Monday, March 12, 2007

AT&T to Invest $750 Million in Global Network in 2007

AT&T will invest more than $750 million in 2007 to accelerate the delivery of global IP services and solutions to businesses and multinational companies in key markets worldwide. The spending, which is part of AT&T previously issued CAPEX guidance, will be targeted at more than 200 initiatives whose goal is to (1) enhance and expand AT&T's portfolio of retail and wholesale services and solutions and (2) extend the global network infrastructure and capabilities needed to deliver services and solutions to businesses and multinational companies in both emerging and developed markets worldwide.

With this investment AT&T will:

  • Enhance its Virtual Private Network (VPN) services portfolio and its business VoIP services portfolio, voice, security services and electronic customer service capabilities. Examples include global applications management capabilities on VPNs, global enhanced remote monitoring and management capabilities for hosting customers, global expansion of network-based firewalls, deployment of in-country IP services, enhancements to global IP conferencing and contact centers, and global e-ordering, maintenance and network reporting capabilities.

  • Increase Internet Data Center (IDC) capacity by expanding several existing sites (California, Virginia, Arizona and the U.K.), opening new data centers in the New Jersey/New York market in the U.S. and in Canada, and delivering new managed services within the hosting portfolio, incorporating the application software management expertise of recently acquired USinternetworking (USi). By the end of 2007 AT&T will have 38 IDCs deployed around the world, which would include the four centers from USi and BellSouth.

  • Extend the deployment of key access technologies, such as Wi-Fi, DSL, Ethernet and satellite to help companies connect to AT&T's global IP network.

  • Significantly extending its global IP network and capabilities to deliver more services to business customers in the United States and around the world. Focus markets in 2007 include the high growth economies of Asia Pacific (including China and India), the Middle East and Latin America; and the larger, more developed markets in Europe (France, Germany and the U.K.) and Canada. Last year, AT&T announced the formation of a joint venture in India, opened new offices in the Middle East (Dubai) and extended its network presence in Vietnam.

By year-end 2007, the AT&T global network will provide multi-national
companies with:

  • MPLS-based access from 155 countries via more than 2,000 service nodes -- this will include the addition of new network nodes in Vietnam, Pakistan, Saudi Arabia, Malaysia, Morocco, and the addition of 3 new nodes in India.

  • Satellite and long line extension access from 51 countries.

  • 13 network interconnects in 22 key regions/countries

  • DSL network access in 34 countries.

  • Ethernet network access in 31 countries.

  • Remote access will be available via cellular data access in 11 countries; Wired Ethernet access from more than 1,600 locations in 17 countries; WiFi access from more than 55,000 hotspots over 80 countries.