Telephone & Data Systems, Inc. Q1 2008 Earnings Call Transcript

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2008-05-07 12:49:07.0

Tags: Telephone and Data Systems Inc.

Question-and-Answer Session

Operator Instructions]. Your first question comes from Simon Flannery with Morgan Stanley.

Simon Flannery - Morgan Stanley

Okay, thank you very much. Good morning. I wonder if we could just talk about the guidance for a second, in particular the net add guidance for wireless. You had a solid result for the first quarter and if you annualize for the first quarter run rates it certainly is well ahead of where the new guidance is. So can you talk about what you see happening in the rest of the year that has caused you to pull that guidance down, is that results in March and April have really started to slow, is it something else you are seeing on the economy or competition, and you have got the stimulus package, how that plays into it? And then just very quickly if you could on the EVDO, could you give us a sense of what percent of your pops you might cover by the end of the year with EVDO, thanks?

Jay M. Ellison - Executive Vice President and Chief Operating Officer

I will take the last. This is Jay. I will take your last part first and try a little on the first part. On the EVDO deployment, we believe we'll have approximately 40% of our pops covered sometime in time in the fourth quarter at this point. We started our construction, our role out, and everything is or ahead of schedule. So we don't anticipate any delays in the launch to cover that percentage of pops. Relative to some of the changes that Steve mentioned, in some of our market we are paying close attention to some of the economic drivers, in particular in some of those marking that I referred to like in the northeast and some of those markets that were hit very hard by winter and fuel cost. We have seen some bit of slow down that we are paying very close attention to. We've also seen some of those customers do... not giving up wireless but really doing some consolidation relative to their accounts in the fourth and the fifth lines where they may have been single line accounts in the future. So I guess we are just playing, watching those markets that we saw hard hit by the winter both from the length and the fuel cost and we have seen some activities in our call centers that would... accounts trying to really make sure they don't give up wireless but have smart spending with their cash flow.

 

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