威訊通訊 (VZ) 2020 Q1 法說會逐字稿

Good morning, and welcome to the Verizon First Quarter 2020 Earnings Conference Call. (Operator Instructions) Today's conference is being recorded. (Operator Instructions)

早上好，歡迎參加 Verizon 2020 年第一季財報電話會議。（操作員指示）今天的會議正在錄音。（操作員指示）

It is now my pleasure to turn the call over to your host, Mr. Brady Connor, Senior Vice President, Investor Relations.

現在我很高興將電話轉給主持人、投資人關係資深副總裁布雷迪康納先生。

Thanks, Brad. Good morning, and welcome to our first quarter 2020 earnings conference call. This is Brady Connor, and I'm here with our Chairman and Chief Executive Officer, Hans Vestberg; and Matt Ellis, our Chief Financial Officer.

謝謝，布拉德。早安，歡迎參加我們 2020 年第一季財報電話會議。我是布雷迪·康納 (Brady Connor)，和我們一起在場的還有我們的董事長兼首席執行官漢斯·衛翰思 (Hans Vestberg) 以及我們的首席財務官馬特·埃利斯 (Matt Ellis)。

As a reminder, our earnings release, financial and operating information and the presentation slides are available on our Investor Relations website. A replay and transcript of this call will also be made available on our website.

提醒一下，我們的收益報告、財務和營運資訊以及簡報幻燈片可以在我們的投資者關係網站上找到。本次通話的重播和記錄也將在我們的網站上提供。

Before we get started, I'd like to draw your attention to our safe harbor statement on Slide 2. Information in this presentation contains statements about expected future events and financial results that are forward-looking and subject to risks and uncertainties. Discussion of factors that may affect future results is contained in Verizon's filings with the SEC, which are available on our website.

在我們開始之前，我想提請您注意幻燈片 2 上的安全港聲明。本簡報中的資訊包含有關預期未來事件和財務結果的陳述，這些陳述具有前瞻性並受風險和不確定性的影響。有關可能影響未來結果的因素的討論包含在 Verizon 向美國證券交易委員會提交的文件中，這些文件可在我們的網站上查閱。

This presentation contains certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in the financial materials posted on our website. The quarterly growth rates disclosed in our presentation slides and during our formal remarks are on a year-over-year basis, unless otherwise noted as sequential.

本簡報包含某些非公認會計準則財務指標。這些非公認會計準則指標與最直接可比較的公認會計準則指標的對帳包含在我們網站上發布的財務資料中。我們在簡報投影片和正式發言中揭露的季度成長率都是按年比計算的，除非另有說明為連續的。

Now let's take a look at consolidated earnings for the first quarter. In the first quarter, we reported earnings of $1 per share on a GAAP basis. Reported first quarter earnings include a pretax loss from special items of approximately $1.4 billion, including a loss on spectrum licenses related to Auction 103 of $1.2 billion and a net charge of $182 million related to a mark-to-market adjustment for our pension liability. Excluding the effects of these special items, adjusted earnings per share was $1.26 in the first quarter, up 5% compared to $1.20 a year ago.

現在讓我們來看看第一季的綜合收益。第一季度，我們根據 GAAP 報告每股收益為 1 美元。報告的第一季收益包括約 14 億美元的特殊項目稅前損失，其中包括與拍賣 103 相關的 12 億美元頻譜許可損失，以及與我們的退休金負債按市價調整相關的 1.82 億美元淨費用。不包括這些特殊項目的影響，第一季調整後每股收益為 1.26 美元，較去年同期的 1.20 美元成長 5%。

Let's now move to Slide 4 and take a closer look at our first quarter earnings profile. We expect 2020 to be the final year that the adoption of accounting standard ASC 606 for revenue recognition will have a material year-over-year impact on our income statement. As we illustrated in previous quarters, we realized a lesser benefit from the adoption of ASC 606 during the first quarter compared to the prior year, primarily due to the deferral of commission expense. The reduction of the benefit realized creates a year-over-year headwind to both reported and adjusted earnings per share, which will continue throughout 2020. The impact was $0.03 for the quarter.

現在讓我們轉到投影片 4，仔細看看我們的第一季財報狀況。我們預計 2020 年將是採用會計準則 ASC 606 進行收入確認的最後一年，這將對我們的損益表產生重大的同比影響。正如我們在前幾個季度所說明的，與去年同期相比，我們在第一季採用 ASC 606 所獲得的收益較少，這主要是由於佣金費用的遞延。實現收益的減少對報告每股收益和調整後每股收益造成了同比阻力，這種情況將持續到 2020 年。本季的影響為 0.03 美元。

For full year 2020, we expect headwinds from the deferral of commission expense to be approximately $0.09. We estimate there was a negative $0.04 net impact included in the reported and adjusted EPS from COVID during the quarter. Matt will go through this in more detail later. Adjusted EPS growth of 5% over the prior year, illustrated on the earnings waterfall slide, reflects the strong underlying performance of the business, partially offset by the impacts of the deferral of commission expense.

對於 2020 年全年，我們預計佣金費用遞延帶來的阻力約為 0.09 美元。我們估計，本季報告和調整後的每股盈餘中 COVID 的淨影響為負 0.04 美元。馬特稍後會更詳細地介紹這一點。收益瀑布圖顯示，調整後的每股盈餘較上年增長 5%，反映了業務強勁的基本表現，但被佣金費用遞延的影響部分抵消。

With that, I'll now turn the call over to Hans to walk you through a recap of the actions we have taken during this unprecedented time.

現在，我將把電話交給漢斯，讓他向大家回顧我們在這個前所未有的時期所採取的行動。

Thank you, Brady, and most welcome to this earnings call. This is an earnings call that is very different from all previous ones that I have done. I've been in crisis -- in the telecom crisis in 2000, bank crisis in 2008 and '09. This is something totally different. It's a health crisis with a pandemic that impacts each and every one of us wherever you are in this world.

謝謝你，布雷迪，歡迎你參加這次財報電話會議。這次財報電話會議與我之前召開過的所有電話會議都有很大不同。我經歷過危機——2000 年的電信危機、2008 年和 2009 年的銀行危機。這是完全不同的事情。這是一場大流行的健康危機，影響著我們每一個人，無論你身在何處。

I'm proud of the team of Verizon, how we have been stacking up in this crisis and how we work together. We decided very early on to split our team, in our crisis management team, and the leadership team continue to drive our business forward. In the middle of February, we made that split in order to see that we're actually attending all the things that happening in a company the size of Verizon.

我為 Verizon 團隊感到驕傲，我們克服了這場危機，並齊心協力。我們很早就決定將我們的團隊拆分成危機管理團隊和領導團隊，以繼續推動我們的業務向前發展。在二月中旬，我們進行了拆分，以確保我們確實參與了像 Verizon 這樣規模的公司發生的所有事情。

Our COVID-19 response has been based on how we manage our 4 stakeholders. We have taken decisive action, but they're all balanced and thinking about the long-term and positive impact for all our stakeholders. Let me quickly go over what we have done in different areas of stakeholders.

我們對 COVID-19 的應對取決於我們如何管理 4 個利害關係人。我們已經採取了果斷行動，但這些行動都是平衡的，並考慮對所有利害關係人的長期正面影響。讓我快速回顧一下我們在不同利害關係人領域所做的工作。

On the employee side, the majority of our all employees are working from home. We moved quickly to a work-from-home environment. Today, we have high productivity in that setup. We have also retrained some 20,000 of our own employees to work with new tasks and work from home. And some additional 1,000 of third parties that is part of our delivery.

在員工方面，我們大多數員工都在家工作。我們很快就轉入了在家工作的環境。今天，我們在該設定下擁有很高的生產效率。我們也對大約 20,000 名員工進行了再培訓，讓他們承擔新的任務並在家工作。另外還有大約 1,000 個第三方作為我們交付的一部分。

But also, we need to acknowledge we have a lot of our employees in frontline, serving customers, keeping up the networks, at the same time as keeping some of our stores open. We have roughly 30% of our stores open, of course, with limited opening times and also only by appointment. But they are playing a vital role to keep up the most important infrastructure in this country right now, besides hospitals and first responders, and I'm happy to report the team is doing a great job.

但同時，我們也需要承認，我們有很多員工在一線工作，服務客戶，維護網絡，同時保持一些商店的開放。當然，我們大約有 30% 的商店開放，但開放時間有限，而且只能預約。但除了醫院和急救人員之外，他們在維護這個國家目前最重要的基礎設施方面發揮著至關重要的作用，我很高興地報告，這個團隊做得非常出色。

And talking about our customers, we have been attending all our customers with new demands during this crisis. At the same time, we are also part of the pledge of Keep Americans Connected, which means that we are waiving late fees or overages for small and medium businesses and the residential customers that have been impacted by the coronavirus.

談到我們的客戶，在這場危機期間，我們一直在滿足所有有新需求的客戶。同時，我們也履行了「保持美國人聯繫」的承諾，這意味著我們將免除受冠狀病毒影響的中小企業和住宅客戶的滯納金或超額費用。

Our network has performed well. I will come back to that a little bit later.

我們的網路表現良好。我稍後會再談這個問題。

When it comes to our work in the society, helping communities, that's also extremely important right now. Large corporations need to take the responsibility. We have done some of it, like the PayItForward, which is our concert twice, sometimes 3 times a week, which is gathering concerts or celebrities, bringing in people actually adding to and helping small and medium businesses. We call it PayItForward LIVE. But also work with WHO and other organization that needs help and ultimately supporting the most vulnerable in our society.

就我們在社會中的工作、幫助社區而言，這現在也極為重要。大公司需要承擔責任。我們已經做了一些這樣的活動，例如PayItForward，這是我們每週舉辦兩次、有時三次的音樂會，聚集音樂會或名人，讓人們真正為中小企業提供幫助。我們稱之為 PayItForward LIVE。同時也與世界衛生組織和其他需要幫助的組織合作，最終為我們社會中最脆弱的群體提供支持。

Finally, on the education side, that we always have been focused on, we're not only supporting the schools that had already had their support for, but we're also adding together New York Times, offering all the content from New York Times to all the high school students across the country. So we're proud what we're doing in that area.

最後，在我們一直關注的教育方面，我們不僅支持已經獲得支持的學校，而且還加入了《紐約時報》，向全國所有高中生提供《紐約時報》的所有內容。因此，我們為在該領域所做的事情感到自豪。

And finally, on the financials, we have also worked quite a lot with what we're doing in our cost side. We're taking already cost measurements in the first quarter, everything from third-party spending, seeing, of course, that we're traveling less but we're doing this prudently as usual. On top of that, we increased the CapEx guidance in the quarter because we felt that it was a good time for us to continue to see that we have robust networks as we went into a moment in time we don't really know how the network would be used. At the same time, of course, sending a message that we think is a good return on investment on that incremental CapEx. At the same time, I think Matt and his team has done a great job of seeing that our balance sheet is in the best shape, added liquidity in the middle of the quarter through very cost-effective bond costs that we had.

最後，在財務方面，我們也在成本方面做了大量工作。我們已經在第一季進行了成本測量，包括第三方支出在內的所有方面，當然，我們也看到我們的旅行減少了，但我們還是像往常一樣謹慎地進行這些工作。除此之外，我們在本季度提高了資本支出指導，因為我們認為這是一個很好的時機，讓我們繼續看到我們擁有強大的網絡，因為我們進入了一個我們真的不知道網絡將如何使用的時刻。當然，同時，我們也傳遞出一個訊息：我們認為增量資本支出的投資報酬率很高。同時，我認為馬特和他的團隊做得非常出色，他們確保我們的資產負債表處於最佳狀態，並透過我們擁有的非常具有成本效益的債券成本在本季度中期增加了流動性。

And we are also working with scenario planning. Nobody really knows how this is going to end, but we have several scenarios and actions that we're working with as a leadership team.

我們也正在進行情境規劃。沒有人真正知道這一切將如何結束，但作為領導團隊，我們已經制定了幾種方案並採取了多種行動。

Let me talk about the network a little bit, and we have been reporting every week the development of our network since the outbreak of the pandemic. And you are seeing some staggering numbers, like over 200% up on gaming, 10x up on collaboration tools, 40% up on video. 800 million calls a day, which is twice the amount of what we have on Mother's Day, which is the biggest day a year. All that we have been managing very well with the network. We have built a robust network, and we can deliver high quality.

我先簡單講一下網絡，自從疫情爆發以來，我們每週都在報告我們網絡的發展。您會看到一些驚人的數字，例如遊戲成長超過 200%，協作工具成長 10 倍，影片成長 40%。每天有 8 億通電話，是母親節的兩倍，而母親節是一年中最重要的一天。我們透過網路把所有事情管理得很好。我們已經建立了強大的網絡，可以提供高品質的服務。

If we then look now week-to-week, you can see on the slide that we have much less of changes. We feel that we have settled in on the type of usage of the network and where it's used. So it's very small variation.

如果我們現在逐週查看，您會在幻燈片上看到我們的變化少了很多。我們覺得我們已經確定了網路的使用類型和使用地點。所以變化非常小。

I just want to point out the mobile handoffs, which is basically how our customers are moving between different cells, down 35% since the outbreak of the COVID-19. And in certain places like New York City, it's over 50% reductions on mobile handoff.

我只想指出，自從 COVID-19 爆發以來，行動切換（基本上就是我們的客戶在不同小區之間移動的方式）下降了 35%。在紐約市等某些地方，行動切換減少了 50% 以上。

So how our network hold up then when it comes to all those changes? This is how we showed during the Investor Day, the -- how our capacity versus the busy hours in the wireless network. As you can see, we continue to keep the same headroom in the network when we come into the COVID-19. And the main reason is that, first of all, we were prepared. We have added capacity. But also the network is using different time frames and with different applications. And this exclude any use of the AWS-3 temporary spectrum that FCC so greatly lent to us in the beginning of this crisis as an insurance if usage would go somewhere we wouldn't know. But however, I can report that our technicians and our operations team has done a fantastic job, and the network is keeping up very well with the changes and the enormous usage of the network.

那麼，當所有這些變化發生時，我們的網路將如何保持穩定？這就是我們在投資者日期間所展示的——我們的容量與無線網路繁忙時段的對比情況。正如您所看到的，當我們進入 COVID-19 時，我們繼續在網路中保持相同的淨空。主要原因是，首先，我們已經準備好了。我們增加了容量。但網路也使用不同的時間框架和不同的應用程式。而且這不包括使用 AWS-3 臨時頻譜，FCC 在此次危機開始時向我們大量提供了該頻譜，以防其用途流向我們不知道的地方。但是，我可以報告的是，我們的技術人員和營運團隊做得非常出色，網路能夠很好地跟上變化和網路的巨大使用量。

Let me just finish up before I hand over to Matt and talking about the progress towards our 2020 commitment. They are intact. We work to see that we can both handle this crisis, which is unprecedented, but we also continue to execute on our strategy. When it comes to strengthen our core business and grow our core business, of course, we, right now, have more digital sales than we had before, which is, of course, very encouraging. But we also strengthened our core business by adding a very good and nice piece of millimeter wave spectrum that gives us very good holdings for fortified strategy.

在將時間交給馬特並討論我們 2020 年承諾的進展之前，請允許我先說完這些。它們完好無損。我們努力確保我們能夠應對這場前所未有的危機，同時我們也將繼續執行我們的策略。當談到加強我們的核心業務和發展我們的核心業務時，當然，我們現在的數位銷售額比以前更多，這當然是非常令人鼓舞的。但我們也透過增加非常好的毫米波頻譜來加強我們的核心業務，這為我們的強化策略提供了非常好的支撐。

When it comes to leverage our assets, and we're growing in the future, our 5G plans and our fiber plans, the build out of that are on plan. We were also a little bit ahead of plan when we ended the first quarter. And can I report still today, we are on plan with the 5G and fiber. Of course, our challenge is out there when it comes to COVID-19 and so on. But our team are finding new ways and innovative ways to actually do the deployment. There are ways of dealing with approvals from the municipalities set by new ways. And we have great collaborations from many of the municipalities to do it. There might be problems going forward, but I am also confident that my team are very innovative in the field and see that we continue to drive hard on this.

當談到利用我們的資產時，我們在未來將不斷發展，我們的 5G 計劃和光纖計劃的建設都在按計劃進行。當我們結束第一季時，我們也比計劃提前了一點。我今天還可以報告一下，我們正在按計劃推進 5G 和光纖建設。當然，我們面臨的挑戰是新冠肺炎疫情等。但我們的團隊正在尋找新方法和創新方式來實際部署。有新辦法規定了處理市政當局審批的方法。我們與許多市政當局進行了良好的合作。未來可能會遇到一些問題，但我也相信我的團隊在該領域非常具有創新精神，並且相信我們會繼續努力。

We also added an acquisition just recently, the BlueJeans acquisition, adding to what Matt and I said in the fourth quarter, talking about the investment we want to do in our Verizon Business Group, where we see great opportunity and, of course, then accentuated in this COVID-19 where we now add the BlueJeans capabilities, both to our existing distribution, but also for the future of 5G, where we think there are video capabilities that's going to be extremely important. On the financial discipline, we continue to drive that. Matt is leading that work, both preplanning and what we're doing.

我們最近還增加了一項收購，即 BlueJeans 收購，這補充了馬特和我在第四季度所說的內容，討論了我們希望在 Verizon 商業集團進行的投資，我們看到了巨大的機遇，當然，在這次 COVID-19 中更加突出，我們現在將 BlueJeans 的功能添加到我們現有的分銷中，也為 5G 的未來添加了功能。在財務紀律方面，我們將繼續推動這一點。馬特正在領導這項工作，包括預先規劃和我們正在做的事情。

And finally, about our purpose-driven company, which is so important this time to see that you have all your employees with you. We are doing a lot of impact in the society. We have virtual volunteering right now, where a lot of our employees can actually contribute to the society in these tough times. And finally, we also actually communicate with our employees basically every day on a live webcast in order to see that everyone knows what we're doing and where we're going in times of uncertainty.

最後，關於我們目標驅動的公司，這一次，確保所有員工都支持我們，這一點非常重要。我們對社會產生了很大的影響。我們現在有虛擬志願服務，我們的許多員工實際上可以在困難時期為社會做出貢獻。最後，我們實際上還每天透過網路直播與員工溝通，以確保每個人都知道我們在做什麼以及在不確定的時期我們要去哪裡。

Quickly, on the first quarter. Matt will cover it much better. I'm proud of the team, delivering strong growth in wireless service revenue but also the 5% growth on our adjusted earnings, which includes impact of COVID-19 and then a strong cash flow, up 26% year-over-year. The segments all had their challenges, but also their strength in this quarter. Mainly, the challenges come from COVID-19.

很快，就到了第一季。馬特會更好地報道這一點。我為團隊感到自豪，不僅實現了無線服務收入的強勁增長，而且調整後收益也增長了 5%，其中包括 COVID-19 的影響以及強勁的現金流，同比增長 26%。本季度，各部門都面臨各自的挑戰，但也有各自的優勢。主要的挑戰來自於新冠疫情。

Finally, on the guidance, we decided to continue to do certain guidance, even there are certain unclarities in the market and of the future. We decided that revenue, we will not guide on the revenue because the hardware is so hard to predict at this moment. But we actually are guiding on EPS and continue with all other items as well. And Matt will go through that in detail, but always with the understanding that we don't have all the knowledge what will going to happen. We may need to make assumptions about it.

最後，關於指導，我們決定繼續做某些指導，即使市場和未來有某些不明確之處。我們決定不提供收入指南，因為目前硬體很難預測。但我們實際上正在指導 EPS，並繼續指導所有其他項目。馬特將詳細地講解這一點，但他始終明白，我們並不完全了解接下來會發生什麼。我們可能需要對此做出假設。

By that, I hand it over to Matt.

這樣，我就把它交給馬特了。

Thank you, Hans, and good morning, everyone. As Hans discussed, we are in an unprecedented time. As a result of the impact of the COVID-19 crisis and the various measures taken to address the emergency, we experienced starkly different trends during the first 2.5 months of the first quarter than we did during the last few weeks. We understand that most of you are more interested in what we are currently seeing in the business, so I'll go through the quarterly results at a high level and spend more time addressing the most recent trends and how they impact our expectations for the second quarter and the full year.

謝謝你，漢斯，大家早安。正如漢斯所討論的，我們正處於一個前所未有的時代。由於新冠疫情危機的影響以及為應對緊急情況而採取的各種措施，我們在第一季的前兩個半月經歷了與過去幾週截然不同的趨勢。我們明白，大多數人對我們目前在業務中看到的更感興趣，因此我將從高層次回顧季度業績，並花更多時間討論最新趨勢以及它們如何影響我們對第二季度和全年的預期。

We will begin with a review of our consolidated operating and financial results. In the first quarter, consolidated operating revenue was $31.6 billion, down 1.6%. Growth in wireless service revenue in both the Consumer and Business segments was offset by sharp reductions in equipment revenue. Consolidated wireless equipment revenue was down over 16% in the first quarter, driven by the Consumer segment, primarily as a result of the limited in-store customer engagement in March due to COVID. Adjusted EBITDA was $11.9 billion, down slightly from last year, including the impact from COVID. Low wireless volumes in Consumer Group drove benefits to margins through decreased promotional spend, lower equipment revenue and improved churn. These benefits were more than offset by higher bad debt expense, lower advertising revenues from Verizon Media Group in March and customer actions that resulted in a decrease in wireless fees and nonrecurring usage charges. Our incremental bad debt reserve of $228 million was the largest component of these items.

我們將首先審查我們的合併經營和財務表現。第一季度，合併營業收入為316億美元，下降1.6%。消費者和商業部門無線服務收入的成長被設備收入的大幅減少所抵銷。第一季綜合無線設備收入下降超過 16%，主要原因是消費者部門的收入下降，這主要是由於 3 月受疫情影響，店內顧客互動有限。調整後的 EBITDA 為 119 億美元，較去年略有下降，包括 COVID 的影響。消費者集團的無線業務量較低，透過減少促銷支出、降低設備收入和改善客戶流失率，為利潤率帶來了好處。這些收益被更高的壞帳費用、3 月 Verizon Media Group 的廣告收入下降以及導致無線費用和非經常性使用費用下降的客戶行為所抵消。我們的增量壞帳準備金為 2.28 億美元，是這些項目中最大的組成部分。

The headwinds from the deferral of commission expense, that Brady highlighted earlier, reduced EBITDA by $172 million, which is an impact of approximately 55 basis points to EBITDA margin in the quarter. We have continued to focus on our Business Excellence program, with the goal to realize $10 billion of cumulative cash savings by the end of 2021 and have saved $6.3 billion through the end of the first quarter. The activities of this program over the past 2 years have put us in a position to be more agile and adaptive in uncertain times like these.

布雷迪先前強調的佣金費用遞延帶來的不利因素導致 EBITDA 減少了 1.72 億美元，對本季 EBITDA 利潤率產生了約 55 個基點的影響。我們繼續專注於我們的卓越業務計劃，目標是到 2021 年底實現累計 100 億美元的現金節省，截至第一季末已節省 63 億美元。該計劃在過去兩年開展的活動使我們在當前這種不確定的時期變得更加靈活和適應性更強。

Adjusted EPS for the first quarter was $1.26, up 5.0% from $1.20 a year ago. This included an estimated net impact from COVID of approximately $0.04, primarily driven by an increase of our bad debt reserve.

第一季調整後每股收益為 1.26 美元，較去年同期的 1.20 美元成長 5.0%。其中包括 COVID 造成的約 0.04 美元的淨影響，主要由於我們的壞帳準備金增加。

Let's now turn to our segment results, starting with Consumer Group on Slide 10. Our Consumer team continues to deliver best-in-class services to our customers while keeping them connected in their personal and work communities. We are extremely proud of the team's performance, particularly our frontline workers' efforts to meet our customers' needs during this very difficult period. Our Consumer segment started the year with typical low seasonal volumes during the first quarter. In March, customer transaction activity slowed significantly due to shelter-in-place policies, travel restrictions and other measures taken to promote social distancing. Later in the call, I will go into a deeper discussion on the exit rate trends as we serve our customers in this new environment.

現在讓我們來看看各部門的業績，從幻燈片 10 上的消費者部門開始。我們的消費者團隊繼續為客戶提供一流的服務，同時讓他們與個人和工作社群保持聯繫。我們為團隊的表現感到非常自豪，特別是我們的第一線員工在這個非常困難的時期為滿足客戶需求所做的努力。我們的消費品部門今年第一季的銷售量處於典型的季節性低點。3月份，由於居家隔離政策、旅遊限制和其他保持社交距離的措施，客戶交易活動大幅放緩。在稍後的電話會議中，我將更深入地討論我們在這種新環境下為客戶提供服務時的退出率趨勢。

First quarter phone gross adds were down nearly 13% year-over-year, and postpaid phone net losses were just over 300,000 for the quarter. Phone churn performance was solid throughout the quarter at 0.77%, which was down 4 basis points from a year ago. Consistent with first quarter seasonal volume activity and the impact of COVID, our retail postpaid upgrade rate remained low during the quarter and is one of the key contributing factors to the decline in wireless equipment revenue. We expect this trend to continue for as long as social distancing policies and other safety measures to protect our employees and customers continue to limit store traffic.

第一季電話新增用戶數年減近 13%，本季後付費電話淨虧損略高於 30 萬。本季電話流失率表現穩健，為 0.77%，比去年同期下降了 4 個基點。與第一季的季節性交易量活動和 COVID 的影響一致，我們的零售後付費升級率在本季仍然很低，這是無線設備收入下降的關鍵因素之一。我們預計，只要社交距離政策和其他保護員工和顧客的安全措施繼續限製商店客流量，這種趨勢就會持續下去。

Fios Internet net additions of 59,000 were up sequentially and year-over-year as work from home, in-home schooling and other related measures increased the utility and demand for our high-quality broadband offerings. Fios video net losses accelerated for the quarter, and we expect cord cutting trends to continue. In order to ensure the safety of our customers and employees, while providing critical network services, we have modified our approach over the past few weeks and are not currently entering customer locations, except for critical functions.

由於在家工作、在家上學和其他相關措施提高了我們高品質寬頻產品的實用性和需求，Fios 網路淨增用戶數為 59,000，環比和同比增長。本季 Fios 視訊淨虧損加速，我們預期剪線趨勢將持續下去。為了確保客戶和員工的安全，同時提供關鍵的網路服務，我們在過去幾週內修改了方法，目前除了關鍵功能外，不會進入客戶所在地。

Now let's move to Slide 11 to discuss the Consumer financial performance. Our Consumer segment entered 2020 with strong momentum as we added a significant number of wireless connections towards the end of 2019, which favorably impacted the first quarter. For our Fios consumer products, we launched new Mix & Match pricing early in the quarter, providing price transparency and choice in our broadband and video offerings. We also introduced Yahoo Mobile to expand our wireless offerings across our digital media customer base. We continue to generate strong service revenue and other revenue growth. But this was more than offset by a significant decrease in wireless equipment revenue due to low volume activity.

現在讓我們轉到投影片 11 來討論消費者的財務表現。我們的消費者部門在 2020 年進入強勁發展勢頭，因為我們在 2019 年底增加了大量無線連接，這對第一季產生了積極影響。對於我們的 Fios 消費產品，我們在本季初推出了新的 Mix & Match 定價，為我們的寬頻和視訊產品提供價格透明度和選擇。我們還推出了雅虎移動，以擴大我們數位媒體客戶群的無線服務。我們繼續實現強勁的服務收入和其他收入成長。但由於交易量低，無線設備收入大幅下降，抵銷了這一成長。

Consumer segment total revenue was down 1.7% year-over-year. The growth in unlimited plans, increase in connections per account and high demand for our broadband services in the quarter drove strong profitability for the segment, offset by an increase in bad debt expense as a result of COVID impacts. Consumer EBITDA margin of 46.4% was up 60 basis points over the prior year and included approximately 80 basis points of headwind from the deferral of commission expense. Lower equipment revenue had a limited impact on our overall EBITDA performance.

消費部門總收入較去年同期下降1.7%。本季度無限流量套餐的成長、每個帳戶連接數的增加以及寬頻服務的高需求推動了該部門的強勁盈利能力，但因 COVID 影響導致的壞帳費用增加抵消了這一影響。消費者 EBITDA 利潤率為 46.4%，比上年上升了 60 個基點，其中包括佣金費用遞延帶來的約 80 個基點的不利影響。較低的設備收入對我們的整體 EBITDA 績效影響有限。

Now let's move to Slide 12 to review the Business Group results. During a time when connectivity is providing critical support to those impacted by this crisis, our Business team is at the forefront to serve our enterprise, small and medium business, public sector and wholesale customers. We remain an outstanding partner for first responders, health care providers and other frontline workers. And as Hans mentioned, we are extremely proud of our team's work to deliver essential services to our customers so they can serve others. Business trends were strong throughout the quarter, and we saw heightened demand for our products and services in March. Businesses need our services now more than ever, as we saw strong demand for mobility, Jetpacks, VPN services and high-speed circuit capacity in the first quarter.

現在讓我們轉到投影片 12 來回顧業務集團的業績。在連結性為受此危機影響的人們提供關鍵支援的時候，我們的業務團隊站在最前線，為我們的企業、中小型企業、公共部門和批發客戶提供服務。我們仍然是急救人員、醫療保健提供者和其他第一線工作人員的傑出合作夥伴。正如漢斯所說，我們為團隊為客戶提供基本服務以便他們能夠為他人服務的工作感到非常自豪。整個季度的業務趨勢強勁，三月我們的產品和服務的需求增加。企業現在比以往任何時候都更需要我們的服務，因為我們看到第一季對行動性、Jetpacks、VPN 服務和高速電路容量的強勁需求。

As you look at the detail on the slide for wireless products, you can see phone gross adds were up 25% from the prior year, driven by strength in global enterprise and public sector, with offsetting pressure in small and medium business. This contributed to postpaid phone net adds of 239,000 and total postpaid net adds of 475,000. Business segment phone churn of 1.02% in the quarter was flat year-over-year, driven by strength in public sector, with offsetting pressure in small and medium business.

當您查看投影片上無線產品的詳細資訊時，您會發現電話總增加量比上一年增長了 25%，這得益於全球企業和公共部門的強勁增長，同時也抵消了中小企業的壓力。這使得後付費電話淨增用戶數達到 239,000 部，總後付費電話淨增用戶數達到 475,000 部。本季商業部門電話流失率為 1.02%，與去年同期持平，這得益於公共部門的強勁表現，同時也抵消了中小企業的壓力。

Let's now move to Slide 13 to review the business financial performance. Operating revenues for the Business segment in the first quarter were down approximately 0.5% from the prior year. Wireless revenues within enterprise, SMB and public sector were up year-over-year, driven by strong wireless service revenue growth of 6.9%. This was offset by legacy wireline and wholesale revenue declines. We are encouraged by the business EBITDA performance in the first quarter, which was driven by tight controls around spending and strong wireless performance as we generated solid profitability, even with higher-than-usual volumes and the ongoing transformation investments in the segment for future growth.

現在讓我們轉到投影片 13 來回顧業務財務表現。第一季業務部門的營業收入比上年下降約0.5%。受無線服務收入 6.9% 強勁成長的推動，企業、中小企業和公共部門的無線收入較去年同期成長。這被傳統有線和批發收入的下降所抵消。我們對第一季業務的 EBITDA 表現感到鼓舞，這得益於對支出的嚴格控制和強勁的無線表現，儘管銷量高於正常水平，並且為了未來增長而在該領域持續進行轉型投資，我們仍然創造了穩健的盈利能力。

Now let's move on to Slide 14 to discuss Verizon Media Group. During the first quarter, Verizon Media Group's performance was impacted by COVID, similar to others in the digital advertising and search business. Total revenue is $1.7 billion, down 4% compared to last year, driven almost entirely by COVID impacts. Prior to COVID, our year-over-year revenue trends were continuing the steady improvement seen in 2019. We are seeing increased levels of customer engagement across our platforms. But advertising rates and search revenue have declined in the current environment.

現在讓我們轉到幻燈片 14 來討論 Verizon Media Group。第一季度，威瑞森媒體集團的業績受到了 COVID 的影響，與數位廣告和搜尋業務中的其他公司類似。總收入為 17 億美元，比去年下降 4%，幾乎完全受到 COVID 的影響。在新冠疫情爆發之前，我們的年比收入趨勢延續了 2019 年的穩定改善。我們看到我們平台上的客戶參與度不斷提高。但在當前環境下，廣告費率和搜尋收入均有所下降。

Verizon Media launched a coronavirus hub on Yahoo! News and Yahoo! Finance and COVID-19's newsletter through Yahoo Mail, both of which are driving significant customer engagement as we aim to keep users informed on what is happening in their area and around the globe with trusted content.

Verizon Media 在雅虎上推出了冠狀病毒中心！新聞和雅虎！透過雅虎郵箱發布的財經和 COVID-19 新聞通訊，這兩項服務都在推動大量客戶參與，因為我們的目標是透過可靠的內容讓用戶了解他們所在地區和全球正在發生的事情。

Let's now move to Slide 15 for a quick look at the overall wireless performance. Slide 15 shows the key metrics and financial data of the combined wireless products and services from the Consumer and Business segment for the first quarter. Total wireless service revenue grew 1.9% over the prior year. Additional details are provided in the financial and operating information and our supplemental earnings release's schedules on our website.

現在讓我們轉到投影片 15 快速查看整體無線效能。投影片 15 展示了第一季消費者和商業部門合併無線產品和服務的關鍵指標和財務數據。無線服務總收入比上年增長1.9%。更多詳細資訊請參閱我們網站上的財務和營運資訊以及補充收益發佈時間表。

Now let's review our cash flow and balance sheet for the quarter on Slide 16. Cash flow from operating activities was $8.8 billion, an increase of $1.7 billion from the prior year. This year-over-year growth was partially driven by Voluntary Separation Program payments and the voluntary pension contributions in the first quarter of 2019 that did not repeat this year as well as working capital improvements from our operations this quarter. Capital spending for the first quarter totaled $5.3 billion, which is up approximately $1 billion year-over-year. We expect the timing of capital spending to be more front-end loaded than it was last year. Our capital expenditures continue to support capacity for unprecedented traffic growth across our networks while we continue to deploy more fiber and add additional cell sites to support our 5G rollout.

現在讓我們回顧一下投影片 16 上的本季現金流和資產負債表。經營活動現金流為88億美元，較上年增加17億美元。這一年成長部分得益於 2019 年第一季自願離職計畫付款和自願退休金繳款（今年沒有重複），以及本季營運帶來的營運資金改善。第一季的資本支出總計53億美元，比去年同期增加約10億美元。我們預計資本支出的時間將比去年更前期。我們的資本支出持續支援我們網路前所未有的流量成長容量，同時我們繼續部署更多的光纖並增加更多的基地台以支援我們的 5G 部署。

As we mentioned earlier in March, we increased our full year 2020 CapEx guidance to $17.5 billion to $18.5 billion in order to facilitate Verizon's network activity and help support the economy during this period of disruption. Free cash flow for the quarter was $3.6 billion, which was up 26.2% year-over-year and continues to fund our dividend. Our balance sheet continues to be strong, with very low unsecured bond maturities through the end of 2021. Our net unsecured debt-to-adjusted EBITDA ratio was 2.1x, up slightly from year-end.

正如我們在 3 月早些時候提到的那樣，我們將 2020 年全年資本支出預期提高到 175 億美元至 185 億美元，以促進 Verizon 的網路活動並幫助在此混亂時期支持經濟。本季自由現金流為 36 億美元，年增 26.2%，並繼續為我們的股息提供資金。我們的資產負債表持續保持強勁，到 2021 年底無擔保債券到期率非常低。我們的淨無擔保債務與調整後 EBITDA 比率為 2.1 倍，較年底略有上升。

Let's move on to Slide 17 to take a deeper look at the trends we have seen in the last half of March and into early April. During the month of March, as COVID safety measures were implemented with new federal and state recommendations for social distancing, our retail consumer and small business activity diminished significantly. By the middle of March, we saw a dramatic shift in customer behavior as stores closed and other business activity halted across the country. At the same time, we experienced increased demand from our public sector and some large enterprise customers to support frontline crisis responders, new work from home and home schooling arrangements and other demands for critical connectivity services.

讓我們繼續看第 17 張投影片，深入了解 3 月下半月和 4 月初的趨勢。三月份，隨著 COVID 安全措施的實施以及聯邦和州政府保持社交距離的新建議，我們的零售消費者和小型企業活動大幅減少。到三月中旬，隨著全國各地的商店關閉和其他商業活動停止，我們看到顧客行為發生了巨大變化。同時，公共部門和一些大型企業客戶對支援第一線危機應變人員、新的在家工作和在家上學安排以及其他關鍵連結服務的需求也在增加。

This slide provides selected metrics from March 15 through April 15 and offers a more in-depth view of the early impacts of the current COVID environment. At this point, it is unclear how long these trends will continue.

本投影片提供了 3 月 15 日至 4 月 15 日的部分指標，並更深入地介紹了當前 COVID 環境的早期影響。目前，尚不清楚這些趨勢將持續多久。

In our Consumer Group, we closed nearly 70% of our company-operated retail stores and reduced in-store services throughout the day for social distancing safety measures. As you can see on this slide, we experienced a significant drop in customer activity and device volumes during this period. Consumer wireless gross adds declined nearly 50% from the same period in the prior year, and upgrades declined over 40%. As expected, lower customer switching across the entire industry has led to a significant improvement in phone churn.

在我們的消費者集團，我們關閉了近 70% 的公司經營的零售店，並全天減少了店內服務，以採取社交距離安全措施。正如您在這張投影片上看到的，在此期間，我們的客戶活動和設備數量大幅下降。消費者無線總增加量與去年同期相比下降了近 50%，升級量下降了 40% 以上。正如預期的那樣，整個行業的客戶轉換率降低導致電話流失率顯著改善。

As part of the industry's effort to help customers, we signed the FCC's Keep Americans Connected Pledge in March and will waive any late fees and keep customers connected in the event of nonpayment due to the pandemic for the period of the pledge. We have added 15 gigabits of data to metered consumers and small business plans and also to hotspot usage for unlimited plans. This additional data, along with increased in-home WiFi usage, has resulted in lower data overage revenue in the quarter. In addition to these customer-focused actions and impacts, consumer behavior has changed dramatically over this short time period, such as reduced international roaming revenue.

作為業界幫助客戶努力的一部分，我們於 3 月簽署了美國聯邦通信委員會 (FCC) 的“保持美國人聯網承諾”，並將在承諾期間免除任何滯納金，並在因疫情導致未付款的情況下保持客戶的聯網。我們為計量消費者和小型企業計劃以及無限計劃的熱點使用增加了 15 千兆位元資料。這些額外的數據，加上家庭 WiFi 使用量的增加，導致本季數據超額收入下降。除了這些以客戶為中心的行動和影響之外，消費者行為在短時間內也發生了巨大變化，例如國際漫遊收入減少。

In order to keep our employees and customers safe through social distancing, we are generally not performing installations for consumer Fios when work inside the home would be required. Gross adds are currently limited to those that can be performed directly by the customer or with the technician working outside the home.

為了透過保持社交距離來確保員工和客戶的安全，當需要在家中進行工作時，我們通常不會為消費者 Fios 進行安裝。目前，總添加僅限於那些可由客戶直接執行或由技術人員在戶外執行的操作。

In our Business group, we have broken out the trends for our small and medium business customer group, showing the drop-off that we have seen in gross adds and upgrades as a major portion of small businesses have seen a steep reduction in activities and, in many cases, a full shutdown. In contrast to Consumer, we are not seeing the same improvement in churn at this time.

在我們的業務組中，我們細分了中小型企業客戶群的趨勢，顯示出我們看到的總增加量和升級量下降，因為很大一部分小型企業的活動急劇減少，在許多情況下甚至完全關閉。與消費者相比，我們目前尚未看到客戶流失率出現同樣的改善。

For public sector and some global enterprise customers, we have seen an increased demand for remote connectivity solutions as a greater number of people are working and schooling from home. Wireless gross adds for these customers were up 163% over the similar period in the prior year, mostly driven by demand for phones, Jetpacks and other connected devices. Our network superiority and long-standing relationship with enterprises, first responders and other workers in the front lines has given us the ability to support their connectivity needs across the country when they need Verizon most. In addition to the increase in gross adds activity, we have seen an improvement in retention for our enterprise and public sector customers with phone churn improving by 35 basis points during this period.

對於公共部門和一些全球企業客戶，隨著越來越多的人在家工作和上學，我們看到對遠端連接解決方案的需求增加。這些客戶的無線總增加量比去年同期成長了 163%，主要受手機、Jetpacks 和其他連網裝置的需求所推動。我們的網路優勢以及與企業、急救人員和其他第一線工作人員的長期合作關係使我們能夠在他們最需要 Verizon 的時候支持他們在全國範圍內的連接需求。除了新增用戶數量的增加之外，我們還看到企業和公共部門客戶的保留率有所提高，在此期間電話流失率提高了 35 個基點。

We are working with all of our customers during this time to ensure they stay connected, even if they're experiencing financial hardship as a result of COVID. We believe that our enterprise, public sector and wholesale customers will be relatively less impacted than our SMB customers initially, but we may see increased long-term risk from the crisis. Wireless service revenues in our Business Group are being impacted by reductions in overage fees, a reduction in international roaming and an increase in suspension of lines. Across Consumer and Business, we believe total wireless service revenue growth could be 3 to 5 percentage points lower than originally expected in the second quarter as a result of the reduction in fees and usage-based revenues. Additionally, bad debt expense increased as a result of our changing expectations around customer payments during this time. In the first quarter, we increased our bad debt reserve by $228 million based on the expected number of customers who will avail themselves of payment relief under the Keep Americans Connected Pledge. We will continue to monitor Consumer and Business payment behavior, and we'll work with our customers to help them stay connected despite difficult circumstances. As a result, it is possible that additional bad debt reserves may be required in the second quarter.

在此期間，我們正在與所有客戶合作，以確保他們保持聯繫，即使他們因 COVID 而遇到財務困難。我們相信，我們的企業、公共部門和批發客戶最初受到的影響將比我們的中小企業客戶相對小，但我們可能會看到危機帶來的長期風險增加。我們業務集團的無線服務收入受到超額費用減少、國際漫遊減少和線路暫停增加的影響。在消費者和企業領域，我們認為，由於費用和基於使用量的收入減少，第二季無線服務總收入增幅可能比最初預期的低 3 至 5 個百分點。此外，由於我們對客戶付款的預期在此期間發生變化，壞帳費用也增加了。在第一季度，我們根據「保持美國人互聯互通承諾」下將享受付款減免的預期客戶數量，將壞帳準備金增加了 2.28 億美元。我們將繼續監控消費者和企業的支付行為，並與客戶合作，幫助他們在困難的情況下保持聯繫。因此，第二季可能需要額外的壞帳準備金。

In Verizon Media, we are experiencing a decline in advertising and search revenue as advertisers pause, hold back or cancel campaigns during this time and users are searching for fewer commercial terms, providing us with less opportunity for monetization. As a result, advertising revenues declined by nearly 10% in the month of March, with COVID mostly impact in the second half of the month, and that rate of decline has increased in April. A number of industry forecasts expect a 20% to 30% decline in digital media revenues in 2Q, and Verizon Media's results are likely to be similar to those experienced in the broader industry.

在 Verizon Media，我們的廣告和搜尋收入正在下降，因為廣告商在此期間暫停、抑製或取消了廣告活動，而且用戶搜尋的商業術語更少，這為我們提供了更少的盈利機會。結果，3 月廣告收入下降了近 10%，其中下半月主要受到新冠疫情的影響，4 月下降速度有所加快。許多行業預測預計第二季度數位媒體收入將下降 20% 至 30%，而 Verizon Media 的業績可能與整個行業的情況類似。

Now let's go to Slide 18 to discuss our guidance and outlook for 2020. Obviously, the environment we find ourselves in today is vastly different than when we originally gave guidance just a few months ago. Given the unprecedented magnitude of the conditions we have all experienced, we are updating our financial guidance for the full year. We remain confident in our strategy, our business model and our ability to generate sustainable long-term earnings growth. Our consolidated revenue guidance of low to mid-single-digit percent growth that we announced in January included the expectation that 2020 equipment revenues would not create similar year-over-year headwinds as it has in the past few years. However, device activations have been low since mid-March, and we expect that to continue throughout the second quarter, with uncertainty around customer behavior for the remainder of the year. The wide range of potential outcomes around equipment revenue led us to determine that it is prudent to withdraw our consolidated revenue guidance at this time. For adjusted EPS, we are revising our original guidance of 2% to 4% growth and are now guiding to a range of negative 2% to positive 2% change from the prior year. Our new estimated range is based on a scenario that assumes significant headwinds prevail throughout the second quarter. We have limited visibility into the second half of the year, which will depend on various potential operating environments. We will continue to assess the impact of COVID on our business, including our bad debt reserve, and expect to provide an update on our next earnings call based on how things develop between now and then.

現在讓我們轉到第 18 張幻燈片來討論我們對 2020 年的指導和展望。顯然，我們今天所處的環境與幾個月前我們最初給予指導時相比有很大不同。鑑於我們都經歷了前所未有的嚴峻形勢，我們正在更新全年財務指導。我們對我們的策略、商業模式以及實現可持續長期獲利成長的能力充滿信心。我們在 1 月宣布的綜合收入預期為低至中等個位數百分比成長，其中包括預計 2020 年設備收入不會像過去幾年那樣同比逆風。然而，自 3 月中旬以來，設備啟動量一直很低，我們預計這種情況將持續整個第二季度，今年剩餘時間的客戶行為仍存在不確定性。設備收入的潛在結果範圍很廣，因此我們決定此時撤回合併收入指引是明智之舉。對於調整後的每股盈餘，我們正在修改原來的 2% 至 4% 的成長預期，現在預期與上年相比變化範圍為負 2% 至正 2%。我們的新估計範圍是基於假設整個第二季將面臨巨大阻力的情境。我們對下半年的預測有限，這將取決於各種潛在的營運環境。我們將繼續評估 COVID 對我們業務的影響，包括我們的壞帳準備金，並期望根據現在和那時的情況發展在下次財報電話會議上提供最新消息。

Other income statement items for which we provided guidance, including depreciation and amortization, interest expense and the adjusted effective tax rate, remain intact as originally guided. As we mentioned earlier, we have maintained our CapEx guidance for the full year that we announced in March. Our supply chain remains strong, and we have not seen a material slowdown in the sourcing of necessary equipment from our network and device partners.

我們提供指導的其他損益表項目，包括折舊和攤提、利息費用和調整後的有效稅率，仍保持最初的指導不變。正如我們之前提到的，我們維持了 3 月宣布的全年資本支出指引。我們的供應鏈依然強勁，我們從網路和設備合作夥伴採購必要設備的速度並未出現實質放緩。

We are optimistic that the measures government agencies have taken will provide support to citizens, businesses and the frontline responders that have been impacted by this crisis. We remain keenly focused on doing our part to provide best-in-class network performance and customer experience to all of our customers, which will continue to drive long-term operational and financial success, while weathering short term disruptions. Despite the extreme nature of what the world is experiencing, we believe that Verizon is well suited to remain resilient through this situation.

我們樂觀地認為，政府機構採取的措施將為受此次危機影響的公民、企業和第一線救援人員提供支援。我們將繼續致力於為所有客戶提供一流的網路效能和客戶體驗，這將繼續推動長期營運和財務成功，同時抵禦短期中斷。儘管世界正在經歷極端情況，但我們相信 Verizon 完全有能力在這種情況下保持韌性。

Let's take a look at Slide 19 to discuss our strong balance sheet and liquidity position. Over the past few years, we have strengthened our balance sheet, and the results of those actions have put us in a good position to manage through the impacts of the COVID pandemic. We ended the first quarter with $7 billion of cash on hand. Carrying a higher cash balance during a market crisis is part of our liquidity planning strategy, and we executed on that strategy with a $3.5 billion bond offering completed in March. In addition, we started and ended the first quarter with no commercial paper outstanding but have accessed this market in the second quarter to further enhance our liquidity. During the first quarter and before the market disruption, we also completed one of our largest device payment securitizations of $1.6 billion.

讓我們來看看投影片 19，討論一下我們強勁的資產負債表和流動性狀況。過去幾年來，我們加強了資產負債表，這些行動的結果使我們處於有利地位，能夠應對新冠疫情的影響。第一季結束時，我們手頭上有 70 億美元現金。在市場危機期間持有更高的現金餘額是我們流動性規劃策略的一部分，我們根據這項策略在 3 月完成了 35 億美元的債券發行。此外，第一季初和季末我們都沒有未償還的商業票據，但第二季我們進入了該市場，以進一步增強我們的流動性。在第一季度，在市場動盪之前，我們還完成了規模最大的設備支付證券化之一，金額達 16 億美元。

Having a cash cushion is prudent right now for many reasons, including our expectation that certain customers may have difficulty making timely payments as a result of the crisis. We are closely monitoring these trends with regard to their impact on our ABS programs.

目前，擁有現金緩衝是明智之舉，原因有很多，其中包括我們預計某些客戶可能會因危機而難以及時付款。我們正在密切監測這些趨勢對我們的 ABS 計劃的影響。

In the second quarter, we had some nonrecurring cash outflows including $2.7 billion of maturities and $1.3 billion of spectrum licenses from Auction 103. Scheduled unsecured bond maturities for the rest of 2020 are 0 as a result of our continued liability management strategy that keep near-term maturities low. Additionally, at the end of 2019, given our funded status and prior discretionary contributions, we expect no mandatory contributions to our pension plan until 2026, subject to market conditions. Our pension funded status has been further protected in recent years as we have increased the hedge ratio of our liability to about 50%. This resulted in the funded status of our pension plans only declining from 92% at year-end to 87% at the end of first quarter. Our standby credit facility with our bank group of $9.5 billion provides further assurance of our liquidity.

在第二季度，我們出現了一些非經常性現金流出，包括 27 億美元的到期現金流出和 13 億美元的 103 號拍賣的頻譜許可證現金流出。由於我們持續實施負債管理策略，將近期到期債券維持在較低水平，因此 2020 年剩餘時間的預定無擔保債券到期債券為 0。此外，鑑於我們的資金狀況和先前的自由支配繳款，我們預計在 2019 年底之前不會對我們的退休金計畫進行強制性繳款，具體取決於市場情況。近年來，我們已將負債對沖比率提高至約 50%，我們的退休金資助狀況得到了進一步保護。這導致我們的退休金計畫的資金到位狀況從年底的 92% 下降到第一季末的 87%。我們與銀行集團簽訂的 95 億美元備用信貸協議進一步保證了我們的流動性。

Our balance sheet is strong, and our liquidity position has been further strengthened as we navigate this difficult period for our customers and the markets. We have demonstrated the ability to access the bond and commercial paper markets in recent weeks. Our strong financial position gives us confidence to continue to invest, while also supporting all of our stakeholders.

我們的資產負債表強勁，隨著我們度過客戶和市場面臨的這段困難時期，我們的流動性狀況得到了進一步加強。最近幾週，我們已經展示了進入債券和商業票據市場的能力。我們強大的財務狀況使我們有信心繼續投資，同時也支持我們所有的利害關係人。

I'll turn it back over to Hans to provide a look at our 2020 priorities, and then we'll get to your questions.

我將把時間交還給漢斯，讓他介紹我們 2020 年的優先事項，然後我們再回答您的問題。

Thank you, Matt. Let me just round this off with our priorities going into this year and in the future.

謝謝你，馬特。最後，讓我來談談我們今年和未來的優先事項。

First of all, I feel that we're very well positioned to execute both in the near term and the long term to create more value for all our stakeholders. We have the Verizon 2.0 transformation, which is a new leadership, a new network technology, a new go-to-market, and we are delivering on that. And I feel that we have good results already right now, but more to come. I think we also have a very good strategy around the COVID-19 response that is covering all our stakeholders in a balanced way in order to create long-term value for all of them.

首先，我認為我們有能力在短期和長期內為所有利害關係人創造更多價值。我們進行了 Verizon 2.0 轉型，包括新的領導層、新的網路技術、新的行銷方式，我們正在實現這些目標。我認為我們現在已經取得了不錯的成績，但未來還會取得更多成績。我認為，我們在應對新冠疫情方面也有一個非常好的策略，該策略以平衡的方式涵蓋了我們所有的利害關係人，以便為所有利害關係人創造長期價值。

The 5G is still very much in the middle, the center of our strategy. And as you heard me saying before, we're in the middle of the execution, and we're not halting that. We're keeping it up all the time, and the team is doing great work there. And we see opportunity with 5G going forward, both with building all the cities, the 5G mobile edge compute as well as making this nationwide 5G still this year.

5G 仍然處於中間位置，是我們策略的核心。正如你之前聽到我說的，我們正在執行，我們不會停止。我們一直在堅持下去，團隊在這方面做得很好。我們看到了 5G 未來的機遇，包括建設所有城市、5G 行動邊緣運算以及今年在全國實現 5G。

Matt talked about our discipline and the financials and our capital position and our capital allocation, I feel good about that. We have done tremendous, not in the last 12 months, but also the last 3 months, in order to put us in a good situation to continue to meet all the demands in our capital allocation, all the way from our business, to our shareholders, to our debt holders.

馬特談到了我們的紀律、財務狀況、資本狀況和資本配置，我對此感覺很好。我們不僅在過去 12 個月，而且在過去 3 個月裡都做了大量工作，以便讓我們處於良好的狀態，繼續滿足我們資本配置的所有需求，從我們的企業到我們的股東，再到我們的債務持有人。

And ultimately, I think the strong brand that we have has been reinforced in times like that, both by the talent we have, but also by the response to our business practices and the way we're dealing with our society.

最終，我認為在這樣的時代，我們強大的品牌得到了加強，這不僅得益於我們擁有的人才，也得益於我們商業實踐的回應以及我們與社會打交道的方式。

So all in all, I feel good about our strategy. I think that we are in the middle of execution of it. We need to have a multipronged strategy where we're managing the crisis at the same time, but that doesn't mean we should not execute on our strategy.

總而言之，我對我們的策略感到滿意。我認為我們正處於執行階段。我們需要製定一個多管齊下的策略來同時應對危機，但這並不意味著我們不應該執行我們的策略。

So by that, I hand it back to you, Brady.

因此，我把權力交還給你，布雷迪。

Thanks, Hans. Brad, we're ready to take questions.

謝謝，漢斯。布拉德，我們準備好回答問題了。

(Operator Instructions) Our first question comes from Brett Feldman of Goldman Sachs.

（操作員指示）我們的第一個問題來自高盛的布雷特·費爾德曼。

A question about your updated EPS guidance. As you noted during your presentation, certain activity in the business has declined significantly. I would assume that there's a degree of cost savings associated with that. You also highlighted some areas where you're seeing some pressures. You highlighted roaming revenues as an example. So I was hoping you can maybe just give us a little more insight into the puts and takes that caused you to see a slightly lower outlook for earnings over the course of the year.

關於您更新的 EPS 指導的一個問題。正如您在演講中指出的那樣，業務中的某些活動已大幅下降。我認為這會帶來一定程度的成本節約。您還強調了一些您看到壓力的領域。您以漫遊收入為例進行了強調。因此，我希望您能讓我們更深入地了解導致您對今年獲利前景預期略低的因素。

And then just point of clarification, you said that this revised outlook reflects headwinds you expect to see in the second quarter. I'm curious whether you're saying that the variance in earnings that you expect to report this year will primarily be contained to the second quarter. Or if you're saying that those headwinds for the remainder of the year collectively result in a change?

然後需要澄清的是，您說修改後的展望反映了您預計第二季將遇到的阻力。我很好奇您是否說您預計今年報告的收益差異將主要局限於第二季。或者您是說今年剩餘時間的這些不利因素將共同導致變化？

Brett, thanks for the question, and good morning, everyone. So as you look at the guidance, and we went through some of it in the prepared remarks. But as you look at the items that are in there, when I think about the revenue side for the second quarter, really break it up into 2 major buckets. You think about the actions that we've taken and the actions -- or the impacts of changes in customer behavior.

布雷特，謝謝你的提問，大家早安。因此，當您查看指南時，我們在準備好的發言中已經討論了其中的一些內容。但是，當你查看其中的項目時，當我考慮第二季度的收入方面時，實際上將其分為兩個主要部分。您考慮我們已經採取的行動以及這些行動—或客戶行為變化的影響。

So as I start to off and think about the actions we've taken, it starts with, obviously, the Keep Americans Connected Pledge for that 60-day period. The vast majority of that is in the second quarter, and so we'll see more impact in Q2 than we saw in Q1. Additionally, as we mentioned, we've given customers an extra 15 gigabits of data. And whether that be on metered plans or on hotspots for those customers who are on unlimited plans. So that's going to have a significant impact on the overage fees that we would normally collect. Earlier this week, we announced that we would be extending that 15 gigabit from the end of April through the end of May.

因此，當我開始思考我們所採取的行動時，顯然首先要考慮的是為期 60 天的「保持美國人聯繫」承諾。其中絕大部分發生在第二季度，因此我們將看到第二季度比第一季產生更大的影響。此外，正如我們所提到的，我們為客戶提供了額外的 15 千兆位元資料。對於使用無限流量套餐的客戶來說，無論是按流量計費套餐還是熱點套餐。因此，這將對我們通常收取的超額費用產生重大影響。本週早些時候，我們宣布將從 4 月底到 5 月底延長 15 千兆位元。

On the customer behavior side, one of the obvious ones is obviously international roaming. I think it's fair to say you can put a pretty low number in your model for international roaming revenue for the second quarter. But also, in there, as we think around especially in the SMB side of the business, we would expect to see those customers suspending some of the lines on their accounts over this time period, and that will have an impact on revenue, too.

在客戶行為方面，其中一個明顯的例子顯然是國際漫遊。我認為可以公平地說，你可以在第二季度的國際漫遊收入模型中輸入一個相當低的數字。但是，當我們考慮特別是中小企業業務時，我們預計這些客戶會在這段時間內暫停其帳戶上的部分線路，這也會對收入產生影響。

So when we add all those things up, we see that those should impact the year-over-year service revenue growth in kind of the 3% to 5% range in Q2. Some of those things will obviously extend beyond Q2. Some of the things may not extend beyond Q2. Obviously, we control how much we extend the actions. The customer behavior will obviously be impacted by more of the macro environment, so we'll see how that plays out into the second half of the year.

因此，當我們把所有這些因素加起來時，我們會發現這些因素應該會對第二季服務收入年增率產生 3% 到 5% 的影響。其中一些事情顯然會延續到第二季​​之後。有些事情可能不會延續到第二季​​之後。顯然，我們可以控制動作的延伸程度。客戶行為顯然會受到更多宏觀環境的影響，因此我們將觀察其在下半年將如何發展。

So you have that there on the service revenue side. As you think about other parts of revenue, obviously, equipment revenue will be down. But also within media, as I mentioned, we're seeing a significant reduction. We were down 4% for the first quarter, but 10% in March. So basically, all of the year-over-year decline in the first quarter was contained in the COVID period. And then as we've gone into the sharp-turned second quarter here, we're seeing those reductions increase. So a lot of the industry forecast is 20% to 30% [reduction on $1.7 billion of] (added by company after the call) quarterly revenue. That's obviously a material number, too.

所以，在服務收入方面，您已經看到了這一點。當你考慮收入的其他部分時，顯然設備收入將會下降。但正如我所提到的，在媒體領域我們也看到了顯著的減少。第一季我們下降了 4%，但 3 月下降了 10%。因此，基本上，第一季的所有同比下降都包含在 COVID 期間。然後，隨著我們進入急劇轉變的第二季度，我們看到這些減少量增加。因此，許多行業預測季度收入將減少 20% 至 30%（17 億美元，公司在電話會議後補充）。這顯然也是一個重要的數字。

So we have some benefits come through on the expense side, but obviously, those revenue impacts are going to impact the overall profitability in the quarter. And you see that reflected in our guide.

因此，我們在費用方面獲得了一些好處，但顯然，這些收入影響將影響本季的整體獲利能力。您可以在我們的指南中看到這一點。

In terms of the back half of the year, really too soon to tell. I mean there's a lot of things that play out here over the course of the next 90 days. We'll have a much better sense of what the back half of the year looks like. And then obviously, we'll update our view on that when we get to the next call. But we're optimistic.

就今年下半年而言，現在下結論還為時過早。我的意思是，在接下來的 90 天裡，這裡會發生很多事情。我們將對今年下半年的情況有更好的了解。顯然，我們會在下次通話時更新我們的觀點。但我們很樂觀。

What we -- that's what we don't know. What we do know is we come into this situation in a position of strength. We've had good performance in the business over a number of quarters now. We come in with products and services that are obviously very important to customers. And we come in with a balance sheet that we've worked on significantly over the past few years. It gives us a little bit of a shock absorber, if you will, so that we can keep operating our business and position ourselves to come out on the other end of this situation for a position of strength. So that's how we're kind of seeing the second quarter and as we look forward to the rest of the year ago here, Brett.

我們——這是我們不知道的。我們確實知道，我們處於有利地位。過去幾個季度，我們的業務表現一直良好。我們提供的產品和服務顯然對客戶來說非常重要。我們帶來了過去幾年來經過大量工作的資產負債表。如果你願意的話，它可以給我們一點減震器，這樣我們就可以繼續經營我們的業務，並使我們自己處於有利地位，從而擺脫這種局面。這就是我們對第二季的看法，以及我們對今年剩餘時間的展望，布雷特。

The next question comes from John Hodulik of UBS.

下一個問題來自瑞銀的 John Hodulik。

Great. Maybe just as a follow-up to Brett's question on that 300 to 500 basis points. Matt, can you give us any more color in terms of maybe the sub-impact and the ARPU impact that you expect to see from all these different pieces? I mean you gave some great detail on what's going on in April here. Maybe just a little bit sort of a total gross add impact that you expect to see? And then maybe on the ARPU side, how big these components are that are being affected? And how that could potentially play out in that sort of 1% to 3% service revenue decline you're expecting?

偉大的。也許只是對布雷特關於 300 到 500 個基點的問題的後續回答。馬特，您能否向我們詳細介紹一下您預計從所有這些不同部分中看到的子影響和 ARPU 影響？我的意思是，您詳細介紹了四月這裡發生的事情。也許只是您希望看到的一點點整體影響？那麼從 ARPU 方面來看，受影響的組件有多大？您預計服務收入將下降 1% 至 3%，這可能會產生什麼影響？

And then maybe a new topic on the Fios side. When did you guys start the new policy of not entering consumers' homes? And I saw -- I think you -- it shows here that Internet net adds are definitely slowing, but do you expect that to go negative? And then what do you see for video trends as we look out into the second quarter?

然後也許是 Fios 方面的一個新主題。你們什麼時候開始實行不進入消費者家中的新政策？我看到——我想你——這表明互聯網淨增值肯定在放緩，但你預計會變成負值嗎？那麼，展望第二季度，您認為視訊趨勢如何？

Yes. Thanks, John. So following up on the service revenue. When you think about the ARPU, you've got the base billing, and then you've got the additional things that go in there, whether that be international roaming, whether it be overages, whether it be late fees or whatnot. So we feel really good about the core billings within the business. We're seeing customers use our products and services, obviously, on a -- in a very strong fashion and I should expect to see that continue. But where we will see some pressure is around the edges with those other parts of what we bill, whether as I say, it be roaming, overages or whatnot. So the vast majority of that 3% to 5% comes from those items that we bill that are in the service revenue line. And then on top of that, you'll have the impact of suspends on the SMB side. We'll see how much that plays in.

是的。謝謝，約翰。因此要跟進服務收入。當您考慮 ARPU 時，您將獲得基本帳單，然後您將獲得其中的附加費用，無論是國際漫遊費、超額費用、滯納金還是其他費用。因此，我們對業務的核心收入感到非常滿意。我們看到客戶非常積極地使用我們的產品和服務，我希望看到這種情況持續下去。但是，我們會看到一些壓力出現在我們計費的其他部分，無論是漫遊費、超額費還是其他什麼。因此，這 3% 到 5% 中的絕大部分來自於我們收費的服務收入項目。除此之外，您還會受到 SMB 端暫停的影響。我們將看看這會產生多大作用。

So overall, most of the -- we will see an impact in ARPU there as we go through the quarter. But subs are looking in a great position, as we mentioned, the churn is at a low level. You're looking at about a 0.5 type of range right now in Consumer. Obviously, that's very low compared to where it has been. And I think it reflects the fact as you go into a time like this, consumers obviously value the quality of their network connection with all the increased activity we've seen across it. So all in all, that's where you'll see the majority of the impacts in service revenue as we go into the second quarter here.

因此總體而言，隨著本季的推進，我們將看到 ARPU 受到較大影響。但正如我們所提到的，潛艇的情況看起來非常好，流失率處於較低水平。您現在看到的是消費者中大約 0.5 種範圍。顯然，與之前相比，這個數字非常低。我認為這反映了這樣一個事實：隨著我們進入這樣的時代，隨著網路連接活動的增加，消費者顯然更加重視網路連線的品質。總而言之，當我們進入第二季時，你會看到服務收入受到的大部分影響。

And I'll turn it over to Hans and provide some comments around what we're doing with Fios and the engineers going into consumers' homes and whatnot.

我將把這個時間交給漢斯，並就我們在 Fios 方面所做的工作以及工程師進入消費者家中等情況提供一些評論。

Thank you, Matt. And John, let me say one thing that we have been balancing all the time is, of course, safe and -- safety and health for our employees. And that's why we were very early on to actually close down almost 70% of our stores and go to new sort of visiting hours and all of that.

謝謝你，馬特。約翰，我想說的是，我們一直在平衡的一件事當然就是員工的安全和健康。這就是為什麼我們很早就關閉了近 70% 的商店，並採取了新的營業時間等等。

The same we have done with our engineers in the field, very important for us to see that they are safe and healthy. And in the beginning here, we were very restricted on visited on homes. But we've also seen a lot of innovation. And the last couple of weeks here, we have actually innovated, so we can start installing Fios without going into the homes with both what we call the Fios in the box, which is where the consumer or the customer is installing themselves; as well as we also have a virtual agent right now where the customer can be guided how to do the installation. That innovation, we have been able to do in 2, 3 weeks, and now we start ramping that up. And I'm confident that over time, we almost can be back on a normal levels of installation, but with the safe and healthy of our employees and as well for our customers.

我們對現場的工程師也做了同樣的事情，確保他們的安全和健康對我們來說非常重要。一開始，我們對家庭的訪問受到嚴格限制。但我們也看到了很多創新。在過去的幾周里，我們實際上已經進行了創新，因此我們可以開始安裝 Fios，而無需進入家庭，我們稱之為盒子裡的 Fios，即消費者或客戶自己安裝；同時我們現在還有一個虛擬代理，可以指導客戶如何進行安裝。我們在兩三週內就完成了這項創新，現在我們開始加速推進。我相信，隨著時間的推移，我們的安裝幾乎可以恢復正常水平，同時確保員工和客戶的安全和健康。

And I think that, again, just coming back to the importance on balancing, in a crisis like this, you need to balance all the different stakeholders and see that you really have the priorities right. And our priority has been from the beginning, the safety and health for our employees. That's very important.

我認為，再次回到平衡的重要性，在這樣的危機中，你需要平衡所有不同的利害關係人，並確保你確實有正確的優先事項。從一開始，我們的首要任務就是確保員工的安全和健康。這非常重要。

Second is, of course, to see that our networks are staying up because of the importance of our infrastructure in these times. Because we know that the country is needing our network and our technology staying up and having the highest quality as Verizon always has. So we are managing that every day here, and I think we're managing it very well. And as said, the innovation is now telling us and we can go back to something that is normal, but in a totally new way of doing it. So I'm grateful for my team.

第二，當然是要確保我們的網路保持正常運行，因為在當今時代，我們的基礎設施非常重要。因為我們知道，國家需要我們的網路和技術保持領先地位，並擁有像 Verizon 一貫以來的最高品質。所以我們每天都在這裡管理這個問題，而且我認為我們管理得很好。正如所說，創新現在告訴我們，我們可以回到正常狀態，但以一種全新的方式來實現它。所以我很感謝我的團隊。

The next question comes from Phil Cusick of JPMorgan.

下一個問題來自摩根大通的 Phil Cusick。

To clarify one more time on this 3% to 5% in 2Q. Can you please confirm that is versus your prior expectation for year-over-year growth rather than just year-over-year? And also, can you quantify what the service revenue headwind was in the first quarter versus the regular business growth rate?

再次澄清第二季的 3% 到 5%。您能否確認這是否與您之前預期的同比增長而不是同比增長相符？另外，您能否量化第一季服務收入逆風與常規業務成長率之間的關係？

And then second, Verizon Media revenue sounds like down 20% to 30% in the second quarter. What do the margins look like in this business? We don't really know much about what the sort of cost flexibility is there and whether margins can stay positive or flip to negative when revenue comes down quickly.

其次，Verizon Media 第二季度的收入似乎下降了 20% 至 30%。這個行業的利潤率是多少？我們實際上並不太了解那裡的成本彈性是怎樣的，也不太了解當收入快速下降時利潤率是否可以保持正值或轉為負值。

Yes. Thanks, Phil. So as you look at the service revenue, and you think about the impacts in there, the 3% to 5% is really is going to be 3% to 5% lower than they otherwise would have been. A reduction in the growth rates on a year-over-year basis is what you'll see there.

是的。謝謝，菲爾。因此，當您查看服務收入並考慮其中的影響時，3% 到 5% 實際上將比原本的水平低 3% 到 5%。您會看到成長率較去年同期有所下降。

There was a small impact on service revenue in the first quarter. If you think across both Consumer in the 30 to 40 basis points of service revenue growth so the 1.9% would have had some upside without the impact that we saw at the back end of March. But we're in -- we like where the position of the service revenue trajectory is. As you come into the quarter, as you go into 2Q here, the core underlying performance of the wireless business in both consumer and business is very strong. And we expect to see that show up in our service revenues throughout the rest of the year.

對第一季服務收入影響較小。如果您考慮消費者在 30 到 40 個基點的服務收入成長中，那麼 1.9% 的成長率將會有一定的上升空間，而不會受到我們在 3 月底看到的影響。但我們喜歡服務收入軌跡的當前位置。進入本季度，進入第二季度，消費者和企業無線業務的核心潛在表現非常強勁。我們預計這一趨勢將在今年剩餘時間內體現在我們的服務收入中。

Something about the Verizon Media Group. As Matt reported, of course, that we have seen an impact lately on our advertising. We're, of course, encouraged about the increased activity and the growth of engagement because that's ultimately going to pay off later on. And I think that, first of all, our Verizon Media team has been extremely innovative with new products and new ways of delivering services the last couple of weeks here in a time of this pandemic.

有關 Verizon Media Group 的一些資訊。當然，正如馬特所報告的那樣，我們最近看到了對我們的廣告的影響。當然，我們對活動的增加和參與度的成長感到鼓舞，因為這最終會帶來回報。我認為，首先，在過去幾週的疫情期間，我們的 Verizon Media 團隊在新產品和新服務交付方式方面進行了極具創新性的嘗試。

I have to say that I have a lot of confidence in my Verizon Media Group to work with different scenarios, given how this pandemic will develop and how it will hit Verizon Media Group. We have seen the last 18 months or, I don't know, 6 quarters that our Verizon Media Group has found ways to both reduce direct cost and find new ways to innovate. But all in all, we need to understand that, of course, advertising these days, you are restrictive, you're cautious given the pandemic.

我必須說，考慮到這次疫情將如何發展以及它將如何影響威瑞森媒體集團，我對威瑞森媒體集團應對不同情況的能力充滿信心。我們看到，在過去的 18 個月，或者說 6 個季度裡，我們的 Verizon Media Group 已經找到了降低直接成本和尋找創新新方法的方法。但總而言之，我們需要明白，當然，如今的廣告是受到限制的，考慮到疫情，廣告是謹慎的。

But again, I think that, as I said in the beginning, we are working with different scenarios that can happen, and we have different levers and activities that we can do given where this is going. That goes for all our different businesses, which, of course, they are in different form and shape at the moment, but it also goes for the whole corporation.

但正如我在一開始所說的，我認為我們正在應對可能發生的不同情況，並且根據事態發展，我們可以採取不同的措施和活動。這適用於我們所有的不同業務，當然，它們目前的形式和形態不同，但也適用於整個公司。

And then just adding on what Matt said about our wireless business. I think that one thing that worked in the brand, since we embarked on the unlimited some 2 years ago, we have constantly built a model which can actually meet all the different scenarios, all the way from our Mix & Match, our -- in Visible, Yahoo Mobile, the work we're doing with track phone, the network as a service. I think that regardless where it will go, we will have opportunities to actually serve our customers with the plans that they need. And I think that few others can do that in this market as well as we have the best network. So I think we're well positioned in the world that might be uncertain, but we have all those different type of opportunities to serve our customers.

然後補充一下馬特對我們的無線業務的看法。我認為，自從大約兩年前我們開始進入無限領域以來，我們品牌中一個行之有效的方法就是，我們不斷構建一個能夠真正滿足所有不同場景的模型，從我們的 Mix & Match，到我們的 Visible、雅虎移動，再到我們正在進行的跟踪電話工作、網絡即服務。我認為無論最終走向何方，我們都有機會為客戶提供所需的計劃。我認為在這個市場上很少有人能像我們一樣做到這一點，因為我們擁有最好的網路。因此，我認為我們在這個充滿不確定性的世界中處於有利地位，但我們擁有各種不同類型的機會來服務我們的客戶。

And just real quick on the cost side there that comes, obviously, the service revenue impact and the media revenue impact. But obviously, we're doing things to manage the cost side of the business as we go through this period. And it's really building on the work we've been doing for the last few years now, and it's put us in a position where we can take the actions that we need to in this time. We'll see some cost benefits as we go through this. But it also allows us to do the things to support our employees and customers and to keep investing in the business for the long haul even as we're in this unusual time period. So cost controls are very much on our mindset as we go through this time period as well.

就成本方面而言，顯然會對服務收入和媒體收入產生影響。但顯然，我們正在採取措施來管理這段時期的業務成本。這實際上是在我們過去幾年所做工作的基礎上取得的成果，它使我們能夠在此時採取必要的行動。當我們經歷這個過程時，我們將看到一些成本效益。但它也使我們能夠做一些事情來支持我們的員工和客戶，即使在這個不尋常的時期也能繼續對業務進行長期投資。因此，當我們經歷這段時期時，成本控制也是我們非常重視的事情。

If I can just clarify as well on Brett's question. You said that a lot of the impact, I think, for the EPS cuts is in the second quarter. But I think it would make sense that you're guiding for probably weaker earnings through the year. Is that fair?

我是否也可以澄清一下布雷特的問題。您說我認為每股盈餘削減的大部分影響都集中在第二季。但我認為，您預測全年獲利可能會下降是有道理的。這樣公平嗎？

Most of the impact in the guide is the impact that we discussed in the second quarter. As we look to the second half of the year, obviously, there's a very wide range of potential outcomes there. So we'll see how that plays out. And obviously, when we're on this -- the next earning call, 90 days from now, we'll have a lot more to say about the second half of the year. But a lot of the commentary we had and a lot of the updates in the guide relates to what we'll see in 2Q. But we will see some of those revenue impacts, you think about international roaming, for example, will stay with us for a longer time period. But we'll wait and talk more about the second half of the year when we have better visibility into it.

指南中的大部分影響是我們在第二季討論過的影響。展望下半年，顯然會出現各種潛在的結果。因此我們將拭目以待事情將如何發展。顯然，當我們在 90 天後的下一次財報電話會議上時，我們會對下半年有更多話要說。但我們的許多評論和指南中的許多更新都與我們在第二季將看到的情況有關。但我們會看到其中一些收入影響，例如國際漫遊，將會持續更長的時間。但我們會等到對下半年的情況有更清晰的了解後再討論。

The next question is from David Barden of Bank of America.

下一個問題來自美國銀行的戴維‧巴登 (David Barden)。

I guess, 2, if I could, first, just kind of looking at the Slide 17, where you give us kind of the COVID environment effect on the mobile business. Could you give us some of that similar color, Consumer, SMB and enterprise on the wireline side?

我想，2，如果可以的話，首先，請看一下投影片 17，您在其中向我們介紹了 COVID 環境對行動業務的影響。您能否提供我們一些類似的顏色，有線方面的消費者、SMB 和企業？

And then second, obviously, last quarter, there was a big investment in the business services group in terms of trying to modernize the tech and the go-to-market capabilities. Could you kind of elaborate a little bit on what's been accomplished thus far in that exercise? And kind of what, in the current environment, your expectations might be for the return on that investment at this stage?

其次，顯然，上個季度，我們在商業服務集團方面進行了大筆投資，試圖實現技術現代化和市場進入能力。您能否詳細說明一下迄今為止該演習所取得的成果？那麼，在當前環境下，您對現階段該項投資的報酬有何預期？

Yes. Thanks, Dave. That's -- let's unpack those. Starting off with the wireline impact on the current environment. In Fios, we talked a little bit about that. We saw good volumes in Internet in the first quarter, but that was largely a reflection of low churn as we came into this. And obviously, a lot of appreciation from our customer base on the quality of the Fios Internet product.

是的。謝謝，戴夫。那就是——讓我們來解開它們。從有線對當前環境的影響開始。在 Fios 中，我們對此進行了一點討論。我們在第一季看到了網路業務的良好表現，但這很大程度上反映了我們進入這一階段時的低流失率。顯然，我們的客戶群對 Fios 網路產品的品質給予了高度評價。

As you go into the second quarter, you're going to continue to see the benefit on the churn side, but obviously we'll have some impact on the gross adds side from the employee actions that Hans mentioned, where we're not allowing employees to really enter customers' homes.

進入第二季度，您將繼續看到客戶流失的好處，但顯然，我們會對總增加價值產生一些影響，因為漢斯提到的員工行為不允許員工真正進入客戶家中。

What's really good -- what you see from us is, say, okay, how do we react to this? So Hans talked about the Fios in a box, right. Let's not let this environment completely stop what we're doing. How do we -- yes, there's an obstacle in our way. Let's find a way around it. This team is phenomenal on doing that. So we will have some gross adds here in the quarter that we might not have expected when we first stopped going into customers' homes.

真正好的是──你從我們這裡看到的是，好吧，我們對此有何反應？所以漢斯談論的是盒子裡的 Fios，對吧。我們不要讓這種環境完全阻止我們正在做的事情。我們如何——是的，我們的道路上有障礙。讓我們找到解決這個問題的方法。這支團隊在這方面做得非常出色。因此，本季我們的總銷售額將會有一些成長，這是我們在第一次停止進入客戶家中時可能沒有預料到的。

As you look across the other parts of wireline, as you get into SMB and the larger businesses, obviously, as we've seen an uptick in usage across the core networks and we've been doing a number of things to help, especially our larger enterprise customers adapt very quickly to having their -- a large number of their employees work from home and having to update their systems to be able to handle that change in network traffic and where the work is performed. So I would expect to see a continuation of that. But it won't massively change the ongoing wireline trends -- revenue trends that we've seen across the business as we think about second quarter here.

當您查看有線網路的其他部分，當您進入中小型企業和大型企業時，顯然，我們已經看到核心網路的使用量有所上升，並且我們一直在做許多事情來幫助，特別是我們的大型企業客戶非常迅速地適應他們的大量員工在家工作，並且必須更新他們的系統才能處理網路流量和工作地點的變化。因此我期望看到這種情況的持續。但它不會大幅改變當前的有線趨勢——當我們考慮第二季時，我們已經看到了整個業務的收入趨勢。

In terms of the investment in VBG and what you see in the margins in the first quarter there, I think we came in with a decent margin for that group. But as I shared on the call back in January, this isn't a one quarter investment in the business. There's a number of things that we need to do to upgrade the capabilities of our Business group so that we can be that partner of choice for businesses as we enter the fourth industrial revolution. And so there's a lot of good activity going on there. And I'll stick with what I said on the last call that we'll be investing in that for quite a while here. We should start to see the impact -- the benefits on the cost side towards the end of this year. And then the impacts on the revenue side in '21 and really getting full steam in '22, so a lot to come there.

就對 VBG 的投資以及第一季的利潤率而言，我認為我們為該集團帶來了不錯的利潤率。但正如我在一月份的電話會議中提到的那樣，這並不是針對該業務的一個季度的投資。我們需要做很多事情來提升我們業務集團的能力，以便我們在進入第四次工業革命時成為企業的首選合作夥伴。因此那裡正在發生很多有益的活動。我會堅持上次電話會議所說的話，我們會在相當長的一段時間內對此進行投資。我們應該在今年年底開始看到其影響——成本方面的好處。然後，對 21 年收入方面的影響將在 22 年真正全面顯現，因此還有很多事情要做。

And Hans, I'll let you follow-up on that.

漢斯，我會讓你跟進此事。

Yes, you're absolutely right, Matt. This is -- we are clear on the strategy of the Verizon Business Group. I just want to remind all of you, we brought together several different groups on wireline and wireless and this go-to-markets. Tami and the team has very clear strategy of doing the transformation. That has not slowed down. We continue with that because when coming into this COVID-19, we see even a more importance of Verizon Business Group than really Matt talked about. This is one of the areas we see that we have a great opportunity going forward as we build a Verizon Intelligent Edge Network, as we come with 5G and the trends in the industry. I mean, digitalization, all of that, which, of course, has been accentuated in this COVID-19.

是的，你完全正確，馬特。這是——我們清楚 Verizon 商業集團的策略。我只是想提醒大家，我們召集了幾個不同的有線和無線團隊，並負責行銷。Tami 和團隊對於轉型有著非常明確的策略。這一趨勢並未減緩。我們繼續這樣做，是因為在進入 COVID-19 疫情後，我們看到 Verizon Business Group 的重要性比 Matt 所說的還要高。隨著 5G 和行業趨勢的到來，隨著我們建立 Verizon 智慧邊緣網絡，我們看到這是我們未來擁有巨大機會的領域之一。我的意思是，數位化，所有這些，當然在這次 COVID-19 疫情中得到了強調。

So I feel good about what we're doing here. The team is running as fast as they can with this transformation. But as Matt said, this is not the 1 quarter thing, but we're not holding back on the transformation. And in that transformation, we said we will invest, and one investment was, of course, the BlueJeans, which we have had in our portfolio for a couple of quarters as a distributor. But as this turned out, we felt that it was a good opportunity to actually make the acquisition, and we have been testing them. It's a great product. And we stitch that into our go-to-market in the Verizon Business Group. But I also see it as a great opportunity for the 5G. Because ultimately, 5G at the edge, we will have a lot of low latency, enormous throughput where video and transcoding will be important. So adding that asset is also important for the future.

所以我對我們在這裡所做的事情感到很滿意。球隊正以最快的速度完成這項轉變。但正如馬特所說，這不是第一季的事情，但我們不會阻礙轉型。在這次轉型中，我們表示我們將進行投資，其中一項投資當然是 BlueJeans，作為分銷商，我們已經將其納入投資組合幾個季度了。但事實證明，我們覺得這是一個進行收購的好機會，我們一直在測試它們。這是一個很棒的產品。我們將其融入 Verizon 商業集團的行銷中。但我也認為這對 5G 來說是一個很好的機會。因為最終，在邊緣 5G 中，我們將擁有大量低延遲、巨大的吞吐量，其中視訊和轉碼將非常重要。因此，增加該資產對於未來也很重要。

So once again, we feel good about our strategy in Verizon Business Group and how they have performed. And we have some more work to be done, and we're not holding back on that transformation as that will put us in even stronger position when they're done.

因此，我們再次對 Verizon Business Group 的策略及其表現感到滿意。我們還有一些工作要做，我們不會阻止這種轉變，因為當它們完成時，這將使我們處於更強大的地位。

The next question comes from Simon Flannery of Morgan Stanley.

下一個問題來自摩根士丹利的西蒙·弗蘭納裡。

Thanks for all the color on the COVID-19. Very helpful. I wonder, Matt, if you could get into a little more on the bad debt, help us understand where that is across the Consumer versus Business. I'm guessing a lot of it's in SMB. How does that break wireless, wireline?

感謝大家對 COVID-19 的關注。非常有幫助。馬特，我想知道您是否可以更詳細地介紹壞帳問題，幫助我們了解消費者和企業之間的壞帳情況。我猜很多都是在 SMB 裡。這如何打破無線和有線連接？

And then, Hans, could you talk a little bit about the digital channels. You talked a lot about Fios in a box. How are you thinking about maybe pushing more of the phone sales and wireless sales through the online channel? Where are you today? And what can you do to increase that percentage?

然後，漢斯，您能否談談數位管道。您談了很多關於盒子裡的 Fios 的事情。您如何考慮透過線上管道推動更多的電話銷售和無線銷售？你今天在哪裡？那麼您可以做些什麼來提高這個百分比呢？

Thanks, Simon. So on the bad debt, as we look at that, the vast majority of it is sitting in the Consumer side just because of the relative difference in the size of the businesses between Consumer and SMB. As we did the bad debt reserve this year, we're now operating under the new CECL accounting standards. It requires us to take a more forward look at expected losses.

謝謝，西蒙。因此，就壞帳而言，我們認為絕大多數壞帳都集中在消費者方面，這是因為消費者和中小企業之間的業務規模存在相對差異。由於我們今年進行了壞帳準備，因此我們現在按照新的 CECL 會計準則進行營運。它要求我們更加前瞻性地看待預期損失。

And so really, what we did, we took -- we looked at how many customers have availed themselves of the pledge. We used that as a starting point for the reserve. I can tell you as of around mid-April, we have around 800,000 customers who have signed up for the pledge and some of the various other stakeholders. The vast majority of those are in mobile, and that provided some of the bases. But it's too early to know exactly how the bad debt requirements will play out. We'll monitor that closely here as we go forward.

所以實際上，我們所做的就是——我們查看了有多少客戶已經履行了承諾。我們以此作為保護區的起點。我可以告訴你，截至 4 月中旬，我們已有大約 80 萬名客戶和其他一些利害關係人簽署了承諾。其中絕大多數是在行動裝置上，這提供了一些基礎。但現在還無法確切知道壞帳要求將如何發揮作用。我們將在此密切關注此事。

But certainly, we're seeing different payment patterns across different parts of our customer base. Actually encouraged by what we're seeing on the Consumer side here over the last couple of weeks. And another proof point that as we've talked about in the past, as we saw in the financial crisis, that consumers continue to put their phone bill high up their list of priorities for payments.

但可以肯定的是，我們看到不同客戶群的支付模式有所不同。事實上，過去幾週我們在消費者方面看到的情況令我們感到鼓舞。另一個證據是，正如我們過去談到的，正如我們在金融危機中看到的那樣，消費者仍然將電話帳單放在付款優先事項的首位。

And certainly, we're monitoring closely on the Business side, especially within SMB, how that's going to play out. Nothing in the payment patterns at this point is overly pessimistic, but we're obviously going to stay very close to that and work to keep our relationship with our customers wherever possible. So that hopefully gives you a little background on how we look at the bad debt. And I'll let Hans answer the question on how we see digital channels going forward.

當然，我們正在密切關注業務方面，特別是中小企業方面的情況，看看情況會如何發展。目前的支付模式並不算過於悲觀，但我們顯然會密切注意這種情況，並盡可能地維持與客戶的關係。希望這能讓您了解我們如何看待壞帳。我請漢斯來回答我們如何看待未來數位管道的發展的問題。

So let me just lay out how we're running the company right now. We're basically running the company in a 3-pronged strategy. The first prong is, of course, the crisis management, where we have a team that is dealing with all the challenges with pandemic for our employees, for our customers and for the society at large.

那麼，讓我簡單介紹一下我們目前的公司營運。我們基本上採用三管齊下的策略來經營公司。第一步當然是危機管理，我們有一個團隊正在為我們的員工、客戶和整個社會應對疫情帶來的所有挑戰。

Secondly, I have the majority of my leadership team running business as usual. We have our 5G governance early this week, where we went through all the deployment, all the 5G mobile edge compute, all the new business cases, just running as normal.

其次，我的領導團隊中的大多數人仍在照常進行工作。本週早些時候，我們進行了 5G 治理，完成了所有部署、所有 5G 行動邊緣運算、所有新業務案例，一切正常運作。

And then we have a team, which also think about the new normal. What will be the new normal when we come out from this pandemic? And one of the question, which is, I think, I believe is going to happen, we're going to see much more digital sort of omnichannel from our customers, and we are ready for it. We have already pivot to it. We're probably going to see another environment -- work environment that we need to think about. We're probably going to also see a different type of product that we need to put forward.

然後我們有一個團隊，他們也思考新常態。當我們擺脫這場疫情後，新常態會是什麼？我認為，我相信其中一個問題是，我們將會看到客戶採用更多數位化的全通路服務，我們已經做好了準備。我們已經轉向它了。我們可能會看到另一個環境——我們需要考慮的工作環境。我們可能還會看到需要推出的不同類型的產品。

So I try to see that we have all these 3 prongs working at the same time in order for us to come up even stronger from this crisis as well as managing the today and not missing our target put up as well as managing the crisis at the same time. So I can only confirm, I have the same feelings as you have. We're going to see much more of digital usage of ordering. But we're also going to see things that we never thought were possible. I mean telehealth will increase over time. People are now and still, they don't need to go to hospital. We're going to see education -- remote education growing because people see that it's actually working. All that's going to be new normal where we -- our assets are extremely important in that delivery to all our customer groups. So you need to work on all 3 of them, and we are working all 3 of them to come even stronger out on this crisis.

因此，我嘗試確保這三個面向同時發揮作用，以便我們能夠更強大地擺脫這場危機，管理好今天的情況，不錯過我們設定的目標，同時管理好危機。所以我只能確認，我和你有同樣的感受。我們將會看到更多的數位化訂購方式。但我們也會看到一些我們從未想過可能會發生的事情。我的意思是遠距醫療將會隨著時間的推移而增加。現在人們仍然不需要去醫院。我們將看到教育——遠距教育的成長，因為人們看到它確實有效。這一切都將成為新常態，我們的資產對於向所有客戶群交付產品極為重要。所以你需要在這三個方面努力，我們也正在努力在這三個方面努力，以便在這場危機中變得更強大。

The next question comes from Craig Moffett of Moffett Nathanson.

下一個問題來自 Moffett Nathanson 的 Craig Moffett。

I wonder if I could just ask a slightly longer-term question in the context of the COVID crisis. Your investments in wireless, which have largely been -- in 5G, I mean, which have largely been on the back of millimeter wave spectrum, have almost necessarily been in dense, urban gathering places, like stadiums and arenas and airports and what have you, which is obviously where people aren't today. Do you stop and say there may be a real change in social patterns that suggest a different set of investment priorities that are more along the lines of coverage and less around dense urban usage? Or is that likely to be sort of a short-term blip just given how long the planning windows are for network densification? I ask this in the context of a spectrum strategy where it could well be that mid-band spectrum becomes even more important now, given a potential pivot away from those very dense, urban gathering places.

我想知道我是否可以在 COVID 危機的背景下問一個稍微長期的問題。你們在無線領域的投資，主要是在 5G 領域，主要是在毫米波頻譜的基礎上，幾乎必然是在人口密集的城市聚集場所，例如體育場、競技場和機場等等，而這些顯然不是今天人們所關注的地方。您是否會停下來並說，社會模式可能會發生真正的變化，這表明投資重點將更多地關注覆蓋範圍而不是密集的城市使用？或者，考慮到網路密集化的規劃窗口期有多長，這是否可能只是短期現象？我是在頻譜策略的背景下提出這個問題的，考慮到潛在的從那些非常密集的城市聚集地轉移的趨勢，中頻頻譜現在可能變得更加重要。

Thank you, Craig. It's still to be seen, first of all, of what will be the social patterns for the time. I feel pretty confident that dense, urban areas will continue to be dense, urban areas. And to be honest, we still see a lot of usage in dense, urban areas. It's just that we see less movement of people because they are staying home. So people live where they live today. So we are not changing the strategy, how we execute, both on the broader nationwide as well on our city deployment. And ultimately, we see that as being a very compelling offering going in the future.

謝謝你，克雷格。首先，當時的社會模式將會是什麼樣的還有待觀察。我非常有信心，人口密集的城市地區將繼續是人口密集的城市地區。說實話，我們仍然看到它在人口密集的城市地區被大量使用。只是我們看到人們的活動減少了，因為他們都待在家裡。因此人們就生活在他們今天所居住的地方。因此，我們不會改變策略和執行方式，無論是在全國範圍內還是在城市部署上。最終，我們認為這將是未來非常引人注目的產品。

On the mid-band, as I said before, especially on the C-band, we think that is an attractive spectrum because, first of all, as you said, it is a good coverage. But also, it's a global roaming standard for 5G. And of course, we want to be part of that. And we are encouraged by FCC's plan to conduct a C-band auction in December. And we will always do our normal return on investment between the different densifications, buying spectrum, putting more software and keeping in mind that we want to continue to have the same headrooms in the network as we always have in order to have the best network.

正如我之前所說，在中波段，特別是在 C 波段，我們認為這是一個有吸引力的頻譜，因為首先，正如你所說，它具有良好的覆蓋範圍。但它也是 5G 的全球漫遊標準。當然，我們希望成為其中的一部分。我們對美國聯邦通訊委員會 (FCC) 計劃於 12 月進行 C 波段拍賣感到鼓舞。我們將始終在不同的密度之間進行正常的投資回報，購買頻譜，安裝更多的軟體，並牢記我們希望繼續在網路中擁有與以往相同的餘量，以擁有最好的網路。

So yes, it plays in. It's a little bit too early to say that we're going to have a changed total social pattern in the United States. Initially, I don't think so. People live where they live, and that's going to continue to be the same.

是的，它確實發揮作用了。現在說美國社會格局將徹底改變還為時過早。起初，我並不這麼認為。人們生活在他們所居住的地方，並且這種情況將繼續保持不變。

And can you comment specifically about the L-band uplink concept and the availability now of Ligado spectrum?

您能否具體評論一下 L 波段上行鏈路概念以及 Ligado 頻譜目前的可用性？

Yes, I can, or at least having some views on it. We, of course, are following what FCC has come out with. We still feel that are several challenges with L-band. As -- first of all, it's not used. That frequency is not used anywhere in the world. That means that there are no equipment, no handsets and things like that, which you need an ecosystem. That's so important. But as with all frequencies and all the spectrum we're, of course, looking into it, and we have done it for several years. This is nothing new. I think that Ligado has been around for about 10 years. So it's nothing new.

是的，我可以，或者至少對此有一些看法。當然，我們正在關注 FCC 的發佈內容。我們仍然認為 L 波段還面臨一些挑戰。因為——首先，它沒有被使用。世界上任何地方都沒有使用該頻率。這意味著沒有設備，沒有手機之類的東西，你需要一個生態系統。這非常重要。但就像所有頻率和所有頻譜一樣，我們當然正在研究它，而且我們已經研究了好幾年。這並不是什麼新鮮事。我認為 Ligado 已經存在大約 10 年了。所以這並不是什麼新鮮事。

So we are continuing -- our engineers are always looking into new development if something can happen. But so far, we have seen a little bit more headwind than anything else on that band.

因此我們會繼續下去——如果有什麼事情發生，我們的工程師總是在尋找新的發展。但到目前為止，我們看到的阻力比樂團遇到的其他任何事情都要大一些。

The next question comes from Colby Synesael of Cowen.

下一個問題來自 Cowen 的 Colby Synesael。

Great. Two, if I may. First off, I was wondering if can you give us the number of customers that have stopped paying their bills, I guess, specifically their wireless bills as a result of COVID-19? And I assume that, that number was included in your disconnect. You'd mentioned, I think, 800,000 in response to Simon's question. Just trying to understand where that number comes into play.

偉大的。如果可以的話，我說兩個。首先，我想知道您是否可以告訴我們由於 COVID-19 疫情而停止支付帳單（特別是無線帳單）的客戶數量？我認為，這個數字包含在您的斷開連接中。我認為，在回答西蒙的問題時，您提到了 800,000。只是想了解這個數字是如何運作的。

And then secondly, as it relates to free cash flow and the dividend. I was wondering if you can just give us some framework in terms of how to think about the potential dividend payout expected in 2020?

其次，它與自由現金流和股利有關。我想知道您是否可以為我們提供一些框架，說明如何考慮 2020 年預期的潛在股息支付？

You can start if you unmute.

取消靜音即可開始。

Sorry about that. Thanks, Colby. So the number of customers who are referred to in the prior question was the number of customers who have told us their ability to pay their bills has been impacted by COVID. That's not to say they've been disconnected. They haven't been disconnected. Just like every other customer that doesn't pay completely on time that we work with them. And the vast majority of those, we end up getting them back on a payment schedule, and they continue their relationship with us. So we haven't -- and even those who have -- prevailed themselves of that doesn't necessarily mean that they have completely stopped paying. They are just indicating to us that they've seen an impact.

很抱歉。謝謝，科爾比。因此，上一個問題中提到的客戶數量是告訴我們他們的支付帳單的能力受到 COVID 影響的客戶數量。這並不是說他們已經斷絕關係。他們還沒有斷線。就像我們合作的其他所有未按時全額付款的客戶一樣。其中絕大多數最終都會按照付款計劃重新獲得他們的支持，並且他們將繼續與我們保持合作關係。因此，我們還沒有——即使那些已經克服了這一點的人——也不一定意味著他們已經完全停止付款。他們只是向我們表明他們已經看到了影響。

But when you look at the total impact we've seen, when I compare it to some of the numbers reported by -- whether it be on the mortgage side or the auto loan side, we're seeing a better overall performance in terms of the customer payment profile than what we've seen. And that's consistent with what we saw in the financial crisis in 2008 as well. I mean we have a very important product for our customers, and they value it. They value the connection they get from the best network, and we see those show up in the payment.

但是，當你看到我們所看到的整體影響時，當我將其與報告的一些數字進行比較時 - 無論是在抵押貸款方面還是汽車貸款方面，我們都會看到客戶支付狀況的整體表現比我們所看到的要好。這與我們在 2008 年金融危機中看到的情況一致。我的意思是，我們為客戶提供了非常重要的產品，他們非常重視它。他們重視從最佳網路獲得的連接，我們看到這些在付款中得到體現。

So Hans, I think you wanted to make some comments around the second question on free cash flow?

那麼漢斯，我想你想就自由現金流的第二個問題發表一些評論？

Yes. First of all, I think we talked about where we stand on the balance sheet and the great work the team has done with the balance sheet, not only the last couple of years, but also in the first quarter. And we feel that we're in a very good position with our balance sheet, and that can be seen, that we both increased our CapEx this quarter as well as made the acquisition of BlueJeans. We have our capital allocation priorities, very clear for us: Number one is the business. Number two is the shareholders. Three is the debt reduction and number four is the buyback. And we feel that we're in a really good situation to continue to put our Board in the right position to serve our shareholders with dividend. But as we said on the Investor Day, when it comes to buybacks, that's probably unlikely happening this year given the situation. But all other priorities, we are definitely in a very good position to serve at this moment.

是的。首先，我想我們談論了我們在資產負債表上的立場以及團隊在資產負債表方面所做的出色工作，不僅是過去幾年，而且在第一季。我們認為我們的資產負債表狀況非常好，這一點可以看出，我們本季既增加了資本支出，又收購了 BlueJeans。我們有自己的資本配置優先事項，這些優先事項對我們來說非常明確：第一是業務。第二是股東。三是減債，四是回購。我們認為，我們目前的情況非常好，可以繼續讓董事會發揮應有的作用，為股東提供股利服務。但正如我們在投資者日所說的那樣，就回購而言，考慮到目前的情況，今年可能不太可能發生這種情況。但對於所有其他優先事項，我們目前絕對處於非常有利的地位。

The next question comes from Michael Rollins of Citigroup.

下一個問題來自花旗集團的麥可‧羅林斯。

Just a couple of follow-ups. First, you gave a lot of detail on the potential impacts on revenue. I was curious if you could provide some additional details to quantify or help to approximate the variability of wireless expenses to the variability of gross adds or overall device sales?

僅需幾個後續行動。首先，您詳細說明了對收入的潛在影響。我很好奇您是否可以提供一些額外的細節來量化或幫助近似無線費用的變化與總增加價值或整體設備銷售的變化？

And then secondly, does the temporary use of other license holder's spectrum increase Verizon's interest to rent or lease spectrum on a commercial basis in the future?

其次，臨時使用其他許可證持有者的頻譜是否會增加 Verizon 未來在商業基礎上租用或租賃頻譜的興趣？

Thanks, Mike. So I'll answer the first question on the variability of expenses. So obviously, as we have lower volumes, you see lower handset costs and that obviously flows through immediately. But a lot of the other expenses, as you think about it in the immediate term, don't necessarily move. Even promo costs, for example, as we've talked about before, we now, under 606, amortize a lot of the promo expense over the expected life. So you see that come across over 2.5 years typically versus an immediate cost. So if we get a reduction, that benefit of lower promo expenses also gets amortized over that time period in the income statement. So you're going to see that flow through there.

謝謝，麥克。因此，我將回答有關費用變化的第一個問題。因此，顯然，由於我們的銷量較低，您會看到手機成本較低，而且這顯然會立即產生影響。但從短期來看，許多其他開支不一定會改變。例如，即使是促銷成本，正如我們之前討論過的，現在，根據 606，我們在預期壽命內攤銷了大量促銷費用。因此，您會看到，這通常會在 2.5 年內發生，而不是立即發生。因此，如果我們獲得減少，那麼較低促銷費用的好處也會在損益表中的該時間內攤提。所以你會看到它流經那裡。

Other areas where you see an impact from volumes, where we have lower volumes, especially in store, we see lower accessory sales, and those typically have a good margin on. We -- and so there are impacts there as well from seeing lower sales, not just in terms of lower expenses, but there is an impact on the revenue line that can come with that.

在其他領域，銷售量受到影響，銷售量較低，尤其是在商店，配件銷售量較低，而這些通常具有良好的利潤率。我們－因此銷售額下降也會造成影響，不僅是費用降低，還會對收入產生影響。

So net-net, you do see a reduction in cost with lower volumes, but there's some other things that go in the other direction and some of the benefits in expense are going to get realized over time rather than immediately in there. So hopefully, that helps you think around how that shows up in the income statement.

因此，從淨值來看，你確實看到成本隨著產量的降低而降低，但還有一些其他因素朝著相反的方向發展，並且一些費用方面的好處將隨著時間的推移而實現，而不是立即實現。所以希望這能幫助您思考它在損益表中是如何體現的。

Hans, I'll let you add -- follow up on the question on the spectrum that we took advantage of.

漢斯，我讓你補充一下——關於我們利用的光譜的問題。

Yes. First of all, we want to thank the FCC for so rapidly come out and lending out spectrum to all the players in the market because nobody knew how the usage will be on the network. As you can see, when we exclude the temporary spectrum that we lent from FCC, we have the same headroom, and the network has performed very well. On top of that, we are, of course, adding capacity right now and also put in the DSS, the dynamic spectrum sharing, which I can report that the tests are going very well. We're on plan for putting that opportunity in the hands of Tami and Ronan to decide when they want to turn on nationwide. So I think we have a very good spectrum strategy and with the spectrum we have, and we're very happy with it, and we're going to continue with that. So I think that's where we are right now.

是的。首先，我們要感謝美國聯邦通訊委員會 (FCC) 如此迅速地將頻譜借給市場上的所有參與者，因為沒有人知道網路上的使用情況。正如您所看到的，當我們排除從 FCC 借出的臨時頻譜時，我們擁有相同的餘量，並且網路表現非常好。除此之外，我們現在當然正在增加容量，並引入了 DSS，即動態頻譜共享，我可以報告說測試進展非常順利。我們計劃將這個機會交到塔米和羅南手中，讓他們決定何時在全國播出。所以我認為我們有一個非常好的頻譜策略，我們對於我們擁有的頻譜非常滿意，我們將繼續這樣做。所以我認為這就是我們現在的狀況。

Your last question comes from Jennifer Fritzsche of Wells Fargo.

您的最後一個問題來自富國銀行的 Jennifer Fritzsche。

Hans, I just wanted to follow-up on your DSS comments. So if I go back to my notes from mid-February following the Analyst Day, it seemed like you were very firm in saying DSS by year-end -- 5G by year-end with DSS. Is there any change to that?

漢斯，我只是想跟進一下你對 DSS 的評論。因此，如果我回顧分析師日之後 2 月中旬的筆記，似乎您非常堅定地說到年底將實現 DSS——到年底將實現 5G 並採用 DSS。有沒有什麼變化？

And then just on the infrastructure behind it, you also talked about -- or Kyle talked about 5x the amount of small cells for 5G this year. Has any of the shifts, given the changes in social patterns, shifted back the macro there?

然後就背後的基礎設施而言，您也談到了——或者 Kyle 談到了今年 5G 小型基地台的數量將增加 5 倍。考慮到社會模式的變化，這些轉變是否已經使宏觀經濟回落？

Thank you, Jennifer. First of all, we feel good about the dynamic spectrum sharing. It's -- we are continue to do the test and deploying equipment and the hardware in the field that is needed for doing that. I'm certain that Kyle and his team will put it in the hands of Ronan and Tami and decide when they turn it on in the second half. That's where we are today. So we're not have any supply issues to doing that or supply chain issues.

謝謝你，詹妮弗。首先，我們對動態頻譜共享感到滿意。我們將繼續進行測試，並在現場部署所需的設備和硬體。我確信凱爾和他的團隊會把它交給羅南和塔米，並決定他們在下半場何時開始。這就是我們今天的處境。因此，我們這樣做不會遇到任何供應問題或供應鏈問題。

The same go for the 5x more -- 5G ready base station this year. We continue to just accelerate. And Kyle actually said publicly that we were ahead of the plan when we ended March. I can say today, we're still on plan on that 5x. We have no supply chain issues. We have, of course, complications with some municipalities, but our team is all around that and working with municipalities, finding new way, digital approval, things that we never thought were -- digital permitting processes, et cetera, which we never thought were possible.

今年 5x more——5G 就緒基地台也將如此。我們繼續加速。事實上，凱爾在三月底就公開表示，我們已經提前完成了計畫。我今天可以說，我們仍然按照 5x 計劃進行。我們沒有供應鏈問題。當然，我們與一些市政當局之間存在一些複雜情況，但我們的團隊正全力以赴與市政當局合作，尋找新的方式、數位審批，以及我們從未想過的事情——數位化許可流程等等，我們從未想過這些是可能的。

So all in all, we are not giving up on those targets. And so far, it looks really good. And that's how a company should execute in times like this, managing the crisis, seeing that it will be a new -- and rethink how the new normal will look like. And that's what my team is doing every day right now, and we are very focused on doing that. And the good thing is that we feel good about our strategy where it stands.

總而言之，我們不會放棄這些目標。到目前為止，它看起來確實很好。這就是公司在這種時候應該採取的行動，管理危機，看到這將是一個新的——並重新思考新常態將會是什麼樣子。這就是我的團隊現在每天都在做的事情，我們非常專注於此。好消息是，我們對目前的策略感到滿意。

And thanks, Hans and team. And everybody, make sure you stay safe and be well. And with that, we'll conclude the call.

謝謝漢斯和他的團隊。各位，一定要平安健康。至此，我們的通話就結束了。

Ladies and gentlemen, this does conclude the conference call for today. Thank you for your participation and for using Verizon Conference Services. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與和使用 Verizon 會議服務。您現在可以斷開連線。