SEC Filings

425
AT&T INC. filed this Form 425 on 12/06/2016
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I think the industry is about to say, we need to bring 5G forward. Verizon is pushing this really hard and we are pushing this really hard. And I think 5G is going to be pulled forward. We are all going to want to pull this forward. And we announced yesterday kind of the results of our first kind of live capability with 5G and working with Intel we had like a 14 gig performance delivered. Now that was customer, okay, so don't go out of here thinking you are going to have 14 gig service broadly deployed.

But we do believe a ubiquitous 1 gig network is eminently achievable and by the end of this decade you will be seeing these kind of services turned up. I think we are all going to be kind of in a push to bring that forward as much as possible; we are trying to get standards set and so forth. But as you get to a 1 gig plus kind of ubiquitous wireless service of course that can be a fixed line replacement.

And I would tell you that our target architecture as a Company for fixed and mobile broadband is wireless, obviously. For fixed broadband our target architecture is wireless. We are not there today, but that is -- every time we do planning and engineering it is around a targeted architecture of wireless delivery of 1 gig plus speeds to the home and to the business.


 John Hodulik - UBS - Analyst

 Maybe we could talk a little bit about the wireless market in general and how do you view the competitive intensity that we are seeing today? We had some aggressive promotions from some of the smaller carriers around Black Friday. Is this a departure from what you have seen in the past? And can the new capabilities from I guess both DIRECTV and Time Warner help you compete in that environment?


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

 Yes, I can't tell you I notice much difference this year than I did last year. It is competitive, it is very competitive. The way we approach the market and think about it though -- kind of our top priority in the world of mobility is the B2B space, selling to business customers. And we have made some rather significant investments in the B2B space. And we are having a lot of success in that area.

In fact if you look at our mobility growth, well over 100% of the growth comes out of the business segment. So we've invested heavily there. We have invested though not just in mobility but mobility being the key element of the products that you sell into enterprise business.

Get from a mobile device onto a private network, a VPN in our case, into whatever cloud environment you choose, whether it is Amazon, do that on a net bonded approach, Amazon, Microsoft, Softlayer, you pick it, we have net bonded virtually all the major cloud providers back out across the network into a mobile device without ever touching the public Internet.

And to the extent you can do that and have a secure solution end to end is proving to be a big winner in the market. So we are having a lot of success in the enterprise space with our mobile service combined with VPN, combined with connectivity to cloud providers and that continues at pace.

As you move down market then to the consumer, we are obviously focused at the end of the consumer that is a heavy video consumer, broadband user as well. And our objective is to penetrate the home with all services and integrate all services, and we are having a lot of success. I won't repeat it, DIRECTV, broadband, mobility.

When we have that product set in the home, that capability, our churn rates are at historically low levels right now. And then you keep moving down market, I will tell you at the low end of the market, which for the last couple of years has been feature phone driven for us, it is where it has been hypercompetitive. And we have -- look, we confess, we have lost share there. And I think T-Mobile has done a very nice job of taking subscribers at that end of the market.

We went out and made an acquisition and acquired Cricket, I think it was 2014 -- I lose track of time, John. John and I were talking about the first deal that I worked on back in 1996 was PacTel. And the merger synergies were could we get caller ID penetration rates in California up to where they were in Southwestern Bell, that was a big deal. You wrote about it, right?
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