AT&T Inc. (NYSE:T) Q2 2023 Earnings Call Transcript

Page 9 of 9

John Stankey: Yes. So we haven’t changed any of our guidance, Frank, on 30 million locations passed by 25 million. And I may be not understanding the subtlety of your question. I think we just told you we passed in the remarks, 20 million locations — so we’re — am I missing what you’re asking there?

Frank Louthan: Well, I’m just trying to figure out the 15 million homes that you’ve passed that last project, where are you today on that project? How many more do you have left in that 50 million of build?

Pascal Desroches: Frank, I’m not sure what you’re referring to when you say the 15 million. Just to be clear, right now, between business and consumer we are passing around 24 million homes and with the vast majority of that, obviously, being consumers. And as John alluded to, our plans haven’t changed. We feel really good about the pace at which we’re building. And when we build, we feel really good about the take rates that we’re seeing. So all in all, these things are pursuing according to our plan.

John Stankey: On the ARPU side, Frank, we’ve historically been a bit under the industry. Part of it is the maturity of our base of customers. We have, what I would call, tenure-wise a little bit less established base than maybe the incumbent players. And so, if you’re a customer for a longer period of time and you move up a continuum that obviously helps the ARPU. But some of it is deliberate. We’re, I think, priced in the market in a way, as you are probably aware, we’re trying to do everyday simple pricing where we don’t use promotions, and we tend to get a little bit more at the front end as a result of that and maybe a little bit less at the back end on the average side and the fact that when you’re penetrating having a competitive price point is, I think, helpful in getting that faster penetration at the front end quicker, which is a driver of return in the overall investment.

And then finally, we’re doing a lot of work where we’re trying consolidated products and services and doubling up households on both wireless and fixed broadband and those are really attractive households to get. They’re really attractive customers to get. And I think when we have a good high-quality product, we don’t have to discount a lot, but we want an offer between both the wireless and the broadband product to make sure we’re at a price point that we think holds that household. And that strategy has been working. And I think it plays into some of our pricing strategy as a result of that, but you’re really highlighting a point that is why we have so much confidence in this business. We continue to have an umbrella to work under and that’s a good thing, and it allows us to make sure we can continue to grow ARPUs and grow with those customers.

And as I said earlier, when you run a subscription business, you juris those things and you use them very carefully, and we’ll continue to use it very carefully as we move forward.

Amir Rozwadowski: Thanks very much, Frank. Operator, that’s all the time we have for questions.

Operator: And ladies and gentlemen, we’d like to thank you for your participation in today and today’s teleconference call. We’d like to thank you for using our service and have a wonderful day. You may now disconnect.

Follow At&T Inc. (NYSE:T)

Page 9 of 9