AT&T's Management Presents at Bank of America Merrill Lynch Media, Communications & Entertainment Conference (Transcript)

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AT&T Inc. (T) Bank of America Merrill Lynch Media, Communications & Entertainment Conference September 11, 2013 1:15 PM ET

Executives

John Donovan - SVP, AT&T Technology & Network Operations

Analysts

David Barden - Bank of America Merrill Lynch

David Barden

All right, guys, we will start the next session. Thanks, everybody, again for being here. We are very pleased to have with us coming up on stage John Donovan, who is the head of all network and technology at AT&T, both wireline and wireless; reports directly to Reynolds Stevenson and basically has control over almost everything at AT&T that is not a sales and marketing function. So we have had some really interesting talks about a lot of different parts of the US and global wireless and wireline business over the last couple days. He is here to present a couple prepared remarks. Then we will sit down for little chat. Please welcome John Donovan from AT&T. Thanks, John.

John Donovan

Good morning folks. Let me start with a Safe Harbor statement. No shock to you. I would refer you to our website for additional details today we may be talking about are forward looking and making forward-looking statements. Let me start with where we are on the 4G LTE and provide a couple of highlights for you. We have been working feverishly getting our 4G LTE network built out, but I wanted to highlight for you couple of things that we have done that I think have making material differences in the customer experience. The first is we’re -- this network is performing as the premier network in the United States for reasons that are architectural, so if you look at some of the things highlighted there, a highly distributed core allows us to get lower latency, faster speeds. Our deployment includes the deployment of remote Radioheads, which is really splitting the electronics and taking the normal loss that one gets from the ground to the tower and putting active components in the tower, which affords us a faster speed. We were much more aggressive much earlier than our competitors at getting Ethernet over Fiber for Backhaul, which allows us a software or parametric upgrade for the faster connections and well over 90% of our traffic right now was handled over Ethernet. As a result of technology that we launched first globally is the Circuit Switched FallBack which really allows us to have one radio in the handset which means that the battery power performance is going to be better. And so that we really have a seamless interaction between our HSPA+ in our LTE network, so I wanted the bottom of the slide there today announce that our LTE-Advanced is now ready and so what that means for us is that our network is now ready to do carrier aggregation which is the capability to take spectrum that is not contiguous and have that operated as if it were contiguous block of spectrum, so you get a capability there that allows the better performance for the spectrum that we have.

The second key capability is the self-optimizing network capability and then the last and certainly an important element for LTE-Advanced is a higher order multi-in multi-output capability at both antenna and the tower and then in the handset. So lot of things going on and extending our build, just to highlight on some of the numbers there on our 4G LTE network we are at 397 markets launched. I’m going to update you today that we’re announcing on the right side there that we’re nearly 240 million people that are covered with the LTE networks, so that’s an update on the number there, 397 markets and 240 million pops. If you look at some of the other dimensions there of the network, we have now external parties that have validated that we have the most reliable and the fastest network in the LTE technology. So we’re excited about what that does for our customers.

We are excited it’s been a long road to get here, but we have captured the crown of the fastest and most reliable 4G LTE network. And it’s external parties that are doing the validation it’s not just the internal measurements and as you can see over and over again the more recent independent studies really have us in a good position relative to our competitors. And then just a quick update on Project VIP we’re coming out on the -- nearing the first anniversary -- the announcement of that Project VIP and so we’re on track right now with both the footprint expansion that we had announced last year and with the speed upgrades. We will see that we are now up to 17 markets, 17 states of our footprint that have the 45 meg speed upgrade. The footprint itself has expanded according to plan and we’re also on track with the fiber into the multi-dwelling business locations.

So we have had success with accelerating some of our customer ads in this broadband footprint and I think we’re in a very good shape with that and as well as the wireless network, our wireline network is also award winning. The Video Company of the Year Award by Frost and Sullivan was something that we’re very proud of and so, in addition to the wireless network accolades, the wireline network accolades are starting to pile up as well. So with those couple of quick comments and highlight, I will let Dave take us to the next step. You’re ready?

Earnings Call Part 2:

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