for T-Mobile to leverage in 2017, 2018 and on into the 5G space.”

Michael Sievert

More phones work across all networks today

“And lastly, and perhaps, most importantly, we’re seeing something that’s really changed in the industry and doesn’t get discussed enough. And that is a broad compatibility of phones across all four major carriers. Wasn’t true even two years ago. But today, virtually, every super phone out there in the hands of competitive customers is 100% completely compatible with T-Mobile. And that opens up a brand new opportunity to attract people to come over and switch and keep their phone, which means this idea that people keeping their phones longer should inhibit switching is a historical assumption that’s decreasingly true as time goes on.”1

Verizon 4Q16 Earnings Call Notes

Verizon Communications (VZ) Q4 2016 Results

Matt Ellis

We’re making investments on a 10 year horizon so it doesn’t matter who’s in office

“In terms of your second question, so look there is a lot of changes going on in DC right now. Obviously yesterday we saw the announcement that as you mentioned G pie and so that may have a number of impacts across the regulatory space but I think it’s just too soon to tell exactly where we are going to be. We look forward to working with the regulators for the CFCC or others. The other thing I would mention though you think about that we make investments for many years given the nature of the business that we are in. and our investment are focused on just who happens to be in office today. We make an investments so that for 10 plus years and I think our records stands for itself irrespective whoever the administration is run by and the regulatory regime they were effective and that will be continued to be how we focus on our investment. So I will say we look forward to working with the new administration and the new leadership and the FCC and we expect to continue to be competitive in whatever we environment we are operating.”

We’ve got some commercial scale pilots of 5G under way

“Yes. Thanks Mike so let me start up with 5G, so look we had a good progress in 2016 as we discussed throughout the year. We had a number of technical trials and labs go trials which we completed and so we have now moved on to the next phase of that which is some of these commercial scale pilots that are getting on the way right now in about ten different locations around the country. So we are very excited about the opportunities of 5G brings. And we will see how those trials go and we look forward to sharing progress with you on those as we move forward throughout the year.”