AT&T(US:T)2023-06-20 13:54Summary of AT&T Inc. Conference Call Company Overview - Company: AT&T Inc. (NYSE:T) - Event: Bank of America C-Suite TMT Conference - Date: June 20, 2023 - Participants: Pascal Desroches (CFO), David Barden (Bank of America) Key Points Industry and Market Context - The U.S. wireless market is experiencing a normalization of payment patterns post-pandemic, with consumer behavior returning to pre-pandemic norms [5][6] - The overall industry construct is described as healthy, with subscriber growth and record revenues and profits reported in Q1 [5][6] - AT&T's average revenue per user (ARPU) is growing, and the company has one of the lowest churn rates in the industry [5][6] Financial Performance - AT&T reported record first-quarter wireless service revenues and profits, with a growth expectation of over 4% for wireless service revenues in 2023 [11] - The company anticipates around 300,000 postpaid phone net adds for the current quarter, influenced by a government contract loss and slight churn increase [8][9] - Free cash flow for Q2 is expected to be in the range of $3.5 billion to $4 billion, with a target of $16 billion or more for the year [31][32] Competitive Landscape - The competitive dynamics among major players (AT&T, T-Mobile, Verizon) are rational, with price increases indicating confidence in the market [12][15] - AT&T's strategy focuses on maintaining a disciplined approach to subscriber growth, prioritizing profitability over sheer numbers [12][11] Fiber Strategy - AT&T is prioritizing fiber investments over fixed wireless access, believing fiber to be a long-term solution with better economics and lower maintenance costs [48][49] - The company is the largest fiber provider in the U.S. and is expanding its fiber reach, with government subsidies expected to support this growth [49][50] Enterprise Business - The enterprise segment has been a drag on revenue and EBITDA growth, but there are opportunities for growth through fiber expansion and new services enabled by 5G [55][56] - AT&T is focusing on small and mid-sized businesses, which have been under-penetrated, and is exploring new connectivity solutions [55][56] Miscellaneous - There are no ongoing discussions with Amazon regarding partnerships, and rumors about such collaborations are dismissed as unfounded [21][24] - The company is not considering acquiring DISH, as it is focused on optimizing its existing assets [24][25] Conclusion - AT&T's management expresses confidence in the company's strategic direction, financial performance, and market position, emphasizing a disciplined approach to growth and investment in fiber technology [12][49][55]