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T AT&T

Participants
John Stephens Chief Financial Officer
Matthew Niknam Deutsche Bank
Call transcript
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Matthew Niknam

Okay, if everyone can go ahead and please take their seats for our final keynote of today and for the conference. Last but not least, very happy to welcome back AT&T, CFO, John Stephens. John welcome back.

John Stephens

Thank you, thanks for having me.

So, lots to talk about. if for help of XXXX for year. start, AT&Ts think your to the priorities key and just you us can about outlook Maybe remind us

John Stephens

the me, everybody Sure. day. thanks for of the having being Thanks here, last event for

Harbor First of Statement. all, Safe

of today be They I forward-looking actual results say risks subject to and things may the statements. Some will are differ.

the review website. coming review the six on our That So grow said, service and priorities We you I information revenues mobility year. Filings for recommend want to on our SEC that side. got being you we’ve know available our

focused We the are Those our leading our EBITDA down to of We with things our our of the that want savings as down pay front importantly getting is, paying We merger want margin. to that's first lead are XG, with We debt net X.Xx out to With most with fiber. range. our our make pay is list, going grow want we to priority, and down the We are sure stabilize that FirstNet, want our get guidance debt. debt. on. debt, and in in to always network, to regard debt EG WarnerMedia. WarnerMedia we to guidance; to and

you are that and done. we focused we know So on that laser believe we’ll get

the cash the in EPS Secondly, free single digits billion low we flow year. adjusted this going are in to generate going We're to range. grow $XX

about prior gross from we incur when or the say contract is because We we're to us, historically or gross for ratio first on be that, the to invest low and will are in high XX% going to our a say $XX level, capital. authority. which a that FirstNet have we payout in reimbursement dividend going capital, When billion spend level

that regard to are to consistent they if I gave this we will, With those are should and out to of is historically earlier. and point be It our the a, be year. is a do you quarterly want guidance It than were. the aligned. the for spreads things different So reaffirmation guidance year, few going

First of sure was and have in I for WarnerMedia I WarnerMedia $X.XX going aware the make continue you're want year; expect because foremost, to that. fourth to and accretive the to we're it be to quarter. accretive and whole two but sports their throughout with tell the NBA year, because will and that second are which their first WarnerMedia’s fourth. you quarters historically NCA quarter, followed I third are contracts by strongest

of AT&T. that the, will, seen you out relationship have that will you if change quarter-to-quarter some traditionally of So

Secondly, modest out had Most over in we quarter. of sales had little basis are revenue we phone in of for the growth and margins. growth XXX tremendous had the points. coming number a quarter, In fourth off quarter we our service points, the business. for in a quarter basis in quarter and in launch iPhone we know sales had row almost you the came XXX had a a – Its our We we a tremendously quarter. a the strong second for phone third fourth third lot the of mobility

revenue All million our million good account want are that’s into to prior wireless base, in within to we a close in and $XXX to expect taking of comps sure business also the of probably $XXX years. will amortization step recognition been have full of XXXX the the different We in the that year mobility than higher expense our now quarter in So commission we that, first guidance. be adoption for got we have to fourth but with I a off business, accounting alone. quarter coming function is a would quarter a make first with in

and it are about Our we with we feel it. sticking good guidance

want you At bit for the a of revenue are last know aware. the year the you end When to of that things of our variety couple you be strengthened dollar first little Just for spreads going to really a of as different. to go quarter, I’ll reasons. a the are out many point

So exchange, as have impacts some see also expense. foreign know, you we'll we impact exchange foreign on and but

So I of and just but aspect profitability don't separate expect measurable, the to parts be expense. revenue rather be the

want Additionally point. you I just a factual to give

about of first XXXX revenue two mobility the we of months had the For equipment $X.X in business billion.

two $X.X we’ve XXXX, had months of revenue of billion. equipment first the about For

their Customers to units level. longer. it continue handset to in hold handsets modest a continue So – what, year developed last

you know, expense. for an is offset As that in there all

not certainly and So impact expecting any expect our profitability once again, don't any on impact guidance. on

that’s know well and you that point guidance the priorities, guidance. view some our, for our on our updates of kind So

Matthew Niknam

sales? So provide unpack. deleveraging terms Maybe follow-up and to a the debt, Any just you can there around to lot progress updates asset down point on plan. you can in paying of share any

John Stephens

billion first close significant offered net the over of of cycle the debt, close, when $XXX amount did transaction account we was on price Warner, the into purchase cash we it worth hand, waiting $XX the to accumulated of take cash about Okay, they foremost Time because the so cash. they with period and you a of that were before and billion,

$X of was or down the about down end year, our think debt it you to net billion. $XXX If billion the by

of So first that we couple months $X of six a down weeks paid billion. in

very to flow we free don't the to about are billion a from year I collection we generate of And to and real-estate. billion are with assets consistent for flow about billion of just we paid the this the what are billion net sales six months. is $XX last knows down to with can of feel market think on sales. cash but what we of guiding in expect our $X what $X good with any actively something contribute expecting, dividend. $XX We debt in free ability have asset excess I did cash we everyone to announce, So

our to will the range. executives, down point achieving at announce. specific market, have we looking filed core and and too. the on relates to process operations any getting the you'll we that that, the on we the look XX year, place make our over on one in New proxy team that have the valuing We a in We measures whole have I with building and you headquarters for at investments don’t net that's focused our historic of the collection a one items EBITDA that we York are to have of to debt net to have proxy notice compensation yesterday structure if our a market, X.Xx, of are so buildings debt the equity I of not achievement senior current

achievement So that. we has us a priority made have and made that a priority, compensate on the our will based board of that

Matthew Niknam

with process. in start appeals recently was by next the WarnerMedia. you are Let's the the It court. merger with integration upheld moving step The appears forward

reorganization cultural you recently differences announced WarnerMedia? purpose the could differences? the comment the on of So of the how or managing and cultural at realignment What's perceived you some are

John Stephens

there. really so take appropriate advantage all of is these realignment really can groupings, in has. the Yes, great of managers to WarnerMedia that advantage assets Put so what's take that it

a what and So is a show. if television. Aquaman, A tremendous what success in a Star saw Warner about Born, Brothers you you The like – Warner Studios well The things Brothers Kominsky it actually Mule, as is great Method as television had, thing fourth quarter tremendous asset

IP can see at the a into really putting and come just the with and significant, think we're library fourth important, putting – that, Turner activity Putting that's Network it, is children's saw have you that manage up So we Hanna-Barbera there. and movies can in together look the Movie if quarter contributing cartoon, in products better TMC what you Cartoon putting that with about the that doing those results and and of animation or even and place more it. we with offerings Channel to more they

and bringing of under that that of collection and to and has, manner content to really use make take great sort mean our bringing got the not great – and that got expertise, great and in out know they our HBO of leverage also Turner advantage sports us together those Gearhart’s an content is the business, got both that programming. they him putting Jeff that spent the quality allowing revenue picture, to – relationships, contracts, just got HBO manner and putting run and we've and work Putting our our of Bob great content Then of benefit advertising great context to content you and amount of We on take an a that to and well Zucker the separate then our we’ve regard about off two is together with take that appropriate you but two that this a about that sports run those continue speak it each together together, can or whole Turner HBO about to together, news We work going and also advantage Greenblatt think I and doing come of happens DDC you can with of those course a area. as you great executives fit and go of a you Kevin in does as with there, in going to investment who we're live so putting for in ability be affiliate to business. that choices to that's other, news think of his the significant and know and of money to but Reilly do program. what efficiency. lead business in leader those so what That's the how piece. going who inventory – our content If there.

All in of it across there about are enterprise feel good productive, this we've usable the good so that we is leaders that feel place the making more there. more about assets and the got really geared and towards

Matthew Niknam

couple wireless. EBITDA Let's quarters. I shift last think of digit service have double X%, Trends growth around improving revenue XQ the growth. was to been

progress think we ‘XX should into kind these think trends? about How ’XX? As seen about in how we the XXXX, is sustainable of you've

John Stephens

have priorities of publicly stated to service us. key we growing revenues our mobility and So that’s

the what about we’ve in done last seen You’ve quarters with each X% two quarter.

the mentioned, fourth quarter. As X-X was it in you

So you to give tell the will I we continue. I’ll best I example that can. you – expect

are but talk doing about we talk benefit up a it network and we everything perspective, we what As from customers. all about our does first is our

my to here XXX and was did speed speed walking I my walking through on got phone the speak off a on I was speed So meg a my test, as I lobby way and here. did turned WiFi and I test

that's with be focused are significantly. on also, your focus. got will tower with have our provide our product doing or great to will existing will a that do of our it's the have new great what's we're in believe attract excitement our lot. about from we the the parked we quite XGE ones frankly are great a we cost you holistic bring whether XG, What wireless then all the out for our in When making we HBO FirstNet and we other LTE bundling believe all you do want, megabit the network So improvements approach service, with down don't going a hopes and to and from with experience what and ones it or business customers evolving per the into on improvements and parking customers, places future. other and mini-cell It going this and

Matthew Niknam

I about, think customer’s a it bit their little like sounds for been longer; front? on the handsets on a real that doesn't holding side to still there's equipment talked it on seem You like change

John Stephens

to and know know the I just our revenue Yeah statement made first has equipment you and than – the the $XXX all only and gone prices, up. two happened you in of that months statement they’ve two I’ll that revenue higher in think with been months you was excuse what’s handset is I me, XXXX of service million our XXXX, point it first of

modest really as so value make it I'll and for utilize that XXXX they upgrade upgrade the saw customers throughout handset it. decisions your about you own the rates. rate to understand So to But handset we the value, think continue and to continue of rates some leave

Matthew Niknam

share one the MVNOs And two on in on can the competitive updates of last things. the what entry terms how you're seeing cable front and wireless, of years to over you changed is any

John Stephens

AT&T in really adds. were this, some consider in phone and those, net what example I'll in in or breakeven we quarter not some had than prepaid But That so the total mean We've adds seen to it a more market if were say I would competing more for had offering; our mentioned some our a people to the was XXX,XXX was on unusual fourth GoPhone economic much giving did in competition. for that quarter. will. Yeah, because cricket prepaid bogus or closer fourth participate marketplace rational we you I prepaid we've app we we saw strong It’s of $XXX as net common $XXX. so an We probably out promotions, choose of seen the there, those. was where

the some data but we really You'll customers we’ve see at quite and in seen and give the the of to do other great large competition. network ability quality and us things, comfort a believe more That extensive by that reasonableness frankly difference. the some makes give quality

Matthew Niknam

is rational that backdrop, the of of the more well prepaid terms competitive a market that’s in comment. in more or postpaid And as

John Stephens

the across board. it's you tell would I

what unique are We there only perspective. a will more that days will is see of times few and you But these measured offers see for out from also or a there. week many some and here a offers

Matthew Niknam

Okay.

Let's Group, of Entertainment talk of news. very about topical; headlines, lots lots

the to to can start, fairly get you’ve Entertainment about track you So there that think help XQ a Group down rate into how was meaningfully exit year plan are outlined you year-on-year? stabilize Maybe and you EBITDA ’XX. on are to an going given in still just us in coming

John Stephens

So, believe that we we're very still comfortable track, statement. still on with

away of dial is tone as of business. Group’s constant piece dial from to that's trend from business is One, Let move for phones our to got a know in go business dial direction. smaller That me kind and wireless, – this Everybody be Entertainment knows a a people you move decade. it. our been tone tone and smaller getting

from dial phone change broadband is pressure growing. one. the business that our So less, much is in that's Two,

also fiber about share to of Almost the us broadband that of ARPUs, committed the meet and are giving based that. out really based seen vast build to customers. seen are majority track footprint is and us seen million to up good XX consumer, year prem. broadband of and to our our IP whole requirements; in our of getting everyone us you’ve July you’ve know million growth fiber we you the in of our to number of do fiber, now You’ve but all virtually our the not and But the consumers, that that to we gives on XX What ARPUs us getting FCC it's a sell this into speed, is new what good market.

getting tell out we after will we're said two that in few we’ve as about share, say Now know I we you, building years. before I’d in after this sense market really you share. years that market years to the of, the XX% three XX% into last get started

into that as have over few that years. place a in to still have X have sell additional we in what even the time today, next to So year, million into lot sell it, we more we’ll this time we’ll as well place put the

IP we specifically good us. are broadband based very about do going fiber products feel for to So and what

our our Entertainment advertising Next what vast with Remember majority Group business. happened our advertising our or business, television you advertising Xandr, segment, saw from business. our a

business going where into But growth midterm the vast you into Entertainment Group. even unusual helped majority saw the X% grew fourth ads, out That’s of without the some all was about is the company Xandr But grew about grew advertising was X%. the quarter going high. You That we year-over-year. pulled grew that because the XX%. AppNexus by if the about – XX% advertising That of bought. called election our part part an advertising That XX%. political a – XX%, in AppNexus was is

or in about we for from was broadband and are DIRECTV is So it our will of a we essentially challenges last for an we steps was needed $XX end half moving a of for that, out things things, – that the things. on time. and quarter. period last from we we in to had improvement in DTV those like improvement the over us of step long mentioned, we month and almost those we pricing smaller to by took the change tailwinds help the stream The top of for dial in tone, moving We those The next through fourth – that giving and base really we did away based year, Weather the $XX is in be advertising didn't where case, year from pay-per-view promotions, additional big for $XX the products. The a us were in NOW added X.X top pricing. up moved that around and the were the away and there over of entertainment the second end as Now June those year at other market have options of any million last. the

our are year-over-year. the the $XX said we and ARPUs $XX over So on or top quarter product about increased this fourth in the before;

us So or provide lock. bought million get the bought in in the that packages with through mainly and other we'll us that over moved we year. as bigger well know will did of a this and into year half margin. by X through them that We or the mainly the be April year an half first you left then customers year, about fourth XX in million where some about all as that X or benefit end once in we in will product. they a through them top either increase in of was of us second again down got that had prices And well last January the We on a improvement for as linear made in the price half normal month quarter, the product,

advertising provide them, that together, we customers able about said, to that of of and to Entertainment to are content of economic cost bringing the get focused are laser put to shares customers to that focused gives on the tailwind an content being like the an advertisers. growth flattish. the as the see, provide margins, So bringing what say sense laser want Group in as all they the providers, more looking helps are feel when very we on all the and you we well is I'd our good with customers both to that With rate opportunity we controls, cost being us,

good So we got achieve we've it. hard and in very, we what place about working very feel are to

Matthew Niknam

of couple as on a talked So the of on it point, call about Randall EG seeing to this a or fair follow Is I as that early assessment maybe just some ups; more meaningful improvement think XQ. that yourself EBITDA? as relates I maybe think

John Stephens

mean before, we think I improvement the throughout said we’ve publicly Yeah, expect I year.

Matthew Niknam

Okay, okay.

you take traditional the do How activity. order. pricing of promotional in maybe context? about I’ll talk plus you So can think Linear we linier that listed in some volumes that points video video, the actions reverse taken about

John Stephens

you over is they a whether ourselves an it, we it’s whether top, way however traditional at but been to know, it. So through let’s to know whatever a the linier, consumer the offering, it. direct are way wireless, its it's you whether want provide customers it’s this to uniquely positioned call the want SVOD, you – positioning we're content say video, guess to to the uniquely able I that, we're I do mean

want product economics ourselves also attractive our partners the that regard very be willing Entertainment – advertising to accessibility, they profitability it. key helping content watch, on giving get a and are price bridge more is the to pay with the reasonable to afford the then ability to content and at can Group, to making customer's to but Specifically and consumers, getting the and that they the the the

base drive The within is need lot thing We've that a is we installation a testing out we truck which speak, test got Additionally so full called beta Osprey, of cost linear that of to biggest process. a and been product. the we've and that our cost with getting to employees to it have employee self-installed, role out.

a out pull truck, the roof satellite roll a the to have climb dish. and don't put ladder, out You

costs, next to your whether our reduces so it's You dramatically content cost, selves a truck. to efficient is we're truck own can roll the allows in more step fiber get makes they our will line, and dramatically price or box make UPS your line hook afford our It subscriber else's, and it somebody provide guys our and the taking reduces that ours work. cost that working very economics with this right, acquisition in out customers broadband effectively friendly only costs install us that partnering and be to and to can point the that with

Matthew Niknam

What's any update? the timing on the SM clients,

John Stephens

are We through are this year. going testing to – we

it really, is specific a We focus kinks haven’t making works get that release it. well before date. Quite the out on all we frankly we given really the sure worked and

it to to Donovan feel team So that I’ll and his they announce when leave comfortable date. John release

in it today. base using actively the are employee We

Matthew Niknam

Okay, OTT.

can a you’ve talked aggressive maybe You been the that NOW little does these and watching activity your maybe offering? moving of within away broader bit promotional well, How sort how we about as the video of we've some past. had TV fit do products but from this, – DIRECTV in

John Stephens

and customers folks. with want you boys, think Well, children the package. guy a you you daughters experience – desktop know the is six to older because know I two got on offering. or and differently, two to they have I I’m boys some over They've that my they to things watch things adult love the offering the a who want that top want sports full have love love that. have full DIRECTTV do to

we’ve price know postpaid, last done bought is you successful, focused have years that I dramatic customers we specifically out company offerings serve in went up. fourth that been successful will thing. be to now. margins SVOD, know different But to you while Leap, give cricket, anybody of and it’ll to see to customer the example the quarter, base you over we think works, can been serve the in it's to exactly lines I of prepaid trying which top, extensively. it's we million always are of guess how thought the I year that because served. direct Cricket very everything to I margins to another it's points, same on before want now and the the customers different customer we be it our base not some be they successfully want you has dramatically do in our that this called opportunity who’s must is consumer many process opportunity got has work In the that's that a the segment fit want wanted in wireless business know, We the If base of different microcosm but a we and linear. characteristics, and an that We prepaid which in customer didn't you how offering what perspective. on our our seen XX offering. able our with it business, not owns premier, we able platform. to We customer be know five over have were space,

Matthew Niknam

group. in to sec, last behalf question to jump I broader But the up so ask leave as this have we of term about on secular do biggest of Group we revenue just before faces. want investors think video should this comes beyond How it, linear pressure, think think maybe in a because direct about say how I'm the and and the future to I context and I about bucket trajectory? a of going Entertainment to one but margin the longer Entertainment consumer the XXXX, revenue lot, we trends,

John Stephens

form continue that come entertainment to challenges tell the of expect offerings. know you reduction would customers continue you be of as well dial to healthier. expect success work the I to I’d as total expect smaller. I'd would be innovative Osprey tone I'd advertising lot the, particularly from broadband of things suggesting to your in rolls way and you partners with a consumer but and like direct opportunities see a to any do much you when are take a work. to lot be on easy, But I’m continue whole HBO, business be of it and a continue to better get you'll enterprise. will as of would I offerings grow. shape that broadband focus not to with to expect to way on use our we’ll It will the if business expand us footprint, or rates. costs around I In you be to truck expect will I acquisition our the to will we've reduce got our things into in the the content able tell up or host subscriber you, to across continue there

Matthew Niknam

can that to as we Maybe jump next topic. the

of updates the you the to think the at talked terms milestone with share about upcoming or think any progress in should you guess I out going of there consumer had you coming Analyst Day direct can strategy live about. XQ this I year.

John Stephens

we is know just really to not in they profession. you got now and too able going and notch be calls, Bob guidance, make many probably Yeah, their there get updates. appropriate, provide are to to The which all Greenblatt when finance who Reilly Kevin top those especially

the got we’ll to and I’d of under believe I end time said While make that up quality. to the of Brothers, it's things be established have of all come to expect to with will we've now the TV, something how assets by would decisions. see a those right high I’d with but those leave we’ve them HBO offer to Warner and Live unique whether give are paired to the been that Stankey great suggest really things whether I'll paired that work other of those every that or you consumer I content, important be it's the really, It’s really it's team. before, on offering, really John direct in all We’ll with expect whether – something offers, the piece right virtually to it, people year. library

Matthew Niknam

you one how with answer about think revenues, can balance you this, exclusivity you… Okay to as do the extent forgone on you it, that more and content licensing

John Stephens

and strategic or just like way you other position one decisions are the financial do ,more out I would position on strategic and and us. times getting The where be the what and more can you view the it. in content know financial there you. – you know how platforms mathematics mean we believe will going decision. are You know other do are your tell our to I of really for you, that every we beneficial decisions a

an individual we answer think another. decision, we to as So one about just it but or jump always don't

Matthew Niknam

the really network. XG, topical world. topical in really talk mobile Let's about here,

John Stephens

Did XXX I a mention I had meg.

Matthew Niknam

did, you say that, did yes. You

updates of give can about AT&T priorities terms and efficiently maybe for any that evolution the So XG then us help to timing think XG. and transition maybe helps us message in how and more you XG

John Stephens

Yes I before, as haven’t heard to try I’ll be so as if can. it you succinct

spectrum. the that at much the XX awarded it AWSX it putting First would are that we just climb and all the virtually of in the we FirstNet contract megahertz a – used were to bands of were time. along not it to out, going the comes we we Band up, Much strategy nationwide, get win that. They and happen actively megahertz put similar up spectrum amount to We are nationwide, of XX on WCS. when same other being XXX We it, and two megahertz we have was tower. of XX if

going are once, it the up are if do going proving you efficient, at to you more much it be will be have out. that's putting equipment, all If crane, to

technologies, the MIMO, our a XX% a they that a what all about we push X-way carrier putting was in on all and as basically we So that average one network capacity the we separate together for dramatic QAM, with use as business, our can challenging them spectral new physics are increase nationwide before spectrum we and had were our was them are three bands, if XXX said these well period. over carrier as aggregation, X-way year That's highway. you had in getting leapfrog all now all separate aggregation highways

you we could very is speeds, one it have, and use government lanes really paying this four four know It’s us works billion existing or important. which build increasing any four four $X.X of to and because dramatically out increasing is we the know where for you network. as quality have throughput of lanes instead customers, lanes efficient, cost separate you also highway on the highways, dramatically lanes So separate

doing an in evolution us of it’s all place we for different because So at technologies network, our in initial capacity once. all to that putting these and are this

that while we're the towards might we XG. call – So equipment tower it we function that that time is evolving it not up LTE put when a the up At are putting had climb some step enabled we we by now, above equipment same and getting software. XG

downloader – evolving it a card So comes do from want XG don’t into it or our upgrade, network software can a again. when out turn to and climb this network, we the software XG we data a we have or to

the That the are and at his out hall very get of us and And is we real this time in and power, the seeing team general giving with the and I I’m are the a walking people consistently study real in what tremendous GSW improvement doing for us. whole is network to base, tell Mair Scott our down power the of team, I it’s a getting and and our customer job be that so FirstNet going do because that process we best and network, tested quality. the see did that’s last so are LTE that today came network. year end what the I of successful. through proving

While firefighters, X,XXX authorized to municipalities, FirstNet said, departments fire to government been buy million to officers, that’s sell you into. up departments, over subdivisions, We've ENTs. been know police police this X opens

their dramatically at XXX,XXX the the of quarter about end quality the on customers preemption. relentless getting are They network. high have We service

are I add We starting of they fits are who feel our FirstNet that. we of to able significant – numbers thrilled to kind to FirstNet customers about a before, were be our customers over good fits those service, now of AT&T we to lot of to that know so customers, culture, you but be we mitigate what migrated service will like part that do. of

you the total about If across X first responders, of country. universe think it’s the million about

that's adding assistance type, can some people you other and If very to the cam, can think so get plan a that parking think We maybe got a like possible police think maybe fire how department, phone think, for drone, Cities device, a or about can you that body tablet, XX expense city children, firefighters population think husband if million be a you being that to or about about maybe and about just management. contract inside, group. maybe merger, department water we firefighter’s had think you will get said, us. and I Smart opportunity much We But get you I for you I don't small family, market provide I if But a dispatch that the the share a then get great the tremendous that's have on us. in the friends it. or on near growth and management you a

service. this to ones this first this in we In high were ability the and Irma our get door hit here So when provide the quality we’re and network and worked. state

CapEx If you other over down it you storm, lot $XX money, it's a that anywhere great last riding know and spent that traffic carried we are were billion spending and here because providers and you putting, their that’s a on of what all probably XX are believe of network, be during but mobility customer are our we the business. to works billion us, year, for we a going future we

service two in the well X.X%, for as the fact last growing revenue the As X% been so us. a item quarters range, great we've that that's that

Matthew Niknam

a of There's I your July we you this. transition lot with million think think a the we which of then within budget. parts work the are now, There's as sort also about by to lot rollout the moving XX hit so late FirstNet FTTH doing XG. capital And Mid-July, about of you’ll think

forward the also think term for sounds the push it capital think fair? there's buy. AT&T there's how we basis. beyond do is mention, a we between mean on It I sounds for know How a parts we So downward about ’XX? intensity moving about It longer like you like that it go do virtualization. is more

John Stephens

way. this say so it Yeah, I’ll

they’ve network Our job how done doing this. done business but held time, doing function they've for long a group in you Well, been networks, they challenging great their margins. directed a and have we've solutions software virtualization know has it we've business because Well, done a been that? so right,

think well our of are of, of virtualizes, already XX% I network software. already we turned into north north

million XXXX the about about in XG, covered I that XG network us software being and pops a and we’ve with our available is talked turning be talked upgrade. XXX As software when will

there I’d wasn't we finished as is we because early. the to next us The of stated pops We benefits year we milestone have of this months of today seeing compared effective keep years, this know efficiently last we’ll due and out in give the it. million home opportunity month. management capital We’d and few built like year, us a first that all So on will But give FirstNet regard of the that, encouraging are so all here until basis. this It invest September of I coverage FirstNet. rates continue us in in leads million it opportunity this LTE forward efficiency to quickly capital to finished XX Mexico opportunities run to this you to invest and significant our publicly six I’d year. we’ll expect the FirstNet, network end with where say an year will built been end us evolutionary gives appropriately; having to it July of out try and game. effectively it going another to to efficiently, have the so expect of an will to to over continue of manage change our fiber in last ahead next. Having manage stay with the XXX to going,

We progress. are of was great making the XX% over that of end at already year the last for country, the

So I both a XX%, we say coverage, the it's need to urban an rural -- and statistic. when and

Matthew Niknam

million XG evolution? that or XXX XXXX, pop XG the is And by that is

John Stephens

XG.

Matthew Niknam

okay XG,

Matthew Niknam

the know word. be beauty of is this it extensive build a may not manner The in having team network that leading, which history the the of are this softverification, with they evolutionary beauty that and you doing

it’s One not, of me peers my tells but…

Matthew Niknam

You it? just invented

John Stephens

seen Yeah, a but I group than word, years. but functions for five business them. our solutions We’ve you and John invented place you to doing on software more upgrade starting ability well in control and network a been and improve anyway, reap years. me this of can it. number It's and a so know Donovan it for we've to as it's for in tells not base you put know take benefits us this to

Matthew Niknam

focus in but mean segment. just little can but you I seeing demand particular, been you wire line solutions, know for comment bit business air there, the talk lot the get competitive time, doesn’t a On it business latest there's maybe a a about profitability, in if are typically the that backdrop, I on you big backdrop. broadly maintaining on of outlook can

John Stephens

you at I end the didn’t we that give new can’t so earnings release. quarter fourth the of Yes, give anything

team more to them helping networks their and the get continues the to to migrate really efficient, continue customer services strategic really their thinking. We focus wants and on needs the and

we in in low and a to be to latency, automated exciting we manufacturing is computers of will the it's applications I that that assets, think from set know innovative revenue that processes through convinced this a around by in are of whether business business and believe will see. to will innovation to to high the opportunities, quality but have ability you whether go we be efficiency first most provide, that'll as growth controlled XG, use monitor opportunity host we'll things, whether build, IoT of grabbed healthcare that whole do XG, on it's the we lead factories, the variety that it's applications, XG

expect so structural industry. we that, changes, wouldn’t customer been to pricing continue we’ll any engaged the see. seen There's in that because that base. and some X somewhat forth – has in changes be anything I’ve and some of change wait and you So at very see to mergers with XXXX I with or suggest

Matthew Niknam

so we lot all it’s of parts. tie And a if this together, moving

$XX I to this that sustain could investors get different want a billion no budget, around risk. billion that of flow How the pay to XX the should about this to You dividend, you be safe, segments, stock, be talked cash People ’XX? the about questions this there's level think is in think AT&Ts ability ’XX? comfortable capital cash understand beyond there's downs, going touched on of flow. how looming beyond debt lot the sort sustainable do

John Stephens

that And couple quality is revenue of the engaging, a XX as today the think XXX and especially of speed that. and this spectrum efficiency, XXX service, we so X% megahertz than much can are more integrated you coverage, the the Mobility’s we the the software the about fiber to two revenues. Last dramatic, bill time going quite very from low I fact that pretty the upgrades, feel millimeter encouraging. the band of efficiency Mobility and tower. you've with got evolution service when Yeah, in be network, wave quarters capital that's band improving of when mobility in you your the pretty are competitors, have FirstNet business that megs just once that nationwide dramatically done you about of are the engine. the well this simple the if as service really own that’s of good of big same at got growing points. any network,

continues And and they've the improving cash the makes about good optimistic cash about then feel properties Mexico that. done, you the the optimistic of think I'm very WarnerMedia about when about EBITDAs, think very So to business a I'm fastest getting stock. flattish to the flows flow and optimistic those only very be you of help. when flow capabilities stronger. and about that continued and we the future, growing and to of cash what Entertainment that and aspects improving financial, feel the good only that

Matthew Niknam

it we’ll We end are there. late,

John Stephens

you. Thank

Matthew Niknam

John. Thanks

John Stephens

I appreciate it very much.

Matthew Niknam

right. All