AT&T Inc. CFO John Stephens provided several updates on company matters, starting with its $106.40 billion purchase of Time Warner Inc.
Speaking at the Cowen Technology, Media and Telecom Conference on May 30, Stephens said the company expects a June 12 ruling in the AT&T/Time Warner antitrust case, with AT&T ready to close if it gets a favorable ruling. The company expects annualized cost synergies of $1.5 billion by the end of the third year after closing.
Stephens also discussed AT&T's other priorities for this year, including expanding its video offerings and growing the subscriber base of its DIRECTV, U-verse and DIRECTV NOW services.
If the Time Warner deal closes, the company plans to introduce AT&T Watch, a skinny package without local programming or sports-only channels. By the end of the year, AT&T also expects to launch an app-based premium streaming product that connects to customers' TVs and home broadband. The product will offer the same content as linear TV with lower price points.
In terms of wireless service revenue, the company expects to return to growth on a comparable basis this year. Stephens said that the deployment of FirstNet, a dedicated network core for first responders, is "off to a strong start," with capital spending in the project likely to reach $2 billion in 2018.
AT&T is also looking to be the first U.S. company to launch standards-based mobile 5G service this year, with plans to reach 500 markets with 5G technology by the end of 2018.
