AT&T is focused on closing the acquisition of Time Warner, tax reform, and getting FirstNet ramped up in 2018. Inside Towers reported company executives said, despite the DOJ lawsuit seeking to block the deal, AT&T believes it can prevail. Company CFO John Stephens told attendees of the UBS Global Media and Communications Conference on Wednesday the carrier looks forward to getting the trial going “and being successful.”
In Congress, the Senate and the House passed different versions of tax reform legislation; they’d need to hammer out differences in conference committee—members have been announced. Asked how the scenario might play out and affect the carrier, Stephens said the bills are similar. “We feel very optimistic about the opportunity to get this done and to get it done before the end of the year,” he said, according to a Seeking Alpha transcript. Bringing the tax rate down to 20 percent, he explained, “will generate demand for our services, and we’re most excited about that opportunity. It will help us grow our business through revenue growth.”
The company previously announced it would increase investment by $1 billion in year one, if the U.S. tax rate is permanently lowered to 20 percent. If a new bill isn’t signed into law, the company “will continue to push for meaningful tax reform in 2018,” Stephens said.
Concerning FirstNet, 33 states and two territories have opted-in so far; they have until December 28 to decide. “No one has opted out, so we feel very good about that.” In January, AT&T would expect the FirstNet authority to issue work orders. AT&T has built plants and completed engineering work and sell sites over the past year. More spectrum from opt-in states means a “significant coverage expansion,” according to Stephens.
“We view this as a real significant game changer for us,” said Stephens, in terms of overall network quality, network capabilities, [and] the opportunity to do Internet of Things and connected devices to sell any of our services,” he said, according to Seeking Alpha. The first responders are an “underserved” segment for AT&T. FirstNet opens up a new sales opportunity for the carrier. “Our focus is going to be getting really innovative devices and equipment,” as well as selling drones and tablets that work on the police cars, and body cameras and phones, he said.
December 7, 2017
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