AT&T, Inc. (NYSE:T) Q4 2014 Earnings Conference Call - Final Transcript

Jan 27, 2015 • 04:30 pm ET

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AT&T, Inc. (NYSE:T) Q4 2014 Earnings Conference Call - Final Transcript

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Operator
Operator

Ladies and gentlemen thank you standing by. Welcome to the AT&T Fourth Quarter 2014 Earnings Conference Call. At this time all participants are in a listen-only mode and then later we'll conduct a question-and-answer session, instructions will be given at that time [Operator Instructions].

And I would now like to turn the conference call over to our host, Senior Vice President of Investor Relations for AT&T Mr. Mike Viola. Please go ahead sir.

Executive
Michael Viola

Thank you, Lori. Good afternoon everybody. Welcome to our fourth quarter conference call. It's great to have you with us today. As Lorry said I'm Mike Viola, Head of Investor Relations for AT&T. Joining me on the call today is Randall Stephenson, AT&T's Chairman and Chief Executive Officer; and John Stephens, AT&Ts Chief Financial Officer. Randall will provide some opening comments and then close with 2015 guidance, John will cover our results and then we'll follow that with Q&A.

Let me remind you our earnings material is available on the Investor Relations page of the AT&T website. I need to call your attention to our Safe Harbor statement before we begin, which says that some of our comments today maybe forward-looking. As such they are subject to risks and uncertainties, actual results may differ materially and additional information is available on our Forms 8-K, other SEC filings and on the investor relations page of AT&T's website.

I also want to remind you that we're still in the quite period for FCC Spectrum Auction 97 or the AWS-3 Auction so we cannot address any questions about Spectrum today. So with that overview, I'll now turn the call over to AT&Ts Chairman and Chief Executive Officer, Randall Stephenson.

Randall?

Executive
Randall Stephenson

Hey Mike. Thanks and good afternoon. Fighting cold around here Lori may end up having to handle this call for us. Before John takes you through the results, I want to take just take a couple of minutes and frame where we are. 2012 to 2014 was really a period of unprecedented investment for AT&T and for the industry for that matter. And during this period, we built our LTE network to cover more than 300 million people, we expanded our U-verse broadband footprint to 57 million customer locations and we deployed fiber to 725,000 business locations. And at the same time, we re-engineered our mobile network and we now deliver the strongest LTE signal in the US.

Now at the same time, we've been aggressively repositioning our wireless customer base. We're giving our customers now a choice of moving away from heavy handset subsidies in exchange for lower monthly prices. And as a result our customer satisfaction continues to climb and defections continue to fall and you can see that by our record low annual postpaid churn rate. And we also delivered our best ever full year adjusted EBITDA service margins.

We've also made a significant investment to migrate our wireline customer bases to the new platforms. At the end of 2014, 76% of our broadband customers were on our