1
00:00:02,560 --> 00:00:07,040
Speaker 1: Bloomberg Audio Studios, podcasts, radio news.

2
00:00:09,880 --> 00:00:13,240
Speaker 2: Welcome to our Bloomberg TV and radio audiences worldwide. We

3
00:00:13,320 --> 00:00:16,200
Speaker 2: bring in AT and T CEO John Stanky, the company

4
00:00:16,239 --> 00:00:20,599
Speaker 2: reporting results this morning that showed higher than expected subscriber growth,

5
00:00:20,760 --> 00:00:24,720
Speaker 2: though some analysts noting customer churn and average revenue per

6
00:00:24,840 --> 00:00:28,240
Speaker 2: user showing signs of strain. John, It's great to have

7
00:00:28,280 --> 00:00:29,800
Speaker 2: you back with us, you know.

8
00:00:29,960 --> 00:00:30,680
Speaker 3: With your story.

9
00:00:30,720 --> 00:00:31,319
Speaker 1: Thanks for having me.

10
00:00:32,360 --> 00:00:34,960
Speaker 3: You're welcome. It's like a simple story. You know.

11
00:00:35,479 --> 00:00:38,519
Speaker 2: The data from the quarter is very clear there was

12
00:00:38,560 --> 00:00:43,199
Speaker 2: an element of promotion and marketing and deals that drove it.

13
00:00:43,320 --> 00:00:44,720
Speaker 3: But how would you summarize it.

14
00:00:45,320 --> 00:00:47,960
Speaker 1: Look, we had really strong growth, as you indicated, and

15
00:00:48,000 --> 00:00:50,720
Speaker 1: we're really comfortable with our growth. As I think you're

16
00:00:50,760 --> 00:00:54,800
Speaker 1: probably aware, we've been focusing on customers that want to

17
00:00:54,800 --> 00:00:58,880
Speaker 1: buy both wireless and broadband from us and what we

18
00:00:58,920 --> 00:01:02,400
Speaker 1: can do that and if it's promotional, that's a good

19
00:01:02,400 --> 00:01:05,080
Speaker 1: customer to pick up because they have great lifetime values

20
00:01:05,120 --> 00:01:08,640
Speaker 1: and over time they'll churn us and they'll address that

21
00:01:08,800 --> 00:01:11,319
Speaker 1: very issue that you alluded to, which is the increasing

22
00:01:11,440 --> 00:01:15,319
Speaker 1: churn in the industry. And we kind of anticipate as

23
00:01:15,360 --> 00:01:17,640
Speaker 1: we acquire these customers, we're going to see a little

24
00:01:17,640 --> 00:01:21,880
Speaker 1: bit of hardpoop pressure, partly because we obviously give them

25
00:01:21,880 --> 00:01:25,840
Speaker 1: a better price for their loyalty, and over time we

26
00:01:25,880 --> 00:01:29,680
Speaker 1: move them up on the continuum services we sell. So

27
00:01:30,319 --> 00:01:33,200
Speaker 1: excuse me, buy and large. We feel really good about it.

28
00:01:34,680 --> 00:01:37,000
Speaker 2: Oh, John, I don't know if you have some water

29
00:01:37,040 --> 00:01:38,560
Speaker 2: there with you, Let me give you a second, just

30
00:01:38,560 --> 00:01:40,920
Speaker 2: to take a quick drink if you need it. Of course,

31
00:01:41,000 --> 00:01:43,839
Speaker 2: in the quarter, and we've discussed this with a number

32
00:01:43,880 --> 00:01:47,480
Speaker 2: of the carriers, it was iPhone seventeen. You know, I

33
00:01:47,520 --> 00:01:49,800
Speaker 2: was there at Kubatino Apple Park on the day of

34
00:01:49,840 --> 00:01:53,000
Speaker 2: its release. Can you give us a real term sense,

35
00:01:53,240 --> 00:01:56,480
Speaker 2: even if it's from the promotion perspective, of how big

36
00:01:56,520 --> 00:01:58,560
Speaker 2: a fact of the iPhone seventeen was for you?

37
00:01:59,200 --> 00:02:01,600
Speaker 1: Well, I think it's it's not a huge factor, but

38
00:02:01,960 --> 00:02:04,960
Speaker 1: clearly there was a little bit of suppressed activity after

39
00:02:05,000 --> 00:02:08,240
Speaker 1: the last iPhone cycle a year ago. Maybe some folks

40
00:02:08,240 --> 00:02:10,240
Speaker 1: anticipated it was going to be a little bit larger

41
00:02:10,480 --> 00:02:13,640
Speaker 1: customers were seeing if it was really frame breaking and

42
00:02:13,720 --> 00:02:18,000
Speaker 1: change and concluded possibly that it wasn't and delayed waiting

43
00:02:18,040 --> 00:02:20,600
Speaker 1: for the next cycle. And I think you can only

44
00:02:20,639 --> 00:02:24,000
Speaker 1: suppress that activity for so long, and now the new

45
00:02:24,040 --> 00:02:27,239
Speaker 1: device comes out, people see what it is. So there

46
00:02:27,400 --> 00:02:30,680
Speaker 1: has been an increase over last year and maybe some

47
00:02:30,800 --> 00:02:33,960
Speaker 1: other previous years. It's not a record breaking cycle, but

48
00:02:34,000 --> 00:02:37,280
Speaker 1: it's strong and we're seeing that as a result. But

49
00:02:37,400 --> 00:02:40,000
Speaker 1: I don't think it's anything dramatically out of pattern, given

50
00:02:40,440 --> 00:02:43,680
Speaker 1: the suppression we've seen in the market, and we were

51
00:02:43,919 --> 00:02:46,519
Speaker 1: very effective at working through at four hundred thousand over

52
00:02:46,520 --> 00:02:49,880
Speaker 1: four hundred thousand postpaid vone netads. It shows we can

53
00:02:49,919 --> 00:02:51,640
Speaker 1: compete in that space and do well with it.

54
00:02:53,040 --> 00:02:55,320
Speaker 2: If you're joining us on Bloomberg Television and Radio. We're

55
00:02:55,320 --> 00:02:58,600
Speaker 2: speaking to AT and tco John Stanky final on the

56
00:02:58,639 --> 00:03:01,960
Speaker 2: iPhone seventeen. Will it be more of a factor in

57
00:03:02,000 --> 00:03:04,399
Speaker 2: the three month period that ends in December?

58
00:03:05,240 --> 00:03:08,880
Speaker 1: The holidays, Well, the holiday season moving through the fourth

59
00:03:08,960 --> 00:03:12,040
Speaker 1: quarter is always a peak season for everybody in the industry.

60
00:03:12,040 --> 00:03:14,880
Speaker 1: I expect that's going to continue to be the case

61
00:03:14,960 --> 00:03:18,799
Speaker 1: this year. I don't see anything what we've had over

62
00:03:18,840 --> 00:03:21,480
Speaker 1: the first couple of weeks of the introduction to suggest

63
00:03:22,040 --> 00:03:24,480
Speaker 1: we're going to see a step function change from current

64
00:03:24,600 --> 00:03:27,600
Speaker 1: rate and pace. So all of our forward guidance that

65
00:03:27,639 --> 00:03:31,680
Speaker 1: we've given expects that it's going to be competitive, that

66
00:03:31,720 --> 00:03:33,880
Speaker 1: we're going to compete and continue to earn our fair

67
00:03:33,960 --> 00:03:37,600
Speaker 1: share of service revenues on those converged customers I talked about,

68
00:03:37,640 --> 00:03:41,080
Speaker 1: and I expect that it'll be as rambunctious in the

69
00:03:41,120 --> 00:03:43,360
Speaker 1: industry as it has been and we'll do just fine.

70
00:03:44,520 --> 00:03:44,800
Speaker 3: John.

71
00:03:44,840 --> 00:03:47,960
Speaker 2: If I turn on my television and watch a show

72
00:03:47,960 --> 00:03:50,600
Speaker 2: that has adds or a scroll on any given social

73
00:03:50,640 --> 00:03:55,400
Speaker 2: media timeline, I keep seeing AT and T talking about

74
00:03:55,440 --> 00:03:57,520
Speaker 2: itself as a home internet provider.

75
00:03:58,280 --> 00:03:59,600
Speaker 3: I know that's been a priority.

76
00:03:59,720 --> 00:04:03,240
Speaker 2: Have you any evidence that that push has been a

77
00:04:03,280 --> 00:04:06,200
Speaker 2: success and that you have positioned AT and T in

78
00:04:06,240 --> 00:04:06,800
Speaker 2: that domain.

79
00:04:07,240 --> 00:04:09,720
Speaker 1: Well, I'm glad you're seeing those means we must be

80
00:04:09,760 --> 00:04:12,240
Speaker 1: getting our right market and targets out there, and I

81
00:04:12,320 --> 00:04:15,600
Speaker 1: think this quarter was an excellent example of it. We

82
00:04:15,720 --> 00:04:20,839
Speaker 1: had our best broadband gain on our strategic products and

83
00:04:20,920 --> 00:04:25,120
Speaker 1: services fixed, wireless and fiber that we've had in eight years,

84
00:04:25,800 --> 00:04:28,599
Speaker 1: and so over five hundred and fifty thousand ADS on

85
00:04:28,640 --> 00:04:31,480
Speaker 1: those strategic products and a net gain of over two

86
00:04:31,560 --> 00:04:34,280
Speaker 1: hundred and thirty thousand of broadband total. It's the best

87
00:04:34,279 --> 00:04:36,120
Speaker 1: we've done in eight years. I think that's a good

88
00:04:36,160 --> 00:04:41,200
Speaker 1: strong indication that it's working, especially when you consider the

89
00:04:41,320 --> 00:04:45,200
Speaker 1: industry has been rife with examples of our competitors adjusting

90
00:04:45,240 --> 00:04:47,720
Speaker 1: their offers, trying to do different things to stem the

91
00:04:47,760 --> 00:04:50,599
Speaker 1: momentum we've had. So I feel really good about where

92
00:04:50,600 --> 00:04:52,560
Speaker 1: we're going on that front, and to the effect we

93
00:04:52,600 --> 00:04:56,000
Speaker 1: can add that with wireless subscribers, which we're showing that

94
00:04:56,040 --> 00:04:58,680
Speaker 1: we can do over fifty percent of the time when

95
00:04:58,720 --> 00:05:02,880
Speaker 1: somebody buys our fixed wireless product and we're over forty

96
00:05:02,920 --> 00:05:06,400
Speaker 1: one percent penetrated on our fiber base, that's a winning

97
00:05:06,440 --> 00:05:09,679
Speaker 1: combination economically and what kind of differentiates us from everybody

98
00:05:09,680 --> 00:05:10,560
Speaker 1: else in the industry.

99
00:05:12,040 --> 00:05:15,400
Speaker 2: Okay, shares a down a touch more than one percent,

100
00:05:15,480 --> 00:05:18,120
Speaker 2: which in the grand scheme of today is modest, is

101
00:05:18,160 --> 00:05:20,760
Speaker 2: a decline. The back and forth you had with the

102
00:05:20,760 --> 00:05:26,320
Speaker 2: analyst was, yes, churn is up and arpus are down,

103
00:05:26,760 --> 00:05:29,760
Speaker 2: but you seem not to be concerned about that. Why

104
00:05:30,279 --> 00:05:33,240
Speaker 2: Why is that not the metrics by which we should

105
00:05:33,480 --> 00:05:34,840
Speaker 2: should look to progress.

106
00:05:35,200 --> 00:05:37,200
Speaker 1: Yeah, it's part of it, I think ed as well

107
00:05:37,240 --> 00:05:39,440
Speaker 1: as we've got a little bit of churn going on

108
00:05:39,520 --> 00:05:43,000
Speaker 1: in the industry from CEO changeouts, and there's a little

109
00:05:43,080 --> 00:05:46,240
Speaker 1: uncertainty around what the competitive posture is going to be.

110
00:05:46,240 --> 00:05:47,760
Speaker 1: And then you look at the data points you just

111
00:05:47,880 --> 00:05:51,440
Speaker 1: reference and we're the first to report, and people are asking,

112
00:05:51,520 --> 00:05:53,560
Speaker 1: you know, what's going to happen when we hear from

113
00:05:53,560 --> 00:05:58,320
Speaker 1: everybody else, And my answering your question is, we're going

114
00:05:58,400 --> 00:06:00,640
Speaker 1: to talk about the fact that we're focused on putting

115
00:06:00,640 --> 00:06:04,240
Speaker 1: customers together with wireless and broadband, and part of that

116
00:06:04,680 --> 00:06:08,880
Speaker 1: dynamic is go penetrate segments that we've not been successful

117
00:06:08,880 --> 00:06:12,000
Speaker 1: at penetrating or as successful. So when we go to

118
00:06:12,080 --> 00:06:14,560
Speaker 1: value segments that were maybe a little under shared in

119
00:06:14,920 --> 00:06:18,080
Speaker 1: you're going to naturally have a little bit less urpoo

120
00:06:18,200 --> 00:06:21,680
Speaker 1: or average revenue per user when you pick that customer up.

121
00:06:21,720 --> 00:06:25,160
Speaker 1: And when you combine wireless and broadband together, you may

122
00:06:25,160 --> 00:06:28,160
Speaker 1: be giving initially a little bit better deal to do that,

123
00:06:28,720 --> 00:06:31,279
Speaker 1: but that's designed into the plan. We want to grow

124
00:06:31,400 --> 00:06:35,320
Speaker 1: and aggregate service revenues, which we've demonstrated that we can

125
00:06:35,360 --> 00:06:38,440
Speaker 1: do that. We indicated we're going to see some strengthening

126
00:06:38,480 --> 00:06:40,680
Speaker 1: of that as we move through the year from where

127
00:06:40,680 --> 00:06:43,279
Speaker 1: we were this quarter. And I'm okay with a little

128
00:06:43,279 --> 00:06:46,960
Speaker 1: bit lower urpoo if we actually execute on this consolidated

129
00:06:47,000 --> 00:06:51,039
Speaker 1: customer strategy or more successful at penetrating some of these

130
00:06:51,080 --> 00:06:52,800
Speaker 1: segments that we haven't been as active in.

131
00:06:54,279 --> 00:06:56,839
Speaker 2: John Stanky at and TCO, it's great to have you

132
00:06:56,920 --> 00:06:58,360
Speaker 2: back here on Bloomberg Tech.

133
00:06:58,400 --> 00:06:59,200
Speaker 3: Thank you very much,