SEC Filings

AT&T INC. filed this Form 425 on 12/06/2016
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 John Hodulik - UBS - Analyst

 Maybe starting on the last point with Time Warner. Can you talk a little bit about the regulatory process as you see it now and maybe how that may change with the new administration, timeframe, process, that kind of thing?

 Randall Stephenson - AT&T Inc. - Chairman & CEO

 So the regulatory review process, this obviously will require extensive analysis and I trust review by the Department of Justice. And so that process has begun. And there is a standard process for that.

What I would tell you our expectation is is this will be a unique transaction, it will be unique from anything we have given of scale to the Department of Justice before in that we are a distribution Company, we distribute content. Time Warner is a content creation company, they create content. We do not compete.

This is a classic vertical merger and the day after we close this deal there will be no fewer competitors in any market in the United States than there are today in distribution or media and entertainment. So as a vertical merger we think this is a pretty clean deal.

We think the review process should be fairly straightforward and an analysis of this deal based on the facts of the law, we expect a good outcome from that. To the extent that there are concerns with it, there are issues that generally can be addressed through conditions and so forth and that is traditionally what happens with vertical mergers.

As you think about the FCC, we don't even know right now whether we are going to assume any licenses from Time Warner, we are going through that process. They own a number of licenses here and there, everything from walkie-talkie, wireless licenses to satellite licenses on bands for CNN.

So we are going through do we need to assume any of those licenses. If we assume any of those licenses obviously it will require an FCC review. If we don't assume any licenses there wouldn't be a filing required, but it is too early to tell whether we are going to do that or not.

 John Hodulik - UBS - Analyst

 Randall, you talked about this mobile video product, is that eventually -- especially given your spectrum holdings, does that eventually evolve, given the technology, into something of a replacement for fixed service both on the video side, which is where you seem to be heading now, but also on the broadband side?

 Randall Stephenson - AT&T Inc. - Chairman & CEO

 Yes. Think for a moment back to 2007, AT&T launched the world's first iPhone, right. I think even in 2007, reflecting back on it, you would have to say that first iPhone was probably a 4G product. We launched the first iPhone on a 2G network. And everybody knows the story, within about four or five months there was, oh my goodness, bring forward 3G as fast as you can bring forward 3G. Bring forward 4G as fast as you can bring forward 4G.

The industry has literally gone through two multibillion-dollar network upgrades within the course of about five years. Bring Time Warner's content to bear, think DIRECTV now and this type of platform, and the iterations, the innovations that we will be doing with content in a mobile device. And I would tell you even what we launch last Wednesday I believe is a 5G service being launched on a 4G network.

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