Editor's note: An AT&T spokesperson told SDxCentral that AT&T Communications CEO Jeff McElfresh misspoke today and the company is still on track to hit nationwide 5G coverage "late this summer."

AT&T is, once again, pushing back its nationwide 5G coverage plans. “We won’t go national until we’ve got — we won’t go loud about that until we’ve got a nationwide coverage footprint, which we’re on track to do toward the end of the year,” AT&T Communications CEO Jeff McElfresh said today during an investor conference.

The carrier's nationwide availability plans have been a bit of a moving target. AT&T, as recently as last month, said it was on track to deploy nationwide 5G this summer. Back in April 2019, AT&T pushed its self-imposed deadline back from “early 2020” to the end of the year, but more recently pinned its nationwide goal to the summer. 

AT&T earlier this week announced it expanded the reach of its 5G network to cover more than 160 million people. The operator’s low-band 5G network is now available in 327 U.S. markets.

With the timing of AT&T’s nationwide 5G expansion delayed, T-Mobile US is poised to enjoy up to a full year of 5G market leadership based on coverage. T-Mobile US activated its nationwide 5G network running on 600 MHz spectrum in December 2019. 

McElfresh, who assumed the position on Oct. 1, 2019, following the retirement of former CEO John Donavan, didn’t provide any explanation for the latest delay but the COVID-19 crisis has clearly had an impact on the industry and economy at large. 

Indeed, AT&T CFO John Stephens last month tempered some expectations for 5G adoption this year due to the global pandemic and ensuing recession. 

“I think it’s probably too early for anybody to predict what the recovery is going to look like. It’s one of the reasons why we and many others pulled our guidance for 2020,” McElfresh said. “Having precision on the economy over the next two to three quarters is really a challenge, I must admit.”

Economic recovery is going to vary considerably by city and state with “different gradations of recoveries or shelter-in-place rules and regulations,” he said. “As we have been through this now, we are seeing new opportunity and new ways in which we can accelerate some of our transformation activities that we announced late last year that gets after some costs.” 

The coronavirus outbreak coupled with AT&T’s ongoing effort to virtualize its core network functions with SDN and other technologies is leading to dramatic job losses at the company. Prior to the COVID-19 crisis, AT&T said it planned to cut $1.5 billion in labor-related costs this year, and in April hinted at possible additional operational cuts that could include more job losses. 

“You should expect AT&T will phase in and phase out many of these plays market by market as commerce begins to recover, shoppers begin to make their way back out onto the streets, so it’s not a one-size-fits all, I think it’s going to be a very dynamic and local market aspect that we have to pay attention to,” McElfresh said. 

“I don’t expect that we will turn up and reopen all of the same physical bricks-and-mortar real estate that we operated prior to COVID. That’s an example of what I mean by getting out in front and accelerating our transformation of our distribution elements as part of our multi-year plan. We’re kind of getting a kickstart on that,” he explained. 

“We are going to come out of this with a head start, I would say, on some of these cost initiatives and the curation of our distribution elements,” McElfresh added. “Our cash flow generation is strong, the resiliency of our wireless and our broadband products remain healthy, and that’s why you’ve heard us recommit. We are committed to investing against our capital program here in 2020 with the rollout of 5G, continuing the investments in our network, and then being ready as the balance of the year unfolds.”

Meanwhile, McElfresh said he doesn’t expect the rigor of competitiveness in the U.S. wireless market to wane as 5G adoption gains momentum, but he does expect differentiation to occur. 

“I do not expect there to be any softening of the competitiveness in the wireless industry. I do believe that there will be a shift in what consumers over the next two to three to four years actually value most when they choose their wireless service provider,” he said. 

“I think we’re going to see competition shift from the classic models into what other services do you offer me to maintain” relationships with customers, McElfresh said. “That’s where you’re going to see competition heat up, as each of the wireless players have marked off how they want to compete in this industry. We’re not really following one another, we’re each competing with a slightly different angle.”