AT&T Fiber Buildout Could Exceed FCC-Set Conditions, CFO Stephens Says

While required to build fiber to 12.5 million homes by 2019 as one of the conditions of its purchase of DirecTV, that fiber buildout size could be a floor rather than a ceiling, AT&T Chief Financial Officer John Stephens said Wednesday during the Wells Fargo investor conference. "We would be willing to do more." Stephens also said DirecTV integration is ahead of schedule regarding cost management. "We kept [revenue generation] expectations tempered," he said. "We thought it would take a year to get things going, and it has." AT&T revenue expectations also have been hampered by a tepid U.S. economy, he said. While the carrier has announced a $35 price point for its upcoming DirecTV Now streaming service (see 1610250053), the company plans to subsequently add features and content that will result in other price points, he said. Stephens also said one aim of DirecTV Now is as an entry point to the market of 20 million or so U.S. households without pay TV, letting AT&T then try to bundle broadband or other services with it.