Good morning, everyone. I'm Amir Rozwadowski, Head of Investor Relations at AT&T. I want to welcome everyone to our Analyst Day. Thank you very much for your interest. We believe that we have a very informative morning planned for you today. Following the presentations by our leadership team, we'll open the floor for questions. We will have an interactive video component where you can ask your questions. Before we get started, I need to call your attention to our safe harbor statement. It says that some of our comments today may be forward-looking. As such, they're subject to risks and uncertainties. Results may differ materially. Reconciliations between non-GAAP and GAAP financial measures are provided in the appendix of our presentation. Additional information is available on the Investor Relations website. With that, I now would like to introduce AT&T CEO, John Stankey. John? Good morning. Thank you for joining us. I know it's been a long week for many of you. Thanks for sticking with us. We saved the best for last. I miss seeing your bright and inquisitive faces. Hopefully, this format works for you, and I look forward to the opportunity to see you again live. I think we're on the cusp of that. Our main objective today is to lay out for you where we're heading with our business overall and give you forward-looking details within each business so you can get a good look at our current and future growth opportunities in our three market focus areas. Most importantly, we're leaving a good amount of time for your questions and some back and forth with you. You've heard me say this before. Let's start with our purpose, which is we create connection. During the pandemic, that connection has never been more vital to our customers, and it's reflected in the resilience of our operating results over the past couple of quarters. The importance of world-class connectivity and content come together in our three market focus areas. First, broadband connectivity, where we're focused on leveraging both our fiber and our wireless infrastructure to carry more broadband traffic and serve more customers across all segments than any other U.S. company. I want to emphasize that fiber underpins the connectivity we deliver, serving both wired and wireless. We believe our hybrid fixed and mobile approach will differentiate AT&T and provide us with additional growth opportunities in the future as bandwidth demands continue to grow. We've delivered the overall fastest wireless network in the nation every quarter for the last two years, according to Ookla, and the fastest nationwide 5G network in the second half of 2020. This morning, we'll address how our spectrum acquisition in the recent auction and the significant additional capacity it provides will sustain our network position going forward. We're also expanding our fiber build in 2021 to capitalize on the strong demand we have in key markets where we can deliver a solid return on investment while increasing our base of valuable fiber subscribers, both consumers and businesses. Our second market focus is software-based entertainment. With HBO Max, we've developed a next-generation entertainment distribution platform built for growth in direct-to-consumer subscription and advertising-based customer relationships. Today, we'll address how we expect our international expansion of HBO Max and our AVOD offering this year will bolster our growth momentum. We've already exceeded initial targets for HBO Max here in the U.S. This morning, we significantly raised our projections for HBO Max growth in existing and additional markets by 2025. We'll talk in more detail in a bit about Max's expected growth trajectory. Our third market focus is fantastic storytelling. We're creating and curating industry-leading premium entertainment that helps profitably grow our customer relationships beyond our traditional connectivity-based services. We'll discuss how our day-and-date strategy in putting our customers first allows us to provide more certainty during this pandemic and also provide color on where we believe this business will go as we move through 2021. Because of the superior assets we've had, I've made clear to our management team that we have one primary focus in this year, and that is grow customer relationships. This priority is about more than just adding to our customer base. It's about expanding the growth opportunity in our three market focus areas and increasing our share within each market. We're also focused on creating deeper relationships with our current customers to increase their daily engagement with our products and services, enabling us to gather more meaningful insights, drive loyalty, and stay ahead of their rapidly changing preferences. For us to achieve this and be as effective as possible in the market, we continue to transform our operations to be more effective and efficient in everything we do. We're being deliberate and strategic with how we allocate capital to invest while being committed to sustaining the dividend at current levels and utilizing cash after dividends to reduce debt. We'll continue to demonstrate our commitment to evaluate all parts of the business to restructure non-core assets and ensure management attention is sharply focused on our growth areas. This framing is consistent with what we've discussed with you over the past couple quarters. Today I'd like to simplify it. I look at it this way. More customer relationships, and a company that is more efficient and streamlined, will result in shareholder returns. We'll lay out the investment thesis for AT&T. A good, sustainable dividend built on strong cash flows from subscription businesses, combined with an upside for expanded growth in our three market focus areas. We have growth opportunities in markets where we're already in, and additional opportunities from expanding the market in those areas. As demand for connectivity and content continues to grow, we're well-positioned to deliver. Our job is to do just that. We'll spend this first hour or so with presentations from Jeff McElfresh on AT&T Communications, Jason Kilar on WarnerMedia, and then we'll wrap up with John Stephens and Pascal Desroches on the financial front. After that, we'll take your questions. With that, I'll turn it over to Jeff. Jeff? Thanks, John. At AT&T Communications, we're focused on growing our customer relationships through broadband connectivity delivered by both our wireless and fiber products. Last year, not only did our network prove its resilience while delivering industry-leading performance, our sales and service teams drove record-level subscriber momentum that AT&T hasn't seen in nearly a decade. For 2021, we expect to continue that momentum and grow share with our wireless and fiber products. That growth will be fueled by the transformation of our operations, driving efficiencies to the bottom line and enabling us to deliver growth in an accretive manner. To set the foundation for AT&T's growth strategy, it's important I share with you our point of view of where we see bandwidth demand going. It's based on trends and insights that we glean from the traffic across our expansive fiber and wireless infrastructure, and it's no surprise that the demand for broadband is strong and growing. Looking a little deeper, though, we see two trends emerge. The first trend, demand for uplink capacity is growing at a faster pace than downlink. As you can see in the graphic on the left, post the COVID-19 marker. User-generated content is on a faster growth pace from applications such as video conferencing. The second trend, while both mobile and fixed broadband usage is growing, we're actually seeing an increased dependence on the fixed network as it provides the performance and capacity customer applications require. While this trend has been recently influenced by COVID-19, as employees work from home and students learn from home, it's a trend that we expect will continue. This increased dependence on the fixed network gives us confidence that AT&T's hybrid fixed and mobile networks are well-positioned to capture growth in this environment. Looking ahead, we expect the demand for high-quality broadband will continue to increase upwards to five times in the next five years, where the majority of customers are expected to consume up to 4.6 TB of data, as seen represented on the chart on the left. Factors driving this increasing bandwidth consumption and the emphasis being placed on uplink demand include a multitude of things, like the number of connected devices in a home increasing to 32. Mobile consumption will continue to grow to nearly 50 GB, and shifts in our video content format from high definition to 4K, and of course the rise in streaming services and the time that we spend watching them, the prevalence of video conferencing, and many other high-bandwidth applications such as augmented reality, virtual reality, and of course, gaming. Let me bring this to life with an example. three hours of full HD video use drives 9 GB of consumption per day. That's 270 GB a month. That very same three hours of video content sent in 4K increases those figures to 21 GB and 630 GB respectively. That's more than a 2x increase just from the shift in video quality. You combine this factor with the expected increases in time spent watching, and the demands of the network are significant. Collectively, this drives demand growth on both our fixed and mobile networks, and we're shifting from describing consumption in gigabytes to terabytes. Why do we believe AT&T's hybrid fixed and mobile networks are well-positioned to capture growth in this environment? Well, that's because connectivity demand is not ubiquitous. There is diversity in the customer segments, and they require different capabilities in their broadband, and the economics to serve them command multiple technology solutions. Gamers, for example, require low latency and very high bandwidth. Businesses need a combination of fast, reliable, and secure fixed and wireless solutions for their distributed workforce. Students are highly mobile, preferring the flexibility of remote education offered over wireless platforms. The performance, capacity, and cost advantages make the fixed network relevant to serve all of these customer segments. It's why we believe AT&T is optimally positioned with scaled, robust fixed and mobile networks. Meeting the growing demands for bandwidth will require a robust fiber network, regardless of the last-mile serving technology. It's the foundation that fuels our mobile network, providing the capacity and performance to unlock the full potential of the spectrum we deploy. That very same fiber network lights up neighborhoods, small businesses, and enterprise locations along the route. As one of the largest fiber providers in the nation, we design our network in an integrated fashion to capture all these growth opportunities and ensure that we maximize the utilization of every strand of fiber we lay, packing as many endpoints on each strand, regardless of where in the country we deploy it. This is our hybrid fixed and mobile approach, and it's working. In 2021, we expect to increase our fiber footprint in more than 90 metro areas by expanding to 3 million new customer locations. The marginal economics are attractive. These areas are adjacent to our current footprint, driving cost efficiencies in our build, as well as our marketing and distribution efforts. This results not only in improved cost, but speed and cycle times from build to revenue. Fiber is a durable solution and a superior technology to address the demands for broadband. It delivers 1 GB speeds, has low latency, is symmetrical for downlink and uplink demand, and is easily upgradable to multi-gig with minimal investment as demand growth continues. Building on top of that fiber foundation is our solid spectrum portfolio, recently strengthened as a result of the C-band auction. Through steady and continuous capital investments in our wireless network, we have more than doubled the spectrum in production through our efficient single-touch process over the last four years. With only 70% of our low and mid-band spectrum in service as of the end of last year, our network ranked at the top in performance, according to Ookla, as the overall fastest every quarter for the last two years. Advances in technology such as carrier aggregation and antenna design have enabled our AT&T network team to deliver America's best and the nation's largest network, proving that our spectrum position is solid and competitive. We've got 30% more low and mid-band spectrum to deploy, which we will continue to do to drive performance in the top 50 urban areas and support the customer growth AT&T now enjoys. We're pleased with the outcome of the C-band auction. We secured 80 MHz, and this is the largest band of contiguous spectrum across our mid and low-band portfolio, which will allow us to deliver even faster average speeds across the country and the additional capacity needed for densification. We will begin deploying the first phase of C-band, or 40 MHz, towards the latter part of 2021 as it becomes available. Now this spectrum, like the rest of our low and mid-band spectrum, will be deployed to serve the diverse opportunities that I mentioned earlier. Additionally, millimeter wave is part of our broader spectrum strategy, and we choose to deploy it for specific scenarios in high-density areas such as stadiums, airports, and enterprise facilities like hospitals and manufacturing. We believe millimeter wave has its purpose, and it's best served when there is dense fiber to support it, which is why we're convinced leaning into an aggressive fiber expansion is the right play right now to drive more value in this business. If you have concerns about our spectrum position with regard to the competition, I stand with conviction and full confidence in our position. The environment is dynamic with new spectrum coming to market, the secondary spectrum markets opening up, and technology advances that have proven time and again to level the network playing fields in the wireless industry. Our network has never been stronger, and we remain committed to investing in our wireless network and are confident we're equipped with a solid spectrum position. Turning to our Wireless business unit, our momentum is driven by a deliberate strategy of simplicity in our offers and consistency in our execution. We've simplified our offer structure to 3 competitive pricing tiers with our new unlimited plans, all with access to the nation's best network. Our best plan includes HBO Max and enhanced mobile security, and we've introduced flexible arrangements with Unlimited Your Way. Additionally, we're making smart investments to attract and retain customers with our best deals for everyone strategy. Knowing that roughly 6 in 10 customers choose to stay or leave their carrier due to price, we listened to our customers and realized there was a real opportunity to drive growth for the company and loyalty with our customers. As we invest in our base at competitive levels, we're starting to see our value proposition resonate with customers. They aren't being lured away by marketing hype. Our strategy is working, and we're seeing strong churn improvement with our fourth quarter postpaid voice churn the lowest on record. Investing in the base generates attractive returns evidenced by longer retention time span of an existing customer compared to a new one. As churn improves, our share of net adds is growing, and we are back to increasing share while maintaining attractive service margins. We're also driving top-line revenue growth from rate plan step-ups to unlimited as customers upgrade through the program. We're able to make these investments in our wireless subscribers due to the strong results from our transformation program. Our distribution transformation has yielded higher volumes with fewer doors, increased productivity per seller, material increases in the volumes we are now handling through our digital channel, and service improvements through our technology platforms such as Salesforce 360. We are confident we can continue the momentum and expect to see service revenue growth and modest EBITDA growth in 2021. Turning to our Broadband business unit, our product and sales teams are heads down delivering solutions and driving penetration. To ensure customers have the best connectivity solutions to meet their unique needs, we're focused on a best-in-class product experience. Fiber is 20 times faster than standard cable and has 99% proven reliability. Like wireless, we've simplified our pricing strategy in this portfolio, offering 3 speed tiers to provide customer choice. We recently launched a Wi-Fi 6 gateway, which provides superior in-home Wi-Fi coverage, addressing customers' number 1 pain point. You will see us introduce a wireless backup capability into our consumer gateways, taking a play we've run for years with success in our enterprise business. In addition to speed, security features have never been more important to our customers. To that end, we are expanding new features such as Smart Security. Our Smart Home Manager application enables our customers to take control of their bandwidth in their home, prioritizing access across their devices and optimizing their home network performance. With no data cap and no annual contracts, our AT&T Fiber customers get award-winning service on their terms. Customers love it, where we have it, we are share leaders, 10% better than competitors, with 70% of our gross adds new to AT&T. For 2021, we expect to continue the momentum, growing our subscriber share. With our new build plan off to a fast start, we expect accelerated penetration rates of 5 percentage points within the first full 12 months of our build. This translates to reaching 50% share nine months faster than our historical pace. We have already seen evidence of this early in the program. Not only is our subscriber base growing, so are revenues, as customers demand more bandwidth and select premium speed tiers, leading to a 10% increase in ARPU, a trend we believe will continue into 2021, driving total broadband revenue growth in the mid-single digits. This top-line growth, combined with better churn, improved cycle times, better acquisition cost with digital adoption, and a lower cost of capital, results in marginal economics better than expected, improving our customer breakeven by roughly one year. We're in the early innings. This product is still scaling. With our trends looking strong, we have confidence in the return characteristics of this business and expect to further improve margins and EBITDA performance in the coming years. Turning to business, the COVID pandemic has fundamentally changed the business landscape, creating the opportunity for us to transform how we best serve our customers. Continuing our focus on 5G and fiber, we are simplifying our portfolio by transitioning away from areas which are non-strategic, products that need a high degree of customization, heavy resources, or produce less desirable margins. In short, we're redesigning our distribution with more emphasis on driving connectivity, secure fiber, and wireless connections, with partner value-added solutions such as voice and collaboration. This approach aligns with the needs of our enterprise customers as we utilize both our expansive fiber presence and our nation's best network to serve their needs. The strategy is working. In 2020, we outperformed the industry fiber broadband growth by a factor of eight. Our enterprise relationships fuel our total AT&T Communications portfolio and create strong brand affinity. FirstNet is a good proof point of this synergy. Today, more than 15,000 agencies and organizations, accounting for more than 2 million connections nationwide, have subscribed to FirstNet. Recent examples include the FBI, the Chicago PD, the LAPD, Seattle Fire, the Coast Guard, and FEMA. Not only are we seeing success with first responders, we're also seeing growth in connections with their family members for our consumer business. We have the first nationwide business-focused broadband network, combining our AT&T wireless broadband and our leading business fiber network, and we are continuously enhancing it, including announcing this week the addition of fixed 5G wireless solutions. This broadband network can serve temporary needs like vaccine pop-up locations, and for enterprises, it enables employees to securely work from home independent of their consumer broadband service. We will continue to expand our 5G Edge solutions in 2021, developing customer-led applications with technology partners like Microsoft, IBM, Accenture, Google, and Deloitte. Our enterprise wireline business expects to deliver solid margins in 2021 and provide meaningful contributions to our wireless results. When it all comes together, the improvements we've made in our network, our product offers, our distribution optimization, our service delivery through consistency and simplicity, our execution is strong, and customers are affirming this. Take a look at these data points, starting with our premium postpaid customers on unlimited plans. Adding HBO Max to our best plans reduces churn and lifts NPS by 20 points. We see the same results when fiber is added to our unlimited accounts, up 20 points. When our customers have the best of all our products, adding both HBO Max and fiber, we see 35 points of NPS lift compared to the unlimited base. We're seeing clear NPS improvements across wireless, and as a result, we're closing the gap to our competitors. In fiber, we're also seeing clear NPS improvements, further extending our leadership position in the industry. Higher NPS translates to lower churn, which results in higher customer lifetime values. All of this further increases our confidence that investing in subscriber growth today is going to bring more enterprise value tomorrow. Our strategy is solid and is demonstrated in the improving results we continue to deliver. We established strong momentum in 2020, and I am confident in our ability to continue that momentum through 2021. In summary, our plan includes continued wireless network investments at competitive levels, introducing C-band into the mix later this year, expanding our fiber to 3 million new customer locations. In wireless, maintain our momentum growing subscribers, service revenue, and EBITDA. In broadband, maintain our momentum growing subscribers and revenue, and in business, simplifying our portfolio and maintain solid margin performance. Jason, over to you. Hello. I'm proud to represent the WarnerMedia team. I'm gonna use my time in prepared remarks to focus on HBO Max. Back in October of 2019, John Stephens stood on a sound stage at the Warner Bros. lot and shared that we expected to achieve 41 million HBO Max and HBO subscribers in the United States market by the end of 2022. I am thankful to report that we exceeded that milestone more than two years ahead of plan. The launch of HBO Max has not only covered the decline in linear HBO subscribers, it has actually driven material growth. In fact, more HBO subscribers were added in the final seven months of 2020 than HBO added in the previous decade. It has been our goal from the start for HBO Max to reach a broader, younger, and more engaged audience. I'm happy to report that we're seeing just that. HBO Max attracts a considerably younger audience. 43% of HBO Max viewers are under the age of 35. 50% of the audience is female, whereas HBO has historically had a slight male skew. We have also worked hard to earn more of consumers' precious time, and it's working. HBO Max viewers are nearly twice as engaged as their HBO linear counterparts in terms of daily viewing hours. At 41.5 million subscribers in the U.S., we are a leader in terms of the number of subscribers that we have attracted. We also are a leader in terms of the price we are able to proudly earn from our consumers for HBO Max. Based on publicly available data and analyst estimates, we believe that we are already the number 2 revenue-generating standalone subscription video on-demand service in the U.S. As time goes on, we expect the amount of revenue that we retain per subscriber will continue to increase as retail subscribers comprise an increasing percentage of our base. The economics of HBO Max's growth are compelling. To use the U.S. as one example, we currently earn 90% in margin from each retail subscriber that we add. We are very encouraged by the early results of our decision to release our 18 premium Warner Bros. motion pictures this year to theaters and on HBO Max for 31 days in the U.S. market. Given the ongoing effects of COVID, we have been happy and proud even to give consumers the choice to see our great stories in the home or in theaters in 2021. Since launching this strategy in December, movies are often the first title viewed among new subscribers. We have seen a reduction in churn, in part due to the motion picture strategy. We know that retaining subscribers is also a function of HBO Max's expansive and compelling library, smart acquisitions, and bold originals. I'd like to put the spotlight on two things I'm particularly excited about, both of which we plan to launch this year. The first is the introduction of an advertising-supported version of HBO Max. Advertising, when executed thoughtfully and elegantly, is a powerful way to lower prices for everyone. We will be doing just that in June here in the U.S. I also believe that marketers are going to be delighted, thanks in part to the safe, addressable, premium environment, unlike any service out there. The pre-launch response from marketers certainly suggests that they agree with these statements, given that we already have $80 million in upfront commitments. Lower prices for consumers, making HBO Max even more appealing, more effective advertising and marketing for marketers, done in a manner we expect will be economically accretive to our existing business over the long term. The second thing I'd like to highlight is HBO Max's expansion outside the United States. We are looking forward to building on HBO Max's current U.S. momentum and begin to offer it across the globe. These are markets where we have existing presence, key brand awareness, local programming experience, and are excited to refresh our product and expand our subscriber base. In Latin America and the Caribbean, we plan to launch in 39 markets this summer, just over 100 days from now. We have an exciting mix of content, including a great slate of originals. We are planning an aggressive pricing strategy and are looking forward to building on AT&T's presence and portfolio in the market. In the second half of this year, we also plan to launch in 21 countries across Europe, building on the well-established footprint of HBO Europe. With a near doubling of content plan compared to HBO for the same price, along with a dramatically improved user experience, we think that European consumers will quickly embrace this new service. It's going to be a very big year for HBO Max across the globe, from one market currently to 61 over the next nine months. With all of that having been said, the biggest reason I feel strongly about the prospects of HBO Max and our ability to be among the top three leading premium video services in the world is because of the stories we get to tell. Let me explain why, in terms of the teams, the talent, and the beloved characters and worlds that define us. Let's start with HBO. There is no other storytelling team, there is no other storytelling studio more associated with quality and excellence than HBO. This is the team that has brought the world more award-winning, culture-defining television programming than any other in history, in an incredible range of formats, from documentaries to epic series, award-winning dramas, and comedies. HBO simply continues to drive culture. This team continues to do incredible work on a local level across the globe as well, which will be highly leveraged throughout HBO Max as we expand. We then add in the production powerhouse that is Warner Bros. On the feature side, Warner Bros. Pictures is the industry leader for premium filmmaking. The balance of this year is going to see an unbelievable slate of Warner Bros. motion pictures opening both in theaters and on HBO Max the exact same day. Titles that include "Godzilla vs. Kong," "Mortal Kombat," "Dune," "In the Heights," "The Many Saints of Newark" and "The Matrix." We know the importance of kids and family for our audience and are expanding our investment in this arena so that you can look for more to come. Everything from Bugs Bunny Builders to an animated Gremlins origin story, to further adventures set in, yes, Jellystone! We also have a remarkably deep premium library of hits, both classics and new, from Warner Bros. Television, with everything from "Friends" to "Fresh Prince" to "The Big Bang Theory," which gives us a rich universe of IP and relationships and allows us to develop new chapters of hit series such as "Gossip Girl" and "Pretty Little Liars." Our Max originals team delivered their first must-watch series in "The Flight Attendant" just a few months ago. It quickly became the number 1 original series on HBO Max and will be returning for a second season next spring. We work tirelessly to earn the right to partner with the world's best storytelling talent. We provide artists and creators the opportunity to fully realize their creative ambitions, from motion pictures to television series, unscripted storytelling and documentaries, interactive experiences, and consumer products. I believe this unique creative sandbox, along with our culture and our valued relationships, are just some of the reasons why we are fortunate at WarnerMedia to be in business with, and to be the home for, many of the world's best storytellers. People like Ava DuVernay, J.J. Abrams, Mindy Kaling, Greg Berlanti, and Issa Rae, among many others. We are so excited to share the amazing new stories they develop for HBO Max. I'd also posit that breakthrough franchises are quite rare in this world as well. It makes me smile knowing that we are home to many of the most beloved worlds and many of the most beloved characters. I'm talking specifically about the wizarding world of Harry Potter, about Gotham, Metropolis, and the multiverse of DC, about Westeros and the Game of Thrones, and the animated world that is Looney Tunes. In the interest of time, I'll just highlight how we're diving deep into the DC multiverse. This coming Thursday, we proudly launch Zack Snyder's Justice League, exclusively on HBO Max. We will have more than two dozen new movies, series, video games, and documentaries from the world of DC, including the ones that you see here. The DC multiverse and its canon of unforgettable characters is a very big deal. We intend to dive deeply into it, and our other beloved worlds and characters. Beyond the series of motion pictures you have heard about today, we have a carefully crafted arc filled with settings and characters that are beloved by fans, and which we believe are ripe for exploring and reimagining. These franchises, these magnetic characters and settings, have broad and deep fan appeal, and we have just begun to scratch the surface of the stories to be told. Given our early success and momentum in the U.S., we are revising and updating our guidance from what was presented in the fall of 2019. Now, back then, we projected 75 million-90 million HBO Max subscribers worldwide from our initial set of markets by year-end 2025. As we look at our success and pacing in the United States and our expectations in Europe and Latin America, we are increasing our forecast for those initial launch markets to 120 million worldwide subscriptions by 2025. This includes our expectation to end this year with between 67 and 70 million subscribers. When we look at the momentum we have, we feel strongly that HBO Max is working for consumers and is a very attractive growth opportunity for us. We are excited about the prospects of additional market expansion beyond the 61 markets that I mentioned earlier. We'll come back to you later in the year with an update on our Latin America and Europe market results and additional details on our growth plans for the future. Based on what we see right now, we think there's an opportunity to scale to 150 million subscribers by year-end 2025. That 150 million number does not include some sizable markets where we have licensing agreements, like the U.K., Germany, Italy, and Australia, which we believe represent further upside longer term, beyond the 150 million. This strong subscriber momentum is fueling our top-line growth. We expect HBO Max and HBO revenue to more than double over the next 5 years to $15 billion. These revenue figures only reflect the initial 61 markets that I mentioned earlier. Other markets would be incremental revenue opportunity to this $15 billion number. Our accelerated momentum, we expect to increase our investment over the next several years, with peak dilution in 2022 and then breaking even in 2025. It's still early, but we already know based on our first-year HBO Max results that AT&T provides WarnerMedia unique advantages in this competitive market. Approximately 25% of HBO Max's subscribers in the U.S. are via AT&T. It's important to see the value go in the other direction as well. HBO Max is proving to be a factor in AT&T's consumer business. Extended lifetimes, higher revenues, more efficient marketing. It reminds me of that classic Warner Bros. line, "It's the beginning of a beautiful friendship." I'm thankful that I've been able to share some of my thoughts with you today. The takeaways are clear. One, we're two years ahead of plan. Two, consumers are loving and using HBO Max aggressively. Three, I'm excited for our ability to offer lower prices to consumers that choose an ad-supported version of HBO Max. Four, HBO Max will be launching in 60 more countries over the next nine months. Finally, five, there is no other team, there is no other talent, and no other set of franchises that I'd rather bet on to move the world through story. Thank you, and before I hand it over to John Stephens, I will leave you with this last look at HBO Max. Thank you, Jason. Hello, everyone. We've shared some impressive plans for our business in the past hour. Pascal and I would like to give you a rundown of our financial plans. Let's first start with our 2021 guidance. Given the expected timing of the DTV transaction, we do not anticipate any material changes to our prior outlook on a comparative basis. This includes revenue growth in the 1% range, supported by wireless service revenue growth of approximately 2%, and a gradual theatrical improvement in WarnerMedia as the impact of the pandemic begins to dissipate. As a reminder, reported revenue growth and adjusted EBITDA trajectory will be impacted when we close the DIRECTV transaction. Full-year guidance is expected to still be on track on a comparative basis. By deconsolidating that business, the trajectory of our revenue and adjusted EBITDA is expected to improve our core businesses. Pascal will walk you through our thoughts on our profit trajectory in a moment. As a result of held-for-sale accounting, we expect some benefits from ceasing depreciation and amortization of the video business assets. However, we will also be updating the lives of video customers used to determine subscriber acquisition expense, which will offset some of these benefits. We are retaining our 2021 EPS guidance of stable versus 2020, as the impact of these factors largely depends on when the transaction closes. Free cash flow is expected to remain in the $26 billion range. The later in the year the video transaction closes, the smaller the impact on free cash flow. As a reminder, the fourth quarter is traditionally the low water mark for the free cash flow in the video business. Obviously, there has been considerable discussion on the trajectory of our core operations once we separate the video business. Let me turn it over to Pascal to provide you with several factors to consider when thinking about our business going forward. Thank you, John. Good morning, everyone. In 2020, our video business pressured both our top line and adjusted EBITDA growth by 100 basis points. Additionally, the video business contracted our adjusted EBITDA margins by about 300 basis points. If we shift our focus to 2021, embedded in our outlook for the year are expectations that these trends will continue as video continues to weigh on revenue growth and adjusted EBITDA growth, as well as our margins. Looking beyond 2021, we believe that separating the video business will improve our operational focus in our growth areas of 5G, wireless, fiber, and HBO Max. We expect deconsolidating the business from our results will improve the trajectory of our revenue growth and adjusted EBITDA growth going forward. Let me walk you through how we believe we can get there. First, we expect the combination of profitable share gains in wireless and the continued migration to unlimited plans to support wireless EBITDA growth. We fully acknowledge that the pace of growth will depend on the competitive environment, but we feel really good about our competitive positioning and ability to grow wireless profits, given our leading network and our improved focus on customer retention. Shifting to our broadband business, we believe AT&T is uniquely positioned as an integrated fixed and mobile network provider with the ability to serve all segments of the economy. We're expanding our fiber customer locations and are focused on a best-in-class product experience to drive further penetration and subscriber growth. In the near term, we are focused on investing in the fiber business, which will grow revenues. Over the medium term, we expect deeper penetration to drive growth and profitability. For WarnerMedia, we remain in investment mode against the backdrop of a better operating environment. We all know the rapid changes impacting the media business. We believe the investments that Jason has highlighted will generate attractive returns and place us among the winners in the future of how people want to consume high-quality, engaging content. In the near term, we expect to continue to invest in the media business at elevated levels. This investment is expected to be offset by continued expense management, recovery of advertising demand, and the resumption of content production as the impact of the pandemic subsides. Over time, we expect relatively attractive unit economics of scaling HBO Max globally to offset anticipated secular pressures of our cable business. In Business Wireline, we continue to simplify our portfolio by transitioning away from non-strategic and lower-margin products. Recent top-line trends should therefore continue. In 2021 and beyond, we expect Business Wireline to operate at attractive margins and contribute significantly to our free cash flow. Latin America will continue to be a story of executing in a challenging environment. We will continue our expense reduction efforts across the region. Additionally, in Mexico, we see an opportunity to grow wholesale relationships and garner wireless customer growth. When we add all this up, it supports our expectations for an improved profit trajectory for our businesses over time. Shifting gears to our balance sheet, let's move first to our C-Band financing. We purchased 80 MHz of mid-band spectrum in the C-Band auction for $27.4 billion. $23 billion of it is due this year. The balance sheet is able to accommodate this. Nearly $10 billion of cash on hand at the end of 2020, and nearly $21 billion in a term loan in commercial paper for a total of $30 billion. This provides us with more than enough to fund our C-band investment and other near-term priorities. As Jeff outlined, this investment nearly doubles our mid-band spectrum holdings and provides us with ample resources to continue to expand the capabilities of our network while leveraging off investments we are making in our fiber infrastructure. Our liquidity position and anticipated cash flow allows us to continue to distribute nearly $15 billion in dividends, pay back a significant amount of our debt, and invest $21 billion in gross capital in our network. Let's look at our debt overview. Based on our current outlook, we expect to end the year with a leverage ratio of around 3x net debt to adjusted EBITDA. Going forward, we expect to use all excess free cash flows after dividends to pay down debt, and we'll continue to look for opportunities to divest additional non-strategic assets. Given current expectations, we anticipate reaching a leverage ratio of two and a half times or lower during 2024. We'll do that through a combination of debt reduction and adjusted EBITDA growth. In 2019, we guided to a lower net debt to adjusted EBITDA by the end of 2022. Why the change? First, COVID negatively impacted our profitability, but the behavioral changes that emerged from the pandemic also accelerated a number of trends in our business, and we believe now is the right time to lean into favorable secular tailwinds by investing in our key strategic priorities of 5G wireless, fiber, and HBO Max. We believe these investments will drive value creation over the longer term. Clearly, what we learned in 2020 is that connectivity has never been more important to the way we interact in both our personal and professional lives. Growing demand for connectivity makes it critical to invest in fiber and spectrum. Combined, they provide a differentiated value proposition to both our wireless and wireline customers. The same holds for investments in content. The delivery of high-quality content to our customers when, where, and how they want it is the future of the media industry. We believe this investment at scale will deliver attractive shareholder returns. As Jason discussed, we have a long track record of success in producing high-quality, compelling content. Finally, the separation of the video business does weigh on our absolute profit levels, decreasing EBITDA and increasing our net debt to adjusted EBITDA ratio. At the same time, the separation of the video business, plus anticipated benefits from our cost transformation initiatives, puts us in a position to return to adjusted EBITDA growth. Let me summarize it all on the last slide. What we have shown you here today is a company focused on growth, execution, and delivering shareholder returns. We are all about connecting with the customer and growing those relationships. We have the capacity to invest and are doing just that in the areas we consider most important: 5G wireless, fiber, and HBO Max. We expect to fuel those investments with revenue growth and delivering efficiencies across our business. Additionally, we plan to continue to unlock capital by monetizing non-strategic assets. We are also committed to sustaining the dividend at the current levels and reducing debt. We have a clear path to deleveraging our business through a thoughtful and dedicated capital allocation process. Our investment priorities of 5G, fiber, and HBO Max and continued operational transformation sets the stage for a focused, purpose-driven company, a company that is investing and focused on growth and creating value for both our customers and our shareholders. That concludes our presentation. We will now get together for the Q&A portion of the day. Thank you, Pascal. We've saved a majority of our time this morning for Q&A, as we know that getting a chance to ask our senior leadership questions about our business makes the best use of your time during these events. Similar to our earnings calls, we ask you to ask one question and one follow-up so we can include as many participants as possible. With that, I'll call on our first participant. We've got Simon Flannery from Morgan Stanley. Simon, the floor is yours. Great. Thanks, Amir Rozwadowski, and thanks everybody for your time today. I appreciate it. If we could talk about the C-band deployment, please, could you help us with the timeline for deploying the 40 MHz that you got initially? When will you get to, say, 100 million pops and coverage? What performance do you expect from that? I think in the press release you mentioned $6 billion-$8 billion of CapEx related to that. Is that incremental to your current run rate of 2021 of gross CapEx? Any color there would be great. Thank you. Jeff, why don't you go ahead and pick up Simon's question, if you would, please? Yeah, you bet. Thank you, Simon. Our deployment plan will begin towards the latter part of this year when that spectrum becomes available. We're already hard at work readying the network. We'll be on pace to cover roughly 70 million-75 million pops by the end of 2022, and we will surpass the 100 million pops early in 2023. As it pertains to the $6 billion-$8 billion of investment in our portfolio, I'll remind you that over the last couple of years, we've stepped up our investments in our wireless network as we have deployed our FirstNet program, the Band 14, with our efficient single-touch approach. As that program begins to enter its final stages, we're shifting our investments in wireless to more densification, which includes the deployment of our C-band spectrum. It'll be an allocation shift within our current portfolio. Great. Thank you. Next question, Amir. Thanks very much. Next question, we've got John Hodulik from UBS. Great, thank you and good seeing you all. Maybe for Jason. Jason, could you talk about how the content lineup on the AVOD product will differ from the content lineup on the current SVOD service? Maybe talk about the reliance on our inclusion of sports, and then anything you could tell us about sort of longer term content spend. I think you guys had announced you spent about $2.4 billion in content in 2019, but maybe how do you expect that to grow as we look out to those longer term numbers you gave? Thanks. Hey, John, if you didn't know, it's two minutes to 11 where you're at right now. Jason, why don't you go ahead and pick that up? Hey, John. I'll start sort of in reverse order. We don't have plans this year for any sports in terms of live sports. We certainly are fortunate to have relationships with some of the most premium sports that exist in terms of live events. We don't have any plans this year with regards to HBO Max and live sports in the U.S. market. In terms of your first question about the content differential between the ad-supported version of HBO Max and the advertising free version of HBO Max, the main difference is going to be the theatrical premieres. They will be in the current version of HBO Max. They will not be in the advertising-supported version of HBO Max. Those will be, by that point in time, about seven movies. Everything else will be the same between the advertising-supported HBO Max service and the ad free. We will not be having advertising inside the HBO original series. That's something that I didn't mention in my presentation just now, but in case that's helpful. Then your third question that you asked was about level of content investment, and you're absolutely right that we've invested aggressively and thoughtfully in terms of this past year, and we're investing more this year. We anticipate that as the business grows, as you saw me share in terms of revenue guidance, that our investment in content will proceed accordingly. Keep in mind, we come at it from a perspective where we have a 98-year library of content and intellectual property and the opportunity to lean into that. On a leverage basis, I think you'll see us perform a bit better than many players in this industry. Great. Thank you. Amir? Thanks very much, John. Next question is from Michael Rollins with Citigroup. Thanks. Good morning. Two questions, if I could. The first one is, you described a net debt target of two and a half times EBITDA or less by 2024. To get to that goal, how much is dependent on reducing the numerator of net debt relative to increasing the denominator of EBITDA? Secondly, with the focus on software-based entertainment, are there ambitions to take more of the WarnerMedia platforms to go direct to consumer, whether it's Turner, CNN, or your other cable networks? Pascal, why don't you pick up the first one, and then I'll let Jason handle the second. If you noticed, John, we indicated that both earnings will grow as well as net debt will be reduced over the timeframe. We're not giving guidance on the particular split between the two, but we're really comfortable that over the course of the next several years, earnings growth coupled with disciplined capital allocation will get us in a good spot. John, to pick up your question about opportunities for WarnerMedia, you're absolutely right that there are opportunities beyond just HBO Max in terms of going direct to consumer and ultimately going global. The way I think about WarnerMedia from a consumer perspective is that we do three things really well. We're great at general entertainment and moving the world through story in that manner, but we also do, as you said, news and information via CNN, the number one news franchise in the world right now. We also have a thriving interactive business. When I think about the next decade, two decades of WarnerMedia, I think there's fantastic opportunities to increasingly go direct to consumer and to go global across general entertainment, across news and information, and interactive. Thanks, Mike. Amir? Thank you very much, Mike. Thanks. Next up, we've got Phil Cusick from JPMorgan. Hey, guys. One for Jeff. Jeff, your one and a half terabyte and five terabytes for top 10% customers in 2025 clearly justifies the fiber build. How widely do you think fiber will be available across the AT&T customer base at that point? That's a great question. It depends on our success, and right now the success that we're seeing with our investments early in this next tranche of fiber give us conviction that this year we'll put 3 million homes, add 3 million customer locations to our network. We're looking to step that up to roughly 4 million next year with some success in this year's build program. If we keep up with that pace, our vision would be to have over half of our portfolio, or 50% of our network, covered by that fiber asset. The important note is we're building a lot of fiber to support our wireless franchise as well. So as our integrated fiber plan improves the yield performance on that fiber, it'll further give us conviction on continuing that investment in the coming years. Yeah, Phil, I'd add to that. If that makes sense. similar to what I shared in the earnings call, I think when the question came up, which is every time we go through an outside plant monetization, roughly about two-thirds of the footprint that we support today ends up being economical on a straightforward, what I'll call competitive markets basis. I wouldn't be surprised if because of the market success and the way I see the team executing right now, if we are kind of on this march to somewhere in the two-thirds of the footprint dynamic. The other piece we don't really quite have a complete handle on yet is, I think there's a 50/50 chance something gets done on infrastructure right now, and it's likely that there'd be some kind of a broadband dynamic in the infrastructure, and what ultimately happens in terms of some degree of incentive to possibly build out some of those areas that are in the other one-third that we don't necessarily get on a competitive market basis. It's possible there's some models out there that we look at and say, "That makes some sense, and we ought to go chase those," but we'll probably know more about that over the course of the next three to six months is my guess. Amir? That makes sense. Jeff, what do you think the one in five terabyte forecast means for a mid-band wireless home broadband product? Is that still an interesting product for you over time? Well, the large consumption that we are anticipating over the next five years will be hard to meet with a wireless-only solution. To be honest with you, that's not our point of view, and that's why our hybrid fixed and mobile approach, Phil, is the appropriate strategy with our network architecture. As John mentioned, there will be portions of the footprint that will not be economical to serve with fiber, and we would intend to put at the edge of our fiber network, this wireless C-band asset, along with our other mid-band spectrum, to serve some of the limited use cases that we think are available for a fixed wireless solution, but that's not our primary focus for that band, and that's not our primary focus to serve that heavy demand with broadband. Yeah, I want to add to that, Phil, because this isn't something that we've taken lightly, and I think you saw Jeff maybe give you a little bit of a window in some of the data and analytics we've done. In literally looking at this over decades and understanding what's going on in a customer's household, even before the pandemic hit, and looking at traditional consumption patterns. We have seen this very consistent dynamic occur over the last decade of the delta of growth between fixed and mobile. That's nearly a 10X delta in consumption between fixed and mobile. While both are growing dramatically, and there's been a lot of great investments in both industries to increase the capabilities that have brought more utility in, you don't see that occurring. Jeff alluded to it in his remarks, but when you start to look at what's happening in some of the trends in the household, accelerated by the pandemic, in particular in the upstream, what that's doing to start to close a delta that traditionally had been 10 to one in the upstream, that's now collapsing to something more like five to one. If that occurs, boy, that starts to put a real tax on a mobile network in terms of managing your spectrum efficiency along with just the straight tonnage that's going on. Simple issues like if you just go do the math on what happens for a traditional broadcast entertainment service, like watching linear TV networks that migrates away from broadcast or multicast technology into unique unicast streams, then you upsize that and say more of that's moving from 720p or 1080p up to 4K. You get some pretty dramatic increases in the household that just goes along with, we're not talking about innovation, just normal behavior trends of a customer moving into the next iteration of a product change in entertainment consumption, let alone all kinds of other things like growth in interactive that Jason talked about, other things that might be more socially dynamic in terms of their experience set, et cetera. We feel pretty strongly about this, and we still believe it's really wise to invest in fiber in a prudent fashion, leveraging all of our market segments like Jeff described. John, there's one thing I could add. Phil, think about the fact that we had this VDSL footprint, this U-verse footprint. Fiber is deep into the neighborhoods in what Jeff's doing. This demand that goes in the home that John just described, we can meet by just taking it from the neighborhood to the home, as opposed to what would be traditionally a greenfield build. We're in a much different position with the deploying this and the capability of deploying it because of that historic footprint that we have with fiber deep into the neighborhood. Amir? Thanks very much, Phil. Next up, we've got David Barden from Bank of America. Hey, guys. Thanks for taking the question. I guess my first one is for you, John Stankey. In the 2019 Analyst Day, I think you tried to abbreviate through shorthand the rationale for putting the media business and the telecom business together. It was, for every one basis point of churn, we're going to save $100 million in costs. I was wondering if you could kind of revisit that based on the learnings to date, and can you put numbers or any kind of quantification around the value creation that you've been able to extract to date and where that could go? I think, if I could, the second question would be for Jason. You made a comment that you believe that HBO Max is now the second-largest revenue-generating streaming product, which is kind of important because if you look at the Disneys of the world, the market is putting 8x revenue multiples on 2025 revenue-generating capabilities and discounting it back today and coming up with massive valuation contributions to the businesses. I think that the question mark for HBO Max is how much of that HBO Max revenue is just old HBO revenue that's being called HBO Max now, and how much HBO Max revenue can we really get as we look out to those 2025 goals? Thanks. David, let me try to touch on the first issue. First of all, I wouldn't just look at this as a churn dynamic, and I think Jason was pretty good about articulating this in some of his comments, which is, we've gotten a tremendous head start and lift into our SVOD growth because of the two businesses being together. I'll even go before the day of launch, and if you think about the work that had to be done to normalize distribution agreements and get ourselves set up so that we could make the pivot from a linear foundation, which was HBO, to a forward-leaning SVOD capability, which was HBO Max. Absent the ability for the broader AT&T to play those relationships and manage those dynamics in getting those carriage agreements normalized and getting to a place where we could bring the wholesale base with us and to begin to move those customers over, I don't even think we'd get out of the gate. Jeff and his team have done, in my view, a really strong job for Jason's team in helping to drive additional penetration of the product and additional conversion into the product, which has helped us dramatically in the early days. Now, as Jeff has increased the distribution of the product on his base, we're now seeing what's happening with these premium customers that we have and what's happening with the churn dynamics occurring. In fact, that contribution is starting to come through. It's healthy and good for Jeff's business as soon as he gets somebody into HBO Max and actually using the product and service. Jeff, you can give a little bit of color on exactly what you're seeing in terms of the delta changes based on the level of engagement, and then Jason can pick up the question on where we're going on the other piece. Yeah, indeed. We're seeing really nice success over the course of the year since we launched HBO Max, along with the other changes that we made in the mobility business to drive improving subscriber momentum. Now AT&T is back, as we showed in the fourth quarter of last year, actually growing a share of net adds larger than our market share. So we're back to growing in share. That's not only because of one particular promotional offer. It is a combination of many things, the inclusion of HBO Max, the simplification of our rate plans, and so forth. As I touched on in my opening comments earlier, we're seeing really nice NPS promoter score lifts from the customers that participate in HBO Max and wireless customers that participate with fiber. When you combine all those together, what I like to think of as really the best of what AT&T has to offer, we're seeing the highest net promoter scores from that cohort of customer base. That is translating to better churn performance, which helps us establish more growth of revenues and certainly more growth in EBITDA in the business. I would tell you, our early signs, not even a year into the launch of the program, we like what we see. We are seeing our customers really react positively to the value proposition that we're putting in the marketplace. Highest LTV subscriber base that has that mix. Yeah, that's exactly correct. As we drive more of our customers into that trifecta like that, we're increasing enterprise value, and it's goodness from my point of view. Jason? David, thanks for highlighting revenue. It's something that I think doesn't get talked about enough in the industry. I'm a big believer, obviously, in the number of subscribers, in the U.S. market and worldwide of course, and we are laser focused on that. I think you have to also do it with an eye towards revenue too, because if you're going to proudly and confidently invest in content for decades to come, you have to have a very strong business model and revenue is an important part of that. We do think a lot about that, not just in the U.S. market, but as we expand HBO Max overseas as well. To your question about how you should think about the combination of HBO and HBO Max revenues, if you think about it based on engagement of the people that are activating, using a service, et cetera, we're not quite 10 months into HBO Max in the U.S. market, but you can already kind of see the majority of revenue is accounted for by HBO Max in that HBO plus HBO Max revenue number. That's a lot when you think about it. That's an impressive stat to me, for sure. When you think about HBO as a well over 40 year service, and within slightly less than 10 months in the U.S. market, we are now seeing the majority of revenue accounted for by HBO Max, if you assume that engagement and those folks that of course, are subscribing directly to us as part of that. To your last question about what should the expectations be over the next five years, I can say with confidence that I believe that the vast majority of revenues that you see combined between HBO Max and HBO over the next five years, let's say 2025, I believe what you'll see is the majority of those revenues will absolutely be HBO Max. I think this point about engagement and the march on the revenue side is really important. The team, when we started out, knew that getting the HBO base over to HBO Max was absolutely essential to us for the long-term health of the business, and we've given you all the stats on what's happening on customer growth and what's occurring. Early on in that process, it was something I was watching like a hawk, and it was something that every month we wanted to make sure we made the march and we were. Then to Jason's team's credit, went forward with the day and date releases on theatrical, and we saw the next shot of adrenaline come into that conversion dynamic. We are at a point now because we've gotten over that tipping point, David, where I'm like, it's mechanically every week and every month we're seeing the movement of more conversion, and I think we're past that point and we're just like, the base is the base now, and we know we're going to arrive where we need to arrive. Hey, David, I would add one more point you should be mindful of. When you look at the composition of the revenues for HBO, what you see is a decline in wholesale revenues being offset by improved retail revenues. We expect that dynamic to continue. The fact that we have a wholesale base gives us a great place to start. Amir? Thanks very much, Dave. Next up, we've got Brett Feldman from Goldman Sachs. Great. Can you guys hear me? Yeah. Sure can, Brett. Sure can, Brett. Good. I'm going to stick with HBO Max, and first I have a point of clarification and then I'm going to come back with a follow-up question. The point of clarification is the guidance that you gave for the investment where you would see peak dilution in 2022 and then break even in 2025. Were you referring to the full HBO sub-segment P&L, meaning negative EBITDA through 2024, or is that a carve-out unique to the investments you're making with Max? I have a follow-up. Go ahead. It is the entire HBO business that's reflecting. As you would anticipate, the U.S., we're going to end up crossing that line earlier, call it roughly two years earlier. What's causing the dilution is as we go out to each new market, we're making investments, so bringing down the overall dilution overall. That's the issue. Understood. I was going to jump into my follow-up here. Yeah, go ahead. There's a ton of new direct consumer products coming to market, all chasing a similar TAM. I suspect many of them will struggle to reach the scale that you anticipate for HBO Max. As you reach 120 million, 150 million plus subscribers, it's not just going to be a scaled service, it's really going to be a scaled content distribution platform. I'm wondering if over time you'd be open to offering that platform to some of these streamers as an alternative way to reach scale more quickly and more efficiently while maybe even potentially broadening the addressable market for the HBO Max product. Let me start, Brett, hand it to Jason to give a perspective. I think I've been pretty consistent in the point of view on that. I think you articulate it right. I would just go back and highlight the fact that getting volume and real revenue associated with each of those customers is really what you need to do to be one of those sustainable long-term platforms. I think we're being pretty diligent around that. We have, in some cases, those that have come out of the gate really hot on subscriber numbers that are generating relatively low revenues associated with it, or in some cases, no revenues associated with it. This balance is really important because to the extent that you make that pivot successfully, I think you ultimately have an opportunity to shape how the industry gets formed. It gets formed by the natural consolidation that occurs in, let's call it legacy media, and where those resources and that IP ultimately consolidates, or whether it happens because there's a reaggregation of some kind of a bundle. I think you could see probably maybe a little bit of each scenario possibly playing out over time. As I said, it's really important that we be part of the race early on to ensure we can set some of those rules as that takes shape over the next couple of years. Jason, what would you like to add? I think John very much summed it up well, Brett. What you just described is a marketplace playbook. I know that real well, given my experience over the last couple of decades, dating back to Amazon. As John said, there's going to be a relatively small list of companies, I believe, that are going to get to scale. When you get to scale and are able to deliver things that not only consumers want, but content creators and content owners want, well, then you're in a very interesting position where you have the option to be able to aggregate that in ways that you couldn't when you were a smaller player. Brett, I think what you're highlighting is an absolute opportunity for a very short list of companies, and I'm biased when I say this, of course, but I think we're going to be one of those companies that have those options. Thanks very much, Brett. Next question, we've got Craig Moffett from MoffettNathanson. Hi, thank you. A question for Jeff, if I could, my partner, Michael Nathanson, may have a question for Jason, I'll stick to the wireless side. As I think about the C-band spectrum, over the last couple of days in your competitors' analyst days, I may be putting words in their mouth, I think T-Mobile has sort of argued that their competitive advantage will be the propagation advantage of their lower frequency mid-band spectrum, and therefore, they will have a coverage advantage for high-speed 5G. Verizon seems to be focusing on, they will have a particular advantage of a very high-speed, ultra-wideband network based on millimeter wave in some locations, and that will be sort of their competitive advantage. I'm wondering how you would articulate sort of what you think your competitive advantage will be. Will it be speed, coverage, or is that the wrong question? Is it relationship with HBO Max or something? How do you sort of articulate the value proposition for customers to say AT&T is the best network? Craig, thank you for the question. As I alluded to in the opening remarks, we do not believe that the wireless or fixed broadband marketplace is ubiquitous. There's not one solution that's going to meet all consumer demands or consumer expectations. As we think about the design of our offer set to the market for each of those customer segments, each of these assets play to the strength for that particular segment. For us, our value proposition is to serve customers how they want to be served with enough bandwidth and capacity and speed, and we'll let the technology architecture, the serving architecture, meet that demand or that need for that particular customer segment. Having said that, with low-band spectrum, I think we all understand as engineers that you get great coverage, great in-building penetration, but you don't get high capacity, high speed to serve a mass market for the kinds of broadband demands that we see coming ahead, coming at us for fixed and mobile networks. When you get up into the mid-band segment of spectrum, while it offers us really wide bandwidth for speed and capacity, its coverage characteristics don't penetrate as effectively as the low band does. As we design our network and our offers in the market, you will see us densify our wireless network on the top of our investments in fiber. We choose to serve our customers that demand high-speed bandwidth with fiber, and we will utilize our wireless networks to serve those other niche use cases in areas where fiber economics do not make sense. Yeah, I would just, Craig, to get at one of your comments a little bit more directly. If you step back, mid-band spectrum is mid-band spectrum. It's never going to propagate like low-band spectrum, and I don't think whether you're operating at two and a half or elsewhere, you're going to change that. Nominally speaking, is two and a half somewhat better than the C-band? Yeah, nominally speaking, it's somewhat better. You have a decision to make, which is if you want that two-and-a-half gig spectrum to work inside, you're going to have to change your cell grid pretty significantly to make it work really effectively and carry the kind of rates that I think folks are talking about. That's a conscious decision a carrier could choose to make, or you can make a decision to ultimately put a denser distributed fiber network out there that allows you to pick up multiple market segments that you can serve on a mixed product set. Both are approaches. We're choosing a slightly different approach, which is we think that mid-band spectrum has its role. It has its role in being a premium mobility product, and we think there's better ways to kind of deal with what's going on inside most of the walls of society. Michael Nathanson- John Do you want to ask your question? Well. Guess not. Looks like we're on to another feed. Yes. Sorry. Next up, we've got Bryan Kraft from Deutsche Bank. Hi, good morning. Thanks. I have two questions, if you don't mind. First, wondering if you could give some more color on the expected HBO Max subscriber base at year-end 2025 in terms of domestic versus international and premium versus ad-supported. Also within that, how deep into the wireless and fixed broadband base are you assuming HBO Max will be penetrated at that time? Then I wanted to ask you a separate question, and it relates to what is your strategic intent around offering an OTT video aggregation platform as a service bundled with your broadband and/or wireless services? What's your ability to do so given the sale of the DirecTV stake and the commitments you made in that deal? Thank you. Jason, why don't you go ahead and hit the front end of it? On the front end of the question, in terms of the color, for 2025 breakdown, you should think about half of those 120 million-150 million subscribers being outside the U.S. market. Obviously, that could change based on growth rates in each specific country that we go into. Generally speaking, I think that's a fair way to model it at this point. In terms of the ad-supported breakdown, it's too early to tell. In the U.S. market, it's interesting. There's data points that you can see from Hulu, for example, where people have estimated what% of their subscribers have chosen the ad-supported option, which is actually the majority of customers. I don't know what customers are going to decide to do with regards to HBO Max. I'm cautiously optimistic that by offering a great service that's thoughtfully and elegantly executed at a lower price point, I think there's going to be quite a few customers that are going to be interested in that. We'll happily serve both of them, by the way, both the ad-supported and the ad-free versions of HBO Max. It's too early to tell because a lot of work needs to be done outside the U.S. with regards to a study of the ad market and which countries can support an advertising-supported version of the HBO Max service, and some markets won't be able to support it. I hope that gives you a little bit of visibility in terms of how we're thinking about U.S. versus non-U.S. breakdown in 2025, and then also our thoughts about the U.S. market for ad-supported. Bryan, let me try to answer your second question around how to think about the reaggregation and how we think about the platforms. I will tell you in the decision to structure the DirecTV transaction the way we did, we made a conscious decision that building a software-driven, forward-leaning platform like HBO Max and getting scale on it was our number one priority. As you heard Jason allude to in a couple of his comments, to the extent that broadening those relations with that customer base starts to open up options to go either with, let's say, another direct-to-consumer offer on something that's news centric or broadening the option with an entertainment based offer, interactive based offer associated with it, that that was where we wanted to lean and make sure we didn't compromise on software and the platform and how we were thinking about that customer base because we like the growth trajectory of all those things. I think what you're alluding to then is, well, should those distribution platforms also be a place that ultimately, let's call it traditional linear reaggregates? I don't know. It may happen. I will tell you, when we did the DirecTV transaction, we had specific discussion around that. We left options open. We still have a partnership. We still are a 70% owner. My belief is the restructuring of let's call it the traditional bundle still has a few innings to go here. It's probably going to be a little bit choppy as it goes through that restructuring. I think what we consciously want to do is let the DirecTV entity and all the others that are in what I'll call the core pay TV business go through that dynamic of the restructuring of the linear, getting down to what the essential is carrying forward, maybe reshaping the traditional constructs around what that distribution agreement looks like. If there's a way to catch it or move it in, we still have the option with our relationship to do that, and we would be highly incented to do that if we thought that was a good play in the market based on the operational ownership structure of the asset. That's not a today, this week kind of decision. This week and today is about leaning into the future. Did we get at all your questions there? I think the only other one was, what's the underlying assumption about how deeply your wireless base and your fiber to the home broadband base is penetrated with HBO Max and that 2025 guidance? Yeah, good question. I'm sorry I missed that one. Jeff, go ahead. Yeah, given the take rate, Bryan, that we're seeing right now from the subscribers with our value proposition, and we're getting really good affirmation, the engagement levels that we see on those top-end tiers, our one gig offers in fiber, along with our new unlimited plans, is showing great signs for us. I anticipate further traction. This is an important element as well, Bryan, because the subscribers that are electing to move up in speed tiers as they demand higher quality symmetrical bandwidth in their homes are doing so consuming this high-quality video content. As we see engagement scores coming on the Max platform, it's really tying a really nice loyalty component with a broader relationship with that household and that customer segment. From the mobility base as well as the fiber or broadband base, you're seeing customers move their way up the rate plan stacks, getting more value with better speeds and better access, and incorporating the HBO Max platform. We see those engagements go up. We see more ARPU lift and more loyalty translates to lower churn and better value. I would anticipate more than half of our subscriber base by the time we get to 2025, if not higher, would be participating in that dynamic. Thanks very much, Bryan. Next up, we've got Frank Louthan from Raymond James Great. Thank you. We've got a question, then a follow-up. Haven't heard a whole lot about the Turner assets. With the sale of DirecTV, at some point, are those assets necessary to have in the pool? I have a follow-up. Jason? Frank, a, nice guitars on the wall. My friend Jeff McElfresh is a big fan of that. Not as nice as the phone. Yes. Check out your phone. Check out that throwback there to some legacy businesses. That's legacy wireline. BlackBerry. To answer your question about the Turner networks. I'm a big fan of the Turner networks, but let me explain why, and I'll start with customers. In the U.S. market, there are 85 million households that pay to be entertained through linear channels. That's more than any subscription service has right now in the U.S. market. A lot has been said about the decline that we're seeing, that everybody is seeing in terms of linear channels, in terms of the pay TV bundle. While that is true, we're at 85 million. 85 million homes are choosing to be entertained and be moved through sports and news and entertainment. When you look at those businesses, and I've run a lot of different businesses in my life, that's a damn good business when you have 85 million households that are choosing each month that form of entertainment. The margins you know very well are incredibly attractive, some of the finest that I've ever seen in my career. They generate a lot of cash flow as well. It's incumbent on us to make sure that we're investing in those businesses smartly, and we're doing that in terms of our sports relationships, our news production, and then also our movies and series production as well. We proudly invest in those businesses because they're really good businesses. From a financial standpoint, as I said, they generate a lot of cash flow that allows us to not only invest in the Turner businesses, but also in the HBO Max and Interactive and eventual other direct-to-consumer businesses as well. They're incredibly helpful to the portfolio. All right. Great. That's helpful. I guess my next question more for Jeff. Talk to us a little bit about how you're addressing the rural market. You didn't participate in the RDOF auction. John, you're mentioning possibly looking at maybe some infrastructure subsidies and so forth. As you built out FirstNet, and it creates an opportunity there, one of your peers has a lot of that market share. How are you viewing the rural market, both on a mobility standpoint and on a broadband standpoint? Yeah, Frank, the rural market, we're actually quite strong in the rural market. As you mentioned with our FirstNet investments, we're seeing nice gains in our wireless business as a result of that FirstNet program. As we think about how we choose to serve the rural marketplace from a wireless perspective or even a fixed infrastructure perspective, you will see us transition away from slow speed, low speed copper networks over to possibly wireless options with the spectrum that we have deployed. We've doubled that over the last four years across the footprint. We've got ample capacity with our wireless network to offer some offsets and catch products as we start to sunset the legacy fixed infrastructure in low speed or slow speed DSL, which frankly is about 20 years old. As John alluded to in his opening remarks, we do anticipate there to be infrastructure investments being made and potential legislation that might support a step-up investments in more fiber deployments that we look to deploy in our network plan. As we announced, we're going to expand our initial fiber deployment. We're going to expand that in our 90 metro area markets, filling in areas where we don't have complete coverage and expanding. Then in our rural marketplace, I do anticipate us catching a broadband opportunity with our wireless infrastructure. We are the third-place player in wireless. I want to be very transparent with that. We find ourselves not as the share leader, and it has been, Frank, many years since we've actually grown our wireless premium postpaid business. We have finally gotten this business back to a growth profile, and that is a combination of many things, both metro, suburban, and rural performance, and we look to continue that strength as we continue here in 2021. Yeah, I might add on to that, Frank. I've been trying to keep my head down on what's going on inside the business, but the one area where you've probably seen me out spending a little bit more time speaking publicly and discussing things has been about the digital divide, and the rural dynamic in particular is pretty significant. I'm participating in that for a couple of reasons. One is I really think it's something the nation needs to address, and it's time that we do it with some coherent policy, as coherent as what we did when we decided universal voice access was important to this country for commerce and social ability and all the things that it ultimately achieved. I believe that that has to happen in the world of access to the internet. Secondly, you mentioned RDOF. We didn't participate in RDOF because the rules were a little bit hard to understand to know exactly what it was you were signing up for. It's really important to us that if we make a commitment to do something, that we do it in a way where we can be confident that we're living up to the expectations of what we're signing up for. I'm participating partly to try to get the policy right so that the incentives on subsidy are ultimately structured properly. One of the things that I think will help tremendously is the fact that Congress has now funded the FCC to go do some appropriate mapping of where broadband exists and what the circumstances are. When you get into these reverse auctions, you know exactly what it is you're signing up for, and there isn't any misunderstanding or miscommunication of what it is you, quote, "bought into" in terms of what you have to deliver. I'm pretty confident that knowing that with that information, there's no reason to assume that AT&T can't participate in those things moving forward if I do my job right in getting those points of view on policy out there, and they ultimately get adopted in some way that we think is acceptable. I wouldn't look at past behavior necessarily as being the indicator of the future if we get these things to fall into place. Thanks very much, Frank. Next question comes from Douglas Mitchelson from Credit Suisse. Thanks so much. I got 1,000 questions for Jason. I'll try to restrain myself, but I'll ask my follow-up right away as well. Jason, on the ad-supported HBO Max, peers are seeing north of $5 a sub of revenue a month. Do you price the service to drive share and assume that you'll have ad growth over time, try to get something eye-popping well under 10 bucks? Do you price right at breakeven relative to your $15 subscriber pricing sort of today? The follow-up is, that subscriber guidance is a big increase. Let me challenge you a little bit. I think, ballpark, get your revenue and subscriber guidance, you're targeting something like a 25% penetration on 250 million broadband homes overseas at a high single-digit ARPU. Not that you're going to confirm those numbers, the point is, Netflix sort of grows penetration 4% to 5% a year in those territories, Latin America and Europe. How do you go from a standing start in four years to what is a pretty big international penetration to make your sub numbers? Sure thing. I'll take the second one first, which is, the reason why I have confidence in the next four years, going through year-end 2025, is because, candidly, of my kind of experience dating back to 2007 in streaming, back in the earliest of days when people were attempting to charge consumers around the world for premium video streaming services. Based on kind of what we've seen in the U.S. market and also my experience in overseas markets, obviously all the things that you referred to, I think it just comes down to that moment of truth that consumers are going to make that decision as to how they choose to get entertained, which services they choose to adopt. When you look at the offering that WarnerMedia is presenting through HBO Max, I feel very, very good about those numbers. You referenced broadband numbers, but let's also not forget that there's quite a bit of wireless consumption that's happening in a lot of countries around the world with much lower bandwidth required, lighter versions of these services. We're very, very excited about it, and there's nothing better than when you jump into a rising tide in terms of running businesses. Make no mistake, connectivity is a rising tide business in terms of the amount of global investment. You obviously heard Jeff and John talk quite a bit about the amount of investment that's going on in fiber and spectrum here in the U.S. market. Well, just think about that all over the world, and as each day things get better and better, it causes HBO Max to be a better and better value proposition. I haven't even gotten to the content offering, which gets better and better each and every day. That's my sort of biased point of view on the next four years in terms of those sub numbers that I shared earlier today. You get a little help with the distribution as well. Amen. We get a lot of help with the distribution from my friend here to the left. Vrio down in Latin America. Vrio International down in Latin America. Let's not forget Vrio and all the great things that are happening across Latin America. There's a lot of wind in these sails. Many things are kind of building up to those numbers that we shared earlier today. The first question you asked is with regards to how do we strategically think about the pricing of the ad-supported HBO Max service, which we haven't announced pricing yet, but we will in the coming months. How do we think about it ultimately from a, let's call it a free cash flow perspective over the long term? The first thing I'd say is that we're capitalists, and I want everybody on this call to know we are capitalists, which is we think very carefully about the net present value of free cash flow. A number of things go into that, which is you can certainly take the approach that you described, which is go lower priced and drive subs, but then be on the journey to have to increase revenue to ultimately get to a point where you feel good about your cash flows. Given my experience in the ad-supported streaming business dating back to the early days of Hulu, I feel very good about our ability to cover whatever price break is given to consumers, and maybe then some, candidly, so that this product can be actually slightly accretive to our overall economics. I think we're going to be able to do two things, which is rather rare, which is to give consumers an incredible value proposition in the form of a lower price, and also be slightly accretive when you look at our business compared to the ad free business in the U.S. market. I hope I answered both of your questions there. Thanks very much, Doug. Next question comes from Kannan Venkateshwar from Barclays. Kannan. Thank you, Amir. John, I want to direct this question at you. This is a question Jason got a little bit a while ago, but I think the context is slightly different when it comes across to you, which is when you think about the media business, HBO basically will not get back to its legacy EBITDA two years ago for potentially a decade based on the investment cycle you guys are in. When you think about HBO as a business connected to the communications business, you're largely domestic, whereas now you're investing in a business that's largely international. When you put that context in place, when you acquired these assets, it was a source of cash. Now it's a drag on cash. The potential upside from the international business for the rest of your communications business is not as big. Why own this instead of using a third-party strategy where you can potentially get 10 streaming services attached to your wireless service instead of just one? maybe we could start there, and I have a question for Jeff. Okay, Kannan. First of all, I don't necessarily agree with some of the front end of your question about your calculations on when we start to see EBITDA recover. I would tell you, I have a little bit different view on some of the cash characteristics of why we bought the businesses. We didn't buy it as a source of cash. We bought them because we believe that customer relationships and building another subscription service that ultimately has deeper relationships with customers on a distribution platform had strategic value. This was a means to get that done. Set aside the front end of your question, still moving down that continuum, which is building a sticky, scaled subscription business is not a bad place for us to be. It helps our domestic business that we have, and it's a very valuable franchise that should be helped and that you want to protect as you move forward. It's a belief. If you go and think about all the discussion that's been going on over the last couple of days, where there's been an awful lot of dynamics around whose handset's going to be faster than somebody else's, and we're, in some regards, slicing hairs on a couple of those things. I'd much rather have the conversation on who's got a deeper and more emotional relationship with the customer, also gives great networks associated with it and has more insights as to who that customer is and how we can grow relationships with them through the kind of things that Jason talked about, which include other SVOD subscription services, possibly getting into interactive capabilities that we'll be talking more with you about the future. That, in and of itself, isn't necessarily a bad place to be for growth. That's how I think about it. Your underlying point of your question, which is that value being recognized in the reflection of the equity? No, I don't feel like that's occurring right now, and I'm not happy about that, and I wake up every day thinking about that. I understand that it's our collective responsibility with me as the leader to make sure that's ultimately manifested at some time and some point. I got to make sure that we execute on the right plays to make that happen. It's not like I go to bed every night thinking we've got the right formula right now in terms of communicating that. Your other question? Got it. Yeah. I guess on the wireless side of the business, your peers have laid out a path for 3%-4% kind of a top-line growth over the next three to four years. When you think about, you've been very aggressive on units recently, deliberately, and you guys outlined that strategy this morning as well. When you think about the longer-term growth framework, that 3%-4% kind of a growth framework, is that something that we should frame your opportunity also within? Is it higher, lower? What are the puts and takes there? On the fiber side, it's obviously a huge opportunity. At what point do we start seeing net growth across fiber as you go forward? Kannan, In units. Yeah, I'll take the back half, your second part of your question first. To characterize our broadband business in aggregate, we have about 14 million customers, 5 million of which are fiber served. Our penetration rates today are in the middle 30s. We are just now beginning our new investment phase for the next tranche of fiber that we've laid out. The bulk of our fiber growth is likely to occur towards the back half of this year as the build is accelerating and is building steam. We are seeing early gains in that build, as I mentioned in my comments. It will take us a cycle or two before we can deliver the volume on fiber in units to offset pressure in the legacy copper. We don't anticipate catching or losing all those copper customers in the lower speed DSL services, simply because of a fixed network. We may catch many of those with a wireless offer that we've alluded to and we actually offer today in many markets. As we think about what we classify as a broadband customer with our hybrid fixed and mobile network, you will see us discuss and outline a bit more overtly the volume of subscribers that are fed by fiber, that are fed by copper, and that are fed by our wireless solution in the future. In terms of your wireless question, while we have gotten really good response from the customer base, both those that we are retaining in our business as a result of our retention offers, but also those that we are taking from our competitors as we've simplified our rate plans and our offer set in the market is one item, one element of many that have given us the momentum and the volume that we've achieved so far, like in the fourth quarter. You've seen a nice, steady, progressive improvement in share of net adds and churn. I would suggest that the trends that we see are quite organic in nature. They're not built on any one given promotion, and we've guided to a service revenue growth in the 2% range here in this year 2021, along with getting back to some EBITDA growth year-over-year. We'll see that improve as the year progresses. We've not provided longer term financial growth, financial metrics on revenues. I would tell you, I like the volume that we see today. I like the response that we're getting from our customers. I like the trends that we see in the business, I would anticipate as the economy improves, if it does, we'll be there to compete. I said earlier, we're not here just to preserve a base of customers. We're number three in the marketplace. We've got a great network. We're going to continue to invest in that network, you'll see us continue to grow, at least at our fair share, if not greater. You might just reiterate your earlier comments about where you are in broadband revenues versus units. The revenue growth itself, we've guided to mid-single digits for total broadband revenue growth here in 2021. John, if I could. Can I just make a clear point? We're not speaking to what others are saying about growth rates, but if you think about what's happening in the market, Jeff's taking share in the sense of he was the share leader. We were the share leaders in, we believe, in the third and fourth quarter in postpaid voice. We've had an improving quality of networks and network offerings. While we are confident in our guidance that we've given this year with regard to the 1% overall revenue growth and 2% service revenue growth, I would suggest to you that if you do lean towards those numbers, that would be a positive for us. We're not suggesting that those are the right numbers, but we don't have any concerns about what the momentum of the business is going, and I think you've seen that the last two quarters. Thanks very much, Kannan. Next up we've got Colby Synesael from Cowen and Company. Great, thank you. Two questions, if I may. First off, you mentioned getting to leverage of, I think, 2.5 by 2024. Just curious if that's the end goal or if you're still targeting ultimately getting to the 2.0 to 2.25, which you've talked about previously in the past. Then perhaps as part of that, are there opportunities for other asset sales? You guys have obviously done a great job the last few years. Some people have brought up I mean Turner, but maybe anything within WarnerMedia more broadly. You guys talked about LATAM and Vrio. Is that something that is now incrementally more important as you go into Latin America with HBO Max, or is that something we could look to sell? Just secondly, as it relates to HBO Max, and Jason, as you go into these international countries, how much local content do you need to have that's specific to those countries, to those regions to have an effective solution, and is that embedded in the content costs that you're assuming over the next few years? Thank you. Colby, let me try to maybe pick up on the front end of this before I throw it to Jason. First of all, no, the goals are never finished, right? We always tend to move them around, and I think why we picked 2.5 at this juncture is sitting here at this moment where we stand today with where we are with what I would call yields on the dividend, interest rates in the environment, the market where it stands. It would seem like with that lens on things as we stand today, at about 2.5 you would step back and ask yourself the question, should you be recalibrating your capital allocation strategy at that point? We picked that to say between now and 2.5, our march is to get to 2.5, and we're going to explicitly take incremental cash and put it toward getting to 2.5 as quickly and as rapidly as we can get to 2.5. When we get there, I don't know exactly by the time 2024 rolls around, what all these other dynamics in the environment are going to be like. If they were exactly like they were today, I'd probably be asking myself the question, should we be thinking about allocations differently? I don't know what they're going to be in 2024. We'll look at them in 2024. When we arrive there, we'll ask ourselves the question. We'll give you some guidance and direction as to what we need to do. Do I ultimately think 2.5 on the balance sheet is the ending point forever and a day? No, I can't say that because I don't think, frankly, the environment is going to stay exactly the way it is today. The second question is there always continues to be more opportunity. I think we've given you some indication that we're looking at literally everything in the business. Those things, when you go into restructuring, they're not exactly a straight line. Markets change. Partners suddenly change strategy or potential strategics change strategy, and something that isn't in play one month gets into play a month later, or valuation expectations get more encouraging and something that you wouldn't have done four months ago all of a sudden becomes something that you could do. It's always evolving, and you're always looking at it, and there is more on the table. Yes, we believe we can do more. We've been very conservative in the guidance we've given you. We haven't gone and assumed that we're going to go into the closet and hit a home run and knock everything out that we think is a possible non-strategic asset that we might be able to move. We have been reasonable about ensuring those things that we think we have line of sight to are the ones that ultimately factor into those cash flows. I'm not going to give you any specifics on targets, but I'll tell you, just like I've said before, we continue to be really clear. We've talked about the market growth areas that we're investing in and what's important, things that sit around the edges. For the right kind of construct around it, we should be looking at it as a management team. Jason? Colby, I'll cover your question about local original productions around the world. The short answer, the first thing I want to say is we absolutely, in our projections for content investment and the plan that we have, absolutely include the dollars that are thoughtfully and smartly, and even aggressively, being invested in local original programs across the world. The good news is we have a very long history in doing this through HBO. Just a couple of weeks ago, we won four of the top six television awards in Spain for original productions that were done in Spain. This is something that I'm particularly excited about because while original productions on a local level tend to account for a minority of the total library or offering that you have in a given market, they do punch above their weight when you do them well. Thankfully, we have a long history of doing local original productions quite well. We're going to lean into our existing strength. We're going to buttress that investment and do it even more so in the coming years as we roll HBO Max out across the globe. I'm glad you raised the question. It's one of the things I'm most proud about. Great. Thanks. Thank you. We've got time for one last question. Turn it over to Tim Horan from Oppenheimer. Thanks for squeezing me in, guys. Just curious to try to understand the long-term trajectory of free cash flow growth. John, I don't know if you did a postmortem analysis of the last analyst day, but the free cash flow at this point is coming in about 20% below what we were kind of thinking 18 months ago. With the DIRECTV sale, it might be 30% below. What's caused this shortfall? I'm just trying to understand, is it temporary or is it permanent? I know COVID was not on the table at that time, but is the shortfall due to COVID? Is it because of competition? Is it because we couldn't reduce expenses as much as we expected at the time? I remember even a year ago, we were really focused on expense reductions, and I'm just not really hearing much of that at this point. I'm just asking the question to understand where can this free cash flow grow to. Thanks. Yeah. I think there's a combination of things that have to be looked at. One, COVID is obviously one that sucked out a bunch of cash that we didn't expect was going to be the case. Secondly, look, there is an administration change. I guess I'll put it under the category of administration change and a belief, as I walked into this role, that there were some things that we needed to step back from and think about differently in order to put the business on an effective path to sustaining itself for the next 10 years. That said that there's some places that maybe we need to change for the near term, some investment decisions, and that would get us on a better trajectory. We're investing at a heavier rate internally on things that Jeff alluded to, collapsing infrastructure, getting ourselves out of products that are no longer critical and strategic, getting a better IT infrastructure that allows us to compete in the market effectively, investing in some decisions that on the margin, there was some cash coming in in a couple of places, but they were very mature streams with very small product numbers around it. And my belief that if we shutter those product sets, if we get them out of the portfolio, we'll have a better and more focused management team. A decision to invest in the customer base in the near term, because my belief is that two and three years out, it's going to be highly accretive to us, but in the first year of choosing to grow that customer, it puts a little bit of a pinch on cash right now. A decision to go in and do some more fiber. We stepped up to $21 billion in gross capital this year in the plan. We were at a higher level than some others in the industry are now moving their way to. Part of that was in anticipation of some of these changes we've been talking about today. You add all that up and I think that's kind of where it went, and I realize that my obligation is to demonstrate that this year, that those things return profitable customer growth, profitable growth in the business, so that you look at it when you get confidence on the projections that we give you for 2022 and 2023. You walk out and say there's some substance underneath that, they're sustainable. I'm well aware that as we're looking at the equity right now, it's that pivot to carrying what are reasonable ratios that we can work our way through by most mathematical calculations. I think it's a posture issue on confidence that when the shareholder base looks at it and says there's confidence in that growth returning and that it's sustainable, then the momentum and the confidence comes back into the equity. I realize that's what's in front of this management team right now in terms of what we need to do. Does that answer your question? Just a follow-up on that. On the expense front, I know your cost czar, is leaving. Any thoughts on what you can do on the expense front, maybe using some of these new cloud-based virtualized technologies, both for OSS/BSS and the network? Let me just frame the front end of the question. Okay I'll have Jeff answer specifically around what we're doing on the IT infrastructure transition. Just because Bill's moving to a new assignment doesn't mean we are not doing this anymore. Bill came in and did a very effective job as somebody with a fresh set of eyes on the business, pulling data from a series of many third-party resources to benchmark each of our key operations and each of our core processes to come in and expose those areas where we could do remarkably better. Then spent the next period of time, over a year, working with the teams to build the plans to go, in fact, harvest that and get that effectiveness and efficiency back in the business over a multi-year process that ran for three years. Those plans are set. They are literally now in the point where they can be handed off to the operating people who have to go make them happen, and they're well defined. They have targets. They have some of the cash flow that you alluded to disappeared, allocated to them to go and, in fact, make them happen. We've now put an individual over the top of that is responsible for making sure that we execute well on that, and happens to be an individual who also has responsibility for capital allocation in our operating plan to ensure that we're funding those things appropriately to get the work done, that we get it done once and for all. We collapse the systems, we get the network in the right way. We're now in an execution phase, and Bill can go and add value to us on the DirecTV transaction, and we can go do the execution of the plans that he's helped the management team broadly build in the company. Jeff, if you want to go ahead and pick up on the IT infrastructure, go right ahead. I would say the execution of those plans isn't just beginning. They have been underway, and they've been integrated in with the operations. The notion that Bill is no longer involved in it, that that might, in some way, shape, or form, impede our ability to execute is not accurate. In fact, the teams that John mentioned that have been embedded inside of my operations have been executing these plays since last summer. One example of that, by way of example, could be the migration of our IT applications that support this very large legacy business. Roughly, I think, when we started this program, we had 340,000 virtual servers on premise with more than 3,000-4,000 legacy applications that had been customized to manage many of the products that John alluded to in some of his comments that have been with us for quite some time. Legacy architectures, legacy infrastructure. Last summer, when we brought in a gentleman by the name of Jeremy Legg to stand up a transformation of our IT stack and to get us to a cloud-based variable cost model, Jeremy and his team, executing the play of this transformation program, started the migration of such applications. We are well underway. We're getting great pace in that program, and that's helping us reclaim cost and expenses that we're still very focused on. We are choosing to reinvest those dollars into the market momentum in the focus areas of the business, 5G wireless, fiber, and software-delivered entertainment with HBO Max. To say that if you were to run a day riding shotgun with us in the operations, we are very conscious of mining out the expenses that we know we need to perform and the upgrades that we need to make in these tool sets in order to be more effective in the marketplace, to be more agile and faster and quicker, to be more successful in the marketplace, and how that translates into ultimately return to our share owners in the form of EBITDA and net income. That circle is what we do day in and day out, and we are just in the early innings of this and are bullish on what we're going to be able to accomplish as we continue the execution of that program. To wrap this up, Tim, it's a very good question, and I think it really is the summary of what we have in front of us and what we're working on as a management team. I'd like to just kind of re-emphasize that thread that you heard through all of this. My point of view is this: we have repositioned the business, and the management team has done an exceptional job over the last several quarters of gaining momentum in the key market focus areas that I've been talking about. What I'm looking for and what journey we're on right now is a simpler, more focused AT&T that can put top products out in these three areas that I've addressed and that we've been discussing here today. Around that, while it's easy to say, there's a lot of work going on to rework the engine room to ensure that that smaller, more focused business is, in fact, a more efficient business because it does have that focus as we move forward. I think this team is in the early innings of this transition, demonstrated and started to put numbers up each quarter, that you're seeing where that progress is. That progress ultimately should not only result in growth in the customer base, but ultimately improvements in our cash momentum. When I step back and I see the growth that's going on in the markets, when I know what's happening in the cost infrastructure of this business on a quarter-over-quarter basis, that we're starting to see some of the improvements that Jeff just alluded to. We're starting to see the programs that we've put in place over a two and three-year period get their momentum. When I think about the fact that our operating effectiveness is resulting in more satisfied customers or customers that are engaging more frequently with our products and more hours a day, improving effectiveness and efficiency, growing the customer base and customers that are more satisfied. I look at this and feel like we're on the path to the right kind of sustainability and growth that I'm satisfied with and I believe investors will ultimately recognize. The best part about it is we're in the early innings. The management team's done some really good work over the last couple of quarters, but we know there's some places we can still go and be a lot better than where we are today, and we're focused on doing that. We're committed to doing that, and I know that every 90 days you'll be checking in on our progress and status around that. I'd like to thank the management team for spending the time with everybody today. Thank you all for your attention and listening, and for those who helped put this all together today, my heartfelt appreciation on that. We'll see you soon. Thanks.