AT&T Inc at Citi TMT Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Great. And maybe we'll jump right into the announcement from last week. So AT&T announced the acquisition of Spectrum from EchoStar. And if you could just take us -- take a few minutes and walk us through the overall opportunity that you're seeing across the mass market that you're responsible for in terms of what the spectrum can do for AT&T and your customers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : So maybe just to drill into this for a moment. So the way I think people have been thinking a little bit about convergence has been, okay, where you have fiber and of course, you're nationally mobile, you know you have that advantage. But earlier, maybe last year, you were a little bit more, as a company, hesitant or restrained in the way that you're approaching FWA. So does this really cement a national convergence strategy for AT&T?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : One more on this. So we were talking about the 3.45. What about the 600? How does that help AT&T and your customers? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Very helpful. Moving over to the Mobility segment. How does AT&T differentiate your postpaid phone go-to-market strategy to continue to grow subs on an annual basis?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And so in the past, AT&T has talked about the measurable benefits of best deals for everyone. Is this service commitment that you're now giving customers. Is that also something that you see as a measurable benefit to customer lifetime value? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : So the first half of the year saw a real significant and, I think, practical purpose is an unexpected increase in the switcher pool. What are you seeing now in terms of the switcher pool? And any thoughts on how it plays out for the balance of the year?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : It feels like this time of year, we start thinking about the next year. And one of your competitors mentioned the possibility that industry growth slows down, impacts from immigration, maybe some maturation of the business market. What are your early indicators on what industry growth looks like, and how that impacts AT&T?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And then just maybe going back to the switcher pool, how much of this larger switcher pool contributed to the increase in first half churn relative to other factors that may have been responsible for that, and you mentioned that things are kind of moving on track for the second half. Can you remind us what you're planning for in terms of churn for the back half of the year?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And then on the competitive side of the equation, any changes there that you're seeing or that investors should be mindful of, including the cable companies kind of leaning further into their converged promos?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And I want to get to FWA in a few moments. And then maybe just kind of zooming out a little bit to just overall Mobility service revenue. You talked about the opportunity to sustain subscriber growth. Do you also see the opportunities to sustain Mobility service revenue growth? And maybe you could share some of the key drivers. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference It's probably worth noting, right, that your Mobility business, unlike your competitors doesn't include fixed wireless, which we're going to get to in a moment. So yours is more of a pure mobile --

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Yeah.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : I think just the history of this business for a while was that ARPUs could be deflationary in nature. And you mentioned the up-tiering opportunity that you have. And so the question is, is this Mobility category broadly maturing into a place were up tiering and annual pricing actions just become more customary like we've seen, whether it's in cable video or just the larger broadband business.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And maybe just digging deeper into convergence. Maybe you can give some more specifics on how convergence is in the market for your customers today? And what are the future opportunities to do more with converged offerings?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And I think we talked about this last year. On the pricing side of convergence, what's the discount that, if any, right, that's needed to get this customer to bundle and converge. And is that something that we just need to be mindful of that there is a cost to the benefit from the lifetime value of lower churn or maybe a lower acquisition cost for the combined products.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : So digging deeper on broadband with no pun intended there, whatsoever. When you think about annual fiber passings I mean, from our side, it's going from, I think, what, 2 million to 3 million to 4 million, and then you add another 1 million for the pending acquisition of consumer fiber, so you get 5 million passings a year, and that significantly accelerate quarterly broadband net adds for AT&T?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And as we've been talking about the ARPUs and the pricing and you talked about some of the benefits on revenue growth, even while converging -- the fiber broadband ARPU has been doing very well. Is there anything else specific to unpack in terms of what's helping that and the opportunity to keep improving broadband fiber ARPU.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And then shifting over to fixed wireless. So what have you learned about the demand and the performance of FWA across different market geographies as you've been expanding the mid-band coverage?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Yes.

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And the improvement, I think AT&T has talked about better FWA net adds in the second half of the year relative to the first half of the year. And is that improvement still coming from just that inbound store activity before you get to some of that, we'll call it, push marketing that you were talking about earlier?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And in terms of coverage, like is there -- can you size the FWA footprint today, and where it's going in terms of the households?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : But you mentioned earlier, you're going to be expanding now to maybe more so outside of the incumbent territory. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Traditional, yeah, traditional wireline footprint. And so how is FWA marketing different than fiber? And how does that go to market maybe a little bit steadily different than marketing that fiber broadband product in the marketplace?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And AT&T has been also promoting the open access fiber business model. Can you just review with us in terms of how that works in terms of AT&T's ability to sell services through the open access model. And is there a possibility because of the terminology that other parties could actually resell the same fiber footprint?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And you mentioned earlier the opportunity with the Spectrum acquisition to augment and maybe speed up the legacy migration. Can you just share with us maybe some additional details on how that's going? Because you already have -- back from the Analyst Day, you shared some of the wireless products that you have to migrate customers over. So where are you on that journey? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 04, 2025 / 6:50PM, T.N - AT&T Inc at Citi TMT Conference

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : And just to round out this conversation on broadband, there have been some changes to the BEAD program. Are there any incremental considerations or opportunities for AT&T with respect to size, timing on what you may be able to do in terms of expanding your footprint with BEAD?

Question: Michael Rollins - Citi Infrastructure Investments LLC - Analyst : Jen, thank you so much for joining us today.