AT&T tempered some expectations for 5G adoption this year due to the COVID-19 crisis. 

“The factors have all changed and yes, the consumer may consider putting off the purchase of many consumer devices — appliances, cars, phones, other things — in an effort to retain their resources,” CFO John Stephens said today at a digital investor conference. 

This year was already shaping up to be a momentous one for AT&T prior to the global pandemic, and the operator is pushing forward on those plans despite the scourge of the coronavirus. The company plans to reach nationwide availability on its 5G network this summer and release its new streaming service HBO Max later this month.

Those efforts and more will soon be led by current president and COO John Stankey who was recently tapped to replace longtime CEO and Chairman Randall Stephenson on July 1. “On the strategic viewpoint I don’t think there will be much change,” Stephens said today about the executive change.

“The overall strategic view of the company is going to be very consistent. We’ve all been a part of that process for years,” he said. 

AT&T is “still cautious about the visibility and limited in the visibility going forward” as it relates the COVID-19 crisis, but it remains positive about the momentum of its businesses and opportunities ahead, Stephens explained. 

The outlook hasn’t changed decisively since the company reported its first quarter of 2020 earnings, but Stephens noted that most businesses, corporate headquarters, restaurants, and other retailers are being careful and slow to reopen. 

With store closures reducing activity, AT&T is increasing investments into its digital sales and customer support channels, according to Stephens. “Going forward we’ll have to see as these stores open up how much traffic comes back and what that means for net adds,” he said. 

And while 5G sales might be impacted this year, Stephens said it won’t affect AT&T’s profitability. “This could, in some cases, accelerate the demand for cost efficiencies that 5G will provide,” he said, highlighting the opportunities that businesses may seek amid economic uncertainty. 

“Certainly some opportunities will go away because of restrictions people have on spending,” but, he added, “no one was suggesting or speculating it would be a big service revenue this year. I think that will come over time.”

Stephens also pushed back against claims that T-Mobile US now enjoys a network advantage based on the mid-band spectrum it acquired when it combined with Sprint. “We’ve got a strong, active, in use spectrum position today,” he told analysts. 

“Our position on low- and mid-band spectrum, getting 150 megahertz out into service, this dramatic increase over the last three years … has put us dramatically ahead of everyone with spectrum in the low- and medium-band that’s in service and usable by our customers today. You can have spectrum but if it’s not in service it doesn’t provide help to customers,” Stephens said. 

AT&T also has ample millimeter-wave (mmWave) spectrum ready to deploy, he said. “We have a significant block of that, have what we need to build out the millimeter wave and have that going forward.”